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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART III—Section 4

PUBLISHED BY AUTHORITY

No. 2] NEW DELHI, TUESDAY, SEPTEMBER 30,1975/ASVINA 8, 1897

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

CHARTERWD ACCOUNTANTS

New Delhi, the 26th September 1975

No. 48-CA(l)/75.—In pursuance of sub-section (5) of Section 18 of the Chartered Accountants Act, 1949, a copy of the Roporl and the audited accounts of the Council for the year ended 31st March, 1975 is hereby published for general information.

TWENTY-SIXTH ANNUAL REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST MARCH, 1975.

The Council has pleasure in presenting its 26th Annual Report for the year ended 31st March, 1975, in accordance with the provisions of Section 18(5) of the Chartered Account- ants Act, 1949. The report records the salient features of the institute's activities upto the date of this report excluding matters to watch reference has already been made in the report for the preceding year.

I. THE COUNCIL

1. Members of the Council and its various Committees

The Ninth Council was constituted on 17th September, 1973. The names of the members of the Council and its Standing and other Committees as constituted at the- Coun- cil meeting held in September, 1974 are given in Appendices I and II respectively,

( 2 2 5)

2. President and Vice-President

At the meeting of the Council held in September, 1974, Shri N. C. Krishnan (Madras), who was the Vice-President in the previous year, was elected the President for a. term of one year from 17th September, 1974, SViri P, M. Nariclvala (Calcutta) was elected Vice- President for a similar term.

3. Council Meetlngi

During the year, the Council held three meetings—the first on 19th and 20th July, 1974, the second on 13th and 14th September, 1974 and the third on 20th and 21st February, 1975,

n. FINANCES

1. Accounts

The Balance Shest as at 31st March, 1975 and the Income & Expenditure Account for the ye'ar ended on that date duly audited, arc appended at the end of this Report. The Income & Expenditure Account for (he year shows a deficit of Rs. 10,52,469 as against the deficit of Rs, 3,31,273 disclosed in the preceding year. The major reasons for the large deficit are the increase in staff costs consequent upon the implementation of the Pay Commission's recommendations and the general increases in cost, particularly in the cost of paper. To avoid future deficits, a number of measures of internal economy h.ive been taken and an increase of fees is proposed from April, 1976 in addition to the increase in April, 1975 which has proved wholly insufficient.

2. Auditors

SarVashri P. R. Mehra and IVf. R. Venkataraman continued to be the Institute's auditors for the year ended 31st March, 1975.

III. MEMBERS

1, Membership

The number of members of the Institute on 31st March, 1975 was 15372, recording an increase of 1061 since 31st March, 1974. During the year under report, 476 Associates were enrolled as Fellows as compared lo 441 in the previous year. Appendix III gives the classification of membership.

2. Increase In fees payable b.v Members

To

Rs. no-oo

Rs, 75 -oo

4. Decentralisation of registration of students and members in Southern RegioD.

With a view to rendering more efficient service and bringing the Institute closer to the members and students, the work relating to enrolment of members and registration of articled and audit clerks has been decentralized with effect from 1st November, 1974 in respect ot' the Southern India Region at. Madras. The possibility of similar decen- tralisation in respect of other regions is b;ing examined.

5. Disciplinary Action

Details of the orders of the Hinh Courts on the findings of Tn? Council in the cases referred by it for enquiry to the Disciplinary Committee under Regulation 1K8) (i) and th; finding of the Council since the last report are given in Appendix IV.

6. List of Members

The list of Members as on 1st April, 1975 is being published and copies will be supplied to members who have rcfiislered their requests for the sam;.

7. Death of Members

The Council records with regret the sad demise during the year of the members whose names appear in Appendix V,

IV. ARTICLED AND AUDIT CLERKS

1. Fresh Enrolments

Th: numbers of articled and audit clerks registered during the year, compared to those registered in the preceding year, are given below;.—

i974-"5 IS73-74

3523 4043 An "it cltrks . . . .. 36 2070

The fall in the registration of apprentices in 1974-75 is due to—

( ' J) t he r e s t r i c t i on on d i r e ct • • n t ry i n to a p p r e n t i c e s ' / l ip o n ly to i h o s; g r a d u a t es w ho have secured a minimum of 50 per cent marks in their d-gree examination

and

(b) a restriction on registration as audit clerks of only trios:; who have worked as sakri d employees of the members concerned on a minimum monthly remuneration of Rs. 150.

2. Date of registration oF articled/audit clerks

As mentioned in the last report, the Council has decided to remove the existing re- guiremnt for commencement of training on four fixed dates in a year, namely, 1st January, 1st April, 1st July and 1st October. Till the Regulations are amended in thi" be'nalf (for v/hich action has been initiated) th; Council has authorised the President to consider the requests for relaxation in the date of commencement of training of those students whose results of the degree examination arc declared late and due to which they are not able to commence the training on one &f the above mentioned four dates.

