AUDITOR’S REPORT
1. We have audited the attached Balance Sheet of The Institute of Chartered Accountants of India as at
31st March, 2008 and also the annexed Income and Expenditure Account and the Cash Flow Statement
for the year ended on that date. The accounts of the Institute’s Decentralized Offices, Computer
Centers, Regional Councils and their Branches audited by other auditors and that their reports have
been incorporated and duly considered while preparing our report. These financial statements are the
responsibility of the management of the Institute. 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 examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also 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 our audit provides a
reasonable basis for our opinion.
3. We further report that :-
a) We have obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit;
b) The Balance Sheet, Income & Expenditure Account and Cash Flow Statement dealt with
by this report are in agreement with the books of account;
c) In our opinion, proper books of account are maintained in conformity with the
requirements of the Chartered Accountants Act, 1949;
d) In our opinion the Balance Sheet, Income & Expenditure Account and Cash Flow
Statement comply with relevant Accounting Standards.
e) 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 in conformity with
the Accounting Principles generally accepted in India:
i) In the case of Balance Sheet, of the state of the Institute’s affairs, as at 31st March,
2008;
ii) In the case of Income & Expenditure Account, of the surplus for the year ended on
that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the year ended on that
date.
CA. PRAMOD JAIN CA. GURMEET S. GREWAL
CHARTERED ACCOUNTANT CHARTERED ACCOUNTANT
MEMBERSHIP NUMBER-90358 MEMBERSHIP NUMBER-82918
Place : New Delhi
Date :
Rs. in lacs
Amount Amount
As At As At
Schedule 31.03.2008 31.03.2007
SOURCES OF FUNDS:
Reserves and Surplus I 17650.62 13427.49
Earmarked Funds II 6968.39 5294.53
TOTAL 24619.01 18722.02
APPLICATION OF FUNDS:
Fixed Assets:
Gross Block III 12325.29 10676.96
Less: Depreciation and Amortisation 4247.17 3554.08
Net Block 8078.12 7122.88
Capital Work in progress (including capital advances) 1888.06 414.05
Investments: IV
Earmarked Fund Investments 6968.39 5294.53
Employee Benefit Investments 9322.86 6652.25
Other Investments 1631.58 17922.83 1684.30 13631.08
Current Assets, Loans & Advances :
Inventories V 718.52 385.48
Cash & Bank Balances VI 1387.13 1513.37
Loans & Advances VII 1647.58 1410.07
Interest Accrured on Investments 2113.91 1249.35
Sub - Total 5867.14 4558.27
Less: Current Liabilities & Provisions
Current Liabilities VIII 7422.03 5173.09
Provision for Employee Benefits 1715.11 1831.17
Sub - Total 9137.14 7004.26
Net Current Assets (Liabilities) (3270.00) (2445.99)
TOTAL 24619.01 18722.02
Statement of significant accounting policies XII
Notes forming part of Accounts. XIII
Schedules referred to above form an Integral Part of the Balance Sheet.
As per our Report of even date attached
Place : New Delhi
Date:
MEMBERSHIP NUMBER- 90358 MEMBERSHIP NUMBER- 82918
CA. PRAMOD JAIN CA. GURMEET S GREWAL
CHARTERED ACCOUNTANT CHARTERED ACCOUNTANT
SANJAY KUMAR GARG CA. ASHOK HALDIA CA. UTTAM PRAKASH AGARWAL CA. VED KUMAR JAIN
JOINT SECRETARY SECRETARY VICE PRESIDENT PRESIDENT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
