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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II- Section 4

PUBLISHED BY AUTHORITY

No. 4] NEW DELHI, SATURDAY, SEPTEMBER 30, 1972/ASHAVINA 8, 1894

Separate paging is given to this Part in order that it may be filed as a separate compilation

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

NOTIFICATION

New Delhi, the 30th September 1972

No. 48.CA(l)/72.—In pursuance of sub-section (5) of Section 18 of the Chartered Accountants Act, 1949, a copy of the Report and the audited accounts of the Council for the year ended 31st March 1972 is hereby published for general information.

TWENTY-THIRD ANNUAL REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST MARCH. 1972

The Council has pleasure in presenting its 23rd Annual Report for the year ended 31st March 1972, in accordance with the provisions of Section 18(5) of the Chartered Accountants Act, 1949.

I. THE COUNCIL

1. Members of the Council and its various Committees

As provided in Section 9 of the Chartered Accountants Act, the Eighth Council was constituted on 17th September 1970, partly by election and partly by nomi- nation by the Central Government. The names of the members of the Council and its various Standing and other Committees, constituted under Section 17 of the Chartered Accountants Act, are given in Appendices I and II respectively.

( 5 3)

2. President and Vice-Preslilent

Shrl A. B. Tandan (Kanpur), who was the Vice-President In the preceding year, was elected the President by the Council at Its meeting held on 11th, 12th and 13th October, 1971. At the same meeting, Shri R. K. Khanna (New Delhi) was elected as the Vice-President.

i. Council and Committee meetings

During the year, the Council held three meetings—the first on 19th July 1971, Ihe second on 11th, 12th and 13th October 1971 and the third on 16th, 17th and 18th March 1972. Details of the meetings held by the various Committees are given in Appendix III.

II. FINANCES

1,Accounts.—The Balance Sheet as at 31st March, 1972 and the Income & Ex- penditure Account for the year ended on that lay, duly audited, are appended at the end of this Report. The Income & Expenditure Account lor the year shows an excess of expenditure over income amounting to Rs, 80,129 as against Rs. 62,104 In the previous year. These accounts Include the accounts of the Regional Councils. Students' Associations and their branches.

2, Auditors.—Sarvashri P. R. Mehra and M. R. Venkataraman continued to be the auditors of the Institute's accounts for the year ended 31st March 1972.

III. PROFESSIONAL MATTERS

1. Professional Development

(a) Study of the problems of the members.

During the past several years, the Council has been trying to tackle the problems alfecting members In practice and those In employment with a view to securing an equitable flow of professional work, finding new avenues of pro- fessional work, increasing employment opportunities for the members and creating among them a sense of satisfaction and belonging to the Institute. The Council has also be.en continuously taking steps to improve the public Image of the pro- fession, to increase the technical competence of the members, to Impose rigorous standards of professional conduct so that the public confidence in the credibility of a certificate of a Chartered Accountant is improved. Time and again, the questions regarding 'concentration' of audit work and 'independence' lof the profession have been raised In the Press as well as in the Parliament. The Council is firmly of the view that the profession is quite capable of solving its own problems and that there is no need of any outside interference in the affairs of the profession The Council would like to promote a dialogue between the members themselves and their representative body, the Council, so that ways and means could be found to tackle the problems facing the profession.

The Council has all along been aware and conscious of the problems which the members have been and are facing and, to the best of Its ability, it has been attempting not only to" ensure an equitable distribution of the existing professional work but also for securing fresh avenues of professional work as well as employ- ment. Various suggestions have been made from time to time by the Council to the Government for expanding the field of professional work such as audit of cooperative societies, audit of educational institutions, audit of partnerships above a certain size, branch audits, etc.

Members will recall that certain sel£-regulatory measures were recommended Oy the Council at its meeting held In December 1970 to be followed by the members of the profession on a voluntary basis.

With a view to meeting the immediate needs of the situation and for mitigating the problems of younger members, the Council has now decided that the s,elJ!- regulatory measures should be made mandatory and the Government be requested to amend the Chartered Accountants Act and /or Chartered Accountants Regula- tions in such manner as it may deem necessary to achieve the desired objective.

The appraisal of the problems facing the profession is a continuing process 3nd t{ie Cpuncil has been reviewing them from time to time. Recently, the Council Issued a questionnaire to the entire membership of the Institute for eliciting their views on the various problems of the members of the profession, particularly the lunior members. The Regional Councils have been requested to get the problem discussed at meetings of the members in their respective regions at the earliest and to send their views and suggestions on the following ajid any other points that may be considered necessary:—•

(1) Removal of the alleged monopoly in audit and the alleged concentration.

(2) Celling on number of audits.

<3) Rotation of auditors at certain intervals.

(4) Nationalisation of audit, which implies that the power to appoint the

auditors should vest with a centralised agency.

(5) Finding new avenues of professional work and employment for the

members.

The Council has also decided to obtain information from Stock Exchanges to determine the nature and extent of 'concentration' of audit work in the hands of a few firms. The findings of the Council as a result of these enquiries shall be finalised at an early date.

The Council, in its ellorts to further increase the professional opportunities and to open new avenues, of employment for the members, has issued a booklet "Why don't you call him?" to propagate the usefulness of internal auditing and to impress upon the Industrial houses to utilise the specialised services of Chartered Accountants to act as internal auditors.

Efforts will now be made to organise Seminars/Symposia to Impart higher training to members in the various techniques of internal auditing with the assistance of a group of Internal Auditors.

As was mentioned in the last report, the Council has made a representation to the Department of Company Affairs and the Ministry of Law suggesting amend- ment of the Partnership .Act with a view to making compulsory the audit of 1 irtnershlp firms above a certain size. This matter is receiving attention of the Union Government.

As has already been reported, for strengthening the knowledge of members in the Held of auditing and for bringing their knowledge up-to-date on the latest developments in auditing techniques, the Council has initiated action for the preparation of Industrywise technical guides to audit for some of the major industries. The technical guide for the audit of cement industry is expected to be finalised very soon. Efforts are being made to prepare similar guides for other industries as well.

(e) Organisation of offices of Chartered Accountants

A study ol the organisation of the offices of Chartered Accountants is being conducted with the object of making recommendations in respect of maintenance of office records, adoption df office manuals, equipment etc. There has riot been any appreciable progress on this project during the year due to various reasons bul t is expected that the work will get completed very soon.

(f) Forms of audit reports

A_- reported earlier, the various forms of audit reports and certificates which Chartered Accountants are required to sign and certify during the course of their professional wo'rk are being scrutinised and the concerned authorities will, in courSe of time, "be approached for such revision or modification of the forms of

reports and certificates, as may be necessary to remove the attendant difficulties. Here again, the progress has not been very satisfactory for various reasons but efforts are now being made for an early completion of the project.

(g) Management Consultancy Services.

The Council is actively considering the ways and means of providing guide- lines to the members and to prescribe the necessary conditions for allowing them to render the entire range of Management Consultancy Services. The legal, ethical and other related Issues Involved in our members wishing to associate with members of other disciplines for rendering the Management Consultancy Services as well aa the form of organisation through which such arrangements could be permitted, are being examined. An exposure draft of the conditions and relaxa- tions proposed to be made in relation to Management Consultancy Services to be rendered by members of the Institute has been published In the Journal. The Council would soon finalise its views on this matter,

(h) Payments to Auditors for "Other Services"

Recently, some misgivings with regard to payments to Auditors for "other services" has been expressed by borne shareholders at company meetings and also in some articles and letters published in the financial press. Questions have also been asked in the Parliament and fear has been expressed as to the rejl nature of such payments and whether they cover some illegal gratification paid by the managements to the autditors for ulterior reasons.

In view of the publicly expressed misgivings and misunderstandings in the matter, the Council found it necessary to clarity the same and to indicate the official position in this regard. The Council, therefore, decided to publish a suit- able note in the financial press and elsewhere to counter the uninformed criticism against the auditor?.

In a note publisher) in November 1971 issue of the Journal of the Institute the Council has categorlculh stated that there is absolutely no question of any il ^gol gratification being pa.rl to the Auditors. The members of Accountancy Profession who act as Auditors are persons who are expected to and do maintain high standards of professional conduct. The payments for other services which are statutorily required to be disclosed on the face of the published accounts of a company represent perfectly legitimate payments for services rendered by the Auditors to the company which services the Company needed and from which the benefit derived by the Company and the shareholders at large is more than com- mensurate with the cost thereof.

The Council has als.0 recommended to the members that the fees paid to them should be disclosed in the Profit & Loss Account of the companies under their audit, under the following heads, in order to give the precise and correct informa- tion to the shareholders and others who read the accounts:

(1) Audit fee. (2) Fee for tax representation. (3) Fee for company law matters. (4) Fee for management services. (5) Fee for internal auditing. (6) Expenses reimbursed to auditors. (7) Other services.

(I) Wider dispersal of audit of the branches of the nationalised banks.

According to the instructions issued by the Reserve Bank of India, it is under- etood that the Reserve Bank Intends that the distribution of branch audits amongst the branch auditors should, as far as practicable, the regional wiie-spread and local.

In this connection, President along with the Vice-President and the Secretary had a meeting with Dr. R. K. Hazari, Deputy Governor, Reserve Bank of India on 4th December 1971 and had discussed the policy regarding the appointment ot auditors in the nationalised banks and their branches.

It was heartening to know from Dr. Hazarl that for the coming year the number of auditors chosen for the purpose is more than double the number which existed for the previous year. He also added that their general policy would be that the appointment of statutory auditors would be continued for a period ot 4 to 6 years and that the statutory auditors would not be required to audit more than l/3rd of the branches. He also pointed out that efforts were being made to see that the branches of the banks were audied by local auditors and that while all eflorts would be made to make the distribution as broad-bawed as possible, looking to the Importance of ensuring the quality, one had necessarily to adopt a cautious approach. Dr. Hazari clarified that apart from partnership firms even broprletory firms were now going to be allotted audit work of branches of banks.

The approach made by the Reserve Bank authorities has been quite realistic and needs to be appreciated,

(j) Future of the accountancy profession In India,

Members are aware that the Council had accepted the conclusions and the recommendations contained in the Report of the Joint Committee on the Future of the Accountancy Profession in India, under the Chairmanship of Shri G. P. Kapadla, first President of the Institute, which was submitted to the Councils at the Institute of Chartered Accountants of India and the Institute of Cost and Works Accountants of India on 26th Aufiust, iytl7 and the fact that the Govern- ment of India had been requested to implement its recommendations, including the recommendation for unification of the two Institutes.

Recently, on receiving a reference from the Government of India, the Council has reiterated that it stands by the Report of the said Joint Committee which has already been recommended to the Government for adoption and implemen- tation.

2. Research

During the year the Research Committee was actively engaged In the following research activities of the Institute:

fa) Brought out the following^ publication.

Cost Accounting Records Rules under the Companies Act, 1956 and the Com- panies in Electric Motor Industry.

(b) Completed the undernoted projects.

(i) Payment of Bonus Act—An Accountant's Study. (li) Investment Decisions—Capital Budgeting with the Aid of the Discounted Cash flow Technique,

(iii) Revision of the Statement on Treatment of Retirement Gratuity In

Accounts.

(iv) First Instalment of the note on Auditor's reliance on Internal Control, (v) Integrated System of Cost and Financial Accounts.

(c) Framed the views and fmggestiontt of the Council of the Institute that were

submitted to the Government on the subjects given below,

(i) Draft Cost Accounting Records (Aluminium) Rules, 1971. (ii) Directions of the non-banking non-financial companies by the Reserve Bank of India.

(d) Revising Studies and Statements gievn below

(i) Guide to Company Audit.

(ii) Study on "Devaluation",

(ill; Statement on Auditing Practices,

(iv) Audit of Banking Companies.

(e) Projects in hand

(1) Publication in the Handbook series of the notes issued to members for guidance by the Institute from time to time.

(ii) Hybrid System of Accounting.

(iii) Professional ResponsiDiUty as to using of other, Auditor's work anil reports and ethical issues arising out of joint audits.

(iv) Cost Accounting Redords (Vanaspati) Rules, I97X

(v) Publicising the view* of the Research Committee on the dontinttfih"c"e of auditor even after the date of the Annual General Meeting.