3. Registration fee

In consid:ration of the fact that there 'nas been an increase in the cost of adminis- tration, the Council has increased l\ie fee Tor registration of articled and 'audit service from Rs. 40 and Rs. 30 respectively to Rs. 50 in both cases.

Further, the Council has also decided that in all cases of transfer or assignment of articled service from one employer to another; as also in all c a ss of transfer of audit service from one employer to another where no fee is payuble at pres nt, a registration fee of Rs. 20 should be charged.

The relevant Regulations are being amended for the purpose.

4. Stipend to articled clerks

It was mentioned in a note published in October, 1974 issue of 'The Chartered Ac- countant' that certain members had challenged the validity of Regulation 32B which had imposed an obligation for payment of stipend to articled clerks joining training for the first time on or after 1st July, 1973 before the High Courts of Calcutta 'and Madras and that the cases were pending before the said Courts. The note stated that queries were being received whether in view of these petitions, members were required to pay stipend to

their articled clerks especially in areas falling under the jurisdiction of the said two- High Courts. The note clarified tfaat the stay granted by the Courts was confined to the cases pending before the Hon'ble High Courts, and made no difference to the oblis'ation of other members to pay the slipend.

Subsequent to the publication of the above note, The Society of Auditors' of Madia* Wed a writ petition on the same subject before the Madras High Court and initially obtained an interim stay of th: operation ol R e l a t i on 32B. However on a petition- moved on behalf of the Institute, the Hon'ble Hig'n Conn has vacated the interim stay order

Regulation 32B provides that the stipend ahull lie payable in tho cities of Bombay, Calcutta, D=)hi, New Delhi, Madras and Knnfur, at the rate of Rs. 60 per month in the first year of training; Rs. 100 per month in the second year of training and Rs. 150 per month in the third year of training. In places other than those mentioned above, the stipend is payable at half the above rates.

The Council has decided to delete the reference to "Kanpur" in the matter of pay- ment of stipend at the higher rate, so that, after the necessary amendment in Regula- tion 32B is carried out, t'de stipend shall be payable at half-the above rates in K'anpur,

5. Industrial Training

An appeal was issued to undertakings which arc providing industrial training to the students for the Chartered Accountants Course and were not paying any stipend to them or were paying less than Rs. 150 per month, that they should pay them a minimum stipend of Rs. 130 per month.

Another appeal was issued to important undertakings which are not at present, pro- viding industrial training to provide the facility in their organisations.

6. New form of certificate on termination of articled service

The Council has decided to amend the Chartered Accountants Regulations to provide for a separate form (Form No. 20A) for the issue of certificate of service where- the training under articles is terminated prior to its normal date of completion. The certi- ficate shall be issued on the| printed form which shall have to be obtained from tho Secretary. Such form shall bear the stamp of the Institute and the date of its issue and shall bo valid only for a period of 60 days thereafter. Appropriate steps to amend the Chartered Accountants Regulations In this behalf are being taken.

7. Coaching Board

(a) Enrolment of Students; Statistics regarding enrolment of students and other related matters are given in Appendix VI.

(b) Study Material: The study material supplied to students has, as usual, been cons- tantly brought up-to-date. Also, the Board has been contributing to the Institute's Journal regular features by giving, in summary form, current economic events, a sum- mary of important articles relating to accounting and auditing in foreign journals, a digest of income-tax and company cases and current readings.

(c) Students' Libraries.—The number of students' libraries including those at regional

headquarters remains at 29.

(d) Revision Classes.—These enjoy popularity and are held at a number of centres besides those at the regional headquarters. At Madras, the Intensified Course Classes continue to be popular. In pursuance of the Board's decision, referred to in the last year's report two sessions of fom-mwith classes for the Intermediate Examination under the new Regulations were held at Madras and one session each at Delhi and Bomhay. Students who attend 75 per cent of these classes and do 75 per cent of the tutorials satisfactorily earn the exemption from answering the test papers ol the Board.

(e) Publications.—1hz Board is up-to-date in respect of Volumes of Suggested Answers to the questions set at the Institute's examinations, the volumes in rospect of November, 1974 examinations having already been published,

(f) Merit and Loan Scholarships.—During the period under report 10 merit scholar-

ships and 41 loan scholarships wore awarded.

(") MtarWfo/iww^-Pursuant to the Board's decision to offer an ^™*c™t!*™£ ence course to those who wish to appear at the Entrance. Eswri.nation&>$"<**£> t he Institute 498 students have, dtaing the period under review, taken up this cour.e.

"$, Students Associations and their Branches

Students Associations and their branches continued to function in all the regional constituencies viz., Western, Southern, Eastern, Central and Northern. Some of these "Were active and arranged several conferences, seminars, bctures, study circle meetings, etc.

A branch of the Western India Chartered Accountants Students' Association wa" opened at Supjt with effect from 1st October, 1974.

V. EXAMINATIONS

1. Examinations 1974

The Examinations were held, as usual, in May, and November, 1974 at various centres all over India. I he statistics regarding the number of candidalcs who appeared and the number dechred successful are given in Appendix VII.