BALANCE SHEET AS AT MARCH 31, 2008
Amount Amount
Year ended Year ended
Schedule 3/31/2008 3/31/2007
INCOME
Fees IX 13566.60 11425.33
Seminars 1634.12 1179.32
Other Income X 3257.00 2059.16
Prior Period Income 9.88 14.22
TOTAL 18467.60 14678.03
EXPENDITURE
Salaries & Allowances 2201.45 2095.93
Printing & Stationery 2777.57 2161.20
Seminar Expenses 1684.78 1075.85
Other Operating Expenses XI 5728.55 4885.30
Election Expenses - 193.14
Depreciation and Amortisation 706.81 616.00
Prior Period Expenses 24.00 21.71
TOTAL 13123.16 11049.13
NET SURPLUS 5344.44 3628.90
Appropriation to Funds / Reserves :
Education Fund [Policy No. III (c) ] XII 1738.50 1491.66
Employees Benevolent Fund [Policy No.III ( d )] XII 10.83 10.58
General Reserve 3595.11 2126.66
TOTAL 5344.44 3628.90
Statement of significant accounting policies XII
Notes forming part of Accounts. XIII
Schedules referred to above form an Integral Part of the Income and Expenditure Account
SANJAY KUMAR GARG CA. ASHOK HALDIA CA. UTTAM PRAKASH AGARWAL CA. VED KUMAR JAIN
JOINT SECRETARY SECRETARY VICE PRESIDENT PRESIDENT
CA. PRAMOD JAIN CA. GURMEET S GREWAL
CHARTERED ACCOUNTANT
MEMBERSHIP NUMBER-90358 MEMBERSHIP NUMBER-82918
Place: New Delhi
Date :
As per our Report of even date attached
CHARTERED ACCOUNTANT
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31.03.2008
Rs.in lacs
A.Cash flows from operating activities
Net Surplus 5344.44 3628.90
Adjustments for:
Depreciation and Amortisation 706.81 616.00
Interest on investments (1085.69) (666.73)
----------------------(378.88) ----------------------(50.73)
Operating surplus before working capital changes 4965.56 3578.17
(Increase)/Decrease in Inventories (333.04) (113.59)
(Increase)/Decrease in Interest accrued on Investments (864.56) (500.98)
(Increase)/Decrease in Loans & advances (237.51) (135.31)
Increase/(Decrease) in Current Liabilities 2248.94 1084.87
Increase/(Decrease) in Provision of Employee Benefits (116.06) 172.83
---------------------- 697.77 ---------------------- 507.82
Net cash from operating activities 5663.33 4085.99
B.Cash flows from investing activities
Acquisition of Fixed Assets including Capital Work in Progress (Net) (3136.06) (1345.69)
Acquisition of Investments (4291.75) (3133.16)
Interest on investments 1085.69 666.73
Income from Earmarked Funds Investments (Net of payments) 466.11 293.22
Transitional Provision (295.13) (118.76)
Capital Receipts 381.57 312.39
Net Cash from Investing Activities --------------------(-5-789.57) -------------------(-3--325.27)
Net Increase/Decrease in cash and cash equivalents (126.24) 760.72
Cash and Cash equivalents at the beginning of year 1513.37 752.65
Cash and Cash equivalents at the end of year-Refer Schedule No-
VI 1387.13 1513.37
Note:
2.Enclosed Schedules I to XIII form an Integral Part of the Cashflow Statement
SANJAY KUMAR GARG CA. ASHOK HALDIA CA. UTTAM PRAKASH AGARWAL CA. VED KUMAR JAIN
JOIINT SECRETARY SECRETARY VICE PRESIDENT PRESIDENT
As per our Report of even date attached
CA. PRAMOD JAIN CA. GURMEET S GREWAL
CHARTERED ACCOUNTANT
MEMBERSHIP NUMBER-90358 MEMBERSHIP NUMBER-82918
Place: New Delhi
Date :
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
CHARTERED ACCOUNTANT
1.The above Cash Flow Statement has been derived using the Indirect method prescribed in AS-3 issued by
ICAI.
