Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-WB-E-03102023-249101
EXTRAORDINARY
PART III—Section 4
PUBLISHED BY AUTHORITY
No. 662]
NEW DELHI, MONDAY, SEPTEMBER 25, 2023/ASVINA 3, 1945
64th ANNUAL REPORT, 2022-23
The Council of the Institute of Cost Accountants of India takes pleasure in presenting this 64th Annual Report giving the achievements and activities of Departments, Committees, Regions and Chapters of the Institute.
Abridged Annual Report 2022-23
Activities of the Committees/Boards/Cells/Directorates
President's Office
President's office at Delhi and Kolkata facilitates coordination of various activities on behalf of the President of the Institute with departments of the Institute and external agencies. It may not be involved with the activities directly but indirectly there are many actions taken by the President's office for the ease of coordination.
Directorate of Examination
Due to the Covid-19 situation in the country, examinations were conducted through online center-based mode for Intermediate & Final examinations and the Foundation examination in online home-based mode. For June 2022 term of examination, the examinations were conducted in 208 online examination centers including 3 overseas centers. For December 2022 term of examination, the examinations were conducted in 165 online examination centers including 3 overseas centers.
Directorate of Studies
The Directorate is mainly focused on students' related activities and always striving to serve them better by performing several activities through online or offline mode for maximum outreach to students both in India and abroad. Presently it is having five distinct wings: (A) Academics (B) Administration (C) Online Coaching/E-Learning (D) Skills Training (E) Practical Training. While the Academic wing of D.O.S is assigned with the duties to develop the skill of the students through knowledge, comprehension, application and analysis of various academic related matters, the Administrative wing of D.O.S administers the other functional activities such as students' admission, coaching, revalidation, exemption, training and all other related matters. Some activities are jointly handled and looked after by both these wings.
Directorate of Journal & Publications
- The Directorate publishes monthly journal "The Management Accountant" and quarterly journal "Research Bulletin" on regular basis.
- The Management Accountant journal is now available in 94 countries across the world and continuously trying to increase the same to other parts of the world.
- The Management Accountant journal is available on apps for reading through third parties viz. Magzter and Readwhere and the Directorate is also trying to enlist the same to other platforms mainly at the International Level.
- The Management Accountant has got enlisted in the prestigious "UGC-CARE Reference List of Quality Journals" after several rounds of rigorous process and quality checking.
- Column for Digital Transformation: The highly appraised Column "Digital Transformation" presented a wide array of topics on digital transformation like, Smart contracts; Digital Assets; Decentralized Finance; Edge Computing, 5G & AIoTs; RPA; Audit Functions, Digital Darwinism; Digital Transformation with CBDC, etc. This column has been extremely beneficial towards enrichment of reader's knowledge base.
- Column for Sustainability Leaf: The issue of sustainability, undoubtedly is an eternal as well as an inevitable need. The Institute, since its inception, is making timely endeavors to match the pace of sustainability issues and create awareness among students, members and other stakeholders.
- The 58th Anniversary special issue of The Management Accountant, January 2023, Vol.58, No.01 was on the theme "Emerging Trends in Banking: Transforming Customer Experience". Special Articles on Central Bank Digital Currency (CBDC) were added to make this issue more productive and stimulating.
Information Technology Department
With the efficient use of Information Technology, services to the stakeholders are increasing as Information Technology is contributing to overall growth of the Institute.
- Signing of MOU with Jio
- IT development for Membership Online Application
- Multipurpose Empanelment Scheme (MES) for Practicing Cost Accountants and Firms
- Separate Website & Online Application for CMA Awards 2022
- IT development for Student's related activities
- Development in the IT-Infrastructure
- Development for Insolvency Professional Agency (IPA)
- Separate Website for Agricultural Cost Management
Professional Development & CPD Directorate
PROFESSIONAL DEVELOPMENT ACTIVITIES: Recognition of CMAs on the Institute's representation; Representations to Government, PSUs, Banks and Other Organizations; Multipurpose Empanelment Scheme (MES); Unique Document Identification Number (UDIN) for Practitioners; National CMA Practitioners Convention (NCPC); Other Professional Development Activities; Compliance for Members.
CONTINUING PROFESSIONAL DEVELOPMENT (CPD) ACTIVITIES: Mandatory Capacity Building Training (MCBT) for COP holders; Continuing Education Programmes; Programmes & Webinars Organised by PD & CPD Committee; Joint Programmes; National Awards for Excellence in Cost Management and CMA Awards 2022.
Regional Council & Chapters Coordination Committee
The Committee is tasked with: Bridging the gap among Headquarters, Regional Councils & Chapters; Improving operational efficiencies; Encouraging Regional Council & Chapters to cooperate with compliance, rules & regulations of the Institute; Proactively identifying issues and facilitating joint action on cross-cutting issues or issues of shared Concern. Other Activities of the Committee: The Committee organized a series of interactive webinars from November 2022 to February 2023.
International Affairs Department
- Global Convention in Dubai
- International Meetings & Events: South Asian Federation of Accountants (SAFA); Confederation of Asian and Pacific Accountants (CAPA); International Federation of Accountants (IFAC); International Integrated Reporting Council (IIRC); International Webints; Other International Events
Task Force on MSME & Start-up
The Institute decided to constitute a MSME & Start-up Promotion Board for the purpose of evolving ways and means to guide the MSME Sector and Start-ups. The Institute, after considering the undeniable fact that the Micro, Small and Medium Enterprises (MSMEs) sector can play a crucial role in realizing the vision of "Aatmanirbhar Bharat" or self-reliant India, looks forward in extending support to the Government initiatives in whatever way possible including by way of providing support and suggestions to the MSME Sector and Start-ups. The MSME & Start-up Promotion Board took over the erstwhile Task Force for MSME & Start-up of the Institute.