2. Prizes and Certificates of Merit

Names of the candidates who were awarded prizes and Certificates of Merit In the examinations held in May and November, 1974 are given in Appendix Vill.

3. Action against Examinees

The Council has debarred 5 candidates who were found to have resorted to unfair means in the examinations for varying periods from appearing in the examination.

4. Exemption to commerce graduates In certain papers of the Entrance Examination

The Council has decided that commerce graduates who secure less than 50 per cent marks in their degree examination and as a consequence thereof are required to pass the Entrance Examination before they can join the Chartered Accountants Course, should be exempted from Paper I, namely, Elements of Accounting, and Paper tV, namely General Commercial Knowledge and Economics of the Entrance Examination, The Regulations are being amended to implement this decision.

VI. PROFESSIONAL DEVELOPMENT

1. Self-regulatory Measures

The Council had decided upon certian Self-regulatory Measures in December, 1970 in order to ensure an equitable flow of professional work among the members. These wgre published in the Journal of the Institute. Clause 4 of these measures provided that any firm of Chartered Accountants engaged in audit work should have at least on" member for every five audits of public limited companies and statutory corporations, whose paid up share capital was at least Rs. 1 lath each.

In consideration of the fact that a ceiling on the number of audits has since been introduced in the Companies Act itself, the Council has decided that the said clause 4 be withdrawn from the Self-regulatory Measures.

2. Members in full-time service who ajfc partners in firms of CAs. not be abuse the rale

on celling on audits

The Council considered tho possibility of the rule regarding ceiling on the number of audits in the Companies Act being abused in cases where members in full-time ser- vice are admitted to partnership in practising firms of Chartered Accountants and thereby the firm becomes entitled to get ,a larger quota of the company audits. The Council has decided to make a suggestion to the Department of Company Affairs for on amend- ment of the Companies Act that if a member in full-time service is a partner in a prac- tising firm of Chartered Accountants, he should not be counted for purposes of the ceiling on the number of company audits.

The Council has further decided to insert a suitable clause m the Self-regulatory measures stating that pending amendment of the Companies Act, as above, a practising firm of Chartered Accountants shall not count for the purposes of the number of audits the firm can accept under the provisions of Section 224 of the Companies Act, any of its partners who arc in full-time service,

3. Memhurs with less than 10 Years' practice only to be appointed for •mall audits

Another decision which the Council has taken to help the junior members of the profession, is to suggest to the Comptroller and Auditor General of India that appoint- ment be made only of members with less than 10 Years' full-time practice as auditors of government companies and corporations where the audit fee doe* not exceed

Rs. 2,500/-. In case of partnership firms, this rule may apply to all firms where alt partners are members with less than 10 Years' full-time practice.

The Council has further decided to insert a suitable clause in the Self-Regulatory measures to this effect

corporations

4. ComtfiHtee for fixation of audit fee in the case of government undertaklnes ami —-*"b" -™" The Council has appointed a committee, under the chairmanship of the President to discuss with the government authorities the framing of suitable guidelines in the matter of fixation of the audit fees payable in the case of government undertakings and corporations.

5. Compulsory audit of the accounts of Partnership firms

A proposal to amend the Partnership Act to make the audit of partnerships above a certain size compulsory had been made by the Council in 1971 to the then Minister for Company Affairs, Shri K. V. Raghunatha Reddy, but the Government stated that in view of the provision then contained in clause 39 of the Taxation Laws (Amend- ment) Bill, 1973, it might not be necessary to, make any amendment in the Partnership Act. Now that the said Bill has been passed by Parliament and the said clause 39 of the Bill is found to have undergone radical changes, the Council has decided to request the Government to revive the original proposal.

6. Appointment of Chartered Accountants as Chief Accountants, etc.

A suggestion has been made to the Government for the compulsory appointment of a Chartered Accountant as Chjef Accountant or head of the Accounts Department in ovary company and public sector undertaking having share capital in excess of Rs. 25 lakhs or a turnover in excess of Rs. 1 crore. In the. representation to the Government it has been stressed that the duties of the Chief Accountant are- no less onerous than those of the Company Secretary whose appointment has been made compulsory under the statute.

Further, in the interest of proper maintenance of accountt and having regard to the socio-economic objectives of corporate legislation in our country, such an appointment is of great importance. It has been urged that a provision in the Companies Act for the appointment of Chartered Accountants would result in a greater degree of discipline in the maintenance of accounts with consequential advantages to shareholders, taxation authorities and financial institutions.

A further representation has been made to the Bureau of Public Enterprises urging that more and more Chartered Accountants shduld be appointed as Financial Directors and Controllers in public sector companies and undertakings.