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2008
(Amount Rupees in Lacs)
2007-2008 2006-2007
SCHEDULE I
RESERVES AND SURPLUS
3/31/2008 31/03/2007 3/31/2008 31/03/2007 3/31/2008 31/03/2007 3/31/2008 31/03/2007 3/31/2008 31/03/2007
Opening Balance 5529.35 4866.09 1465.90 1311.86 6275.81 4428.33 156.43 125.50 13427.49 10731.78
Appropraition from Income & Expenditure A/C - - - - 3595.11 2126.66 - - 3595.11 2126.66
Transitional Provision - - - - (295.13) (118.76) - - (295.13) (118.76)
Transfer from/(to) General
Reserve,Infrastructure Reserve and Other
Reserves
- - 35.49 21.30 (71.55) (53.02) 36.06 31.72 - -
Transfers from/(to) Earmarked Funds 824.17 663.26 30.39 - (68.77) (107.40) (0.06) (0.39) 785.73 555.47
Admission Fees & allocated Entrance Fees - - 21.18 24.77 - - - - 21.18 24.77
Donation received for Buildings - - 110.88 107.97 - - - - 110.88 107.97
Net (Depletion)/Addtitions - - - - - - 5.36 (0.40) 5.36 (0.40)
Total 6353.52 5529.35 1663.84 1465.90 9435.47 6275.81 197.79 156.43 17650.62 13427.49
*Note:The nomenclature of Capital Reserve -Education and Capital Reserve -General have been changed into Education Reserve and Infrastructure Reserve during the Current Year.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
TOTAL
EDUCATION* INFRASTRUCTURE* GENERAL OTHERS **
**Note:Other Reserves are Reserves such as Library Reserves and Coaching Classes Reserves as appearing in the books of Regional Councils and Branches
Amount As At Amount As At Amount As At Amount As At
Rs.In.lacs
Amount As At
SCHEDULE II
EARMARKED FUNDS
01.04.2007 1.4.2006 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 31.03.2008 31.03.2007
RESEARCH FUNDS 730.99 574.85 - - - 1.72 177.66 106.14 72.66 48.28 - - - - 981.31 730.99
ACCOUNTING RESEARCH
BUILDING FUND 325.77 300.50 - - - - - - 32.49 25.27 - - - - 358.26 325.77
EDUCATION FUND 3413.78 2384.82 1738.50 1491.66 (824.17) (663.26) - - 340.51 200.56 - - - - 4668.62 3413.78
MEDALS AND PRIZES FUNDS 126.64 103.69 - - - 1.23 5.40 17.75 11.03 7.03 (5.75) (2.68) (0.25) (0.38) 137.07 126.64
STUDENTS SCHOLARSHIP
FUNDS 38.46 35.96 - - - - 0.55 0.25 3.84 3.02 (0.94) (0.77) - - 41.91 38.46
EMPLOYEES BENEVOLENT
FUND 106.82 89.93 10.83 10.58 - - - - 10.65 7.56 (7.85) (1.25) - - 120.45 106.82
OTHER FUNDS(REGIONAL
COUNCILS AND BRANCHES ) 552.07 384.74 - - 38.44 104.84 60.54 55.91 22.04 19.88 (12.32) (13.30) - - 660.77 552.07
TOTAL 5294.53 3874.49 1749.33 1502.24 (785.73) (555.47) 244.15 180.05 493.22 311.60 (26.86) (18.00) (0.25) (0.38) 6968.39 5294.53
Rs In Lacs
THE INSTITUTE OF CHARTERED OF CHARTERED ACCOUNTANTS OF INDIA
Adjustments Total
Amount As At Amount As At
Transfer from/(to) Reserves and
Surplus
Contribution received/Addition
during the year Income during the year Payments during the year
Amount As At Amount As At Amount As At Amount As At Amount As At
Opening Balance
Amount As At
Appropriation from Income &
Expenditure A/c
SCHEDULE III
FIXED ASSETS
Rs in lacs
ASSETS Cost as at Additions Adjustments Cost as at Upto Adjustments Upto W.D.V W.D.V
1.4.2007 during /Transfers 31.3.2008 1.4.2007 For Transfers/ 31.3.2008 as on as on
the year / Sale the year /Sale 31.3.2008 31.3.2007
A.Tangible Assets:
1.Land - Free Hold 591.90 98.04 - 689.94 - - - - 689.94 591.90
2.Land -Lease Hold 3160.51 21.30 - 3181.81 99.28 39.52 - 138.80 3043.01 3061.23
3.Buildings 2402.15 428.79 (0.87) 2830.07 594.22 94.40 (0.18) 688.44 2141.63 1807.93
4.Electric Installations & Fittings 313.19 55.06 (1.42) 366.83 131.43 19.99 (0.66) 150.76 216.07 181.76
5.Computers 1480.11 583.92 (3.30) 2060.73 1186.18 285.04 (1.88) 1469.34 591.39 293.93
6.Air Conditioners 422.95 54.24 (4.53) 472.66 174.79 39.69 (4.01) 210.47 262.19 248.16
7.Furniture & Fixtures 873.54 240.60 (7.92) 1106.22 325.29 65.43 (4.85) 385.87 720.35 548.25
8.Lifts 101.65 6.75 - 108.40 43.52 5.98 - 49.50 58.90 58.13
9.Office Equipments 435.87 121.36 (2.91) 554.32 240.26 39.05 (2.10) 277.21 277.11 195.61
10.Vehicles 47.24 1.07 (2.51) 45.80 23.75 4.31 (0.04) 28.02 17.78 23.49
11.Library Books 397.43 44.14 - 441.57 397.43 44.14 - 441.57 - -
