In pursuance of Sub-scciion 5 of Section 18 of the Cost and Works Accountants Act. 1959 the Annual Report of the Council of the Institute of Cost and Works Accountants of India and the Audited Accounts of the said Institute for the year ended 31st March. 2002 arc herein published for general information.

REGD. NO. D L.-33004/99 The Gazette of India

EXTRAORDINARY

PARTIII~Section4

PUBLISHED BY AUTHORITY

No. 188 ] NEW DELHI, TUESDAY, SEPTEMBER 17, 2002/BHADRA 26, 1924

2908 GI/2002

(1)2 THE GAZETTE OF INDIA: EXTRAORDINARY [PART III—SEC. 41 3 4 THE GAZETTE OF JNDI A. EXTRAORDINARY |PARI III - S E C, 4| 5 0 THE GAZETTE OF INDIA: EXTRAORDINARY PART ITI—SEC. 4] 7 8 THE GAZETTE OF INDIA: EXTRAORDINARY IPART III—SEC. 4] *J 2908 GI/2002 - 210 THE GAZETTE OF INDIA: EXTRAORDINARY | PART III—SEC. 4] 11 12 THE GAZETTE OF INDIA EXTRAORDINARY |PAKI III—Sur 4| 13 14 THE GAZETTE OF INDIA. EXTRAORDINARY [PART III— SEC. 4] 15 16 THE GAZETTE OF INDIA: EXTRAORDINARY [PART III—SF^. 4] 17 limit the ship-breaking charges to Rs.250 per LOT and also the license fee to Rs.10 per square meter per month cannot be acceded to.

(iii). The Ministry of Shipping (MOS) has directed that the proposal for allotment of plots should not be limited to regular ship-breakers operating at Mumbai; but, it should be an open offer to all without any pre-qualification conditions like experience in the ship- breaking activity. Thus, the suggestion of ISSAI cannot be considered. The MOS has, however, been requested to reconsider its proposal regarding reservation of plots to the existing ship breakers.

(iv). The ship-breaking charges on common user basis have been converted from GRT to LDT basis in light of the representation received from the various ship breakers. It has reiterated the other points given in the proposal.

(v). The minimum committed throughput of 10,000 LDT has been prescribed considering the fact that many ship-breakers have achieved this target during last few years. The MOS has also directed to incorporate an automatic termination clause if the minimum throughput of 10,000 LDT per year is not achieved.

(vi). It has no comments to offer on the Associations' submission that the duty advantage enjoyed by Mumbai ship-breakers has disappeared following the Budget 2002. Further, the Port has no control over the Octroi duty levied by the Municipal Authorities.

(vii). It has followed the direction given by the MOS as regards reservation plots. The MOS has further directed that the allotment of plots at Lakri Bunder should not be limited to twenty one regular ship-breaker operator at Mumbai; but, should be offered to all without prescribing any pre-qualification.

5, , Based on a preliminary scrutiny of the proposal the MBPT was requested to furnish additional information / clarification on various points. Some of the main points are summarised as follows:

(i). The cost statements to be updated.with reference to revised estimates for the year 2001 -02 and projections for the year 2002-03 and 2003-04.

(ii). The discrepancy observed in computation of the Return on Capital Employed (ROCE) and the Capital Employed figures is to be corrected.

(iii). In the light of the surplus financial position reflected in this activity, the basis of proposing the ship-breaking charges on the plots proposed to be leased out may be justified taking into consideration the tariff applicable as per the existing Scale of Rates.

(iv). The basis of proposing an upfront fee of Rs. 50 lakhs per plot.

(v). Confirmation whether the scheme for licensing of plots have been approved by the Government.

(vi). The detailed conditionalties governing the Licenses need to be incorporated in the Scale of Rates.

6.1. A joint hearing in this case was held on 15 May 2002 at the MBPT. At the joint hearing, the following submissions were made:

Mumbai Port Trust (MBPT)

(i). This proposal has been mooted by the ship-breakers themselves.

(ii). Frequent shifting from plot to plot leads to operational hassles and has implications on the environment ;and, hence, the new approach is proposedIN THF GAZETTE OF INDIA EXTRAORDINARY IPARI 1JI—Sn\ 41 19 21) TI1EGAZETTEOFINDIA;GXTRAORDINARY IPARI III—Su\ 41 21 22 THE GAZETTE OF INDIA: EXTRAORDINARY IPARI III—SFC. 41 23 24 THE GAZETTE OF INDIA: EXTRAORDINARY [PAR I III—She. 41 25 2908 GI/2002 - 42(> THE GAZETTE OF INDIA: EXTRAORDINARY [PARI ITI—SEC. 4] 27 2X TIIE G A Z C ' I T E OF INDIA: E X T R A O R D I N A RY |P A Ri 111—See. 4] 29 The Council met 6 times during the year 2001-2002.

Committees of the Council

THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA NOTIFICATION Kolk;il;i. Ilic I2lli September, 2002

The details of various Committees constituted by the Council on 22nd July 2001 are givan in the Armexure.

DIRECTORATE OF STUDIES

Ri'U- No. C/l8-CWA/y/2OO2.—In pursuance of Sub-scciion ? of Scciion 18 of the Cosl and Works Accountants Acl. I¹J5'). the Annual Report of the Council ol llie Institute of Cost ;md Works Accountants of India and the Audited Accounts of ttic said Institute for the year ended 31 si March. 2002 arc herein published for general information.

R N. PAL. Dircc(or(A&F)

| No AD\T/III/IV/71/O2-E.\ly.|

Registered Students During the current ytar, i5, uo iiuuwuls registered themselves ,,ith ihs Institute. In the previous year the number was 15,995. The number of registered students at the end of the year stood at 1,50,040. The Regionwise break-up of the students registered during the years 2000-2001 and 2001-2002 is produced below:

43RD ANNUAL REPORT, 2001-2002 Issued under Section 18(5) of the Cost and Works Accountants Act, 1959.

The Council of the Institute of Cost and Works Accountants of India takes pleasure in presenting the Annual Report and Audited Accounts of the ICWAI for the year ended 3 1" March, 2002.

The Council at its meeting held on 22nd July 2001 elected Shri V.V.Deodhar, BA(H), B Com.(H),FCS, FICWA, as President and Shri Kunal Banerjee, BA(H), FCA, FICWA, as VIce-President of the Institute for the year 2001-2002

Practical Training Scheme

t-aclhty for Postal Coaching in the form of supply of study notes, test papers and suggested answers through Regional Councils continues to be provided to the students during the year. Publication of suggested answers to the questions set at the Institute's examinations (Foundation. Inter and Final) and scanner is continuously meeting the demands of students undergoing Postal and Oral Coaching.

Besides Postal Coaching, the Institute is providing Oral Coaching to the students through 105 centres spread all over the country and 1 Overseas Coaching Centre at Dubai.

The Institute is having a Practical Training Scheme to help the students acquire experience in Industry, service and other sectors of the economy. Keeping in view of the changing need of the economy in a new environment, the Training Scheme has been revised in consultation with user industry, service and other sectors. Reputed organisations like Indian O'\\ Corporation, Food Corporation of India, ITC, NALCO, INDORAMA, Hindustan Lever, Foreign Banks, etc., are engaging Cost Trainees In their organisations. During the year, many organisations like Oil and Natural Gas Commission.

30 THE GAZETTE OF INDIA EXTRAORDINARY I PART III—SEC. 41 Larsen & Toubro Ltd., IN DO RAMA, IDBI, IDBI Bank, TVS Suzuki, ICICI, otc. recruited tho qualified candidates of ICWAI examinations In June and December 2001 term In their organisations through Campus Interviewa/Walk-in- Interviews.

