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Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

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July 2011


July 2011

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Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

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July 2011


July 2011

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Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

CALENDAR OF EVENTS - July & August 2011 Date/Day

01.07.11 Friday 06.07.11 Wednesday

08.07.11 Friday

09.07.11 Saturday 13.07.11 Wednesday 14.07.11 Thursday

15.07.11 Friday 20.07.11 Wednesday 23.07.11 Saturday 26.07.11 Tuesday 27.07.11 Wednesday 29.07.11 Friday 03.08.11 Wednesday

Topic /Speaker

CA Day Celebrations Flag Hoisting by CA. N C S Raghavan Sr. Member, Bangalore “Understanding Intellectual Property Rights” - A CA’s perspective Sri. H L Narendra Bhatta Patent Attorney, Bangalore Sri S. Narayan Memorial Endowment Lecture jointly with KSCAA "Jeevanotsaaha Celebrations of Life" Dr. Gururaj Karajagi Commencement of Certification Course on Indirect Taxes Details at Page No: 13 SA 230 (Revised) - Audit Documentation CA. Amod Joshi Discussion on Income Tax Return ITR 1 to 5 and related issues CA. H Ganpatlal Kawad Rs.250/CPE Teleconference on”Salient features of Goods & Service Tax” CA. Madhukar N Hiregange Integrating IS Audit with Internal Audit CA. A Subramaniam Computer Awareness Programme for Senior Members - by ITT Staff Restricted to 25 participants 49th Annual General Meeting Investment Hygiene - An Equity Perspective CA. Ankur Dhanuka CPE Teleconference on "Issues in TDS under Section 195" CA. Mahesh P Sarda Code of Ethics - Emerging Issues Speaker yet to be Confirmed

Venue/Time

Branch Premises 09.30am Branch Premises 06.00pm to 08.00pm

API Bhavan,Near Bangalore Branch of ICAI,Vasanthnagar, Bangalore 04.15pm to 05.30pm

Branch Premises 06.00pm to 08.00pm Sri Bhagawan Mahaveer Jain College Auditorium, Next to Bangalore Stock Exchange 05.00pm to 08.00pm Branch Premises 11.00am to 01.00pm

CPE Credit

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2 hrs ------

2 hrs 3 hrs 2 hrs

Branch Premises 06.00pm to 08.00pm Branch Premises 10.00am to 05.00pm

2 hrs

Branch Premises 06.30pm Branch Premises 06.00pm to 08.00pm Branch Premises 11.00am to 01.00pm

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Branch Premises 06.00pm to 08.00pm

2 hrs 2 hrs 2 hrs

Note : High Tea at 5.30 pm for programmes at 6.00 pm at Branch Premises. Advertisement Tariff for the Branch Newsletter Colour full page Outside back ` 30,000/Inside back ` 24,000/-

Inside Black & White Full page ` 15,000/Half page ` 8,000/Quarter page ` 4,000/Advt. material should reach us before 22nd of previous month.

Editor

: CA. Venkatesh Babu T.R.

Sub Editor : CA. Ravindranath S.N.

DISCLAIMER : The Bangalore Branch of ICAI is not in anyway responsible for the result of any action taken on the basis of the advertisement published in the newsletter. The members, however, bear in mind the provision of the code of ethics while responding to the advertisements. The views and opinions expressed or implied in the Branch Newsletter are those of the authors and do not necessarily reflect that of Bangalore Branch of ICAI.

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July 2011


TAX UPDATES MAY 2011 CA. Chythanya K.K., B.com, FCA, LL.B., Advocate

VAT, CST, ENTRY TAX, PROFESSIONAL TAX PARTS DIGESTED: a) b) c) d) e) f)

16 KCTJ – Part 2 70 KLJ – Part 3 to 5 39 VST – Part 6 40 VST – Part 1 to 3 5 GST – Part 4 6 GST – Part 1

Reference/Description 2011-12 (16) KCTJ 14 : T.V. Sundaram Iyengar & Sons Ltd. v. The State of Karnataka The High Court held that the discount allowed not reflected in the tax invoice but granted through credit notes was eligible for deduction while computing the total turnover of the assessee. 2011 (70) Kar. L.J. 645 (Tri.) (DB): Flemingo Duty Free Shop Private Ltd. v. State of Karnataka In the instant case goods were imported from abroad and warehoused in customs bonded warehouse and sold by licensee through his duty-free shop at arrival terminal of international airport, to incoming passengers, who paid the sale price in approved foreign currency and got the goods cleared through customs for home consumption. The Tribunal held that such sales were in the course of import and were covered by Section 5(2) of the CST Act, 1956 and therefore not liable to local sales tax. The Tribunal noted that the sale bill issued by the licensee constituted ‘bill of entry’ and issue of the same constituted transfer of document of title to goods when the goods were still in customs stream and yet to cross

