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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
[PUBLISHED IN PART III SECTION 4 OF THE GAZETTE OF INDIA, EXTRAORDINARY, DATED 28th SEPTEMBER, 2002]
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
New Delhi, Dated 28th September, 2002
 
N O T I F I C A T I O N
(Chartered Accountants)

No.1-CA(5)/53/2002:- In pursuance of sub-Section (5) of Section 18 of the Chartered Acountants Act 1949, a copy of the Report and the Audited Accounts of the Council for the year ended 31st March, 2002 is hereby published

53rd ANNUAL REPORT

The Council of the Institute of Chartered Accountants of India has immense pleasure in presenting its 53rd Annual Report for the year ended 31st March 2002. The Institute of Chartered Accountants of India (ICAI), which was set up by an Act of Parliament on 1st July, 1949, entered into its 53rd year of existence during the year. The Council commends the members and students for the respect which the Chartered Accountancy profession commands today in the Society. This has been achieved by excellence, independence and integrity displayed by the members and students all along.

The Report highlights the important activities of the Council and its various Committees and also covers, the seminars / conference organised, training programmes conducted, pertinent data relating to members and students as also the accounts of the Institute for the year 2001-2002. The important activities and major initiatives of the ICAI upto the end of August 2002 have also been breifly mentioned for the benefit of members, students and others concerned.

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.

Some of the important recommendations made by the Committee to the Council are on matters relating to:

  • Review of norms for nomination of Institute's representatives on National / International bodies including Committees, sub-Committees, etc.

  • Setting up of a new Branch of Regional Council at Jamnagar in Western Region;

  • Setting up of two Branches of Students' Associations at Rajkot (WIRC) and Mysore (SIRC);

  • Guidelines for decentralisation of release of grants payable to the Regional Councils and their branches through the Decentralisation Offices at Mumbai, Chennai, Kolkata, and Kanpur;

  • Adoption of "initial" of family members' name alongwith a member's name for the purpose of approval of firm name;

  • Fixing of time limit for condonation of cases falling under Regulations 190(4) and 190(7)

  • Uniformity in use of different sizes of Logo of the Institute;

  • Guidelines for release of grans to Students; Associations and their branches

  • Generation of revenue by Regional Councils and their branches by renting oyt their halls at times to respectable organisations;

  • Authority attached to various pronouncements and publications of the institute;

  • Revised Guidelines for releasing publications by the Branches and the Regional Councils;

  • Special additional grant to Branches for distribution / selling study materials and monitoring Postal Test Paper Scheme / organising this Sunday Tests;

  • Non-payment of fee for the year 2000-01 by members in time-Consequent upon removal of names and cancellation of COP where restoration was not effected retropectively and the consequences thereof under the Chartered Accountants Act and Regulations;

  • Condonation of the delay in submitting From 108-cases of delay beyond 90 days over and above the stipulated period of 30 days.

  • Fixation of fee for verification of marks in the Assessment Test of the Post Qualification Course in Information Systems Audit;

  • Terms of Reference of Committee on Commerce Education & Career Counselling;

  • Draft amendments in Regulation 6 to the Chartered Accountants Regulations, 1988 to grant exemption from payment of membership and / or Certificate of Practice to members suffering from permanent physical disability;

  • Draft amendements in Schedules 'C' 'D' & 'E' to the Chartered Accountants Regulations, 1988 to provide for power with the Council for revision of papers & syllabus and fixation of various fees payable for the Post Qualification Courses under the respective Schedule.

  • Exploring the feasibility of remitting the membership fee, Seminar / Conference fee and payment towards Publication sale through credit cards.

  • Finalisation of activities and release of special grant to Regional Councils and Branches to celebrate Chartered Accountants Day on Ist July every year in a befitting manner.

  • Approval of different types of standard leeters generated through the computer than can be sent without the signature of competent authority.

  • Code of Conduct for Students of Chartered Accountancy Course.

  • Scheme for Course on General Management and Communication Skills

  • Public Relations Policy of the Institute

  • Review of existing Regulations / Directions concerning the Directionss of the Council and their Branches

  • Review of existing procedure for identification of consensus candidate for the Office of the Vice-President.

  • Review of existing practice of publication of newletters, patrikas, etc, brought out by difference Committeess of the Council, besides the Journal of the Institute.

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-

  • Effective from the examinations held in May, 2002 examination application forms in the OMR format were introduced and the admit cards bearing their scanned photograph and specimen signature were issued to the candidates. This obviated the encessity of issuance of the identity card to the candidates separately.

  • Examination application forms wre continued to be made available, besides at all the Regional Offices of the ICAI and Branches of the Regional Councils at different locations in the metropolis of Delhi, Kolkatta and Mumabi. Effective from May, 2002 examiniations, the facility of downloading the admit card from the website was extended to candidates by using the Personal Identification Number (PIN) indicated by them in the OMR application form.

  • Results as well as marks were continued to be made available simultaneously at different locations in the metropolis of Delhi and Mumabi.

  • Results were continued to be made available on the Institute's IVR system. The results as well as the marks were also made available on the National Informatics Centre's website. Merit list was also displayed on the website simultaneously with declaration of results.

  • Facility of downloading of the results as well as marks by the Regional Offices of the ICAI and Branches of Regional Councils was made available simultaneously with the declaration of results

  • Facility of registering requests in advance for ascertaining results on declaration was continued and candidates registering for the same were provided with their results by e-mail immediately after declaration of results

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

  • Upto Six Months 273
  • Six Months to One Year Nil
  • One Year to Two Years 47
  • Two Years and above 141

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:

  • Code on Corporate Governance

    As a measure of self-regulation for the profession and to bring the standards of independence, excellence and integrity of the profession, the Committee is at present finalising a report on the ICAI Code of Corporate Governance.

  • Research Study on Fair Valuation of Shares and Disclosure Norms

    A research study group was constituted undertake a survey study on the mechanism for introducing fair valuation of shares and the need for bringing the desirable disclosure norms. The study group has submitted its preliminary finding to the Committee.

  • Suggestions to SEBI on Takeover Code

    The Committee submitted its memorandum of suggestions on the statement of issues relating to takeover code and participated at the meetings organised by SEBI.

  • Suggestions for Reforms in the Primary Capital Market

    The Committee had also placed its suggestions before the SEBI Advisory Committee on reforms in the primary capital market.

  • Memorandum of suggestions on Financial Companies Regulations Bill, 2000

    A memorandum of suggestions on the above Bill has been finalised for submissions to the Government.

  • Investors Awareness Programmes

    The Committee as a proactive step in the field of investor's protection organised an awareness programme for the investors in association with the Department of Company Affairs on 30th March, 2002 at Coimbatore. The following topics were deliberated at the Programme:

    -Capital Market Operations
    -Understanding Corporate Disclosures
    -Investor's Protection

  • All India Conference on Financial Markets at Kolkata

    The Committee organised a One-day All India Conference on Financial Markets at Kolkata on 3rd August 2002. The theme of the conference was Financial Markets towards Re-Engineering. The topics in the two technical sessions included are Financial Markets towards Global Reforms and Emerging Markets towards Global Reforms and Emerging Opportunities in Capital Market. There was also a panel discussion on Investor's Protection and Education. The conference was attended by a large number of delegates and was a grand success.

  • Suggestions on the Indian Depository Rules, 2001

    The Committee forwarded to the Department of Company Affairs, its detailed suggestions / comments on the rules relating to Indian Depository Rules, 2001

  • Suggestions on Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance, 2002

    The Committee is in the process of finalising its comments and views on the above ordinance for appropriate consideration of the Government.

  • Booklet materials on Investor's Protection

    The study group on Investor's Protection finalised two booklet materials / brochures on topics relating to Investor's Protection and the same is presently under consideration of the committee.

  • Measures for ensuring Independence of Auditors and Investor's Protection

    In the backdrop of global accounting crisis and apprehension in the minds of investors on the ccredibility of financial statements and in order to ensure independence of auditors and investor's protection the Committee has suggested certain broader points on the matter

  • Audit Format in respect of Compliance of Functions by Stock Brokers

    The Committee at present is considering a publication on the statutory audit format in respect of compliance of the funtions by stock brokers.

  • Report on Nidhi Companies Rules and Regulations

    A study group was constituted at Chennai for the purpose of recommending suggestions on Nidhi Companies Rules and Regulations. The report of the study group is presently under consideration of the committee.

  • Futuristic Action Plan

    1. Introduction of Post-qualification Course in Corporate Finance and Capital Markets.
    2. Organising Modular Training Programmes in Corporate Finance
    3. Conducting a Business-cum Study tour to United States
    4. Organising International Conference at New Delhi
    5. Investor's awareness programmes in smaller metro cities
    6. Publication of a Compendium on important master circulars published by RBI for the benefit of members
    7. Constitution of Study Group of Review of Securities Laws
    8. Publication of a material on Role of CA's in Audit Committee.

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 :-

  • Implementation of computerised system for recording of CPE hours

  • Recording of attendence of members through the use of Smart Card.

  • Strengthening of the system of production of Background Material so that members get them at the right point of time

  • Educating members on the different Accounting Standards issued recently.

  • Institution of a Faculty Development Programme

  • Conducting teleconferencing for reaching out to all members.

  • Internet based CPE programme and user of online knowledge portal for giving unstructured CPE hours to members

  • Providing CPE programmes on Web sities

  • Preparing a statement on CPE Standards

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:

  • A proposal sent to the Reserve Bank of India for enhancement of remuneration payable to Statutory Central and Branch Auditors of Banks has been approved by it providing an overall enhancement of 25% of total (basic) remuneration for the year 2000 - 2001 besides a reasonable revision in boarding and conveyance charges payable to statutory auditors.

  • The Committee organised meetings with the Chief Ministers of various States / the Comptroller and Auditor General of India and apprised them regarding various areas in which the services of Chartered Accountants can be utilised including the following :-

    - The ICAI held a detailed meeting with the Hob'ble Minister for Finance of Chhattisgarh and a presentation was also made to him on the various opportunities for the State Government to gainfully avail of the services of chartered accountants.

    - A representation on role of Chartered Accountants in Power Sector and Co-operative Audit was made to the Hon'ble Minsters for Power and seniormost officials of Finance Ministry of the Government of Kerala

    - A meeting was held with Hon'ble Chief Minister of Kerala and the Hon'ble Minster of Industries and IT, Govt. of Kerala in September, 2001 wherein various issues including possible contribution of Chartered Accountants in the economy of Kerala were discussed indepth.

    - Various issues related to the utilisation of the services of chartered accountants by the C&AG and the Government have been discussed with the C&AG of India including matters relating to empanelment auditor's remuneration etc. Response to the ICAI ideas and initiatives in these matters is encouraging.

  • Representations have been sent to various State Governments for utilising the services of Chartered Accountants in the following area:

    - Audit under sales Tax Act.

    - Engagement of Chartered Accountants in the Co-operative Sector.

    - Involvement in Value Added Tax System.

    - Audit of gram Panchyats and Panchyat Samities

    - Role of Chartered Accountans in Forestry Related Activities.

    - Role of Chartered Accountants in Mining Related Activities

    -Other areas in which services of Chartered Accountants can be utilised

    1. End-use Certification for Utilisation of Government Grants
    2. Financial and Corporate Restructuring
    3. Audit of Educational Institutions
    4. Audit of Health Programmes
    5. Audit of various Entities Liable to collect Entertainment Tax
    6. Energy Audit
    7. Environmental Accounting and Auditing
    8. Disaster Management
  • Preparation of panel of statutory auditors for Insurance Companies at the ICAI Head Office for submission to the Insurance Regulatory and Development Authority (IRDA) and issuance of notification by IRDA to all Insurance Companies for appointment of Joint Auditors from the year 2001-02 onwards

  • The Committee held an International Conference on Globalisation and the Chartered Accountants at Dubai, United Arab Emirates on January 24-25, 2002 in collaboration with its Dubai Chapter. There were 265 delegates from various countries including 14 delegates from India. The deliberations were ofthe highest order and were attended by various eminent persons including the then Chairman, Securities and Exchange Board of India. A lot of queries on the US GAAPs and Indian Accounting Standards were raised and a contentious issue regarding universal uniform GAAPs was also discussed.

  • Organised ICAI - CAG Joint Seminar on Accounting Auditing - Related Issues pertaining to PSUs at Hyderabad wherein inter alia the following issues were discussed in depth with the seniormost officials of the Office of the Comproller and Auditor General of India :-

    - Mandatory Accounting Standardes - Recent Development

    - Recent Amendments in Companies Act and Audit Profession

    - Study on recently issued SAPs by ICAI

    - Synchronization of Audit Approach.

    Number of chain seminars on the above issues are being organised across the country

  • The ICAI has committed to the establishment of Centres of Excellence in various parts of the country and has been able to get an in-principle approval for allotment of a plot of 3 acres of land to it for setting up a Centre of Excellence in the heart of the proposed Financial District of Hyderabad

  • MOU signed with Queensland University of Tehcnology, Australia to enable members to obtain qualification of CPA, Australia.

  • At a meeting with the ICAI, the Hon'ble Chief Minister of Andhra Pradesh has suggested for involvement of the ICAI in helping to bring about god financial governance practices in the Government of Andhra Pradesh and the ICAI, has already constituted a Working Group for this purpose. The Working Group will be working closely with the Government of Andhra Pradesh and the Centre for Good Governance which has been established by the Government of Andhra Prade at Hyderabad. The total agenda also includes developing more areas for chartered accountants to get involved ini, as far as Andhra Pradesh is concerned.

  • The Andhra Pradesh State Cabinet had decided to have audits in Panchayat Raj and Mandal Development offices conducted by Chartered Accountans who should be empanelled with the Director of Local Fund Audit. It has also been decided by the State Cabinet that the elected bodies of thos Gram Panchayats which fail to get their accounts audited by the third quarter of the year would be automatically abolished

  • The States of Delhi, Madhya Pradesh, Maharastra, Haryana, West Bengal, Goa, Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Karnataka and Rajasthan have notified draft VAT / VAT Act. The ICAI held a sumposium on Value Added Tax at Hotel Hyatt Regency, New Delhi on 2nd November, 2001

  • The Committee organised a Round Table discussion on Half Yearly Limited Review of Accounts of Banks wherein the firms of Chartered Accountants on the panel of Central Statutory Auditors of Public Section Banks, all Public Sector and listed Private Sector Banks and Financial Institutions were invited. Seniormost officials of the RBI and a large number of delegates from various Public Sector and Private Sector Banks and financial institutions also participated besides members of the profession

  • The Committee had published a technical guide on Sales Tax Audit in the state of Andhra Pradesh

  • Task Forces have been constituted for all the major States in the country for efectively pursuing the objectives of the Professional Develpment Committee at the local level. Many of them have reported good progress especially in areas of cooperative sector and government bodies.

  • A panel of auditors for audit of branches of Public Sector Banks / Statutory Central and Branch auditors or Regional Rural Banks for the year 2001-02 containing names of 2067 members / firms has be submitted to the Reserv Bank of India / NABARD various issues / difficulties faced by members were discussed / clarified with authorities.

  • A panel has been submitted to Khadi & Village Industries Commision (KVIC) for conducting audit of end-use certifiation of funds

  • A proposal has been submitted to Central Bureau ofr Investigation for setting up a panel of Chartered Accountant firms for investigation financial irregularities. Talks are at a very advanced stage for preparation of a panel for this purpose.

  • A proposal has been given to the Director General of Income Tax (Investigation) of various states for preparing panel of Chartered Accountants / Firms to conduct audit u/s 142 (2A) of the Income Tax Act, 1961. The Committee is hopeful that an all India panel would be prepared very soon.

  • In Kolkata and Hyderabad 240 and 100 firms of Chartered Accountants respectively have been given work of municipal audits and related services

  • A notification has been issued by the Commissioner of Cooperation, Maharashtra enabling Chartered Accountants to do audit o all Co-op. Banks in Maharashtra having deposits over Rs. 100 Corres. A panel of Chartered Accounts from Maharashtra was submitted o the Ciommissioner of Cooperations, Maharasthra.

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

  1. During the year under report from 01-04-2001 to 31-03-2002, 2228 members have registered themselves for ISA course out of whom 1910 members undergone Professional Training (PT) (conducted in 29 PT Centres)

    It is Pertinent to add that from the inception of the course upto 31-03-2002, there have been 3200 ISA Registrations, out of which 2100 has been done online (i.e., through official website) which goes to prove that the members are increasingly tech-savvy.

    As on 31st August 2002, a total number of 5621 members (from the date of inception) have registered for ISA Course.

  2. During the period under report ISA Modular Eligibility has been conducted on a quarterly basis and 522 members have passed the Eligibility Test conducted in 24 centres al over India.

    1700 members have qualified the Eligibility Test in the four Eligibility Tests conducted in November 2001 (292), February 2002 (229), June 2002 (546) and August 2002 (633)

  3. During the period under report 139 candidates have qualified ISA Final Assessment Test and has become ISA qualified Members.

    665 members have qualified the Final Assessment Test held in the last 3 Assessment Tests viz., December 2001 (121), March 2002 (139) and June 2002 (405).

5.12.2

Computer Accounting and Audit Techniques (CAAT) Course

Society expects the professional accountants to have the required level of competence to perform the work required. Conceptual competency apart, CA professionals are now expected to have the practical and application skills in computers as user manager, designer and auditor.

The IT Committee in response to the demands of the Members for imparting Practical Training towards handling Computers and Applications has already formulated Action Plans to conduct a 100 hours practical Course on CAAT which has already been approved by the Executive Committee.

Members spread across the country including far-flunged an mofussil areas will have the benefit of hands on experience not only in traditional Excel / Spreadsheet application but also in advance features such as RDBMS, ERP, Network, Security, Web Based Technologies and specialized Audit Techniques (General Application Software - GAS such as ACI., IDEAS etc.)

CAAT course has been launched in Chennai by President on 26th August 2002.

NIIT, APTECH and SSI have been selected as Service Providers for conducting CAAT course throughout the Country.

5.12.3

Hands on Exposure and Hands on Technology Workshops:

Since one of the main objectives of the IT Committee is taking Technology to members doorsteps, as a beginning, Hands on Technology Exposure Programmes had been conducted in Tirupur (Tamil Nadu) and Ernakulam (Kerala) where 150 participants had the benefit of Exposure towards Banking Software Solutions and Audit Techniques.

5.12.4

International / All India Technology Conference :

IT Committee has formulated plans to conduct International / National Conferences in all Metros such as Delhi, Mumbai, Chennai Kolkata, Bangalore, Hyderabad and also in 10 other selected semi-urban cities covering almost all the Regions.

5.12.5

Website Development

The ICAI official Website had undergone major changes not only in the "look and feel" navigability but also in contents and concepts. The new home page along with the additional features focusting on services to members and students has earned wide accolade and acclaim from public and members across the country as well as from abroad.

5.12.6

Software Development for Institute's operations

On the initiative taken by the IT Committee, software development has already been formally commissioned. Once it becomes operational, all services of the ICAI would be available through the medium of Website. Essentially all kinds of Informational interaction with the ICAI such as Enrolment of Membership, Renewal of Membership and COP, Change of Address, Status of entitlement for training of Articled clerk, eligibility status of students' community will be available through the Web medium.

5.12.7

Collaboration with 'The Managementor' knowledge Portal:

A very novel medium of Online Practicing Tests for ISA participants has been launched during the reporting year the benefit of which has been highly appreciated by ISA participants. It is on record that ICAI is one among the forerunners among the Professional Accounting Institutes / International Bodes haveing successfully introduced Online Test Programme for its members. Recently researched Premium Contents along with explanatory notes has also been incorporated adding high values to the Online Practice Test format as a continuous learning unique experience. This has proved to be a bon for ISA Participants not only for preparing for the ISA Examination but also in their professional Practice, as Systems Auditors.

5.13 Public Relations Activities Undertaken

  • Celebration of 1st July as the Chartered Accounts' Day

  • Meeting with His Excellency Shri Bhairon Singh Shekhawat, the newly elected Vice-President of India

  • Meetings with Chief Ministers and Finance Ministers of various States Like Andhra Pradesh, Assam, Chattisgarh, Goa, Kerala, Orissa and Uttaranchal

  • Meeting with Secretaries of various Departments of Govt. of India and other State Governments

  • Concerted efforts / programmes for building up the image of the profession through all available media including seeking special slot from Doordarshan

  • Organisation of the 52nd Annual Function of the ICAI which was inaugurated by then Union Miniister of Law, Justice & Company Affairs Shri Arun Jaitley.

  • Organisation of Assembly meeting and Conference of the South Asian Federation of Accountants (SAFA) at Goa in December 2001 and at Mumbai in May 2002.

  • Organisation of the meeting of the Small & Medium Practitioners Chairs of the International Federation of Accountants at Mumbai in May 2002.

  • Meeting with the Members of the ICAI in London as also with the officials of Directorate of Trade & Industry, Government of U.K. for recognition of the qualification of Indian Chartered Accountants.

  • Joint Conference with Institute of Chartered Accountants in England and Wales to be held on 2nd September 2002.

  • National Conference for "Not for Profit Organisation" organised at Bangalore on 9th and 10th August, 2002

  • National Conference on "Corporate Governance and Accounting Standards - The Emerging Role of CFOs Jointly organised with FICCI on 21st August, 2002

  • Signing of the MOUs for technical co-operation with:

    - The Institute of Chartered Accountants of Pakistan
    - The Institute of Chartered Accountants of Bangladesh
    - The Institute of Chartered Accountants of Sri Lanka

  • Meetings with the Institutes in other countries with whom ICAI has signed MOU for mutual co-operation and recognition of qualifications.

  • Signing of MOU between ICAI Accounting Research Foundation and M/s Infosys Technologies Ltd. to promote basic and applied research on national and international issues concerning Accounting Information Technology and other allied areas.

  • Creating an awareness about the changing role of Chartered Accountants in the changed economic scenario.

  • Programme organised to launch the new Scheme of Education & Training for Chartered Accountancy Course

  • Assisting the Local Bodies in adopting the modern system of accounting and putting in place proper accounting standards.

  • Holding of Public Awarenes and Investor's Education Programmes in different cities to make the public at large and Investors aware of the nuances of the Stock Market and their rights an responsibilities.

  • Holding of WTO awareness programmes in various cities to make the public at large and Investors aware of the nuances of the Stock Market and their rights and responsibilities.

  • Holding of WTO awareness programmes in various cities of the country

  • The Website of the ICAI given a face-lift and made more informative and user friendly.

