WELCOME TO DIRECTORATE OF FINANCE & ACCOUNTS

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

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.

FINALIZATION & CONSOLIDATION OF ANNUAL ACCOUNTS FOR F. Y 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.

FINALIZATION & CONSOLIDATION OF ANNUAL ACCOUNTS FOR F. Y FINALIZATION & CONSOLIDATION OF ANNUAL ACCOUNTS FOR F.Y. 2011-12 & AUDIT THEREOF EIRC Region 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 3 Dhanbad 7.5.11 4 Hooghly 5 Jamshedpur 18.5.11 6 North-Eastern 7 Patna 2.5.11 8 Ranchi 25.5.11

FINALIZATION & CONSOLIDATION OF ANNUAL ACCOUNTS FOR F. Y FINALIZATION & CONSOLIDATION OF ANNUAL ACCOUNTS FOR F.Y. 2011-12 & AUDIT THEREOF NIRC Region Total CHAPTER Received Audited /   on Unaudited 1 NIRC (own) 10.5.11 A 2 Agra 11.5.11 3 Ajmer 6.5.11 4 Allahabad 21.4.11 5 Alwar 31.5.11 6 Amritsar 16.5.11 7 Bareilly 25.4.11 8 Bhilwara 4.5.11 9 Chandigarh 2.5.11 10 Dehradun 24.5.11 11 Faridabad 12 Ghaziabad 13 Gurgaon 30.5.11 14 Jaipur 15 Jalandhar

FINALIZATION & CONSOLIDATION OF ANNUAL ACCOUNTS FOR F. Y FINALIZATION & CONSOLIDATION OF ANNUAL ACCOUNTS FOR F.Y. 2011-12 & AUDIT THEREOF NIRC Region Total CHAPTER Received on Audited / Unaudited 16 Jammu 16.5.11 A 17 Jodhpur 4.5.11 18 Kanpur 7.6.11 19 Karnal-Panipat 19.4.11 20 Kota (Revised) 11.5.11 21 Lucknow 22 Ludhiana 23 Meerut 26.5.11 24 Modinagar 25 Noida 29.4.11 26 Shimla 27 Sonepat 28 Srinagar 9.5.11 29 Udaipur 15.4.11 30 Varanasi 10.5.11 31 Yamunanagar 27.4.11

FINALIZATION & CONSOLIDATION OF ANNUAL ACCOUNTS FOR F. Y FINALIZATION & CONSOLIDATION OF ANNUAL ACCOUNTS FOR F.Y. 2011-12 & AUDIT THEREOF SIRC Region Total CHAPTER Received on Audited / Unaudited 1 SIRC (own) 2.6.11 A 2 Bangalore 15.4.11 3 Calicut 23.5.11 4 Cochin (Kochi) 3.5.11 5 Coimbatore 13.5.11 6 Hyderabad 6.5.11 7 Madurai 8 Mangalore 9 Mysore (Revised) 16.5.11 10 Palakkad 11 Puducherry 12 Salem 13 Thiruvananthapuram 31.5.11 14 Thrissur 15 Tiruchirapalli 16 Visakhapatnam 27.4.11

FINALIZATION & CONSOLIDATION OF ANNUAL ACCOUNTS FOR F. Y FINALIZATION & CONSOLIDATION OF ANNUAL ACCOUNTS FOR F.Y. 2011-12 & AUDIT THEREOF WIRC Region Total CHAPTER Received on Audited / Unaudited 1 WIRC 30.6.11 A 2 Ahmedabad 8.7.11 3 Aurangabad 7.6.11 4 Bhopal 23.5.11 5 Dombivli Not received -- 6 Goa 27.5.11 7 Indore 22.6.11 8 Kolhapur 9 Nagpur 7.5.11 10 Nasik 16.5.11 11 Navi Mumbai 10.6.11 12 Pune 2.5.11 13 Raipur 3.6.11 14 Rajkot 17.6.11 15 Surat 15.6.11 16 Thane 18.5.11 17 Vadodara

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.

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

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.

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 EIRC (Own) 2.10.11 13.1.12   Grade "B" 1. Bhubaneswar 21.11.11 2. Hooghly 30.9.11 30.12.11 Grade "C" 1. Jamshedpur 2.12.11 2. Guwahati 29.8.11 16.11.11 3. Patna 23.11.11 4. Ranchi 21.10.11 Status of Internal Audit Reports of Regional Councils and Chapters

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 2. Jaipur 23.8.11 26.11.11 3. Noida 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 4.11.11 23.1.12 6. Ludhiana 11.1.11 Grade "C" 1. Agra 2.9.11 31.12.11 2. Ajmer 9.8.11 31.10.11 3. Allahabad

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   7. Jalandhar 8. Jodhpur 30.01.12  30.01.12   9. Karnal-Panipat 10. Meerut 15.7.11 11. Udaipur 19.7.11

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 1.12.11 2. Hyderabad 1.11.11 Grade "B" 1. Cochin (Kochi) 13.1.12 2. Coimbatore 29.11.11 Grade "C" 1. Calicut 2. Madurai 3. Mangalore 4. Mysore 5. Thiruvananthapuram 6. Thrissur 21.10.11 28.11.11 16.1.12 7. Tiruchirapalli 8. Visakhapatnam 31.10.11 18.1.12

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 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 4. Kolhapur 5. Nasik 18.10.11 30.12.11 6. Raipur  01.02.12  01.02.12  7. Rajkot   01.02.12 8. Surat 12.7.11 21.12.11

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

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

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

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

Alwar, Jalandhar, Jammu, Jodhpur, Shimla Other Items Accounts / RTGS details to HQ for online transfer of funds: . EIRC Dhanbad, Patna NIRC Alwar, Jalandhar, Jammu, Jodhpur, Shimla WIRC Dombivili SIRC -

Regular entry in ERP w.e.f. 01.01.2012; 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. .

SUMMARY OF FINANCIAL DATA MIS on DATA from Regions / Chapters 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 3 Hooghly NIRC Chandigarh No Reminders sent Faridabad 4 Ghaziabad  To be uploaded 5 Gurgaon To be uploaded  6 Jaipur 7 Noida 8 Lucknow 9 Ludhiana 10 Kanpur

SUMMARY OF FINANCIAL DATA MIS on DATA from Regions / Chapters 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 3 Hyderabad 4 Coimbatore  To be uploaded 5 Kochi WIRC Ahmedabad To be Uploaded Navi Mumbai Pune Indore No Reminders sent 6 Nagpur 7 Thane 8 Vadodara ICSI-CCGRT

Thank you