|DIRECTORS REPORT 2013|
TO THE MEMBERS OF ICAI ACCOUNTING RESEARCH FOUNDATION
The Directors have pleasure in presenting the Fourteenth Annual Report of the ICAI Accounting Research Foundation (ICAI ARF), together with the Audited Balance-Sheet, Income and Expenditure Account and Cash Flow Statement for the Financial Year ended 31st March 2013.
The Institute of Chartered Accountants of India, set up under an Act of Parliament - The Chartered Accountants Act, 1949 - has established ICAI Accounting Research Foundation (ICAI-ARF) in January, 1999, as a Section 25 company - a core research body to promote research in the areas of accounting, auditing, capital markets, fiscal policies, monetary policies and other related disciplines. ICAI ARF believes that proper research inputs are necessary condition for raising the level of corporate governance, management, accounting and financial reporting. High quality research projects based on practical experience with theoretical extrapolations would also provide valuable inputs in formulation of policies and implementation thereof at macro and micro levels.
The ICAI ARF has completed another successful year, 2012-13, in establishing it as a core research body in the areas of Accounting, Auditing, Fiscal Laws and Policy, Corporate and Economic Laws and Policies, Economics, Financial Management, Financial Services, Capital and Money Markets and other related disciplines.
Recognizing the impetus required for promoting quality research in the country, the Board has adopted and pursued a multi - pronged action plan to support research projects of contemporary national and international significance in the areas related to accountancy profession. The ICAI ARF has extended an open invitation to undertake research to various institutions, research bodies, research scholars and the practitioners. Focussed advertisements were also put up on the website of ICAI ARF, ICAI, and in the Journal of ICAI 'The Chartered Accountant', inviting expression of interest from the members and others to carryout research in the areas of contemporary interest with requisite financial support from ICAI ARF with an option of pursuing the research or for taking up of systematic study in relevant areas. As a consequence, during the year numbers of research projects have been commissioned to renowned researcher from bodies like IIM Bangalore, Oxford University and other top Institutions and Universities.
New value added projects will continue to be the fundamental part of subsistence of ICAI ARF. Accordingly the ICAI ARF reaffirms its commitment to continue undertaking the research projects that would add value and help in spreading, promoting and advancement of various disciplines in the fields of accountancy, auditing, fiscal laws and policy, corporate and economic laws and policies, economics, financial management, financial services, capital and money markets, management information and control systems and other allied fields.
The main objective of the establishment of ICAI ARF is to undertake, conduct, foster, promote and provide aid and facilities for prosecuting core, fundamental, empirical, applied and other kinds of research work, projects and studies. The research work undertaken by ICAI ARF has been divided amongst two branches of research, viz., (I) Basic Research, and (II) Applied Research.
The status of major research projects completed during the year and presently undertaken/implemented under basic and applied research is given below along with particulars of proposals that are under consideration:
(I) BASIC RESEARCH:
Basic research is designed to add to an organized body of scientific knowledge and does not necessarily produce results of immediate practical value. It is concerned with formulation of a theory or a contribution to theory. The ICAI ARF involves in carrying out basic research projects pertaining to subjects requiring enquiring into problems and issues significant to accounting and auditing and allied disciplines such as economics, finance and business laws through outsourcing research projects by inviting applications from research bodies/scholars and providing them financial assistance. In view of the above, the following projects have been undertaken by ICAI ARF:
1. PROJECTS COMPLETED DURING THE YEAR:
The following research project undertaken earlier has successfully been completed during the year 2012-13:
1.2 ONGOING PROJECTS:
The following research projects have been undertaken/ continuing during the year:
1.3. PROJECT PROPOSALS:
The research studies on the following topics have been approved in principle by ICAI ARF subject to modification in methodology/scope for the research:
(II) APPLIED RESEARCH:
Applied Research is directed towards the solution of immediate specific and practical problems. It is performed in relation to actual problems and under the conditions in which they are found in practice. The applied research requires systematic study to gain knowledge or understanding necessary to determine the means by which a recognized and specific need may be met.