7. Appointment of Chartered Accountants at Canipwy Secretaries

Members are aware that with effect from 1st February, 1975, the Companies (Amendment) Act, 1974 has introduced a new Station 383A which provides that every company having a paid-up share capital of Rs. 25 lakhs or more shall have a whole- time Secretary. Section 2(45) of t'ne Act has also been amended to provide that a Secretary can only be an individual who possesses the prescribed qualifications. Vido notification dated 7th March, 1975, the Government has made rules which provide that in respect of companies having a paid-up share . capital of Rs. 25 lakhs or more, the sole prescribed qualification shall be thq membership of the Institute of Company Secre- taries of Indi'a with the proviso that (i) for a period of five years from 1st February, 1975 a member of the Institute of Chartered Secretaries and Administrators, London shall' also be eligible for appointment and (ii) the existing company secretaries shall be deemed to possess the requisite qualifications for the limited purpose of continuing m that office in that company.

The Council has protested, against the notification issued by the Government which {more* the richtful and just claims of the members of the institute to occupy the posl- \Zof secretary to which they are entitled by virtue of their training, quahflcat.ona and experience. The matter is being pursued with the appropnate authorities.

8 Membership of other bodies

t he Council hai decided that members of the Institute may be permitted td become member* Tb her a v i a t i o n, so long as the provisions of thfc Chartered Acwunuuito AcT^d the R a t i o ns framed thereunder are not infringed. These relate to the Code

of Conduct which members of the Institute arc expected to observe more particularly those relating to advertising and canvassing for professional work. At the same time the attention of the members is drawn to Section 7 of the Act regarding the use of designation and designatory letters.

9. Use of description—Management Consultancy Division on Iftar-heads, etc.

The scheme for permitting members to render Management Consultancy Services and effecting certain relaxations in the Chartered Accountants Ad and Regulations in this behalf was published in April, 1973 issue of "The Chartered Accountant". A question was raised whether, pending the suiulory amendments' and within the framework of the existing provisions of the Act, a chartered accountant in practice or a firm of chartered accountants could convey through its letter-heads or otherwise that Management Con- sultancy Services were also being rendered by it. A specific question was raised whether words such as "Management Consultancy Division" could be used by them either in addition to their designation as chartered accountants or otherwise.

The Council has been advised that having regard to the existing statutory require- ments, the use of such descriptions or expressions is prohibited, Accordingly, members are advised to desist from the use of descriptions such as Management Consultancy Division, Taxation Division, etc. on their lettcr-heiids, visiting cards, mime plates; etc.

10. Professional Development Committee

(a) A study on "Organisation of a Chartered Accountants' office" has been released.

(b> The Technical Guides to audit of Sugar Industry and the Cement Industry havo been finalised and are under print.

(c) A representation was made to the Department of Banking, Government of India, regarding reconstiUKion of the Panel of Auditois for audit of branches of Nationalised Banks.

(d) A National Conference of Accountants in Industry was held at Bangalore in June, 1975i.

11. Research

fa) The Institute has been recognised as an Institution established for carrying on scientific research within the meaning of Section 35(1X10 of the Income-tax Act, 1961. It is hoped that the recognition will attract liberal contributions from members Of our profession as well as others for accelerating the pace of scientific research camd out Dy the Institute.

The Council gratefully acknowledges the following domtions received so far for scientific research pursuant to the aforementioned recognition:

Messrs. C. C. Chokshi & Co., Bombay—Rs. 50,000. Messrs. Noshir M. Marfatia & Co.. Ahmedabad—Rs. 10,0001,

(b) The representatives of the Institute appeared before the Study-Group on Non- banking Companies, Reserve Bank of India, regarding; acceptance of deposits by non- bunking companies.

(c) The following research studies have been issued:

(i) Guide to Cost Audit. (ii) Revised second edition of the Statement on the Treatment of Retirement Gratuity in Accounts.

(d) Institute's views on Cost Accounting Record Rules for Industrial Alcohol and Sugar Industries were forwarded to the Company Law Department.

(e) Research Committee has undertaken a research project on "Accounting for Infla- tion" in collaboration with Messrs, Hindustan Lever Ltd., Bombay.

(f) An exposure draft on "Treatment of Fluctuating Foreign Exchange Rates in Accounts" was published in the Journal inviting views from members.

12. Shield fanel

After consideration of 106 entries received for fhe> competition Tor the best presented accounts, the following awards were presented;

Shield for the heat presented accounts during the year 1972-73

None of the annual accounts received for the competition merited the award of the Silver Shield this year.

Plaques for highly commended accounts

BHARAT COMMERCE AND INDUSTRIES LTD., for the year ended 31st December,

1972.

BRITANNIA BISCUIT COMPANY LTD., for the year ended 31st March, 1973.

PHILLIPS INDIA LTD., for the year ended 31st December, 1972.

13. Taxation Committee

(a) On the subject of compulsory audit for tax purposes about which members had evinced keen interest, supplementary submissions were made to the Select Committee of the Parliament urging that the original provisions regarding compulsory tax audit should he retained.