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the customs frontier. However, the Tribunal held that the sales transactions of items which were sourced by way of inter-State purchases and sold in the Duty-free shop to the incoming and outgoing passengers were in the nature of local sales and are liable to tax.Thus, the tribunal held that the sale of imported goods is sale in the course of import whereas the sale of goods bought interstate cannot be called as either sale in the course of import or E1 sale. THUS, THE SALES MADE TO THE CUSTOMER’S BY THE ASSESSEE IN THE DUTY FREE SHOP AT THE INTERNATIONAL AIRPORT would be exempt only if such goods are imported goods. [2011] 40 VST 249 (Mad) HC: Sri Rajeswari Agencies v. Addl. Dy. Commercial Tax Officer The High Court held that C Form could not be refused to be issued on ground of arrears of tax. The Court noted that the Department had no power to deny C Form license to the assessee, for Section 9(2) of the CST Act did not contemplate refusal of C Form for non-payment of tax or penalty.Further, the Court held that normally show-case notice could not be challenged by filing a writ petition. However, in view of the fact that there was an unjust denial to issue C Form when in fact the Department had no jurisdiction to do so, the writ in the instant case was maintainable. [2011] 5 GST 49710 taxmann.com 32 (SC) : Hyderabad Engg. Industries v. State of Andhra Pradesh In the instant case the Apex Court held that when sale or agreement for sale causes or has effect of occasioning movement of goods from one State

to another, irrespective of whether movement of goods is provided for in contract of sale or not, or when order is placed with any branch office or head office which resulted in movement of goods, irrespective of whether property in goods passed in one State or other, if effect of such a sale is to have movement of goods from one State to another, an interState sale would ensue and would result in exigibility of tax under Section 3(a) on turnover of such transaction.The assessee-company had fan manufacturing unit/factory and office in Hyderabad as also had its godown/depots in different States. Company ‘UIL’ had divisional offices at every place wherever assessee’s godowns were located. The main function of UIL was to organize sale and distribution of products of assessee, to arrange for sale promotion, to provide after sales service and such other services as might be required in interest of sale of said products. The agreement also envisaged that UIL would purchase said products as an independent principal and maintain adequate stocks and sell same as such. The Assessee had undertaken to supply its manufactured goods to UIL or to its nominees at agreed price at any of assessee’s godown at option of UIL and only on receipt of request from UIL for supply of goods, assessee despatched same from its factory to its State godowns and from there to UIL divisional office by raising sales invoices. The Apex Court therefore was of the view that the transaction between assessee with its branch offices was a clear case of inter-State sales and not branch transfers.It is necessary, therefore, to critically examine the present practice followed by a dealer in respect of sales through his branches outside the State and to


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

see if there is a potential risk of branch transfer being called as predetermined inter-State sale. [2011] 6 GST 77 (WBTT) (SB): Auto Hitech (P.) Ltd. v. Dy. CCT In the instant case it was held that the amount received by way of reimbursement and/or charges for any post-sale services would not fall within the scope of the term ‘sale price’ for the purpose of levy of sales tax. The Assessee was a reseller of motor vehicles, which sold motor vehicles to customers at a price, fixed by manufacturer, and delivered the vehicles to customers with invoices and temporary registration certificates. Subsequent to the said sale in some cases, at the specific request of buyers, it arranged for getting sold vehicles insured, registered with motor vehicles authority and for payment of road tax. In respect of the same, the customers paid the amounts separately towards registration fee, road tax and insurance premium to the assessee against debit notes. The Tribunal held that since (i) registration of a motor vehicle was a post-delivery event, (ii) it was the liability of the owner of motor vehicle to get the motor vehicle insured and insurance premium was payable by owner of vehicle before registration, and (iii) payment of road tax too was a post-delivery event, aforesaid amounts collected by assessee from buyers of vehicles would not form part of sale price of motor vehicles as defined in Section 2(31) of the West Bengal Sales Tax Act, 1994. [2011] 6 GST 95 (AP) HC : Jasper Aqua Exports (P.) Ltd. v. State of Andhra Pradesh The instant case dealt with the liability to tax in respect of transfer of right to