(vi) Objectives of Financial Statements.

(vii) Note on the use of free reserves in cases of amalgamation.

(f) Research Grant

The Council has decided to approach the Central Government for a suitable' grant for carrying put research and other academic activities of the Institute, It has also asked regional councils to approach State Governments, in their 'fe&lons for financial assistance to meet their own needs for academic-activities, libraries etc. At the same time, the Council is also thinking in terms of approaching industry for grant for specific research activities. As a first step in this direction, the- Central Board of Direct Taxes was approached for securing exemption for dona- tions given by industry to the Institute, by getting the Institute recognised under Secf-ion 39i(1) (in) of the Income-tax Act. Though a negative reply has 'Been received, efforts to get the exemption are continuing.

3. Company Law Committee

During the year the Company Law Committee has formulated the following. suggestions/representatlons/vlews and submitted the same to the Government/ Council:

(1) Representation for amendment of the Companies (Branch Audit Exemp- tion) Rules, 1961 to abolish the existing exemptipn.B Hrtd. provide only one exemption for cases of branches having a turnover of Rs. 2 lakhs or 9 per cent of the total turnover whichever is less.

(2) Suggestions for amendment to the Part II of Schedule VI to the Com- panies Act requiring disclosure about the nature of other service payments to the auditor.

(3) Views on the Notification No. G.S.R. 28-1-71-CL.V dated 9th October

1971, altering Part II to Schedule VI to the Companies Act.

(4) Views on a reference by the Government as to the treatment of de-

preciation during the period of construction of a Company.

Comp mies {Amendment) Bill, 1972

The Companies (Amendment) Bill, 1972, was introduced in the Parliament on the Hth August 1972. The Bill seeks to amend various provisions of the Com- panies Act, 1956, and some of them have far-reaching consequences on the pro- fession. Among the important provisions affecting the profession are the following:—

(a) Amendment of Section 224 to provide that a retiring auditor shall not be reappolnted without prior approval of the Central Government, if he or the firm in which he is a partner has been the auditor of the company for three consecutive financial years preceding the year in which the annual general meeting is held or ought to have been held. The object and reason assigned for this amendment is that the exist- ing practice "has resulted in concentration of audit in a few established firms of auditors and has tended to create close association between the auditors and a group of companies".

(b) Addition of new Section 224A to provide that in case of a cbmpany in which not less than twenty-five per cent of the Btfbscribed share capital is held, whether singly or in any combination, by:—

(1) a public financial lnstltutloh or a Government company or Central Government or any State Government, or

(ii) any financial or other Instituti6n established by any Provincial or State Act in whlcb a State Governirt'ent holds not less than fifty-one per cent of the suoscribed share capital, or

(iii) a nationalised bank or an insurance company carrying on general

insurance business,

the appointment of re-appointment of ati auditor shall have no elfect unless approved by the Central Government.

(c) Amendment of *Sfccti6h 233B 'to provide that if the Central Government is of opinion that sufficient number 6f cost accountants are in practice and tore available for conducting the audit of the cost accounts of any company, that Government may, by notification in the Official Gazette, dirfect th^t, on and from such date as may be specified in the notifica- tion, no CWaTtered Accountant shall conduct the audit of cost accounts of any company.

(d) Amendment of Section 2(45) to provide that only individuals shall act as 'Secretary' to a company and the Central Government shall pres- cribe the qualifications of such Secretary. By introducing a new section 383A, it is a"so proposed to provide that every company having a paid up capital of not less than Rs. 25 lakhs shall have a whole- time Secretary.

(e) Addition of new Section G19B to extend the provisions of section 619 to certain more companies by deeming them as Government com- panies.

The Bill having been referred to a Joint Committee of Parliament, a memorandum is being submitted to the Joint Committee for its con- sideration. A delegation of the Institute will also appear Delate the Joint Committee for making oral submissions.

4. Post Graduate Courses

(a) Seminars etc.

The Post-Graduate Course Committee carried out several activities for popularis- ing Management Accounting, both among members and in government, business and industry. Several programmes aimed at imparting training and education to the members in this field were organised during the year.

The details about five Seminars held upto August 1971 have already been included In the last report. The titles and dates of the Seminars are mentioned below for ready reference:

Seminar on "Trends in Regulatory Accounting" held at Jaipur on the 8th, 9th

and 10th April 1971.

Seminar on "Cost Audit" held at Calcutta on the 6th, 7th and 8th May, 1971. Seminar on "Analysis of Financial Statements" held at Srlnagar on the 19th,

20th, 21st and 22nd May, 1971.

Seminar on "Capital Investment Appraisal" held at Poona on the 29th ana 30th May, 1971.

Seminar on "Modern Trends in Auditing" held at Panaji—Goa on the 18th. 20th and 21st August, 1971.

In addition to these, an Appreciation Programme in General Management t

_ to familiarise the participants with problems involved in the functipnal areas of management, e.g. Finance, Marketing, Production and Personnel and their Inter-relationship*;

—•to familiarise the participants with modern concepts and techniques of management available for such problem solving;

—to develop an overall concept of the organisation by case study discussions involving business policy and corporate btrategy.

The registration fee for the course was fixed at Rs. 600 to cover the cost of tuition, room, board and educational material. 39 participants were registered for the course. The faculty for the course consisted of Professors B, K, Hedge, A. A. Karim, S. C. Kuchhal and G. R. Kulkarnl, all from the Indian Institute of Manage- ment, Ahmedabad

(b) Continuing Education Propramme

A unique opportunity to all members is offered under the comprehensive pro- gramme of continuous education to keep abreast of the latest advances in the field of knowledge. The Post Graduate Course Committee held three Seminars upto August 1972 as mentioned below:

(1) Seminar on "Costs for Decision Making" held at Bangalore in June 1972. (2) Seminar on "Effective Cash Management" held at Madras in July 1972, (3) Seminar on "Basic Data Processing Concepts and Techniques" heH \t

Bombay in August 1972.

(c) Scholarships

During the year under Report, scholarships of Rs. 500 each were granted to 9 members for the purchase of books. These have been paid from the funds collected by contributions as also from the funds of the Council.

(d) Examination and Training

The particulars of the number of members who appeared and were declared successful at the May and November 1971 Management Accountancy Examination (Part I of the Course) are given in Appendix IV.

At the end of the year, 30 members were engaged in practical training for Part II of the Course. In the preparation of their thesis, they are being guided by senior executives and accountants in Industry.

5. Expert Advisory Committee

From 1st April, 1971 to 31st March, 1972 three queries were received of which one query has been replied within the year. The remaining two queries are under active consideration of the Committee. In addition, opinions have been rendered, during this year, on two more pending queries that had been received prior to 1st April, 1971.

6. Employment Committee

The number of members on the Employment Register on 31st March 1972 was 108 as against 152 on 31st March, 1971. Since the number of candidates who had Rot themselves enrolled on the Employment Register has gone down, there Is Indication that the employment situation had Improved.

An announcement was published in the Journal of the Institute for December 1971 regarding better opportunities for employment of Chartered Accountants '/tiered by the State Bank. Needless to say, the members would avail of the better npportunjtles offered as and when vacancies were notified.

Another announcement was published in the Journal of the Institute for January 1972 calling for bio-data from members for being forwarded to the Industrial Development Bank of India which was engaged in the preparation of a panel of experts who would act as executives of industrial concerns assisted by them. More than 200 applications were received from members and these were forwarded to the Industrial Devcolpment Bank of India for further action.

7. Taxation

A memorandum on Finance (No 2) Bill, 1071 was submitted to the Minister for Finance in July 1971.

A pre-budget memorandum was submitted to the Minister iov Finance in March 1972.

A memorandum was submitted to the Government of India and to the Select Committee on the Taxation Laws (Amendment) Bill, 1971, In November 1971. Oral evidence was also tendered by the representatives of the Institute in December, 1971.

A memorandum was submitted to the Select Committee on the Central Sales Tax (Amendment) Bill, 1971 in November 1971. Oral evidence was also tendered by the representatives of the Institute in January 1972.

The Fourth All India Seminar on Taxation was held at New Delhi on the 7th and 8th April 1972. The Seminar, which was attended by more than 250 dele- gates from all over the country, was inaugurated by Hon'ble Shri Y. B. Chavan, Minister for Finance, Government of India.

The Seminar discussed, at three technical sessions, papers contributed by 18 paper-writers. The three technical sessions were presided over D3' Shri K. E- Johnson and Shri H. A. Shah, Members, Central Board of Direct Taxes, and Shri R. D, Shah, Chairman, Central Board uf Direct Taxes.

Shri Sukumar Bhattacharya and Shri P. M. Narievala were the Commentators in the second and third technical sessions. Shri K. P. Bhargava, Commentator for the first technical session, could not he present under unavoidable circumstances.

Shri I, P, Gupta, Joint Secretary to the Government of India In the Ministry of Finance, was a guest speaker in the first technical session.

The President (Shri A. B. Tandan) has been nominated by the Government (Central Board of Direct Taxes) on a Study Group formed by it for examining the existing forms of the returns of income and net wealth and for making recom- mendations regarding the modifications necessary in those forms.

The Council has submitted to the Government its views on the various recom- mendations contained in the Direct Taxes Enquiry Committee (The Wanchoo Committee).

8. Unjustifiable removal of auditors

A case of an alleged unjustifiable removal of auditors was reported to the Council where the existing auditors were removed and new auditors were appointed, as per resolution passed at an adjourned Annual General Meeting. Since under the general law of meetings no new business could be taken up at the adjourned Annual General Meeting and moreover since it was specifically mentioned in the Articles of the company that such business could not be adopted at the adjourned Annual General Meeting It was held that the appointment of the new auditors wis irregular and invalid. The parties were informed accordingly.

Another case was reported where the appointment of a firm of Chartered Accountants as joint auditors, along with the existing auditors was made without special notice being given by the company under Section 225(1) of the Companies Act. It was held that the appointment was valid and the parties were informed accordingly.

9. University Liaison Committee

For some time past the University Liaison Committee has been considering how best it could help the members who are associated with the Universities and Colleges as Professors and lecturers. In order to assess the number of Chartered Accountants engaged in teaching jobs, a survey was made by the Committee. As a result of this survey it was revealed that only a few universities were utilising the services of the Chartered Accountants. The Committee was deeply concerned to find that a large number of Universities does not consider the membership of the Institute as adequate qualification for teaching? students at graduate and post graduate levels. The Committee took up the matter with the Universities and as a result of its continuous efforts, certain Universities namely, Gujarat University, Bombay University, Punjabi University, Karnatak University and Alifiarh University, 4ave agreed to recognise membership of the Institute as adequate qualification for

purpoaa Of teaching of the student In Universities and Colleges afflicted with them at graduate and post-graduate levels. The Committee Is continuing its efforts lor recognition of the membership of the Institute by the Universities Which have not yet taken any decision in the matter.

Recognition of membership for Ph.D courses.

Apart from recognition of the membership of the Institute by several Universi- ties for teaching graduate and post-graduate students, the following Universities- have also agreed to consider the membership of the Institute as equivalent to M.Com. Degree ior purpose of registration for Ph.D course.

Conditions

Universities

0)

Ci)

i. BsnairSs tTmlu U.i veri ty,

Vilnius i.

Chartered Accountants hotdftig'a¹ (graduate degree of a recognised University Are conaide.rfe'd as"tjquiviisht to M. Com. degree of the 3a'd University for putpojesof enrolment as Ph. D. research scholars in Commerce.

Udaipur University, Uaalpur

A graduate who has parsed tl e Intermediate ftrSfifrflai Examinations of the Iiyt tutc will beconsWeSed to have passed an exa.n nation equivalent to the Master of Commerce in Accountancy and S^tlatits of Udajpur Un versity and is considered 4t for inr61- ment as Ph. D. research scholar m Accountancy and Statistics in the Faculty of Commerce.

3. University of Panjsb,Chuudtgarh Members of the IrtsTitutc Who are crttdTitrtcs and aro engaged wyHy or tSattly in Veacmwg In a collent afflllaned to that utiivers'ity or a teacmng department, of that University are eligible for enrolment as. research scholars of the University.

