PRESIDENT Shri Ashok Chandak, FCA |
VICE-PRESIDNET Shri. R Bupathy, FCA | |||||||||
PERIOD 5th February, 2002 onwards |
SECRETARY Dr. Ashok Haldia | |||||||||
MEMBERS OF THE EIGHTEENTH COUNCIL (2002-2003) | ||||||||||
ELECTED MEMBERS: | ||||||||||
Shri Abhijit Bandyopadhyay | Kolkata | |||||||||
Shri Amarjit Chopra | New Delhi | |||||||||
Shir Ashok Chandak | Nagpur | |||||||||
Smt. Bhavna G. Doshi | Mumbai | |||||||||
Shri Gopal Prasad Dokania | Kolkata | |||||||||
Shri J.P.Gokhale | Mumbai | |||||||||
Shri K.S.Vikamsey | Mumbai | |||||||||
Shri Manoj Fadnis | Indore | |||||||||
Shri N. Nityananda | Bangalore | |||||||||
Shri N.D. Gupta | New Delhi | |||||||||
Shri N.V. Iyer | Mumbai | |||||||||
Shri Niranjan Saha | Kolkata | |||||||||
Shri P.P. Pareek | Jaipur | |||||||||
Shri Pankaj Inderchand Jain | Mumbai | |||||||||
Shri R. Bupathy | Chennai | |||||||||
Shri R.S. Adukia | Mumbai | |||||||||
Shri S. Gopalakrishnan | Hyderabad | |||||||||
Shri S. Santhanakrishnan | Chennai | |||||||||
Shri S.H. Talati | Ahmedabad | |||||||||
Shri Shantilal Daga | Hyderabad | |||||||||
Shri Sunil Goyal | Jaipur | |||||||||
Dr. Sunil Gulati | New Delhi | |||||||||
Shri T.N. Manoharan | Chennai | |||||||||
Shri Vinod Jain | New Delhi | |||||||||
NOMINATED MEMBERS | ||||||||||
Shri G.C. Srivastava | New Delhi | |||||||||
Shri Rajiv Mehrishi | New Delhi | |||||||||
Shri T.S. Narasimhan (upto 07-03-2002) | New Delhi | |||||||||
Shri K.B. Sharma | Jammu | |||||||||
Shri R.C. Chandiwala | New Delhi | |||||||||
Shri Sunil Bhargava | Jaipur | |||||||||
AUDITORS | ||||||||||
Shri A.C. Bubber, FCA | New Delhi | |||||||||
Shri Rajiv Rastogi, FCA | New Delhi | |||||||||
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1. THE COUNCIL |
The Eighteenth Council was constituted on 5th February, 2001 for a period of three years upto 4th February, 2004. In terms of the provisions of the Chartered Accountants Act, 1949, the Council should be composed of 30 members - 24 elected members and 6 members to be nominated by the Central Government. The composition of the Council for the year 2002-2003 commencing from 5th February, 2002 is shown separately |
2. COMMITTEES OF THE COUNCIL |
The Council, in terms of Section 17 of the Chartered Accountants Act, 1949 constituted on 5th February, 2002 three Standing, one Adhoc Committee and various Non Standing Committees to deal with matters concerning the profession. Having regard to the developments that had taken place sinice then, certain tasks-specific Board(s) / Group(s) / Committee(s) have been constituted, and while doing so, provision for representation to appropriate bodies / regulators have been duly made, whereever required. During the year ended 31st March 2002, 154 meetings were held of various Committees of the Council as compared to 101 meetings held during the year ended 31st March, 2001. |
3. AUDITORS |
Shri A.C. Bubber, FCA and Shri Rajiv Rastogi, FCA were the Joint Auditors of the ICAI for the year 2001-2002. The Council wishes to place on record its appreciation of the services rendered by them. |
4. STANDING COMMITTEES |
4.1 Executive Committee |
This Committee looks after the maintenance of various registers pretaining to students / members / firms, admissions, removal and restoration of members, consideration of matters relating to members including issue of certificate of practice, all matters relating to students including according permission to them, condonation of delay on the part of students / members / firms, matters connected with Branches including opening of the new Branches, opening of new Chapters aborad and those connected with employees, maintenance of accounts etc.
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4.2 Examination Committee |
The Chartered Accountants Final and Intermediate Examinations were held in May 2001 in 121 and 145 centres respectively spread over 81 cities, in addition to those at Dubai and Kathmandu and in November, 2001 in 127 and 149 centres respectively in 83 cities, in addition to those at Dubai and Kathmandu. The Foundation Examination was held in May, 2001 in 122 centres were set up at Bhilwara, Durg and Patiala. ADDITIONALLY, examination centre was also set up at Jalgaon and Ujjain from November, 2001 examiniations. For the convenience of students, effective from November, 2001 examinations the city of Chennai was divided into four zones to enable candidates to opt and appear from the centre(s) in the zone nearest to their residence. Further, effective from May 2002 examinations centres have also been opened at Bikaner and Udupi. |
The total number of candidates who appeared in Final, Intermediate and Foundation Examinations held in May, 2001 were 30045, 47106 and 21235 respectively and in November, 2001 were 31845, 55645 and 13820 respectively. |
In May, 2002, the Chartered Accountants Final and Intermediate Examinations were held in 137 and 144 centres respectively spread over 85 cities, in addition to those at Dubai and Kathmandu. The Chartered Accountants Foundation Examination was held in May, 2002 in 129 examination centres at 85 cities and also at Dubai and Kathmandu |
During the period under report, for the convenience of the candidates-
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Consultancy continued to be provided to few of the foreign institutions in the examination system and procedures. The Institute of Chartered Accountants of Nepal successfully conducted its Foundation and Intermediate examinations with the continued technical expertise and support of the ICAI. |
4.3 Disciplinary Committee |
This Committee assists the Council in the maintenance of the status and standards of professional qualification awarded by the ICAI. In discharging its avowed responsibility of conducting disciplinary inquiries against members whose cases ahve been referred to it by the Council upon prima facie opinion, during the period 1st April, 2001-31st August, 2002, this Committee held sittings on 38 occasions for a period spanning 78 days and at locations covering various parts of the Country During the period under report, the Committee concluded its enquiry in 83 cases, which also included cases referred toit in previous years. |
The period under report saw milestones in the discharge of one of the most importtant regulatory functions of the Council. While the Council formed its primafacie opinion on as many as 272 cases and considered 126 Disciplinary Committee Reports, the Disciplinary Committee, on the other hand, had conlduded its hearing in 83 cases as a forementioned. About 100 more disciplinary cases under consideration of the Council are likely to be disposed of in few months. The number of Disciplinary Committee are 39. The following are the data pertaining to complaint cases which are in process in terms of the provisions of the Chartered Acountants Act, 1949 and the Regulationjs framed thereunder at the end August, 2002
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A unique and rare achievement of the year was that in respect of a case referred to the Disciplinary Committee by the Council in April 2001, the former heard and concluded the hearing the submitted its Report in May 2001 and that Report was also considered by the Council in June, 2001. |
The Council is confident that if the disciplinary mechanism proposed to the Central Government on 3rd August, 2002 is approved, in its entirety, the Council shall be able to consider and dispose of the disciplinary cases within a reasonable time span. |
5. TECHNICAL AND PROFESSIONAL DEVELOPMENT |
Keeping in view the objectives of achieving and sustaining excellence, the Council continued to lay greater emphasis on technical research, professional development, continuing professional education of members and education and training of students, through its various non-standing Committee |
The Technical Committees set up by the Council continued its endevour in the fields of accounting auditing and allied areas. |
While a number of research activities have been undertaken / identified, a number of publications on accounting standards, auditing standards, expert opinions, background material for use in seminars, conferences and training programmes have also been brought out through the various Commiittees. These activities inter alia, include the following. |
5.1 Accounting Standards |
During the period under report, with the issuance of five new accounting standards (AS 24 TO AS 28) corresponding to the International Accounting Standards, the Indian Accounting Standards have almost come at par with the International Accounting Standards. The new accounting standards would result in more meaningful and transparent financial stantements. |
Supporting the effors of the ICAI towards better financial reporting in the country, the Securities and Exchange Board of India (SEBI) has amended the listing agreement to require listed enterprises to comply with the accounting standards issued by the ICAI from time to time |
The endeavour of the Accounting Standards Board is not only to bridge the gap between Indian Accounting Standards and International Accounting Standards by issuance of new accounting standards but also to ensure that the existing Indian accounting practices are in line with changed International thinking on various accounting issues. Towards this end, the Board has taken various existing Indian accounting standards for revision. While revised Accounting Standard (AS) 7, Construction Contracts, has already been issued, five existing Indian accounting standards are under revisions. |
