The Members of ICAI Accounting
Research Foundation:
Your Directors have pleasure in presenting the
Fourth Annual Report of the ICAI Accounting
Research Foundation together with the Audited
Balance Sheet, Income and Expenditure Account
and Cash Flow
Statement for the financial
year ended 31st March 2003:
The Institute of Chartered Accountants of India
promoted ICAI Accounting Research Foundation
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 Accounting Research Foundation
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.
During the year, ICAI Accounting Research Foundation,
tried to achieve 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 year past was characterised by many small
steps. Although, the steps taken during the
past year were small, but in time segment of
a year, ICAI ARF plans meet with success only
if they are seen as small steps onward a long
journey. Direction is as important as speed.
But results are not immediately apparent. Yet
the efforts do not cease as the journey is eventually
completed in another time segment. The only
condition is that the ultimate goal is not lost
sight of, nor is the identified process given
the go by.
As mentioned in our previous report, the Board
has constituted an Expert Group for selection
of candidates for Infosys Fellowship Research
Programme. It may be mentioned here that, the
Foundation had issued an advertisement in August
2001 seeking applications from the candidates
interested in pursuing the research with the
Foundation under the scheme. The advertisement
was given wide publicity. The advertisement
received a wide response from the candidates
from all over India.During the year, the Expert
Group of ICAI ARF selected an Infosys Fellow
to conduct research under the Infosys Fellowship
Research Programme on the research project “Legal
Protection of Intellectual Property in Information
Technology Industry”. The completion of
research would lead to award a doctoral degree
by Guru Gobind Singh Indraprastha Vishwavidyalaya.
Further, a letter was also written to all the
Universities of India, inviting research scholars
to undergo research with ICAI ARF.
The Board of Directors are glad to report that
the ICAI-ARF Research Project on the conversion
of accounts of MCD, accepted last year is proceeding
very successfully. Phase-I of this research
project has been completed. Phase-II which involves
the implementation of the system in three zones
of the MCD, is now in progress. Phase-II is
expected to be complete by March, 2004. Phase-I
of the project involved the publication of the
Annual Accounts of the MCD for the year ended
2002-03, on Accrual Basis. The work was completed
in fifteen months against a projection of 14
months. The completion of Phase-I was marked
by a function held on the 5th August, 2003 at
Ashoka Hotel. The program was presided over
by the Lt. Governor of Delhi, the Mayor of the
MCD was the Chief Guest and the Leader of the
Opposition in the House gave speeches and appreciated
the research work done by the ICAI-ARF team.
The Deputy Comptroller and Auditor General and
Chairman of GASAB, Mr.S Sathyamoorthy also appreciated
the research work and stated that benefit of
this research be flown to other municipal corporations
. The media gave extended publicity to the function
both in the newspapers as well as on the T.V.
As reported in the last report, ICAI ARF undertook
MCD as a pilot project for conversion of accounts
of a major Municipal Corporation. The above
project would create an expertise in a new area
for chartered accountants. The thrust of accepting
such type of research project was to disseminate
the research experience gathered in the form
of generalised modules and technical guides.
In pursuance to the established objectives,
ICAI ARF have released a research publication
tilted “ Conversion of Accounts of Municipal
Bodies to Accrual basis: Issues Concerned &Strategy”.
As required by section 217(2)(AA), Board of
directors adopted the Director's Responsibility
Statement as under.
(i)
In the preparation of annual accounts,
that applicable accounting standards have been
followed;
(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 Section 224 (1B) of the
Companies Act, 1956.
On behalf of the Board
(R Bupathy)
(Chairman)
New Delhi
11th September 2003
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