(b) A* authorised by the Council, the Commitlce submitted detailed proposals in regard to the research project on Tux Evasion to the Planning Commission but the Planning Commission has recently written to the Institute that it would not be in a posi- tion to finance the project. However, in view of the importance of the subject, it is proposed to approach the Government for approval of this research project under section 35(2A) of the Income-tax Act, 1961, so that it may be possible lor the Institute to col- lect necessary finance to undertake it on its own.

(c) A delegation from the Institute appeared before the Select Committee of the Parlhment to give oral evidence lo the Select Committee on the proposed provisions contained in the Delhi Sales Tax Bill, 1973.

(d) In addition to the Pre-Budget rind Post-Budget Memoranda submitted to the Fin- ance Minister, the Committee also submitted the following representations to the Central Board of Direct Taxes and the results thereof are indicated against each item:—-

(i/ Representation seeking allowance of depreciation on indigenous motor cars on the basis of their actual tost regardless of the price paid by the assesses. This representation has been accepted and necessary amendments have been made by (he Finance Act, 1975.

(if) Representation for the waiver of interest in cases where there is a delay in filing the return of income and the delay is unavoidable or unintentional-— pending for consideration.

(iii) Representation seeking amendments to the present mluN for valuation of per- quisites—pending for consideration.

(iv) Representation to remove the practical difficulties faced by the tax, payers which arise from implementation of the recent guidelines insued by the Government for foreign investments—pending for consideration.

(v) Representation to remove the practical difficulties arising from the transfer of assets by holding companies to their wholly owned subsidiaries and vice- vena—pending for consideration,

fvi) Representation in regard lo valuation of immovable properties —pending for consideration.

(vii) Rcpresent'ition rcgardins the valuation of unquoted shares of companies—

pending for consideration.

viii) Representation seeking wcilth-tax exemption in regard to the amount of com- pulsory deposit—The Board has regretted its inability to accept our sug- gestion.

fix) Representation on the deducibility of provision for gratuitv in computing tha profits and gains ol" business or profession'—The Board has regretted its inability to accept our suggestion.

(x) Representition seeking exemption for foreicn citizens from the operation of the Additional Emoluments (Compulsory Deposit) Scheme. 1974—The Board has regretted its jnnbilify to accept our suggestion.

(xi) Representation in regard to the forms of audit report under Sections 80HH" and 80J (6A) of the Income-tax Act—The form of audit renort suggested by "• and the one prescribed by the Board under Section 8OHH are similar.

The representation in regard to the form of audit report under Section 801 (6A) is under consideration of the Board.

14. Company Law Committee

The Committee dealt with a number of matters of which the notable ones are the following:—

(a) Representation to the Government on the provisions of Section 45MA of the Reserve Hank of India Act casting additional duties on the company auditors.

(b) Issue of the Statement on Non-Provision for Taxation in Company Accounts, (c) Finalisation of the Exposure draft of Guidance No'.e on Auditor's Duties under Section 45 MA of the Reserve Bank of Tndia Act.

A Seminar on ''Recent Trends in Company Legislation"—the first of its kind after the introduction of Companies (Amendment) Act, 1974-—was held on 23rd and 24th August 1975 at New Delhi.

15. Post Graduate Course Committee

(a) The details regarding the Management Accountancy Course examinations held -during the year appear in Appendix IX.

(b) The list of basic text books for intensive study and the reference books for Papers (I) and (2) of Group TI of the Management Accountancy Course were revised,

(c) Guidelines to assist the Advisory Groups which arc functioning at various centres for the Management Accountancy Course were finalised to enable them to function more effectively.

(d) A scheme to award "7th Conference of Chartered Accountants Scholarship'" to the b;st student undergoing Part II of the Management Accountancy Course has been .finalised,

(e) It has been decided to institute a "Tulsiram Devidayal Memorial Prize" for the candidate securing the 'nighest marks in Group I and passing the Management Accountancy Course Part 1 Examination (Both Groups) at on; sitting.

(f) Merit Scholarships of Rs. 500/- under the incentive scheme were gfanttd to 11 candidates for the purchase of books for the Management Accountancy Course.

(g) 10 candidates registered their names for practical training under Part IT of the course, during the year.

(h) The first issues of the Publications "'Management Quarterly" and "Economic Quar- terly" containing a digest of current articles with a view lo facilitate th? candidates prepar- ing for pap?rs (1) and (2) of Grout) II of the Management Accountancy Examination have been released. The annual subscription for these quarterlies is Rs. 150/-. For the candi- date undergoing Management Accountancy Course, the annual subscription is Rs. 110/-.

16. Post Graduate Course In Management Accountancy—use of deslgnntory letters

Members who complete the Post-graduate Course in Management Accountancy are at present entitled to use the letters "DMA" after their names. A case was brought to the notice of the Council where a University is granting the right to use the same designatory letters. Therefore, in order lo remove the confusion due to concurrent use of the same alphabets by (wo institutions, it 'has been decided to change our designatory letters to "DMAdCAVV The Chartered Accountants Regulations are being amended to give effect to this change.