Tax Research Department/Taxation Committee
Celebrating the 5th Anniversary of GST Day; Quiz; Tax Bulletins; Workshops; Webinars; Representation to the Government; Taxation Help Desk; Taxation Courses; Top Stories; Publications.
CAT Directorate
Activities: Association with Ministry of Defence; Recognition of NCVET; CAT Examination; Online Classes for CAT Students; CAT Course Part-II Online Classes for CAT Students; CAT Competency Level - Part II Assessment Tests (Old Syllabus); National CAT Students Convention 2023 at Kozhikode (Kerala); Event organised by the ROCC; Career Counselling; CAT e-Bulletin; CAT Course for Employees of the Institute; Updation of CAT Course in BFSI Sector Skill Council of India (BFSI SSC); WEBINTs.
Board of Advanced Studies & Research: Advanced Studies Courses; Online Events/Workshop; Online Examinations.
Technical Cell (Cost Audit & Statutory Compliances)
Technical Cell was assigned the task of preparation of the draft Guidance Note on Inventory Valuation (In terms of the proposed Section 142 (2A) of the Income Tax Act), which is under preparation. The Technical Cell resolved 42 queries during the term and overall 221 queries on the technical matters.
Internal Control Department
Internal Audit: The Department had coordinated for the appointment of Internal Auditors for the year 2022-2023 for the Headquarters including Delhi Office, four Regional Councils (WIRC, SIRC, EIRC and NIRC) and four Chapters (Bangalore, Hyderabad, Bhubaneswar, Jaipur) with Turnover exceeding Rs. 1 crore and above through an Expression of Interest and also providing the scope of work and necessary coordination for such audit. After completion of the audit the reports are analyzed along with the management reply. Thereafter, advisory are provided to the Headquarters, Chapters and Regions for necessary compliance.
Purchase Proposals: The Department has been vetting various purchase proposals originating from different departments at HQ, Delhi Office along with procurement proposals of Regional Councils and Chapters. The proposals are vetted as per the GFR, CVC Guidelines.
Banking Financial Services & Insurance Board
Activities: Inclusion of CMAs in various Professional Development Activities.
Professional Development Activities: Pension Month in the Month of January, 2023; Observance of World Investor Week (WIW) 2022- 10th to 16th October, 2022; Webinars and Webints; Seminars, Workshops and Summits; Meeting with Dignitaries.
Certificate Courses: Certificate Course on Investment Management in association with NISM; Certificate Courses on Banking.
Professional Publications: Aide Memoire on Infrastructure Financing; Release of Handbook on Stock and Book Debts Audit (Revised and enlarged 2nd Edition); Release of the 11th,12th and the 13th issue of the BFSI Chronicle; Daily News Updates; MOU with NSE Academy Limited; 2nd ICMAI National Awards - Essay Contest 2022 for Bankers; BFSI Portal.
Members in Industry and Placement Committee
The Committee embarked on activities and programs for sharing, disseminating and providing to various industries the valuable role of CMAs. The Committee held Webinars and Seminars inviting industry experts who shared their expert views with the member participants for greater value addition to the profession. Several Seminars/Webinars had been conducted successfully by the Committee for capacity building of professional members, sharing views of knowledgeable industry experts on various perspectives of industries and latest developments, with huge gathering of interested members participating actively.
Management Accounting Committee
The Institute has decided to mark the occasion of International Management Accounting Day on the 6th of May by holding Seminar on Management Accounting every year. This has been the first year of this event by the Institute and the seminar involved deliberations on various emerging techniques of Management Accounting keeping Sustainable Development at its core.
Committee on Cost Management for Public and Government Services
The Council of the Institute had formed the committee in the year 2021-22 with the objective of providing appropriate and relevant services to Public and Govt. organization including PSUs, Local and autonomous bodies etc. The Committee organized a 3-Day Seminar at IMMT Auditorium, Bhubaneswar during 13th–15th May, 2022 and published "The Xtramile, a bi-monthly chronicle on Cost Management for public and Government Services" in that seminar.
Cooperative Development Board (CDB)
Objective: CDB provides information and direction for the Co-operative activities in India that aligns with its mission, vision, and values to represent the interests of the members of the Institute and its other stakeholders about the activities of the Co-operative bodies. Uphold rules and regulations set out in the Act as well as the incorporation of documents of the Co-operative. Highlight policies and procedures that improve the governance of the Co-operative activities and the effectiveness of the members of the Institute through the Co-operative Development Board of the Institute. Contact and make correspondence with the various Cooperative Boards in the State levels.
Corporate Laws Committee
The Corporate Laws Committee of the Institute met 2 times during the term. During this term, the Committee has taken up the several initiatives towards capacity building of professionals in the area of corporate laws. As a major initiative towards contribution to the professionals, February 2023 was celebrated as Corporate Law Month by the Corporate Laws Committee on a PAN India basis and as a major contribution to the profession, the Corporate Laws Committee released publication on Social Stock Exchange and Handbook on Stock Exchange Listing for which very good reviews have received from members and other professionals.
Cost Accounting Standards Board (CASB)
The Board finalized the way forward for Revision of Cost Accounting Standards and development of Technical Guides. It was also decided that a separate set of Integrated Cost Accounting Standards shall be developed for the Service Sector.
Cost Auditing and Assurance Standards Board (CAASB)
The CAASB met twice during the term on 6th September 2022 and on 8th July 2023. Exposure Draft of the Revised Standards on Cost Auditing (SCAs 101 to 118) was released seeking public comments. The modifications were carried out in the draft of the revised Standards in the light of the comments received. The finalised version of the Standards was placed before the Council for approval. Subsequent to the approval by the Council, the Standards were sent to the Ministry of Corporate Affairs seeking the approval of the Central Government for release of the Standards in the month of January 2023. The process of obtaining approval is going in consultation with the Cost Audit Branch.