4. Bombay University, Bombay

A member holding the B.Com. degree of that "Univer- sity or of any other .University recojfniscd a& equiva- lent thereto, is eligible for enrolment as a student for the Ph. D. degree in Commerce of the University.

5. Kerala University, Trivaridrum. Chartered Accountants are eligible for registration for Ph. D. on Management studies under the Faculty of Commerce of the University.

6. Punjabi Un vcrsityj Patiala.

Chartered Accountants are permitted io do research leading to M. Ljtt./Ph. D. degree in the faculty of Business Administration and Commerce as ftlso in subjects all ed thereto in other faculties provided they fulfil other rqeuirementa of the ordinances t elating to M.Litt./Ph.D.degree oft he University.

7. Sardar Patel University, Vallabh

Vidyanagar, (Gujarat).

Chartered Accountants are eligible for admission to Ph. D. degree course in Commerce faculty of the University provided such aendidates hold basic degree in Commerce.

8. Vikram University, Ujjam.

Chartered Accountants holding a graduate degree are considered as equivalent to M. Com. degree of the University for purposes of registrat'on for Ph.D. in the Mmvcrsity.

9. AUgarh Muslim University, Ali-

garh.

The fellows of the Institute of Charterpd AccQUqWnt* (F.C.A.) with B.Com. degree ordinarily havtns ttrgt or high second class be traeted eligible for admT"9i0ii to the degree of Doctor of Philosophy in Cormntrpe subject to their qualifying the requisite test conducted by the Department to select the cdndid"tes.

10. The companies amendment bills by Sliri Chinta'taanI PanigTabI and Shri 8. C.

Samanta—memoranda to Government.

In so far as the Bill Of Shri Chlnfamanl Pahigrahl is concerned, It wdk intro- duced before the _ast Parliament and a memorandum thereon was submitted to Government, as mentioned in the last report. This Bill, however, lapsed arid Whs re-introduced before the present Parliament and a supplementary memorandum on the Bill has been submitted to Government.

It may be recalled that this Bill 'inter alik' se^ks to prdvide th'at no person shall hold office at the same time as auditor In more than five cotnpanies, in which not more than two, if any, shall be public companies.

It was explained in the supplementary memorandum, submitted that while the Council agrees that all efforts should be directed to achieve an equitable grow of the profession, th,e means suggested hy the author to achieve this end are lot reasonable. The attention of the Government was di"bwn to the self-regulatory measures passed "by the Council and it was urged that these being the authoritative expression of the desire of the members for self-fulfilment artd professional development, it would not be reasonable to rush ih with &ny legislation so soon after the Council itself had passed the said resolution.

The second Bill, namely, that of Shri S. C. Samanta. 'Inter alia' sekes to pro- _vlde that the auditors shall be only "selected" by the companies and that the selection Will have to be approved by the Central Government.

In the MetfioxandUm submitted on this Bill, it w$s pointed out to Government that in the absence of any statistical or other evidence to Support the contention that accounts of companies are not being properly audited, it will not be fair to cast any doubt or aspersions on the professional competence of the members of a learned and independent profession. An offer was made tp Government that if they had any information in their possession In this behalf, the same should be forwarded to the Council so that it could take appropriate action under the pro- visions of the Chartered Accountants Act. It was explained that the proposal would undermine the independence of auditors by making them subservient to a Government appointing authority and a suggestion was made that if the aim was to ensure independence of auditors, it could be better achieved by providing in the Conipanles Act that the auditors shall be appointed for a term of five years. It was pointed out that in France the auditors were being appointed for a term of six years to ensure their Independence. The other shortcoming and difficulties inherent in the proposal were pointed out and it was urged that the right of the shareholders, who are really the owners of the companies, to appoint auditors of their own choice, should not be taken away.

11. Journal of the institute "The Chartered Accountant"

In the year under report, many steps were taken to improve the quality and utility of the Journal, A Special Number of the Journal on the theme of "New Strategy for Economic Development" was published in June 1971. Several new monthly features have been added to the Journal. The Journal itself has been given a new lobk. Vigorous efforts have been made to Increase the advertise- ments. The average net circulation has Increased from 12218 copies per month io 15201 copies.

12. Publications

The following publications have been printed during the period under report:—

(1) Code of Conduct (revised edition).

(2) Proceedings of All India Conference of Chartered Accountants—1969.

/3) Cost Accounting Records Rules under the Companies Act, 1958, and companies in electrical motor Industry.

IV. OTHEE MATTERS

1. Review Committee

At its meeting held in March 1972, the Council appointed a Review Committee lor making a detailed examination of the working of the Institute and the pro- fessional problems. The Committee consists of the following members:—

(1) Shri A. B. Tandan, Chairman. (2) Shrl R. K. Khanna, Vice-Chairman. (3) Shri S. K. Gupta, Member. (4) Shri N. C. Krishnan, Member. (5) Shrl B. S. Mehta, Member.

The terms of reference of the Committee are as under:—

"1. (a) Improvement in the Secretariat—its internal systems, budgeting, appraisal, communication, information flow and the general quality of the service to the Council and its committees and the members and students of the Institute.

(b) Improvement in the operations of the Council—Its internal deliberative and decision-making processes with a view to providing the profession with dynamism and growth.

2. Suggesting ways and means of removing the causes of the existing

dissatisfaction, especially among the younger members.

3. Improving the means of communication between the Council on the one hand and the members and students of the Institute on the other, for a better understanding of the problems facing the profession.

4. Improvement in the knowledge-level and academic Inputs and their up- dating, so that the chartered accountant of tomorrow is fullv equipped to meet the growing needs of the Industrial and commercial enter- prises as well as the State and the Society,"

As mentioned elsewhere in this Report, the Committee has started functioning and a questionnaires to all members of the Institute has been issued through the Journal in so far as item No. 2 of the terms of reference is concerned. The Com- mittee is also looking into the other matters referred to it.

2. The Chartered Accountants Act and Regulations

(a) The Council has appointed a Codification Committee, under the Chairman- ship of Shri A. B. Tandon, President, for a review of the provisions of the Chartered Accountants Act, 1949, and the Chartered Accountants Regulations, 1964, for the purpose of suggesting amendments therein in light of the experience and diffi- culties encountered.

(b) A sugftestion has been made to the Central Government that Section 5(3) of the Chartered Accountants Act should be amended to provide that fellowship should also be conferred on a member who completes a post-graduate course con- ducted by the Institute.

(c) The Council has approved a number of changes Jn the election regulations which are in the process of being introduced. Some of the more important ones in which members may be interested are:—

(1) The list of voters shall be prepared as on the 1st April of the year of election. (At present such list is prepared on a fixed date in the month of October or November in the year previous to the year of election).

(2) The eligibility to stand for to vote in the election would not be linked up with the payment of fees and everyone whose name appears in the list of voters shall be eligible, unless his name is removed from the Register before the date of election.

(3) The addresses of the polling booths in the case of city having more than one booth located in different parts of tho city, shall be published in the Journal of the Institute two or three months before the publica- tion of the list of voters, alongwith a perforated card on which numbers could indicate their preference for the polling booth before hand. In addition, members would also be allowed 15 days' lime, after publication of the list of voters, to ask for a change in the polling booth within the city.

(d) Other changes to be introduced in the Regulations include the amendments to give ellect to the recommendations of the Special Committee on Education and Training which was appointed by the Council in September 1968 and whose report was accepted by the Council, with minor changes. The salient features of these recommendations were mentioned in the last report.

(e) Regulation 13G was amended to extend the jurisdiction of a branch of a Regional Council from a radius of 10 miles to a radius: of 50 miles.

(f) Regulation 29 is being amended to provide that the main occupation of a member wishing to train articled clerk/s shall be practice not only at the time of taking the apprentice but also during each of the qualifying years.

3. History of the Accountancy Profession in India

Vigorous efforts are continued to be made to bring out the History of the Accountancy Profession in India as early as possible. The History is expected to be ready by end of 1072.

4. Reciprocal recognition of membership

As already mentioned in the last report, the question of recognition ol member- ship of the Institute, on a reciprocal basis, was taken up with a number of over- seas accountancy bodies. The matter is being vigorously pursued and a; FOon as an, r<";i.iite conclusion ia reached w;lh any one of the organisations, ,fn an- nouncement will be made in our Journal.

In addition to the approach made to the American Institute of Certified Public Accountants, some of the Slate Boards in U.S A, have also been approached for a reciprocal recognition ol membership.

5. Offer of help to Bangla De"h

The Council at ^ts meeting held in March 1972 decided to make its contribu- tion in the National reconstruction of the newly born independent nation of Bangla Desh, Being convinced of the relevance of public accountability in any democracy engaged in the process of economic development, the Council felt 4hat establishment and development ot the accountancy profession in an organised manner in Bangla Desh was an area In which the Council could make a tangible contribution. The Council has therefore oilered to give all possible help to Bangla Desh in case its government derides to establish an autonomous Institute of Char- tered Accountants and approaches our Government for such assistance.

6.Appeal for donations to Banela Desh Belief Fund and National Defence Fund

In response to the appeal of the President, we received a total sum of Rs. 571 towards, contributions to Bangla Desh Relief Fund and a sum of Rs. 13,742 towards National Defence Fund.

7. Library

During the year 635 books were added to the Central Council Library at New Delhi. Increasing use of the Library was made by members and students as would be clear from the following figures.

Year

Attendance

No. of books

Consulted

1967-68 .

7800

1 9 6 8 - 69 . . ..

8300

1 0 6 9 - 70 .

9000

95OO 1 9 7 0 - 71 •

1 9 7 1 - 72 . . . .

I02OO

4810 4990 5200 5500 5900

In addjtjon books are being sent from the Central Council Library at NPW Delhi, fey post to members who are preparing for the Post Graduate Course, and residing outside Delhi.

The Council sanctioned a total amount of Rs. 42,000 for the purchase of books for the Regional Council libraries. The number of books at the central library and regional centres are given below:—

Central Library, New Delhi

9727

Western India Regional Council

4008

Southern India Regional Council

442 S

Eastern India Regional Council

3876

8. Nominees of the Institute on other bodies

The Institute is represented on the following outside bodies by its members whose names are given against the names of the organisations:

Name of tlie representative

Name of the Body

(2)

( I) The General Council of the Institute of Applied Man- power Research

Shri A. B. Tandan

The National Productivity Council • Shri Bajisi S- Mchta ( 2)

The All India Board of Technical Studies in Commerce Shri P. B. Vijayaraghavan.

(3)

(4) The All India Board of Technical Studies in (Manage- ment. . . . . . . . ..

Shri P. K. Malik

(5) Board of Assessment of the All India Coun ilfor Tech- nical Education for advising Central and State Govern- ments on recognition of technical and professional q u a l i f i c a t i o ns . . . . . . ..

Shri G. Saha

(6) Study G r o up for Commercial subjects—Directorate GencraJ of Employment and Training.

Shri S. G. Argadc

(7) Study GrQUp for examining the ex'sting forn*s of the returns of income and r ri wealth. . . ..

Shri A.[B.Tandan.

(8) Standing'Committee on Commerce of the Indian Council of SociaTScience Research .

. ..

Shri H. M. Damania

(9) Working G r o up 01 managerial persoi nel for formulating the flve-ycar plan

Shri H. B. Dhondy

(10)

Inter-University Board of India and Ceylon—Committee for assisting 'fi the preparation of a code of financial procedure for Universities. . . . ..

Shri B. R. Malhotra

AT

Shri Mahesh Datta

9. The Institute of Company Secretaries of India

(1) A representation was made to the Institute of Company Secretaries of India agains_t the withdrawal of certain concessions which were earlier available to -membeio of our Institute or those who have passed our examinations. It waa urged that—

(a) students who have passed our Intermediate Examination should be given exemption from their Preliminary Examination.

(to Members of our Institute/persons who have passed our Final Examina- tion should be completely exempted from the Preliminary and Inter- mediate Examinations.

(c) Members of the Institute/persons who have passed our Final Examlia- tion should also be exempted from the papers on Advanced Ac- countancy, Mercantile Law, Economics and Company Law & MHTP Act of the Final Examination.

(d) The provisions which were earlier contained in Rule 6 regarding enrol- ment of Chartered Accountants/persons who have passed our Final Examination as members of the Company Secretaries Institute on their satisfying certain prescribed criteria, should be revived.