The Board, with a view to ensure effective implementation of the accounting standards,has decided to issue interpretations and general clarification on accounting standards. During the period, the Board has constituted a Sub-Committee, i.e. Accounting Standards Interpretaion Sub-committee, to draft interpretations on accounting standards. The first Accounting Standards Interpretation has already been issued. The Board has also issued eight general clarifications on various matters arising out of accounting standards. |
Besides the above work on some other proposed accounting standards and other projects is in progress. |
The Sub-Committee of the Board on Accounting Standards for Governmental Bodies is also engaged in developing conceptual Framework and Accounting Standards for Governmental Bodies. |
An exhaustive and impressive edition of the Compendium of Accounting Standards containing all the accounting standards, interpretations general clarifications and other related announcements issued till 1st July 2002 had been brought out on the occasions of the Chartered Accountants' Day celebrated on 1st July 2002. ACD containing the same will be supplied free of cost along with a copy of the said Compendium |
The National Advisory Committee on Accounting Standards (NACAS) set up by the Central Government took up for consideration Accounting Standards so far issued by the Council of the ICAI, and had decided to recommend to the Central Government to prescribe Accounting Standards No.1 to No 23 out of the 28 Accounting Standards so far issued by the Council of the ICAI, and had decidede to recommend to the Central Government to prescribe Accounting Standards No.1 to No. 23. A report to this effect had been submitted by the NACAS to the Central Government on 26th August 2002. |
5.2 Auditing Standards |
The Auditing Practices Committee (re-christened as Auditing and Assurance Standards Board) was constituted in September, 1982 as one the important technical committtes of the ICAI on the lines of the standard setting procedure prevalent abroad. The composition of the Board had been broad based giving representations to RBI, SEBI, CII and Management Institute. The primary objective of the Board, as set out in the Preface to the Statements on Standard Auditing Practices (now renamed as Audint and Assurance Standards), is to review the existing Auditing Practices in India and to formulate the Statements on Standard Auditing Practices which turn are issued under the authority of the Council. While formulating the auditing standards the Board tries to integrate, to the extent possible, the provisions of the International Standards on Auditing issued by the International Federation of Accountants in the light of the conditions and practices prevailing in India . The Board also issues clarifications, Guidance Notes etc. on matters relating to auditing. |
During the year under report, the Board issued three indusry specific Guidance Notes for the benefit of the members, viz., Guidance Note on Audit of Companies Carrying on General Insurance Business (Revised), Guidance Note on Audit of Companies Carrying on Life Insurance Business and Guidance Note on Audit of Accounts of Members of Stock Exchanges (Revised). These Guidance Notes were issued in collaboration with the Committee on Insurance and the Committee on Financial Markets and Investor's Protection respectively. The Guidance Note on Audit of Expenses and Guidance Note on Engaements to Perform Agreed upon Procedures were also released during the year. |
The Statement on Standard Auditing Practices (SAP) 23 on related Parties and the Statement on Standard Auditing Practices (SAP) 24 ON Audit Considerations relating to Entitites Using Service Organisations were also issued during the year. |
During the year, the Board issued the format of the Auditor's Report on Consolidated Financial Statements pursuant to the issuance of the Accounting Standard (AS) 21 on Consolidated Financial Statements. |
As a major step towards bringing the reporting practices in India at par with the international practices and also as an attempt to bridge the "Expectation Gap", the Board revised the format of the auditor's report on financial statements issued in 1958. The revised format clearly brings out, inter alia, the responsibility of the management vis a vis the auditor as regards the financial statements, the scope of an audit, the basis of the opinion expressed by the auditor. The revised formar evoked positive response from all sections of the society. The Board is also in the process of formulation Statement on Standard Auditing Practices on Auditor's Report on Financial Statements. |
The Statement on Standard Auditing Practices on Risk Assessments and Internal Control has been issued as revised SAP 6. |
The Board, pursuant to the issuance of the Accounting Standard (AS) 26 ON Impairment of Assets, is in the process revising the Guidance Note on Audit of Miscellaneous Expenditure shown in the Balance Sheet. The Statement on Standard Auditing Practices (SAP) 10 on Using the Work of Another Auditor was published in the July, 2002 issue of the Journal. The Board also issued the Exposure Draft of the proposed SAP on Comparatives in July, 2002. |
A ICAI Handbook 2002 on Auditing Pronouncements comprising of two volumes, as on July 1, 2002 - Volument I of the Handbook containing the text of all the Guidance Notes on matters relating to auditing, which are generic in nature is in the process of release. A CD containing the aforesaid will also be given free of cost along with the said Handbok. |
The Board is also working to bring out Statements on Standard Auditing Practices and Guidance Notes corresponding to the International Standards on Auditing and the International Auditing Practices Statements, issued by the International Federation of Accountants. |
During the year, the Board also interacted with the Reserv Bank of India and other governmental and regulatory bodies. |
In August, 2001, a crisp comparative position of the Indian Accounting Standards vis-a-vis International Accounting Standards and US GAAP was brought out by way of publication title "A comparative Study of Accounting Standards - Indian GAAP, IAS & US GAAP" for providing an upto date reference material to the various useres of the financial statements. This publication was revised later taking into account the subsequent Indian Accounting Standards issued. |
A sizeable number of background materials have been brought for the seminars and conferences held all over India relating to Accounting Standards and its implications, International Accounting Standards and US GAAP'S Accounting aspects of Disaster Management, etc. |
5.3 Research |
Research Committee, since its inception in 1955, has been working relentlessly towards providing guidance to the members of the Institute in various areas of professional interest particularly, accounting and auditing, so as to enhance the value of the services rendered by the prfessional. The scope of the work of the Committee is vast, covering preparation and publication of guidance notes, research studies, monographs, technical guides etc. Many of the publications of the Committee have been found useful and appreciated not only not only by the members but also by others. Apart from the above, the views of the ICAI, on the issues referred to it, are sent to various regulatory bodies under the aegis of the Committee. During the year, the Committee continued its efforts towards enhancing the value of the services rendered by the profession by bringing out new publications / revising the existing ones. |
Realising the need for prescribing appropriate accounting treatment for the newly introduced financial instruments in the market, the Committee issued Guidance Note on Accounting for Equity Index Options and Equity Stock Options The Committee also issued Study on Accounting in Power Sector which reviews and evaluates the existing framework of accounting and financial reporting under which various principal power section entities, particularly State Electicity Boards, are preparing their financial statements. The study would be useful in effectively bringing about reforms in power sector. The Technical Guide on Accounting and Auditing in Hotel Industry had been released. |
The drafts of Guidance Note on Accounting for Securitisation and Guidance Note on Accounting for Oil and Gas Producing Enterprises are under consideration of the Committee. With the Introduction of trading in stock futures, the Committee has decided to issue Guidance Note on Accounting for Equity Stock Futures on a priority basis. Apart from this, the Committee has decided to undertake several new projects duiring the year, such as, Guidance Note on the manner of estimating future cash flows and discount rates, Guidance Note on Accounting for Investments of Venture Capital Companies, Technical Guide on Accounting and Audit of Roads, Toll Bridges and Other Infrastructure Projects. The Committee has also decided to undertake revision of certain existing publications brought out by it, such as, study on Share Valuation, Tehcnical Guide for Audit of Sugar Industry, Guidance Note on Provision for Expenditure and Section 43 B of the Income Tax Act, Besides the above, significant progress has been made in respect of other projects also which are at various stages of completion. |