Peer Review Board (PRB)
The Peer Review Board of the Institute met virtually twice on 3rd May and 9th June 2023 during the term. The Council of the Institute has approved the implementation of the Peer Review System in the Institute. Accordingly, the PRB sent communication to all the practicing members of the Institute for empanelment of Reviewers and also seeking consent for peer review of their respective firms.
Agriculture Cost Management Board
Initiatives: CMA-FPO Symposium on "Cost Optimisation and Returns Maximisation throughout the Agricultural Value Chains"; 'Converting Knowledge into Wealth is the Future' observes the Hon'ble Minister — Shri Nitin Jairam Gadkari, Hon'ble Minister for Road Transport and Highways, Government of India, was the Chief Guest of Plenary Session; MOU with Innovative Sahyadri FPC: "Of the Farmer, By the Farmer and For the Farmer"; FPO Model towards Augmentation of Farmers' Income; Exemplary work by Satpura Women Silk Producer Company Limited; Eminent Speakers Kindle Up; The Way Forward & The First Ever FPO Cost Clinic; MOU with IGNOU.
Membership Department
The Membership Department, under the guidance of the Members' Facilities Committee, and under the active leadership of The President Sir, CMA Vijender Sharma, of the Institute and CMA (Dr.) V. Murali, Chairman of the Members' Facilities Committee, has continued to improve and offer seamless services, mostly through online to members throughout the year. 1847 members were newly admitted as Associate members and 371 members were advanced to Fellowship during the FY 2022-2023. In spite of being highly engaged in executing mammoth requirements owing to the Election to the Council and Regional Councils 2023, the department successfully maintained its usual departmental work, related to members. Maintaining the continuity of DIGILOCKER facility for members, specially for availing online Members' Identity Card together with the processing followed by grant of membership on every week, the existing special features which were introduced earlier were continued as under: Provision for restoration of Certificate of Practice; Waiver of convenience charges/bank charges in making online payments by Members; Provision for incorporation of GST number against membership number along with the reflection of the same in their corresponding membership fees receipts; Introduction of facility of payment of membership fee online without login; Faster grant of Certificate of Practice in a regular manner; Publication of List of Members as well as List of Members holding Certificate of Practice; Continuous improvement for a seamless digital experience covering all activities of membership through online facility.
Internal Committee
As envisaged under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressed) Act, 2013 the annual report of the Internal Committee of Institute for the period is as follows:-
Number of complaints of Sexual Harassment received in the year (1st April, 2022 to 31st March, 2023): 1
Number of complaints of Sexual Harassment registered and disposed off in the year (1st April, 2022 to 31st March, 2023): 1
INDEPENDENT AUDITOR'S REPORT
The Council of THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
Report on the Audit of the Financial Statements
Qualified Opinion
We have audited the accompanying financial statements of THE INSTITUTE OF COST ACCOUNTANTS OF INDIA ('the Institute') which comprises the Balance Sheet as at 31st March, 2023, the Statement of Income and Expenditure and the Cash Flow Statement for the year then ended and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matters described in the Basis for Qualified Opinion section of our report, the accompanying financial statements prepared in all material respects in accordance with the Cost and Works Accountants Act, 1959, give a true and fair view of the financial position of the Institute as at 31st March, 2023, its financial performance and its cash flows for the year then ended in accordance with the applicable Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).
Basis for Qualified Opinion
1. The consolidated financial statements of the Institute are prepared considering Head Quarter Kolkata, New Delhi Office, four Regional Councils and eighty-five Chapters. Out of which the financial statements of one Regional Council namely NIRC and two Chapters namely Bharuch-Ankleshwar and Indore-Dewas are unaudited. Financial statements of twenty-eight Chapters are not available for consolidation in the consolidated financial statements of the Institute.
2. There is an un-reconciled net credit balance of Rs. 32,18,52,550/- Cr (P.Y – Rs. 20,41,09,425/- Cr) classified under 'Current Accounts with Regional Councils and Chapters'. Refer Note No. 5 of Notes to Financial Statements.
3. There is a balance of GST Input Credit of Rs. 2,09,23,151/- as on 31st March, 2023 in the books of accounts of Headquarter including Delhi Office which is yet to be reconciled with the GST Credit Ledgers of West Bengal and Delhi.
Financial impact of the above qualifications cannot be ascertained.
We conducted our audit in accordance with the Standards on Auditing (SAs) issued by the Institute of Chartered Accountants of India. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Institute in accordance with the ethical requirements that are relevant to our audit of the financial statements and we have fulfilled our responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Emphasis of Matter
We draw attention to the following notes:
1. Note No. 2(j) of Notes to Accounts, which describes that, an amount of Rs.4,99,78,350/- is lying in the books of Head Quarter representing CWIP in respect of which no further work has been carried out/undertaken during the last 5 years. Details: Navi Mumbai Centre of Excellence — Amount Rs. 4,99,78,350/- — Remarks: Last amount paid Rs.5,24,750/- on 13.07.2016 & Rs. 22,400/- on 17.08.2016 to Gulraj Construction. However, litigation is pending before Bombay High Court vide Arbitration Petition (ST) 7232 of 2017.
2. The Institute has an old amount outstanding in Non-Specific Deposit of Rs.4,99,664/- (Cr.). The nature of the amount cannot be ascertained.
3. The year-end balances of trade receivables, trade payables, loans and advances etc. are subject to balance confirmation from respective parties.