A proposal has been received from the Institute of Company Secretaries for a xeciprocal recognition of membership or In the alternative for granting recrlprocal •exemptions from certain papers of the examinations of the two Institutes. While the Council is not In favour of a reciprocal recognition of membership as such the question whether there should be any exemption from some of the examination papers is being studied.

(2) The Institute of Company Secretaries of India issued a notice in August 1971 inviting applications till 31st December 1971 'inter-alia' from Chartered Accountants who had "on the date of application" been holding a responsible position in the Secretarial Department of a public limited company/statutory corporation for a continuous period of five years or as Company Secretary for a period of three years, to the satisfaction of the Council of that Institute. A repre- sentation was made to them that the experience of hose Chartered Accountants who have held the requisite positions in the past for the prescribed period should not be Ignored merely because, on the date of applications they were not holding such positions. Since the rep'y received from the Institute of Company Secre- taries was not very helpful, the matter has been taken up with Department of Company Affairs.

(3) The Council has received several representations from members of the Institute about the manner In which their applications for membership of the Institute of Company Secretaries, submitted under the above notices have been rejected without giving adequate consideration to their experience. In some of these cases, members affected are working in private limited companies and their -applications appear to have been rejected on the technicality that the notice refers to experience in "Public Limited Companies". There have t en other cases also where the experience of members working even in public limited companies and occupying positions of the requisite standard have been rejected without assign- ing any reasons.

In respect of all these nvitt='s, the issue has been taken up with the Depart- ment of Company Affairs.

10. T.ie Chartered Accountants' Rene,vQlent Fund

During the year the number of members lncr'_Msed from 169 to 175 and B sjm •of Rs. 6,900 was disbursed The balance to the credit of the Fund at end of the year stood at Rs. 60,763 as against Rs. 66,835 at the end of the previous year.

The Chairman has addressed suitable letters to the various organisations in which Chartered Accountants had served for 10 years or more requesting them to pay the life membership fee in respect of the Chartered Accountants employees duly apprising them of the benefits arising therefrom. It Is hoped that this appeal will bring good results.

11. S. Vaidyanath Alyar Memorial Fund

Two scholarships of Rs. 50 each tenable for one year were granted to the articled clerks serving in the Central India Region. In addition, two merit scholarships also of Rs. 50 each tenable for one year were granted to students who had secured one of the five positions in the Intermediate Examination held in May 1971 but were not eligible to the scholarships under the merit and loan •scholarship scheme and another two scholarships to those who secured similar positions in the Intermediate Examination held in November 1(571,

The number of members of the Fund Increased during the year from 33 to 35. At the end of the year the balance to the credit of the Fund was Rs. 23,603 as against Ra. 23,745 at the end of the previous year. The Chairman has addressed letters to various Industrial organisations in which the students were undergoing industrial training with a request to provide financial aid to the Fund for the purpose of p lying scholarship to them for the remaining period of their training by depositing with the Fund amounts equivalent to Rs. 100 multiplied by the number of students multiplied by the number of months remaining for the comple- tion of their training. These industrial organisations have also been informed by the Chairman that this scheme would be subject to the undertaking given by the students undergoing industrial training to serve these organisations for a minimum period of two years after completion of their training on a reasonable grade of pay admissible to the category In which they would bo employed. It is hi oed that the various industrial organisations will cooperate in malting the scheme M i-cessfui.

V. CONFERENCES

1. Tenth International Congress of Accountants

As mentioned In the earlier reports, the Council Is sending a delegation for attending the Tenth International Congress of Accountants to be held in Sydney. Australia, from 16th to 20th October 1972. The Council had selected 7" members to form the delegation io the Congress but the Government of India have not agreed to release lh" forp>?n exchange for remitting the registration fees or lor meeting the expenses ol t: ivcl and stay in Australia for more than four delegates.

2. Eleventh International Congress of Accountants

An invitation has been extended jointly with the Institute of Cost and Works ACL' intants of India for the Eleventh International Congress, which is scheduled to \ held in 1<>77, to meet in India. If the invitation is accepted and there are strons chances for its acceptance, this will be the first occasion that an Inter- national Congress of Ac -luntants will be meeting in our country. It is hoped that the acceptance of the in itatlon will make a significant contribution to the develop- ment of the accounting profession not only In our country but also In the Asiatic Sn and will undoubtedly give a fillip to the development and progress of accounting thought and concept in this part of the world.

3. Seventh Conference of Asian and Pacific Accountants

The Seventh Conference of Asian and Pacific Accountants will be held in November 1973 in Bangkok (Thailand) and is being organised by the Institute of Ce-Ufled Accountants and Auditors of Thailand. The objectives of the conference in bringing together official representatives and observers of the various account- ing professional bodiet m the area are to discuss:

(a) means of developing their services to their respective members and their respective communities in accountancy education including t te continuing education for professional men in accounting research, in ethical professional conduct and related activities;

(b) mean- of deveioning professional standards, practices and techniques at

national anri J 'ternational levels.

ThP mimcil has accepted the Invitation of the organizers to send a delegation

w S s s i! suss-.o-JSaSrs ££^rr"rss expense. 4 All India Coherence of Chartered Accountants

The Council has decided to hold the next All India Conference of Chartered

Accountants at Bombay from 25th to 28th January, 1973.

A Conference Committee consisting of the present President as the•Chairman

India Regional Council as its members, has been appointed.

An announcement regarding the conference has been made in the Journal of

the Institute.

VI. REGIONAL COUNCILS AND THEIR BRANCHES

Regional Councils

Change in Election Rules

The Directions governing the branches of regional councils have been amended to provide that the election of the members of the Managing Committee shall be conducted by ballot In place of show of hands.

Regional Councils continued to function In five Regional Constituencies viz. Western (Bombay), Southern (Madras), Eastern (Calcutta), Central (Kanpur), and Northern (Delhi). The Regional Councils were active and arranged several con- ferences, seminars, lectures, Study Circle meetings etc.

Branches of the Regional Councils

A new Branch of the Southern India Regional Council at Trivandrum has been set up In addition to the above 5 existing branches of the Western India Regional Council viz. Ahmedabad, Baroda, Poona, Nagpur and Surat; 9 of the Southern India Regional Council at Bangalore, Coimbatore, Ernakulam, Hyderabad, Madurai Mangalore, Salem, Tiruchirapa.li and Vijayawada and 3 of Central India Regional Council viz. Indore, Jaipur and Jamshedpur, continued to function.

VII. MEMBERS

1. Membership changes

The number of members of the Institute on 31st March 1972 was 12202, an increase of 975 since 31st March 1971. During the year under report 360 Associ- ates were enrolled as Fellows as compared to 288 In the previous year. A table showing the number of members on 31st March 1972 compared to the members on Hist March 1971 is given as appendix V.

3. List of Members

The list of Members as on 1st April 1972 has been published and copies have been supplied to members who asked for the same.

The postal zone of numbers have also been published in the list after the addresses wherever the information was available.

3. Efforts to enrol more associates

The President had addressed individual letters to all those whohaye qualified for n£mb-rship but have not enrolled themselves as members highlighting the activities which have been or are being undertaken by the Institute for the benefit of the members In response to the said communication, 178 persons have got themselves enrolled as associate members of the Institute.

4. Enrolling fellow members

All members in industry who had not become fellows although they are ™ t i ^ d t d oSo were approached by Council members and the Chairmen of the Regional CouncTs To get themselves enrolled as fellow members. In response the K l fi members L ve so far got themselves enrolled as fellow members.

5. Permission to members to be enira"ed as deeping partners In family business

concerns

Family.

Clause (4) of Part I of the First Schedule to the Chartered Accountants Act provides that a chartered accountant in practice shall be deemed to be guilty of professional misconduct, if he "enters into partnership with any person other Irian a chartered accountant in practice or a person resident without India who but for his residence abroad would be entitled to be registered as a member und^r clause fv) of sub-section (1; of section 4 or whose qualifications are recognised by the Central Government or the Council lor the purpose of permitting such partnerships, provided that the chartered accountant shares in the fees or profits of the business of the partnership both within and without India".

Some time back, a question was raised whether in the face of provisions of clause (4) above, a member in practice could be permitted to be a sleeping partner in a business concern in which non-chartered accountants were also partners. Legal opinion on the question was obtained and we were advised that there is a complete and unequivocal prohibition under clause (4) against any type of partner- ship with non-chartered accountants, whether it Is professional or otherwise, and therefore a chartered accountant in practice cannot enter into partnership of any kind and under any circumstances, with any other person except with ar.otner chartered accountant practising the profession.

The Council thereupon requested the Government of India to examine whether the above interpretation was the only possible interpretation and if so, clause (4) may be amended suitably to clarify that it applies to practice of the profession of accountancy, so that members could continue to be permitted to be sleeping partners in family business concerns.

The Government of India have informed that they concur with the legal advice given to us. Efforts to s;et the Government to agree to amend the clause (4) as above are continuing. However, since there Is a possibility that the Government of India may not agree to the request for the amendment, all members who have been permitted to be sleeping partners In business concerns in the past have been informed that in the event of the Government not agreeing in the near future to the amendment as requested, they should be prepared to dissociate themselves from the business concern latest by the 30th September, 1972.

8, Disciplinary action

Details of the finding of the Council in the cases referred by it for enquiry to the Disciplinary Committee under Regulation 11(8) (i), since the last report, is given in Appendix VI.

7. Professional Communication

The following note on the subject was published in the Journal for May 1971:

"There appears to be a misconception that the communication with the previous Auditor was required only to ascertain whether he had any objection to a new Auditor accepting the work. A large majority of the members does not seem to recognise that the communication was required for the protection of the new-comer as well In order to remove this misconception the guide-lines given by the Council in the "Code of Conduct" In this regard are reproduced below for the information of members:

"It must be pointed out that professional courtesy alone is not the maior reason for requiring a member to communicate with the existing accountant who is a member of the Institute or a certified auditor, The underlying objective is that the member may have an oppor- tunity to know the reasons for the change in order to be able to safeguard his own interest, the legitimate interest of the public and the independence of the existing accountant. It is not intended, in any way, to prevent or obstruct the change. When making the enquiry from the retiring auditor, the one proposed to be appointed or already appointed should primarily find out whether there Is any professional reason wfiy he should not accept the appointment."

It has also been made clear in the "Code of Conduct" that in the opinion if the Council It would be a healthy tradition if the practice of communicating to the member who had done the work previously is followed in every case where a

Chartered Accountant Is required to give a certificate on a verification of the books of accounts as well as in cases where he is appointed as a Liquidator, Trustee or Receiver and his predecessor was a Chartered Accountant.

8. Appointment of Joint Auditors—need for communication

The fol'owing note on the subject was published in the Journal for February 1972:

"The question has been raised of whether in the case of appointment of Joint Auditors where a new auditor has been appointed alongwith the one who had held the position as auditor previously it is necessary for the new auditor to communicate with the latter in writing and whether by not doing so the provision of clause (8) of Part I of the First Schedule to the Chartered Accountants Act, 1949, would be infringed.

It is notified for the guidance of the members that as a matter of professional courtesy and professional obligation it would be a requirement under Clause (8) of Part I of the First Schedule, for the new auditor ap- pointed to act jointly with the earlier auditor, to communicate with such earlier auditor."

D. Lapel Button and Tie-Pin for members

The Council at its meeting held in March 1072, has accepted the proposal for the introduction of a Lapel Button and Tie Pin to be used by the members of the Institute, These will be supplied to members on payment.

VIII. THE ANNUAL AWARD FOR THE BEST PRESENTED ACCOUNTS FOR THE YEAR ENDED 31ST MARCH. 1972.

During the year under report, 12'J entries were received for t^e competition for the best presented accounts.

The following awards were made:—

Institute's Shield for the best presented accounts during the year 1969-70.

Glaxo Laboratories (India) Limited, for its annual report and accounts for the year ended 30th June 1989.

Institute's Plaques for highly commended accounts.

Indian Telephone Industries Ltd., for the year ended 31st March 1970. Kesoram Industries and Cotton Mills Ltd , for the year ended 31st March 1970.

State Bank of India for the year ended 31st December, 1970.

