WELCOME TO DIRECTORATE OF FINANCE & ACCOUNTS

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

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

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

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

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

10. 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

14. Status of Internal Audit Reports of Regional Councils and ChaptersReceived at HQ up to 01.02.2012

15. Status of Internal Audit Reports of Regional Councils and ChaptersReceived at HQ up to 01.02.2012

16. Status of Internal Audit Reports of Regional Councils and ChaptersReceived at HQ up to 01.02.2012

17. Received at HQ up to 01..02.2012

18. 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

19. 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:

21. 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 Institute’s 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: .

23. 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. .

24. SUMMARY OF FINANCIAL DATA

25. SUMMARY OF FINANCIAL DATA

26. Thank you