  • Proactive initiative to the press responside to various developments natinally as well as internationally concerning the accounting profession on important economic events with a view to facillitating under standing of profession's viewpoint / comments.

  • Setting up of state-of-the-art centres of excellence, at least one in each region - 3 acres of land for Hyderabad Centre being the first of series.

  • Organisation of innumerable Press Conferences T.V. / Meida interaction.

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 :

  • The First International Conference on Concerns of Developing Nations in the WTO Regime has been successfully organised by the Committee on 20-21 August, 2001 in collaboration with the United Nations Conference on Traden & Development (UNCTAD) and the Directorate of Anti-dumping and Allied Duties, Ministry of Commerce, Govt of India. The Conference was graced by the presence of Hon'ble Prime Minister of India, Shri Atal Bihari Vajpayee and a galaxy of Union Minstere - Hon'ble Shri Arun Jaitley, then the Union Minster of Law Justice & Company Affairs, Hon'ble Shri Suresh Prabhu, then the Union Minster of Power, Shri Digvijay Singh, then the Minster of State for Commerce, Hon'ble Dr. Raman Singh, Minister of State (Industry) and Dr. Murli Manohar Joshi, Hon'ble Minster of HRD & Science and Technology. The Conference was also attended by a galaxy of Sr. Govt. functionaries including Secretary, Deptt. of Commerce, Company Affairs Director General - Anti dumping. The Conference provided a platform to al concerned policy makers, administrators, professionals and other stakeholders involve, who endeavouredn in identifying, deliberating upon the formulating solutions strategies and positions in respect of issues of concernes o the developing countries, in general, and India, in particular in the process of implementation of various Agreements of WTO.

  • The Committee has finalised research project entitled "Road Ahead" containing recommendations arising out of the deliberations and discussions that took place t the International Conference on Concerns of the Developing Nations in the WTO Regime held by the Committee in collaboration with the United Nations Conference on Trade & Development (UNCTAD) and the Directorate of Anti-Dumping and Allied Duties, Ministry of Commerce, Government of India on 20-21 August, 2001 at New Delhi

  • The Department of Company Affairs had constituted a Workinig Group headed by the Chairman CTL & WTO of ICAI and consisting of representatives of ICSI, ICWAI, Deptt.of Company Affairs, Minstry of Commerce, Bar Council of India, CII, ASSOCHAM, FICCI & other stake holder for preparation of Request List in Accountancy sector for consideration by Govt. of India in ongoing negotiations in WTO. The Working Group has since submitted its First Report to the Deptt.of Company Affairs for their consideration. The Secretarial support to the Working Group was provided by the ICAI. In pursuance of the first report referred the Request List in the Accountany, Auditing and Book-Keeping Services has been formulated by the ICAI and sent to Department of Company Affairs.

  • The Post Qualification Course on Trade Laws and WTO being brought out by the Committee has been approved by the Council. The same is under active consideration of the Central Government.

6. INTERNATIONAL INITIATIVES

  • The ICAI continued to paly a proactive role on the international front to fructify its goals of globally building a brand image of the profession across the world.

  • The ICAI has initiated efforts for entering into mutual co-operation / recognition and professional colloboration with various international accountancy institutes through entering into Memorandum of Understanding with the ICAEW, AICPA, CICA, ICAA, ICAP, ICAB, and ICASL. The evaluation process for establishing equivalence is at varying stages of completion with ICAEW, AICPA and CICA. The process for MRA has also been initiated with ICA New Zealand and Zambia Institute of Certified Public Accountants. The Institute is organising a joint conference with ICAEW on 2nd September 2002 in New Delhi

  • The ICAI continued to mobilise opinion of the International bodies on the issues of the SMEs and the SMPs and participated actively through its nominees on IFAC Task force on SMEs and SMPs

  • The ICAI was able to pursue with foreign accounting bodies including those in UK, USA, Australia, Japan and those in South Asian Region and also the regional organisations like CAPA, SAFA to participate in the meeting of SMP Chairs in India. The objective of the meeting of SMP Chairs in India. The objective of the meeting was to gather thoughts on the issues concerning SMPs and therafter to reach the consensus of the meeting to the IFACSMP Task Force. A seminar on the theme of SMPs Issues and Cheallenges was also organised in Mumbai after the SMP Chairs meeting. The ICAI has from time to time given its technical comments on the work of UNCTAD relating to differential reporting standards for SMEs.

  • The permanent secretariat of the SAFA continued to bein the ICAI and it has taken initiatives for establishing centres of excellence under the aegis of the SAFA to bring excellence in technical areas of professional interest. The ICAI hosted 46th and 47th SAFA Assemblies in December 2001 and May 2002 at Goa and Mumbai respectively. Significant progress has been made to implement the Memorandum of Understandings signed with ICA Pakistan, Sri Lanka and Bangladesh. The ICAI has successfuly initiated the efforts towards holding joint CPE and Student exchange programs with the South Asian Accounting bodies. A Joint Continuing Professional Education Committee Seminar organised by ICAI -ICAP was held on 29th September, 2001 in Amritsar, wherein large number of members participated including 23 delegates from Pakistan. The ICAI has planned to organise joint programs with ICA Nepal, Bangladesh and Sri Lanka in the near future.

  • The ICAI has shown its concern for its members settle outside India. I has made efforts through motivating its members in countries where they exist in large number for coming together and forming a chapter of the ICAI. The ICAI has already opened a chapter in London and the process for openign the chapters in USA and Canada is on.

  • The ICAI continued to give its view points on the issues arsing out of the WTO -GATS particularly on Accountancy Sector before the Government of India and has been in constant touch with the Government for getting across its views. The ICAI has submitted its views to the Ministry of Commerce from time to time well ahead of the Doha round of discussions on various matters including facilitating the movement of professionals, removal of unjustified restrictions / barriers and for paying the way to provide level playing field for the accounting professionals.

  • The ICAI has been become the founder member of International Innovative Network. The President of the Institute has signed the IIN Charter in the first meeting of IIN held in New York from July 22-24, 2002. The objective of the IIN is to promote the development of new products and services relating to the accounting profession and to facilitate international marketing of those products and services through its members.

  • The ICAI has been able to represent on major international forums like IFAC, IAASB, SAFA, CAPA, etc. The President of ICAI, was appointed as the Vice-President of South Asian Federation of Accountants (SAFA) during the SAFA assembly held on May 26, 2002 in Mumbai. This immediate Past President, ICAI, was elected to the Board of International Federation of Accountants (IFAC), which is a governing body of IFAC under the new restructuring arrangement. The International Auditing and Assurance Board (IAASB, the erstwhile IAPC of IFAC) has decided to include ICAI amongst the few national standards setter bodies for consultation in its new projects.

  • The Institute of Certified Public Accountants in Uganda has decided to give its membership to the ICAI members who hold the member-in-good standing status. Similarly the Certified General Accountants Association in Canada (CGA) has awarded a status of advanced standing to ICAI members in some jurisdictions in Canada. The ICAI member would require to effectively appear in five papers as against sixteen earlier.

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:

  • Programme on Confidence Building between Office and Members / Students - "help us to serve you better" were organised at all Regional Offices as an interactive program involving Concil Members, students and officers / staff to identify the areas of concerns and finding the solution to address the concerns.

  • Management Development Programmes / Employee Development Programmes / Employee Development Programmes were organised for officers and staff dealing with various aspects of behavioural science such as team work, inter-personal effectiveness, communication skills management, serving with a smile etc, to equip the employees to deal with the changing expectation levels.

  • Focussed HRD programmes on computers, cutting across the levels of employees.

  • Intensive Workshop on members and students; services involving those who deal with the matters in relation to members and students at each level in the Head Office and Regional Offices. The culmination of the same will be the revision of the existing editions of the members and the students Manuals.

  • Intensive orientation programme on matters relating to accounts and finance

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:

  • the finacial statements have been compiled in compliance with the accounting standards, significant acounting policies and other legal requirements;

  • the internal control system are adequate and are in operation;


  • the revenue leakages and wasteful expenditure, if any are detected and plugged

    In addition, the Committee reviews the Institute's financial and risk management policies and the functioning of the internal and statutory audits.

8.6 Committee on Insurance

The Committee on Insurance has been in a perenial endeavour to:

  • locate profitable professional avenues for the members of the ICAI in the insurance sector;

  • equiping the members with Industry specific knowledge and skills to tap the emerging opportunities;

  • co-ordinace with the Insurance companies, Insurance Regulatory and Development Authority and the government on the matters pertaining to the growth and development of the insurance sector;

  • compile and publish research papers, monographs, guidance notes, etc, on insurance section; and

  • hold seminars and workshops on topics of interest in the Insurance sector.

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 -

  • Global changes that are takinig place, especially those affecting the profession of accontancy directly and indirectly.

  • Reference received from the Department of Company Affairs in a similar context (thereby necessitating a review of those proposals submitted to the Central Government about 9 years back).

  • Decision already taken by the Council at its 215th meeting held in March, 2001 for appointing a Committee for overall review of the disciplinary mechanism of the Institute

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:

  • Publication of Journal on the following themes:

    - WTO and the Chartered Accountant
    - Taxation
    - Mid-term review of the economy
    - Accounting Implications of the Corporate Governance
    - Newly issued International Accounting Standards
    - Re-engineering of Small Accounting Firms

  • On the occasion of Chartered Accountant's Day i.e., 1st July 2002, a special issue was brought out Various eminent personalities contributed their articles in this issue alongwith some international renowned experts.

  • Publiation of various Empanelment Forms

  • Publication of various Government Circulars and Notifications

  • Special Issue on Budget during March 2002

  • Publication of articles contributed by various experts

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 -

  • Finalistion of the new curriculum for the Professional Education (PE) (Course I), (Course II) and Final Course

  • Finalisation of the details of the new Professional Education Scheme such as application for registration, registration and tuition fees, theoretical education scheme, transitional arrangement for students already registered including the exercise of option to come under the new scheme

  • Release of new prospectus "Professional Education Course -Gateway to the Chartered Accountancy"

  • Release of booklet on Frequently Asked Questions (FAQs) on the new scheme of Education and Training

  • Launching of the PE Course by registration of students and release of new study materials at a function held in Indore

  • Creating awareness about the requirements / implications of the new scheme.

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 -

  • The Institute's Computer Training Centres in Regions / Branches wherever they are wellequipped and have the necessary infrastructural and other facilities

  • Institutions already accredited for oral coaching classes for Professional Education (Course I and Course II) and having the necessary infrastruture and other facilities for imparting the computer training and are specifically accredited by the Board for this purpose and

  • Certain leading training institutions operating on a nation - wide basis and specifically accredited for this purpose.

    Pursuant to the same, agreements have been signed with 4 computer training institutions APTECH, NIIT, First Computers, SSI - authorising them to impart Computer Training to our students. Kolkata Computer Training Centre of the ICAI attached to the EIRC, Kolkata has also been accredited for this purpose.

    Steps have also been initiated to get unifor background materials covering the syllabus prescribed for this purpose prepared by outside expers.

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.

14 Branhces (including 5 Regional Councils) organised Elocution Contests at Branch level. Subsequently, all the 5 Regions organised Regional level contests and selected 5 winners each to participate in the All India Contest.

Similarly, 9 Branches (including 3 Regions) - Central, Southern and Western - organised Quiz contests at the Branch and Regional Level.

The 7th All India Elocution Contest and the first All India Quiz Contest were held in Hotel Mondovi, Goa on 12th January 2002. 24 winners of the Regional level contests participated in the Final Elocution Contest and displayed their oratorial skills. Teams consisting of winners from Regional level Quiz contests participated in the Final Quiz Contest which covered a numner of questions concerning general knowledge and awareness, Accounting Auding, Direct and Indirect Tax Laws and Corporate Laws and proved to be quite interesting and interactive. Prizes were awarded to the top performers in the two contests.

The above schemes are being continued during the current year also. Till August, 2002, 8 Branches organised one-day Seminars and 13 Branches organised Elocution and Quz Contests.

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.

Eminent professional chaird the 4 technical sessions and delivered special addresses. The valedictory session was addressed by the former president Shri B.P.Rao. The Bangalore Branch made elaborate arrangements fo the reception, accommodation and hospitality of the outstation delegates and other dignitaries. The collections of this mega event including the sponsorship by the Association of Insurance Companies in Public Sector and others crossed the Rs. 15 lakhs which is again an all time record for a Students' Conference.

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 -

  • A.P. State level SICASA Conference - 8th & 9th June, 2001 - Hyderabad

  • All Kerala C.A.Students' Conference, 2001 - 21st July 2001- Ernakulam

  • All Kerala C.A. Students' Conference -- 11th August, 2001 - Kozhikode

  • Eastern India C.A. Students' Conference 11th August 2001 - Kolkata

  • WICASA Students' Conference - 25th and 26th August, 2001 - Ahmedabad

  • 5th Central India C.A. Students' Regional Conference - 30th December 2001, Ghaziabad

  • "Golden Jubilee Year Conference for C.A. Students" by SIRC - 28TH and 29TH December 2001, Chennai

  • Western India C.A. Students Sub-Regional Conference- Nagpur - 1st and 2nd Decembner 2001

  • Western India Students Regional Conference 4th and 5th January 2002, Pune

    Conferences organised during the current Year till 31st August 2002

  • Western India C.A. Students' Sub-Regional Conference, Rajkot - 29th and 30th June, 2002.

  • Eastern India C.A. Students' Conference- Kolkata- 6th July, 2002

  • Two days conference on True and Fair Kottayam Branch - 6th and 7th July, 2002

  • 6th Central India C.A. Students' Regional Conference - Raipur - 13th and 14th July 2002

  • All Kerala C.A. Students' Conference, 2002 Ernakulam, 27th July, 2002

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.

Both the above documents will be issued after their consideration and approval by the Council

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 -

  • Time and Stress Management
  • Skills of General Correspondence
  • Audit Documentation for students

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

  1. Best Regional Council
    - Jointly to Southern India Regional Council and Western India Regional Council

  2. Best Branch of Regional Council
    - Nagpur Branch of Western India Reginal Council

  3. Best Students' Association
    - Southern India Chartered Accountants Students Association

  4. Best Branch of Students' Association
    -Western Region - Baroda Branch of WICASA
    -Southern Region - Ernakulam Branch of SICASA
    -Central Region - Raipur Branch of CICASA

    Considering their good performance, the following Regional Councils and Branches were separately awarded certificates respectively for highly commended and excellent performance.

    Highly Commended Performance Certificates

    - Northern India Regional Council & Eastern India Regional Council

    - Surat Branch of WIRC, Ernakulam Branch of SIRC and Goa Branch of WIRC.

    Excellent Performance Certificate

    - Bangalore, Hyderabad, Visakhapatnam, Salem Branches of SIRC, Jaipur Branch of CIRC and Cuttack Branch of EIRC

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

**includes PE (Course II) students registration from 1.10.2001 to 31.3.2002:11848

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 :-

  1. We have obtained all the information and explantion which to the best of our knowledge and belief were necessary for the purposes of the audit;

  2. The Balance Sheet and Income & Expenditure account dealt with the report are in agreement with books of accounts;

  3. In our opinion the accountsw are maintained conformity with the requirements of the Chartered Accountants Act, 1949;

  4. In our opinion and to the best of our information and according to the explanations given to us, the statements together with the schedules attached and read with the Accounting Policies and Notes Forming Part of Accounts give a true and fair view:

    1. In the case of Balance Sheet of the state of affairs as at 31st March, 2002 and

    2. In the case of Income & Expenditure Account of the excess of Income over Expenditure for the year ended on that date:

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

 

INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31.03.2002
Amount Rupees in Lacs
  Schedule 2001-2002 2000-2001
Income
Fees XII 4005.55 3269.08
Publications   345.74 318.14
Seminars   486.71 398.64
Interest on Investment   401.84 368.99
Provisions no longer required written back   7.76 38.69
Other Income XIII 320.74 309.10
Prior Period Income   17.80 43.26
TOTAL   5586.14 5105.90
EXPENDITURE
Salaried & Allowances   1297.11 1174.61
Examination Expenses   661.75 592.68
Information System Audit Course   89.21 13.05
CAAT Course Expenses   1.75  
Distant Education Expenses   398.75 306.97
Publications   85.78 102.21
Journal Expenses   285.08 215.90
Seminar Expenses   453.24 365.77
General & Administrative Expenses XIV 907.60 192.82
Travelling & Conveyance   334.91 192.82
Overseas Relations   101.39 83.50
Election Expenses     72.12
Deferred Revenue Expenditure [Policy No VII]   6.67 6.28
Audit Fee   4.23 3.49
Decline in value of Investments   27.20 85.37
Decline in value of Stock   4.18 45.00
Depreciation   170.50 182.22
Prior Period Expenses   39.29 44.42
    4868.64 4188.44
TOTAL   717.50 917.46
NET SURPLUS
Appropriation to Funds / Reserves :
Education Fund [Policy No. III (b)]   452.30 441.18
Employees Benevolent FUND [Policy No III (c)]   8.56 8.15
Computerisation Fund   200.00  
General Reserve   56.64 468.13
TOTAL   717.50 917.46
Statement of significant 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
SCHEDULE I
CAPITAL RESERVES
Amount Rupees in Lacs
  31.03.2002 31.03.2001
(A) General:
Balance as per last account   948.53   738.35
Admission Fees & Allocated Entrance Fee [Policy No III (a)] 14.05   10.25  
Donations received for Buildings 38.41   163.94  
Transferred from General Reserves 5.60   3.43  
Transferred from Other Reserves -   23.50  
Transferred from Earmarked Funds - Other 3.10 61.16 9.06 210.18
TOTAL (A)   1009.69   948.53
(B) Education:
Balance as per last account   1500.81   1284.92
Add: Transferred from Earmed Funds
(a) Education Fund [Policy No. III (d) (iii)]
  188.41   215.89
TOTAL (B)   1689.22   1500.81
GRAND TOTAL (A) + (B)   2698.91   2449.34
SCHEDULE II
GENERAL RESERVES
Amount Rupees in Lacs
  31.03.2002 31.03.2001
Balance as per last account   1256.31   832.37
Add: Appropriation from Income and Expenditure Account 56.64   468.13  
Transfer from Earmarked Funds - Golden Jubliee Fund 56.64   -  
Transfer from Earmed Funds - Medals & Prizes Fund 0.45 73.71 ---------- 468.13
Less: Transfer to Earmarked Funds - Research 0.75   0.69  
Transfer to Earmarked Funds - Others 20.50   33.28  
Transfer to Other Reserve 9.08   6.79  
Transfer to Capital Reserves - General 5.60 (35.93) 3.43 (44.19)
TOTAL   1294.09   1256.31
SCHEDULE III OTHER RESERVES
Amount Rupees in Lacs
  31.03.2002 31.03.2001
Others *
Balance as per last account   73.93   92.15
Add: Transfers from General Reserves 9.08   6.79  
Transfer from Earmarked Funds - Others 0.10 9.18 - 6.79
Less: Net Depletion during the year 0.28   1.51  
Transfer to Capital Reserves - General -- (0.28) 23.50 (25.01)
TOTAL   82.83   73.93

* Other Reserves are reserves such as Library Reserves and Coaching Classes Reserves as appearing in the books of Regional Councils and Branches.