IX. ARTICLED AND AUDIT CLERKS

1. The number of articled and audit e'erks registered during the year, com- pared to those registered in the preceding year are given:

Total No. of

1971-72 1970-71 Students

2751 1275

Art cled clerks Audit clerks

2851 5602 1101 2376

4026

3952 7978

2. Amendments to implement the recommendations of the Special Committee on

Education and Training

Amendments in the Chartered Accountants Regulations to implement the lecom- mendations of the Special Committee on Education and Training were intended to be brought into force from 1st of July 1972, This date has passeel but the

approval of the Central Government has not been received. Therefore, an Pn- nouncement was made in June 1972 issue of "The Chartered Accountant" that these will be brought into force as and when the Government approval ia received, and that before the changes are actually introduced, sufficient advance notice will be given to all concerned through the columns of "The Chartered Accountant"

3. Maintenance of list of vacancies of articled clerks

The Council has prepared a list of vacancies of articled clerks available with the members of the Institute all over the country. This list contains the names of the members of the Institute with their full postal addresses town-wise and region- wise and also the date or dates on which the vacancies would arise. Students desirous of taking up the course may refer to the list at the headquarters of the Institute at Delhi and also at the offices of the Regional Councils at Bombay, Madras, Calcutta, Kanpur and also at branch offices of the Regional Councils,

The list has also been sent to all important Commerce Colleges throughout the- country to help the students Community as a whole.

4. Gazetted holidays to articled and audit clerks

On persistant demand from the audit and articled clerks for a specific direction on the point whether they are entitled to avail Gazetted holidays, the Council has decided that the Chartered Accountants training audit and articled clerks will observe all Central Government Gazetted holidays in their establishments with a view to making these holidays available to audit and articled clerks working under them. The Chartered Accountants may at their discretion, observe any other holiday in substitution of a Gazetted holiday, to suit their convenience, in such a manner that the number of holidays remains the same as announced by/ the Central Government.

5. Leave during- examination days

The Council has also decided that the articled and audit clerks appearing In- the examinations of the Institute shall not be treated as on leave during the cays of their examinations.

6 Main occupation of the members In the aualifylnff years of practice for tralnina

audit and articled clerks

The Council had taken a decision some years, back that the main occupation of a member wishing to train an articled clerk should be the practice not only at. the fmfe of taking an audit or articled clerk but also in each of the W*W%1 years of his practice. However, in carrying out the amendment.In^Regulation 29v this purpose was not clearly brought out. The Council has now decided to suitably amend the regulation to remove the existing ambiguity,

7. Hostels for students

Tt hai already been reported that an Educational Trust for providing hostel facilities to students has been set up by the Western India Chartered Accountants Students' Association.

The objects and activities of the Students' Associations have been enlarged to include the function of constructing hostels for the students and raising funds for this purpose by donations from members, students and others, through such means as mSdit be approved by the Council, by an amendment in the Chartered Accountants Students Associations Rules.

With this amendment, it is hoped that construction activities of hostels in all

regions will gain a momentum,

⁸" t t X ?^ the y%^1^*"u^r&^& the Intermediate Course as against 3451 ,™ " " Lv_t f E,i n st 2147 i" the previous lamination 1230 ^ f ^ ^ Z T c o ^S tuition* during the year was S71j> Fo^JSteZf^C^t ^ V ^ to 2773 In the previoua ^ .. ^ 21fl8

-and 2136 students completed tuition for Group I and Group II for the Final Course

(b) Service to students.—The Coaching Baord has been trying to have a 'fe°d back on Its work. In this pursuit, all opportunities are taken to obtain ihe views of students as well as part-time examinees. One-dpy seminars of part-time examiners were held between June and September 1971 a¹ Bombay Madras Calcutta and Delm Out of these quite a few significant suggestions e g ' organlsa-' tion of study group of students, attachment of a particular student to a particular examiner In respect of one subject, etc., emerged and tncie are eceiving the attention of the Board. A study group In Taxation iq already fanctiomni; in ^Madras.

The Board decided at its meeting h-Jd in March 1972 to hnve 2 survey among the students to ascertain tieir view point in respect of the study maLeria and the test papers. This is already being conducted. The Board has also decided that as an experimental measure at five places in the country, a member of the Institute should be requested to keep himself free for a full day for meeting students and removing their academic difficulties.

(c) Study Material.—Improvement of the study material has been the con- stant e ideavour of the Board: It is being constantly brought up to date. A recent change brought about is that a large number of 'objective' type of questions together with very brief answers are given at the end of study papers. ThQse are intended to enable the student to ascertain for himself whether or not he has grasped the subject correctly.

At present, the Board is engaged in the preparation of study materiel that "will be required for the new syllabi which are likely to be introduced shortly,

(d) Students' Libraries.—During the year, the Board sanctioned the set'ing up 'Of a students' library at Trichur, thus bringing the total number of such libraries to 24, including those at the Regional Headquarters. The Board is aware that the students' libraries at various places have to be strengthened to meet the require- ments of the new syllabus as recommended by the Special Committee and accepted "by the Council.

Ce) Revision Classen —These continue to be popular and arc being held at 9 centres in addition to the three Regional headquarters. At Madras, fie Intensified "Cours? continues to be very popular.

(D Other jarility provided to students.—The facilities referred to m the previous "report were continued in 1971-72 also,

These are:

(a) A short course in English;

(b) Incentives for contribution to students' page In the Institute's Journal,

(c) Declamation Contests carrying a first prize of Rs. 1Q0 and a second prize of Rs 50 (in books) at Regional headquarters and Branches.

(g) Publications.—The Coaching Board Is uptodate in respect of Volumes of Suggested Answers to the questions set at the Institute's Examinations. The volumes in respect of November 1971 examinations have already been published snd are on sale.

(h) Merit and Loan Scholarships.—During the period under review, ten Merit •and nineteen Loan Scholarships have been awarded.

The comulative total of scholarships awarded till 31st March 1972 is as fo lows:

M rit Scholarships 60

Loan Scholarships 97

The recipients of the Loan Scholarships have started returning the amount of Loan in prescribed Instalments. So far 10 students have repaid the loan in entirety while another 12 students have started repaying the requisite Instalments.

(i) Technical Staff.—At present, the Board has three Assistant Directors of Studies, four Deputy Directors of Studies In addition to the Director of Studies During the year, Shn Kamal Gupta joined service as Deputy Director of Studies.

0. Students Associations and their Branches

(a) The Students Associations and their Branches continued to be very active during the year and held a number of impressive programmes. It was in this year that the 3rd All India Students Conference was held at Madras under the aegis of the Southern India Chartered Accountants Students Association.

(b) Directive of the Central Council:

The Council has issued a directive to a.l Students' Associations and their Branches that in future, copies of the notice sent for every meeting of the Manag- ing Committee to its members, the agenda for the meeting, the minutes of the meeting as also of the notice, agenda and minutes of their general body meetings should be sent, simultaneously with their issuance, to the Central Council and to concerned Regional Council.

(c) Branch of the Central India Chartered Accountants Studentn' Association at

Indore:

The Council has decided to set up a Branch of the Central India Chartered Accountants Students' Association at Indore,

(d) Subscription for Membership) of the Students' Association:

With a view to providing more funds to the Students' Associations and their Branches to increase their activities the rate of subscription has been increased from Rs. 5 to Rs. 10 with effect from .1st April 1971.

(e) Change in the Election Rules:

The Directions governing the Branches of the Students Associations had been amended to provide that the election of the members of the Managing Committee shall be he'd by ballot in place of show of hands.

X. EXAMINATIONS

1. Examinations 1971

The examinations were held as usual in May and November 1971 at various centres all over India. New examination centres were opened at Jodhpur and Ra|kot. The statistics regarding the number of candidates who appeared and those declared successful are given in Appendix VIII.

2. Prizes and Certificates of Merit

Names of the candidates who were awarded Prizes and Certificates of Merit in these examinations are included in Appendix IX.

XI. OBITUARY

1. Death of Council Members

The Council is sorry to record the sad demise of three of its past members, namely:

(1) Mr. F. A. Cole on 27th December, 1971. (2) Shrl R. N. Rajam Aiyar on 21st February, 1972. (3) Shri F. H. Vallibhoy on 2nd March, 1972.

Condolence resolutions were passed bv the Council and sent to the bereaved' families.

2. Death of members

The Council records witU regret the sad demise, during the year, of the members whose names are given in Appendix XI.

XII. APPRECIATION

The Council wishes to place on record its grateful thanks to the Government for its continued support and asiistanee.

The Council also wishes to place on record Its appreciation of the work done by the officers and stair during the year under report.

(Sd.) BALAKRISHNAN,

(Sd.) R. K. KHANNA, Secretary.

Vice-Preident.

(Sd.) A. B. TANOAN,

President.

NEW DELHI:

Dated: 29th September, 1972.

C. BALAKRISHNAN, Secy.

APPENDIX I

(Reference Section I-i of the Report)

Members of the Counctl

Tandan, A. B - President

Khanna, R. K. - Vicg-Proudwtt

Bombay

Argade, S G.

Calcutta

Bhandan, M C.

Mairas

Brahmiyya, P.

Bo nbiy

Dm"a,HM

New Delh

Ganapathyj C. C.

Calcutta

G a n e s a n, K. . . . ..

• . . Calcutta

G u p t a, S K.

Bombay

Hanbhakt ,VB.

Bombay

Kibra,B L. .

Krihnan,N.C

Delhi

M a h e s h w a n , B .R

M a l i k , P. K.

Cibutta

BoTlbay

M e h t a ,B S.

. ..

Iniore

M e h t a , M. C.

New Delhi • M o t a , H. N. . . ..

BOTibay

P a n k h3A n l M.

. New Delhi • • R a n g a, R. P. . . ..

Bingalore

R a o ,H A K.

Calcutta

SahajG,

Calcutta

Sen,R. N

New Delhi

. . ..

Shah3R D.

Madras

Sivararnaknshnan, A. K.

T a l a t , H M.

Ahmcdabad

New Delhi Tandon, P L.

Madras

Vi]ayaraghavanj P. B.

•Replaced ShnPravin Chandra V Gandhi (Bombay) with effect from 17th September 1971 who was appointed mplace of Shn B S. Kothan (Calcutta) from 11 th June 1971. ••Replaced S h nH K. Ma tra(New Delhi) with effect from iat January, 1972.

APPENDIX II

(Reference : Section I-i of the Report)

Members of the various Commtttees

(a) Standing Committees

(l) Executive Committee :

Shn A B. T i u h n, Piesident (Ex-offlclo) Shn R. K Khanna, Vice-President (Ex-offlcio) Shn S K. Gupta Shri A. K. Sivaramaknshnan Shn H. M Talati

(u) Examination Committee ;

Shn A. B. Taidan, President (Ex-officio) Shn R. K Khanna, Vice-President (Ex-offlcio) Shn K. Ganesan Shn B. R. Maheshwan Shn B. S. Mehta

(111) Dtitiplmaiy Committee ;

Shn A. B Tan Jan, President (Ex-officio) Shn R K Khanna, Vice-President (Ex-offlclo) Shn C C Cinapathy Shri Anil M. Pankh Shn G Saha

b) Non-Standing Committee

(t) Research Committee;

Shri R N. Sen, Chairman

Shn P. L. Tandon, Vice-Chairman Shri A. B Tandan, President (Ex-officio) Shn R. K. Khmna, Vice-President (Ex-officio ) ShnV B Hanbhakti Shn B S. Mehta Shn A K Sivaramakrishnan Shri P B Vijayaraghavan Shri Y. H Malcgam "| Shn P K. Nanda ^Co-optad members

(11) Post-Grad'iate Course Committee :

Shri H. M Damania, Chairman Shn P B Vijayaraghavan, Vice-Chairman Shn A. B. Tandan, President (Ex-officic) Shn R. K Khanna, Vice-President (Ex-officio) S h nP K Malhk Shn H. M Talati Shn P. L. Tandon

Sh" M .P WadhLn }Co-oP"d member,

(in) Profession Development Committee •

Shn V B Hanbhakti, Chairman Shn H N Mota, Vice-Chairman Shn A B Tandan, President (Ex-offlcio) Shn R K Khanna, Vice-President (Ex officio) Shn N C Knshnan ShriP K Malhck Shn R D Shah