4. Claims receivable of Rs. 67,30,000/- appearing in the books of the Western India Regional Council (WIRC).
5. In respect of Eastern India Regional Council (EIRC): a) Sundry Debtors amounting to Rs. 15,32,585/- are lying for more than 3 years as on 31st March, 2023 which include old balances. The recovery of the same appears to be remote. b) Other advances amounting to Rs. 13,07,101/- as on 31st March, 2023 are lying in the books since 2013 against which no details are available.
Our opinion is not modified in respect of these matters.
Responsibilities of Management for the Financial Statements / Auditor's Responsibility for the Audit of the Financial Statements — standard audit-standards boilerplate language regarding management's responsibility for preparation and fair presentation of financial statements under the Cost and Works Accountants Act, 1959, going concern basis, and the auditor's responsibility to obtain reasonable assurance and exercise professional judgment and scepticism in accordance with Standards on Auditing (SAs).
Other Matters
1. (a) We did not audit the financial statements of four Regional Councils and eighty-five Chapters whose financial statements reflect total assets of Rs. 2,31,61,21,364/- and total revenue of Rs.44,97,67,370/- as considered in the financial statements. (b) The financial statements of one Regional Council and two Chapters are unaudited. (c) The financial statements for the year of the Institute do not include the financial statements of twenty-eight Chapters, as no financial statements have been received from their end. (d) The financial statements of the Institute for FY 2022-23 includes sixty-two Chapters audited by Cost Accountants and three Regional Councils & twenty one Chapters audited by Chartered Accountants.
2. Property, Plant & Equipment: a) The Property, Plant and Equipment of Head Quarters including Delhi Office have not been physically verified by the management during the audit period. The last verification of movable fixed assets of the Head Quarter in Kolkata including Delhi office was conducted in the month of January, 2021. b) The Fixed Asset Register of the Institute is being updated. c) In respect of the following Chapters, Title Deeds/Lease Deeds of Freehold/Leasehold Land are yet to be transferred in the name of the "Institute": Nasik Ojhar, Nagpur, Indore Dewas, Bilaspur, Pune, Visakhapatnam, Bhopal, Bhilai, Lucknow, Kota, Serampur, Ranchi and Bhubaneswar.
For KGRS & Co, Chartered Accountants, Firm Registration No. 310014 E
Anshu Agarwal, Partner, Membership No. 308581, UDIN:23308581BHBAMX6459
Place: Kolkata, Date: 21st July, 2023
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
BALANCE SHEET AS AT 31ST MARCH, 2023 (figures in Rs.; As at 31st March 2022 / As at 31st March 2023)
SOURCES OF FUNDS
INSTITUTE FUND
General Fund (Note 1): 3,898,048,503 / 4,233,909,019
Employees' Gratuity Fund (Note 2): 1,296,391 / 2,239,482
Miscellaneous Prize Fund (Note 3): 12,419,397 / 12,880,698
Other Funds (Note 4): 50,358,461 / 50,541,678
Current Liabilities (Note 5): 660,397,676 / 778,431,364
Provisions (Note 6): 18,193,871 / 17,256,939
TOTAL: 4,640,714,299 / 5,095,259,180
APPLICATION OF FUNDS
Non Current Assets
a) Property, Plant and Equipment (Note 7): 638,602,275 / 618,781,092
b) Intangible Assets (Note 7): 877,286 / 698,180
Capital Work In Progress: 61,647,997 / 151,849,719
Investments (Note 8): 111,151,147 / 111,151,147
Current Assets
Inventories (Note 9): 6,541,171 / 7,568,481
Trade Receivables (Note 10): 146,562,241 / 175,529,378
Cash and Cash Equivalents (Note 11): 3,623,496,715 / 3,977,417,448
Loans and Advances (Note 12): 51,835,467 / 52,263,735
Current assets subtotal: 3,828,435,594 / 4,212,779,042
TOTAL: 4,640,714,299 / 5,095,259,180
For KGRS & CO, Chartered Accountants, Firm Regn. No.: 310014E; Anshu Agarwal, Partner, Membership No.: 308581; CMA Arnab Chakraborty, Director-Finance; CMA Rakesh Bhalla, Vice President; CMA Kaushik Banerjee, Secretary; CMA Vijender Sharma, President. Place: Kolkata, Dated: 21st July, 2023
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 31ST MARCH, 2023 (For the Year ended 31st March 2022 / For the Year ended 31st March 2023)
INCOME:
Membership and Other Fees (Note 13): 51,875,687 / 51,859,340
Tuition and Other Fees (Note 14): 1,317,886,952 / 1,235,176,071
Examination and Other Fees (Note 15): 183,470,371 / 308,685,692
C.P.D and Other Programme Fees: 5,644,459 / 25,774,494
Journal Subscription incl. Advertisement: 306,651 / 481,948
Sale of Publication: 571,934 / 220,908
Interest: 172,795,107 / 184,136,391
Other Income: 5,510,701 / 13,984,942
TOTAL INCOME: 1,738,061,862 / 1,820,319,785
EXPENDITURE:
Establishment Expenses (Note 16): 309,478,981 / 369,515,306
Office Expenses (Note 17): 126,731,451 / 158,141,238
Statutory Audit Fees (Note-7): 1,974,216 / 2,135,149
Travelling & Conveyance: 9,610,735 / 16,838,417
Examination Expenses (Note 18): 298,326,542 / 301,940,529
Council and Committee Meeting Expenses: 22,123,043 / 42,903,223
Election Expenses incl. Tribunal: - / 21,646
Journal Expenses: 9,708,968 / 11,361,041
Membership Subscription to Foreign Bodies: 10,495,091 / 11,796,583
Conference & Meeting International: - / 6,833,009
C.P.D, Technical Skill Development and Other Programme Expenses (Note 19): 11,016,662 / 40,857,065
Professional Development Expenses: 4,601,916 / 14,967,624
Coaching Expenses: 382,461,999 / 390,935,780
Study Materials and Prospectus Consumed: 53,872,549 / 47,221,667
Publication Stock Consumed: 762,568 / 557,579
Inventories and bad debts written off: 4,638,467 / 855,855
Contribution to MBF & Critical illness: 9,315,346 / 16,636,602
Depreciation and amortisation: 48,848,828 / 47,742,768
TOTAL EXPENDITURE: 1,303,967,362 / 1,481,261,080
Balance being excess of Income over Expenditure: 434,094,500 / 339,058,704
Prior Period Adjustments (Net) (Note 19A): 18,179,441 / 5,869,896
Balance being Surplus transferred to General Fund: 415,915,059 / 333,188,808
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2023 (For the year ended 31st March 2022 / For the year ended 31st March 2023, Rs.)