During the year under the aegis of the Committee, views of the ICAI were sent to various Government and regulatory authorities (e.g., views on Accounting for Repurchase Agreements (REPOs) were sent to RBI and views on validity of Indian Traditional System of Accountancy (Bahi-Khata) were sent to the Department of Company Affairs). Apart from this comments on the Draft Cost Accounting Records Rules in respect of Milk Food, Bulk Drugs, Vanaspati, Formulations, Aluminium Telecommunication, Electricity, Plantation and Petroleum Industries and Cost Audit Report Rules were presented to the Department of Company Affairs. Most of the comments offered were accepted by the said Department. |
The Shield Panel, a sub-committee of the Research Committee, declared annual awards for the best Presented Accounts for the year 2000-2001, in respect of various categories. The Shields were presented by the then Hon'ble Union Minister of Law, Justice & Company Affairs Shri Arun Jaitely at the Annual Function of the ICAI held on 2nd February, 2002. |
5.4 Corporate Laws |
In the light of several reforms that were introduced by the Government in various corporate legislative bills, the Corporate Laws Committee undertook a number of significant initiatives. Top priority was given to the professional challenges and opportunities and also to improve upon the professional independence, excellence and integrity. As a measure of self-discipline and regulation, the Committee forwarded a Note to the Department of Company Affairs on suggestions relating to disqualification of auditors as contained in Section 226 3(e) of the Companies Act 1956. The Interaction with the Department of Company Affairs was pro active and the Committee made a presentation on the Bills relating to insolvency and winding up on companies before the said Department and the Parliamentary Standing Committee. Suggestions were also submitted to the Department of Company Affairs on the relaxation in managerial remuneration. The Committee also conducted Training Programmes for the official of the said Department in four regions. Seminiars, All India Residential Course and Conferences were conducted during the year to educate and interact with the members at large. Study groups on various matters of professional interest were also constituted. The year 2001-02 was by and large active and a historical milestone for the Committee in pursuance of its significant initiatives. |
5.5 Fiscal Laws |
As in the past., the Fiscal Laws Committee conduted a Workship Union Budget - 2002. Both direct and indirect taxes were discussed. The Chairman Central Board of Direct Taxes and senior Government dignitaries attended the Workshop. The Committee also organised a Symposium on Union Budge. The Post Budget Memorandum -2002 was submitted to the Government . Earlier, the Committee had submitted its Pre-Budget Memorandum - 2002 to the Government. Many of the suggestions had been accepted and incorporated by the Government in the Finance Bill 2002. |
Then Finance Act 2001 introduced a new law relating to transfer pricing. The Central Board of Direct Taxes notified the rules for transfer pricing. The Government has substantially accepted many of the suggestions made by the Fiscal Laws Committee in this regard. |
The Committee published the Guidance Note on Audit under section 115JB of the Income -tax Act, 1961. The Committee has published a Guidance Note on Report on International Transactions under Section 92E of the Income tax Act, 1961 (Transfer Pricing). The Committee also brought our two important publications relating to public charitable institutions. The first one was a Guidance Note on Audit of Public Charitable Institutions under the Income-tax Act and the second one was Taxation of Charitable Trusts and Institutions - A Study. |
The Cmmittee organised jointly with the Corporate Laws Committee an All India Conference on taxation and corporate laws in Indore. It also organised a two-day seminar on taxation and corporate laws at Jammu. It organised a one-day seminar on Value Added Tax at Pondichery. An All Kerala tax conference was organised at Kochi under auspices of the Committee, the Fiscal Laws Committee of the SIRC and Ernakulam Branch. |
The Committee also submitted detailed suggestions on the draft rules for valuation of perquisties notified by the Government. Apart from this, the Committee submitted detailed suggestions for Central Direct Taxes Advisory Committee and also exchanged views with the In-house Committee on Depreciation and MAT provisions. |
5.6 Financial Markets and Investors' Protection |
Realising the growing need of Corporate Governance and Investor Protection, the Committee on Financial Markets and Investor's Protection charteredd its action plan for the year 2001-02 with significant number of initiatives. Its interaction with the regulators such as Department of Company Affairs and the Securities and Exchange Board of India were by and large pro-active. The Committee submitted suggestions to the Government on various items such as revival of the primary & secondary capital markets, issues relating to takeover code, issues relating to speculative transactions, programmes on investor's protection etc. The Committee focussed mainly on two major issues i.e. emerging role of chartered accountants in corporate governance and bringing awareness among the investors on the intricacies in the capital market. Study Groups were constituted on different subjects relevant to the capital market, investor protection and to the members at large. Initiatives of the year include:
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5.7 Expert Opinions |
The Expert Advisory Committee has been constituted by the Council of the ICAI with the objective of answering queries of the members of the Institute on matters involving accounting and auditing principles and related areas. |
Ther Expert Advisory Committee receives queries on wide ranging subjects. During the period under report, the Committee finalised opinions on 63 queries. The Committee finalised opinions on 63 queries. The Committee has not only answered queries on issues involving accounting principles established in the form of Accounting Standards, Guidance Notes, etc., but has also answered queiries in unconventional areas such as accounting for floriculture, swap transactions, factored debts and credit cards. Thus, the opinions of the Committee not only provide an interpretative framework of the established accounting and auditing principles, but also lay down principles in those areas in respect of which no authoritative pronouncements have been established so far. With th issuance of a number of accounting standards by the ICAI during the last couple of years, on subjects such as segment reporting, deferred taxation and consolidated financial statements, which have been introduced in the country fr the first time, the clarificatory role of the Committee has assumed even grater importance. The opinions finalised during a year are published in a Volume of Compendium of Opinions. |
Subsequent to the issuance of Volumes XVIII, XIX and XX of the Compendium of Opinions, a review was made of 20 Volumes of Compendium of Opinions taking into considerations the various pronouncements made by the ICAI subsequent to the issuance of respective Compendiums and having regard to the present legal position. A separate booklet containing the said review is likely to be brought out soon. |
So far, 20 Volumes of the Compendium, containing opinions finalised by the Committee upto January 2001 have been released for sale. Volume XXI of the Compendium, containing opinions finalised by the Committee between February 2001 and February 2002, is under release. |
The opinions of the Expert Advisory Committee represent the opinions of the members comprising the Committee and not necessarily the opinions of the Council of the ICAI. The opinions are based on the facts and circumstances of the query as supplied by the querist, accounting /auditing principles and practices and the relevant laws applicable on the date the Committee finalise the particular opinion. While finalising the opinion, the Committee also considers not only the national developments in the areas concerned but also the relevant international literature including the emerging thoughts on the subject. |
The Committee replies to the quries in accordance with the Advisory Service Rules framed by the Council. During the period under report, the Advisory Service Rules of the Committee were revised. As per the revised Rules, a fee of Rs. 25,000 per query is charged where the query relates to an enterprise whose equity or debt securities are listed on a revognised stock exchange, or to an enterprise having an annual turnover exceeding Rs 50 crore. In any other case a fee of Rs. 10,000 per query is charged. |
5.8 Continuing Professional Education |
Since its inception, the ICAI has always recognised the significance of Continuting Professional Education (CPE) for its members and pursued it as one of the avowed objectives so as to ensure that its members maintain the quality of service and knowledge expected of them. |