Shn R R Khullar "] Shn Ramsshwar Thakur ^-Co-opted members

(iv) Hindi Committee

Shn B L Kabra, Chairman Shn B R Maheshwan, Vice-Chairman Shn A B Tandan, President (Ex-offlcio) Shn R K Kharma, Vice-President (Ex-ofEcio) Shn M C. Mehta Shrl P B Vijayaraghavan

(v) Taxation Committee :

Shn N C Krishnan, Chairman Shn R D Shah, Vice-Chairman Shn A B Tan ian, President (Ex-officio) Shri R K Khanna, Vice-Presidcnt (Ex-officio) Shri B L Kabia Shn B S Mehta Shri G Saha Shri S V Ghataha ™| Shri G Narayanaswamy >• Co-opted members

(vi) Coaching Board:

Shn P. B Vijayaraghavan, Chairman Shri P K Mallik, Vice-Chairman Shn A B Tandan, President (Ex-officio) Shn R. K Khanna, Vice-Presidcnt (Ex-officio)

Shri S. K. Gupta Shrl Anil M. Parikh Shn H A. K Rao Shn B R Malhotra Co-opted member

(vil) Employment Committee I

Shn M. C Bhandarl, Chairman Shri S. G. Argad"> Vice-Chairman Shri A. B Tandan, President (Ex-offlcio) Shri R K. Khanna, Vice-President (Ex-officlo)

Shn M C. MehW Shri H N. Mot* Shri A. K. Slvartmaknihnin

(viii) Expert Advisory Committee :

Shri P. L. Tandan, Chairman

Shri V. B. Haribhaktij Vice-Chairman

Shri A. B. Tandan, President (Ex-offlcio)

Shri R. K. Khanna, Vice-President (Ex-offlcio)

Shri N. C. Krishnan

(ia) Company Law Committee :

Shri P. Brahmayya, Chairman Shri C. C, Ganapathy, Vice-Chairman

Shri A. B. Tandan, President (Ex-officio; Shri R. K. Khanna, Vicc-President (Ex-offlcio) Shri S. G. Argadc Shri M. C. Bhandari Shri K. Ganesan Shri S. C. Bhandari \ „ _ . , Shri P. M. Nariclvala / Co-opted membeiL

(x) University Liaison Committee ;

Shri M. C. Mehta, Chairman Shri H. M. Damania, Vice-Chairman Shri A,B- Tandan, President (Ex-officio)

Shri R. K Khanna^ Vice-Prcsident (Ex-officio) Shri Anil M. Parikh Shri H. A. K. Rao Shri G. Saha

Shri H. M Majumdar *1 Shri S. T. Shah \ Co-opted members

(xi) Editorial Board :

Shri A. B. Tandan, Editor-in-Chief Shri S. G. Argade Shri M. C. Bhandari Shri R. K. Khanna

Shri A. K. Sivaramafcrishnan

(xii) Ad-hoc Committee :

Shri A. B. Tandan, Chairman Shri R. K. Khanna3 Vicc-Chairman Shri S. K. Gupta Shri A. K. Sivaramakrishnan ShriH. M Talati

^iii) Codification Committee :

Shri A. B Tandan, Chairman Shri R. K.Khanna, Vice-Chairman Shri B. L. Kabra. Shri B. S. Mchta Shri H. A. K. Rao

(xiv) Revision Committee :

Shri A, B. Tandan, Chairman Shri R. K. Khanna, Vice-Chairman Shri N. C. Krishnan Shri B. S. Mehta Shri S. K. Gupta

APPENDIX III

(Reference : Section I-3 of the Report)

Council and Committee Meeting

No. of meetings held in 1971-72 J97O-7I

1. C o u n c il

. . . . ..

3

4

2. S t a n d i ng C o m m i t t e e s:

( i) E x e c u t i ve

( i t) E x a m i n a t i on . . ..

( i i i) D i s c i p l i n a ry . . ..

7 . . . 6 6

5 4 4

3. N o n - S t a n d i ng C o m m t t e es :

( i) A d - h oc

S

( i i) R c b e a r ch

. . ..

3

3 2 ( i i i) C o m p a ny L aw . . ..

( i v) P o s t - G r a d u a te C o u r se

5

5

( v) P r o f e s s i o n al D e v e l o p m e nt

3

3

( v i) T a x a t i on

. . ..

2

2

( v i i) C o a c h i ng B o a rd . . ..

3

3

( v i i i) E x p e rt A d v i s o ry . . ..

1

1

( i x) E m p l o y m e nt . . ..

2

10 ( x) E d i t o r i al B o a rd

4

( x i) H i n di , . . , .,

I

1

( x i i) U n i v e r s i ty L i a i s on . . ..

I

4. S p e c i al C o m m i t t e e s:

( i) U n d er S e c t i on 4 ( 1) ( i i i)

z

1 ( i i) U n d er S e c t i on 4 ( 1) ( i v)

1

APPENDIX IV

(Reference : Section III-4(c) of the Report)

Number of Members appeared and declared successful at the Management Accountancy

Examination

M ay 1 9 71 November

1971

10 N u m b er of c a n d i d a t es a p e a r ed in B o th G r o u ps

9

nil

nil P a s s ed in B o th G r o u ps . . . ..

2

1

P a s s ed in G r o up I . . . ..

nil

P a s s ed in G r o up II . . . ..

4

ITu m b e i' of c a n d i d a t es a p p e a r ed in

10 G r o up I o n ly . . . . . ..

13

nil N u m b er p a s s ed

z

G r o : ip II o n ly . . . . . ..

4

7

nil N u m b er p a s s ed

. . . ..

n'l

APPENDIX V

(Reference : Section VII-i of the Report)

N im')3r of Members, as on 31st March, 1971 and 31st March, 1972

}WS

Associates

Fell,

Total

31-3-72

31-3-72 3I-3-7I 3T-3-72 31-3-71

3I-3-7I

Members hoi ling Certi-

3062

ficate of Practice

8071

4356

7418

4731

334°

Others .

306

3809

264

4131

3X25

3545

12202

7901

8556

Total .

3326

II227

3646

APPENDIX VI

(Reference: Section VII-6 of the Report)

Disciplinary action against members

Issue of two discrepant cerificatcs of cir-

culation of a Daily

Gross negligence resulting from failure to exercise sufficient care and deligencein the discharge of professional responsibility

A member was found gulty of professional miscoundut under clauses 7 and 8 of Part I of the Second Schedule to the Chartered Accounttants Act for having issued two- different certificates of circulation ofa. Dally for one and the same period show- ing different figures in respect of the number of copies printed and circulated, Thd Council had recommended to the High Court removal of his name for a period of three years. The High Court however, while accepting the finding! of the Council reduced the period of

removal to three months.

A member was found guilty of professional mis- counduct under clasuc 7 of Part I of the Second Schedule to the Chargered Accountants Act for having failed to excerc st sufficient care and di- ligence in the discharge of his professional res- ponsibilities in not checking the cash memos and not verifying the alterations in the trial ba- lance With the original books in teapect of one company and it not checking the Journal entries and the final figures of the balance sheet with the general ledger in respect in respect of ano- ther company. The Council had recommended to the High Court that the respondent be repri- manded. The High Court accepted both the findingand the recommendation of the Coun- cil.

APPENDIX VII

(Reference : Section 1X-8 (a) of the Report)

Number of Sudents eirrolled during the year, ipji-yi

Intermediate

Final Compulsory

Group I Opt.

Comp. Opt.

Group II

Number of Students who were on Roll on 1st April, 1971

(2527) 3295

(2356) 3140(12) 7 (6434) 7112 (Nil) Nil

Enrolment during

1971-72

(2140) 1223

(345i) 3993 (Nil)—

(2140) 1223 (7) 7

Nil 6518

4363 14

11105

Number of students com- pleted tuition which in- clude 20 and 8 for the Intermediate and final Course respectively who dis count inicd tui- tion dyring the year

(1356)2136(12)7

(1372) 2168

(2773) 2610

2227 7

2350

S395

(Figures shown in the bracket are for the previons year.)

AppFNDIX V I II

(Reference: Section X-I of the Report)

(PartkulaTs of Examinationi)

No. of Candidates

No. of Catidudates

Passed

appeared

PRELIMINARY EXAMINATION

M ay 1 9 70

241

50 81 N o v e m b er 1 9 70

421

M ay 1 9 71

396

77

72 N o v e m b er 1 9 71 . . ..

664

INTERMEDIATE EXAMINATION

M ay 1 9 70

1494

3299

652 N o v e m b er 1 9 70

M ay 1 9 71

596

3084 3549

N o v e m b er 1 9 71 . . ..

6 22

3775

FINAL EXAMINATION

No. of

No. of candid- ates

No. of No. ot candid- candid- ate- passes

ates appea- Candidates appeared in Both Groups

No. of candid- ates passed in Both Groups.

No. of

candidates

passed in

Group

I only

tedin Group

No. of candid- ates passed in Group II only

No of candid- ates appeared passed in Group I only

II only

141

1361

May 1970

882

157

444

. 834

135

2 55

124

1994

184

November 1970

382

. 788

IOIO

185

432

105

133

May 1971

1322

1166 • 977

174

384

577

November 1971

199

. 1005 no

950

1321

2 72

63

5 41

|*AKT HI—SEC- 4\ THE GAZETTE OF INDIA I X T E A O t e l N A KT &J

APPENUIX IX

(Reference-Section X : 2 of the Report)

Final Examination

May 1971

November, 1971

D. Purkuyastha

D.B. Chavda 1. G. P. Kipadia (First President)

Gold Medal

D. Purkayastha

2. Sir ShapODrji Billimoria Piue

Km. Sunnta Tafittan (Value R=. 200/-) tor the best paper on Accountancy

S. Venkatatariian.

3. R.V.K. Umarjcc Prize for the best paper on Cost Acconting.

N.C. Kothfcrf

4. A.F. Ferguson Cajh Prize of Satyanaraln Sodhani Jointly with N. Syamasundaran

Rs. 200/- for the best Paper on Auditing

S.K. Affrawal 5. N.M, Shah Prize (Value R.s 200/- H.K. P. Jam

fhr the begt paper on Taxation

P. K. Shth

••

6. Shri Memorial Fund award for the best papftr on Commercial La\vs and other Direct Taxes Acts.

P.G. Ghali

S. K. Chadha

7. U. C. Majumdar Prize for the best

paper on Company Law

Km. Suman Tandan

Miis. M.B. Surty

8. R. Sivabhogam Prize to the best

Lady candidate.

D.B. Chavda 9. G. Basu Fondation Award for

best student of the year 1971

S. S. Shah 10. N. N. Das Prize for the best

student in the Accountancy Group of the year 1971

11. Certificates of Merit:

D.B. Chnvda A. Dinnakar P. K. Shah

D.Purkayastha

Anirudha Mallik

A.M. Ghalani

1 si Rank Ilnd Rank IUrd Rink

Intermediate Examination

May 1971

November 1971

D.R. Sidana

N.J. Ya^aswy

(First President)

I. G. P. Kapadia Silver Medal

N. J. Yasaswy

2. S'.iri M-morial Ui? best student

and of the

Award for year 1971

Merit:

Certificates of

3.

D.R. Sidana

R. Banavar K m h ne R,D. M"hta 1st Rink Ilnd Rank IltrJ Rank

N.J. Yasaswy N.R. Kumar Shiv Kumar Bagri & V. Govindarajan

APPENDIX X

(Reference iSection XI-2 of the Report)

Names of Members who died during the year 1971-72

SI. Name No.