B.Intangible Asset:
Software 450.42 16.52 - 466.94 337.93 69.26 - 407.19 59.75 112.49
TOTAL 10676.96 1671.79 (23.46) 12325.29 3554.08 706.81 (13.72) 4247.17 8078.12 7122.88
Previous Year Figures 9350.45 1357.33 (30.82) 10676.96 2963.39 616.00 (25.31) 3554.08 7122.88 -
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
G R O S S B L O C K DEPRECIATION AND AMORTISATION N E T B L O C K
SCHEDULE IV
INVESTMENTS
Amount Amount
As At As At
31/03/2008 31/03/2007
A.LONG TERM INVESTMENTS (AT COST)
Bonds
(I) Government of India-8% (taxable)Bonds-2003 4750.00 4750.00
Others
(II) Fixed Deposits with scheduled Banks 4991.37 1802.00
B.CURRENT INVESTMENTS
Others
Fixed Deposits with scheduled Banks 8181.46 7079.08
Total Investments 17922.83 13631.08
ALLOCATED TO:-
Earmarked Fund Investments 6968.39 5294.53
Employee Benefit Investments 1631.58 1684.30
Other Investments 9322.86 6652.25
Total 17922.83 13631.08
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
Rs in lacs
SCHEDULE V
Amount Amount
As At As At
3 1 . 0 3 . 2 0S0c8hedule 31.03.2007
Publications and Study Materials 689.14 335.86
Paper for Study Materials & Publications 2.34 20.79
Consumables Stores 27.04 28.83
Total 718.52 385.48
SCHEDULE VI
Amount Amount
As At As At
31.03.2008 31.03.2007
Cash in Hand 9.64 9.64
Cash at Bank 1377.49 1503.73
Total 1387.13 1513.37
Rs.in lacs
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
INVENTORIES
Rs.in lacs
CASH AND BANK BALANCES
SCHEDULE VII
Amount Amount
As At As At
3 1 . 0 3 . 2 0S0c8hedule 31.03.2007
Loans and Advances-Staff 251.51 243.99
Interest Recoverable from Staff Loans 105.47 97.94
Security Deposits 64.16 32.73
ICAI Accounting Research Foundation 565.20 599.78
Accounts Receivables 231.26 202.73
Other - Advances & Pre-payments 429.98 232.90
Total 1647.58 1410.07
SCHEDULE VIII
Amount Amount
As At As At
3 1 . 0 3 . 2 0S0c8hedule 31.03.2007
Fees Received in Advance
Examination Fees 870.54 1312.17
Journal Subscripttion 73.80 49.98
Membership Fee 422.93 426.02
Distant Education Fee 3887.95 1779.52
Information System Audit Course Fee 98.92 95.70
Insurance and Risk Management Course 4.80 10.23
International Trade Laws & WTO Course 4.56 7.05
656.12 6019.62 106.17 3786.84
Creditors for Expenses 929.11 997.35
Other Liabilities 473.30 388.90
Total 7422.03 5173.09
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
Seminar Fees & Other Collections (Including
Information Technology Training)
Rs.in lacs
LOANS & ADVANCES (Considered Good)
CURRENT LIABILITIES
Rs.in lacs
SCHEDULE IX
Amount Amount
Year ended Year ended
Sc3h/3e1d/2u0le08 3/31/2007
Distant Education 6954.03 5966.64
Examination 3317.35 2739.92
Membership 1480.78 1425.07
Information System Audit Course 167.13 231.77
General Management and Communication Skills 314.17 428.91
Coaching Class Income 385.99 301.90
(Regional Councils and Branches )
Insurance and Risk Management Course 15.03 17.94
SAP Course 105.67 -
MS-NAV Course 4.30 -
Oracle Course 2.20 -
Students' Registration 427.76 171.57
CAAT Course 0.83 1.81
Entrance 7.65 10.50
International Trade Laws & WTO Course 11.61 13.30
Students' Association 372.10 116.00
Total 13566.60 11425.33
Rs.in lacs
FEES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
SCHEDULE X
Amount Amount
Year ended Year ended
Sc3h/3e1d/2u0le08 3/31/2007
Publications 554.15 567.03
Interest on Investments 1,085.69 666.73
Students' Newsletter 11.94 8.52
Income from Journal -- Subscripttion 159.53 179.82
News Letters 66.53 53.89
Computer Centres and Information Technology Training 376.63 49.12
Campus Interview 529.11 355.62
Expert Advisory Fee 9.59 5.25
Interest on Staff Loans 16.43 14.80
Provisions no longer required written back 18.13 1.37
Excess Pension Fund Provision Written Back 288.46 -
Others 140.81 157.01
Total 3257.00 2059.16
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
OTHER INCOME
Rs.in lacs
SCHEDULE XI
Amount Amount
Year ended Year ended
Sc3h/3e1d/2u0le08 3/31/2007
Postage ,Telephone & Telegrams 872.63 735.50
Rent Rates & Taxes 455.13 400.37
Travelling & Conveyance-Inland 669.66 622.37