SCHEDULE IV
EARMARKED FUNDS
Amount Rupees in Lacs
  31.03.2002 31.03.2001
RESEARCH FUNDS
Balance as per Last Account   321.69   290.92
Transfer from General Reserve 0.75   0.69  
Additions during the year 8.48   0.25  
Income earned during the year 30.15 39.38 29.83 30.77
SUB-TOTAL (A)   361.37   321.69
ACCOUNTING RESEARCH FOUNDATION AND BUILDING FUND
Balance as per Last Account   201.03   181.93
Income earned during the year   19.30   19.10
SUB-TOTAL (B)   220.33   201.03
COMPUTERISATION FUND
Balance as per Last Account   130.89   118.45
Appropriation from Income & Expenditure Account 200.00      
Income earned during the year 12.56 212.56 12.44 12.44
SUB-TOTAL (C)   343.45   130.89
GOLDEN JUBILEE CELEBRATION FUND
Balance as per Last Account   15.18   16.75
Income earned during the year   1.44   1.75
Less: Payments during the year   -   (3.32)
Less : Transfer to General Reserve   (16.62)    
SUB - TOTAL (D)   0.00   15.18
EDUCATION FUND
Balance as per last Account   1419.28   1080.54
Appropriation from Income & Expenditure Account [Policy No.III (b)] 452.30   441.18  
Income earned during the year 136.25 588.55 113.45 554.63
Less: Transfer to Capital Reserves - Education [Policy No. III (d) (iii)]   (188.41)   (215.89)
SUB-TOTAL (E)   1819.42   1419.28
MEDALS AND PRIZES FUNDS
Balance as per Last Account   41.59   36.20
Additions during the year 13.08   3.46  
Income earned during the year 3.93 17.01 3.68 7.14
Less: Payments during the year 3.23   1.67  
Transfer to General Reserve 0.45   -  
Adjustment 0.06 (3.74) 0.08 (1.75)
SUB-TOTAL (F)   54.86   41.59
STUDENTS SCHOLARSHIP FUNDS
Balance as per Last Account   23.62   20.21
Additions during the year     2.45  
Income earned during the year 2.26 2.26 2.12 4.57
Less: Payment during the year   (1.34)   (1.16)
SUB-TOTAL (G)   24.54   23.62
PENSION FUND
Balance as per Last Account   419.23   423.06
Less: Adjustments -   (49.17)  
Additions during the year 28.03   31.15  
Income earned during the year 40.25 68.28 44.42 26.40
Less: Payments during the year   (32.06)   (30.23)
SUB-TOTAL (H)   455.45   419.23
LEAVE ENCASHMENT FUND
Balance as per Last Account   195.16   149.19
Add: Adjustment -   30.95  
Additions during the year 36.93   27.31  
Income earned during the year 18.73 55.66 15.67 73.93
Less: Payments during the year   (29.30)   (27.96)
SUB-TOTAL (I)   221.52   195.16
EMPLOYEES BENEVOLENT FUND
Balance as per Last Account   26.07   16.88
Appropriation from Income & Expenditure Account [Policy No. III (c)] 8.56   8.15  
Income earned during the year 2.51 11.07 1.77 9.92
Less:Payments during the year   (1.12)   (0.73)
SUB-TOTAL (J)   36.02   26.07
OTHER FUNDS (Regional Councils & Branches)
Balance as per Last Account   127.10   94.80
Add / Less: Adjustments 0.10   (3.29)  
Additions during the year 15.63   10.66  
Income earned during the year 11.64   5.63  
Transfer from General Reserve 20.50 47.87 33.28 46.28
Less: Transfer to Capital Reserves - General 3.10   9.06  
Transfer to Other Reserves 0.10   -  
Payments during the year 9.64 (12.84) 4.92 (13.98)
SUB-TOTAL (K)   162.13   127.10
GRAND TOTAL 3698.79     2920.84
SCHEDULE "V"
FIXED ASSETS
Amount Rupees in Lacs
    GROSS BLOCK   DEPRECIATION BLOCK NET BLOCK
ASSETS   Cost as at
1.4.2001
Additions
during
the year
Adjustments
Transfers /sale
Cost as at
31.3.2002
Upto
1.4.2001
For the year Adjustments /
Transfers /Sale
Upto
31.3.2002
W.D.V.
as on
31.3.2002
W.D.V.
as on
31.03.2002
1. Land - Free Hold (Note No.9) 168.35 1.32   169.67 0.00     0.00 169.67 168.35
2. Land -Lease Hold 9.69     9.69 1.90 0.22   2.12 7.57 7.79
3. Land (A.R.F.) - Lease Hold 289.45     289.45 12.27 3.22   15.49 273.96 277.18
4. Buildings 853.25 24.92 5.93 884.10 259.97 31.20   291.17 592.93 593.28
5. Electric Installations & Fittings 135.22 6.69 0.52 142.43 58.48 8.08 0.20 66.76 75.67 76.74
6. Air Conditioning 90.21 10.10 0.09 100.40 52.57 5.85 0.03 58.45 41.95 37.64
7. Furniture & Fixtures 316.61 25.10 (1.69) 340.02 135.42 19.46 (0.80) 153.88 186.14 181.19
8. Lifts 41.02 0.61 41.63 10.08 3.21   13.29 28.34 30.94 226.03
9. Office Equipments 226.03 28.62 (3.49) 251.16 105.28 19.88 (0.66) 124.50 126.66 120.70
10. Vehicles 16.37 14.36 (7.81) 22.92 11.22 2.73 (6.07) 7.88 15.04 5.15
11. Library Books 191.32 27.49 (0.43) 218.38 143.44 22.02 (0.44) 165.02 53.36 47.88
12 Computers 467.67 33.84 2.28 530.19 348.40 54.83 0.40 403.60 99.6 119.27
SUB-TOTAL 2805.19 172.45 (4.60) 2973.04 1139.03 170.50 (7.34) 1302.19 1670.85 1666.16
13. Building Work in Progress 249.67 214.20 (12.56) 451.31 0.00     0.00 451.31 249.67
TOTAL 3054.86 386.65 (17.16) 3424.35 1139.03 170.50 (7.34) 1302.19 2122.16 1915.83
Previous Year 2627.90 433.85 (6.89) 3054.86 961.65 182.22 (4.84) 1139.03 1915.83  
SCHEDULE VI
INVESTMENTS
Amount Rupees in Lacs
  31.03.2002 31.03.2001
A: LONG TERM INVESTMENTS
(I) Units with Unit Trust of India:
(i)Unit Scheme of Charitable & Religious Trust
Registered Societies (CRTS - 81)
448.31   448.31  
(ii) Units 1964 Scheme
105.62 342.69 80.59 367.72
Less : Decline in Value of Investments 6.95 7.00 4.78 8.38
(iii)Institutional Investors Special Fund
Unit Scheme (IISFUS-96 & 98)
  387.80   540.17
    737.49   916.27
Bonds with Public Sector Undertakings
i)Indian Railway Finance Corporation Ltd.
[Redeemable non-convertible bonds 2500 @ Rs. 1000/- each]
      24.83
ii)Industrial Finance Corporation of India Limited
- IFCI Bonds -96 (X series) [Redeemable non-cumulative bonds 500@ Rs, 10,000/- each]       50.00
- IFCI Family Bonds [Redeemable bonds 500 @ Rs. 5000/- each in the nature of Promissory Notes]       25.00
99.83
(III) Fixed Deposits with scheduled Banks   4394.42   3958.76
B. SHORT TERM INVESTMENTS
Fixed Deposits with scheduled Banks
  1455.00   470.68
C: Interest Accrued on Investments   644.98   651.08
Total Investment   7231.89   6096.62
ALLOCATED TO :-
Earmarked Fund Investments   3698.79   2920.84
Other Investments   3533.10   3175.78
Total   7231.89   3175.78
SCHEDULE VII:
INVENTORIES
Amount Rupees in Lacs
  31.03.2002 31.03.2001
Publications and Study Materials 150.08     118.70
Paper for Study Materials & Publications 68.03     37.84
(Including Stock of Paper with Printers - Rs. 59.19 lacs Previous year Rs. 35.62 lacs)
Stationery & Other Items
19.75     19.12
Sub-total 237.86     175.66
Less : Provision for obsolete stock (Note No.7) (49.18)     (45.00)
Total 188.68     130.66
SCHEDULE VIII:
ACCOUNTS RECEIVABLE
Amount Rupees in Lacs
  31.03.2002 31.03.2001
Receivables 168.20     148.98
Less : Provision for doubtful receivable (7.47)     (7.34)
Total 160.73     141.64
SCHEDULE IX:
LOANS & ADVANCES (Considered Good)
Amount Rupees in Lacs
  31.03.2002 31.03.2001
Advances to Staff
(Housing, Vehicle & Other Loans)
182.70     165.11
Interest Recoverable from Staff Loans 64.27     59.11
Security Deposits 15.24     10.99
Other - Advances & Pre-payments 221.84     253.45
SCHEDULE X:
FEES / INCOME RECEIVED IN ADVANCE
Amount Rupees in Lacs
  31.03.2002 31.03.2001
Examination Fees 773.03     551.86
Journal Subscription 37.92     48.34
Membership Fee 247.26     285.26
Students' Fee 79.78     39.85
Tution Fee 885.03     780.83
Information System Audit Course Fee 55.08     39.62
CAAT Course Fee 1.71     -
Seminar Fees & Other Collections
received in advance
32.82     22.68
Total 2112.63     1768.44
SCHEDULE XI:
MISCELLANEOUS EXPENDITURE - SOFTWARE DEVELOPMENT
(To the extent not wirtten off or adjusted)
Amount Rupees in Lacs
  31.03.2002 31.03.2001
Balance as per last account 14.59     16.68
Addition during the year 2.05     4.19
Less: Charged to Income & Expenditure during the year (6.67)     (6.28)
Total 9.97     14.59
SCHEDULE XII:
FEES :
(To the extent not wirtten off or adjusted)
Amount Rupees in Lacs
  31.03.2002 31.03.2001
Entrance Fee 4.61     3.21
Membership Fee 1156.22     1107.09
Students' Registration Fee 55.90     70.18
Students Association Fee 9.32     11.69
Distant Education Tutition Fee 1282.67     1228.28
Examination Fee 1385.70     1192.67
Information System Audit Course Fee 109.16     15.96
CAAT Course Fee 1.97      
Total 4005.55     3629.08
SCHEDULE XIII:
OTHER INCOME :
(To the extent not wirtten off or adjusted)
Amount Rupees in Lacs
  31.03.2002 31.03.2001
Student Newsletter 3.43     2.99
Income From Journal - Advertisement 0.50     0.41
Income from Journal - Subscription 66.13     59.09
Royalty Income on Journal from LMI -     12.29
News Letter
(Regional Councils & Branches)
19.22     14.48
Computer Centres 13.75     18.05
Fees for filing Disciplinary Cases 0.09     0.21
Campur Interview 28.16     30.76
Expert Advisory Committee Fee 3.45     2.91
Interest on Staff Loan 7.65     8.48
Election Income -     2.10
Income from Coaching Classes
Regional Councils & Branches)
115.36     95.19
Others 63.00     62.14
Total 320.74     309.10
SCHEDULE XIV:
GENERAL & ADMINISTRATIVE EXPENSES
Amount Rupees in Lacs
  31.03.2002 31.03.2001
Printing & Stationery 106.84     83.72
Postage, Telegrams & Telephone 193.19     148.57
Rent, Rates & Taxes 137.08     110.32
Repairs & Maintenance 115.01     80.83
Professional Fees 24.62     46.45
Computer Centres 7.36     3.32
Students' Newsletter 47.41     42.67
News Letter
(Regional Councils & Branches)
61.14     44.20
Campus Interview 12.27     8.64
Bank Branch Audit Empanelment 6.30     5.42
Merit Scholarship 3.70     3.53
Grants to Students' Association and Reference Libraries 1.74     7.79
Expenses for Coaching Classes
(Regional Councils & Branches )
68.03     54.03
Other Expenses 122.91     62.54
Total 907.60     702.03
SCHEDULE XV
STATEMENT ON SIGNIFICANT ACCOUNTING POLICIES

I Accounting Convention

The accounts are drawn up on historical cost basis and have been prepared in accordance with the applicable Accounting Standards

II Revenue Recognition

A)

1 / 3rd portion of the entrance fees from Associate Members is treated as Income.

B)

Tution / Course Fees received are recognised, upon registration, as Income on the following basis.

  1. Pre-Training (Foundation / PE1 / PE II Course.

    -100% of fees from the Students registered during the first quarter of the year &

    - 50% of fees from the Students registered thereafter, the balance being treated as Income in the following year.

  2. Others Tution Fee - Inter & Final Course

    1. Fees received in Jump sum

      1/3rd of fees from the Students registered in the year of receipt and the balance 2/3rd in the following two years on equated basis.

    2. Fees received in installments

      1. First installment - 50% of fees from the students registered in the year of receipt and he balance of 50% in the following two years onm equated basis

      2. Second installment - 100% of fees received in the year of receipt.

  3. Information System Audit Course/ CAAT Course

    Information System Audit Course Fee / CAAT Course Fees and the direct expenses attributable to the same are recognised in the year in which the practical training is commenced.

C)

Examination Fees / Assessment Test Fees

Fees and direct expenses attributable to Examination / Assessment Tests are recognised in the year in which the Examinations / Tests are held.

D)

Income from Investments

  1. Dividend on Investments in Units is recognised as income on the basis of entitlement to receive

  2. Income on Interest bearing securities / investments is accounted for on the basis of coupon / contractual rates

  3. Interest on fixed deposits with banks is accounted for on accrual basis at the rates applicable to such deposits

  4. Income from Investment is allocated to earmarked funds on opening balances of the respective earmarked funds on the basis of weighted average method.

E)

Journal Subscription

  1. 1/ 3rd of the Journal Subscription received from students for a period of three years is treated as income in the year of receipt and the balance 2/3rd in the following two years on equated basis.

  2. Yearly Subscription received from others on account of Journal is booked in the year of receipt.

III Allocations / Transfers to Capital Reserve & Earmarked Fund

  1. Admision fee from fellow members and 2 /3rd porting of the entrance fees from Associate Members are directly taken to Capital Reserve - General

  2. 50% of the surplus arising out of students related activities is transferred to Education Fund.

  3. 0.75% of Membership Fee (Associate & Fellow) and Certificate of Practice Fee received from the Members during the year is allocated to the Employees Benevolent Fund.

  4. Transfer to Capital Reserve - Education, from the following Earmarked Funds:

    1. From Computerisaion Fund: 100% of the cost of purchase of computers and related accessories in relation to Decentralised offices and Head Office Computerisation Project.

    2. From Accounting Research Foundation and Other Building Fund: 100% of the cost of Fixed Assets relating to Accounting Research Foundation

    3. From Education Fund : - 50% of the cost of additions (net of deductions) of other Fixed Assets.

IV Fixed Assets / Depreciation

  1. Fixed Assets are stated at their original cost less depreciation.

  2. Leasehold lands are being amortised over the lease period.

  3. Depreciation on additions (except Library books) is provided on monthly prorata basis

  4. Library books are depreciated on straight line method @ 20%

  5. Other Fixed Assets are depreciated on the wirrten down value method at the following rate:-

Buildings 5%

Air-Conditioner and office equipments 15%

Lifts, Electrical Installations and Furniture & Fixtures 10%

Vehicles 20%

Computers 40%

V Investments

  1. Investments held or intended to be held for a period of more than one year are treated as long term Investments,

  2. Other Investments are treated as short term Investment

  3. All Investment are valued at cost. Decline in value, other than temporary, is provided for.

VI Inventories

Stock of paper, stationery & Other items are valued at cost, publications and study material at direct cost on FIFO Method.

VII Deferred Revenue Expenditure

Computerisation expenses towards Software Development charges including cost of Software purchased are treated as Deferred Revenue Expenditure to be written - off equally ove a period of five years.

VIII Terminal / Retirement Benefits

  1. In terms of a scheme entered into with Life Insurance Corporation of India, the liability towards gratuity on death / retirement t eligible employees (computed as per actuarial valuation), is covered by premium / contribution made by the Institute. The Provision is made towards gratuity at the year end by charging to Income and Expenditure Account on the basis of actuarial valuation.

  2. Funds for pension and leave encashment are earmarked as per the actuarial valuation made by the actuary. The interest on these earmarked funds is provided as per the Accounting Policy No. II-D (iv) Payments for pension and leave encashment to the eligible employees during the year are charged to the respective funds.

SCHEDULE XVI
NOTES FORMING PART OF THE ACCOUNTS
1.

Contingent Liability: A sum of Rs. 18.25 lacs towards disputed amount inlcuding Property / Building Tax in respect of three branches has not been provided for (Previous year Rs 15.04 lacs)

2.

Exemption in respect of Income Tax has been granted under Section 10(23c) (iv) of the Income Tax Act, 1961 upto he assessment year 2002-2003. Therefore, provision for Income Tax has not been made.

3.

Estimated amount of capital commitment (net of advances) is Rs. 449.47 lacs (Previous year Rs. 366.56 lacs)

4.

Salaries & Allowances include perquisites such as contribution to Pension, Gratuity and Leave Encashment Funds.

5.

An amount of Rs. 97.95 lacs (previous year Rs. 110.86 lacs) is payable to LIC Under Cash Accumulation Scheme for Gratuity as per actuarial valuation. The aforesaid amount has been provided in the accounts under the head "Provision for Gratuity".

6.

Claims of Rs. 9.02 lacs (previous year 21.21 lacs) from various parties have not been acknowledged by the Institute.

7.

A provision of 100% on the cost of stock of old study material and Institutes' publications older than one year has been made on account of introduction of new syllabus and updation of Institutes Publications. Further a provision of 25% on the cost of remaining stock of BOS publications has been made.

8.

The Institute has made investments of Rs. 850.06 lacs over the years in Unit Trust of India under the schemes of CRTS - 81, IISFUS - 98 and Unit -64. Provions of Rs. 112.57 lacs (Previous year 85.37 lacs) has been made in the accounts to provide for decline in the value of CRTS - 81 and Unit-64

9.

Land Freehold includes Rs. 2.62 lacs relating to the land a Hubli which is under litigation with Hubli District Urban Development Authority.

10.

Figures in brackets represent negative balances.

11.

Previous year figures have been regrouped and re-classified wherever considered necessary.

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2002
(Amount Rupees in Lacs)
  2001-2002 2000-2001
A. Cash flows from operating activities
Net Surplus   717.50 917.46
Adjustment for:        
Depreciation 170.50   182.22  
Interest received from other investments (401.84) (231.34) (368.99) (186.77)
Operating profit before working capital changes   486.16   730.69
Increase / Decrease in Inventories (58.02)   45.82  
Increase in Amounts Receivables (19.09)   (74.72)  
Decrease / Increase in Loans & advances 4.61   (91.10)  
Increase in Fees / Income received in advance 344.19   81.06  
Decrease / Increase in Provison of Gratuity Fund (12.91)   10.07t>  
Increase / Decrease in Other Liabilities 67.71   (19.61)  
Decrease in Miscellaneous Expenditure (To the extent not written off or adjusted)   4.62   2.09
    324.47   76.45
Net Cash flows from investing activities   810.63   807.14
B. Cash flows from investing activities
Acquisition of Fixed Assets (376.83)   (431.80)  
Acquisition of Investment (1135.27)   (1056.29)  
Interest received from other Investment 401.84   368.99  
Income from Earmarked Funds Investment 278.41   249.86  
Capital Receipts 78.29   156.38  
Net cash from Investing Activities   (753.56)   (712.86)
Net Increase / Decrease in cash and cash equivalents   57.07   94.28
Cash and Cash equivalents at the beginning or period   398.27   303.99
Cash and Cash equivalents at end of period   455.34   398.27
ANNUAL REPORT - ACTIVITIES IN DETAIL
(Ref. Para 2 of the Annual Report)
Standing, Non Standing and Special Purpose Committees of the Committees of the Council for the year 2002-2003 and their composition.
 