1 Shri R. N. Rajam Aiyar . . . ..

2 Shti Frederick Arthur Cole

3 Shri N . F. M a t t er

4 Shri Ramniklal Karu^ondab Dalai 5 Shri J. B. Amin

6 S h ri D o r ab R u s t om ji D a v ar

7 S h ri C. Pra!,ada R ao . . . ..

8 S h ri D h i r e r i d c ra N a th G u ha R oy

9 S h ri K a l i p r a s a n na B a o n d y o p a d h y ay

10 S h ri R. M. M a ni

Ii S h ri K. K a l y a n a s u d a r am

13 S h ri R. H. B u t a ni

13 S h ri N. V. S u r a m a n y an . . . ..

14 S h ri S u b o dh C h a n d ra R ay •

15 S h ri Ashurosh Dc . . . ..

16 S h ri A h i n d ra N a rh sen

17 S h hi V. K. G h e y a ra

18 S h ri S. R e n g an .

19 S h ri Baivtdeo C h h a w c h h a r ia

20 S h r i B y om K e sh Mallifc

2r S h ri V e n k a t e s w a r lu C h a m a ti

22 S h ri Sita R am Bagai

23 S h ri K, K r i h s n m W t hy .

24 S h ri P. H. Vallibhoy

25 S h ri M. T- P e n d sc

26 S h ri Satya Prukash G u p ta . . . ..

27 S h ri S u m a nt M a n i l al P a t va . . ..

28 S h ri D . R. P a y m a s t er

29 S h ri M a n i ck L ai S en . . ..

M e m b e r s h ip N o.

10

28

72

in

2 32

2 32

243

269

293

294

. ' 468

539 623

884

9 12

952

976

1005

1050

1059

U 48

1198

1493

1726

1922

20K7

2267

2341

2616

30 S h ri D . B. W a n a c h a n d ra R ao ' , . .

31 S h ri P . D. Joshi

32 S h ri R a d h a k r i s h na S u b r a h m a n y an

33 S h ri C. P a r a m e s w a ra R ao .

34 S h ri A j a y a n a n da De

35 S h ri N i r a n j an S w a mp Singhal .

36 S h ri L a x m i k a nt M u k u n d r ao K a l g u t k ar

37 S h ri P r a b h at K u m ar Malli . . ..

38 S h ri C h i n t a m a ni C h i m a n t ao M o h i lc

39 S h ri P. K r i s h n an N a ir . . ..

40 S h ri S. Svvaminathan . . . ..

41 S h ri R . T. T h a k k er

2735 2324 3412

• • 3434

3 5"

• • 3691 3S67

4944 52T2

5836

• • • 597O

5994

I 2

3

6 7 75 42 S h ri V. M o h an

. . ..

7 0 65 43 S h ri C . V. V i t a l c s w a ta R uo . . ..

7 4 91 44 S hn S h ' r e e sh H a r g o v i n d as P a i el

10027 45 S h ri P u r r i c u du K u m ar J a in

46 S h ri J a g d i sh K u m ar M o di . . ..

II355

47 S h ri A , K. G a n d hi

. . ..

11464

48 S h ri C. M o h an R oa

11586

o

Balance sheet ta o"3irf March, 1972

31-3-1971

31-3-1972

31-3-1971 Property & Assets

Foads & Liabilities

Rs. Rs

Rj. Rs.

RM.

Rs. Rs.

Rs.

31-3-1972 Rs.

5!

4i,7?)O45

42,63^41

I.

ta

I. FIXED ASSETS;

(Schedule *C)

36,25,215

O

12,05,919

12,49^110

IL INVESTMENT fat Cost)

CAPITAL RESERVE Balance: 11-3-1971 -Aii: Entrance Fees (Sc- hedule 'A')

3,81,992

3,51,711

1,52,176

(Schedule TT) QUOTED.

36^5,215 (Market ValueCRs.

40,07,207

1.50,748)

GENERAL RESERVE:

u.

Unquoted :

10,96,934

6,53^83

7=15)587

/III. EARMARKED INVEST-

Balance: 31-3-1971 i c s: Transferred to Research Fund .

icso94

6yt3>3"9

5)7i)5i2

5,81,606

MFfJTI (a Research Fund (Sc- hedule 'E¹) •

Quoted . 701

62,104

Less; Deficit in Income & Expenditure Account 80,129

(Market Value Rs. 698,-) 6,53>483 Unquoted . 5,80,905

5,63^60

HI.

FITFDS:

IV. CURRENT ASSETSl : fa) Publications, Study

3>i?.929 1,200

f

(b) Amounts receivable 2J77)58I (C) Advances & prepay-

3JI2J729

V. LIABILITIES:

2,90.154

64,554

3

ments (d) Cash & Bank Balan-

(a) Fees received in ad-

ce . . ..

vance .

8,58,367

7,74=856

(bi Creditors (c) Other liabilities .

16,48,096

15,14,106 14,98,533 3,24,329 4,54,389

16.37,876 3,71,296 3,27,619

23,36.79*

a •i

b

78.24,676

75,28,814

TOTAL :

75,28,814

7804,676

We have examined the aTx>ve Balance Sheet and the Annexed Income & Axpenditurc Account, which in our opinion .respectively give a true and fair view of the state of the Institutes affair as on 31st March, 1972 and its income and expenditure for the year xoded onthat date NOTE:—The statement does not incorporate the accounts of the Bangalore Branch of Regional Council Southern, Eastern, Central aod Northern India Students Associations and Bangalore, Hyderabad Emakulam, Ahme labad & Jaipur Branches of Students Associations. Since their accounts have not been received and the previous year's figures have been modified suitably for the purpose of comparison,

P* R MEHKA M. R. VEKXATAFA.VWN S. R. SnttMR C B\LAKRISHNAN; R. K. KHANNA A. B. TANDAN

I 3

Chartered Accountants

Assistant Secretary Secretary Vice-President President

NEW DELHI, Septen&er 19,1972.

NEW DELHI 16th SepWttber, 1972

5 o >

o

B

I

SO M

ANNEXUEE TO BALANCE SHEET SCHEDULE " A"

Schedule of Entrance Fee as. on 31st March,i9j2

Rs.

Rs.

(a) Fellows:

R e c e i v ed d u r i ng t he y e ar 1 9 7 1 - 72 . . ..

70,000

(b) Associates:

2,68,449

3J28J50O

(i) Instalment due as on 31st March, 1971 (li) Recoverable during the year 1971-72 . .

5^6^949

(Hi) Less Instalments due as on 31st March 1972 .

2,84,957 3'H.992

TOTAL . . ..

3,81,99a

•

A. B. TANDAN President

C. BALAKHISHNAN Secretary

R. K. KHANNA Vice-President

S. R. SIRKAK Asstt, Secritary

P. R. MBHRA M. R. VBNKATARAMAJT

Chartered Accountant*

ANNEXURE TO BALANCE SHEET SCHEDULE " B" Schedule of Medal sand Prises Fund as an 31K March 1972

f

Cost of Medals & Balance

Na Tie of Funds

Eadowment

Income earned

Serial No.

Prizes av-arded

Total (Cols 3&4)

B

1 2

6

7 —

3

5

4

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

1

- (-) 17

20,coo

550

B/F For the year .

G.F. Kapadia (1st President) MedalFund . . ..

20,000

20,533

9571

533

Less : Written of to Income & ExpenditureAfc.

533

( -) 424 1

i

j

²

o M:ss. R. Sivabhogan; LocXetPund.

i>365 325

BJF For the year .

5)O0O

6,690

6,165

1,690

525

3 SirShapoorjiBTlimoria Prize Fund . . .

254 471

10,189

560

B/F For the year .

10,024

F 10.^49

725

• . 1,635

B/F.

4 ShriR.Rajagopalan Prize Fund. . . ..

For the year .

8,055 6jOOO

420

8,055

5 Shri S. Krishnaswamy Prize Fund. . . ..

1,084

6,084

B/F For the year .

759 325

5,000

[ 6,oS4

6 G. Basu & Co. - Foundation in Accounting Research Fund.

B/F For the year ,

501 14,000

211 420

143631

H>i3o

6 31

7

S,02S

For the year .

S,ooo

2S0 1

25

1 R.K.V. UmarjiPrize Fund Less ; Written off to Income & Expenditure A/c. .

( -) 255 J

1

8,000

S

25

S

For the year .

103000

10)176

176

350 1

I Sur AlemoriaJFund Less : Writtenoffto Income& ExpertditureA/c. •

10,000

176

C-) 174 J

TOTAL

82,623

2,320 7^024

84-943

6,9i9

P. R. MHHR.^ M.R. VENKATAKAMAX S.R.StRCAR jissistant Secretary

C. B",\KRIS-B>RN Secretary

R.K. KH.\NN,4

Vice-President

A. B. TAND^N President

Chartered Accountants

A N N E X U EE TO BAtANCT SHEET SCBBTPLE " C"

Schedule of Fixed as m yi.it March, 1972

COST D E P R E C I A T I ON

Additions Total upto Total upto

Serial Name of Assets

No.j

31-3-72 3I-3-7I

Total upto 31-3-72

Upto 31-3-71

For the year

o

Book Value as on 13-3-72

Rs.

Rs.

Rs.

Rs,

Rs.

Rs.

Rs.

8

6

9

to r 2

4

5

7

3

Rs.

Rs.

R s.

Rs.

R s.

Rs.

Rs.

2,159

2,910

2,910

2^910

1 (a) Lease Hold Land (New Delhi) (b) Lease-Hold Land (Kanpur)

2,159 2,910

1

2 Land and Fuildings at:

18,61,339

(a) New Delhi (Central Council )

2,15,833 i6,45,5c6

14^04,844

41,076 9,104

4,51,178

4>5&495 4,51,178 3,88,840

96,116 1,00,414

3,88,840

1=74)757 87;OI2 93,018

7^396

3=55,o62 2,88,426 (b) Bombay (Western India Regional Building) . (c) Calcutta (Eastern India Regional Building) . (d) Madras (Southern India Regional Building)

4>97J369

4.97=369

10,185 1,00,135

89=95&

3=97>234

Building under construction at Kanpur

3 (Central India Regional Building)

1=778

1=778

i>778

48,224

69,316 4,78>o82

5=47>39S

94^50

46,626

4,52,548 4 Electric Installations & Fitti^s at: (a) New Delhi (Central CounciJ) (b) Regional Councils, Students Associations &

12,387

34=862

their Branches

32,702

2,160

2,605

14*992

19,870

5 Air Conditioning Installations . .

1,41,064

5>G4,669

3=63,605

1,10,803

1,66,175

55=372

3=3 M94

iw

6 Lift

1,57=883

1.57.883

15=654

1,42,229

15=654

n 3

H

i—i

Furniture, Fixtures & Safe at:

7

2,19-4:8 (a) New (Delhi Central Council)

18,858

2,12,291 1,27,452

1,01,467

1,20-325

3'39J743

l

0 (b) R e g o n a l G o u n c i l s , S t u d e n ts Associations and their Branches . . . ..

2,15=895

73=968

2,40,732

12,211

86,179 1=54=553

24=837

8

1,44,183

1,22,379 21,804

94=790

49=393

6,793

87,957

Office Equipments at: (aj New Delhi (Central Council) (b) RegonalCouncils,StudentsAssociaticms3nd

±1

45>289

32,017

40,58s their Branches

85=877

8=571

76,734

9>I43

9

1,67,184

1,43-401

2,22,031

2^4=676

54=847

17-355

23,783

Library Books at: (a) New Delhi (Central Council) (b) RegionalCouncils,Students3Associationsand

2,31,634

1,47,223 29,6c6

their Blanches

2,70,224

1=76=229

93=395

38,590

ft

3,040

13,681

7 60

16,721

16,721 12,921

MotorCar

10

15=06,1555 42=63,241

57=69,896 12,15,145

31,22,363

TOTAL

26,47*533

2,91,510

s

P. R. MEHEA M.R. VENKATAKAMAN

A. B. TANDAN

R.K. KH£NNA

Vice-President

Chartered Accountan ts

President

C. BAIAKRISHNAN Secretary

S.R. SlftCAR Asstl. Secretary

ANNEXURE TO BALANCE SHEET SCHEDULE " D"

Schedule of InvestniLtits as on 31st March 1972

Particulars

Face Value

Rs.

Cost Rs.

SI. No

I. General Fund:

1. Fixed Deposit with the State Bank of India

3,70,656 3,70^36-

2. Fixed Dcpos't with Bank of India

2,000

2,000

1,00,000 P.O. 12 Year National Defence Certificates

i,oo3ooo 3.

3% Conversion Loan, 1946-86

3,100

2,506

4-

TOTAL

4,75,162

4J75>75<5

II. Coaching Board:

1. Fixed Deposit Receipt with State Bank of India

5,24,278

5*24'27&

2.

56,000

50,000 4 i% Maharashtra State Development Loan, 1972 .

