WELCOME TO DIRECTORATE OF FINANCE

1
WELCOME TODIRECTORATE OF FINANCE ACCOUNTS

2
AGENDA ITEMS

• Finalization Consolidation of Regional Annual
  Accounts for the F.Y. 2011-12 and audit thereof
• Conduct of Internal Audit at all the Regional
  Councils and Chapters
• Formation of Finance Committee at all the
  Regions, A, B C Grade Chapters
• Preparation of Annual Budget on Capital Accounts
  and Revenue Account at the Regional Councils and
  A, B C Grade Chapters
• Improving the financial position of the Regions
  and Chapters.
• Other Items

3
FINALIZATION CONSOLIDATION OF REGIONS /
CHAPTERS ANNUAL ACCOUNTS FOR F.Y. 2011-12 AUDIT
THEREOF

• Main points for considerations
• As prescribed u/s 18 (5) of Company Secretaries
  Act, 1980 the Annual Accounts of the Institute
  are required to be prepared in such a manner as
  prescribed and subject to conduct of audit by a
  Chartered Accountant in practice.
• The Annual Accounts at Regional Councils/Chapters
  are to be drafted in uniformity with the
  Headquarters guidelines, formats with schedules
  including Accounting Policies and Notes to
  Accounts as communicated from time to time.
  (Refer Guidance Note 3 - Page 123 to 153 of
  printed guidelines booklet)
• All the Regional Councils / Chapters are required
  to ensure reconciliation of inter unit balances
  with HQ books of accounts as on 31st March, 2012.
  Communication from HQ vide letter dated
  19.11.2011 has been sent to all the Regions /
  Chapters.
• All Chapters to ensure submission of audited
  annual accounts with supporting schedules to the
  respective Regions with a copy to HQ by the
  scheduled date 30.04.2012.

4
FINALIZATION CONSOLIDATION OF ANNUAL ACCOUNTS
FOR F.Y. 2011-12 AUDIT THEREOF

• All the four Regions to finalize consolidation of
  their own audited annual accounts and the audited
  annual accounts of the Chapters falling under
  jurisdiction and conduct statutory audit thereof
• All the four Regions are required to ensure
  submission of consolidated audited accounts along
  with the schedules and column wise workings to
  the statutory auditors of the Institute, M/s
  Thakur, Vaidyanath Ayer Co. with a copy to
  Headquarters by 31.05.2012.
• For reference, as a feedback, Annual Accounts
  received at HQ from the Regions and Chapters
  during previous year 2010-11 is shown in next
  slide.