17. Continuing Education Programme

The Post Graduate Course Committee organised the following Courses/Seminars in the Continuing Education Programme:—•

(i) Project Management at Bansalore on 12th, 13th and 14th April, 1974,

(>i) Corporate Tas Planning at Hyderabad on 19th, 20th and 21st April, 1974.

(iii) Quantification and the Accountant at Bombay on J7th, 18th und 19t'ii May, 1974. (iv) Statistical Sampling Techniques in Auditing at Delhi on 7th, 8th and 9th June,'

(v) ComputeMn ^Accounting and Auditing at Madras on 16th, 17th and 18th

(vi) Corporate Tax Planning at Bombay on 21st, 22nd and 23rd August, 1974.

(vii) Management Control Systems and Organisation Structure at Calcutta on ]9th 20th & 21st September, 1974.

(viii) Tax Planning for New Projects at Kanpur on 1st, 2nd and 3rd November, 1974,

(ix) Residential Course on Financial Managem:nt at Bangalore on 23rd 24th 25t'n 26th & 27th December, 1974.

(x) Introduction to Computer for the Accountant at New Delhi on 14th 15th 16th

& 17th February 1975.

(xi) Tax Planning & Financial Management at Jaipur on 19th, 20th & 21st April,

Besides the above, the Committee organised a Seminar on '"Accountability in the Public Sector" at New Del'hi on March' 30, 31 & April 1, 1975 in collaboration with Bureau of Public Entreprises.

18. Expert Advisory Committee

The Expert Advisory Committee rendered its opinion on six queries received by it.

19. Employment Committee

The number of members on the Employment Register on 31st March, J975 was 184 as against 148 on 31st March, 1974.

With a view to ascertaining the usefulness of the service of sending clippings from leading newspapers regarding vacancies for Chartered Accountants to the members borno on the Employment Register, a circular was sent to all th; candidates. The replies received indicate that this service is greatly appreciated by the members and that the Institute should continue rendering this service. Accordingly, this service is being continued in order to serve the needs of the members.

A list of candidates who have passed the Final Examination held in May 1974 and have opted for service in the public sector undertakings was sent to all the Council mem- bers with the request to help the young candidates by recommending their names to some of the leading public sector undertakings which needed Chartered Accountants. A similar procedure was followed in respect of candidates who had been declared succcessiul in the November 1974 examination also.

A representation on the holding of Certificate of Practice by Chartered Accountants in the employment of Government undertakings as sent to the Bureau of Public Enterprises witSt a request to consider the matter in all its aspects and to accede to the legitimate request of Chartered Accountant employees for permission to hold the Certificate of Practice.

A memorandum has also been s^nt to the Bureau of Public Enterprises emphasising that the highest positions in the accounts and finance divisions of public sector undertakings should be manned by professional people. The Bureau has been requested to take up fhe issue individually with the public sector undertakings and through the Ministries concern- ed that this philosophy takes a practical shape.

The workshop seminar on the theme "Towards a Brighter Future" had to be postponed as the dates originally fixed were close to the dates fixed for the Commonwealth Confer- ence of Accountants held in February 1975 at Delhi. Tt fs now proposed to be held some- times during October 1975.

20. University IJalson Committee

A workshop with eminent educationists and Council memtws was organised on 1.5th September, 1974 for a discussion on matters of importance in the field of education both for membership as also in the 'areas of post-qualification education and research.

An application has been made to the Gujarat University for recognition of the Institute for purposes of guiding students for post graduate degree by Research.

21. Newsletter and Journal of the Institute.

A newsletter has been started with effect from July 1975, which will be supplied, free of charg::, to all members of the Institute. The Newsletter will, inter alia, contain the Insti- tute's Notifications to meet t'ne statutory obligations. News & Notes, Statistics. Membership, etc.

At the same lime with effect from the July 1975 issu; the Journal has been made a priced publication for all including the members. Every effort is being made lo improve the quality of the Journal.

VII. OTHER MATTERS

1. Meeting with the Prime Minister

The President accompanied by the Vice-President and the Secretary met the Prime Minister on 24th July 1975. The Finance Minister and the Minister of Law, Justice and Company Affairs were also present ul the meeting. Among the points discussed was the proposal of the Institute to make it obligatory on all Companies to have Churtcred Accoun- tants to be in charge of t'neir Accounts Dspartment, so that there could be greater financial discipline and better financial management. The President also pleaded for the revival of the Study on Tax-evasion which the Institute had b:en entrusted with by the Government, but which WHS withdrawn owing to financial stringency. He also stressed the urgency of enactmg into law fne Taxation Laws (Amendment) Bill, 1973, as it was a progressive and healthy measure to ch;ck the evil of black money.