In this age of information explosion and the rapid changes in technology, trade and industrial environment, the need fo continued professional updation is supreme. To enable members to maintain the high standards of professional services, the CPE Committee is providing inputs to members by way of Seminars, Lectures Background Material and use of the electronic media. This provides the sharpening of professional skills so that the word "Chartered Accountant" is synonymous with excellence in services. |
The ICAI decided that CPE requirement would be mandatory for the members in practice, with effect from 1st January, 2003 and for the members in Industry it would be recommendatory initially. However, the Council also decided that for members above 65 years of age, the requirement would be recommendatory. |
The ICAI is in the process of issuing a Statment on Continuting Professional Education as a direction to prescribe the CPE requirement with which the concerned members of the ICAI should comply from the stipulated date prescribed for the purpose. |
The Committee has also decided to develop a comprehensive computerised system towards recording and reporting of CPE activities. It has also decided to record attendance of members through the use of 'Smart Card' once they attend any programme ornised by the ICAI across the country. |
The ICAI earlier conducted CPE programmes through Teleconferencing but recently discontinued the same due to technical reasons and huge cost involvement. The Committee intends to organise programmes through Web-based learning which would be cost efective and readily accessible too. |
The Committee continued to conduct the Post Qualification Course for the benefit of the members. The Committee has been taking appropriate measures to popularise these courses. |
In order to encourage excellemce in the area of accounting auditing, management economics and allied areas, the Committee continued to publish the quarterly research magazine Management and Accounting Research. The journal attracts technical contributions from experts both in India and from aborad. |
As CPE requirement (i.e. 6 hours per annum and 25 hours in a block of 3 years) is becoming mandatory with effect from 1st January, 2003, the Committee in addition to holding programs and pursuing its basic objectives also proposes to concentrate on the following :-
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5.9 Professional Development |
The Professional Development Committee continued its efforts towards increasing the professional opportunities available to the members by exploring / pursuinig new / existing areas where the expertise of the members could be utilised in a productive and frutiful manner. As a part of this process, it continued to interact with regulatory authorities, users of services of the profession etc. both in India and abroad. |
The major achievements / endeavours of the Professional Development Committee during the year are given below:
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5.10 Peer Review Board |
In March 2002, a Peer Review Board was constituted with provision for adequate representation to such outside bodies as Department of Company Affairs, Comptroller and Auditor General of India, Reserve Bank of India, Securities & Exchange Board of India and Federation of Provision has also been made for eminent personalities as special invitees which include a former President of the Insititute, Chairman IR&DA, former Judge of Rajasthan High Court, CMD of Bank of Maharashtra. |
Later,a Statement on Peer Review was issued under the autority of the Council. The main objective of Peer Reivew is to ensure that in carrying out theier professional attestation services assignments, the members of the ICAI (a) comply with the Technical Standards laid down by the ICAI and (b) have in place proper systems (including decoumentation systems) for maintaining the quality of the attestation services work they perform. Peer Review will be introduced in three stages with different types of practice units to be included in each stage. The first stage will be initiated from 1st April, 2003 |
The Board has so far, held two meetings. At its first meeting, the Board constituted groups for preparation of Peer Review Manual. Groups have also been set up to consider laying down Board's Procedure and Rules as well as Selection, Training and Regulation of Peer Reviewers. |
At the second meeting, the draft of the Peer Review Manual was considered and the same is under finalisation. Manual on Quality Control Standards for compliance with the Statement on Peer Review has also been prepared and the same is under the consideration of the Board. |
5.11 Campus Interviews |
Campus Interviews introduced in September, 1995 continued to receive an overwhelming response from both the employing organisations (public and private Sectors including mulnatinationals) and the newly qualified members. During the year, 61 teams of employers had looked into the bio-data of about 4020 young Chartered Accountants. Encouraged by the response to the scheme the ICAI through its Committee for Members in Industry organised Orientation programmes at various interview centres to train young members to attend the Interview Boards with greater confidence. The Placement Seminars were also organised at Kolkata, Mumbai and Chennai in September, 2001 to familiarise the companies with the skil and knowledge profiles of Chartered Accountants and the options for their gainful engaements in different organisational functions. Also, a booklet - How to face an Interview Board was sent to the candidates appearing in the Campus Interview for their use. |
5.12 Information Technology | |
5.12.1 |
Information Systems Audit (ISA) Course - Registration
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5.12.2 |
Computer Accounting and Audit Techniques (CAAT) Course |
5.12.3 |
Hands on Exposure and Hands on Technology Workshops: |
5.12.4 |
International / All India Technology Conference : |
5.12.5 |
Website Development |
5.12.6 |
Software Development for Institute's operations |
5.12.7 |
Collaboration with 'The Managementor' knowledge Portal: |
5.13 Public Relations Activities Undertaken |
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5.14 Trades Laws & WTO |
The Committee on Trade Laws and WTO was constituted with a mission to establish and assure the expertise and authority of the ICAI in all matters of conceptualization, formulation, negotiation, implementation of international trade regimes including the WTO regime in general, both nationally and internationally and to create and expand a base of expertise in these matters among the membership of the ICAI through such ways and means as are considered to be most effective so as to fulfil stated and unstated national aspirations, concerns and needs in this regard. |
The Committee has been in existence from February 2001 and has as a part of its threefold activities namely - (1) awakening campiagn (2) identification of concerns - negotiation skills, formulating positions / strategies and (3) education to develop enough expertise to address the concerns to safeguard the sovereignty has undertaken various activities for identification of issues and concerns arising out of implementation of the WTO agreements. The Committee has had five meetings since February 2001 wherein apart from the members of the Committee, Sr. functionaries from Govt. of India in Minstry of Commerce, Directorate of Anti-dumping and Safeguards have attended and fruitfully guided the deliberations during the course of meetings. The Committee though in its nascent stage of working but has endeavoured t come a long way during the course of last 18 months of its active existence. |
Major initiatives undertaken by the Committee are as under :
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6. INTERNATIONAL INITIATIVES |
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7. VISION AND RESTRUCTURING |
The Committee on Vision & Restructuring was constituted to carry out a strategic exercise in view of the rapidly changing global economic scenario and its impact on the economics of India and Asia-Pacific. The Study on Vision & Restructuring was commissioned with an ambitious attempt towards positioning the ICAI and the Profession in the 21st century and broad base and restructure it to meet the challenges in the new Millennium. Methodology adopted for Vision Process included desk research study, data gathering through surveys, direct interviews, workshop, task forces, opinion forums for colecting input data from members and user of the services of Chartered Accountants and services of a highly renowned Management consultant. |
The Committee was later reconstituted with a view tooversee the profession-wide implementation of the future vision. The main objectives of the Committee are to keep the vision process spread to the grassroots of CA fraternity and to sustain the vision as the project moves forward into the implementation phase. The Vision Document has been disseminated not only to the members but also to the cross section of teh concerned group / stakeholders. Multilevel vision implementation at various levels. Suggestions were sought from the Council for formulating the activity-wise implementation schedule. A comprehensive business plan was developed detailing the implementation strategies for adoption by the Council. A report containing the detailed business plan in implementation phase is under finalisation stage and is expected to be released by end of September, 2002. The Committee has since withdrawn. |