A. STANDING COMMITTEES
Executive Committee
Shri Ashok Chandak, President Nagpur
Shri R Bupathy, Vice-President Chennai
Smt. Bhavna G. Doshi Mumbai
Shri Abhijit Bandyopadhyay Kolkata
Shri K B Sharma Jammu
EXAMINATION COMMITTEE
Shri Ashok Chandak, President Nagpur
Shri R. Bupathy, Vice-President Chennai
Shri N. Nityananda Bangalore
Shri Niranjan Saha Kolkata
Shri P. P. Pareek Jaipur
DISCIPLINARY COMMITTEE
Shri Ashok Chandak, President Nagpur
Shri R. Bupathy, Vice-President Chennai
Shri S.H. Talati Ahmedabad
Shri Shantilal Daga Hyderabad
Shri R.C. Chandiwala New Delhi
B. NON-STANDING COMMITTEES
Accounting Standards Board
Shri N.V. Iyer, Chairman, Mumbai
Shri Amarjit Chopra, Vice-Chairman, New Delhi
Shri Ashok Chandak, President, ICAI (Ex-Officio), Nagpur
Shri R. Bupathy, Vice-President, ICAI (Ex-Officio), Chennai
Mrs. Bhavna G. Doshi, Mumbai
Shri K.S. Vikamsey Mumbai
Shri S. Santhana Krishnan Chennai
Shri Niranjan Saha Kolkata
Shri Manoj Fadnis Indore
Shri N.D. Gupta New Delhi
Shri Sunil Bhargava Jaipur
Shri G.C. Srivastava New Delhi
Shri Rajiv Mehrishi New Delhi
Shri H. N. Motiwalla Co-opted Mumbai
Shri S.C. Vasudeva Co-opted New Delhi
Shri K. Kannan Co-opted Mumbai
Shri P.S. Narasimhan Co-opted Chennai
Nominees of Outside Bodies
Shri B. Mahapatra
(Representing RBI)
Mumbai
Shri H.V. Lodha
(Representing FICCI)
Kolkata
Shri Nihal Kothari
(Representing ASSOCHAM)
Mumbai
Shri Girish Ahuja
(Representing ICSI)
New Delhi
Smt. Deepa Guptaa,
(Representing ICWAI)
New Delhi
Special Invitees
Prof. Ashish K. Bhattacharyya
(Representing IIM, Kolkata)
Kolkata
Shri U.K.Maitra
(Representing CGA)
New Delhi
Prof. T. Uma Maheshwara Rao
(Representing UGC)
Nagarjuna Nagar
Shri L. Venkatesan
(Representing CII)
Chennai
Shri S.N. Baheti
(Representing IDBI)
Mumbai
Shri Pratip Kar
(Representing SEBI)
Mumbai
AUDITING & ASSURANCE STANDARDS BOARD
(formerly named as Auditing Practices Committee)
Shri K.S. Vikamsey, Chairman Mumbai
Shri Shantilal Daga, Vice-Chairman Hyderabad
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri N.V. Iyer Mumbai
Shri Pankaj Inderchand Jain Mumbai
Shri S. Gopalakrishnan Hyderabad
Shri Abhijit Bandyopadhyay Kolkata
Shri Sunil Goyal Jaipur
Shri Rajiv Mehrishi New Delhi
Shri Induprasad Mohanlal (Co-opted) Mumbai
Shri Rajiv Jaichand Luthia (Co-opted) Mumbai
Shri Gorrepati Jagadeswara Rao (Co-opted) Hyderabad
Shri Sanjay Jhanwar (Co-opted) Jaipur
Shri V. Rethinam (Co-opted) New Delhi
Continuing Professional Education Committee
Shri J.P. Gokhale, Chairman Mumbai
Shri Abhijit Bandyopadhyay, Vice-Chairman Kolkata
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri Pankaj Inderchand Jain Mumbai
Shri T.N. Manoharan Chennai
Shri Manoj Fadnis Indore
Dr. Sunil Gulati New Delhi
Shri K.B. Sharma Jammu
Shri V.C. Darak (Co-opted) Mumbai
Shri Prakash Chand Agiwal New Delhi
Shri M. Srinivasan(Co-opted) Chennai
Shri Ajay Kumar Gandhi (Co-opted) Hyderabad
Shri S.R. Bansal (Co-opted) New Delhi
Shri Ravinder Singh (Co-opted) New Delhi
COMMITTEE FOR MEMBERS IN INDUSTRY
Dr. Sunil Gulati, Chairman New Delhi
Shri S.H. Talati, Vice-Chairman Ahmedabad
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri R.S. Adukia Mumbai
Shri T.N. Manoharan Chennai
Shri Gopal Prasad Dokania Kolkata
Shri P.P. Pareek Jaipur
Shri Sunil Bhargava Jaipur
Shri J. Sridharan (Co-opted) New Delhi
Shri Sushil Kumar Agarwal (Co-opted) Mumbai
Shri Uday Y. Phadke (Co-opted) Mumbai
Shri Braj Kishore Agrawal (Co-opted) Nagpur
Shri Rajiv Babulal Gandhi (Co-opted) Mumbai
FISCAL LAWS COMMITTEE
Shri T.N. Manoharan, Chairman Chennai
Smt. Bhavna G. Doshi, Vice-Chairperson Mumbai
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri J.P. Gokhale Mumbai
Shri Gopal Prasad Dokania Kolkata
Shri Sunil Goyal Jaipur
Shri N.D. Gupta New Delhi
Shri G.C. Srivastava New Delhi
Shri P.V.S.S. Prasad (Co-opted) Hyderabad
Shri S. Madhavan (Co-opted) New Delhi
Shri Pradeep Sevantilal Shah (Co-opted) Mumbai
Shri Rameshkumar Shashivardhan (Co-opted) Mumbai
Shri Sanjiv Kumar Chaudhary (Co-opted) New Delhi
CORPORATE LAWS COMMITTEE
Shri Amarjit Chopra, Chairman New Delhi
Shri R.S. Adukia, Vice-Chairman Mumbai
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri N.V. Iyer Mumbai
Shri Shantilal Daga Hydeabad
Shri Niranjan Saha Kolkata
Shri Sunil Goyal Jaipur
Shri Vinod Jain New Delhi
Shri G.C. Srivastava New Delhi
Shri Rajiv Mehrishi New Delhi
Shri Anil Bhalla (Co-opted) New Delhi
Shri Shriniwas Yeshwant Joshi (Co-opted) Mumbai
Shri Amitav Kothari (Co-opted) Kolkata
Shri Vijay Kumar Jhalani (Co-opted) New Delhi
Shri Narendra Kapoor (Co-opted) Kanpur
COMMITTEE ON ETHICAL STANDARDS & UNJUSTIFIED REMOVAL OF AUDITORS
Shri Sunil Goyal, Chairman Jaipur
Shri R.C. Chandiwala, Vice-Chairman New Delhi
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri J.P. Gokhale Mumbai
Shri S.H. Talati Ahmedabad
Shri N. Nityananda Bangalore
Shri Niranjan Saha Kolkata
Shri R. Shashidhara (Co-opted) Bangalore
Shri Tarapada Kar (Co-opted) Kolkata
Shri Chinubhai Nathalal Shah (Co-opted) Ahmedabad
Shri Amar Nath Mukherjee (Co-opted) Kolkata
Shri Hari Chand Gupta (Co-opted) Allahabad
Shri Vijay Kant Jain (Co-opted) Jaipur
EXPERT ADVISORY COMMITTEE
Shri Gopal Prasad Dokania, Chairman Kolkata
Shri J.P. Gokhale, Vice-Chairman Mumbai
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri N.V. Iyer Mumbai
Shri S. Gopalakrishnan Hyderabad
Shri T.N. Manoharan Chennai
Shri S. Santhana Krishnan Chennai
Shri Manoj Fadnis Indore
Shri Amarjit Chopra New Delhi
Shri G.C. Srivastava New Delhi
Smt. Priya Bhansali (Co-opted) Coimbatore
Shri Arvind V. Lowlekar (Co-opted) Bhopal
Shri Ravindra Raniwala (Co-opted) Jaipur
Shri Khanderao Balvant Dabke (Co-opted) Mumbai
Shri Kamalkishor Narayandasji (Co-opted) Akola
BOARD OF STUDIES
Shri Manoj Fadnis, Chairman Indore
Shri Pankaj Inderchand Jain, Vice-Chairman Mumbai
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri J. P. Gokhale Mumbai
Shri T.N. Manoharan Chennai
Shri N. Nityananda Bangalore
Shri Abhijit Bandyopadhyay Kolkata
Dr. Sunil Gulati New Delhi
Shri K.B. Sharma Jammu
Shri Pradeep Kumar Gupta (Co-opted) Ghaziabad
Shri I. S. Prasad (Co-opted) Bangalore
Shri V.K. Subramani (Co-opted) Erode
Shri Mahaveer Chand Bohra (Co-opted) Jodhpur
Shri Rajendra Laxmikant Bhobe (Co-opted) Panaji Goa
Committee on Commerce Education & Career Counselling
(Formerly named as University & Higher Secondary Boards Liaison Committee)
1. Shri Vinod Jain Chairman New Delhi
2. Shri K.B.Sharma Vice-Chairman Jammu
3. Shri Ashok Chandak President (Ex-Officio) Nagpur
4. Shri R.Bupathy Vice -President (Ex-Officio) Chennai
5. Shri S.H.Talati Member Ahmedabad
6. Shri G.P.Dokania Member Kolkata
7. Shri P.P.Pareek Member Jaipur
8. Dr. Sunil Gulati Member New Delhi
9. Shri Shyam Sunder Singhvi Co-opted Member Udaipur
10. Shri Prakash Chandra Maskara Co-opted Member Siliguri
11. Shri Pradip Thanawala Co-opted Member Mumbai
12. Shri Radhey Shyam Paliwal Co-opted Member Nagpur
13. Shri Hemant Vasant Kulkarni Co-opted Member Mumbai
PROFESSIONAL DEVELOPMENT COMMITTEE
Shri Pankaj Inderchand Jain, Chairman Mumbai
Shri P.P. Pareek, Vice-Chairman Jaipur
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri S.H. Talati Ahmedabad
Shri Shantilal Daga Hyderabad
Shri T.N. Manoharan Chennai
Shri Abhijit Bandyopadhyay Kolkata
Shri N.D. Gupta New Delhi
Shri R.C. Chandiwala New Delhi
Shri Sampat Lal Khurdia (Co-opted) Mumbai
Shri Vikrambhai Harilal Shah (Co-opted) Nagpur
Shri Uday Vishnu Sathaye (Co-opted) Mumbai
Shri Rabindra Narayan Roy (Co-opted) Kolkata
Shri Padam Chandra Bindal (Co-opted) New Delhi
RESEARCH COMMITTEE
Shri R.S. Adukia, Chairman Mumbai
Shri N. Nityananda, Vice-Chairman Bangalore
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri N.V. Iyer Mumbai
Shri Shantilal Daga Hyderabad
Shri Niranjan Saha Kolkata
Shri Sunil Goyal Jaipur
Dr. Sunil Gulati New Delhi
Shri Vinod Jain New Delhi
Shri G.C. Srivastava New Delhi
Shri Jose Pottokaran (Co-opted) Thrissur
Shri Thomas Mathew (Co-opted) Mumbai
Shri Chandrakant B. Thakar (Co-opted) Mumbai
Shri Subhash Chandra Chawla (Co-opted) New Delhi
Shri Vishnu Anant Mahajan (Co-opted) Vadodara
COMMITTEE ON FINANCIAL MARKETS & INVESTORS' PROTECTION
Shri Vinod Jain, Chairman New Delhi
Shri K.S. Vikamsey, Vice-Chairman Mumbai
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri Pankaj Inderchand Jain Mumbai
Shri Shantilal Daga Hyderabad
Shri P.P. Pareek Jaipur
Shri Sunil Bhargava Jaipur
Shri Rajiv Goel (Co-opted) New Delhi
Shri Kamal Nayan Jain (Co-opted) Kolkata
Shri Laxminarayan More (Co-opted) Cuttack
Shri Anil Sharma (Co-opted) New Delhi
Shri Deepa Guptaa (Co-opted) New Delhi
COMMITTEE ON INFORMATION TECHNOLOGY
Shri S. Santhana Krishnan, Chairman Chennai
Shri Manoj Fadnis, Vice-Chairman Indore
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri R.S. Adukia Mumbai
Shri J.P. Gokhale Mumbai
Shri S. Gopalakrishnan Hyderabad
Shri Amarjit Choptra New Delhi
Shri T.V. Mohandas Pai (Co-opted) Bangalore
Shri S.A. Murali Prasad (Co-opted) Chennai
Shri Deepak Keshav Ghaisas (Co-opted) Mumbai
Shri V. Srinivasan (Co-opted) Mumbai
Shri Partha Mitra (Co-opted) Kolkata
INTERNATIONAL AFFAIRS COMMITTEE
Shri N.D. Gupta, Chairman New Delhi
Shri Ashok Chandak, President (Vice-Chairman) Nagpur
Shri R. Bupathy, Vice-President Chennai
Shri R.S. Adukia Mumbai
Smt. Bhavna G. Doshi Mumbai
Shri K.S. Vikamsey Mumbai
Shri S. Santhana Krishnan Chennai
Shri R.C. Chandiwala New Delhi
Shri Rajiv Mehrishi New Delhi
Shri Ved Kumar Jain (Co-opted) New Delhi
Shri Vinod Kumar Rustagi (Co-opted) Delhi
Shri Kapil Gupta (Co-opted) New Delhi
Shri Sudhir Kumar Agarwal (Co-opted) Delhi
Shri G.S. Pannu (Co-opted) Bangalore
ICAI-ICWAI-ICSI COORDINATION COMMITTEE
Shri Ashok Chandak, President (Leader) Nagpur
Shri R. Bupathy, Vice-President (Deputy Leader) Chennai
Shri Gopal Prasad Dokania Kolkata
Shri Vinod Jain New Delhi
Shri Rajiv Mehrishi New Delhi
EDITORIAL BOARD
Shri Ashok Chandak, President (Editor-in-Chief) Nagpur
Shri R. Bupathy, Vice-President (Joint Editor) Chennai
Shri R.S. Adukia Mumbai
Shri S.H. Talati Ahmedabad
Shri N. Nityananda Bangalore
Shri Abhijit Bandyopadhyay Kolkata
Shri Sunil Goyal Jaipur
Dr. Sunil Gulati New Delhi
Shri K.B. Sharma Jammu
Shri Chandrakant Fulabhai Patel (Co-opted) Ahmedabad
Shri Abhay Vasant Arolkar (Co-opted) Mumbai
Shri Subhash Chander Gupta (Co-opted) New Delhi
Shri Rajive Bansal (Co-opted) Jalandhar
Shri Govinder Singh (Co-opted) New Delhi
COMMITTEE ON INSURANCE
Shri S. Gopalakrishnan, Chairman Hyderabad
Shri Pankaj Inderchand Jain, Vice-Chairman Mumbai
Shri Ashok Chandak, President (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Smt. Bhavna G. Doshi Mumbai
Shri S. Santhana Krishnan Chennai
Shri Manoj Fadnis Indore
Shri Amarjit Chopra New Delhi
Shri Sunil Bhargava Jaipur
Shri K.B. Sharma Jammu
Shri J. Balasubramanian (Co-opted) Hyderabad
Shri Shaileshkumar Sanmukhlal Shah (Co-opted) Mumbai
Shri V. Thiagarajan (Co-opted) Chennai
Shri Sandeep Batra (Co-opted) Mumbai
Shri Ram Avtar Sharma (Co-opted) Jaipur
AUDIT COMMITTEE
Shri S. Gopalakrishnan, Chairman Hyderabad
Shri K. S. Vikamsey, Vice-Chairman Mumbai
Shri Gopal Prasad Dokania Kolkata
Shri Vinod Jain New Delhi
Shri Sunil Bhargava Jaipur
COMMITTEE ON TRADE LAWS AND WTO
Shri Sunil Bhargava, Chairman Jaipur
Shri S. Santhana Krishnan, Vice-Chairman Chennai
Shri Ashok Chandak, President, (Ex-Officio) Nagpur
Shri R. Bupathy, Vice-President (Ex-Officio) Chennai
Shri N.V. Iyer Mumbai
Shri K.S. Vikamsey Mumbai
Shri N. Nityananda Bangalore
Shri Amarjit Chopra New Delhi
Shri R.C. Chandiwala New Delhi
Shri Vijay K. Choudhary (Co-opted) New Delhi
Shri Venugopala C. Govindan Nair (Co-opted) Kochi
Shri Alok Tandon (Co-opted) Delhi
Shri Ashwani Kumar (Co-opted) Ludhiana
Shri Harish Shantilal Waghela (Co-opted) Nagpur
Accounting Research Foundation
Shri Ashok Chandak, Chairman Nagpur
Shri R. Bupathy, Vice-Chairman Chennai
Smt. Bhavna G. Doshi Mumbai
Shri S. Gopalakrishnan Hyderabad
Shri Niranjan Saha Kolkata
Shri P.P. Pareek Jaipur
Shri N.D. Gupta New Delhi
Shri R.C. Chandiwala New Delhi
Peer Review Board
Shri Sunil Bhargava, Chairman Jaipur
Shri T.N.Manoharan, Vice-Chairman Chennai
Shri N.Y.Iyer Mumbai
Shri Pankaj Inderchand Jain Mumbai
Shri Vinod Jain New Delhi
Shri Manoj Fadnis Indore
Shri R.S. Mathrani
(Representing C&AG)
New Delhi
Shri Aditya Prakash
(Representing DCA)
New Delhi
Shri Aditya V. Lodha
(Representing FICCI)
Kolkata
Special Invitees
Shri P.M. Narielvala
(Former President of the Institute)
Kolkata
Shri N. Rangachary
(Chairman, IRDA)
Hyderabad
Justice Shri V.K. Singhal(Former Judge, Rajasthan High Court) Jaipur
Shri S.C. Basu
(Chairman-cum-Managing Director, Bank of Maharastra)
Pune
Committee for Development of Centres of Excellence
Shri Ashok Chandak, Chairman Nagpur
Shri R. Bupathy, Vice-Chairman Chennai
Shri Niranjan Saha Kolkata
Dr. Sunil Gulati New Delhi
Shri K.B. Sharma Jammu
Shri P.P. Pareek Jaipur
Financial Report Review Board
Shri Amarjit Chopra, Chairman New Delhi
Shri Santhanakrishnan, Vice Chairman Chennai
Shri K.S Vikamsey Mumbai
Shri Rajiv Mehrishi New Delhi
Shri G.C. Srivastava New Delhi
Shri Gopal Prasad Dokania Kolkata
Shri Manoj Fadnis Indore
C. ADHOC COMMITTEE
15th All India Conference Committee
Shri N.D. Gupta, Chairman New Delhi
Shri Ashok Chandak President (Co-Chairman) Nagpur
Shri R. Bupathy, Vice-President (Vice-Chairman) Chennai
Shri J.P. Gokhale Mumbai
Shri Niranjan Saha Kolkata
Shri P.P. Pareek Jaipur
Shri Sunil Bhargava Jaipur
Shri Amarjit Chopra New Delhi
Dr. Sunil Gulati New Delhi
Shri Vinod Jain New Delhi
Shri R.C. Chandiwala New Delhi
Shri K.B. Sharma Jammu
Shri Rajiv Mehrishi New Delhi
Shri G.C. Srivastava New Delhi
Shri Chranjot Singh Nanda, Chairman NIRC New Delhi
Shri M.S. Goyal, Vice-Chairman, NIRC New Delhi
Shri Vijay Kumar Gupta, Secretary, NIRC Faridabad
Shri Raman Mangla, Treasurer, NIRC New Delhi