2. Co-operation with sfcter Institutes

The Council is of the view that there are m'any areas of mutual interest where it could¹ cooperate with th; Institute of Cost and Works Accountants of Tndia and the Institute of Company Secretaries of Tndia and that fticir activities in such areas should be co-ordinated, as far las possible. This has been recognised by the sister Institutes also and to explore possibilities in this direction, in respect of both the sister institutes two working groups have been formed—one for education and training and the other for research, professional prac- tice and discipline. Discussions are in progress and it is hoped that fruitful conclusions Will emerge which will be beneficial to members of all the institutes.

3. Elections—ban on canvassing

Tn the int-rest of maintaining better discipline and higher ethical standards in the elec- tions, the Council has decided to reintroduce the prohibition on canvassing, with the stipula- tion that each candidate would be permitted to send one circular letter to eacti voter in me constituency 'announcing his candidature and asking for his vote and also indicating certain specified particulars about himself.

The Council has also decided that the -views of the members of the Institute should bo invited. A circular letter will be sent to the members in this connection.

4. Library

During tVic year 672 books were added to the Central Council library at New Delhi bringing th= total number of books to 12075. Increasing use of the library was made ny members and students.

5. Nominees of the Institute on other hodies

The Institute is represented on various outside bodies by its members as p:r list enclosed as Appendix X.

6. Chartered Accountants' Benevolent Fund

During the year, the number of members increased from 193 to 198 and a sum of Rs. 11,750/- was disbursed by way of financial relief. The balance to the credit of the fund at the end of the year stood at Rs. 63.651 as against Rs. 67,206/- at the end of ttie previous year.

7. S. Vaidyanath Alyar Memorial Fund

The number of members of the Fund increased during the year from 38 to 44. At the fend of the year, the balance to the credit of the Fund was Rs. 25 328 as apunst .™ J * ' r" (" kt the end of thb previous year. A sum of Rs. 3,850/- was paid by way of scholarships to students.

Vill. SILVER JUBILEE CELEBRATIONS

The Institute which w(ls set up on 1st July 1949 completed 25 years of its existence on 30th June 1974 The period of one y.-ar commencing irom 1st July 1974 was celebrated as the Silver Jubilee Year.

A variety of piogrammcs, including conferences. seminars, lecture meetings workshops etc. were organised. A Special Committee—Tvie Silvei Jubilee Celebrations Committee- was appointed under the chairmanship of Shri S. K. Gupf.i. with a number of sub-commit- tees both at the ceniic and in the different regions for arranging the programmes.

On the eve of the commencement of (he Silver Jubilee Year—30th June 1974 tt short write up under the title "25 years in lh_> Service of tVie Niition" was published in leading dailies of the country. It highlighted the significance and importance of the role of Charter- cd Accountants in the service of the Sou sty nnd the country. On the flrM luly, to mark the beginning of the Silver Jubilee Celebrations, fellowship meetings wer- held all over the country. On the 10th July, the President of the Institute gavC a talk on the All India Radio on '•Social Responsibilities of auditors" The July 1974 issue of the Journal 'The Chartered Accountant" was releas-d as the Silver TnbMe^ Number It contained a number of articles highlighting different aspects of thi 'activities of the institute and its committees. A Silver Jubilee Commemorative seal was also issued.

The most notable event in the Silver Jubilee Celebrations was the Commonwealth Con- ference of Accountants—the first of its kind. It was held in the glittering Convention Hall of Ashoka Hotel in New Delhi between 5th and 8th February 1975. T'ne Conference Was inaugurated by the President of India, Hon'ble Shri Fakhruddin Ali Ahmed, and was addressed amonu others by the Union Minister for Finance Hon'ble Shri C Subramaniam, the Union Minister for Industry and Civil Supplies., Hon'ble Shri T. A, Pai and the Attorney General of India, SViri Niren Di. The Conference was attended by representatives of most of the important accountancy bodies in the Commonwealth. In addition abo"t 1250 Char- tered Accountants from different parts of the country participated in it Three hundred accompanying ladies participated in the social functions.

The t'nem* of the Commonwealth Confcrenci of Accountants was "The role of accoun- tants in economic development" and various subjects of topical importance revolving round this theme were discussed in five technical sessions on Measurement, Communication, En- vironment, Management 'jnd Structure. On the 5th February 1975, group discussions were held for selected delegates where the p ipers contributed for the Conference were discussed at length. In the evenings of the Conference davs social programmes were irrang^d for enter- tainment of delegates and other guests The overseas guests and Council members were invited for tea by the President of India. On the concluding day a Farewell Cocktail Patty was held at Hotel Oberoi Intercontinental.

While the participants were busy in the Technical Sessions, the accompanying ladies weru taken round the city to see various places of historical importance. All lady delegates and accompanving wives were received by the Prime Minister, Smt. Indira Gandhi, at licr residence.

The Council is happv to record that the Conference w"s a gnat success and was much appreciated by all the delegates, especially the guests from overseas A proposal for holding similar conferences in future within t'ne commonwealth countries was discussed at a meetine of th" heads of deletfites and the suggestion was welcomed The next conference is likely to be held in (he United Kingdom in 1980.