5
FINALIZATION CONSOLIDATION OF ANNUAL ACCOUNTS
FOR F.Y. 2011-12 AUDIT THEREOF
EIRC Region EIRC Region Due Date for submission (Regions) 31.05.2011 Due Date for submission (Chapters) 30.04.2011 Due Date for submission (Regions) 31.05.2011 Due Date for submission (Chapters) 30.04.2011
Total CHAPTERS Received Audited (A)/
    On Unaudited (UA)
1 EIRO (own) 8.6.11 A
2 Bhubaneshwar 30.5.11 A
3 Dhanbad 7.5.11 A
4 Hooghly 30.5.11 A
5 Jamshedpur 18.5.11 A
6 North-Eastern 30.5.11 A
7 Patna 2.5.11 A
8 Ranchi 25.5.11 A
6
FINALIZATION CONSOLIDATION OF ANNUAL ACCOUNTS
FOR F.Y. 2011-12 AUDIT THEREOF
NIRC Region NIRC Region
Total CHAPTER Received Audited /
  on Unaudited
1 NIRC (own) 10.5.11 A
2 Agra 11.5.11 A
3 Ajmer 6.5.11 A
4 Allahabad 21.4.11 A
5 Alwar 31.5.11 A
6 Amritsar 16.5.11 A
7 Bareilly 25.4.11 A
8 Bhilwara 4.5.11 A
9 Chandigarh 2.5.11 A
10 Dehradun 24.5.11 A
11 Faridabad 2.5.11 A
12 Ghaziabad 24.5.11 A
13 Gurgaon 30.5.11 A
14 Jaipur 2.5.11 A
15 Jalandhar 30.5.11 A
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FINALIZATION CONSOLIDATION OF ANNUAL ACCOUNTS
FOR F.Y. 2011-12 AUDIT THEREOF
NIRC Region NIRC Region
Total CHAPTER Received on Audited / Unaudited
16 Jammu 16.5.11 A
17 Jodhpur 4.5.11 A
18 Kanpur 7.6.11 A
19 Karnal-Panipat 19.4.11 A
20 Kota (Revised) 11.5.11 A
21 Lucknow 11.5.11 A
22 Ludhiana 4.5.11 A
23 Meerut 26.5.11 A
24 Modinagar 16.5.11 A
25 Noida 29.4.11 A
26 Shimla 16.5.11 A
27 Sonepat 11.5.11 A
28 Srinagar 9.5.11 A
29 Udaipur 15.4.11 A
30 Varanasi 10.5.11 A
31 Yamunanagar 27.4.11 A
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FINALIZATION CONSOLIDATION OF ANNUAL ACCOUNTS
FOR F.Y. 2011-12 AUDIT THEREOF
SIRC Region SIRC Region
Total CHAPTER Received on Audited / Unaudited
1 SIRC (own) 2.6.11 A
2 Bangalore 15.4.11 A
3 Calicut 23.5.11 A
4 Cochin (Kochi) 3.5.11 A
5 Coimbatore 13.5.11 A
6 Hyderabad 6.5.11 A
7 Madurai 13.5.11 A
8 Mangalore 3.5.11 A
9 Mysore (Revised) 16.5.11 A
10 Palakkad 13.5.11 A
11 Puducherry 13.5.11 A
12 Salem 16.5.11 A
13 Thiruvananthapuram 31.5.11 A
14 Thrissur 3.5.11 A
15 Tiruchirapalli 16.5.11 A
16 Visakhapatnam 27.4.11 A
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FINALIZATION CONSOLIDATION OF ANNUAL ACCOUNTS
FOR F.Y. 2011-12 AUDIT THEREOF
WIRC Region WIRC Region
Total CHAPTER Received on Audited / Unaudited
1 WIRC 30.6.11 A
2 Ahmedabad 8.7.11 A
3 Aurangabad 7.6.11 A
4 Bhopal 23.5.11 A
5 Dombivli Not received --
6 Goa 27.5.11 A
7 Indore 22.6.11 A
8 Kolhapur 22.6.11 A
9 Nagpur 7.5.11 A
10 Nasik 16.5.11 A
11 Navi Mumbai 10.6.11 A
12 Pune 2.5.11 A
13 Raipur 3.6.11 A
14 Rajkot 17.6.11 A
15 Surat 15.6.11 A
16 Thane 18.5.11 A
17 Vadodara 3.6.11 A
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General Points for Inter Unit Reconciliation

• Stock of HQ Publications should not be taken into
  the Books of Chapter
• Purchase Sale of HQ Publications should not be
  taken into Books of Chapter
• On sale of publication, cash/bank should be
  debited and HQ A/c should be credited in the
  Books of Chapter and while remitting the sale
  proceeds to HQ, the HQ A/c should be debited and
  cash/ bank A/c should be credited
• Grants Commission should be taken in Books of
  Chapter on cash basis and therefore should not be
  shown as dues from HQ
• Expenses incurred on behalf of HQ or recoverable
  from HQ should only be shown as dues from HQ in
  Chapter Books
• TDS recoverable from Income Tax Deptt should not
  be shown in Chapter Books and should be shown as
  recoverable from HQ.

11
Conduct of Internal Audit at all the Regional
Councils and Chapters

• All the four Regions, A, B C Grade Chapters and
  CCGRT are required to carry out internal audit of
  their financial activities on quarterly basis.
• Internal Auditors are to be appointed out of
  practicing Chartered Accountants, or by a firm of
  Chartered Accountants / Company Secretaries, with
  a condition that the individual or partner of the
  firm should not be an Office-bearer of the
  Regional Council / Chapter.
• Internal Audit Reports along with the replies are
  required to be submitted to the HQ by the under
  mentioned scheduled dates
• a. For Ist Quarter Within 3 months from the
  close of Quarter but at least 15 days before
  conduct of Finance Committee Meeting
• b. For IInd, IIIrd IVth Quarters Within 2
  months from the close of Quarters but at least 15
  days before conduct of Finance Committee Meeting

12
Conduct of Internal Audit at all the Regional
Councils and Chapters

• For D Grade Chapters, all the four Regions are
  required to conduct the audit of the Chapters
  falling under their Regions once in a year and
  submit the report with comments to the HQ by 30th
  September every year.
• The Regions and Chapters to take note that those
  Regions and Chapters which do not submit the
  Internal Audit Reports complete in all respects
  in time for two consecutive quarters will be
  subject to SPECIAL AUDIT and the cost of such
  special audit would be borne by the concerned
  Regional Council.
• For reference, Internal Audit Reposts received at
  HQ from the Regions and Chapters during the year
  2011-12 (up to September 2011 quarter) is shown
  in next slide.