Committee-wise break up of the meetings held during the year 2001-2002
S.NO Name of the Committee No, of Meetings
1. Executing Committee 10
2. Examination Committee 8
3. Disciplinary Committee 26
4. Accounting Standards Board 14
5. Auditing & Assurance Standards Board 7
6. Board of Studies 5
7. Committee for Members in Industry 4
8. Committee on Ethical Standards & Unjustified Removal of Auditors 4
9. Committee on Financial Markets and Investors' Protection 4
10 Committee on Information Technology 6
11. Committee on Vision and Restructuring 3
12 Continuing Professional Education Committee 5
13 Corporate Laws Committee 5
14 Editorial Board 3
15 Expert Advisory Committee 8
16. Fiscal Law Committee 7
17. ICAI-ICWAI-ICSI Coordination Committee 1
18. International Affairs Committee 1
19. Professional Development Committee 9
20. Public Relations Committee 2
21. Research Committee 6
22 Committee on Commerce Education & Career Counselling 3
23. Committee on Trade Laws & WTO 2
24. Committee on Insurance 4
25. Audit Committee 5
26 15th All India Conference Committee 2
  Total 154
(Ref. Para 4.2 of the Annual Report)
Statistics of Students Appeared and Passed in the Examinations held in the year 2001 and May,2002
INTERMEDIATE AND FINAL EXAMINATIONS 2001
GROUP / UNIT INTERMEDIATE FINAL
  May
2001
Nov.
2001
May
2002
May
2001
Nov
2001
May
2002
Number of Places where examination centres were set up 83 85 87 83 85 87
Number of Examination Centres 147 151 146 123 129 139
GROUP / UNIT
Group - I
Number of candidates appeared 30190 37948 31247 20028 20964 22331
Number of candidates declared successful 5084 8524 8513 2109 3869 5218
Group - II
Number of candidates appeared 30746 37667 33793 19723 19884 22468
Number of candidates declared succeessful 4265 6822 5015 4832 2867 8748
Both Groups
Number of candidates appeared 14292 20149 16709 9707 9003 10982
Number of candidates declared successful 1013 2791 1601 933 722 2202
UNIT
Number of candidates appeared 462 449 491 45 51 67
Number of candidates declared successful 06 22 85 1 Nil 01
FOUNDATION EXAMINATION - 2001
  May 2001 November 2001 May 2002
Number of places where Examination Centres were set up 83 85 87
Number of Examination Centres 122 117 131
Number of candidates appeared 21235 13820 19934
Number of candidates declared sucessful 5802 4085 5818
(Ref. Para 4.2 of the Annual Report)
Names of Prize Winners in the Examination held in May and November, 2001
FINAL EXAMINATION
The following candidates were awarded Certificate of Merit:
Rank May, 2001 Examination November, 2001 Examination
Roll No. Name and Marks Obtained Roll No. Name and Marks obtained
I 09252 (Ms.) R.PADMAPRIYA
(512 marks out of 800)
14186 (Ms.) RAKHI MUNOT
(554 marks out of 800)
II 12875 NITIN JAIN
(507 marks out of 800)
15748 PRITESH AGRAWAL
III 09426
jointly with 25300
VIKAS ARYA
Jointly with
MANISH BHAG CHAND JAIN
499 marks out of 800
31635 (Ms.) CHRISTI PAVANKUMAR VED
(503 marks out of 800)
Name and Basis of the Prize / Medal Name, Roll No. and marks obtained by the Prize / Medal Winner in the Final Examination
KANTILAL V. PATEL GOLD MEDAL to the Bes Student of the year (Ms.) RAKHI MUNOT
Roll No. 14186 (November, 2001)
554 marks out of 800
The G. BASU FOUNDATION AWARD to the Best Student of the year (Ms.) RAKHI MUNOT
Roll No. 14186 (November, 2001)
554 marks out of 800
SMT. SAROJINI SITARAM MEMORIAL SILVER MEDALto the Best Lady Candidate of the Year (Ms.) RAKHI MUNOT
Roll No. 14186 November, 2001
554 marks out of 800
THE S. VISWANATHAN MEMORIAL PRIZE to the Best Lady Candidate of the year (Ms.) RAKHI MUNOT
Roll No. 14186 (November, 2001)
554 marks out of 800
SMT. VANJANA RANI SILVER MEDAL to the Best Lady Candidate of the Year (Ms.) RAKHI MUNOT
Roll No. 14186 (November, 2001)
554 marks out of 800
The SHAILESH KAPADIA SILVER MEDAL for the Best Student among the Second Best Student of the Year PRITESH AGRAWAL
Roll No. 15748 (November, 2001)
516 marks out of 800
DOHA CHAPTER OF ICAI SILVER MEDAL to the Third Best Candidate of the Year (Ms.) CHRISTI PAVANKUMAR VED
Roll No. 31635 (November, 2001)
503 marks out of 800
  May 2001 November, 2001
The G.P.KAPADIA First President Gold Medal to the Best Student of the Examination (Ms.) R.PADMAPRIYA
Roll No. 09252
512 marks out of 800
(Ms.) RAKHI MUNOT
Roll No. 14186
554 marks out of 800
J.S. LODHA GOLD MEDAL to the Best Student of the Examination (Ms.) R.PADMAPRIYA
Roll No. 09252
512 marks out of 800
(Ms.) RAKHI MUNOT
Roll No. 14186
554 marks out of 800
The SARADAMBA VISWESWARAIYA SILVER MEDALfor the best Student of the Examination (Ms.) R.PADMAPRIYA
Roll No. 09252
512 marks out of 800
(Ms.) RAKHI MUNOT
Roll No. 14186
554 marks out of 800
The RAMACHANDRA SINGHI PRIZE to the Best Student of the Examination (Ms.) R.PADMAPRIYA
Roll No. 09252
512 marks out of 800
(Ms.) RAKHI MUNOT
Roll No. 14186
554 marks out of 800
The R. SIVABHOGAM PRIZE to the Best Lady Candidate of the Examination (Ms.) R.PADMAPRIYA
Roll No. 09252
512 marks out of 800
(Ms.) RAKHI MUNOT
Roll No. 14186
554 marks out of 800
T.C. MINAKSHISUNDARAM PRIZE for the Best Lady Candidate (Ms.) R.PADMAPRIYA
Roll No. 09252
512 marks out of 800
(Ms.) RAKHI MUNOT
Roll No. 14186
554 marks out of 800
The R.K. KHANNA Past President Gold Medal for the Second Best Student of the Examination NITIN JAIN
Roll No. 12875
507 marks out of 800
PRITESH AGRAWAL
Roll No. 15478
516 marks out of 800
The JAYANTILAL K THAKKAR MEMORIAL PRIZE to the Second Best Student of the Examination NITIN JAIN
Roll No. 12875
507 marks out of 800
PRITESH AGRAWAL
Roll No. 15478
516 marks out of 800
DR. I.B. SINHA MEMORIAL PRIZE to the Third Best Candidate of the Examination VIKAS ARYA
(Roll No. 09426)
jointly with
MANISH BHAG CHAND JAIN (Roll no. 25300) 499 marks out of 800
(Ms.) CHRISTI PAVANKUMAR VED
Roll No. 31635
503 marks out of 800
The N.N. DAS PRIZE to the Best Student of the Year in Group -I (Ms.) RAKHI MUNOT
Roll No. 14186 (November, 2001)
267 marks out of 400
The BALACHANDER MEMORIAL PRIZE to the Best Student of the Year in Group - II (Ms.) RAKHI MUNOT
Roll No. 14186 (November, 2001)
267 marks out of 400
The KERALA VARMA MEMORIAL PRIZE to the Best Student in Group -I HARI P.N.
Roll No. 09747
266 marks out of 400
(Ms.) RAKHI MUNOT
Roll No. 14186
267 marks out of 400
The P.N. GHOSH MEMORIAL PRIZE to the Best Student in Group -II (Ms.) JAYANTHI CHANDRASEKAR
Roll No. 09312
273 marks out of 400
(Ms.) RAKHI MUNOT
Roll No. 14186
267 marks out of 400
K.C.KHANNA PRIZE for the Best Paper on Advanced Accounting (Paper1) (Ms.) AGRAWAL VEENA OMPRAKASH
Roll No. 02577
79 marks out of 100
GANESHKUMAR C. SHETTY
Roll No. 27684
99 marks out of 100
SHRI D. RANGASWAMY MEMORIAL PRIZE for the Best Paper on Advanced Accounting (Paper 1) (Ms.) AGRAWAL VEENA OMPRAKASH
Roll No. 02577
79 marks out of 100
GANESHKUMAR C. SHETTY
Roll No. 27684
99 marks out of 100
SANDEEP DAROLIA MEMORIAL PRIZE for the Best Paper on Advanced Accounting (Paper 1) (Ms.) AGRAWAL VEENA OMPRAKASH
Roll No. 02577
79 marks out of 100
GANESHKUMAR C. SHETTY
Roll No. 27684
99 marks out of 100
The SIR SHAPOORJI BILLIMORIA PRIZE for the Best Papers on Accounting (Paper 1 and 2) NITIN JAIN
Roll No. 12875
147 marks out of 200
BHARAT RAGHAVJI SHAH
Roll No. 23883
155 marks out of 200
The J.K. DOSHI PRIZE for the Best Paper on Management Accounting and Financial Analysis (Paper 2) NEESHANT UPADHYA
Roll No. 13826
78 marks out of 100
BHARAT RAGHAVJI SHAH
Roll No. 23883
81 marks out of 100
LATE LT. COLONEL AMBUJ NATH BOSE MEMORIAL PRIZE for the Best Paper on Management Accounting and Financial Analysisn (Paper 2) NEESHANT UPADHYA
Roll No. 13826
78 marks out of 100
BHARAT RAGHAVJI SHAH
Roll No. 23883
81 marks out of 100
The A.F. FERGUSON PRIZE for the Best Paper on Advanced and Management Auditing (Paper 3) DHEERAJ AJMERA
Roll No. 18605
77 marks out of 100
PRAVIN PROMOD MULEY
Roll No. 29072
68 marks out of 100
The R. VENKATESAN MEMORIAL PRIZE for the Best Paper on Advanced and Management Auditing (Paper 3) DHEERAJ AJMERA
Roll No. 18605
77 marks out of 100
PRAVIN PROMOD MULEY
Roll No. 29072
68 marks out of 100
The S.P. KANSAL MEMORIAL PRIZE for the Best Paper on Advanced and Management Auditing (Paper 3) DHEERAJ AJMERA
Roll No. 18605
77 marks out of 100
PRAVIN PROMOD MULEY
Roll No. 29072
68 marks out of 100
The SUKH NANDAN GUPTA KAPOORI DEVI PRIZE to the Lady Candidate for the Best Paper on Advanced and Management Auditing (Paper 3) (Ms.) SHRUTHI P. JAIN
Roll No. 09227
70 marks out of 100
(Ms.) SONIA PRAVIN CHANDRA SHAH
(Roll No. 25096)
Jointly with (Ms.) CHRISTI PAVANKUMR VED
(Roll No. 31635)
60 marks out of 100
The U.C. MAJUMDAR PRIZE for the Best Paper on Corporate Laws and Secretarial Practice (Paper 4) PANDE GAURI SHRIKANT
Roll No. 28912
76 marks out of 100
(Ms.) RAKHI MUNOT
Roll No. 14186
73 marks out of 100
The S.M. SHAH PRIZE for the Best Paper on Corporate Laws Secretarial Practice (Paper 4) PANDE GAURI SHRIKANT
Roll No. 28912
76 marks out of 100
(Ms.) RAKHI MUNOT
Roll No. 14186
73 marks out of 100
The R.V.K. UMARJEE PRIZE for the Best paper on Advanced Cost Accounting and Cost Systems (Paper 5) RAVI SHANKAR SUNDARAM IYER
Roll No. 22645
77 marks out of 100
(Ms.)POORVI KALYANI KALLURI
Roll No. 14229
71 marks out of 100
S.S. GHOSH PRIZE for the Best Paper on Advanced Cost Accounting and Cost Systems (Paper 5) RAVI SHANKAR SUNDARAM IYER
Roll No. 22645
77 marks out of 100
(Ms.)POORVI KALYANI KALLURI
Roll No. 14229
71 marks out of 100
The T.R. CHADHA PRIZE for the Best Paper on System Analysis, Data Processing & Quantitiative Techniques (Paperm 6) (Ms.) PRIYANKA A. UGRANKAR
Roll No. 21094
89 marks out of 100
(Ms.) KURTKOTI ANAGHA ASHOK
Roll No. 30561
82 marks out of 100
The MANISH GUPTA MEMORIAL PRIZE for the Best Paper on Systems Analysis, Data Processing & Quantitative Techniques (Paper 6) (Ms.) PRIYANKA A. UGRANKAR
Roll No. 21094
89 marks out of 100
(Ms.) KURTKOTI ANAGHA ASHOK
Roll No. 30561
82 marks out of 100
The N.M. SHAH PRIZE for the Best Paper on Direct Taxes (Paper 7) AMIT UPENDRA MODI
Roll No. 21937
79 marks out of 100
(Ms.) RAKHI MUNOT
Roll No. 14186
73 marks out of 100
The SURI MEMORIAL PRIZE for the Best Paper on Direct Taxes (Paper 7) AMIT UPENDRA MODI
Roll No. 21937
79 marks out of 100
(Ms.) RAKHI MUNOT
Roll No. 14186
73 marks out of 100
The A.J. SHAH AMITA MEMORIAL PRIZE for the Best Paper on Direct Taxes (Paper 7) AMIT UPENDRA MODI
Roll No. 21937
79 marks out of 100
(Ms.) RAKHI MUNOT
Roll No. 14186
73 marks out of 100
K. ANNADHNAM PRIZE for the Best Paper on Direct Taxes (Paper 7) AMIT UPENDRA MODI
Roll No. 21937
79 marks out of 100
(Ms.) RAKHI MUNOT
Roll No. 14186
73 marks out of 100
VANDANA SURYANARAYANAN PRIZE for the Best Paper on Indirect Taxes (Paper 8) (Ms.) RESHMI RUNGTA
Roll No. 06710
79 marks out of 100
DEEPAK GUPTA
Roll No. 11997
77 makrs out of 100
SHRI M.D. RAJAMACHIKAR PRIZE for the Best Paper on Indirect Taxes (Paper 8) (Ms.) RESHMI RUNGTA
Roll No. 06710
79 marks out of 100
DEEPAK GUPTA
Roll No. 11997
77 makrs out of 100
INTERMEDIATE EXAMINATION
RANK May, 2001 Examination November, 2001 Examination
Roll No. Name and Marks Obtained Roll No. Name and Makrs Obtained
I 28138 PRAKASH GAURAV GOEL
406 marks out of 600
23014 (Ms.) DIVYA JHALAN
(455 marks out of 600)
II 10175 (Ms.) PIYALI SINHA
(390 marks out of 600)
16535 SACHIN GARG
(424 marks out of 600)
III 03765 (Ms.) NEHA JAIKISHAN GROVER
384 marks out of 600
01524jointly with07100 (Ms.) RAJUL KANTILAL FURIA
jointly with
(Ms.) NEHA GUPTA
423 makrs out of 600
Name and Basis of the Prize / Medal Name, Roll No. and marks obtained by the Prize / Medal Winner in the Intermediate Examination
The SURI MEMORIAL PRIZE to the Best Candidate of the Year (Ms.) DIVYAJALAN
Roll No. 23014 (November, 2001)
455 marks out of 600
DOHA CHAPTER OF ICAI PRIZE to the Second Best Candidate of the Year SACHIN GARH
Roll No. 16535 (November, 2001)424 marks out of 600
  May, 2001 November, 2001
The G.P. KAPADIA First President Prize to the Best Student PRAKASH GAURAV GOEL
Roll No. 28138
406 marks out of 600
(Ms.) DIVYA JALAN
Roll No.23014
455 marks out of 600
J.S. LODHA GOLD MEDAL to the Best Student PRAKASH GAURAV GOEL
Roll No. 28138
406 marks out of 600
(Ms.) DIVYA JALAN
Roll No.23014
455 marks out of 600
The SUDERSHEN KUMAR BALASARIA MEMORIAL PRIZE to the Best Lady Candidate (Ms.) PIYALISINHA
Roll No. 10175
390 marks out of 600
(Ms.) DIVYA JALAN
Roll No.23014
455 marks out of 600
The SHAILESH KAPADIA AWARD for the Second Best Student (Ms.) PIYALISINHA
Roll No. 10175
390 marks out of 600
SACHIN GARG
Roll No. 16535
424 marks out of 600
P.P. GURURAJA UPADHYAYA MEMORIAL PRIZE for the Third Best Candidate (Ms.) NEHA JAIKISHAN GROVER
Roll No. 03765
384 marks out of 600
(Ms.) RAJUL KANTILAL FURIA
Roll No. 01524
Jointly with
NEHA GUPTA
(Roll No. 07100)
423 marks out of 600
Prof. T.S. GREWAL AWARD for the Best Paper on Advanced Accounting (Paper 1) (Ms.) ARTHI JAYARAMAN
Roll No 13627
88 marks out of 100
AMIT SINGLA
Roll No 45736
90 marks out of 100
The DINESH HIMATLAL SHAH PRIZE for Best Paper on Auditing (Paper 2) NARINDER SINGH
Roll No. 19177
83 marks out of 100
(Ms.) NEETA JAIN
Roll No. 52260
86 marks out of 100
K.C. KHANNA PRIZE for the Best Paper on Auditing (Paper 2) NARINDER SINGH
Roll No. 19177
83 marks out of 100
(Ms.) NEETA JAIN
Roll No. 52260
86 marks out of 100
RAM KUMAR PRIZE to the Lady Candidate for the Best Paper on Auditing (Paper 2) (Ms.) MINAL SAGLANI
Roll No. 41342
76 marks out of 100
(Ms.) NEETA JAIN
Roll No. 52260
86 marks out of 100
The Suresh C. MATHUR PRIZE for the Best Paper on Corporate & Other Laws (Paper 3) RANGAPPA S.
Roll No. 04204
80 marks out of 100
KOEL RAY (Roll No. 30000)
jointly with
DEEPAK CHANDRA PRAKASH GUPTA
(Roll No. 35296) and DIGANT S. HATHI
(Roll No. 35447)
86 marks out of 100
VANDANA SURYANARAYANAN PRIZE for the Best Paper on Cost Accounting (Paper 4) (Ms.) PIYALI SINHA
Roll No. 10175
85 marks out of 100
BHASKAR M.S.
(Roll No. 04903)
jointly with
VIJAY VERMA
(Roll No. 36267)
91 marks out of 100
U.K.BHARGAVA PRIZE for the Best Paper on Income Tax and Central Sales Tax (Paper 5) (Ms.) TORAL KANAIYALAL BAROT
Roll No. 34561
84 marks out of 100
(Ms.) NEETA SURESH MALPANI
Roll No. 44225
88 marks out of 100
PROF. B.B. KANSAL PRIZE for the Best Male Candidate in the Paper of Organization & Management (Paper 6 - Section 'A') HITESH DATTU RAO MARATHE
Roll No
RAKESH VENKATA RAMANA
Roll No. 11533
39 marks out of 50
MRS. MOORTI DEVI KANSAL PRIZE for the Best Female Candidate in the Paper of Organization & Management (Paper 6 - Section 'A') (Ms.) MRUNALINI PRAMOD MEHENDALE
Roll No. 39321
35 marks out of 50
(Ms.) SHALINI PRASAD (Roll No. 04545)
Jointly with
(Ms.) RASHI MAHAJAN
(Roll No. 15613)
42 marks out of 50
FOUNDATION EXAMINATION
Ranks May, 2001 Examination November, 2001 Examination
Roll No. Name and Marks obtained Roll No. November, 2001 Examination
I 10732 MOSAM GADIA
333 marks out of 400
06190 SATYAKI CHANDA
325 marks out of 400
II 13962 (Ms.)BHARAMBE CHAITALI SUBHASH 10875 ARINDAM PALIT
320 marks out of 400
III 05754 (Ms.) R. SARADA
327 marks out of 400
08226 SUMIT BAJAJ
316 marks out of 100
Name and Basis of the Prize / Medal Name, Roll No, and obtained by the Prize / Medal Winner in the Foundation Examination
The MAHAVEER RAJ BHANDHARI PRIZE for the Best Candidate MOSAM GADIA
Roll No. 10732 (May 2001)
333 marks out of 400
  May 2001 November, 2001
SHRI SULTAN CHAND MEMORIAL PRIZE for the Best Candidate MOSAM GADIA
Roll No. 10732
333 marks out of 400
SATYAKI CHANDA
Roll No. 069190
325 marks out of 400
S.R. BATLIBOI PRIZE for the Best Candidate MOSAM GADIA
Roll No. 10732
333 marks out of 400
SATYAKI CHANDA
Roll No. 069190
325 marks out of 400
P.N.SHAH PRIZE for the Best Lady Candidate (Ms.) BHARAMBE CHAITALI SUBHASH
Roll No. 13962
328 marks out of 400
ARINDAM PALIT
Roll No 10875
320 marks out of 400
SHRI SULTAN CHAND MEMORIAL PRIZE for the Second Best Candidate (Ms.) BHARAMBE CHAITALI SUBHASH
Roll No. 13962
328 marks out of 400
ARINDAM PALIT
Roll No. 10875
320 marks out of 400
CHANDULAL KAPURI DEVI CHARITABLE TRUST PRIZE for the Third Best Candidate (Ms.)SARADA
Roll No. 05754
327 marks out of 400
SUMIT BAJAJ
Roll No . 08226
316 marks out of 400
K.V. CHANDRAMOULI MEMORIAL PRIZE for the Best Paper on Mathematics (Paper 3 - Section 'A') (Ms.) S. SOUNDARAM
jointly with
(Ms.) SHIKHA SINGL, MANOBHAV VERMA, YASH CHANANA, DEEPAL JAIN, SUMIT CHUGH, AMIT KUMAR AGARWAL, VAIBHAV GUPTA, (Ms.) ANJAMUKUL TRIVEDI, (Ms.) NIDHI SARAWGI and Roll Nos. 06151 jointly with 07025, 07709, 08374, 08569, 09622, 11752, 12919, 14896 and 19634 respectively 50 marks out of 50
SUHAS KHULLAR jointly with INDERJIT SINGH, TEJAS J. SHAH, (Ms.) ASHA DEEP SAWHNEY, SACHIN BAJAJ, ANKUR AGARWAL, (Ms.) DEEPIKA GUPTA, VIKAS BANSAL, (Ms.)SHWETA ARORA, (Ms.) PRIYANKA SINGAL, PRAMOD KUMAR SHUKLA, (Ms.) GURPEET KAUR, HEMANT JAIN, SACHIN GOEL, (Ms.) MADHUR JAIN, RAJEEV KUMAR JHA, ANJU DATA, GEETESH AHUJA, ATUL TANTED, HARISH GUPTA, ARUNAVA BANERJEE, AYAN CHAKRABORTY, DEBAJYOTI BHATTACHARYA, SATYAKI CHANDA, SHAMIT SHAILESH, (Ms.)ANINDITA GUHA, SANTOSH KUMAR TEWARI, (Ms.) MINAKSHI BHOJNAGARWALA, SANGEET NARSARIA, VISHAL AGARWAL, ARUN KUMAR JAISWAL, (Ms.) RICHA JAIN, ARINDAM PALIT AJY GOEL, KRISHNA KUMAR DAS, RAJA SEKHARA RAO BOPPANNA, RAVI ACHARYA RAJESH KUMAR SINGH and KAMLESH KUMAR JHA Roll Nos: 00626,01768, 02806, 02877,03037, 03344, 03426,03432, 03438, 03601,03759,03952, 04101,04180,04203, 04510,05097,05137, 05387, 06037, 06052, 06053, 06190, 06591, 06991, 07048, 07297, 07923, 07954, 07955, 08637, 09040, 10875, 11895, 11908, 12706, 12870, 13720, and 14594 respectively 50 out of 50 marks
GANESHMAL PATNI MEMORIAL PRIZE for the Best Paper on Statistics (Paper 3- Section 'B') (Ms.) S.SIVASHANKARI jointly with IYER ANAND SANKARAN, (Ms.) ANUJA MUKUL TRIVEDI and BAXAMUSA MURAZAJAFFER Roll Nos. 06115 jointly with 13699, 14896 and 20066 respectively 49 marks out of 50 RAJEEV KUMAR JHA jointly with SANDEEP AGARWAL, SANDEEP JAISWAL and PRATEEK MAHESHWARI Roll Nos, 04203, 08121, 08193, and 08550 respectively 50 marks out of 50
The VENKATACHALM MOHAN PRIZE for the Best Paper on Economics (Paper 4) (Ms.) SUHASANI SAMPATH KUMAR Roll No. 01721 82 marks out of 100 VIKASH MITTAL jointly with YAROSHAL SHRESTHA Roll Nos. 01688 and 12908 respectively 78 marks out of 100

Statistics of cases placed before the Council and the Disciplinary Committee
during the period from 1st April, 2001 to 31st August, 2002
(Ref. Para 4.3 of the Report)
S.No Pariculars No of cases
1. a) Number of cases considered by the Councils under Section 21 for its prima facie opinion as to whether the case warranted reference to Disciplinary Committee or not

b) Out of the above, number of cases referred by the Council to Disciplinary committee for enquiry
272



65
2. Number of cases concluded by Disciplinary Committee during the above period (out of the total pending cases with the Committee for enquiry) 83
3. Number of reports of Disciplinary Committee considered by the Council (including reports of those cases, which were heard during the earlier years) 126
4. Out of the above:-
  a) Number of cases in which Respondents have been found guilty under the First Schedule for affording hearing before the Council before passing an order under Section 21 (4) of the Chartered Accountants Act. 1949. 44
  b) Number of cases in which Respondents have been found guilty under the Second Schedule and / or other misconduct to be referred to High Courts under Section 21 (5) of the Chartered Accountants Act, 1949. 15
  c)Number of cases in which Respondents have been found guilty under the First Schedule and the Second Schedule / other misconduct. 05
  d) Number of cases referred back to the Disciplinary Committee for further enquiry. 05
  e) Number of cases in which Respondents have been found not guilty of any misconduct. 57
5. Number of cases in which Orders passed under Section 21 (4) in respect ofthe Respondents who were found guilty under the First Schedule. 24
6. Number of cases disposed of by the High Court Under Section 21 (6). 02
(Ref. Para 5 of the Annual Report
Resume of Important Activities of Certain Non-Standing Committee
Given below is a resume of important activities of some of the Non-Standing Committees of the Council:
1. ACCOUNTING STANDARDS BOARD
1.1 New / revised Accounting Standards Issued
  • AS 24 Discontinuing Operations
  • AS 25 Interim Financial Reporting
  • AS 26 Intangible Assets
  • AS 27 Financial Reporting of Interests in Joint Ventures
  • AS 28 Impairment of Assets
  • Revised Accounting Standard (AS) 7, Construction Contracts.
1.2 Exposure Draft of revised Accounting Standard (AS) 11, The Effects of Changes in Foreign Exchange Rates, is likely to be issued shortly for public comments.

1.3 Accounting Standards Interpretations

During the period , a Sub-Committee of the Accounting Standards Board, i.e., Accounting Standards Interpretation Sub-Committee (ASISC) has been constituted for drafting interpretations of accounting standards. The first Accounting Standard Interpretation (ASI) 1, Substantial Period of Time (AS 16, Borrowing Costs) has already been issued. Several other matters for interpretation of various accounting standards are under consideration.

1.4 General Clarifications on Accounting Standards

During the period, the Board has issued eight General Clarifications (GCs) with a view to clarify certain provisions of the accounting standards. Some other matters are also under consideration of the Accounting Standards Board for issuance of General Clarifications.
1.5 New Accounting Standards under preparation

The drafts of following proposed Accounting Standards are under preparation:
  • Financial Instruments
  • Provisions, Contingent Liabilities and Contingent Assets
  • Agriculture
  • Accounting by Insurance Enterprises

Besides the above, a study group has been constituted to consider the matter relating to preparation of accounting standard for banks.

1.6 Accounting Standards under revision

The drafts of following revised accounting standards are under preparation:
  • Accounting Standard (AS) 1, Disclosure of Accounting Policies
  • Accounting Standard (AS) 5, Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
  • Accounting Standard (AS) 10, Accounting for Fixed Assets
  • Accounting Standard (AS) 14, Accounting for Amalgamations
1.7 Other projects under progress

The following other project are also in progress:
  • Preparation of Guidance Note on Revenue Recognition for Software Produced for Sale.
  • Revision of the Guidance Note on Terms Used in the Financial Statements.
  • Preparation of a Guidance Note in respect of Issues in Consolidated Financial Statements
  • Revision of the Preface to the Statements of Accounting Standards.
  • Finalisation of comments on the Exposure Draft on Improvements to International Accounting Standards issued by the International Accounting Standards Board.
1.8 Small and Medium Sized Enterprises

Besides the above, the matter relating to applicability of accounting standards to Small and Medium Sized Enterprises (SMEs) is also under consideration of the Board.
1.9 Sub-Committee of the Board on Accounting Standards for Governmental Bodies

The Following are the activities of the Sub-Committee of the Board on Accounting Standards for Governmental Bodies:
  • A study group has been constituted to prepare the basic draft of the Conceptual Framework for Accounting and Reporting for Urban Local and Similar Bodies.

  • The Sub-Committee decided to develop Accounting Standards for government bodies on the lines of the International Public Sction Accounting Standars issued by the Public Sector Committee of International Federation of Accountants (IFAC), For this purpose, the Sub-Committee has decided to constitute study groups to prepare the basic drafts of the following standards corresponding to International Public Section Accounting Standards:

    - Presentation of Financial Statements
    - Cash Flow Statements
    - Net Surplus or Deficit for the Period, Fundamental Errors and Changes in Accounting Policies
    - Borrowing Costs
    - Revenue from Exchange Transactions
    - Construction Contracts
    - Inventories
    - Leases
    - Events after the Reporting Date
    - Investments
    - Property, Plant and Equipment
    - Segment Reporting
    - Related Party Disclosures
    - Accounting for Government Grants
    - Accounting for Retirement Benefits in the Financial Statements of Employers

  • The Sub-Committee decided to revise the Technical Guide on Accounting and Financial Reporting by Urban Local Bodies to not only incorporate the Accounting Standards issued subsequent to the last edition of the Technical Guide, but also to address various issues arising in its implementation by various urbal local bodies. The Sub-Committee, accordingly, decided to constitute a study group for this purpose.

  • The Sub-Committee also decided to conduct intensive workshops at Regional Level, on accounting for urban local bodies. The workshop would tentatively deal with aspects such as need for double entry system of book keeping, accrual basis of accounting, compiling opening balances, problems faced in the implementation of the accrual basis of accounting, and case studies. It has also been decided to hold a National Level Seminar.