use goods as per Section 5E, read with Section 2(n) of the Andhra Pradesh General Sales Tax Act, 1957 and Article 366(29A)(d) of the Constitution of India. The assessee was engaged in the business of processing and selling of prawns. It also owned custom built refrigerated trucks. It received certain amount as truck hire charges for transporting produce of other aqua firms. It was contended by the assessee that the same did not fall within the ambit of the aforesaid Section 5E. However the High Court held that as soon as the assessee sent its trucks to others for transporting latter ’s goods to destinations of latter’s choice; the same amounted to transfer of right to use trucks and would be sufficient to infer a taxable event under Section 5E notwithstanding the fact that the assessee retained control over the truck operations.With due respect, it is observed that the Honourable High Court in the above case did not consider the concept of effect to possession for inferring transfer of right to use.

INCOME TAX PARTS DIGESTED: a) 333 ITR – Part 2 & 3 b) 198 Taxman – Part 4 c) 9 ITR(Trib) – Part 1 & 2 d) 129 ITD – Part 9 e) 137 TTJ – Part 5 & 6 Reference/Description [2011] 333 ITR 144 (Mad.) HC: CIT v. Zainab Trading P. Ltd. In the instant case the Madras High Court was dealing with the meaning of the term manufacture in the particular context of deduction under Section 80-IB. The Court held that an activity of transforming the plain

corrugated sheets into a different product of boxes, though to gain space for transportation, such boxes were kept in a folded position, it could not be said that the boxes continued to retain its original characteristics or corrugated sheets. Therefore the said activity amounted to manufacture and the assessee was entitled to deduction under Section 80IB. [2011] 333 ITR 275 (Bom) HC: Prasad Agents (P.) Ltd. v. ITO In the instant case the Bombay High Court was dealing with the provisions of Section 73 dealing with losses in the case of speculation business. The Court held that in the case of a Company dealing in purchase and sale of shares, it was deemed to be carrying on speculation business and in case of a year where there was no transaction of purchase and sale, the loss in book value of shares constituted loss in speculation business. The Court opined that there could be no difference between the losses suffered in the course of trading by delivery and losses in terms of the book value. As long as the assessee was carrying on business of trading by way of purchase and sale of shares even if in respect of any financial year, there were no transactions and yet the company had stock-in-trade of shares, the book value would have to be considered for the purpose of considering the profit and loss in case of speculative business. The Court noted that the Explanation to Section 73 could not be read to mean only when there is a purchase and sale of shares in the course of the financial year. The Explanation would cover both shares which were stock-in-trade and shares which were traded in the course of the financial year for the purpose of considering the loss and

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profit for that year. The loss of profit on account of valuation amounts to revenue losses or revenue receipt. [2011] 333 ITR 289 (Bom) HC: CIT v. Brahma Associates In the instant case the Bombay High Court held that the clause (d) to Section 80-IB(10) (stipulating that the built-up area of the shops and other commercial establishments included in the housing project does not exceed 5% of the aggregate builtup area of the housing project or 2,000 sq ft., whichever is less), inserted w.e.f. 1st April 2005, was a prospective amendment and hence could not be applied to period prior to the said date. Therefore where the housing project was approved by a local authority having residential and commercial unit the entire project was entitled to deduction under the said Section. [2011] 333 ITR 304 (Delhi) HC: DIT v. DSD Noell GMBH In the instant case the Delhi High Court was dealing with the computation of presumptive tax under Section 44BBB applicable in the case of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects.The contention of the assessee was that a sum equal to 10 % of the amount paid or payable to the assessee under the projects undertaken by it be treated as deemed profits and gains chargeable to tax under the head “Profits and gains of business or profession”. The AO did not accept the aforesaid contention, as according to him, on the basis of books of account maintained by the assessee, the profits could be more than 10%. The AO took shelter of sub-section (2) of the said Section and observed that as the assessee was