Revision/Updating of Study Notes and Publication of Supplements The Institute has updated and improved the Study Notes to incorporate latest developments In various fields. During the year, Tax Updates for Direct Taxation and Indirect Taxation, based on the Finance Act 2001, have been published in the Institute's journal, The Management Accountant, and distributed to the students free of cost These supplements have been hosted in the Institute's website.

Career Counselling Initiatives Special initiatives for disseminating the scope of the course among the student community were taken during the year. Chapters of the Institute were asked to coordinate with the local educational institutions or organise meetings of the senior students In which representatives of the Institute attended the same and highlighted the scope of Cost and Management Accountancy Profession In the emerging economic scenario. The Initiatives taken by the Council In this direction have effectively been responded and series of Career Counselling Programmes have been proposed during the next financial year. In addition, during the period, many well circulated newspapers and periodicals published details regarding ICWAI course as career guide to its readers. Apart from regional newspapers, mention may be made of the articles published in The Times of India, Hindustan Times, The Telegraph and Ananda Bazar Patrika. Two advertisements regarding admission in ICWAI course In the Employment News were published.

Revision of Syllabus Introduction of coaching in Foundation Course of the Institute and also the revision or the syllabus of the Intermediate and Final course of the Institute, as passed by the Council, has been approved by the Government of India for publication in the Official Gazette vide their letter No. 2/1/2001-IGC dated February 5, 2002. Thereafter, a Gazette Notification has been published in Part III, Section 4 of the Gazette of India on February 7, 2002 and made available to public on February 11, 2002 for further necessary action. As required, the proposed revised syllabus after vetting by the Council was forwarded to the Government on 18.4.2002 for final notification in the Gazette and Implementation with effect from 1.7.2002.The Central Government approved the revised syllabus on 25.6.2002 and the same was published in the Gazette on 26.6.2002. It has been possible to immediately publish two Study Notes - one for the intermediate Course and one for Final Course under revised syllabus

Compulsory Training The training scheme as finalised by the Training and Educational Facilities Committee and the Council involving compulsory Group Discussion, Business Communication Seminars, Dissertations, Modular Training, Industrial Training except Computer Hands On required to be undertaken has already been implemented with effect from 1.1.2001.

Computer Training As earlier decided, completion of computer training was made a prerequisite for issuance of coaching completion certificates for the studentB desirous of appearing in the June 2002 term of examination. The training is being conducted through NUT. In accordance with the decision of the Training and Educational Facilities Committee, some 23 Regional Councils and Chapters having required

infrastructural facilities, as mentioned in our circular dated 1011.2001, have also been recognised as authorised training centres for conducting computer training. The names of the Regional Councils and Chapters are given below:

EIRC, SIRC, NIRC, WIRC, Pune, Nagpur, Bhopal, Surat, Thrissur, Cochin, Nasik, Baroda, Bangalore, Kalyan- Ambemath, Ahmedabad, Visakhapatnam, Jaipur, Trivandrum, Hyderabad, Durgapur, Tiruchirapally, Vijaywada and Coimbatore.

Recognition by Foreign Institutes and Business Schools and Reciprocal arrangement of Exemption With concerted efforts we were able to persuade Wharton School, Kelley School of Business, Stuart Graduate School of Business of USA to allow our members to take admission in their respective MBA programmes of the respective Institutes subject to fulfillment of required conditions. The Institute of Certified General Accountants Ontario, Canada (CGA .Ontario) awarded exemption to ICWAI qualified candidates in 13 papers and offered the challenge examination privilege in one paper out of 22 papers of its curriculum. The Institute of Certified Management Accountants ,USA (CMA.USA) awarded exemption to ICWAI candidates in Part 3 and 4 of Its curriculum and it has been possible to enter into a reciprocal arrangement for awarding exemption to CMA qualified candidates in ICWAI curriculum.

European Institute of Advanced Studies in Management (EIASM) collected data from different professional institutions all over the world for comparative research It Is understood that the result of the said research will be presented in the Hong Kong Conference of the International Association for Accounting Education and Research, which will take place In conjunction with the IFAC World Congress of Accountants to be held in November 2002, Research activity report regarding Impact of Globalisation in Accounting Education has been published in December 2001. In the said report, there is Overview of ICWAI along with other international bodies.

Consequent upon revision of syllabi of ICSI and ICWAI, it has been found necessary to enter into a reciprocal arrangement of awarding exemption with ICSI. Director of Studies ICWAI has since taken up the matter with ICSI. It31

is expected that such reciprocal arrangement with ICSI will be arrived at shortly. EXAMINATIONS June 2001 and December 2001 examinations were held at 78 Inland end 3 overseas centers. There were about 29,123 and 28,982 examinees enrolled for these two terms respectively. The detailed list of the places having examination centers, both Inland and overseas, are given below.

Overseas:

Our Institute website < www.lcwal.org > were further improved and while for June 2001 term only the result was put up in the website, but for the December 2001 term, the admit card as well as the. result with detailed mark sheet was displayed which was well appreciated by the student community. Constant efforts are on to further improve the services to the examinees and for smooth and efficient conduct of examinations.

Botswana Dubai Muscat

MEMBERSHIP

However, as envisaged earlier, the examination process could not be held under the New Computer System (ORACLE) as the package developed by M/s Ontrack Systems Ltd. was not found foolproof and the project was ultimately not taken off. However, In spite of severe hardware constraints the situation could be tackled successfully with the existing COBOL system. It is hoped that very soon the examination system will be converted in the state of the art platform and student would be provided with much better and faster service.

The annual prize distribution ceremony was held during the National Cost Conference held at Kolkata and the successful recipients of the prizes turned out In great numbers to make the ceremony a grand success where eminent dignitaries were present.

During the year, the members of the Examination Committee had five_ meetings to discharge various examination-related duties.

Examination Centres - June 2001 & December 2001 Inland :

During the year, 801 candidates were admitted as Associate members and 138 Associate Members were elevated as Fellow Members. As on 3 1" March, 2002, the total number of members stood at 21450. The number of Members in Practice was 1895 as against 1744 in the previous year. The number of Graduate Members enrolled during the year was 364 as against 431 in the previous year.

MEMBERS' SERVICES & MEMBERS' FACILITIES COMMITTEE During the year, Members' Services and Members' Facilities Committee met only once and the following targets were fixed in the meeting:

1: Publication of "Membership Guidelines" in "The Management Accountant" either in instalments or at one go.

2: Guidelines to be followed for grant of Fellowship to members of our Institute.

3: Guidelines to be followed for making Associate members of the Institute.

4: Preparation of list of Grad. Members who have not yet become Associate Members.

5: Preparation of list of Students who have passed the Final Examination but have not become Grad. CWAs or Members.

6: Introduction of the system of Business Reply Envelopes.

Reforms during the current y"ar:

7. Defaulting members to be brought into the fold by vigorous follow up.

8. Strengthening the Membership Department and placing the entire Membership Department in one location/floor of the Institute.

9. To Inform the members, on regular basis, about their outstanding dues.

10. To devise a system so that all the users use addresses of members from a common source, 11. CD/floppy indicating members both (residence and officel addresses, telephone numbers and e-mail address, he m?de available to the members as priced publication.

12. Expected time taken by the Institute in providing each type of service in tabulated form to be published in "The Management Accountant".

13. Suggestions from Regional Councils and Chapters In bringing out reforms and innovative working in the services to members.

14. To reduce the paper work to minimum possible, encourage members to use more and more e- mail address of the institute.

15. Insertion In "The Management Accountant" intimating all members to furnish their e-mail addresses and fax nos. along with telephone nos.