A. CASH FLOW FROM OPERATING ACTIVITIES
Surplus before taxation and extraordinary item: 415,915,059 / 333,188,808
Adjustments for: Depreciation and amortisation: 48,848,828 / 47,742,768
Operating surplus before working capital changes: 464,763,887 / 380,931,576
Adjustments for working capital changes: Increase/(decrease) in current liabilities: 276,598,114 / 117,096,755; (Increase)/decrease in current assets: 18,452,977 / (30,422,714); subtotal 295,051,091 / 86,674,041
Net cash from operating activities (A): 759,814,978 / 467,605,617
B. CASH FLOW FROM INVESTMENT ACTIVITIES
Movements in property, plant and equipments including CWIP: (5,693,727) / (70,201,433)
Net cash from investing activities (B): (5,693,727) / (70,201,433)
C. CASH FLOW FROM FINANCING ACTIVITIES
Movement in fund balance: (94,964,465) / (43,483,451)
Net cash from financing activities (C): (94,964,465) / (43,483,451)
Net increase/(decrease) in cash and cash equivalents (A+B+C): 659,156,786 / 353,920,733
Add - cash & cash equivalent at the beginning of the period: 2,964,339,929 / 3,623,496,715
Cash & cash equivalent at the end of the period: 3,623,496,715 / 3,977,417,448
Notes: i. The above Cash Flow Statement has been prepared under 'Indirect Method' as set out in Accounting standard, AS-3 on "Cash Flow Statement". ii. Cash and Cash Equivalents represent: Cash in hand 1,236,250/1,204,785; Bank Balance-Current Account 241,208,610/200,681,972; Bank Balance-Savings Account 110,758,360/92,197,894; Fixed Deposits 3,270,293,495/3,683,332,798.
NOTES FORMING PART OF FINANCIAL STATEMENTS
NOTE NO.1: GENERAL FUND — Balance as per last Accounts 3,528,660,115/3,898,048,503; Less-Transferred to Members Benevolent Fund 50,000,000/-; Add: Entrance Fees (Member) 3,473,329/2,671,708; Add: Surplus for the year 415,915,059/333,188,808; Closing balance 3,898,048,503/4,233,909,019.
NOTE NO. 2: EMPLOYEES' GRATUITY FUND — Balance as per last Account 1,270,179/1,296,391; Add: Contribution for the year -/129,573; Add: Interest earned on Fixed Deposit during the year 26,212/622,391; Less: Transferred to gratuity fund during the year -/(191,127); Closing balance 1,296,391/2,239,482.
NOTE NO. 3: MISCELLANEOUS PRIZE FUND — Balance as per Previous Balance Sheet 11,935,319/12,419,397; Add: Addition during the year 50,532/43,833; Add: Income credited during the year 500,721/568,023; Less: Cost of the prize (67,175)/(150,555); Closing balance 12,419,397/12,880,698.
NOTE NO. 4: OTHER FUND — Building Fund 3,648,862/4,198,087; Library Fund 1,037,929/4,497,251; Miscellaneous Fund 45,671,670/41,846,340; Total 50,358,461/50,541,678.
NOTE NO. 5: CURRENT LIABILITIES — Library Deposit 1,647,884/1,151,900; Trade Payables 63,862,927/278,321,933; Current Account with Regional Councils and Chapters 204,109,425/321,852,550; Other Liabilities 330,514,277/155,588,257; Payable to Members Benevolent Fund 50,067,500/12,564,269; TDS Payable 10,195,663/8,952,455; Total 660,397,676/778,431,364.
NOTE NO. 6: PROVISIONS — 18,193,871/17,256,939.
NOTE NO. 7: PROPERTY, PLANT AND EQUIPMENT & INTANGIBLE ASSETS — Freehold Land: Net Block as at 31.03.2023: 198,565,488; Leasehold Land: 53,966,488; Freehold Building: 302,076,069; Furniture & Fittings: 39,049,541; Library Books: 471,502; Office Equipments: 30,200,156; Generators: 4,656,398; Lift: 4,151,651; Motor Car: 40,154; Computer: 5,424,828; Cycle: 0; Total A (Property, Plant & Equipment): Gross block 1,309,488,781, Depreciation upto 690,707,689, Net block 618,781,092. Intangible Assets - Software: Net block 698,180 (Total B). Grand Total Net Block: 619,479,272 (P.Y.)/639,479,561 (wait: 618,781,092+698,180). Capital-Work in Progress: 61,647,997/151,849,719.
NOTE NO. 8: INVESTMENTS (AT COST, UNQUOTED) — Shares of Co-operative Trust: 50 shares of Rs.10/- each in Rohit Chambers Premises Co-operative Society Limited (earlier Jai Brindaban Premises Trust Fund, Bombay): 500. Investment in Insolvency Professional Agency of ICAI (1,10,00,000 shares of Rs.10 each): 110,000,000. Investment in ICMA-Registered Valuers Organisation (1,10,000 shares of Rs.10 each): 1,100,000. Others: 50,647. Total: 111,151,147.