In view of the above, ICAI ARF has undertaken research projects related to conversion of accounts from cash basis to accrual system of Accounting for Municipal Corporation of Delhi (MCD), Kolkata Municipal Corporation (KMC), Controller General of Accounts (CGA) and Department of Posts (DoP) etc. involving conceptualizing a new accounting system including the incorporation of methodologies and procedures not current in India and same had been successfully completed. The Foundation has also undertaken DFID Project relating to Strengthening Rural Decentralization (SRD) suggesting a detailed methodology and road map for under pinning the issues on a logical framework. In continuation to above, the following projects have further been undertaken by ICAI ARF:
2.1 PROJECTS COMPLETED DURING THE YEAR:
The following research project undertaken earlier has successfully been completed during the year 2012-13:
2.2 ONGOING PROJECTS:
The following research projects have been undertaken during the year:
2.3 PROJECT PROPOSALS:
To further promote the applied research, the foundation office is working on the lines of the aforesaid projects and undertakes the following projects, as given below:
During the year the revenue from research activities has been Rs. 25.47 Lakh as against Rs. 51.62 Lakh in the previous year. The excess of expenditure over income is Rs 60.67 Lakh as compared to the deficit of Rs. 24.12 Lakh during the year 2012-13. Financial results for the year 2012-13 compared with those of previous year are summarized below:
(Amount in Rs.)
STRENGHTHENING OF INFRASTRUCTURAL BASE:
THE WAY FORWARD:
Recognising the fact that considerable efforts are required to promote research in the field of accounting in India, ICAI ARF has taken a number of proactive measures for undertaking applied research, and carrying out research studies. The ICAI ARF would further intensify promotional campaign for establishing direct contact with the Universities and other bodies on the one hand, and reaching out to the potential researchers throughout the country, on the other.
The list of proposed research projects of contemporary national and international significance and proposed research projects for Ph. D degree would be further expanded, and expression of interest invited. In select areas, ICAI ARF may directly undertake research. Possibilities for networking with research organisation of repute, within and outside India, would be explored. Series of technical documents are proposed to be published and focussed training programmes organised for dissemination of technical knowledge and skills to various stakeholders.
Initiative for applied research in newer areas including already undertaken with the office of All India Institute of Medical Sciences (AIIMS) of India on the lines of those taken up under MCD, KMC, CGA and DoP would also be considered basis their significance and usefulness as well as serving the ICAI ARF objectives.
Also, as a part of the ongoing initiatives ICAI ARF is exploring options to work with as well as undertake joint initiatives in its focus research areas with organization / institutes of repute. ICAI ARF office has touched base with the country offices of UNDP, IMF and ADB in Delhi in this regard. It is also in touch with academic institutions such as MDI, Gurgaon for expanding its research activities and undertaking joint initiatives.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND EXPENDITURE:
Particulars of Employees: Pursuant to provisions of section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, as amended from time to time, it is stated that no employee was in receipt of remuneration exceeding Rs. 24 Lakhs per annum or Rs. 2.00 Lakh per month during the year 2012-13.
DIRECTORS RESPONSIBILITY STATEMENT:
As required by section 217(2AA), Board of Directors hereby confirms that:
ICAI ARF has always maintained cordial and harmonious relations at all levels. Efforts were made to inculcate team spirit and motivate the employees to fully develop their potential.
HUMAN RESOURCE DEVELOPMENT
ICAI ARF has always considered that its core strength lies in quality of its human assets.
Welfare of the employees had received due attention during the year.
BOARD OF DIRECTORS
During the year CA. J. N. Shah relinquished the charge of Chairman held by him as Ex-Officio. The Board places on record its appreciation for the commendable services and contribution made by CA. J. N. Shah.
M/s. R. Shyam & Associates (Chartered Accountants), New Delhi retire and are eligible for re-appointment. They have confirmed that, if re-appointed their appointment will be within the limits prescribed under Section 224(1B) of the Companies Act, 1956. The Directors recommend their re-appointment as Auditor of the Company for the Financial Year 2013-14.
The Board takes this opportunity to place on record its appreciation for the continued assistance, support and co-operation received from the Ministry of Corporate Affairs- Government of India, State Governments and Urban Local Bodies, M/s. Infosys Technologies Ltd, Office of the Department of Posts (DoP), AIIMS Authorities, Government of India, Guru Gobind Singh Indraprastha University, Bank of India and other authorities, experts, research scholars and individuals during the course of execution of the research projects and in other disciplines.
The Board of Directors sincerely appreciate and commend the valuable contribution made by the employees of the foundation at all levels in the pursuit of achieving objectives of the foundation for another year in succession.
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