Overseas Relations:
-Travelling 122.04 131.09
-Membership Fee of Foreign Professional Bodies 57.31 56.10
-Other Expenses 11.06 34.19
Repairs & Maintenance 508.66 498.79
Publications 208.98 264.29
Fees & Expenses to Examiners,Consultants and Others 1616.67 1115.21
General Management and Communication Skills 204.12 253.08
Coaching Class Expenses 172.18 164.75
(Regional Councils and Branches )
Advertisements 298.33 220.45
Office Meeting Expenses 82.93 48.97
Computer Centres and Information Technology Training 103.96 21.75
Merit Scholarship 15.00 6.75
Audit Fee
- Head Office 3.37 3.37
- Other Offices 9.07 8.96
Other Expenses 317.45 299.31
Total 5728.55 4885.30
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
OTHER OPERATING EXPENSES
Rs.in lacs
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
SCHEDULE XII
STATEMENT ON SIGNIFICANT ACCOUNTING POLICIES.
I ACCOUNTING CONVENTION
These accounts are drawn up on historical cost basis and have been prepared in
accordance with the applicable Accounting Standards issued by the Institute of Chartered
Accountants of India and are on accrual basis unless otherwise stated.
II REVENUE RECOGNITION
a. Membership Fee:-
(i) The Entrance Fee is collected at the time of admission of a person as a
member and one third thereof is recognized as income in that year.
(ii) Annual Membership and Certificate of Practice Fee(s) are recognized in the
year as and when these become due.
b. Distant Education and Post Qualification Course Fee are recognized over the
duration of the course.
c. Examination Fee is recognized on the basis of conduct of examinations.
d. Subscripttion for Journal is recognized in the year as and when it becomes due.
e. Revenue from Sale of Publication is recognized at the time of preparing the sale
bill.
f. Income from Investments
i Dividend on investments in units is recognized as income on the basis of
entitlement to receive.
ii. Income on Interest bearing securities and fixed deposits is recognized on a
time proportion basis taking into account the amount outstanding and the rate
applicable.
III ALLOCATIONS/TRANSFER TO RESERVES & SURPLUS AND EARMARKED FUND
a. Admission Fee from Fellow Members and 2/3rd portion of the Entrance Fee from
persons admitted as Members are taken to Infrastructure Reserve.
b. Donations received during the year for buildings and for Research purpose are
accounted for directly under the respective Reserves Account.
c. 25% of the Distant Education Fee not exceeding 50% of the net surplus of the year
is transferred to Education fund.
d. 0.75% of Membership Fee (Associate and Fellow and Certificate of Practice Fee)
received from the members during the year is allocated to the Employees’
Benevolent Fund.
e. Transfer to Education Reserve from the following earmarked funds:-
i. From Accounting Research 100% of the cost of Fixed Assets
Building Fund. relating to Accounting Research Building
Fund.
ii. From Education Fund 50% of the cost of additions (net of
deductions) to other Fixed Assets.
f. Income from investments of Earmarked Funds is allocated directly to Earmarked
Funds on opening balances of the respective Earmarked Funds on the basis of
weighted average method.
IV FIXED ASSETS/DEPRECIATION AND AMORTISATION
a. Fixed Assets excluding land are stated at historical cost less depreciation.
b. Free hold land is stated at cost. Leasehold land is stated at the amount of premium
paid for acquiring the lease rights. The premium so paid is amortized over the
period of the lease.
c. Depreciation is provided on the written down value method at the following rates
as approved by the Council based on the useful life of the respective assets :
Buildings 5%
Air conditioners & Office Equipments 15%
Lifts , Electrical Installations & Furniture & Fixtures 10%
Vehicles 20%
Computers 60%
d. Depreciation on additions is provided on monthly pro-rata basis.
e. Library Books are depreciated at the rate of 100% in the year of purchase.
f. Intangible Assets (Software) are amortized equally over a period of three years.