NOTE NO. 9: INVENTORIES — Publication Stock 2,131,267/2,657,387; Study Material incl. Prospectus Stock 2,519,016/3,056,760; Stock of Other Material 1,890,888/1,854,334; Total 6,541,171/7,568,481.
NOTE NO. 10: TRADE AND OTHER RECEIVABLES (unsecured, considered good) — Trade Receivable 25,830,381/26,049,317; Other Receivables 120,731,860/149,480,061; Total 146,562,241/175,529,378.
NOTE NO. 11: CASH AND CASH EQUIVALENTS — Cash in hand 1,236,250/1,204,785; Balances with Scheduled Banks: On Current Account 241,208,610/200,681,972; On Savings Account 110,758,360/92,197,894; Fixed Deposits with Banks 3,270,293,495/3,683,332,798; Total 3,623,496,715/3,977,417,448.
NOTE NO.12: LOANS AND ADVANCES (unsecured, considered good) — Other Advances 14,494,099/18,242,591; Festival Advance to Employees 434,903/629,225; TDS Receivable 28,600,815/21,364,841; Prepaid Expenses 1,699,384/1,424,264; Deposit 6,606,266/10,602,814; Total 51,835,467/52,263,735.
NOTE NO.13: MEMBERSHIP AND OTHER FEES — Annual Membership Fees 42,611,984/40,944,868; Members Certificate of Practice Fees 8,934,180/9,046,075; Members Complaint/Restoration Fees/Nomination Fees 34,500/672,934; Membership & Certification Fees-IMA(USA) 248,636/1,159,150; Certificate of Good Standing 46,387/36,313; Total 51,875,687/51,859,340.
NOTE NO.14: TUITION AND OTHER FEES — Student Registration Fees 24,962,200/36,324,900; Practical Training Registration Fees 2,548,750/5,605,500; Practical Training/Subject Exemption Fees 16,110,000/7,253,300; Tuition Fees 1,214,006,134/1,119,336,310; CAT Course Income 55,115,220/52,595,256; Revalidation of Coaching Completion Certificates Fees 2,234,040/4,892,200; Sale of Prospectus 2,547,893/5,440,671; Sale of Study Notes 362,715/3,727,934; Total 1,317,886,952/1,235,176,071.
NOTE NO.15: EXAMINATION AND OTHER FEES — Examination Fees 181,028,921/302,528,692; Verification of Answers Paper Fees 2,441,450/6,157,000; Total 183,470,371/308,685,692.
NOTE NO.16: ESTABLISHMENT EXPENSES — Salaries and Allowances 263,865,987/300,503,987; Employer's Cont. to Employees' Gratuity Fund 5,222,872/13,437,010; Employer's Cont. to Employees' Provident Fund 23,191,309/26,286,122; Employer's Cont. to Employees' Benevolent Fund 1,692/46,075; Employer's Cont. to Employees' Leave Encashment 4,614,778/15,043,620; Employees' Leave Encashment-Existing 2,672,212/898,378; Medical Expenses 7,357,032/8,432,367; Leave Travel Allowance to Employees 601,693/2,863,485; RPFC Administration and E.D.L.I. Inspection Charges 1,643,425/1,437,228; Training and Development (H.R.D.) 307,981/567,034; Total 309,478,981/369,515,306.
NOTE NO.17: OFFICE EXPENSES — Printing & Stationery 5,916,138/8,203,332; Postage,Telegrams,Telephones and Fax 6,064,355/7,967,164; Internal Audit Fees 1,849,910/1,880,720; Electricity Charges 7,773,294/10,523,080; Generator Expenses 309,757/280,487; Rates and Taxes 2,865,168/10,323,935; Insurance 320,933/451,108; Repair and Maintenance 14,049,949/11,311,762; Car Expenses 1,041,444/1,357,064; Interest on Caution Money Deposit 8,530/7,820; Legal Charges 9,895,898/8,780,220; Bank Charges 563,268/735,187; Computer Maintenance Expenses 5,707,808/6,669,924; Public Relation Expenses 2,107,604/2,512,558; Watch and Ward Expenses 3,305,567/3,644,220; Books and Periodicals 446,685/566,718; Delegate Fee 54,979/234,069; Gazette Notification 180,000/234,000; Staff Welfare 1,747,931/1,999,517; Rent 8,060,329/7,383,947; Administrative Charges 49,142,746/65,683,430; Sundry Expenses 5,319,158/7,390,977; Total 126,731,451/158,141,238.
NOTE NO.18: EXAMINATION EXPENSES — Examination Expenses 11,066,016/192,392,183; Examiners' Remuneration 38,375,930/78,244,190; Examination Center Expenses 246,666,852/29,944,026; Examination Expenses for oral coaching Students 828,746/126,887; Prize & Prize Distribution Expenses 1,388,998/1,233,243; Total 298,326,542/301,940,529.
NOTE NO.19: CPD PROGRAMME EXPENSES AND TECHNICAL SKILL — CPD Expenses 161,847/10,294,371; Project Expenses -/-; National Award including Best Chapter Award 151,898/56,827; Regional Cost/National Convention Expenses 3,618,192/9,080,516; CPD Expenses-RC's/Chapters 5,401,208/17,651,068; Technical Skill Development 1,683,517/3,774,283; Total 11,016,662/40,857,065.