The efforts are on to complete all targets listed above. The followings steps during the year 2001-2002 have been successfully taken for providing proper services and facilities to the members:

1. Steps towards completion of computerisation work of the Membership records in, a big way were undertaken. Facilities have also been provided for network connection of the computerised records with other related Departments. Further system development activities in this regard are in progress.

2. As a drive to increase the number of membership and realising the arrear dues, letters were issued requesting the Grad. CWAs to get themselves admitted as Associate Member and also to clear their dues. Good response was received in reply to these letters and a number of them applied for Associate Membership and cleared their dues.

3. Insertions were also made in the monthly journal "The Management Accountant" intimating the Members to clear their arrear dues.

4 To enable the members have a quick information about their dues and enable updation of their profile, requisite facilities have been provided in the website of the Institute www.lcwal.org. Facilities already provided to download various forms and Membership Guidelines continue to exist.

5 Steps have been taken to update the particulars of members on the basis of information received from them and display the same in the website of the Institute.

6. In order to reduce the paper work to minimum possible and encourage members to make more use of e-mail, steps were taken to record their e-mail addresses as intimated by them and provide prompt reply to their queries through e-mail.

7. Steps have been taken to publish all Government Notifications and Cost Audit Orders in the website for the benefit of members as also those in practice.

8. Suggestions were invited from Regional Councils and Chapters in bringing out reforms and innovative working in the services to members.

9. Steps were taken to publish expected time taken by the Institute in providing each type of service to the members in "The Management Accountant".

The Committee hopes that the steps taken would definitely give better service to the members and look forward to the suggestions for further improvement from the membership fraternity.

RESEARCH & JOURNAL COMMITTEE This year, Institute's journal, The Management Accountant, refocused on the new role of Cost and Management Accountants in the new era that transcends conventional areas of operation The cover features of the journal reflected the new concern of Cost Accountants in a changing scenario. The journal's practical utility In the hands of professionals was greatly improved and even members of other professions used it as a source book.

With the profession of Cost and Management Accountants achieving more recognition from the government and society, several radical changes were brought in most of the Cost Accounting Records Rules along with a total overhaul of Cost Audit Report Rules while new Industries like steel, electricity, electronics etc., were covered under statutory cost accounting and cost audit. The impact and relevance of these changes in the practical field were aptly brought out in the journal with the participation of more and more Cost Accountants - both in practice and service - contributing their mite in enriching our understanding of the changing scenario. The emphasis was on identification of real life problems and their solutions or search for solutions in continuous pursuit of excellence.

This year there was a marked improvement in the timely . publication and circulation of journal. The new phase of the Student Edition commenced circulation among students and subscribers.

Regarding research activities new intellectual inputs were disseminated through the Research Bulletin. The Research Bulletin particularly highlighted our new role as specialists in 'measurement' and as strategic thinkers. Particular focus was laid on 'measurement' - performance measurement, risk measurement and analysis of industries, evaluation of measurement tool like EVA and assessment of agricultural cost-profit scenario31 that has assumed great importance in the WTO regime. However, due to financial stringency, undertaking new research projects was somewhat deferred. On the other hand, queries have been received from prospective research projects having practical utility to the economic world. One such project on pricing formula is under negotiation.

committee effectively liaised with the concerned Departments of Government of India to widen and strengthen the scope of professional development and extended role of Cost Accountants In the development of economy of the country through effective cost contro' and cost reduction. The under noted developments took place aunng the year under reference in tfiis regard ; 1. Amendment in existing Cost Accounting Record Rules

INTERNATIONAL AFFAIRS During the period the Institute represented India on all the international accounting bodies like irAC (International Federation of Accountants), CAPA (Confederation of Asian and Pacific Accountants) and SAFA (South Asian Federation of Accountants). Incidentally, the Institute happens to be the founder member of ail these three international accounting bodies.

Shri S. Ramanathan, Past President and present Council Member, was appointed Member of the prestigious FMAC of IFAC (Financial and Management Accounting Committee of International Federation of Accountants) while Shri V. V. Deodhar, President, was the Technical Adviser on the same Committee.

The Institute participated in various meetings of the international accounting bodies and in the international events associated therewith. A chronicle:

CAPA In May 2001 at Kualalumpur CAPA Excorn was held where Shri D. C. Bajaj (then President) and Shri V. V. Deodhar, (then Vice-President and present President) participated as ICWAI delegation representing India. Shri V. V. Deodhar along with Shri S. Ramanathan attended CAPA Assembly in October 2001 at Sdyney, Australia. Last CAPA Excom was held in April 2002 at Tokyo, Japan where on behalf of ICWAI Shri V. V. Deodhar and Shri S. Ramanathan represented India.

(a) Cost Accounting Records (Chemical Industries) Rules were amended to extend the coverage to another 21 chemicals (b) Cost Accounting Records (Engineering Industries) Rules were amended to extend the coverage to automotive parts and accessories, power transformers, electric generator and machine tools (c) Cost Accounting Records (Motor Vehicles) Rules were amended to extend the coverage to include the heavy earth moving equipments (d) Cost Accounting Records (Mini Steel Plants) Rules were amended to extend the coverage to all steel plants instead of mini steel plants (e) Cost Accounting Records (Vanaspatl) Rules were amended to updatp the records in view of changed operational technology (f) Cost Accounting Records (Formulations) Rules were amended to update the records in view of changed operational technology (g) Cost Accounting Records (Milk Food) Rules were amended to extend the coverage to ice-cream, chocolates and cjesi ghee (h) Cost Accounting Records (Bulk Drugs) Rules were amended to update the records in view of changed operational technology (i) Cost Accounting Records (Aluminium) Rules were amended to extend the coverage to include the foil which was hitherto excluded

2. Revised Cost Audit Report Rules, 2001 and the

Institute's Guidance Notes

IFAC IFAC-FMAC meeting was held in March 2002 at Sdyney, Australia where Shri V. V. Deodhar and Shri S. Ramanathan participated.

SAFA The Institute participated in the SAFA Assembly held in December 2001 at Goa. The last SAFA Assembly took place in May 2002 at Mumbai where ICWAI delegation consisted of Shri Rajiv Mehrishi (Central Government Nominee on ICWAI Council) and Shri V V. Deodhar, President.

In all these meetings, the Institute represented the interests of the Indian Accountants - Cost and Management Accountants In particular and above all, aptly representing Indian national Interests.

PROFESSIONAL DEVELOPMENT COMMITTEE The Professional Development Committee of the Council of the Institute which met from time to time during the year deliberated on various issues relating to professional development, challenges and opportunities. The 2908 Gl/2002 - 5

Revised, updated and comprehensive Cost Audit Report Rules, 2001 were issued to increase the scope, coverage and to strengthen the system of reporting. The Annexures and the Proforma of the Cost Audit Report of the company for the product or activity are to be authenticated by the Company Secretary and at least one Director of the company. New provisions in the Cost Audit Report Rules would provide better analytical view on the business activities of the companies towards more scientific control.

The Institute published a comprehensive book containing Guidance Notes on Cost Audit under the revised Cost Audit Report Rules, 2001. The book contains all aspects of Cost Audit and provides useful guidance to industry and practicing Cost Accountants.

3. Issue of New Cost Accounting Records Rules The following new Cost Accounting Record Rules were issued:

(a) Cost Accounting Records (Mining andU I HtUAZHlTE OF INDIA. EXTRAORDINARY [PART III—SEC. 4] Metallurgy) Rules, 2001

(b) Cost Accounting Records (Electronic

Products) Rules, 2001

(c) Cost Accounting Records (Electricity

Industry) Rules, 2001

4, New Emerging Areas (a) The Government has constituted a committee on Transfer Pricing on which our Institute is duly represented

(b) Cost Accounting Standards Board has been constituted headed by Shn Chandra Wadhwa which has already undertaken the work of drafting Cost Accounting Standard on 'Classification of Costs'.