13
Status of Internal Audit Reports of Regional
Councils and Chapters

Received at HQ up to 01.02.2012 Received at HQ up to 01.02.2012 Received at HQ up to 01.02.2012
6/11 9/11 12/11 3/12
EIRC (Own) 2.10.11 13.1.12    
Grade "B"        
1. Bhubaneswar 21.11.11 21.11.11    
2. Hooghly 30.9.11 30.12.11    
Grade "C"        
1. Jamshedpur 2.12.11 2.12.11    
2. Guwahati 29.8.11 16.11.11    
3. Patna 23.11.11 23.11.11    
4. Ranchi 21.10.11      
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Status of Internal Audit Reports of Regional
Councils and Chapters
Received at HQ
up to 01.02.2012
6/11 9/11 12/11 3/12
NIRC 11.8.11 15.11.11 24.1.12  
Grade "A"        
1. Gurgaon Special Audit Special Audit    
2. Jaipur 23.8.11 26.11.11    
3. Noida 26.12.11 26.12.11    
Grade "B"        
1. Chandigarh 16.11.11      
2. Faridabad 8.7.11 7.1.12    
3. Ghaziabad 13.7.11 18.10.11 27.1.12   
4. Kanpur 11.10.11 13.1.12    
5. Lucknow 11.8.11 4.11.11 23.1.12  
6. Ludhiana 4.11.11 11.1.11    
Grade "C"        
1. Agra 2.9.11 31.12.11    
2. Ajmer 9.8.11 31.10.11    
3. Allahabad        
15
Status of Internal Audit Reports of Regional
Councils and Chapters
Received at HQ
up to 01.02.2012
6/11 9/11 12/11 3/12
NIRC 11.8.11 15.11.11 24.1.12  
4. Bareilly 21.7.11 6.1.12    
5. Bhilwara 24.8.11 28.11.11    
6. Dehradun 31.01.12  31.01.12   31.01.12    
7. Jalandhar        
8. Jodhpur 30.01.12  30.01.12      
9. Karnal-Panipat        
10. Meerut 15.7.11      
11. Udaipur 19.7.11 15.11.11    
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Status of Internal Audit Reports of Regional
Councils and Chapters
Received at HQ
up to 01.02.2012
6/11 9/11 12/11 3/12
SIRC 10.10.11 6.1.12    
Grade "A"        
1. Bangalore 10.10.11 1.12.11    
2. Hyderabad 10.10.11 1.11.11    
Grade "B"        
1. Cochin (Kochi) 10.10.11 13.1.12    
2. Coimbatore 10.10.11 29.11.11    
Grade "C"        
1. Calicut        
2. Madurai 10.10.11 13.1.12    
3. Mangalore 13.1.12 13.1.12    
4. Mysore 10.10.11 13.1.12    
5. Thiruvananthapuram        
6. Thrissur 21.10.11 28.11.11 16.1.12  
7. Tiruchirapalli 10.10.11 13.1.12    
8. Visakhapatnam 10.10.11 31.10.11 18.1.12  
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Received at HQ up to 01..02.2012
6/11 9/11 12/11 3/12
WIRC 31.01.12 31.01.12      
CCGRT 2.9.11 30.11.11    
Grade "A"        
1. Ahmedabad        
2. Pune 5.8.11 15.11.11 31.01.12    
Grade "B"        
1. Indore        
2. Nagpur 29.11.11 23.11.11    
3. Navi Mumbai 11.8.11 13.1.12    
4. Thane 10.10.11      
5. Vadodara 5.10.11 5.1.12    
Grade "C"        
1. Aurangabad 25.10.11 28.11.11    
2. Bhopal 14.9.11      
3. Goa 25.1.12 25.1.12    
4. Kolhapur        
5. Nasik 18.10.11 30.12.11    
6. Raipur  01.02.12  01.02.12     
7. Rajkot   01.02.12   01.02.12    
8. Surat 12.7.11 21.12.11    
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Formation of Finance Committee at all the
Regions, A, B C Grade Chapters

• To constitute Finance Committees for ensuring
  compliance of statutory provisions and exercising
  internal controls at the Regions and Chapters.
• Suggested functions of the Finance Committee
• Monitoring monthly Receipts Payments Statement
• Bank Stock Reconciliations
• Review the financial status
• Review Half yearly / Yearly accounts
• Corrective measures on internal audit
  observations
• Monitoring inter-unit balances reconciliations
• Monitoring and self-certification of statutory
  compliances
• To interact with the internal statutory
  auditors
• Conduct of meetings At least one meeting in each
  Quarter

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Preparation of Annual Budget on Capital Accounts
and Revenue Accounts at the Regional Councils and
A, B C Grade Chapters