V INVESTMENTS
a. Long term Investments are carried at cost and diminution in value, other than
temporary is provided for.
b. Current investments are carried at lower of cost or fair value.
VI INVENTORIES
Inventories of paper, consumables, publications and study material are valued at lower of
cost or net realizable value. The cost is determined on FIFO Method.
VII FOREIGN CURRENCY TRANSACTIONS
a. Foreign currency transactions are recorded on initial recognition in the reporting
currency by applying to the foreign currency amount at the exchange rate
prevailing on the date of transaction.
b. All incomes and expenses are translated at average rate. All monetary
assets/liabilities are translated at the year end rates where as non-monetary assets
are carried at the rate on the date of transaction.
c. Any income or expense on account of exchange rate difference is recognized in the
Income and Expenditure Account.
VIII EMPLOYEE BENEFITS.
a. Short term employee benefits are charged off at the undiscounted amount in the
year in which the related service is rendered.
b. Post employment and other long term employee benefits are charged off in the
year in which the employee has rendered services. The amount charged off is
recognized at the present value of the amounts payable determined on the basis
of actuarial valuation. Actuarial gain and losses in respect of post employment and
other long term benefits are charged to Income & Expenditure Account.
c. Contributions to Provident Fund Trust maintained by the Institute are recognized
as expense.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
SCHEDULE XIII
NOTES FORMING PART OF THE ACCOUNTS
1. CONTINGENT LIABILITIES
1.1 Rs.35.42 Lacs towards disputed amount for Property/Building Tax in respect of building at
one location (Previous year Rs. 30.79 Lacs).
1.2 Rs. 84.44 Lacs in respect of claims (Previous year Rs. 83.24 Lacs) from various parties not
acknowledged as debt by the Institute.
2. OTHER NOTES
2.1 Estimated amount of capital commitments (net of advances) – Rs.4985.31 Lacs (Previous
Year Rs.951.39 Lacs).
2.2 Free hold Land includes Rs.6.17 lacs (Previous Year Rs.6.17 Lacs) relating to the land
purchased and acquired at New Delhi from Land and Development Authority for which
Registration is Pending.
2.3 Building includes Rs.8.77 Lacs (Previous Year Rs. 8.77 Lacs) being the cost of branch
building at Baroda, the Conveyance Deed of the branch premises is yet to be executed
since the branch has applied for concession in stamp duty.
2.4 Loans and Advances include Interest free advance for a sum of Rs.565.20 Lacs (Previous
year Rs.599.78 Lacs) to ICAI Accounting Research Foundation.
2.5 The disclosures required under Accounting Standards -15 (Revised) on “Employee
Benefits” issued by the Institute of Chartered Accountants of India are given below:-
Defined Contribution Plan
Contribution to defined contribution plan, recognized i.e. Employer’s Contribution to
Provident Fund is charged off for the year.
Defined Benefit Plan
The Employees Gratuity Fund Scheme managed by the Life Insurance Corporation of India
is a defined Benefit Plan. The Present Value of Obligation is determined on Actuarial
Valuation using the Projected Unit Credit Method to build up the final obligation. The
obligation for Leave Encashment and Pension is also recognized on the same basis as
Gratuity.
Transitional Provision
On the first day of adapting this statement i.e. 01/04/2007, the difference between the
transitional Liability and the Liability that would have been recognized at the same date,
as per the pre-revised Accounting Standards-15 is adjusted against opening balance of
General Reserves & Surplus amounting to Rs. 295.13 Lacs. Status of the defined
benefit plan as required by Revised Accounting Standards -15 is as follows.