(c) Constitution of Audit Committee : The role of Cost Auditor in the management of the affairs of the company has been well recognised and he has been included in the Audit Committee as a result of amendment in Section 292A of the Companies Act, 1956.

5. Institute's Cost Audit Booklets The industries and practicing cost accountants were provided with the Institute's Guidelines for carrying out the Cost Audit in various industries. For this purpose, the Cost Audit Booklets published by the Institute were released during the year, relating to industries such as Soaps and Detergents, Footwear, Industrial Gases. The Booklet on Electronics Industry is under preparation. The Guidelines on Cement Industry are also being updated.

Continuous efforts are being made to ensure that the Cost Accountants are recognised in wider areas under different statutes.

FINANCIAL INSTITUTIONS, INSURANCE AND SERVICE SECTORS COMMITTEE The Committee during its tenure gave due emphasis to enlarge the scope of the Management Accountants. Thrust areas as Identified by the earlier committees, namely stock audit in banking and finance sectors, concurrent audit, bank profitability analysis, project finance, assessment and management of NPAs, improvement of capital adequacy ratio and reduction of transaction cos. etc., were continued with renewed effort. The channels of dialogue were kept open and continuous follow up actions were taken to achieve the best result. Chapters were encouraged to keep liaison with the sectors by organising regular seminars and workshops on area specific subjects involving local experts and managers in these fields. Special emphasis was laid on service sectors like health, electricity, education, tourism, municipality, etc. The committee is successful to generate awareness among members about the scope In the sectors.

Continuous endeavours were made to respond to the discriminatory appointment advertisements published in the national newspapers for recruitment of finance or accounts personnel. Very positive response was received from the industries and recruitment agencies. This also created awareness in the industries and the placement agencies. Director of Studies has taken initiatives to pursue this thing quite a long time.

The continuous efforts of the committee help the Institute to establish its pre-eminence in the sector and deseed results have been achieved.

CONTINUING EDUCATION PROGRAMME The Continuing Education Programme Committee of the Institute conducted a record number of 50 Management Development Programmes during the year 2001-2002. This comprises of In-house programmes exclusively for various organizations and also self-run (open) programmes on Residential as well as on Non-residential basis at different places in India and abroad.

The In-house programmes were organized exclusively for the executives of the following organizations.

(j) Oil and Natural Gas Corporation Ltd. (ii) Indian Farmers Fertilizer Cooperative Ltd, (ill) Mahanagar Telephone Nigam Ltd. (iv) Indian Oil Corporation Ltd. (v) Gas Authority of India Ltd. (vi) Maruti Udyog Ltd. (vii) OH Industry Development Board (viii) Indian Navy (ix) National Highways Authority of India (x) DCM Ltd. (xi) Bharat Sanchar Nlgam Ltd.

The Training Programmes were conducted on the following areas: (i) Activity Based Costing and Management (ii) Cost Control and Cost Effectiveness (lii) US GAAP and international Accounting Standards (iv)- Corporate Finance (v) Emerging Trends fn Financial Management (vi) Corporate Taxation (vii) Tax Deducted at Source (viii) Financial Management for Non-Finance Executives

(ix) Re-engineering of Business Process for 'e' Commerce

(x) Costing for Engineers (xi) Implication of WTO (xii) Skill Development programme for the Finance Personnel

(xiii) Treasury Operations and Management (xiv) Strategic Cost Management (xv) Orientation Programme for the finance executives

(xvi) Materials Management (xvii) Managerial Effectiveness (xviil) Indirect Taxation and Service Tax (xix) Accounting Standards

During the year, the Committee organized joint programmes with the following organizations/departments:

(1) Department of Public Enterprises,35 Government of India (DPE)

(2) Confederation of Indian Industry (CM) (3) Automotive Components Manufacturers Association (ACMA) (4) Consumer Electronics and TV

Manufacturers Association (CETMA)

The programme on 'Emerging Trends in Financial Management' has been organized on residential basis at Singapore, Malaysia and Bangkok, which was well received by the senior finance executives of many Public and Private Sector Undertakings.

The exclusive and intensive programme on 'US GAAP and International Accounting Standards' which has been organized on residential basis at Kathmandu, Nepal which was well attended by senior executives of Public and Pnvate Sector Undertakings, Multinationals and Banks from Nepal and India.

The Committee is happy to inform that the new specialized programme developed by the Committee on 'US GAAP and International Accounting Standards' was well appreciated by the participants and organizations participated in the programme during this year and Kathmandu and Mumbai.

The faculties for the international programmes were drawn from the respective foreign countries apart from the Indian faculty.

The profile of the participants who have attended the programmes organized by the Committee involves senior and middle level executives of Public and Private Sector Undertakings, Banks, Insurance Companies, Government Departments and Multinationals.

The Committee is planning to organize many programmes during the forthcoming year on the New Emerging areas of Cost Management, Financial Management, Project Management, Taxation etc. for the benefit of the members of the Institute and also senior and middle level executives of Indian Corporate Sector and Government Departments. As organized in the past, the Committee is planning to organize three International programmes during the coming year.

The Committee is also planning to organize joint programmes with the Department of Public Sector Enterprises (DPE), Government of India and other Trade Associations and Bodies at Delhi and other places throughout India.

The Committee finally acknowledges with thanks the support given by various organizations during this year for the activities of the Committee. The Committee also acknowledges with thanks the Institute President, Vice- President, Council Members and employees for their continued support to the activities of the Committee. ACCOUNTS

The Audited Accounts of the Institute for the year 2001- 2002 with Audit Report thereon are annexed to this Report.

APPRECIATION AND THANKS

The Council appreciated the cooperation extended by the officers and staff as well as the members at large of the Institute for furthering the cause of the profession. The Council also placed on record its sincere thanks to the secretaries and officers of the Government Departments specially the Ministry of Law, Justice and Company Affairs, Ministry of Finance, Ministry of Industry, other Government Departments, various Public and Private Sector Organisations, Autonomous Bodies, Banks, Insurance Companies, Financial Institutions and Multinationals, for the cooperation and support extended to the Council during the year under report The council expects to receive similar help, cooperation and guidance continuously in the future.

By Order of the Council Kolkata V. V. Deodhar 2i"July,2002 President

WESTERN INDIA REGIONAL COUNCIL

WIRC undertook the following activities during the year under report:

(1) Electronic Mail Discussion Groups for the benefit of the students of ICWAI all over the country and abroad have been presented by WIRC for students of each stage. The students' community from all regions and abroad are benefited from this facility. (2) A meeting of the faculty of oral as well as postal coaching was held on 30.3.2002. A number of constructive suggestions were received by the faculty to improve the standard of WIRC coaching centres. Shri Ramesh M. Joshi, Hony. Secretary and Chairman of Students, Members and Chapter Coordination Committee, thanked the faculty members for giving valuable suggestions for improvement. He also explained the present requirements that are expected by WIRC from the faculty members for improving the services to the students. Shri V. V. Deodhar, President ICWAI and Shri S. R. Ray, Chairman WIRC, also addressed the faculty members on this occasion.

(3) WIRC has taken Initiative to develop and run Computer Lab at WIRC premises. The Lab was inaugurated on 1.2.2002 by Shri S. R. Ray, Chairman, WIRC, along with Shri V.v. Deodhar, President ICWAI, Shri D.V. Joshl, Central Council Member, and Shri P. D. Phadke, past President, ICWAI. The Computer Lab has capacity to accommodate 20 students in a batch. The batches are for training are conducted between 8 a.m. to 8 p m. on six day a week basis. For the convenience of students, batch timings are adjusted/extended by mutual understanding. Some special holiday batches are also organised.