8. OTHER ACTIVITIES |
8.1 Administration and Human Resource Development |
In view of the rapidly changing global scenario and changing expectation pattern of the members and students of the ICAI regarding services offered, it was felt necessary to re-align the human resource of the ICAI to cater to these requirements. Accordingly, programmes were organised focussion on following areas:
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The ICAI considers that human resource is the prime mover for achieving the goals of the organisation. Therefore, it also launched various welfare schemes for its more than 500 employees such as financial assitance to the wards of the employees for pursuing higher studies, enhancement in minimum persion etc. |
Special drive is already on for identification of suitable additional human resources, having regard to the current requirements and the additional activities, which are to be carried out in the near future. |
8.2 Use of Information Technology in Member's and Students' Services |
The present computer system installed in 1998 is now over four years old and the processing is largely based on regional databases. The architecture has the drawback that the members and students sometimes address their letters to one office which does not have their physical files and that their current details are available with other respective regional offices. |
In order to take care of such eventualities and to make use of the advancement in Information Technology in carrying out the responsibilities of the office IT infrastructure is being revamped to include and integrate various sections / regional offices working and bring them under one umbrealla project. The proposed system will ensure that the current information is available at all the locations and that certain updates / queries can be handled over the internet from any place in the world in a secured way. |
8.3 All India Conference of Chartered Accountants |
To provide a platform for intellectual sharing of professional excellence and achievements in all endeavours from across the diversified membership of the profession among all the segments, the All India Conference of Chartered Accountants is held at periodic intervals. |
The next i.e. 15th All India Conference of Chartered Accountants is scheduled to be held in New Delhi on 6th, 7th and 8th December, 2002 and the same is expected to be attended, as in past, by a large number of members of the profession besides delegates from professional bodies in India and abroad. |
8.4 Centres of Excellence |
In order to provide the much needed opportunity to youger members, to acquire post qualification training in the area of their choice, state-of-the-art centres of excellence, at least one in each region, was decided to be set up and to this end, a centre is likely to come up soon in Hyderabad on a plot of three acres. Efforts are on to set up such Centres soon in other Regions. |
8.5 Audit Committee |
The Audit Committee overviews the Institute's reporting process to ensure the true and fair exhibition of the results of the activities undertaken by the ICAI. The Committee seeks to ensure that:
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8.6 Committee on Insurance |
The Committee on Insurance has been in a perenial endeavour to:
The Committee has chalked out is Action Plan for the year and has committed itself to the furtherance of its objectives. The Action Plan inlcudes launching a post qualification course on Insurance and Risk Management for its members. Also, the announcement of a Modular Training Course for Surveyors and Loss Assessors is on principle approval by the IRDA. The Committee is in the process of developing the detailed course contents and training scheme for the courses. |
9. OTHER ACTIVITIES |
9.1 Financial Report Review Panel |
In July, 2002, the much awaited Finacial Report Review Panel (FRRP) was constituted. Provision has been mae to provide for adequate representation to various outside bodies. |
This Panel would suo motu look into the published accounts of different organistions, including Banks and Financial Institutions. If any deficient and / or irregularity is / are observed, as result of the Panel would from the basis for initiating action under the disciplinary mechanism that would be in place. |
In order to make, the Panel more effective and to ensure timely disposal, the Council has sought, by way of amendment in the Chartered Accountants Act, 2949, from Central Government powers as are vested in a Civil Court, e.g., power for discovery and production of any documnet from the organistion concerned. |
Pending amendment in the Act, the FRRP so constituted would start discharging its functions without the aforementioned special power |
9.2 Annual Function of the ICAI |
The 52nd Annual Function of the ICAI was held on 2nd February, 2002 at Ashok Hotel in New Delhi, Hon'ble Shri Arun Jaitley, then Union Minister of Law, Justice & Company Affairs was the Chief Guest Shields and Plaques to the winners of the Institute's prestigious awards for the Best Presented Accounts and examinations conducted by the Institute, shields and certificates of appreciation to the outstanding Regional Council and Branch of the Institute, were awarded. The function was attended by a very large number of invitees including, senior Government officers, members, students, officers and staff of the ICAI. The Chief Guest showered flowers of appreciation on the profession of Chartered Accountants. |
9.3 Amendments in The Chartered Accontants Act, 1949 and the The Chartered Accountants Regulations, 1988 |
A. Working Group for Review of Amendments in the Chartered Accountants Act, 1949 and the Regulations framed thereunder: |
As early as in 1984, a set of proposals for amendments in the Chartered Accountants Act, 1949, was forwarded to the Central Government for its consideration and approval. The same was returned by the Government in August, 1992 for making an overall review of the said proposals, in the light of certain developments / discussions. |
At the relevant time, the Perspective Planning Group (PPG) constituted by the Council was in place to examine, among other, the likely increase in member ship during the next decade and steps that were necesary to meet the challenges. The PPG submitted its Report to the Council in December, 1992. Thereafter, the Council in June, 1993, reviewed the proposals submitted to the Central Government in 1984, along with those recommendations of the PPG, which had been accepted by the Council and also required amendments in the Act. Later the amendments approved by the Council were forwarded to the Central Government in October, 1993 for the latter's consideration and necessary action. Subsequent to the submission of proposals in October, 1993, as aforesaid, several rounds of discussions covering the entire proposals were held at differnet intervals between the Department of Company Affairs and the ICAI, from 1994 to the beginning of March, 2001. |
In March, 2001, the Central Government while referring back certain earlier proposals (relating to amendments in the Regulations) inter alia, specified as regards the amendments to the Act that the pending proposals would be taken up without further discussions with ICAI. |
However, in October, 2001, the Central Government requested the ICAI to consider the latter's proposal regarding amendments to the Act afresh and while doing so, the ICAI was asked to keep in view the changed economic scenario, challenges being faced by the ICAI due to other recent developments, such as, the changes being brought about by WTO related developments etc. |
Towards this end, the Council of the ICAI at its meeting held in March, 2002 decided to constitute a Working Group for review of amendments in the Chartered Accountants Act, 1949 and the Regulations framed thereunder. The Group was composed of six members of the Council - 5 elected members (one from each region) and one Government nominee on the Council. The Working Group was asked to make its recommendations in light of -
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The Working Group was subsequently asked to review the amendments in the Act in the first Phase and the amendments in the Regulations in the second phase. Accordingly, the Group undertook the task of review of amendments in Chartered Accountants Act, 1949 and submitted its Interim Response to the Council at the said meeting, the Group finalised its recommendations and submitted its Report covering the amendments in the Act on 29th considered the recommendations of the group and finalised its recommendations on the amendments to the Chartered Accountants Act, 1949 for consideration of the Central Government |
The draft amendments in the Chartered Accountants Act, 1949, finalised as a foresaid have been submitted to the Central Government on 3rd August 2002. It is hoped that the Government would take appropriate steps to effect the amendments sought for as early as possible. |
B. Amendments in the Chartered Accountants Regulations, 1988: |
(i) Post Qualification Course on Information System Audit. |