2. AUDITING & ASSURANCE STANDARDS BOARD
2.1 Auditing Standards Released
  • SAP 6 (Revised) Risk Assessments and Internal Control
  • SAP 23 Related Parties
  • SAP 24 Audit Considerations Relating to Entities Using Service Organisations
2.2 Guidance Notes Released
  • Guidance Note on Audit of Companies Carrying on General Insurance Business
  • Guidance Note on Audit of Companies Carrying on Life Insurance Business
  • Guidance Note on Audit of Accounts of Members of Stock Exchange
  • Guidance Note on Audit of Expenses
  • Guidance Note on Engagements to Perform Agreed upon Procedures.
2.3 Exposure Drafts issued for comments
  • Proposed Revised SAP 10, Using the Work of Another Auditor
  • Proposed AAS, Comparatives
2.4 Important Pronouncements
  • Format of the Auditor's Report to the Board of Directors on Consolidated Financial Statements
  • Format of the Auditor's Report (Revised)
2.5 Other Projects in Progress
  • Statement on Standard Auditing Practices on Fraud and Error (Revised)
  • Auditing and Assurance Standard on Auditing in a Computer Information Systems Environment
  • Guidance Note on Audit of Miscellaneous Expenditure Shown in Balance Sheet
  • Guidance Note on Computer Assisted Audit Techniques
  • Guidance Note on Auditor's Report on Financial Information in Offer Documents (Revised)
  • Auditing and Assurance Standard on Terms of Audit Engagements.
  • Auditing and Assurance Standard on External Confirmations
  • Glossary of Terms
  • Auditing and Assurance Standard on Auditor's Report on Financial Statements
  • Guidance Note on Special Considerations in the Audit of Small Entitites
  • Guidance Note on Audit of Capital and Reserves
  • Guidance Note on Review of Interim Financial Information
  • Auditing and Assurance Standard on Communications of Audit Matters to Those Charged with Governance
2.6 Proposed Projects
  • Revision of the Preface to the Statements on Standard Auditing Practices
  • Guidance Note on Audit of Non-Banking Financial Companies
  • Guidance Note on Auditing in a Computer Information Systems Environment, based on IAPS 1001 on IT Environments - Stand Alone Personal Computers ; IAPS 1002 on IT Environments - online Computer Systems; IAPS 1003 on IT Environments; Data Base Management Systems.
  • Guidance Note on Inter-Bank, Confirmation Procedures
  • Guidance Note on Audit of Derivative Instruments
  • Guidance Note on Audit of Power Sector Companies
  • Guidance Note on Audit of Mining Companies
  • Guidance Note on of Tea Industry
  • Guidance Note on Audit of Forest Companies
  • Guidance Note on Audit of Telecommunication Industry
3 RESEARCH COMMITTEE
3.1 Projects in Progress:
  • Environmental and Energy Audit
  • Guidance Note on Accounting by Retirement Benefit Plans
  • Guidance Note on Accounting for Equity Stock Future
  • Guidance Note on Accounting for Investments in the Financial Statements of Venture Capital Companies
  • Guidance Note on Accounting for Securitisation
  • Guidance Note on Accounting Treatment for Demergers
  • Guidance Note on manner of estimating future cash flows and discount rates
  • Guidelines on Internal Audit - Coal Mining
  • Guidelines on Internal Audit - Consumer Electronics Industry
  • Guidelines on Internal Audit - Fertiliser Industry
  • Guidelines on Internal Audit - Steel Industry
  • Guidelines on Internal Audit - Textile Industry
  • Preparation of formats of financial statements of Panchayati Raj Institutions
  • Revision of General Guidelines on Internal Audit
  • Review of Third Schedule to the Banking (Regulation) Act, 1949
  • Revision of Accounting and Control Systems in a Shipping Company
  • Revision of An Approach to Social Cost-Benefit Analysis under Indian Conditions (Edition 1981)
  • Revision of Guidance Note on Accounting Treatment for MODVAT / CENVAT
  • Revision of Guidance Note on Expenditure During Construction Period
  • Revision of Guidance Note on Provision for Expenses and Section 43B of the Income Tax Act.
  • Revision of Guidelines on Internal Audit - Cement Industry
  • Revision of Guidelines on Internal Audit - Construction Industry (Edition 1987)
  • Revision of Guidelines on Internal Audit -Jute Industry (Edition 1987)
  • Revision of Guidelines on Internal Audit - Tea Industry
  • Revision of Integrated System of Cost & Financial Accounts (Edition 1973)
  • Revision of Internal Control Questionnaire (Edition 1976)
  • Revision on Management Control System (Edition 1977)
  • Revision of Monograph on Accounting for Agricultural Operations (Editions 1983)
  • Revision of Monograph on Accounting fo Livestock (Editon 1983)
  • Revision on Monograph on Accounting for Poultry Farming (Edition 1980)
  • Revision of Monograph on Accounting for Rubber Plantations (Edtion 1983)
  • Revision of Project Appraisal - Requirements of Indian Financial Institutions (Edition 1983)
  • Revision of Study on Share Valuation
  • Revision of Technical Guide to Audit of Educational Institutions
  • Revision of The Payment of Bonus Act, 1965 - An Accountant's Study (Edition 1990)
  • Revision of Trends in Published Accounts (Edition 1985)
  • Study on Activity Based Costing
  • Study on Insurance Survey Work
  • Study on Oil and Gas Producing Enterprises
  • Study on Risk Management in Banking
  • Study on Securitisation
  • Technical Guide for Accounting and Audit of Courier Companies
  • Technical Guide for Accounting and Audit of Lottery Business
  • Technical Guide for Accounting Audit of Surface Transport Indusry (enterprises involved in carriage of passengers)
  • Technical Guide for Accounting and Audit of Surface Transport Industry (enterprises involved in carriage of goods
  • Technical Guide for Audit of Aluminium Industry
  • Technical Guide on Accounting and Audit in Edible Oil Industry
  • Technical Guide on Accounting and Audit in Heavy Engineering Indusry
  • Guidelines on Internal Audit - Paint and Varnishes Industry
  • Technical Guide on Accounting and Audit in Paper Industry
  • Technical Guide on Accounting and Audit in Plastic Industry
  • Technical Guide on Accounting and Audit in Road, Toll Bridges and Other Infrastructure Projects
  • Technical Guide on Accounting and Audit of Aqua Farming (including Marine Products)
  • Technical Guide on Accounting and Audit of IT Enabled Services
  • Technical Guide on Accounting and Auditn of Social Security Plan
  • Technical Guide on Accounting and Audit of Software Companies
  • Technical Guide on Accounting and Audit of the Enterprises involved in Entertainement and Event Management
  • Technical Guide on Accounting and Auditing of Book Publishing Industry
  • Technical Guide on Accounting and Auditing for Mutual Funds
  • Technical Guide on Accounting and Auditing in Aeronautics Industry
  • Technical Guide on Accounting and Auditing in Automobile Industry
  • Technical Guide on Accounting and Auditing in Biotech Industries
  • Technical Guide on Accounting and Auditing in Light Engineering Industry
  • Technical Guide on Accounting and Auditing in Drugs and Pharmaceutical Industry
  • Technical Guide on Accounting and Auditing in Enterprises involved in Production of Filims and Electronic Media
  • Technical Guide on Accounting and Auditing in Food Processing Industry
  • Technical Guide on Accounting and Auditing in Glass Industry
  • Technical Guide on Accounting and Auditing in Ink Industry
  • Technical Guide on Accounting and Auditing in Leather Industry
  • Technical Guide on Accounting and Auditing in NBFCs
  • Technical Guide on Accounting and Auditing in Oil and Gas Regining and Marketing (downstream) Enterprises
  • Technical Guide on Accounting and Auditing in Plantation Industry
  • Technical Guide on Accounting and Auditing in Tele-communications Industry
  • Technical Guide on Accounting and Auditing in Zinc Industry
  • Guidelines on Internal Audit of Share Brokers
  • Technical Guide on Accounting and Auditing in Newspaper Publishing Industry
  • Guidance Note on Accounting for Oil and Gas Producing Enterprises
  • Revision of Technical Guide for Audit of Co-operative Societies
  • Study on Brand Valuation
  • Study on valuation of public sector undertakings for the purpose of disinvestment
  • Technical Guide on Accounting and Audit of Chit Funds
  • Guidelines on Internal Audit - Travel Service Business
  • Technical Guide on Accounting and Auditing in Non-Governmental Organisatins (NGOs)
  • Comprehensive Guidance Note on Accounting for Derivatives
  • Guidance Note on Accounting for Factored Debts
  • Guidance Note on Accounting for Value Added Tax
  • Guidelines on Internal Audit - Sugar Industry or Revision of Technical Guide for Audit - Sugar Industry
  • Guidance Note on Accounting in Power Sector
  • Guidance Note on Accounting and Audit of Employee Stok Option Plans (ESOPs) and Employee Stock Purchase Plans (ESPPs)
3.2 Results of the Shield Panel:

The Panel of Judges constitued by the Institute. Adjudged the Annual Report and Accounts of entities in differnt categories for the year 2001-2002 and decided to give away awards, as detailed hereunder:
Award Category Name of the Entity
Silver Shield for best presented accounts Public / Joint Sector Companies

Non Financial Private Sector Companies

Banks & Financial Institutions
Bharat Petroleum Corporation Ltd.

Infosys Technologies Ltd.

ICICI Limited
Plaque of highly commended accounts Public / Joint Section Companies

Non Financial Private Sector Companies
Indian Oil Corporation Ltd.

i-flex Solutions Ltd.
4. CORPORATE LAWS COMMITTEE

In the backdrop of several legislative reforms that were introduced by the Govenment during the year 2001-2002, the Committee chalked out appropriate plan of action. The following are the proactive steps

4.1 Memoranda to the Government:
  • Prsentation before the Parliamentary Standing Committee examing the Competition Bill, 2001
    The Committee had earlier suggested to the Government on the High Level report on the Competition policy Consequent to the Competition Bill, a presentation was made before the Parliamentary Standing Committee on 18th October, 2001

  • Presentation before the Parliamentary Standing Committee examing the Companies (Amendment) Bill 2001 - law relating to the insolvency and winding up
    A presentation was mae on June 3rd 2002 before the Parliamentary Standing Committee examining the above Bill. Response to the various points raised by the Hon'ble members of the Committee was sent later.

  • Interaction with the Department of Company Affairs
    The Committee interacted with the Department of Company Affairs on various matters relating to the Companies Act, 1956 and submitted the suggestions thereon. On the following subjects, the Committee actively participated at the meetings of the Department.

    - Suggestions on Schedule XIII, Managerial Remuneration
    - Suggestions on the need for reviewing the rates of depreciaiton prescribed 3 labs melting furnaces.
    - Suggestion on the Transfer Pricing guidelines
    - Suggestions to the Govt. Committee on the Companies Bill 1997.
    - Suggestions on the need for bringing clarifications on the Disqualification of the Auditors under Section 226 (3) (e)of the Companies Act, 1956
    - Submission of a draft on Sample Audit Committee Charter to the Department of Company Affairs for their consideration.

4.2 Training Programmes

In continuance of the past practice of conducting training programme for the officers of the Indian Company Law Service, the Committee conducted training. Programme to the Officials of the Department at the Southern, Northern, Eastern and Western Regions. The Trainig Programmes were much appreciated by the participation and the Departments.

Seminars / Conferences / Residential Courses etc.

In pursuit of Continuing Professional Education to update the members on the various laws, the Committee undertook the following initiatives:

  • All India Conference on Taxation and Corporate Laws
    The Committee in association with the Fiscal Laws Committee orgnised All India Conference on the Taxation and Corporate Laws at Indore on 1st and 2nd October, 2001. This conference was inauguratd by the former Chairman on Central Board of Excise and Customs. The Conference was attended by more than 600 delegates from all over country and there were five interactive technical sessions covering Taxation and Corporate Laws.

  • Confernce on Taxaion and Corporate Laws
    A two days conference on Taxation & Corporate Laws was held at Jammu on 10th and 11th November, 2001. This conference was inaugurated by the Honourable Minster of Law, Justice and Company Affairs, Shri Arun Jaitley. There were two technical sessions relating to Taxation and Corporate Laws, which was attended by more than hundread delegates comprising of members, academicans and industralists.

  • All India Residentail Course on Corporate Laws
    This Residential Course was held at Mahabalipuram near Chennai on 27th, 28th and 29th January, 2002. The Inaugural address was given by Shri Cherian Vergheese, Chairman and Managing Director, Corporation Bank and the Valedictory address was given by Shri T. Narayana Swamy, Executive Director, Pubjab National Bank. There were three technical sessions covering wide range of topics relating to trade, industry and the professionl. Thirty-six delegates representing various public sector undertaking, corporate houses, practicing chartered accountants from all over India attended the residential course

  • Seminars
    The Committee organised a seminar at Jodhpur on 26th February 2002 in association with the Jodhput branch of CIRC. The seminar was inaugurated by Shri V.K.Dhall, Secretary, Department of Company Affairs Government of India. The programme was well attended. Another seminar was held at Raipur on May 25th 2002. The programmes was attended by a large number of members.

4.4 Constitution of Study Groups:

The study groups were constituted during the year on following topics:

  • Statement on the amendments to Schedule VI to the Companies Act, 1956
  • Simplification of the Companies Act, 1956
  • Harmonisation of the provisions of Companies Act, 1956 with that of Information Technology Act, 2002
  • MAOCARO, 1988
  • Changes in Schedule VI
  • Review of the publication title Guide to Company Audit

Interaction with other Institutions:
THE Committee also interacted with other professional Institutes (particularly ICSI) by way of making sugestions on the secretarial standards.

Other matters:
The Committee is contemplating an action pan on the following matters, which are of interest to the Profession.

  • Setting up of a mechanism for addressing the difference of views / disputes arising between management and the Auditors on qualification in audit reports

  • Alternative ways for ensuring independence of auditors including appropriate mechanism for fixation of minimum fees for appointing auditors.

  • Involvement of Chartered Accountants in the process of inspection and investigation under the relevant provisions of the Companies Act, 1956.

  • Involvement of Chartered Accountants in the certification process of filling documents

  • Regulatory aspects for Chartered Accountancy Profession in the changing global scenario.

    Fiscal Law Committee
    5. FISCAL LAWS COMMITTEE

    5.1 Workshop and Sumposium on Union Budget - 2002
    A workshop on the Union Budget - 2002 was held in New Delhi on 22nd March, 2002. Shri S.K. Sarma Chairman, CBDT attended the Workshop. Shri A.N. Prasad, Joint Secretary (TPL I), Shri G.C. Srivastava, Joint Secreatary (Foreign Tax Division) and Shri Akhlesh Ranjan, Director (TPL IV) also attended the Workshop. The Chairman of the CBDT promised to look into some of the issues raised in Workshop.

    The Committee organised a Symposium on 2nd March, 2002 in Chennai to elicit views from experts and public on the proposals contained in the Union Budget. Impact of the policy matters on Indian economy, changes in Direct and Indirect Tax Laws were analysed in the Symposium

    5.2 Post-Budget Memorandum - 2002
    The Pos Budget Memorandum - 2002 was submitted to the Government

    5.3 Guidance Note on Audit under Section 115JB of the Income-tax Act, 1961
    The above guidance note was finalised by the Fiscal Laws Committee after extensive deliberations and exchange of views with a cross section of members. It clarified many significant issues concertning audit under section 115JB of the Income-tax Act.

    5.4 Suggestions on the proposed amendment to Rule 3 of the Income-tax Rules, 1962 regarding valuation of perqusities
    The CBDT initially nitofied draft guidelines for amending the rules relating to valuation of perquisites. The Institute forwarded its suggestions on the same.

    5.5 All India Conference on Taxation and Corporate Laws - 2001, Indore
    The Fiscal Laws Committee and the Corporate Laws Committee jointly organised an All India Conference on Taxaton and Corporate Laws on 1st and 2nd October, 2001 in Indore.Around 700 delegates from all over the country attended the conference.

    5.6 Conference on Taxation and Corporate Laws - Jammu
    The Fiscal Laws Committee and the Corporate Laws Committee jointly organised an All India Conference Taxation and Corporate Laws in Jammu

    5.7 Seminar on Value Added Tax -Pondichery
    The Fiscal Laws Committee organised a seminar on Value Added Tax at Pondichery. The semina was attendd by more than 200 delegates

    5.8 Guidance Note on audi of Public charitable institutions under the Income-tax Act,, 1961
    The existing publication entitled A Guide to Audit of Public Charitable Trusts under the Income-tax Act published earlier was throughly revised, expanded and upgraded into a full-fledged Guidance Note on Audit of Public Charitable Institutions under the Income-tax Act.

    5.9 Taxation of charitable trusts and institutions -A Study
    While the Guidance Note on Audit of Public Charitable Institutions under th Income-tax Act, 1961 covers all the essential aspects of audit of such institutions, this publication discusses in detail the law relating to taxation of charitable trusts and institutions.

    5.10 Guidance Note on Report on International Transactions under Section 92E of the Income-tax Act, 1961 (Transfer Pricing)
    Under Section 92E a chartered accountant has give a report in the prescribed form and verify in the prescribed manner setting forth prescribed particulars. The Committee has brought out a Guidance Note on Report on International Transactions under Section 92E of the Income-tax Act, 1961 (Transfer Pricing)

    5.11 Conference on taxation and corporate laws - 2001 at Jammu
    A two-day conference on taxation and corporate laws was organised by the Jammu & Kashmit Branch of the Norther India Regional Council jointly with the Fiscal Laws Committee and the Corporate Laws Committee.

    5.12 All Kerala Tax Conference - Kochi
    The Fiscal Laws Committee, SIRC of ICAI and Ernakulam Branch of the SIRC of ICAI, have jointly organised an all Kerala Tax Conference at Kochi, The Conference was atended by more than three hundread delegates

    5.13 Draft form of audit report under State VAT
    Measures are being undertaken to bring unifor Value Added Tax System in the country. The State Governments have been advised to enact VAT legislation as a first step towards the ultimate synchronization of State VAT into central VAT. Several States like Delhi, Maharashtra, Andhra Pradesh, Madhya Pradesh etc, have brought out draft Value Added Tax Acts. Since it is expected that the State VAT legislations would provide for audit by chartered accountants, the Fiscal Laws Committee is actively involved in evolving a uniform and comprehensive form of audit report under various State VAT legislation and preparing draft guidance not on the same.

    5.14 Seminar on Transfer Pricing - Chennai
    The Fiscal Laws Committee organised a Seminar on Transfer Pricing on 21.6.2002 in Chennai. The then Hon'ble Union Minister of Law, Justice & Company Affairs Shri Arun Jaitley gave a special address on Meeting Public Expectations througn Legislation Changes. The seminar was attended by a large number of delegates.

    5.15 Other activities
    Apart from the above, detailed suggestions were submitted to the Central Direct Taxes Advisory Committee. The members of the Committee exchanged views with the Government In-house Committee on Depreciation and MAT provisions.

    6. CONTINUING PROFESSIONAL EDUCATION COMMITTEE

    The Continuing Professional Education Committee continued its efforts to impart education to the members on the topics of contemporary relevance through its Continuing Professional Education Programmes.

    6.1 The Committee held the following programmes / seminars for the benefit of the members and others:

    • Residential programme on Accounting Standards and US GAAPs Interpretation & applications to Oil & Natural Gas Section, at Nainital

    • Programme for Audit Committee of Public Sector Undertaking (Round Table Conference) jointly with Committee for Members in Industry at New Delhi.

    • Residential Programme on Accounting Aspects of Disaster Management at Rishikesh

    • Chain Seminars on NBFCs in association with RBI at various places across the country.

    • Organised Orientation / In-company, programmes for MTNL, ITEDA, NHPC, NPC, PNB etc.

      - Executive Development programme on Detection & Prevention of Fraud in the Era of E-commerce at New Delhi

      - Residential Refersher Couse on Accounting Standards, Corporate Laws & Taxation jointly with the Fiscal and Corporate Laws Committees at Puri Orissa.

    6.2 The Committee proposes to conduct Professional Education Programmes in the areas of:

    • Bank Audit
    • Accounting Standards
    • Statement on Auditing Practices
    • Audit of Local Urban Bodies
    • Forensic Accounting
    • Service Tax
    • Public Sector Audit
    • Code of Ethics
    • Excise Audit
    • FEMA
    • Corporate Governance & Reporting & Disclosure Practices
    • Energy Audit
    • Arbitration
    • Merger & Acquisition
    • Project Finance
    • Time Management
    • Transfer Pricing
    • Tax Audit
    • Treasury Management
    • Companies Amendment Act
    • Information Technology Act
    • Value Added Tax
    • Capital Market Reforms
    • International Finance
    • International Taxation
    • WTO Related Issues
    • Environmental Accounting
    • Insurance Audit
    • Sales Tax Audit
    • Audit of Charitable Trust
    • Stock & Receivable Audit
    • Audit in computerised Environment
    • Commercial Due Diligence
    • Financial Due Diligence
    • E-Commerce / Governance

    6.3 During 2001-2002, Continuing Professional Education Pogrammes were conducted, inter alia, on the following topics:-

    • Accounting Standards and Reporting Requirement
    • Statement on Standard Auditing Practices
    • Opportunities in IT
    • Implications of Mergers , Acquisition
    • Double Taxation avoidance agreement
    • Income tax surveys, search & seizure proceedings
    • Transfer pricing rules
    • Forex & Risk management
    • Disaster Management
    • Issues on Tax Audit under Income Tax Act
    • Outsourcing and emerging issues
    • New Professional Opportunities and avenues
    • Frauds & White collar crimes
    • Communication Skills
    • Service Tax - Issues & Implications
    • Audit of Co-operative Societies & Charitable Trusts
    • Emerging scenario in the Insurance Sector and the Challenges ahead
    • Recent changes and amendments in Companies Act
    • WTO - Impact on India Economy
    • E-Commerce and its impact on Accounting Profession
    • Digital signature verification
    • Foreign Exchange Management Act.