(4) WIRC has also developed an On-Line Objective Test for the students undergoing computer training for intermediate and Final. The facilities available to% THE GAZETTE OFIND1A EXTRAORDINARY [PAKTIII— Si;r. 4] (6) A two-day Convention on 'Cost Carnival - 2002' was organised on 15 and 16 March 2002. Ms Jayshree Venkatraman, Whole-Time Director, TAFE Access Ltd., Chennai, inaugurated the Convention.

(7) A seminar on "WTO - Pact & Impact" was inaugurated on 23rd March 2002 at Pondicherry by Shri M.H. Upadhyaya, Working President of TANFAC Industries Ltd.

chapters all over lndi;i and other Regional Councils conducting computer training for thair students. WIRC has published study materials for compulsory computer training prescribed by the ICWAI for the students undertaking coaching for Intermediate and Final The booM were released by Shri Ravi Shankar Pcasad, Union Minister of State for Coal and M'nes, Government of India, on 11lh January, 2002 on the occasion of 43"" National Convention of I C W AI at Kolkata.

(8) An In-house Training Programme for Accounts Personnel of BSNL, Chennai, was organised by SIRC In two batches on 30th April & 5"¹ May, 2001 and 14th & 19* May, 2001 respectively.

(5) WIRC successfully completed Executive Development Training Programme exclusively designed for the Finance Officers of the Indian Oil Corporation Ltd.

EASTERN INDIA REGIONAL COUNCIL

(1) All India Students' Conference was held on 11 Nov. 2001 at State Youth Centre, Kolkata. The theme of the Conference was "E-Business Era - Role of Management Accountants". Shri Manab Mukherjee, Mlnister-in-Charge of Information and Technology, Govt. of West Bengal, Inaugurated the Conference.

(2 ) 43rd National Convention of Cost and Management Accountants was held from 11-13 January 2002 at Park Hotel, Kolkata. The theme of the Convention was "Sustaining Competitive Advantage - The Global Perspective*. Shri Ravi Shankar Prasad, Union Minister of State for Coal and Mines, Govt. of India, Inaugurated the Convention.

(3) EIRC organised a programme on "Interview & Group Discussion - A Gateway to Job" on 13.4.2002 at EIRC premises. Shri Ajay Agarwal, Director, Rapid Learning Systems Pvt. Ltd., was the Speaker.

(4) (a) Asansol Chapter of Cost Accountants organised a meeting on 25.8.2001 on Direct Taxes and its Recent Amendments In the Finance BIN 2001. Shri P.K. Jain, Practising Cost Accountant, was the speaker. (b) Independence Day was celebrated by the Chapter on 15.8.2001. (c) 49lh Oral Coaching Classes of the Chapter was inaugurated on 3.11.2001 by Prof. Bijit Mukherjee. (d) Quarterly Meet was organised by the Chapter on 13.2.2002 Shri CM. Sadhu, Finance Manager, ECL, spoke on Vigilance awareness and Professional Ethics". (e) The Chapter organised Annual Seminar on Budget 2002-2003 - Major Amendments and its Impact" on 10 3.2002 at CMDPIL Club, Asansol which was inaugurated by Shri Ashok Mehta, Chairman-cum-Managlng Director, ECL.

(5) (a) Cuttack-Bhubaneswar Chapter organised a workshop on Business Communication on 22.9.2001. Major S K. Das, Chief of HRD, Reliance Telecom Ltd. spoke on the day. (b) 27lh Session of Oral Coaching was inaugurated by Shri P. K. Parida, General Manager (Fin) of NALCO on 3.10.2001. (c) A modular training for the Final students was organised during 9th to 23rd Oct. 2001. (d) A talk on "Unlock your potential - sky is the limit" was organised on 14.10.2001 at Hotel May Fair Lagoon, Bhubaneswar. Shri Ajay Agarwal, Director, Rapid Learning Systems Pvt. Ltd , was the Speaker. (e) A talk on Investment Management was organised in association with Strategic Capital Corporation Pvt. Ltd., Mumbai, on 20.11.2001 at Bhubaneswar. (f) A Career Counselling Programme was organised by the Chapter on 21.12.2001 at Khallkote College Auditorium. A seminar on Role of Cost and Management Accountants was also organised on the day. Prof. M.D P. Rao, Principal of the College, inaugurated the programme (g) Inaugural function of the Computer hands on training class for students was held on 16.1.2002 at NUT CATS at Bhubaneswar.

n (h) Seminar on 'Attitude to Win" was held on 1 2. 2002 at Maharshl College of Natural Law BhubaneBwar. Mrs. Anita Acharya, former Dy Editor, The Times of India, inaugurated the seminar, (i) Talk on "Personal Tax Planning - Valuation c Perquisites" was held on 20.22002 at Hotel Swas Plaza, Bhubaneawar. Prof. S. Sampat, Corporati Tax Consultant, was the speaker.

(6) Dhanbad-Sindri Chapter of r^s* Accountant organised a lecture Mf>st on 12 10 5001 at thi Chapter promises

(7) Ranch! Chapter of Cost Accountants organised ai Annual Convention Interface 2002 at Ranchl oi 10.3.2002. The programme was inaugurated by Shi A. K. Sinha, CGM, BSNL

(8) Rourkela Chapter of Cost Accountants organised i Members' Meet on 22.9.2001 In the chapte premises. Shri M.K.L. Chand, Sr. Manager (F&A) Rourkela Steel Plant, spoke on the occasion (9) Rourkela Chapter also organised a Members' Mee on 13.10.2001 In the chapter premises. Shri N.K Patra, Astt Manager (F&A). Rourkela Steel Plant spoke on the occasion.

(10) The Chapter organised All Orissa Conference or Accounting Standards in collaboration with Rourkela Branch of ICAl. Shri Jual Oram, Unior Minister of Tribal Affairs, Inaugurated th" conference.

(11) Serampore Chapter of Cost Accountants organised £ meet on Environment Audit - Role of Cos) Accountants on 4.8.2001. Shri N.N. Chatterjee Environment Engineer and Consultant, was the main speaker.

The Chapter also organised a 5-month training programme from 22.2.2002 for entrepreneurs under the sponsorship of District Industry Centre, Hooghly and Hooghly Zilla Parishad.

NORTHERN INDIA REGIONAL COUNCIL

The total number of students enrolled for different courses was 5,600 and the total number of members was 3,550 during 2001-2002,

Northern India Regional Council organised different professional activities during the year of which the following are important: (1) A half day programme on Cost Accounting Standards was organised on 27.10.2001.

(2) Shri K.P.S. Gill was the keynote speaker on "Civil Society and Terrorism" organised at NIRC on 22.9.2001 which was attended by a large number of participants.

(3) Shri V. P. Kumar, a senior member, spoke on Implementing Corporate Governance on 17.11.2001 which was attended by a large number of participants.

(4) A programme on Transfer Pricing was organised on 2311.2002. Prof. S. Sampat, Corporate Tax Consultant, was the speaker.

(5) A half day seminar on Success that Succeeds was organised on 22.12,2001. Dr V. K. Chopra, Management consultant, was the main speaker. (6) A talk on Union Budget 2002-2003 was organised on 5.32002. Shrl S.D. Kapila, Director General of Income Tax. and Dr D. P. Semwal, Oi'w-t'v i" CBDT, were the guest speakers.

(7) The first course on Cost Accounting Record Rules commenced on 2.3.2002 and concluded on 6.4.2002. The course was Inaugurated by Shri J. K. Purl, former President of ICWAI. Shrl I. P. Singh, Joint Director (Cost), DCA, was the gust of honour.