During the year under report, the Central Government, accorded its final approval to the amendments proposed in Chartered Accountants Regulations, 1988, facilitating a new Post Qualification on Information System Audit. The said amendments have been brought into force effective from 29th September, 2001 |
(ii) New Post-Qualification Courses Proposed: |
Keeping in view the changes that are taking place in economic scenario of the country in particular and across the globe in general and for equipping the members of the ICAI to face the challenges posed by such developments, the Council of the ICAI has proposed two new Post Qualification Courses to the Central Government. These Courses are on Insurance & Risk Management and Trade Laws & WTO respectively. he necessary amendments in the Chartered Accountants Regulations, 1988 are under consideration of the Central Government and after its in-principle approval they would be exposed to the members at large for comments. |
(iii) Other Amendments proposed: |
Keeping in view the difficulties faced by the senior members of the Institute who have attained the age of 65 years and above and those who are physically handicapped, the Council has decided to grant certain concession to such members in the matter of payment of annual membership fee. The amendements in this behalf have been proposed in Regulation 6 to the Central Government. In addition, the Council has also proposed certain amendments in Schedules 'C' 'D' and 'E' seeking power with the Council to fix various fees and decide about the syllabus for these Courses. These amendments are under consideration of the Government and the same after its in priciple approval would be notified for public comments. |
Past Presidents' Meet |
The recent collapse of corporate giants in the US brought to the centre-stage the need for strengthening the mechanism of corporate governance so that is meets the underlying purpose. The matter, is having critical significance to the profession, as the accountants are on of the limbs of the corporate governance framework. The Prime Minister of the country also urged all concerned to take stock of the position in the Indian context in generality, and as a corollary to the same, the ICAI took the initiative to formulate its response to the above. |
It was, therefore, decided to seek the advice and guidance of the past Presidents and others who were part of the decision making process of the Council levels in the past. As a first step towards this direction, a meeting of the past presidents out of 32 living past Presidents were present. The detailed deliberations that took place at the meeting endorsed the line of thinking of the present Council. Similar Meets with past Council and Regional Council members at four different locations where the Regional Councils are situated had been held later. The remaining one is scheduled to be held soon. |
9.5 Central Council Library |
The Central Council Library Provides Books, Journals, Newspapers and Reference facilities to Members, Students and Faculties of differnt Directorates of the ICAI, alongwith a list of Articles compiled from various Professional Journals and Newspapers, a list of which is published every month in the Institute's Journal under the title Reference "Accountant's Browser". Reference service is also provided to the Researchers and Foundation Course Students as a special case. Noida Office of the ICAI, has also been provided with Library facilities by the Central Council Library. Networking through Delnet is Operational and the Computerisation of Library material including Books, Journals, Articles, Members record is available on Enquiry & Webmodule. A storage base of more than 10,000 articles including article including article from ICAI Journal "Chartered Accountant" is also available. Besides above an appropriate Version of LAN is in place providing the most reliable and empowered corporate database of 8000 companies. The database provides financial statements ratio analysis fundsflows, product profiles, return & risks analysis, fundsflows, product profiles, return & risks on the stock markets etc. Library is also providing services to the Institute's Website such as Accountant's Browser, list of recommended books for Foundation, Inter and Final Chartered Accountancy Courses, List of Recent Additions and List of Articles (Chartered Accountant). |
Besides above, Library facilities are also provided ad the regional centers and Branches throughout the Country, Liberal Grants are provided to associations and study circles recognized by the ICAI for development of the Libraries. The Council has taken a decision to provide special grants for strengthening Library facilities available at all Regional Councils and Branches. |
9.6 Editorial Board |
The Editorial Board is continuously striving to fulfil its mission i.e., to convey regularly to the members, professional knowledge, matters of interest of profession, matters relating to the ICAI and its activities and such other matters as are deemed to be educational / professional value in a structured manner, through the Journal 'The Chartered Accountant' and any other means. 'The Chartered Accountant' continues to focus on further developing the core competencies of the members on the accounting, auditing and allied areas. Based on the feedbacks received from members and other subscribers efforts are put into, to continuously enhance the quality of the Journal to enable it to act as a dynamic carrier of knowledge regarding new profesional skills and other upcoming and ground - breaking professional fields. The Journal continues to maintain high professional standards and was well received throughout the period under report. The reach and impact of the Journal can be gauged by its circulation figure, which is nearly hundred and fifty thousand. Now the Journal is increasingly read by various organizations / corporates who are subscribing the Journal. |
During the period under report following were the significant activities of the Editorial Board:
The Editorial Board continjues to take appropriate measures to improve the overall quality and appeal of the Journal to make it highly sought after professional magazine among the whole commercial community. |
10. MEMBERS |
10.1 Membership |
During the year ended 31st March 2002, 4646 new members were enrolled by the ICAI bringing the total membership to 101221 as on 1st April, 2002 |
During the year ended 31st March, 2002, 2486 associates were admitted as fellows, compared to the figure on 1971 in the previous year |
Statistics of Members as on 1.4.2002 | |||
Category of Members | Associates(1) | Fellows(2) | Total Columns(1) & (2) |
Holding COP | 27,960 | 42,196 | 70,156 |
Others | 26,278 | 4,787 | 31,065 |
TOTAL | 54,238 | 46,983 | 1,01,221 |
10.2 Chartered Accountants' Benevolent Fund |
Established in Decmeber, 1962 the Chartered Accountants' Benevolent Fund continues to provide financial assistance to needy persons who are or have been members of the Institute and their dependents, for maintenance of the dependents, their dependents, for maintenance of the dependents, their educational and medical needs etc. The number of Life members of the fund increased from 27122 as on 31st March, 2001 to 31370 as on 31st March, 2002. The special drive under taken during the year to mobilise support for increasing the corpus resulted in getting a significant contribution of more than rupees one crore dur to the generous contribution made by the members. If sizeable members aborad respons positively, much more can be achieved to mitigate the hardship of members and their families in distress. The financial particulars of the fund are as follows: |
During the year Ended 31-3-2001 | During the year Ended 31-3.2002 | |
Financial Assistance Provided | 29.25.450 | 26,97,2002 |
Adminstratve Expenses | 80,097 | 1,05,251 |
Surplus / (Deficit) of the Fund | (4,63,514) | (4,47,461) |
Balance of the Fund | 26,25,279 | 21,77,818 |
Balance of Corpus | 1,40,68,500 | 1,82,38,500 |
Sharing the nation's concerns over the victims of the devastating Gujarat Earthquake that had shaken the country in January, 2001, with generous support and help of its members and others, a modest contribution of Rs. 51 lakhs was handed over to the Prime Minister of India, towards Prime Minister's National Relief Fund, besides token monetary assistance to members in areas around Bhuj and Kutch. In order to assuage to some extent the huge loss suffered by members in Bhuj and Kutch, the Council was able to persuade the Reserve Bank of India to allot additional work to members there. |
11. STUDENTS |
11.1 New Scheme of Education and Training |
The year witnessed th introduction of the New Scheme of Education and Training effective from 1st October 2001 and several significant developments associated thereto. The detailed deliberations and recommendations of the Board of Studies concerning various issues relevant to the implementation of the new scheme and their subsequent consideration by the Council paved the way for appropriate decision by the Council and ensured implementation of the new scheme. This involved, inter alia, the following -
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11.2 Students' Services |