    6.4 The background materials published by the Continuing Professional Education Committee during the year 2001-02 likely to be published during the year 2002-03 as well as past publications are given below respectively:

    6.4.1

    • Audit of Bank Branches - Current Developments
    • Accounting Aspect of Disaster Management
    • Financial Due Diligence
    • Energy Audit and Management for the Indian Industry
    • Foreign Exchange Management Act, 1999
    • A readeer on Accounting Standards
    • Bank Audit in Computerised Enviornment
    • Stock and Receivable Audit
    • Bank Branch Audit Programme
    6.4.2
    • Service Tax (Since released)
    • Value Added Tax
    • Environmental Auditing
    • International Taxation
    • Project Finance (Revision)
    • Forensic Accounting
    • Excise Audit (Revision)
    • FEMA(Revision)
    • Time Management
    • Information Technology Act
    • Arbitration
    • Communication Skill - II
    6.4.3
    • System Audit
    • Project Evaluation
    • Environmental Accounting and Reporting
    • Case Studies in Accounting Standards and Auditing
    • Issue in Information Technology
    • Opertaionan and Management Audit
    • Taxation of Charitable Trust and Institutions
    • Concurrent Audit of Banks
    • Audit of General Insurance Companies
    • Communication Skills -I
    • E.D.P. Audit Pitfalls & Safeguards
    • Credit Rating
    • Background material on Central Excise
    • Background material on Taxation of Deemed Sale Transactions
    • Background material on Central Sales Tax
    7. COMMITTEE FOR MEMBERS IN INDUSTRY

    To promote the interest of members serving in Industry and to develop opportunities available, the Committee of Members in Industry has been given a separate identity w.e.f. 19th March 2002 and it has been authorised to deal independently with matters relating to members in Industry. The Committee has undertaken following activities during the year:

    7.1 As a measure to develop employment opprtunities for newly qualified members, the Committee has been succesfully organising Campus Interviews twice a year during the past seven years, wherein prospective employers and new members interact and explore the possibility of taking up employment careers in various organisations. The Campus Interviews organnised during the year received an impressive response from both the employers and our young members as is evident from the fact that in all 61 teams of the employers evaluated the bio-data of about 4020 young members. Orgnisations from aborad and all over the country, both from the public and private sectors including mulnationals, participated in the scheme. Orientation Programmes were conducted for new members at various Interview centres to provide skills to face Interview boards which were appreciated by the members

    7.2 The Committee felt that the existing employment assistance Scheme which is very much important for the members in Industry at all levels needs to be strengthened. The Committee has therefore approved the maintenance of Employment Register and providing of Placement Service to members in industry, who are seeking jobs/better employment. The Committee is also exploring the possibilities of creating fesh avenues of Employment for members in Industry.

    7.3 An All India Conference for Members in Industry was organised at Baroda on 14th and 15th September, 2001 which was hosted by Baroda Branch of WIRC. The theme of the Conference was Restructuring For the Future.

    7.4 The Committee has also organised an All India Industrial Conference for Members in Industry on 22nd September, 2001 at Chennai; hosted by the Committee for Members in Industry of the Southern India Regional Council of the Institute

    7.5 A Round Table Conference for Audit Committee was organised on December 4-5, 2001 New Delhi in association with Continuing Professional Education Committee

    7.6 The Committee had also organised a Seminar on In-depth Study of Accounting Standards on 29th and 30th December at Jamnagar for Reliance Petroleum Ltd.

    7.7 The Seminar on The Razor's Edge in Accountancy was also organised on April 26-27, 2002 at Mumbai

    7.8 The Committee continues to make more efforts in improving the status and role of members in Industry.

    8. COMMITTEE ON ETHICAL STANDARD & UNJUSTIFIED REMOVAL OF AUDITORS

    In the emerging scenario of globalized world, the Committee has taken a holistic approach to promote the professional Ethics with the edge of competitiveness and excellence and to safeguard the independence of the auditors in the interest of good corporate governance. The Committee continued to examine and dispose off various important ethical issues queries, relating to ethical standards & professional conduct of members; and the allegations of unjustified removal of auditors. The Committee has made its recommendations on some pertinent ethical issues most of which have been considerd by the Council and some of which are under considrations of the Council. Important decisions taken by the Council during the Year based on recommendations of the Committee, are breifly given as follows:-

    8.1 Ethical Issues

    • To ensure the independence of auditors, the Council has considerd the recommendations of the Committee in the matter of putting restriction on then auditors of public sector undertakings / Govt. Companies / Lised Companies and other public companies having turnover of Rs. 50 crore or more in a year for not accepting any other assignment of the same company / entity / unit. By Notification No. 1 CA(7)/60/2002 dated 8th March, 2002, the Council has specified, inter alia, that a member of the Institute in practice shall be deemed to be guilty of professional misconduct, if he accepts the appointment as statutory auditor Public Sector Undertaking(s) / Government company(ies) / listed company(ies) and other public company(ies) having turnover of Rs. 50 crore or mroe in a year and also accepts any other work(s) or assignment(s) or service(s) in regard to the same Undertakin(s) / Company(ies) on a remuneration which in total exceeds the fee payable for carrying out the statutory audit of the same Undertaking / company. This notification shall apply for any appointments(s) on or after 1st April 2002.

    • The Council has approved the Mission Statement of the Committee, Terms of Referrence and Procedure to be followed by the Committee for dealing with the cases of Unjustified Removal of Auditors.

    • The Council has approved the Mission Statement of the Committee, Terms of Reference and Procedure to be followed by the Committte for dealing with the cased of Unjustified Removal of Auditors

    • The Council has revised its earlier guidelines ofr determination of main occupation of a member for the purpose of training articled / audit clerks under Regulations 43&68 of the Chartered Accountants Regulations, 1988

    • The Councils considered the Issue relating to members answerable with respect to employee Chartered Accountants or partners in the firm and vis-a-vis their responsibility. The Council accepted the recommendations of the Committee, to the effect that office should wirte to the firm against which a complaint or information has been received that while disclosing the name of the member /s whose name has/have been disclosed by the firm, about his/her answerability to the charge/s in the complaint/ information

    • The Council considered the issue of the existing decision of the Council on the scope of Section 25 of the Chartered Accountants Act, 1949 and after detailed discussion, broadly agreed in principle with the recommendation of the Committee subject to formulaion of the regulations for whicht the Council decided to form a Study Group

    • The Council considerd the issue relating to change in firm name / seniority when two or more firms merge and decide to adopt a name by combining the name of said firms.

    8.2 Issues concerning unjustified removal of auditors

    • The Council has approved issuance of Notification regarding formulation of Guidelines in respect of cases of Unjustified Removal of Auditors, in which the direction is to be given to the incoming auditor not to accept the appointment.

    • The Council considerd the issue of old and the present views of the Committee regarding the appointment / re-appointment of auditors and cases of unjustified removal of auditors. The Council accepted the recommendations of Committee to the effect that for appointment / re-appointment of auditors, passing of a resolution is necessary and in case of re-appointment, the retiring auditor will continue to hold the office of auditor unit the resolution relating of appointment of auditors is passed and the AGM is concluded

    8.3 The Committees in its 6 meetings held during the period has considerd and decided, inter alia, on various allegation relating to unjustified removalof auditors in Banks, Private Sectors and other bodies and in appropriate cases actions have been taken to ensure the general interest of the profession. The Committee deliberated upon the various issues relating to Code of Ethics, Professional independence and itnerest of profession in the contest of liberalistaion and lgobalisation process.

    9. INTERNATIONAL AFFAIRS COMMITTEE

    The International Affiars Committee of the ICAI continued to pursue the Institute's strategy on Internationa Affairs and effectively carried out its work planned during the year. The corus was to represent and play active role on various internationl forums, to facilitate movement of members across the world, to facilitate interaction between the members living oversees through opening up of the chapters, to take part in innovative exercises in accounting profession around the world, and to pursue with various foreign accounting bodies for getting recogniition of its qualificaion.

    9.1 Building professional relationship with other Institute

    Significant progress has been made in augmenting the process underway with various foreign accountancy bodies including with the ICAEW, ICA Australia and Delaware State Board of Accountancy USA for establishing equivalence. Memorandum of Understandings (MOUs) have been entered into with ICA Bangladesh, AICP America ICAEW London, CICA Canada, ICAA&CPA Australia and CICPA Chine during the year. Initiatives are also under way for recognition of qualification with ICA New Zealand. The current progress of implementation of these MOU is on targeted lines

    An applications has been filed with the National State Board of Accountancy in USA for evaluation of ICAI qualification. The matter has been followed up directly with the team of the Texas State Board of Accountancy and also through the AICPA under the terms of MOU signed between ICAI and ICAEW has completed the process of evaluation of ICAI qualification to a consultant for the purpose of granting recognition of qualification under the UK Companies Act. The International Qualification Appraisal Board of Cannda has also started the process of evaluation through its consultants and the preliminary review is expected to complete by September 2002. The Cnadian Institute has taken up the matter of recognising the trainig of Indian Chartered Accountants in India with the respective provincial institutes in Canada. The process of mutual recognition agreement has been initiated with the ICAI Australia and ICAI New Zealand. Recently (during the year 2002), the ICAI has also filed an application for recognition of its qualification for membership of Zambia Institute of Certified Public Accontants.

    Regarding the process of professionals collaboration with the Institutes in South Asian Region, the ICAI qualification has been taken as the model for adoption by other institutes in South Asian region. The ICAI and ICAP have jointly organised a localised international seminar in the city of Amritsar on September 29,2001, which was attended by large number of Indian members including 23 participants from Pakistan. More such progrms are planned in the month of August, September and October 2002 in association with ICA Bangladesh, ICA Nepal and ICA Sri Lanka.

    The ICAI is organising a joint conference in New Delhi in the month of September 2002 with the Institute of Chartered Accountants in England and Wales. The President of ICAEW, other office bearers along with more than 30 participants from UK will participate in the conference. The invitation is also extended to the Canadian Institute of Chartered Accountants for their delegation to visit India under the MOD signed with them.

    The ICAI has opend a chapter in London during the month of July 2001 and action is initiated to open chapters in Canada and USA. On being approached the members in Canada and USA have shown great enthusiasm for such an initiative. The chapters in gulf region were very active in organising seminars, carre guidance programs for Indian students in their region, and sending vital inputs to head office from time to time on various matters of national and professional interest.

    During the year the ICAI has been succesfully able to palce itself as a member of the team of major foreign accounting bodies to constitute an international Innovative Network (IIN). The ICAI has become the founder member of IIN. The President of the Institute has signed the IIN Charter in the first meeting of IIN held in New York from July 22-24, 2002. The objective of the IIN is to promote the development of new products and services relating to the accounting profession and to facilitate international marketing of those products and services through its members. Earlier the ICAI has actively particpated in drafting of its Charter and Master License Agreement. Innovative products developed by the members of network could be licensed through the IIN to other members of the network. Example of Products / Service could be licensed through the IIN to other members of the network. Example of Products / Services could be Web trust, sys Trust, Software to plan, perform and document complete audit, Library software to provide access to CPE material, articles, On line job facility, On line Quiz programs, Trust services, Elder care etc.

    9.2 Internatioal Federation of Accountants:

    The immediate past President of the ICAI was elected to the newly constituted board of the IFAC, which is an exclusive position under the restructured IFAC. The IFAC Board is the governing authority of IFAC and by election of the immediate past president on the IFAC Board, the ICAI has got privilege to take up the matters of professional interest directly at the highest level internationally. He attended the meetings of the board held in November 2001 at Miami, March 2002 in Tunisia and July / August 2002 in Spain / New York. The Secretary of the Institute acted as Technical Advisor.

    The hen Vice-President, the technical advisor to the ICAI nominee on IFAC Ethics Committee, had participated in its meeting held on September 10-12, 2001 at Paris

    The ICAI has successfully taken up the matters relating to protecting the interests of Small and Medium Practitioners and Small and Medium Enterprises with the IFAC. The President represented the ICAI on IFAC Working group on SMEs / SMPs and attended its meeting held on July 5-6, 2001 in London. The ICAI has made all round efforts for the formation of a task force to look after the matters relating to SMPs and SMEs. The immediate then Vice-President of the ICAI represented on he IFAC Task Force on the SMPs and attended the first meeting of the task force held in January 2002 in Milan, Italy. The concern has been raised on the functioning of IFAC, IASB with a view to ensuing that they truly represent the accoutancy profession as it exists worldwide. The ICAI has been successfully able to pursue with foreign accounting bodies including those in UK, USA , Australia, Japan and those in South Asian Region and also the regional organistaions like CAPA, SAFA to participate in the meeting of SMP Chairs in India. The objective of the meeting ws to gather thoughts on the issues concerning SMPs - Issues and challenges was also organised in Mumbai after the SMP Charis meeting. Eminent speakers from 10 different countries participated in the seminar. The ICAI continued to work towards getting recognition of the needs and interests of SMPs in the world wide profession. The President and the Vice-President attended the meeting of Edinburgh group held on February 26, 2002 in London to discuss the issues relating to SMPs

    The ICAI has sent its comments from time to time on the project of UNCTAD on Accounting for Small and Medium Enterprises. Separate accounting framework is suggested for three different levels of Small and Medium Enterprises under this project. The President is a member of the Intergovernmental working group of experts of International Standards of Accounting and Reporting (ISAR) on SMEs.

    9.3 Regional Organisations like SAFA and CAPA

    The permanent secretariat of the SAFA continues to be located at the ICAI, New Dehi. The 45th and 46th meetings of SAFA were held in Kandy and GOA respectively durinig the year which were duly represented by the ICAI representatives.

    SAARC has elevated SAFA from the status of its recognized body to the Apex body during its 22nd session of its council of ministers hled in January 2002.

    Various centres of excellence established by SAFA have started working as per their terms of reference. A comparative exercise was undertaken on the curriculum of each member body in the SAFA region for the purpose of aachieving equivalence. Significant progress has been made by other centres of excellence in theri respective areas.

    The ICAI representative also attended the meetings of Confederation of Asian and Pacific Accountants, a regional organization of IFAC, heldon May 26-30, 2001 in Kaulalumpur and October 8-9, 2001 in Sydney as as observers. The ICAI has actively participated in the project of CAPA relating to the Structure of SMPs and SMEs in CAPA region. The papers on SMP Structure in CAPA region and Corporate Governance were presented at the CAPA meetings during the year.

     

    COMMITTEE ON COMMERCE EDUCATION & CAREER COUNSELLING
    10. COMMITTEE ON COMMERCE EDUCATION & CAREER COUNSELLING

    10.1 Joint Seminar conducted during the year

    During the year 2001-2002 the Committee organised 8 seminars on the theme of Commerce Education in the New Millennium in collaboration with the following Universities / Colleges / Schools.

    • Himachal Pradesh University, Shimla
    • Omkaranada Institute of Management & Technology, Rishikesh
    • Alagappa University, Karikudi
    • St. Lawrence High School, Kolkata
    • DAV Public Scholl, Ludhiana
    • Dilbrugarh University, Dilbrugarh
    • Allahabad University, Allahabad
    • Karnatak University, Dharwad

    During the year the Committee organized a National Seminar at New Delhi for the second time after a gap of 14 years wherein 190 participants from various universities / colleges attended the seminar in addition to the local members.

    The Committee considerd the fact that the ICAI allows the admission of 10+2 students to C.A. Foundation course and as such the joint seminars should be organized at school level also, so as to popularize C.A. course among such students. Accordingly, the two joint seminars one with St. Lawrence High School, Kolkata and the other with DAV Public School, Ludhiana were organized. About 310 students of Commerce stream attended the joint seminar in St. Lawrence High School, Kolkata and about 600 students attended the joint seminar in DAV Public School, Ludhiana.

    In the University / College level seminars technical session were mainly on the following topics:

    • Accounting Standards
    • Information Technology & E-Commerce
    • Corporate Governance
    • Communication Skills
    • New Financial Instruments in Capital Markets
    • Foreign Direct Investment

    In the University level seminars the aspect of Uniform Syllabus for B.com. Education was also dealt with. Everybody appreciated the initiative taken by the ICAI in this direction

    The Committee revised its background material which was used in all the joint seminars conducted during the year. There was lot of appreciation by participants about the background material as it was able to prepare a good foundation on the topics covered in the seminars.

    The participants in the seminars included University Teachers, Members of the Institute, Research Scholars and Students. The attendance in each joint seminar was quite encouraging. During the course of this year's seminars, teachers felt that such type of seminars should be conducted more frequently and should cover many more universities in a year.

    In the school level seminars the main thrust was on C.A. course. In fact the participants were told about C.A. course what are its requirements and plus points. They were also given a copy of the background material brought out by the Committee during the year to each of these participants.

    10.2 Award of ICAI Prize / Gold Medal by Universities
    S.No Name of the University Nature of Prize
    1. University of Allahabad, Allahabad Prize
    2. Banaras Hindu University, Varanasi Prize
    3. Bangalore University, Bangalore Gold Medal
    4. Univesity of Mumbai, Mumbai Gold Medal
    5. University of Calcuta, Kolkata Prize
    6. University of Calicut, Calicut Prize
    7. University of Deli, Delhi Prize
    8. Gujarat University, Ahmedabad Prize
    9. Gurunank Dev University, Amritsar Prize
    10. University of Jammu, Jammu Prize
    11. Jainarain Vyas University, Jodhpur Prize
    12. Kurkshetra University, Kurukshetra Prize
    13. University of Lucknow, Lucknow Prize
    14. University of Madras, Chennai Gold Medal
    15. Maharishi Dayanad University, Rohtak Prize
    16. Dr. Baba Saheb Ambedkar Marathvada University, Aurangabad Prize
    17. Mohanlal Sukhadia University, Udaipur Prize
    18. Nagarjuna University, Guntur Godl Medal
    19. University of North Bengal, Rajarammohanpur Prize
    20. Osmania University,Hyderbad Prize
    21. University of Pune, Pune Prize
    22. Punjab university, Chandigarh Prize
    23. Pandit Ravishankar Shukla University, Raipur Prize
    24. Shivaji University, Kolhapur Prize
    25. Vikram University, Ujjain Prize

    The Committee on Commerce Education & Career Counselling has recently decided to create endowments in the following nine universities as well. These endowments will also be for the award of Gold Medal / Prize to those students who secured highest marks in the paper of Accountancy in their B.Com Final Examination

    Name of the University Amount to be given Pize / Award
    University of Nagpur Rs. 50,000 Gold Medal
    Mangalore University, Mangalore Rs. 30,000 Gold Medal
    University of Mysore, Mysore Rs. 25,000 Gold Medal
    Utkal University, Bhubaneswar Rs. 70,000 Gold Medal
    Amravati University, Amravati Rs. 50,000 Gold Medal
    Unniversity of Kerla, Thrivananthapuram Rs. 50,000 Cash Prize
    Sambalpur Univesity, Sambalpur (Orissa) Rs. 60,000 Gold Medal
    MS University of Baroda, Vadodra Rs. 25,000 Gold Medal
    Goa University, Goa Rs.25,000 Medals / prizes

    10.3 Popularization of C.A. Course

    10.3.1 Bringing out an Audio Video CD for popularising the C.A. course

    The earlier cassette, which was used for popularsing, the C.A. course has become outdated due to the introduction of New Scheme of Education & Training. It was, therefore felt necessary to bring an Audio - Video CD highlighting the main features of this new scheme of Chartered Accountancy course.

    The main purpose of bringing out this Video-CD is to attract the best talent for the CA course. The regional Councils, Branches and Central Council Members will be requested to use this CD for career counselling purpose by screening it:

    • In schools at pre 10th level
    • In Colleges in 1st /2nd & 3rd year level
    • Telecasting it under career counselling programmes organized on Doordarshan and other media channels.

    10.3.2 Participation in India International Trade Fair

    The Committee on Commerce Education & Career Counselling has decided to participate in India International Trade Fair 2002 (November 14-27, 2002) by taking a stall in it. This space in the above fair will be utlized for popularising the C.A. course and the Chartered Accountancy profession.

    10.4 A scheme for selection of articled clerks by firms of Chartered Accountants

    The Committee on Commerce Education & Career Counselling of ICAI has recently decided to provide a platform to the firms of Chartered Accountants to select articled clerks, thereby helping the students as well as the members of the ICAI. The scheme will be benefit the members as well as the students community and in particular Foundation PE (Course I) / passed students.

    A wide publcity has been given to the above scheme. Initially the exercise of matching students with C.A. firms will be organised at 5 Regional Centres of the ICAI located at New Delhi, Mumbai, Kolkata, Chennai and Kanpur. This exercise will start from the last week of September 2002 and may be completed within fifteen days duration.

    10.5 Recognition of C.A. Qualification as equivalent to Post-graduate degree in Commerce for the purpose of registration under Ph.D programme

    In response to letters sent to various University for the recognition of C.A. qualification as equivalent to a Post-graduate degree, the following Universitites have also recognised the C.A. Qualification as equivalent to Post-graduate degree in Commercefor the purpose of registration under the Ph.D programme.

    • Indira Gandhi National Open University, New Delhi
    • Awadhesh Pratap Singh University, Rewa

    Now 72 Universities and 3 India Institutes of Mangement (Ahmedabad, Bangalore and Kolkata) and the Association of Indian Universities have formally recognised C.A. Qualification as equivalent to Post -Graduate degree for admission to Fellow / M.Phill / Ph.D. Programme.