NOTE NO.19A: PRIOR PERIOD ADJUSTMENTS — Prior Period Income: HQ 123,930/435,594; WIRC -/(52,500); EIRC 327,026/-; NIRC 455,528/-; Chapters of WIRC 329,000/190,780; Chapters of SIRC 179,671/1,461,440; Chapters of EIRC -/543,888; Chapters of NIRC 62,163/1,066,500; Total(A) 1,477,318/3,645,702. Prior Period Expenses: HQ 9,483,394/8,078,804; WIRC 7,613,745/9,037; EIRC 3,100/72,270; NIRC 992,910/-; Chapters of WIRC 1,383,484/152,732; Chapters of SIRC 141,679/1,202,755; Chapters of EIRC 17,733/-; Chapters of NIRC 20,714/-; Total(B) 19,656,759/9,515,598. Prior Period Adjustments (Net)(A-B) 18,179,441/5,869,896.
SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS (Note 20)
A. Significant Accounting Policies: Basis for preparation of Financial Statements (Generally Accepted Accounting Principles, applicable Accounting Standards, Cost and Works Accountants Act 1959, historical cost convention, accrual basis); Basis of Consolidation (Head Quarter Kolkata, New Delhi Office, Regional Councils and Chapters consolidated line by line, intra-group balances/transactions eliminated); Use of Estimates; Revenue Recognition (Entrance Fees from Members credited to General Fund; Student Registration Fees recognized on enrollment; Annual Membership Fees recognized in year to which it pertains; Tuition Fees recognized on enrollment; Sale of Publications recognized on transfer; Examination Fees recognized for the concerned term; Programme Fees recognized when activity undertaken; Interest recognized on accrual basis; Investment Income recognized when right to receive established); Expenditure (recognized on accrual basis, except Annual Grants to Chapters recognized when disbursed, and Election expenses recognized in year incurred); Property, Plant and Equipment (stated at cost less accumulated depreciation, net of impairment); Intangible Assets (computer software, carried at cost less accumulated amortization); Capital Work in Progress; Depreciation/Amortization (Written Down Value Method at rates prescribed under Income Tax Act, 1961; Leasehold land amortized on straight line basis over lease period; Library books depreciated at 40% in year of purchase); Investments (stated at cost, permanent decline recognized); Inventories (Publication stock, Study Materials, Paper Stock valued at lower of cost or net realizable value; Weighted Average basis for publications/study materials, FIFO for paper); Provisions, Contingent Liabilities and Contingent Assets (as per applicable accounting standard criteria); Foreign Currency Transactions (denominated at exchange rate prevailing on transaction date; monetary items at closing rate); Employee Benefits (short-term benefit recognized as expense when claimed; post-employment benefits — Provident Fund, Gratuity, Leave Encashment — provided for); Impairment of Assets; Taxes on Income (Institute exempt from Income Tax under section 12A read with section 11 of the Income Tax Act, 1961; no provision for income tax or deferred tax made); Prior Period income/expenditure (separately disclosed).
B. NOTES TO ACCOUNTS
1. Basis of Consolidation: The consolidated financial statements of the Institute are prepared considering Head Quarter Kolkata, New Delhi Office, four Regional Councils and eighty-five Chapters. Of which the financial statements of one Regional Council namely NIRC and two Chapters namely Bharuch-Ankleshwar and Indore-Dewas are unaudited. Financial statements of twenty-eight Chapters (Jabalpur, Mangalore, Agartala, Kutch-Gandhidham, Warangal, Bokaro Steel City, Chandigarh-Panchkula, Raipur, Sathavahana, Jajpur-Keonjhar, Dehradun, Vindhyanagar, Jamshedpur, Faridabad, Singrauli, Kharagpur, Ghaziabad, Naihati-Ichapur, Patna, Rajpur, Sambalpur, Kota, Serampore, Patiala, Balasore, Karnal-Panipet, Muzaffarpur and Shimla) are not included in consolidated financial statements during current year, having not been received. Rewari Chapter was constituted on 13th February, 2023 vide notification number G/82(136)/02/2023, with no accounts transactions till 31st March, 2023.
2. With respect to Head Quarter — contingent liabilities and items including: (i) Service Tax demand of Rs. 5,01,68,756/- plus interest penalty of Rs. 5,01,68,756/- under Finance Act 1994 r/w CGST Act 2017, against which Rs.37,62,657/- (7.5% of demand) paid and shown under Loans and Advances, appeal filed and pending adjudication; (ii) unutilized medical reimbursement balance Rs. 23,30,216/- as on 31.3.2023 (accumulable for 4 years); (b) Income Tax exemption under Section 12A r/w Section 11; (c) Fixed Deposits of Rs. 3,68,33,32,798/- include Rs. 60,24,021/- for Misc. prize and other fund; (d) Other Advances include Rs. 1,36,097/- due from former Council Member owing to MCA disallowances, sub-judice; (f) Statutory Audit Fees (incl. GST) Rs. 5,86,869/-; (j) Construction of Navi Mumbai Centre of Excellence building at Belapur on CIDCO leasehold plot: tender awarded to Gulraj Construction Pvt Ltd in 2013, construction stopped in 2015 (ground+3 floors completed); Gulraj Construction filed claim before Arbitrator, Bombay for Rs.4,70,40,914/-; Arbitral award of Rs. 81,48,937/- + 18% p.a. interest from 7th May 2021 passed 7th April 2021, appeal filed by Institute before Bombay High Court, matter pending; Rs 81,48,937/- provided under "Liabilities for Expenses" for FY 2022-23; (k) AON Consulting Pvt Ltd engaged for online examination of December 2022 term; 338th Examination Committee (14 Jan 2023) noted material breach of contract, withheld payment of Rs. 13,99,40,122/- (incl. GST), fully provided for; (l) TCS-ION engaged for online Intermediate and Final Examination December 2021 term; 334th Council (22 Jan 2022) and 335th Examination Committee (7 March 2022) noted unsatisfactory service; 50% of billed amount (Rs. 10,26,59,280/- excl. GST withheld) paid, TCS-ION served legal notice dated 15 March 2023 demanding Rs. 12,52,44,320/-, fully provided for; (m) 336th Council meeting (20 May 2022) approved transfer of Rs 5,00,00,000/- to Members Benevolent Fund from FY 2021-22 surplus; (n) Investments not held in name of Institute: 6 shares of Rs.10/- each in Insolvency Professional Agency of ICAI, and 1 share of Rs. 10/- in ICMAI Registered Valuers Organisation, held in nominees' names; (o) Rs. 36,35,000 released in FY 2020-21 lying as "Advance for Pune Building" pending land transfer; (p) No amount payable to Micro/Small Enterprises under MSMED Act 2006; (q) Year-end balances of trade receivables/payables/loans/advances subject to confirmation.