11.2.1 The Board released in time, comprehensive study materials covering the various subjects in the curriculam prescribed for Professional Education (Course I and Course II) - books for Professional Education (Course I) and 8 books for Professional Education (Course II). The study materials for the 8 subejcts of Final new syllabus were also released during the year. Steps were also initiated simultaneously to get the study materials prepared by the Board reviewed by outside experts. |
11.2.2 Hindi study materials for Professional Education (Course I Course II) were also made available to the students. Steps have been initiated to bring out Hindi Study materials for Final at an early date. |
11.2.3 In addition to providing study materials for students covered under the new scheme, study materials for the Foundation, Intermediate and Final Course for students covered by the earlier by the earlier scheme were also revised and updated in appropriate cases. |
11.2.4 The Board also brought out other useful educational inputs for the benefit of students in the form of suggested answer volumes for the questions set in May /November Examination, Revision Test Papers and answers, free supplementary study papers on amendments in Corporate and Taxation Laws. |
11.2.5 Steps have also been initiated to bring out supplementary study material for identified core areas in selected subjects to enable the students to have better grasp of the subjects. This would include booklets containing typical problems and their solutions in Accountancy / Management Accounting and Financial Analysis. |
11.2.6 A scheme for Compulsory Computer Training for 250 hours prior to registration for practical training has been finalised including syllabus for the same. The scheme envisages imparting of the training through -
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11.2.7 Faculty members of the Board visited mofussil centres like - Ludhiana, Jammu, Indore, Chandigarh, Kochi, Kanpur and interacted with the Students by delivering lectures in crash courses / revision classes and by counselling them. |
11.3 Students' Statistics |
11.3.1 With the introduction of the new scheme of Professional Education Course, effective from 1st October 2001, registration for the Foundation Course was discontinued. The total number of students registered for Foundation Course during the year was 29209. |
11.3.2 The total number of students enrolled for the Foundation Course, Intermediate and Final Course during the year ended 31st March 2002 and 31st March 2001 are as under: |
Course | 2001-2002 | 2000-2001 |
Foundation | 29,209 | 35,999 |
Intermediate | 17,555 | 23,405 |
Final | 11,524 | 9.026 |
11.3.3 The total number of students registered for New Professional Education (Course I) and (Course II) from 1st October 2001 to 31st March 2002 in different regions was 5006 and 11848 respectively. |
11.3.4 The total number of students on the rolls of the Board of Studies as on 31st March 2002 (excluding those students who are registered for Foundation / Professional Education Course was 2,47,147 as against 2,35,268 as on 31st March 2001. |
11.4 Accreditation Scheme |
11.4.1During the year ended 31st March 2001, accreditation was granted to 11 more institutions for organising classes for Foundation Course and two more institutions for Intermediate Course |
11.4.2 The accreditation scheme was also extended to the new Professional Education (Course I) and (Course II) and guidelines for organising classes by accredited institutions under new scheme were finalised and the process of granting accreditation under the new scheme based on the recommendation of the Regional Monitoring Committees was set in motion. |
11.4.3 During the year ended 31st March 2002, accreditation was granted to 38 institutions (including 6 Branches and 1 Regional Council) for organising classes for students of Professional Education (Course I) and to 16 institutions (including 1 Regional Council and 5 Branches) for (Course II). As on 31st August, 2002, the total number of accredited institiion for PE (Course I) is 90 and PE (Course II) is 54. 11 Institutions organised classes for the benefit of PE (Course I) students and 10 institutions organised classes for the PE (Course II)students intending to appear in the examinations to be held in November 2002. |
11.5 Seminars and Conferences |
11.5.1 During year the Board continued the operation of the scheme for One-day Seminars with more liberalised guidelines and the scheme for holding Elocution Contest. A new scheme for organising a series of Quiz contests, on the lines of Elocution Contest was also introduced. During the year 2001-02, 21 Branches organised one-day seminars. |
11.5.2 The 14th All India C.A. Students' Conference organised in Bangalore on 22nd and 23rd December 2001 proved to be a stupendous success on all counts. A record number of 1263 delegates representing almost all Stttes participated in the conference. Hon'ble Chief Justice of Karnataka High Court Shir N.K.Jain inaugurated the Conference. The then Preisdent Shri N.D. Gupta and the then Vice-President Shri Ashok Chandak addressed the Students in the inaugural session. 15 Technical papers on 9 selected topics contributed by students were discussed in the four technical sessions. |
11.5.3 The guidelines concerning grants for Regional level conferences were liberalised and made more flexible to encourage organisation of more than one Regional level conference in each Region and State level conferences. During the year, the following Regional and other conferences for CA students took place -
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11.6 Scholarships |
During the year ended 31st March 2002, Scholarships were granted to 212 students out of the funds of the Institute - 4 Merit-cum-need based scholarships, 25 Merit scholarships, 167 Need-based scholarships and 16 Partial Freeships were awarded during the year. Further, scholarships were awarded to 55 students out of the income from various endowments set up for the purpose. |
11.7 Students' Newsletter |
11.7.1 The monthly C.A. students' newsletter - The Chartered Accountant Student' containing useful articles, acadekic updates, write-ups and other relevant announcements continued to be popular and proved useful to the students. The publication proved useful to the students. The publication proved to be popular among the members also and in view of the increasing demand from the members a special subscription rate of Rate. 150 p.a. for members and others was introduced during the year. The design and lay out of the newsletter was also improved with colour printing |
11.7.2 The first prize for the best article was awarded to Shri Raju J. Saboo of Mumbai for his article on Audit Programme' published in June 2000 issued on volume IV. |
11.8 Special grant to the Branches |
A special additional monthly grant to Branches undertaking the responsibilities of distribution and sale of study material and other publications of the Board and monitoring Postal Test Scheme / organising Sunday Test Scheme was also introduced during the year. The additional monthly grant in the range of Rs. 2000 to Rs. 3000, depending on the number of students in the particular jurisdiction, prompted a number of Branches to come forward to undertake this responsibility and render increased services to students. As a result, new Sunday Test Centres have also been opened in certain Branches. |
11.9 Gyan Darshan Channel |
During the year 31 educational programmes were produced for telecast through Gyan Darshan Channel |
11.10 Training Guide and COde of Conduct |
11.10.1 Having regard to the requirements of the new scheme of Education and Training and with a view of improving the overall quality of Practical Training, the Training Guide has been revised |
11.10.2 A Code of Conduct for articled / audit trainees has been finalised by the Board. |
Self Development Booklet series |
Self -development booklets for the benefit of students on the following areas are under preparation and expected to be released during the current year -
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11.12 Course on General Management and Communication |
Details regarding the proposed course on General Management and Communication Skills which the articled / audited trainees are required to undergo after completion of their practical training and before enrolment as members are under finalisation. The details, inter alia include the course outline, modalities of their implementation and other relevant aspects. |
11.13 Branches of Chartered Accountants Students Association |
With a view of actively involve students of the Chartered Accountancy Course in the development of a spirit of fellow feeling and promotion of social, cultural, academic and intelectual development etc., the Council of the ICAI has always been encouraging students to set up Branches of Chartered Accountants Students' Association. In this process, so far 34 Branches of Students' Association have already been set up. |
11.14 S.Vaidyanath Aiyar Memorial Fund |
During the year ended 31st March, 2002, 60 scholarships of the value of Rs. 200/- each per month were given to the students undergoing the Chartered Accountancy course. The membership of the fund was 324 as on 31s March, 2002 as against 323 as on 31st March, 2001. The balance in the credit of the fund was Rs. 4,82,794/- as on 31st March , 2001. |
11.15 Recognition of CA Course for Ph. D. Programme |