Rupees in Lacs
Gratuity
(Funded)
Leave Encashment
(Un-Funded)
Pension
(Un-Funded)
2007-08 2006-07 2007-08 2006-07 2007-08 2006-07
Reconciliation of opening and
closing balances of Defined
Benefit obligation
Defined Benefit obligation at
beginning of the year 600.58 496.43 754.81 678.51 1,224.62 1,168.90
Current Service Cost 51.52 46.95 79.86 82.79 - -
Interest Cost 46.40 38.96 58.66 36.31 97.83 64.27
Actuarial (gain)/loss (14.32) (18.76) (146.04) (6.04) (467.24) (7.84)
Benefits paid (41.15) 37.00 (43.16) (36.76) (3.40) (0.71)
Defined Benefits obligation at
the year end 643.03 600.58 704.13 754.81 851.81 1,224.62
Reconciliation of opening and
closing balances of fair value
of plan assets
Fair value of plan assets at
beginning of the year 453.71 351.66 - - - -
Expected return on plan assets 44.66 34.56 - - - -
Actuarial gain/(loss) 3.04 2.80 - - - -
Employer contribution 82.39 83.31 - - - -
Benefits paid (24.31) (18.62) (43.15) (36.76) - -
Fair value of plan assets at the
year end 559.49 453.71 - - -
Reconciliation of fair value of
assets and obligations
Fair value of plan assets as at
31st March, 2008 559.49 453.71 - - - -
Present value of obligation as at
31st March,2008-Long Term 643.03 600.58 704.13 754.81 851.81 1,224.62
Present value of obligation as at
31st March,2008-Short Term
- - 75.64
- - -
Amount recognized in Balance
Sheet as at 31st March 2008 83.54 146.87 779.77 754.81 851.81 1,224.62
Expenses recognized during
the year
Current Service Cost 51.52 46.95 79.86 82.79 - -
Interest Cost 46.40 38.96 58.66 36.31 97.83 64.27
Expected return on plan assets (44.66) (34.56) - - - -
Actuarial (gain)/loss (17.36) 34.19 (146.04) (6.04) (467.24) (7.84)
Short Term Liabilities - - 75.64 - - -
Net Cost 35.90 85.54 68.12 113.06 (369.41) 56.43
Actuarial assumptions
Mortality Table LIC 1994-96
Ultimate
LIC 1994-96
Ultimate
LIC 1994-96
Ultimate
LIC 1994-96
Ultimate
LIC 1994-96
Ultimate
LIC 1994-96
Ultimate
Attrition Rate 05.00% p.a 05.00% p.a 05.00% p.a 05.00% p.a 05.00% p.a 05.00% p.a
Imputed Rate of Interest 08.00 % p.a 08.00 %
p.a 08.00 % p.a 05.50 % p.a 08.00 % p.a 05.50 %
p.a
Salary Rise
Basic:03:00
% p.a &
D.A.: 06:00
% p.a.
Basic:03:00
% p.a &
D.A.: 06:00
% p.a.
Basic:03:00
% p.a & D.A.:
06:00 % p.a.
Basic:03:00
% p.a & D.A.:
06:00 % p.a.
Basic:03:00
% p.a &
D.A.: 06:00
% p.a.
Basic:03:00
% p.a &
D.A.: 06:00
% p.a.
Return on Plan Assets 09.25 % p.a 09.00 %
p.a - - - -
Remaining Working Life 17.46 years 17.56 years 17.46 Years 17.56 Years 17.46
Years
17.56
Years
Investment details
100%
Invested in
LIC.
100%
Invested in
LIC.
779.77 * 557.98 * 851.81 * 1126.32 *
* Investments are maintained by the Institute.
2.6 Due to change in accounting estimates for Revenue recognition, the receipt of Distant
Education Fee from the students is lower by Rs.715.73 Lacs.
2.7 Exemption in respect of Income Tax has been granted under Section 10(23C) (iv) of the
Income Tax Act, 1961 up to the Assessment Year 2005-06. Application for renewal of
exemption thereof is under consideration of the tax authorities. The Institute is of firm
belief that the said exemption would be granted to it. Consequently, no provision for
Income Tax/Deferred Tax Asset, Liability, Fringe Benefit Tax is considered necessary.
2.8 Only directly attributable expenses on the activities of Publications and Seminars have
been charged to these heads of expenditure respectively and indirect expenditure on
these activities is charged to functional heads of expenditure.
2.9 Prior period Income includes the following:-
2007-08 2006-07
Rs. in Lacs Rs. in Lacs
Others 9.88 14.22
Prior period expenses include the following:-
Printing & Stationery ----- 3.62
Distant Education Fee ----- 7.03
Publication Expenses 0.30 ----
Examination Expenses 2.59 ----
Repairs & Maintenance 2.44 0.08
Travelling & Conveyance 1.23 ----
Salary & Allowances 1.03 ----
Others 16.41 10.98
Total 24.00 21.71
2.10 The Institute operates predominantly in India and in one business segment i.e.
furtherance of the profession of Chartered Accountancy.
2.11 Previous year figures have been re-grouped and re-classified wherever considered
necessary to make it comparable with those of current year.
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