(8) A Face to Face Meeting with Shri V. V. Deodhar, President, was arranged on 22.1.2002. Shri M.K. Anand, Member, NIRC and S/shri D. C. Bajaj, K. L. Jaisingh and Chandra Wadhwa - CCMs - presented their views.

(9) A Motivational Talk was organised on 19.4.2002, where Shrl P.S. Rathor, a senior member, spoke on the occasion.

(10) A Practitioners' Meet was organised on 13.10.2001.

Apart from office bearers Dr. K. L.

Jaisingh and Shri Chandra Wadhwa - CCMs - expressed their views.

(11) Computer Course for Intermediate and Final students was introduced on 1.3.2002

(12) A study circle meeting was held on 12.10.2001, the main subject of discussion being Cost

Accounting Standards.

(13) 14"¹ course of Skill Development was held on 15-16 9. 2001 and again repeated on 19-20. 1.

2002. Lt. Gen. (Retd.) H. K. Kapoor was the main speaker.

(14)15-days Modular Training programme for students of Final course was organised on 16.9.2001. The course was inaugurated by Shri J. K. Puri, former President of ICWAI. The programme was concluded on 30.9 2001. The 2nd programme was commenced on 16.3 2002 and concluded on 1.4.2002.

(15) Programme of Group Discussion and Business Communication Skills for Intermediate course is being held on first Friday and Saturday every month. (16) An Annual Get-together and Felicitation Function was held on 7.4.2002 at Ashok Hotel, New Delhi which was attended by a large number of members from NIRC, Including some former Presidents and very senior members of the profession, along with their family members.

(17) A Career Counselling Programme was organised by the officials of the NIRC at various colleges of Delhi University and Schools of NCT Delhi.

A Counsellor's Meet was organised on 15.5.2002 by the officials of the NIRC which was attended by various schools and colleges. (18) Best Chapter Award was presented at the 43"* National Convention at Calcutta and the recipients were Lucknow, Chandigarh, Jaipur and Kota Chapters of Cost Accountants (19) Kanpur Chapter of Cost Accountants organised one day seminar on 12.8.2001 on small scale industries inaugurated by Shri R. N. Trivedi, IAS, Director of Industries, UP.

(20) Half day seminar on Segment Reporting - AS 17 was held on 16.2,2002. Shri H. K, Garg, President, UP Stock Exchange, was the Chief Guest. (21) Noida Chapter organised a programme on Union Budget 2002 on 93.2002 along with Chartered Accountants, Company Secretaries of India and Noida Management Association. (22) A programme on Valuation of Perquisites and Accounting Standard 22 on Accounting for Taxes on Income was organised on 29.11.2001. (23) Lucknow Chapter of Cost Accountants organised a P.D. programme on 29.7.2001 on Turnaround of a Sick Company. Dr A. Sahay, CMD of Scooters India Ltd. was the Chief Guest. (24) The chapter organised a seminar on Challenges for the Profession - Impact of Recession on Global Economy on 14.4.2002. (25) Chandigarh-Panchkula Chapter of Cost Accountants organised a study circle meeting on New Central Excise Rules on 12.7.2001, Companies Amendment Act, 2002 on 25.11.2002 and Accounting Standards on 23.12.2001. (26) Seminar on Human Resource Development on 14.10.2001, Relevance of Cost Management on 6.1.2002 and Mode Budget 2002 on 23.2.2002 were also held. (27) Jodhpur Chapter of Cost Accountants organised a four day course on Indirect Taxation from 24- 27.2.2002.

(28) The Chapter also organised a one day seminar on Companies Amendment Act 2000 and Service Tax on 30.9.2001 jointly with the local chapter of ICSI. (29) Ghaziabad Chapter of Cost Accountants organised a talk on New Valuation Rule of Perquisites In Income Tax Act, UP Value Added Tax and Revival of Indian Economy on 14.10.2001 along with the local chapter of ICSI. (30) A programme on Union Budget 2002 was organised on 3.3.2002 with local chapters of ICAI and ICSI. (31) Jaipur Chapter of Cost Accountants organised a seminar on Cost Management in Global Economy on 9.9.2001. (32) A meet on Value Added Tax and Service Tax was held on 18.11.2001 which was attended by a large number of practising and other members. (33) A workshop and group discussion on Capital Management and Tax Planning was held on 12 10.2001.

(34) The Chapter organised a seminar on Effective Business Communication and Creative Thinking on 16.10.2001. Shri Jaisingh Kothari, Finance Director of Rajasthan Patrika, was the Chief Guest. (35) A programme was organised by members of Tehri Uttranchal on 7.1.2002 at Tehri Hydro-Dev. Corpn. Ltd., Tehri Garhwal. A talk on Union Budget 2002 and Accounting Standard 17 - Segment Reporting was also held in April 2002.

Standing Committees and other Committee of the Council of the Institute as approved by the council at its 20$*

meetine held on W4 Julv.2001 for the period from 22"d Julv.2001 to 21" Julv.2002

10. Regional Councils and Chapters Coordination

Committee (Quorum 2)

1. Executive Committee (Quorum 3) (1) Shri V.V.Deodhar.President -Chairman (2) Shri Kunal Bancrjce - Member Vice-Prcsident

(3) Shri S.Ramanathan - Member (4) Shir D.C. Bajaj, ImmediBte - Member Past President

(1) Shri B.V.Ramana Murty -Chairman (2) Shri Pravakar V Lint^ -Member (3) Dr. K.L.Jai Sing¹

-Member 11. Computer & Networking Committee (Quorum (5) Shri Chandra Wadhwa - Member 3)

2. Disciplinary Committee (Quorum 2)

(1) Shri V.V.Deodhar, President -Chairman (2) Shri A. Ramaswamy, - Member (3) Shri B. V.Ramana Murty - Member

-Member (1) Shri D.C.Bajaj CMirman (2) Shri S.Ramanathan -Member (3) Shri B.Majumder (4) Shri H,R. Subramanya -Member 12. Public Sec.Co-ordination

3. Examination Committee (Quorum 2)

Committee (Quorum 3)

(1) Shri Kunal Banerjec, -Chairman Vice-President

(2) Shri S. Ramanathan - Member (3) Shri Chandra Wadhwa -Member Government Nominee

(1) Shri B.Majumder -Chairman (2) Shri Chandra Wadhwa -Member (3) Ms.Deepa Gupta -Member (4) Dr.Ashok Agarwal -Member OTHER COMMITTEES

13. Navl Mumbal Research Centre Building

4. Training & Educational Facilities

Committee (Quorum 3)

Committee (Quorum 3)

(1) Shri H.R.Subramanya -Chairman (2) Dr.Atul Aggarwal - Member (3) Shri Pravakar Mohanty - Member (4) Shri V.R. Kedia - Member (3) Dr. K.L.Jai Singh - Member

-Chairman (1) Shri V.R.Kedia (2) Shri V.V.Deodhar, President -Member (3) Shri S.Ramanathan -Member -Member (4) Shri D.V.Joshi

5. Research & Journal

Committee (Quorum 3)

(l)ShirD.V.Joshi -Chairman (2) Shri B. V.Ramana Murty -Member (3) Dr, Ashok Agarwal -Member 6. Continuing Education Programme Committee (Quorum3)

(1) Shri S. Ramanathan -Chairman (2) Shri D.V.Joshi -Member (3) Shir H.R. Subramanya -Member (4) Dr. K.L.Jai Singh -Member 7. Professional Development Committee (Quorum 3) (1) Dr. K.L.Jai Singh -Chairman (2) Shri Pravakar Mohanty . -Member (3) Shri H.R. Subramanya -Member *

8. Members' Services & Members' Facilities

Committee(Quorum 3)

(1) Dr. Ashok Agarwal -Chairman (2) Shri B.Majumder -Member (3) Shri Pravakar Mohanty -Member (4) Shri D.V.Joshi

-Member 9. Financial Institutions, Insurance and Services Sectors Committee (Quorum 2)

Gupta & Co. Chartered Accountants

Auditors' Report to the Members or the Institute of Cost and Works Accountants of India.