3. WIRC: (a) accounts receivable/loans/advances/current liabilities subject to confirmation; (b) Claims receivable from FDAPL of Rs 63,00,000/- considered fully recoverable; (c) provisions for recoverable Rs 4,20,707/- to be written back subject to AGM approval; (d) Group Gratuity Scheme with LIC, actuarial valuation pending, Rs. 19,29,213/- paid to retiring staff Mr. D.G. Vanjari during the year.
4. EIRC: (a) rent agreement with SBI, Harish Mukherjee Road branch (1 April 2019-31 March 2024); rent collected @Rs.1,60,000/- p.m. for April 2021-Aug 2021 only, none raised/collected Sept 2021-March 2023 per Secretary's letter terming the agreement "void ab initio"; letter dated 7 July 2022 to vacate premises, no response from SBI; (b) prior period expenses debited: Car Hire Charges and TA, DA Council Member Rs. 72,270/-; (c) Sundry Creditors Rs. 8,109/- unclaimed, written back; (d) Liability for PF contribution Rs. 56,672/- outstanding >10 years, written back; (e) Liabilities for Expenses Rs.74,28,099/- unidentified >10 years, written back; (f) Investor Awareness Programme Rs. 28,450/- unidentified >10 years, written back; (g) Govt. Scholarship Rs. 1,66,251/- unidentified/unclaimed >10 years, written back; (h) Earnest Money Deposit Rs.3,32,335/- unidentified/unclaimed >10 years, written back; (i) Contingent Liability - legal suit by ex-contractual employees against EIRC filed 2014, pending; (j) TDS Receivable balance Rs. 6,59,385/- as on 31 March 2023, to be reconciled with Income Tax Portal.
5. Necessary adjustment entries pertaining to Regional Councils and Chapters have been made at the time of consolidation of financial statements.
6. Previous year's figures have been regrouped and rearranged wherever necessary to conform to the current year's classification/disclosure.
Signatures to Notes 1 to 20: CMA Arnab Chakraborty (Director-Finance), CMA Kaushik Banerjee (Secretary), CMA Rakesh Bhalla (Vice President), CMA Vijender Sharma (President). Place: Kolkata, Date: 21st July, 2023
ANNEXURE-I (Refer Note 1 of Notes to Accounts)
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
STATUS OF RECEIPT OF ANNUAL ACCOUNTS FOR THE F.Y. 2022-23
WESTERN REGION: Western India Regional Council; Ahmedabad, Aurangabad, Baroda, Bhilai, Bhopal, Bilaspur, Goa, Indore-Dewas, Jabalpur#, Kalyan-Ambarnath, Kolhapur-Sangli, Kutch-Gandhidham#, Nagpur, Nasik-Ojhar, Navi Mumbai, Pimpri–Chinchwad–Akurdi, Pune, Raipur#, Surat-South Gujarat, Vapi-Daman-Silvassa, Vindhyanagar#, Solapur, Bharuch Ankleshwar, Singrauli# Chapters of ICMAI.
SOUTHERN REGION: Southern India Regional Council; Bangalore, Cochin, Coimbatore, Erode, Godavari, Hyderabad, Kottayam, Madurai, Mangalore#, Mettur-Salem, Mysore, Nellai-Pearl City, Nellore, Neyvelli, Palakkad, Pondicherry, Ranipet-Vellore, Thrissur, Tiruchirapalli, Trivandrum, Ukkunagaram, Vijayawada, Visakhapatnam, Hosur, Kozhikode Malappuram, Warangal#, Sathavahana#, Tirupati, Dindigul Chapters of ICMAI.
EASTERN REGION: Eastern India Regional Council; Agartala#, Asansol, Bokaro Steel City#, Bhubaneswar, Cuttack Jagatsinghpur Kendrapara, Dhanbad-Sindri, Durgapur, Guwahati, Hazaribag, Howrah, Jajpur-Keonjhar#, Jamshedpur#, Kharagpur#, Naihati-Ichapur#, Patna#, Rajpur#, Ranchi, Rourkela, Sambalpur#, Serampore#, Siliguri-Gangtok, South Orissa, Talcher-Angul, Dhuliajan, Chandrapura, Bankura, Balasore#, Patna Sheb, Muzaffarpur# Chapters of ICMAI.
NORTHERN REGION: Northern India Regional Council; Agra-Mathura, Ajmer-Bhilwara, Allahabad, Chandigarh-Panchkula#, Dehradun#, Faridabad#, Ghaziabad#, Gorakhpur, Gurgaon, Hardwar-Rishikesh, Jaipur, Jalandhar, Jammu, Jhansi, Jodhpur, Kanpur, Kota#, Lucknow, Ludhina, Naya Nangal, Noida, Patiala#, Udaipur, Bikaner Jhunjhunu, Karnal Panipet#, Sonipet, Srinagar, Meerut, Saharanpur, Bewar, Shimla#, Riwari Chapters of ICMAI.
(# = Not included during current year, as the finance statements have not been received)
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