• As prescribed u/s 18 (4) of Company Secretaries
  Act, 1980 (as amended-2006), like HQ, all the
  four Regional Councils and Chapters are required
  to prepare their Annual Budget prior to start of
  the financial year, considering all the
  anticipated revenue and proposed expenditure.
• Aforesaid Annual Budget is required to be placed
  in the Regional Council Meeting or Managing
  Committee Meeting of the Chapter for its
  approval.
• Revenue Budget is required to be prepared in the
  format already communicated to all the Regions
  Chapters.
• To ensure monitoring of actual expenses viz-a-viz
  approved budget

20
Improving the financial position of the Regions /
Chapters

• To take effective steps to become self-sustained
  in order to meet their Capital Revenue
  expenses.
• Efforts to be made for generation of funds and
  economizing the expenses.
• For reference, based on the audited annual
  accounts for F.Y. 2010-11, the following Chapters
  have shown Deficit

EIRC Hoogly, Ranchi
NIRC Gurgaon, Ludhiana, Merrut, Ajmer, Allahabad, Alwar, Dehradun, Kota
SIRC -
WIRC Navi Mumbai
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Other Items

• To ensure Statutory Compliance
• Ensuring deposit of statutory dues by stipulated
  dates and submission of various periodical
  returns like, TDS, VAT, Service Tax, etc., to
  Government Departments and MIS reports, etc. to
  HQ.
• Filing Quarterly Returns through E-mode using PAN
  of ICSI and TAN of Regions
• Furnishing details of deposit of funds to
  Institutes bank a/c on Daily / Weekly basis
• All Chapters to forward the claims related to
  reimbursement of Quarterly Establishment Expenses
  on quarterly basis regularly.
• All the Regions to forward their claims for
  reimbursements related to expenses incurred on
  behalf of HQ on monthly basis.
• Up-dation of PAN details in Bank Accounts

22
Other Items

• Accounts / RTGS details to HQ for online transfer
  of funds
• .

EIRC Dhanbad, Patna
NIRC Alwar, Jalandhar, Jammu, Jodhpur, Shimla
WIRC Dombivili
SIRC -
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Other Items

• Implementation of ORACLE Apps ERP Module at
  Regions Chapters
• All the Regions, ICSI-CCGRT and A B Grade
  Chapters are required to complete data entry and
  forward their Trial Balances as on 31.12.2011
  under standard formats of ORACLE Apps to HQ for
  finalization the process of consolidation of
  accounts activity
• Regular entry in ERP w.e.f. 01.01.2012
• Period closure and restriction of data entry by
  5th of following month
• Preparation of Final Accounts for the FY 2011-12
  in ERP
• Complete switch over to ERP and discontinuation
  of the legacy systems w.e.f. 01.04.2012.
• Status of data provided to HQ from Region /
  Chapter is shown in next slide.

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SUMMARY OF FINANCIAL DATA
MIS on DATA from Regions / Chapters MIS on DATA from Regions / Chapters MIS on DATA from Regions / Chapters MIS on DATA from Regions / Chapters MIS on DATA from Regions / Chapters
DATA as on 31.12.2011 DATA as on 31.12.2011 DATA as on 31.12.2011 Status as on 01.02.2012
S. No. Region / Data Received   Todays Remarks
  Chapter     Status  
1 EIRC Yes   Uploaded  
2 Bhubaneshwar Yes   Uploaded  
3 Hooghly Yes   Uploaded  
           
1 NIRC Yes   Uploaded  
2 Chandigarh No     Reminders sent
3 Faridabad No     Reminders sent
4 Ghaziabad Yes    To be uploaded
5 Gurgaon Yes   To be uploaded 
6 Jaipur Yes   Uploaded  
7 Noida Yes   Uploaded  
8 Lucknow No     Reminders sent
9 Ludhiana No     Reminders sent
10 Kanpur Yes   Uploaded  
           
25
SUMMARY OF FINANCIAL DATA
MIS on DATA from Regions / Chapters MIS on DATA from Regions / Chapters MIS on DATA from Regions / Chapters MIS on DATA from Regions / Chapters MIS on DATA from Regions / Chapters
DATA as on 31.12.2011 DATA as on 31.12.2011 DATA as on 31.12.2011 Status as on 01.02.2012
S. No. Region / Data Received   Todays Remarks
  Chapter     Status  
1 SIRC Yes   Uploaded  
2 Bangalore Yes   Uploaded  
3 Hyderabad Yes   Uploaded  
4 Coimbatore Yes    To be uploaded
5 Kochi Yes   Uploaded  
           
1 WIRC Yes   Uploaded  
2 Ahmedabad Yes   To be Uploaded  
3 Navi Mumbai Yes   Uploaded  
4 Pune Yes   Uploaded  
5 Indore No     Reminders sent
6 Nagpur No     Reminders sent
7 Thane Yes   Uploaded  
8 Vadodara Yes   Uploaded  
           
1 ICSI-CCGRT Yes   Uploaded  
           
26

• Thank you