1. We have audited the attached Balance Sheet of the Institute of Cost and Works Accountants of Indfa( "the Institute") as at 31 March 2002 and also the Income and Expenditure Account for the year ended on that date. These financial statements arc the responsibility of the Institute's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. "We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements arc free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. These accounts have been approved by the Council of the Institute but has not been signed by Secretary as the Institute did not have a Secretary on that date.

4. Attention is drawn to the following remarks and Notes on Schedule 19:

4.1 .The fixed assets of the Institute are not physically verified by the management. Accordingly the effects on accounts, if any, is not ascertainable.

4.2 Title deed for land and building of Pune Chapter valued at Rs. 29,73,589 capitalised during the year is pending execution. Further, title deeds of leasehold lands (Nagpur, Durgapur and Ukkunagram) were also not available for our examination. We are unable to comment on the appropriateness.of the amortisation policy in this regard, 4.3 Share script for Investment in Trust Fund of Rs.500/- was not available for our verification.

4.4 The stocks of publication and study material have not been physically verified by the management and the

53A, Mirza Ghalib Street Kolkata-700 016 Cable: Vidimus

Phone: 229-2638,229- 62411,229-

0871/72

Fax: (91) (033) 229-1859

Email: [email protected] balances are as per book records. The paper stocks lying with third parties as at 31.03.2002 of Rs.4.49 lacs, out of which Rs.3.49 lacs have been conform based on confirmation or statements received from such parties. Further, these stocks arc valued at cost as stated in Accounting policy No, 4 which is not in accordance with Accounting Standard 2 "Valuation of Inventories" issued by the Institute of Chartered Accountants of India.

4.5 In our opinion, no provision has been made for old publications amounting to Rs.5,95,992, paper stock amounting to Rs.6071 and study materials amounting to Rs. 1,25.173.

4.6 As Stated in Note 17 no provision has been made against the following year end balances which are being carried forward for more than three years:

8% Building Loan Rs. 20,21 lakhs 4% Building loan Rs. 1.23 lakhs Computer Loan Rs. 7.27 lakhs Accrued Interest on Rs. 0 77 lakhs above Building Loans

Sundry Debtors (Programme) Rs. 1.77 lakhs Sundry Debtors (Journal) Rs.0.19 lakhs

Rs: 31.44 lakhs 4.7 Bank balance includes Rs.5879 in inoperative accounts and Rs.4661 attached by the Delhi Municipal Corporation.

(See Notes. 14,18 and 19). A sum of Rs. 3369/- ;

representing interest of earlier year is lying in a postal savings account for which further .information or details were not available,

4.8 As stated in Note 5 Rs.21,32,138 in respect of Silver Jubilee Capital Grants (Advance) remain unadjusted for lack of documents.

4.9 As stated in Note 11 and on the basis of explanations received and information to the extent available, in our opinion, the amount of Rs. 12.13.436 included under other advances may be doubtful of recovery and no provision has been made.

4.10 As stated in Note ;2 Advance for fixed asset of Rs.5,63,352 is being carried forward and no development has taken place for last several years and no provision has been made.

4.11 As stated In Note 4 adjustment of Advances of Rs.l, 18,79,050 for construction of Buildings is pending due to lack of information/documents. Penalties, if any, in this regard cannot be ascertained at this stage.

4.12 As stated in Note 3 Rs. 8510(Net) has been adjusted through General Fund to write off partial adjustments in bank reconciliation statements. Further, adjustments as may be required on reconciliation of bank accounts are not ascertainable at this stage. Non-specific deposits etc. of Rs.94,989 have also been adjusted through General Fund.

4.13 As stated in Note 9 there is a shortfal 1 iti the investment of Rs.22,550 in Employees Benevolent Fund.

4.14 As stated in Note 10 amounts received in respect of Prize fund for Rs.30,000, A VS Rao Memorial Endowment Lecture of Rs. 10,001 and Students Welfare Fund of Rs.40,201 are included under other liabilities pending necessary investment.

4.15 As stated in Note 15 and Accounting policy 5 (c) annual subscription, tuition fees and leave encashment are accounted on cash basis, The accounting of leave encashment is contrary to Accounting Standard 15, "Accounting for Retirement benefits in the Financial Statement of the Employers" issued by the Institute of Chartered Accountants of India.

4.16 As stated in Note 2.1 Rs. 6.% lakhs included under the head Conference and Meeting

International has been expensed without any concurrence from the Central Government.

4.17 No provision has been made for Rs.l5,61,797 in respect of property tax for Institute's building at New Delhi.

4.18 In our opinion, the internal controls in respect of payment and recoveries of advances, transactions with Regional Councils and Chapters, reconciliation of annual subscription and tuition fees and reconciliation of various accounts and unlinked items require to be strengthened and formalized.

4.19 As stated in Note 22 verification slips have been issued to Regional councils and Chapters and there balances ate subject to reconciliation and consequent

adjustments, if any, on receipt of such confirmation.

Confirmation letters have not been sent to Sundry Debtors, Sundry Creditors including outstanding membership fee to foreign bodies and the balances ore subject to reconciliation and necessary adjustments, if any.

4.20 The sales of suggested answer and scanners aggregating to Rs.20.98 lakhs through the Regional Councils arc on the basis of their advice and Could not be verified by us.

2908 GI/2002 - 6

4.21 As explained in Note 1 claims lodged by certain Council members and Regional Councils in respect of foreign travel by office bearers have not been accounted for on the basis of directions received from the Central Government.

4.22 The consequential effect of paragraphs 4.1,4.2,4.3, 4.4, 4.7, 4.8,4.11. 4.12,4.13, 4.14,4.15, 4.18,4.19 and 4.20 above, on the deficit for the year and net assets could not be ascertained. Had the observations made in paragraphs 4.5,4.6,4.9,4.10,4.1 6 and 4.17 above been considered the deficit for the yeaf would have been higher by Rs.65.14 lakhs (net) and the net assets lower by that amount.

5. Subject to paragraphs 4.2, 4.3, 4.4, 4.7, 4.8, 4.11, 4.12,4.18, 4.19 and 4.20 above, we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

6. Subject to paragraphs 4.4 and 4.15 above, in our opinion, proper accounts have been kept in conformity with the requirements of The Cost and Works Accountants Act, 1959 and The Cost and Works Accountants Regulations, 1959.

7. The Balance Sheet and Income and Expenditure account dealt with by this report are in agreement with the books of account.

8. In our opinion and to the best of our information and according to the explanations given to us, the accompanying accounts together with notes thereon and the significant accounting policies give, subject to paragraphs 4.1 to 4,20 above, a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet of the state of affairs of the Institute as at 3 I March, 2002; and

b) In the case of the Income and Expenditure account of the deficit for the year ended on that date.

For Gupta & Co.

Chartered Accountants

Sd/-

S.K.Ganguli

Partner

Kolkata

21 July, 200242_ THE GAZETTE OF INDIA: EXTRAORDINARY [PART HI—SEC. 4]

-W

2908 GI/2002 - 750 THE GAZETTE OF INDIA: EXTRAORDINARY [PART HI—SEC. 4] 51 52 THE GAZETTE OF INDIA. EXTRAORDINARY [PART HI —SEC. 4]

NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31⁸T MARCH. 200;

SCHEDULE NO. 19

A. SIGNIFICANT ACrilUimMG.gQU.CY

1. Fixed Assets:

a) Fixed Assets are stated in the accounts at cost less depreciation provided at diminishing value method irrespective or the date of purchase at the rate presu ibed under the Income Tax Rules from time to time.

b) No write off is made in respect of leasehold land.