With Constant follow-up with various Universities the Committee on Commerce Education & Carrer Counselling (formerly name as the University and Higher Secondary Boards Liaison Committee) has been successful in obtaining recognition for C.A. Course from 72 Universitites besides the 4 Indian Institutes of Management and the Association of India Universities for the purpose of Ph.D / Fellow Programme. |
12. REGIONAL COUNCILS AND THEIR BRANCHES |
12.1 The Institute hae five Regional Councils, namely Western India Regional Council, Southern India Regional Councl, Eastern India Regional Council, Central India Regional Council and Northern India Regional Council with their Headquarters at Mumbai, Chennai, Kolkata, Kanpur and New Delhi respectively. |
12.1.1 The total number of branches of Regional Councils as of 31st August, 2002 is 97 |
12.1.2 Currently, there are eleven Chapters of the Institute outside India |
12.1.3 During the year, three new reference libraries have been set up at Thodupuzha and Thanjavur in Southern Region and Bhiwani in Northern Region. With this 37 reference libraries have been set up all over the county. |
12.2 Branch Building |
During the period under report a number of branches of Regional Councils continued to evince interest in having their own premises. In all , 52 Branches have their own premises. |
12.3 Rotating Shield |
Since 1986-87, the ICAI awards each year Rotating Shield to the Best Regional Council. The award is given on the basis of overall performance. Similarly, a separate Rotating Shield is awarded to the Best Branch each year. The award is given on the basis of established norms. Rotating Shields to the Best C.A. Students' Association on all India basis and Best Branch of Students' Association on Regional Basis have been instituted from the year 1999. For the year 2001 these shields were awarded at the Annual Function held on 2nd February, 2002 to the following winners
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12.4 New Decentralised Offices |
Considering the increasing volume of work /activites a the regional level and recognising the value of expecditious and personalised service which are avhievable through the process of decentralisation, the Council of the ICAI has already set up five more decentralised Offices at Bangalore and Hyderabad in Southern Region; Ahmedabad and Pune in Western Region; Jaipur in Central Region, besides the decentralised offices already functioing from Mumbai, Chennai, Kolkata and New Delhi and certain new initiatives have been recently taken by the Council to make them more effective and useful. |
13. FINANCE AND ACCOUNTS |
The Balance Sheet as at 31 st March, 2002 and the Income & Expenditure Account for the year ended on the date as approved by the Council are enclosed. |
14. APPRECIATION |
14.1 The Council is grateful to all members of the profession who functioned as co-opted members on its Committees and to the non-members whon assisted the Council during the year 2001-2002 in the conduct of its educational, technical and other development activities and in its examination |
14.2 The Council wishes to place on record its appreciation of the continued assistance and support given by the Central Government and its nomiees on the Council during the year 2001-2002 |
14.3 The Council wishes to place on record its heartfelt gratitude to the Hon'ble Prime Minster of India, Shri Atal Bihari Vajpayee; His Excellency the Vice President of India Shri Bhairon Singh Shekhawat; His Excellency Mr. Amolok Rattan Kohli, Hon,ble Governor of Mizoram, His Excellency Dr. Vishnukant Shastri, Hon'ble Governor of Uttar Pradesh and His Excellency Mr. Dinesh Nandan Sahai, Hon'ble Governor of Chhattisgarh. The Council also expresses its deep sense of gratitute to S/Shri Yashwant Sinha, Murli Manohar Joshi, Arun Jaitley, Suresh Prabhu, Jual Oram, Satyabrata Mookherjee, Ravi Shankar Prasad, Gingee. N. Ramachandran, Digvijay Singh, Dr. Raman Singh and Ms. Jayawanti Mehta who were kind enough to grace the various programmes of the ICAI as Members of Council of Union Ministers at the relevant time. Similarly the Council of Union Minsters at the relevant time. Similarly the Council is also grateful to the Hon'ble Chief Minsters of Andhra Pradesh, Assam, Chhattisgarh, Goa, Kerala, Orissa and Uttaranchal for the interest evinced by them in the various activities of the ICAI. |
14.4 The Council also acknowledges its appreviation of the sincere interst evinced by various State Government in the numerous initiatives takne by the ICAI and the steps already / being initiated by them, pursuant to such initiatives. |
14.5 The Council also aclnowleges its appreciation of the sincere and devoted efforts put in during the year 2001-2002 by all officers and staff of the Institute. |
STATISTICS OF MEMBERS (FROM 1.4.1997) TABLE I | |||||||
Year (As on) | Western Region |
Southern Region |
Eastern Region |
Central Region |
Northern Region |
Total | |
1.4.1997 | Associate Fellow Total |
14649 11042 25691 |
11013 8975 19988 |
4906 4369 9275 |
3972 4560 8532 |
6971 8049 15020 |
41511 36995 78506 |
1.4.1998 | Associate Fellow Total |
16160 11501 27661 |
11564 9420 20984 |
5187 4558 9745 |
4351 4909 9260 |
7406 8733 16139 |
44668 39121 83789 |
1.4.1999 | Associate Fellow Total |
17935 12038 29968 |
12515 9942 22457 |
5562 4779 10341 |
4875 5345 10220 |
8001 9374 17375 |
48888 41478 90366 |
1.4.2000 | Associate Fellow Total |
17771 12200 29971 |
13023 10369 23392 |
5807 4941 10748 |
5057 5617 10674 |
8411 9784 18195 |
50069 42911 92980 |
1.4.2001 | Associate Fellow Total |
19243 12868 32111 |
12915 10749 23664 |
5732 5077 10809 |
5215 5995 11210 |
8498 10100 18598 |
51603 44789 96392 |
STATISTICS OF MEMBERS (FROM 1.4.1950) TABLE II | |||||||
As on 1.4.1950 |
As on 1.4.1951 |
As on 1.4.1961 |
As on 1.4.1971 |
As on 1.4.1981 |
As on 1.4.1991 |
As on 1.4.2001 | |
Fellows | 569 | 672 | 1,590 | 3,326 | 8,642 | 22,136 | 44,789 |
Associates | 1,120 | 1,285 | 4,059 | 7,901 | 16,796 | 36,862 | 51,603 |
Total | 1,689 | 1,957 | 5,649 | 11,227 | 25,438 | 58,998 | 96,392 |
STUDENTS REGISTRATION GROWTH PROFILE (FROM 31.3.1996) | |||||||
As on 31.3.96 |
As on 31.3.97 |
As on 31.3.98 |
As on 31.3.99 |
As on 31.3.200 |
As on 31.3.2001 |
As on 31.3.2002 | |
Foundation / PE (Course I) | 29,015 | 28,209 | 37,052 | 43,809 | 44,180 | 35,999 | 34,215* |
Intermediate / PE (Course II) | 19,288 | 21,354 | 24,652 | 28,253 | 27,508 | 23,405 | 29,403** |
Final | 8,675 | 9,275 | 9,394 | 12,227 | 10,787 | 9,026 | 11,524 |
Total | 56,978 | 58,838 | 71,098 | 84,289 | 82,475 | 68,430 | 75,142 |
* includes PE (CourseI) students registration for 1.10.2001 to 31.3.2002:5006 |
AUDITORS' REPORT | |
1. |
We have audited the attached Balance Sheet of The Institute of Chartered Accountants of India as at 31st March, 2002 and also the annexed Income and Expenditure Account for the year ended on the date incorporating the accounts of the Institute's offices, Regional Councils and their branches audited by other auditors. These financial statements are the responsibility of the Institute's management. Our responsibility is to express an opinion on these financial statements based on our audit. |
2. |
We conducted the audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that out audit provides a reasonable basis for our opinion. |
3. |
We further report that :-
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Sd/- A.C.BUBBER CHARTERED ACCOUNTANT |
Sd/- RAJIV KUMAR RASTOGI CHARTERED ACCOUNTANT |
Place :New Delhi Date : 14th September, 2002 |
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA BALANCE SHEET AS AT MARCH 31,2002 | |||||
Amount Rupees in Lacs | |||||
Schedule | 31-3-2002 | 31-03-2002 | |||
SOURCES OF FUNDS: | |||||
Capital Reserves | I | 2698.91 | 2449.34 | ||
General Reserve | II | 1294.09 | 1256.31 | ||
Other Reserves | III | 82.83 | 73.93 | ||
Earmarked Funds | IV | 3698.79 | 2920.84 | ||
Total | 7774.62 | 6700.42 | |||
APPLICATION OF FUNDS: | |||||
Fixed Assets: | V | ||||
Gross Block | 3424.35 | 3054.86 | |||
Less: Depreciation | (1302.19) | (1139.03) | |||
Net Block | 2122.16 | 1915.83 | |||
Investments: | VI | ||||
Earmarked Fund Invesments | 3698.79 | 2920.84 | |||
Other Investments | 3533.10 | 7231.89 | 3175.78 | 6096.62 | |
Current Assets, Loans & Advances: | |||||
Inventories | VII | 188.68 | 130.66 | ||
Accounts Receivables | VIII | 160.73 | 141.64 | ||
Cash & Bank Balances | 455.34 | 398.27 | |||
Loans & Advances | IX | 484.05 | 488.66 | ||
Sub - Total | 1288.80 | 1159.23 | |||
Less :Current Liabilities & Provisions | |||||
Fees / Income received in Advance | X | 2112.63 | 1768.44 | ||
Creditors for Expenses | 449.41 | 456.05 | |||
Provision for Gratuity Fund (Note No.5) | 97.95 | 110.86 | |||
Other Liabilities | 218.21 | 150.50 | |||
Sub-Total | 2878.20 | 2485.85 | |||
Net Current Assets | (1589.40) | (1326.62) | |||
Miscellaneous expenditure-Software Development (To the extent not written off or adjusted) |
XI | 9.97 | 14.59 | ||
Total | 7774.62 | 6700.42 | |||
Statement of significatn accounting policies | XV | ||||
Notes forming part of Accounts | XVI | ||||
Sd/- Devendra Kumar Joint Secretary |
Sd/- G.D.Khurana Director |
Sd/- Ashok Haldia Secretary |
Sd/- R. Bupathy Vice-President |
Sd/- Ashok Chandak President | |
As per our Report of even date attached. | |||||
Sd/- A.C.BUBBER CHARTERED ACCOUNTANT |
Sd/- RAJIV KUMAR RATOGI CHARTERED ACCOUNTANT | ||||
Places:New Delhi Date 14/9/2002 |
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