An all Tndia Students Meet at M.idias was held in August 1974 The programme includ.

ed not only a conference but also a sports competition among the students.

In the programme of workshops, th- first workshop was 'field between academicians and representatives of the Institute in September 1974 at New Delhi to discuss the following Wo topics:—

fl) Education and training—a need for integration; and (2) Coordination between the Tnstitute and the Universities in Research

Thia workshop was held under the aegis of the University liaison Committee of the Council. The suggestions which emerged as a result of the discussions are being followed Up.

A workshop on Social Cost Benefit Analysis h"s been organised bv the Professional Development Committee In three sessions—one at Bombay in June 1975 and the: otnc-two at New Del'ni in July and September The conclusions arrived at ithis workshop bring home to the profession the implications in respect of Social Cost and benefits which may enable the Profession to portray a net return to society flowing from an undertaking.

A workshop on 'Users of Financial Statements" will be held shortly by the Professional Development Committee with I'az representatives of various interests who have occasion to study and make use of financial statements, viz., i'he industrial and commercial houses govefnment^c ' "^ U n i°nS c h a m b ns of c o m m e r", concerned departments of

The Regional Councils have been equally active in organising at local level various- programmes including lectures, regional conferences, social get-togethers etc,

IX. REGIONAL COUNCILS AND THEIR BRANCHES

I. Regional Councils.

The Regional Councils continued to function in five Regional Constituencies viz Western (Bombay), Southern (Madras), Eastern (Calcutta). Cenrral (Kanpur) and Non hern (Delhi). The Regional Councils were active and arranged several conferences, seminars, lectures, study circle meetings etc.

2. branches of Regional Councils.

Six existing branches of the Western India Regional Co ,ncll viz., Ahmedabad, Baroda,.

Goa, Poona, Nagpur and Surat; eleven of the Southern India Regional Council at Banga- lore, Belgaum, Coimbatore, Ernakulam, Hyderabad, Maduni, Mangalore, Salem, Tiru- chirapalli, Trivandrum and Vijayawada; three of the Central India Kegional Council at Indore, Jaipur and Jamshedpur; and one branch of the Northern India Regional Council at Chandigarh, continued to function. Three new branches were opened—one of the Eastern India Regional Council at Asansol; one of the Northern India Regional Council¹ at Ludhiana and one of the Central India Regional Council at Ghaziabad.

Th" Council has now decided ta restrict the number of new branches coming up in the future as also to regulate their functioning by reducing their jurisdictional area. With, this objective in view tb

X. INTERNATIONAL RELATIONS

                J.T.  DESAT
         168    Y.  RAM A.SWAMY
 7       1 89   A-L.  SEHGAL
         2 00   H.F.  CAPTAIN
 9       2 27   S.  NAGARAJ
10       277    A.K.  MUKHERJEE
11       3 20   P.  PARTHASARTHI
12       388    H.M.  CONTRACTOR
13      455     D.P.  CHATERJEE
74

19     1737    S.K.  ROY  CHQUDHRI
20     1872    C.V.  SHAH
21     1943    A.  VARDACHARI  '
22     19"5    G.V.L.S.  SHARMA
23     2668    L.C.  TODARWAL
24     2974    S.  GHOSH
25     3323    S.S.  SHASTRY
26     3554    B.N.  VAKIL
27     4017    H.  VENKATESWARA^
28     4622    M.  GOPALKRISHNAN
29     6309    P.  VISHNU  MENON
3O     3i33    S.B.  DEBROY
31    11984    P.C.  MODI
32    I45U     R.D.  VANDERWALA

Total numb~r  of candidates  appeared  in  Both  Groups                       15               16
Total  n v n b :r  of candidates passed  in Both  Groups                       1                1
Passed i 11 Group  I                                                           1               Nil
Passed  in  Group  II                                                          2                2
T.>":al n~i n'nr  of candidates appeared  in  Group  I                        16               15
Total  rju/nSer  of  candidates passed in  Group  I                            2                2
Total  n'l-nber  of candidates  appeared in  Group  II                         4              .  4
Total  number  of candidates passed in  Group  II                              N il             2

                      Name  of the  Body                              Name  of the  representative
I.   The  General  Council  of the  Institute  of Applied  Man  power President ir,-cffice
      Research                                                      (Shri  N.C.  Krishnan)
z.  The  National  Productivity  Council        ,                    Shri Y.H.  Malegam
3.  The  AH India  Board  of Technical  Studies in  Commerce         Shri  P.B.  VijayarEghEvsn
4.  T h;  AH India Board  of Technical  Studies in  Management  .    Shri P.K.  Mallik
5-   Study  Group  for  Commercial  subjects—Directorate  Gene-      Shri  S.G.  Argadc
      ral of  Employment  and  Training
6.  Association  of Indian  Universities  Committee  for  assisting  in Shri  R.K.  Klianna  &
      the  preparation  of TI code  of financial procedure  for  Univer- Shri  V.  Raiarfmsn
      sities.