50,000

50,207

3-

40,000

40,000 4% Loan, 1973 4l"/

0 Ten Year Defence Deposit Certificates

4-

25,000 4^ % Maharashtra State Development Loan 1974

25,000'

5-

25,000 4 l% U . P. D e v e l o p m e nt L o an 1 9 74 . . ..

24,463 6.

60,000

60,000 P.O. 12 Year National Defence Cert ficates

7-

TOTAL

7,74J278 7,73,948

TOTAL OF I & II

12,50,034 12,49, no

S. R. SIRCAR, C. BAIAKRISHISAN R.K. KHANNA A. B. TAMDAN Asstt. Secretary Secretary Vice-President President

P. R. MEHRA

M, R. VENKATARAMAN

Chartered Aocouniants

ANNEXURH TO BAI.ANO. SHFET ScHi

Schedule ojResearch Fund Investment as i>" 3 m March, 1972

SI. Partijul.il j, N o.

F a ce V a l ue Ri.

Cost Ru.

3

4

1. F i x ed D e p o t ,i w i th S l a te B a nk of I n d ia . 2. 4 '„ L o a n, i y ^2 . . . . . ..

5,80,905 701

5380,905 701

T O T AL

5>8i,6o6 5,81,606

ANNEXURE TO BALANCE SHEET SCHEDULE " F'

Schedule of Medals and Prises Fund Investment on on^ist March 1972

Face Value

Part'cuUrs

S. Na^ne of the Fund No.

Ra.

Cost Rs.

1 2

3

4

5

1. G.P, Kapadia (ist President) Medal

20,000

20,000

Fund 2'3/4 "l;Loan, 1976

2. Mits. R. Sivabhogam,

Fixed Deposit with State

Lockd Fund.

5,000

Dank o{ India

5>ooo

3. Sir Shipoorji Billimoria

3u,, Convcrgion Loan

Prjye Fund.

15,700 10,024

1946-86

4. Shri R. Rajagopalan

Fixed Deposit with

Prize Fund.

State Hank of India

6^000

6,000

5iO0O

Do.

5,000 5. Shri S. Krishnabwaiiry Prize 1'und.

6, G. Basu & Co., Foundation in

1 Convert,! on Loan

14,000 14,000

Accounting Research Fund.

1946-86

7. R.K.V. I'marji Prize Fund

Fixed Deposit with

Bank of India

8,000

8,000

8. Suri Memorial Fund

Fixed Deposit with

Investment.

State Bank of India

                                                                       10,000     10,000
     TOTAL                                                            83,700     78,024
S.  R.  SIRCAR         C.  BALAKRISHNAN      R.  K.  KHANNA       A. B. TANDAN
Asstt.  Secretary      Secretary             Vice-President       President

P, R. MEHRA M.R. VENKATARAMAN

Chartered Accountants

Income and Expenditure Account for iktyear ended ^istMarck, 1972.

1 9 7 1 - 72

Surplus/ Deficit

1970-71 , Surplus/

Bspenditure

Income

Deficit

Rs.

Rs.

Rs.

Rs. Rs.

Rs.

©

MEMBERS

A.

Membership and General Administraium :

T.

(a"l I n c o me f r om M e m b e rs . . ..

8 , 2 3 , 5 - 13

3 |

(J>) A p p l i c a t i on & R e c o r ds . . ..

46,770

(c) D i s c i p l i ne . . . . . ..

1,13,234

(d) C o l l e c t i on of F e es

£46,075

(e) L i st of M e m b e rs

[72,127

( /) A n n u al R e p o r t, C o u n c il C o m m i t t ee M e e t i n gs

L.35,519

( g) E m p l o y m e nt S e r v i ce

25,787

9,20,427

5,02,277 (A) M i s c e l l a n e o us

78,638 4 , ^ 1 50

9 6 , 8 79

5>24,994

Regional Councils

(—)2,73,756

1,32,617

II.

4,30,784

Professional Development and Research

III.

f

(a) P. G. C o a r se & P r a c t i c al T r a i n i ng

52,556

8 , 5 50

10,656

(£>) C o n f e r e n ce & S e m i n ar . . ..

( r) T e c h n i c al A c t i v i t i es . . . ..

88,303

• * (d) L i b r a ry

,

i8y"O3

=3

..

[*>- Members

i 31=421

>

( /) Miscellaneous

4IJO47

49,597

'30,991

2,3^330

f—^2>O3>346

(—}iJ82,733

IV. Journal . . . . . ..

( _; 1,04,505

1,63,915

(—)i,99-498

3J63,4I3

TOTAL

12,66,556

14^44,677 f—11,78,121

I

B. STUDENTS :

Sn'itderUs ActkHiies & Examinations

V.

(a) S t u d e n ts A c t i v i t i es . . . ..

2,84,032

1.98,271

9,60,050

( b) E x a m i n a t i o ns . . . . ..

7)68,402

3

( VI M i s c e l l a n e o us . . . . ..

34)298

65^99

11,92,619

74,286

95,662

n,iS,333

i

23,706 f—^1,00,853

12,94,008

C o d d l i ng B c i i i ni . . . . ..

vr.

••

w o

TOTAL

97,992

(—)5,l9i

25^0=333

24,12,341

DEFICIT

37,76,889

3?.57-oi8

r—>52,io4

(—)So,i29

NOTE —Far ietaiJs refer to the "Schedule Attached". As Per our Report of even date

N EW DELHI -

Dated September 16, 1972.

C. BALAKRISHNAN

S R. STRCAB

P. R. MEHRA

A. B. TANDAN

R. K. KHANNA Vic*-President

President

M. R, VEXKATARAMAN Secretary

Assistant Secretary

I

Chartered AccoufOcmtz

ANHESURE TO INCOME & EXPENDITURE Accot'NT

o o

SCHEDULE

Detaii oj Income Cr Expctidilwe jot tfte year ended 31 sf March, 1972

Members

Students

O

Coaching Heads of Accounts

Board

Journal

Serial No.

Total 1971-72

Membership

& General

Administrat ion

Professional Development & Research

Regional CcFuncil

Students Activities Exam in atiens

3

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

s

I. Income

1

I,2C,?4O I] < f . TJ Fees (.See Note No. 1)

8)55© do,3co">

8,23,548 < 7)53)19^.

33)58,200 C29.17:453)

11,27,998 (9,^4 417)

1-19)443 ,'1,10,463)

2 Income from Properties

-•

38,710 (37=710)

3S;7i° (3 8,710)

Revenue from Journal & Other Publications

1,11^94

3

3,988 (5.680)

5,026 (7,332)

28,

(65,501)

I392,392 (1)47)070)

43,575 (4i,7⁶5)

IS I

Interest on Investments

4

34,307 (32,015)

5

TOTAL

E

IB O

I I. ExpemMture

S a l a r i es & o t h er c o st of E m p l o y i ng Staff

I

2,50,525 (2,05,695) 7

i,87,34i (1,66,145)

52,797 (3i,557i

4,29,823 (4,50,9^8)

11,70,812 (10,82,486)

80,294 (76,729)

1,70,032 (1,51,372)

5,458

P r o v i s i on f or G r a t u i ty . . ..

8

3,023 (2,252)

1,121 (76S)

13,841 f 14,944)

9,595 (7,255)

(5,319

2,247 (3,637)

35,285 (34)175)

P u b l i c a t i o n s, P r i n t i ng & S t a t i o n e ry & S t u dy

I

9

M a t e r i al

2,43,777 (1,66,166)

3,56.027 (2,94^72;

33,934 (45,762)

29,794 (24,300)

i,3M9O (1.54,5? 3)

58,633 (57,652)

8,53,655 (7r4-2,735 )

2,15^403

F e es of E x a m i n e r s, T u t o rs & I n v i g i l a t o rs

IO

2,69,395 (2,25.13 Si)

1,381 (1,412)

'2^7,3981

4,86,179 (4=53,948)

i

2,22392

••

••

10

2;22.392

l'l ,62,606)

f 1,62,606)

H i re of H " U, F r e i g ht & o t h er e x p e n s es in E x a m i n a t i on

44.545

R a t es & T a x es

. . ..

12

o

2,053 (884)

(41,770)

i3,6Sf> (6,295/

40.339 (34,050 1

6,158 (2,653)

13,685 (5=895J

1,20,466 (91,547)

1,205

R e p a i rs & M a i n t e n a n ce . . ..

13

20,937 (10,2231

8,034 ("3,194^

10,882 (I3>249)

3,6i5 (1*437)

8,034 (3,195)

(479)

52,707 (31,777)

2I,2l8

4,671

c

D e p r e c i a t i on

. . ..

(386)

14

96,406 i'25,688;

44,422 (13,523)

54,418 (22,000)

(8,556)

2,9i>5io (1,34,618)

70,735 (64,465)

P o s t a g e, T e l e g r a ms & T e l e p h o n es

r5

14,779 (II,I88)

27,095 (22,886)

1,87,145 (1,67,065)

32,667 (25,229)

32,954 (25,433)

63,355 (51,984)

16,295 (30,345)

T r a v e l l i ng E x p e n s es of C o u n c il & C o m m i t t ee

16

8,403

M e m b e rs

. . ..

28,287 (24,382)

5,139 (2,405)

35,951 (40,436)

44,209 (44.819)

(9,577)

25,748 (17,365)

i>47>737 (1,38,984)

3,215

3i, ^63 (26,273^1

(550)

4,741 (6,229)

55,422

O t h er T r a v e l l i ng E x p e n s es . . ..

17

9,825 (4,921)

5,878 (3,022)

(40,995)

P r o f e s s i o n al F e es

. . ..

18

14,754 (4,536)

i,95O (1,900)

(8,i9i'i

1,218 (857)

1,397 (1,314)

59,070 (19,942)

31,892 (3,144)

I

H

s

Serial Heads of Accounts No.

Total 1971-72

Students

Members

o w

Coaching Board

Membership & General RcgiaDal Adniinistration Council

Rs.

19 Conference, Seminar, etc

(21,248)

20 Election

(46,880)

Students Activities & Examinations

Professional Development Journal & Research

Rs.

Rs.

Rs. Rs.

Rs.

--

O

(21,248)

(46,880) ;:

21 Miscellaneous

15,263 (26,695)

11,-05 48,152 (13,275) (42,008)

1,74=638 (2,08,396)

22 TOTAL

38,57>oi⁸ (33=77,402) 12A97 (30,752)

64.05° (7i;946)

22,971 (23=720)

3=63J4I3 (2,56,180)

12,94,008 (11,98,656 2,32,330 (2,53,043)

4,18,150 4,30,784 (3,54-348) (3,89,937)

11,18,333 (9,25,238)

I I

NOTE N O. I

Schedule of Fees : 1971-72

1970-71

1971-72

Rs.

Rs.

RG.

Rs.

MEMBERSHIP ADMINISTRATION

3.

1,36,530 (a) Associate Membership

1,50,606

2,45,718 (b) Fellow Membership

2,67,691

2,16,950 (c) Associate Certificate of Practice

2,36,500

1,54,000

(d) Fellow Certificate of Practice

7>53>i98

I J 6 S J 7 5O

8.23,54?

REGIONAL COUNCIL

2.

1,10,463

iji9.443

10,300 POST-GRADUATE EXAMINATION

8,550

3-

JOURNAL:

4-

Membership fees allocated to S u b-

1,09,510 scription for Journal •

1,20,340

STUDENTS & EXAMINATION:

5-

(a) E x a m n a t i on Fees •

8,05,195

9*60,050

(b) Students:

(i) Article Clerks Reg's tration

1,26,880

1,43,450

(i ) Audit Clerks Reg'stration .

35,610

43.44°

(iii) Students Association F ee .

11,880

H J 3 8I

9=79.565

11.583321

COACHING BOARD

6-

9.54=417

11,27,999

TOTAL . . ..

33>5⁸,2OO

29.17=453

S.R. SIRCAR, C. BALAKRISHNAN, R. K, KHANNA, A. B. TANDAN,

Asstt. Secretary Secretary Vice-President President

P. R. MEHRA. M. R. VENKATARAMAN,

Chartered Accountants

C. BALAKRISHNAN Sacy.

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PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI AND PUBLISHED BY THE MANAQER OF PUBLICATIONS, DELHI, 1972