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maintaining the books of account and on the basis of those documents it could be shown that it was earning more than 10 % profits, then actual profits should be brought to tax.However the Court opined that the provision made in sub-section (2) was for the benefit of the assessee which was clear from the words “the assessee may claim lower profits and gains than the profits and gains specified in sub-section (1)”. Thus, even when sub-section (1) provided for a sum equal to 10 % of the amount paid or payable as deemed profits, the assessee was given a chance to demonstrate and prove before the AO that actual profits earned by the assessee were less than 10 %. On the basis of the said provision, the Revenue could not plead or make out a case that the profits earned by the assessee to be more than 10 %. In so far as the Revenue was concerned, it had to feel content by what was provided in sub-section (1) thereof namely maximum of 10 % of the amount paid or payable as profits and gains of such business chargeable to tax.The aforesaid decision although dealt with Section 44BBB, the ratio thereof may be used in the context of Section 44AD. Accordingly, even if an assessee is having income higher than the presumptive income, Department cannot insist that he should pay tax on such higher income as long as he is paying tax on presumptive income. [2011] 333 ITR 335 (J&H) HC: Shree Balaji Alloys v. CIT & Another In the instant case the J&K High Court noted that the incentives scheme formulated by Central Government for Jammu and Kashmir to accelerate industrial development, generate employment and create opportunities for self-employment,

the purpose of which was public interest. Therefore the Court held that the excise duty refund and interest subsidy was in the nature of capital receipt. [2011] 333 ITR 386 (Delhi) HC: Logitronics P. Ltd. v. CIT/ CIT v. Jubilant Securities P. Ltd. In the instant case the Delhi High Court held that the waiver of loan taken by assessee for business activity was assessable as business income under Section 41(1).Further, the Court noted that where in the case of an investment Company taking loan and investing for long-term in share and no communication or claim was made for many years by the lender and the unsecured loan was written back which resulted in remission of liability, the same was not taxable as income under Section 41(1) when no deduction was claimed in respect of loan. [2011] 333 ITR (St.) 81: Circular No. 2 of 2011, dated 27th April, 2011-06-04 Vide the aforesaid Circular procedure has been stipulated for regulating refund of excess amount of TDS deducted and/or paid. The same is in supersession of Circular no. 285, dated 21-10-1980. The said Circular applies only in respect of TDS on residents covered under Sections 192 to 194LA and the same does not apply to TDS on non-residents falling under Sections 192, 194E and 195, which is covered by Circular no. 7 of 2007.The Circular provides that where the excess payment is discovered by the deductor during the FY concerned, credit of the excess payment is permitted in the quarterly statement of TDS of the next quarter in the FY. In case the detection is made beyond the FY concerned, the


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

claim can be made to the AO (TDS) concerned. However no claim can be made after 2 years from the end of the FY in which the tax was deductible at source. [2011] 9 ITR (Trib) 75 (Bangalore): Bhoruka Engineering Industries Ltd. v. Dy. CIT In the instant case where the assessee sold majority shares in group Company, which Company was holding landed property purchased in the same year, the Bangalore Tribunal held that the sale of shares in effect was sale of property. The said scheme was in effect a colourable device to evade payment of taxation on shortterm capital gains. The Tribunal therefore held that the surplus arising on sale of shares was short-term capital gains liable for taxation as such.With due respect, it is stated that the Honourable Tribunal did not consider the decision of the Supreme Court in the case of Bacha Guzdar 27 ITR 1, where it was held that a shareholder has no interest in the property of the company. In the absence of legislation providing for

lifting the veil, sale of share couldn’t have been treated as sale of property even if share route has been adopted as a tax planning device. [2011] 9 ITR (Trib) 154 (Mumbai): Dy. CIT v. Tata Sons Ltd. In the instant case the Mumbai Tribunal held that the overseas tax paid (income tax paid abroad) by the assessee is entitled to relief under Section 90/91 and the same could not be claimed as deduction under Section 37. (2011) 129 ITD 489 (Mum.-ITAT), 9 taxmann.com 146 (Mum.-ITAT): Assist. CIT vs. Lucky Pamnani The instant case dealt with the aspect charging gifts to tax as provided under Section 56(2)(v) in the light of the clubbing provisions as provided under Section 64. In the instant case, minors having received gift, the Tribunal held that it was essential to determine the relationship of the donor with reference to the minor who had to be treated as ‘the individual’ and not with the deemed assessee. The Tribunal therefore held that the CIT(A), had erred in law in assuming that income