    Names of the Unviersites, Insstitutes of Management recognising Chartered Accountancy course for Ph.D. registration:

    s
    Sl.No Name of the Association / Institute / Universities
    Eastern Region
    1. Arunachal University, Rono Hills, Itanagar - 791 112
    2. Gauhati University, Gopinath Bardoloi Nagar, Guwahati-781 014
    3. Indian Institute of Management, Joka D.H. Road, Post Box 16757 Kolkatta 700 027
    4. Manipur University, Canchipur, Imphal 795 003
    5. University of North Bengal, Raja Rammohunpur 734 430 District Darjeeling
    6. Sambalpur University, Jyoti Vihar, Sambalpur 768 019
    7. Tezpur University, Napaam, District Sonitpur Tezpur-784 025
    8. Utkal University, Vani Vihar, Bhubaneswar 751 004
    9. Vidyasagar University, Midnapore 721 102 West Bengal
    Western Region
    1. Bhavnagar University, Grouri Shankar Lake Road, Bhavnagar 364 002
    2. Dr. Babasahed Ambedkar Marathwada University, Aurangabad 431 004
    3. Gujarat University, P.B. No. 401, Navrangpura, Ahmedabad 380 009
    4. Goa University, Sub Post Office, Goa University Taleigao Plateau, Goa 403 203
    5. Indian Institute of Managementm, Vastrapur, Ahmedabad 380 015
    6. M.S. University of Baroda, Opp Drug Lab, Vadodara 390 002
    7. University of Mumbai, M.G. Road, Fort, Mumbai 400 032
    8. North Maharashtra University, P.B. No. 80, Umavinagar, Jalgaon 425 001
    9.North Gujarat University, P.B. No. 21, University Road, Patan 384 265
    10. University of Pune, Pune 411 007
    11. Sardar Patel University, Vallabh Vidyanagar 388 120
    12. Saurashtra University, University Road, Rajkot 360 005
    13. Shivaji University, Vidyanagar, Kolhapur 416 004
    14. Tata Insstitute of Social Science, Sion Trombay Road, Deonar, Mumbai 400 088
    15. Yashwantrao Chavan Maharashtra Open University, Dnyangangotri, Near Gangapur Dam, Nasik 422 005
    Northern Region
    1. Association of Indian Universities, AIU House, 16, Kotla Marg New Delhi 110 002
    2. Guru Gobind Singh Indraprashta University, Kashmere Gate, Delhi - 110 006
    3. Himachal Pradesh University, Summer Hills, Shimla 171 005
    4. Indira Gandhi National Open University, Maidan Garhi, New Delhi -110 068
    5. University of Jammu, Baba Saheb Ambedkar Road, Jammu Tawi-180 004
    6. University of Kashmir, Hazratbal, Srinagar 190 006 (J & K)
    7. Kurukshetra University, Kurukshetra 132 119
    8. Panjab University, Chandigarh 160 014
    9. Punjabi University, Patiala 147 002
    10. Maharishi Dayanad University Rohtak 124 001
    Southernn Region
    1. Alagappa University, Algappa Nagar, Karikudi 623 003
    2. Annamalai University, Annamalainagar 608002, Tamil Nadu
    3. Bangalore University, Jnana Bharathi, Bangalore 560 056
    4. Bharathidasan University, Palkalai Perur, Tiruchirappali 620 024
    5. Bharathiar University Coimbatore 641 046
    6. Calicut University, Kozhikode 673 635
    7. Cochin University of Science & Technology, Kochi 682 022
    8.
    9. Indian Institute of Management, Bannerghatta Road, Bangalore 560 076
    10. Kakatiya University, Vidyaranyapuri, Warrangal - 506 009
    11. Karnatak University, Pavate Nagar, Dharwad 580 003
    12. University of Kerala, Thiruvananthapuram 695 034
    13. Kuvempur University, Gnanasahtadri, Shankaraghatta 577 451 Dist. Shimoga (Karnataka)
    14. Mangalore Unviersity, New Administrative Building, Mangalagangothri, Mangalore 574 199
    15. University of Mysore, Crawford Hall, Mysore 570 005
    16. Mahatma Gandhi University, PO Priyadarshini Hills, Kottayam 686 560
    17. University of Madras, Chepauk, Chennai 600 005
    18. Madurai Kamaraj University, Madurai 625 021
    19. Osmania University, Hyderabad 500 007
    20. Ponducherry University, R.V. Nagar, Kalapet, Pondichery 605 014
    21. Sri Krishnadevaraya University, Anantapur 515 003 Andhra Pradesh
    22. Sri Venkateswara University, Tirupati - 517 502
    Central Region
    1. Aligarh Muslim Universtiy, Aligarh 202 002
    2. Awadhesh Pratap Singh, University, Rewa - 486 003
    3. Banaras Hindu University, Varanasi -221 005
    4. Barkatullah Vishwavidyalaya, Bhopal 462 026
    5. Ch. Charan Singh Ji Maharaj University, Kalyapur, Kanpur 208 024
    6. Chatrapati Shahu Ji Maharaj University, Kalyanpur, Kanpur 208 024
    7. Devi Ahilya Vishwavidyalaya. R.N. Tagore Marg, Indore 452 001
    8. Dr. Bhim Rao Ambedkar University, Agra 282 004
    9. Guru Ghasidas University, Bilaspur - 495 009 (M.P)
    10. Jai Naraian Vyas Unviersity, Jodhpur 342 001
    11. Jiwaji University, Gwalior 474 011
    12. University of Lucknow, Lucknow 226 007
    13. Mahatma Gandhi Kashi Vidyapeeth, Varanasi 221 002
    14. Mohanlal Sukhadia Unversity, Udaipur 313 001
    15. MJP Rohilkhand University, Dori Lal Agarwal Marg, Bareilly 243 001
    16. Nalanda Open University, 9, Adarsh Colony, Kidwaipuri, Patna -800 001
    17. Pt. Ravishankar Shukla University, Raipur 492 010
    18. Ranchi University, Ranchi 834 008
    19. Rani Durgavati Vishwavidyalaya, Saraswati Vihar, Jabalpur 482 001
    20. Vikram University, Ujjain 482 001
    11. COMMITTEE ON TRADE LAWS & WTO

    In pursuance of its mission to establish and assure the expertise and authority of the ICAI in all matters of conceptualization, formulation, negotiation, implementation and redressal concerning Laws of trade inluding trade in goods and services in particular, and the implementation of international trade regimes including the WTO regime in general both nationally and internationally, the Committee has been making all out efforts vigorously by following measures:-

    • With a view to creating and expanding a base of expertise and increasing awareness amongst the members of the ICAI, industry, business agriculture, services and other sectors; in the areas of trade laws arising out of WTO Agreements; the Committee has organised Awareness Campaign Programmes in coordination with the Regional Councils and Branches of the ICAI at the following places during April 01- March 02.

      -Nagpur
      -Kolkata
      -Rourkela
      -Saharanpur

    • The Committee has constituted the Technical Consultative Groups in the following focus themses which will be giving their considerd views in the areas allocated

      - Anti-dumping, Anti Subsidy and Safeguards
      - Agriculture Policy on WTO
      - GATS & Unbound Commitments
      - Information Systems required for Defence and complaints under WTO
      -TRIPS and TRIMS
      - Anti Subsidy Laws and Exim Policy
      - Competition Law, Domestic Trade Laws and Policy
      - Basic Document on WTO Agreements

    • The Committee has started publishing awakening compaign material entitled The WTO Pathfinder - As a Technical update on WTO Matters. Till now, 4 issues of the publication have been brought out.

    • The Committee is establishing interactions with the Indian Missions abroad with a view to ascertain the posistion related to various Agreements of WTO prevailing in those countries and to expand the collection of research material of the Committee with a view to expand its research base.

    • From 1.4.2001 till 31st August, 2002, three meetings of the Committee have been held with the following details:-

      -3rd Meeting - 31st July, 2001 at New Delhi
      -4th Meeting - 20th November, 2001 at New Delhi
      -5th Meeting - 7th June, 2002 at New Delhi

      The Technical Consultatives Group meeting on Anti -dumping, Anti - subsidy and Safeguards was held on 12.5.2001 at New Delhi under the convernorship of Shri L.V. Saptharishi. Additional Secretary and Director General Directorate of Anti - dumping and Allied Duties, Minstry of Commerce, Government of India, and it wa decided to:
      -Sub-group on Anti-subsidy
      -Sub-group on Anti-dumping
      -Sub-group on Safeguards
      - Develop a monograph of Evolution of Anti - Dumping, Anti-Subsidy and Safeguards in Inda.

    • At the first meeting of the Technical Consultative Group on Domestic Trade Laws and Policy held on 19th May 2001 at Kolkata, it was decided to consider the domestic trade laws, policies and theri impact in all its aspects and the group would come with a speaking report on the same.

    12. COMMITTEE ON INFORMATION TECHNOLOGY

    VISION

    To make the ICAI members as Technology Accountants and worldclass Information Security Professional Practitioners for guiding and supporting, Government, Corporates and Society and also to evolve and provide Standards of excellencein Security for Industry, Business as also for profession.

    MISSION

    The Convergence of Information and Telecommunication Technology in the las decade has brought in sweeping changes not only in our daily routine restructuring in the corporate and business sector but also in almost all professional practice domain thus impacting demand for new skills and competencies, thus sweeping entire spectrum of lifestyle and economic growth.

    The demand for a different body of knowledge, competencies and capabilities especially from professional such as practising accountants has called for paradigm shift from traditional accounting and auditing to IT enabled services such as

    • Assurance Services
    • Certificate of Softwares
    • Business Process Consultancy
    • Security Certification, Devising and
    • Certifying the Control Process etc.

    INCEPTION OF THE COURSE

    The growing complexity, variety and System inter connections and the on going, rapid evolution of IT have meant profound changes in the way Organisations work. In the new Envioronment, IT has become integral part of strategic business scenario

    Society expects that Professional Accountants should have the required level of competence to perform their work and also to possess the knowledge and skill to demonstrate the competence and credibility of the Accountancy Profession. In additio, the accountancy profession has an obligation to ensure that after qualifying members keep abreast of relevant developments through continuous professional education

    The Council of the ICAI by commissioning IT Committee with far-sighted vision and professional leadership has been adequately manifested in the form of Government approval for Information System Audit Course (ISA) which has been overwhelmingly received by the C.A. Professionals all over the country.

    Though the new challenges on one side has been threatening the traditional domain the Council of the Institute by commissioing Information System Audit (ISA) and Computer Accounting and Audit Techniques (CAAT) Course had not only envisaged to cope up with the challenges of the dynamics of Information Technology but also envisioned to exploit Technology for enhancing the professional skills of its members thus widening the scope of professional service to business, government and society.

    1. ISA Course - Registration

    During the period under report 2228 members have registered themselves for ISA course and 1910 have undergone Professional Training in 29 PT Centres. As a path breaking measure. Online Registration for ISA Course has been introduced successfully. It is gratifying to note that out of the 3200 ISA Registration received upto 31/03/2002, 2100 registrations has been done online, which only goes to prove that the members are increasingly becoming tech-savvy.

    As on 31st August 2002, a total number of 5621 members have registered for ISA Course. The progress of ISA registration over the period of time 31st August 2002 is depicted in the diagram given below: From the diagram it may be seen that there is a tremendous increase in trends for the ISA Course registration from the year 2002 onwards.

    Western Southern Northern Central Eastern
    Ahmedabad(69)
    Akola(33)
    Aurangabad(77)
    Baroda (54)
    Mumbai(143)
    Nagpur(59)
    Pune(148)
    Alapuzha(42)
    Bangalore(115)
    Belgaum(60)
    Calicut (89)
    Chennai(188)
    Coimbatore(38)
    Ernakulam(148)
    Erode(35)
    Guntur(42)
    Hubli(106)
    Hyderabad(172)
    Kottayam (71)
    Kumbakonam(32)
    Madurai(76)
    Palakad (35)
    Pondicherry(40)
    Quilon (51)
    Salem(50)
    Shimoga(36)
    Sivakasi(66)
    Tiruchirapalli(42)
    Tirupur(75)
    Trichur(64)
    Trivandrum(79)
    Tuticorin(42)
    Udupi(32)
    Vijayawada (48)
    Visakhapatnam(72)
    Chandigarh(45)
    Dehradum(43)
    Faridabad (45)
    New Delhi(133)
    Lucknow (39)
    Agra(42)
    Bareilly(36)
    Ghaziabad (53)
    Indore(52)
    Kanpur(33)
    Kolkata (87)
    Total = 583 1983 266 255 87

    (ii) During the period under Report ISA Modular Eligibility has been conducted on a quarterly basis and 522 members have passed the Eligibility Test conducted in 24 centres conducted all over India.

    Till date, 1700 members have qualified the Eligibility Test in the four Eligibility Tests conducted in November 2001 (292), February 2002 (229), June 2002 (546) and August 2002 (633).

    (iii) During the period under report, 139 candiates have qualified ISA Final Assessment Test and has become ISA qualified Members

    Till date, 665 members have qualified the Final Assessment Test held in the last 3 Assessment Tests viz., December 2001 (121), March 2002 (139) and June 2002 (405)

    (iv) Faculties for imparting 100 hours of Professional Trainig are the experts drawn from various domains such as Practising CA Professional, eminent Professer from Technology Institutions / Universites, renowned Business / Technology Consultants etc. who are the driving force for the success of the ISA Programme.

    2. Computer Accounting and Audit Techniques Course (CAAT)

    Society expects the professional accountants to have the require level of competence to perform the work required Conceptual competency apart, C.A. professionals are now expected to have the practical and application skills in computers as user manager, designer and auditor.

    The IT Committee in response to the demands of the Members for imparting Practical Training towards handling Computers and Applications has already formulated Action Palns to conduct a 100 hour practical Course on CAAT which has already been approved by the Executive Committee of the ICAI.

    Members spread across the country including far-flunged and mofussil areas will have the benefit of hands on experience not only in traditional Excel / Spreadsheet application but also in advanced features such as RDBMS, ERP, NETWORK, Secutiry, Web based Tecnologies and specialized Audit Techniques (General Application Software -GAS such as ACL, IDEAS etc.)

    CAAT course has ben launched in Chennai by President on 26th August 2002

    NIIT, APTECH and SSI have been selected as Service Providers for conducting CAAT course througout the Country.

    3. Hands on Exposure and Hands on Techology Workshops:

    Since one of the main objectives of the IT committee is taking Technology to members' doorsteps as a beginning, Hands on Technology Exposure Programmes had been conducted in Tirupur, Tamil Nadu and Ernakulam, Kerala where 150 participants had the benefit of Exposure towards Banking Software Software Solutions an Audit Techniques.

    4. International / All India Technology Conference:

    IT Committee has formulated plans to conduct International / National Conference in all Metros such as Delhi, Mumbai, Chennai, Kolkatta, Bangalore, Hyderabad and also in 10 other selected semin-urban cities covering almost all the Regions.

    5.Website Development

    The ICAI official Website has undergone major changes not only in the "look and feel", navigability but also in contents and concepts. The new home page alsong with the additional features focusing on services to members and students has earned wide accolade and acclaim from public and members across the country as well as from abroad.

    6. Software Development for Institute's operations:

    On the initiative taken by the IT Committee, software development has already been formally commissioned. Once it becomes operational, all services of the ICAI would be available through the medium of Website. Essentially all kinds of Informational interaction with the ICAI such as Enrollment of Membership, Renewal of Membership and COP, Change of Address, Status of entitlement for training of Articled clerk, eligibility status of students community will be available through the Web medium.

    7. Collaboration with "The Managementor' knowledge Portal:

    A very novel medium of Online Practicing Tests for ISA participants has been launched during the reporting year the benefit of which has been highly appreciated by ISA participants. It is on record that ICAI is one among teh forerunners among the Professional Accounting Institutes / International Bodies having successfully introduced Online Test Programme for its members. Recently researched Premium Contents along with explanatory notes has also been incorporated adding high values to the Online Practice Test format as a continuous learning unique experience. This has proved to be a boon for ISA Participants not only for preparing for the ISA Examination but also in theri Professional Practice, as System Auditors.

    8. SCOPE OF WORK ON COMPLETION OF THE COURSE

    • Information Development and Information System Desin
    • Information System Control and Evaluation
    • Advisory devised relating to assessing investment in strategic IYT
    • Risk Assessment
    • Assessment of Controls, Information Privacy and Intergrity

    9. PRODUCT DEMONSTRATION

    It has been decided to start a Residential Course to expose ISA members to advanced Technology Applications. To start with it is proposed to introduce two products (General Purpose & Special Purchase). One will be a General Purpose Software like Tally, Wings, Ex-NGN, etc, and the other product (SPS) would be a Banking product like-i-cube by I flex Solutions or Finacle by Infosys, Windows 2000 Security.

    The whole exercise is likely to take five working days. During the first two days, there will be a demonstration and on-hand experience of GPS products and for the next three days there will be familiarisation of the SPS products with Technology Application to Accounting and Auditing Services.

    Emerging opportunities for Information System Audit Professionals:

    1. Information Development and Information System Design:

      With the advent of new information technologies and quick acessibility information the focus is being shifted from traditonal accounting information to other important types of information and performance educator including non-financial information.

    2. Information System Management and Control:

      IS Auditors in vies of their exposure and understanding of IT related benefits and risks would be able to develop appropriate system management and control and also effectively communicate the same to the management. IS Audit Professionals, by virtue of their broad business perspective, financial skills and objectivity, can provide valuable advisory services relating to assessing investment IT.

    3. Information System Evaluation:

      Professional Accountants tradionally provide effective services in to their internal and external auditors. On qualifying as IS Auditors, the same Professional Accountants by virtue of their enhanced knowledge of IT application wold be able to make objective assessment of Information System Control as well as Information Privacy and Intergrity.

      Foundation
    1.4.01 - 30-9-01
    PE(Course I)
    1.10.01 - 31.3.02
    PE (CourseII)
    1.10.01- 31.3.02
    Western India Region 8,941 730 1,326
    Southern India Region 4,207 1,191 5,167
    Eastern India Region 3,631 668 1,213
    Central India Region 6,593 1,608 2,693
    Northern India Region 5,837 809 1,449
    Total 29,209 5,006 11,848
    (Ref. Para 11.3 of the Report)
    Number of Students on Rolls for Intermediate and Final Courses
      Intermediate Final Total
    No. of Students who were enrolled as 1.4.2001 1,84,417 50,851 2,35,268
    Add:Enrolled during the year 2001-2002 17,555 11,524 20,079
    Less: No. of students who have passed Intermediate / Final Examination in the year (May 2001 and Nov 2001) 11,385 5,815 17,200
    Total 1,90,587 56,560 2,47,147
    (Ref. Para 12.1.1 of the Annual Report List of Branches of Regional Councils)

    Western India Regional Council

    1. Ahmedabad
    2. Anand
    3. Aurangabad
    4. Goa
    5. Jalgaon
    6. Jamnagar
    7. Kolhapur
    8. Nagpur
    9. Nashik
    10. Pune
    11. Rajkot
    12. Sangli
    13. Solapur
    14. Surat
    15. Vadodara

    Southern India Regional Council

    1. Alleppy
    2. Bangalore
    3. Belgaum
    4. Calicut
    5. Coimbatore
    6. Ernakulam
    7. Erode
    8. Guntur
    9. Hubli
    10. Hyderabad
    11. Kottayam
    12. Kumbakonam
    13. Madurai
    14. Mangalore
    15. Mysore
    16. Palghat
    17. Pondichery
    18. Quilon
    19. Salem
    20. Tiruchirapally
    21. Tirunelveli
    22. Tirupur
    23. Trichur
    24. Trivandrum
    25. Tuticorin
    26. Udupi
    27. Vellore
    28. Vijayawada
    29. Visakhapatnam

    Eastern India Regional Council

    1. Asansol
    2. Bhubaneswar
    3. Cuttack
    4. Durgapur
    5. Guwahati
    6. Rourkela
    7. Siliguri

    Central India Regional Council

    1. Agra
    2. Ajmer
    3. Allahabad
    4. Alwar
    5. Bareily
    6. Bhilai
    7. Bhilwara
    8. Bhopal
    9. Dehra Dun
    10. Dhanbad
    11. Ghaziabad
    12. Gwalior
    13. Indore
    14. Jaipur
    15. Jamshedpur
    16. Jodhpur
    17. Kota
    18. Lucknow
    19. Mathura
    20. Meerut
    21. Moradabad
    22. Muzaffarnagar
    23. Noida
    24. Patna
    25. Raipur
    26. Ranchi
    27. Saharnapur
    28. Udaipur
    29. Varanasi

    Northern India Regional Council

    1. Ambala
    2. Amritsar
    3. Batinda
    4. Chandigarh
    5. Faridabad
    6. Gurgaon
    7. Himachal Pradesh Branch at Shimla
    8. Hisar
    9. Jalandhar
    10. Jammu & Kashmir Branch at Jammu
    11. Ludhiana
    12. Panchkula
    13. Panipat
    14. Patiala
    15. Rohtak
    16. Sonepat
    17. Yamunagar
    (Ref Para 12.1.2 of the Annual Report)
    List of Chapters outside India

    1. Abu Dhabi, UAE
    2. Bahrain
    3. Botswana
    4. Doha, Qatar
    5. Dubai, UAE
    6. Eastern Province, Saudi Arabia
    7. Jeddah, Saudi Arabia
    8. London, UK
    9. Nairobi, Kenya
    10. Royadh, Saudi Arabia
    11. Zambia
    (Ref. Para 12.1.3 of the Annual Report)
    List of Reference Libraries

    Western Region

    1. Akola
    2. Bhavnagar
    3. Ichalkaranji

    Southern Region

    1. Alwaye
    2. Anantapur
    3. Cannanore
    4. Cuddapah
    5. Hosur
    6. Neyveli
    7. Ongole
    8. Pollachi
    9. Rajapalayam
    10. Ramgundam
    11. Shimoga
    12. Sivakasi
    13. Thanjavur
    14. Thodupuzha
    15. Tirupati
    16. Tumkur
    17. Vizianagaram
    18. Warangal

    Eatern Region

    1. Accountants Library, Kolkata
    2. Salt Lak City, Kolkata
    3. South Calcutta
    4. Tinsukia

    Central Region

    1. Aligarh
    2. Bharatpur
    3. Bikaner
    4. Bilaspur
    5. Jabalpur
    6. Pali Marwar
    7. Ratlam
    8. Satna
    9. Sriganganagar

    Northern Region

    1. Kaithal
    2. Karnal
    3. Bhiwani
    (Ref. Para 12.2 of the Annual Report)
    (a) List of Branches having theri own premises.

    Western Region

    1. Ahmedabad
    2. Aurangabad
    3. Baroda
    4. Goa
    5. Jalgaon
    6. Kolhapur
    7. Nagpur
    8. Nashik
    9. Pune
    10. Rajkot
    11. Sangli
    12. Sholapur
    13. Surat

    Southern Region

    1. Alleppey
    2. Bangalore
    3. Belgaum
    4. Calicut
    5. Coimbatore
    6. Ernakulam
    7. Guntur
    8. Hyderabad
    9. Kottayam
    10. Kumbakonam
    11. Madurai
    12. Mangalore
    13. Palghat
    14. Quilon
    15. Salem
    16. Tiruchirapalli
    17. Trichur
    18. Trivandrum
    19. Vijayawada
    20. Visakhapatnam

    Eastern Region

    1. Asansol
    2. Bhubaneswar
    3. Durgapur
    4. Siliguri
    Central Region
    1. Agra
    2. Alwar
    3. Bhopal
    4. Dhanbad
    5. Gwalior
    6. Indore
    7. Jaipur
    8. Jodhpur
    9. Lucknow
    10. Patna
    11. Raipur
    12. Ranchi
    13. Udaipur
    14. Varanasi
    Northern Region
    1. Hisar
    (b) List of branches having their own land and are yet to have ther premises

    1. Chandigarh
    2. Dehradun
    3. Moradabad
    4. Mysore
    5. Jalgaon

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