To the Members of ICAI
Accounting Research Foundation:
The Directors’ have pleasure
in presenting the Fifth Annual Report of the
ICAI Accounting Research Foundation (ICAI-ARF)
ogether with the Audited Balance Sheet, Income
and Expenditure Account and Cash Flow Statement
for the Financial Year ended 31st March, 2004.
The Institute of Chartered Accountants of India
promoted ICAI-ARF with the main objective to
make it an academy for the purpose of imparting,
spreading and promoting knowledge, learning,
education and understanding in the various fields
related to the profession of chartered accountancy.
The vision of ICAI-ARF is to establish it as
a core research body with facilities to undertake
research in the areas of Accounting, Auditing,
Capital Markets, Fiscal Policies and other related
disciplines and to develop quality pronouncements,
documents, research papers on the above mentioned
subjects.
Performance Highlights:
The Foundation has completed another successful
year, 2003-04 and has actively pursued the objectives
of establishing the Foundation as a core research
body with facilities to undertake research in
the areas of Accounting, Auditing and other
related disciplines. The efforts of the Foundation
at building a base of expertise in specialized
areas has also been acknowledged by senior government
officials in public forums where they have stated
that the Foundation’s efforts have encouraged
the government to introduce accrual accounting
systems in Government. During the current financial
year, the Foundation has registered a net surplus
of Rs. 99.25 lakhs out of which, a reserve of
Rs. 75 lakhs has been appropriated for construction
of building at Noida.
Compared to last year, there has been an increase
in expenses. This is due to the fact that, following
the overall objectives of the Foundation, special
emphasis was laid on publication of books which
would disseminate acquired knowledge widely
among the members of the Institute, and on holding
seminars in various parts of the country. Major
portion of the costs of these seminars was borne
by the Foundation.
As far as ongoing Municipal Corporation of
Delhi (MCD) Project relating to conversion of
accounts to accrual basis of municipal bodies
is concerned, we are working on its Second Phase
relating to implementation of the system in
three zones of MCD. The half yearly Financial
Statements of MCD for the year 2003-04 has already
been prepared. The ICAI-ARF in addition to its
MCD project for conversion of Accounts to accrual
basis, has agreed to accept additional assignments
relating to setting up of office of Management
and Budget, setting up of Asset Information
Management System and the introduction of accrual
system of accounting in the remaining nine zones
of MCD. Continuing the initiative to develop
new areas of applied knowledge, ICAI-ARF has
taken up the project from Kolkata Municipal
Corporation (KMC) in the month of June, 2004
for application of advance concept in financial
monitoring reforms in KMC. The research study
on Legal Protection of Intellectual Property
Rights in Information Technology Industry under
ICAI-ARF– Infosys Fellowship programme
is continuing.
The Foundation continued to pursue and promote
research in the various fields related to the
profession of Chartered Accountancy through
the Universities and other Institutions as well.
Conservation of energy, technology absorption,
foreign exchange earnings and expenditure :
Conservation of energy : The level of energy
consumption is negligible and therefore, there
are no matters to report.
Technology absorption : There are no matters
to report. Foundation, as stated earlier, being
a research organisation, all the functions and
resources are devoted towards research purposes.
The MCD project has been instrumental in building
expertise in conversion of accounts to accrual
basis and related areas of municipal bodies.
Foreign Exchange earnings: There were no foreign
exchange earnings during the year.
& outgo The foreign exchange expenditure
during the year was Rs. 4,45,883/-.
Personnel:
There are no employees on the payroll of the
Foundation and the activities are being pursued
through a team of consultants and researchers
supported by staff from ICAI.
Director’s Responsibility Statement
:
As required by section 217(2AA), Board of directors
confirms that :
(i) In the preparation of annual accounts,
that applicable accounting standards have been
followed with no material departure;
(ii) We have selected such accounting policies
and applied them consistently and made
judgements and estimates that are reasonable and
prudent so as to give a true and fair view of
the state of affairs of the company at the end
of the financial year and of the income and
expenditure of the company for that period;
(iii) We have taken proper and sufficient care
for the maintenance of adequate accounting
records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets
of the company and for preventing and detecting
fraud and other irregularities; and
(iv) We have prepared the annual accounts on a
going concern basis.
M/s. P Aggarwal & Associates, Chartered
Accountants, the Foundation’s auditors
retire at the conclusion of this Annual General
Meeting. They have signified their willingness
to accept appointment and have further confirmed
their eligibility under 224(1B) of the Companies
Act, 1956.
On behalf of the Board
(Sunil Goyal)
(Chairman)
New Delhi
14th September, 2004
BACK