C) Assets under creation are shown as capital work in progress.

WIRC and S1RC for Rs. 1,36.097/- and Rs. 1,53287 respectively being the amount spend by them in this connection, have not been accounted for as per Govt. Directives issued vide their letter reference no. 2/l/97/IGC(Vol. II) dt.l9'h March,2002 and communicated by the Adviser/Secretary vide note reference no.G/5/3/2002 dt.20lh March.2002 (Previous year - nil).

2.: Outstanding capital commitment have been estimated at Rs.8,45,028/- (Previous year . - Rs.8,45,028/-) after setting oIT the advance of Rs,5,63,352A.

3. An amount of Rs, 8,510/- (comprising credit of Rs.80,081/- and debit or Rs.71,571/-) has been adjusted in General Fund to write off partial outstanding in Bank Reconciliation Statements or various bank accounts of the Institute. Further adjustments.

• as may be necessary, will made from time to time.

2. Income and Expenditure Recognition :

a) Incomes are normally treated in the accounts on cash basis except Interest Income and transactions with the Regional Councils and Chapters in respect of sale of various publications of the Institute.

b) Expenditures other than Annual Grants to Chapters and Leave Encashment to Employees arc considered on mercantile basis. Election related expenses are charged off in the accounts over three years.

4. Land and Building of two chapters viz. Pune and Hyderabad has been capitalized during the year at a gross value ofRs.59,92,411/- (Previous year - Rs.17,81,601/- in respect of Ranipel- Vellore & Baroda) which include contribution by the ChaptersforRs.26.73,589/- & Rs.27.18,822/- respectively.

Depreciation has been provided w.e.f. the year of capitalization. Unadjusted balance in Advance to Regional Councils and Chapters for construction of buildings is 3. Investments:

Investments are stated at cost.

4. Inventories :

Inventories are comprised of various publications, papers and study materials, which have been valued at Cost of Purchase plus other related Incidental charges. However, un- consumable publications and study materials are not included in stock value.

Rs.l, 18,79,050/- for want of relevant documents.

5. An amount of Rs.l ,00,000/- (Previous year - nil) has been released to Nasik-Ojhar Chapter on account of Silver Jubilee Capital Grants (Advance) during the year. However, advance given to Pune Chapter has been adjusted during the year, leaving an unadjusted balance amounting to Rs.21,32,138/-, which could not be adjusted for want of relevant documents.

5. Employees' Retirement Benefits:

a) Gratuities arc provided in the Accounts on the basis of actuarial valuation in accordance with the Payment of Gratuity Act, 1972.

b) Provident Funds arc paid to the Trustees as per the' Institute's Rules in this regard and Institute's contribution are charged against revenue each year c) Leave Encashment benefit on retirement is accounted for on cash basis. 6. Foreign Currency Tramactions:

6. Exemption in respect of Income Tax has been granted u/s 10(231 A) read with Section 11 of the Income Tax Act, 196 1. Accordingly, no provision for Income Tax has been made.

10. All Prize Funds maintained by the Institute have been incorporated in the accounts together with relevant investments thereof in terms of the decision of the Council. Since the funds have been sponsored by the different donors, the Income 1 Expenditure thereof have no bearing with the Institute's Accounts. During the year, Institute has received Rs.l.00,000/- from Mrs. Kalyani Ganguly, Rs.30,000/- from Mr.I.S. Iyer.

Amount invested during the year is Rs.200,00/- and Rs.25.000/- received in the last year along with Rs. 1,00,000/- received in this year. Necessary step for investment of Rs. 30,000/-, is being taken and has been shown under Other Liabilities.

Interest accrued on investment includes Rs. 11,671/- on fixed deposit for Prize founds.

Amount received on account A V S Rao Memorial Endowment Lecture and Students Welfare for Rs. 10,001/- & Rs, 40,201/- respectively has been shown under Other Liabilities. Necessary steps arc being taken for investment thereof.

11. Other advances include Rs. 12,13,436/- (Previous year - Rs. 16,88,026/- the details of the same are as under:

a) Rs.2.73,764/- is recoverable from five Central Council Members account of Travel Expenses as per decision or the 201" Council Meeting held on March 2001.

b) Rs.9,39,672/- is recoverable from seven Central Council Members on account of Legal Expenses as per decision of the 200th Council Meeting held on 3rd & 4th December, 2000 read with the 201" Council Meeting held on 24¹¹¹ March, 2001.

Rs.4,74,590/- recoverable from Ex- Secretary of the Institute on account of Legal Expenses as per decision of 291" Ex, Com. Meeting and adjourned meeting held on 3rd March, 2001 and 17th March, 2001 read with 294th Executive Committee Meetingh held on 23rd and 24"* June, 2001 has been adjusted as per decision of 206th Council Member dt. 17* October, 2001.

12. Amount recoverable on account of Advertisement and Delegate Fees from SAFA Seminar and CAPA Seminar Rs.24,000/- and Rs.3,000/- respectively has been adjusted against General Fund as per decision of the 296th Executive Committee Meeting held on 14th August, 2001.

13. As per past practice, the accounts of the Regional Councils are not incorporated, though at the time of computation o (Trust Income under the Income Tax Act, 1961 these arc considered.

14. Account No.CD/1924 of the Central Bank of India, Khan Mutot Branch, New Delhi has been attached by the Municipal Corporation of Delhi (Assessment & Collection Department) w.cf. 7th November, 2001 on account of Property Tax.

Provision for the same has not been made as the matter is been contested through Regional Council.

15. Accounting of Annual Subscription and Tuition Fees are accounted on Cash Basis as per Accounting Policy No.2(a).

16. Rs. 14,77,527/- spent *.r By-Election (2001) and Election of the Central and Regional Councils of the Institute (2001-2004). l/3rd of the same has been charged to the Income &, Expenditure Account leaving a balance of Rs.9,83,018/- under the head Misc. Expenditure (to the extent not written off) as per Accounting Policy No. 2(b).

17. The recoveries in respect of the foliowings has been pending for more than three years:

Sundry Debtors (Programmes) Rs.1.77 lakhs Sundry Debtors (Journal) Rs.0.19 lakhs.

Steps are being taken to recover the amount.

The 'Institute had granted Building Loan and Computer Loan to different Chapter and the amount outstanding for more than three years is mentioned below:

8% Building Loan- Rs.20.21 lakhs. 4% Building Loan-. Rs. 1.23 lakhs.' Computer Loan - Rs.7.27 lakhs.

Accrued Interest on Building Loan - Rs.0.77 lakhs.

18. Confirmation of balance in respect of Rs,.3000/- in Current Account could not be obtained.

19. Bank Balances include Rs.5,879/- (Previous year - Rs.5,767/-) in inoperative Bank Accounts.

20. Legal Expenses include Rs.0.50 lakhs, which was paid as advance to the Advocates in the earlier year in respect of interlocutory application based on the decision of the Council, has been adjusted during the year.

21. For participation in the International Conferences and Seminars during the year, an expenditure of Rs.6.96 lakhs has been apprised of and formal letters hsve also been written to the Govt. of India for each such travel.

22. Verification slips issued to different Regional Councils and Chapters for confirmation of balances are still awaited.

23. Previous year's figures have been regrouped wherever found necessary to conform to the current year's groupings.

KUNALBANERJEE, Vice President V. V. DEODHAR, President

Kolkata

Dated thc21stJuly,2002. R.N.PAL, Director(A&F)

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