of the minors being assessable to tax in the hands of the father, by applying deeming provision under Section 64 the father should be considered as an ‘individual’ for the purpose of connecting the relationship with the donor. It may be noted that the gift was received by the minors from their paternal grandmother’s brother. [2011] 43-A BCAJ 179 (MumITAT): Rajesh Keshav Pillai v. ITO In the instant case the Mumbai Tribunal held that the exemption under Section 54 was not restricted to capital gain arising on sale of one residential house. If more than one residential house was sold and more than one residential house was bought, then a corresponding exemption was available in relation to each set of sale and corresponding investment in residential house. Further the Tribunal held that the exemption would have to be computed for each sale and the corresponding purchase adopting a combination beneficial to the assessee and not on an aggregate basis.

SICASA PROGRAMMES – JULY 2011 15th July 2011Friday

Advanced MS Excel for CA students By CA H Shivakumar, FCA DISA

Between 3 pm to 7 pm Delegate fee : Rs. 100

22nd July 2011Friday

Excel as a tool of audit By CA H Shivakumar, FCA DISA

Between 3 pm to 7 pm Delegate fee : Rs. 150 (including learning CD)

Address of venue : No. 216, “Sanjay Towers” II Floor, SubbaramaChetty Road, Nettakallappa circle Basavanagudi Bangalore-4 Participation restricted to 50 students on first come first serve basis. For registration contact Ms. Rajalakshmi Tel : 080-30563500/3513 email : blrregistrations@icai.org

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RECENT JUDICIAL PRONOUNCEMENTS IN INDIRECT TAXES N.R. Badrinath, Grad C.W.A., F.C.A. computation of tax liability afresh. Madhur Harlalka, B. Com., F.C.A [Flemingo Duty Free Shop Private Limited, Navi Mumbai vs. State of VALUE ADDED TAX Karnataka. 2011 (70) Kar. L.J 645 ● The appellants were allotted duty(Tri.) (DB)] free shops at the Bangalore ● The appellants were allotted dutyInternational Airport and were free shops at the Bangalore granted licences as private bonded International Airport and were warehouse for storage without granted licences as private bonded payment of duty of the goods warehouse. The appellants were imported such as liquor, cigarettes, permitted to sell the goods such as tobacco, perfumes, cosmetics, etc., for liquor, cigarettes, tobacco, perfumes, sale at the duty-free shops. The cosmetics, etc., which are sourced by appellants, considering the sale at the was way of inter-state purchases to the duty-free shops to be in the course of incoming and outgoing passengers on import under section 5(2) of the payment of foreign or Indian Central Sales Tax Act, 1956 (‘CST currencies. The appellant had not Act’), did not obtain registration taken registration under the Karnataka under the Karnataka Sales Tax Act, Sales Tax Act, 1957 (‘KST Act’) even 1957 (‘KST Act’) and file any returns. though the turnover had crossed the The Assessing Authority (‘AA’) threshold limit based on the rejected the contentions of the contention that such sales were in the appellant and held that the sales at the course of import. The Assessing duty-free shops are local sales and Authority (‘AA’) held that such sales liable to tax under KST Act which, are local sales liable to tax and was upheld by the First Appellate accordingly passed orders to collect Authority (‘FAA’). However, it was tax including penalty under the KST held that the goods imported and Act. However, it was held that the stationed at the Bangalore airport are sales transactions of items which are in the import stream and not crossed sourced by way of inter-state the customs frontiers of India. purchases and sold in the duty-free Subsequent issue of sale bill amounts shop are in the nature of local sales to transfer of title in such goods and and hence liable to tax. [Flemingo delivery of the same results in Duty Free Shop Private Limited, Navi crossing custom frontiers of India. Mumbai vs. State of Karnataka. 2011 Hence, the appellant has complied (70) Kar. L.J 645 (Tri.) (DB)] with the provisions of section 5(2) of the CST Act and is eligible for ● The assessee is engaged in the claiming exemption. Accordingly, the business of supply of Ready Mix tax levied by the AA and confirmed Concrete (‘RMC’) and was registered by the FAA was set aside and the under the Karnataka Value Added Tax matter was remanded to the AA for Act, 2003 (‘the Act’). The assessee

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had filed returns without disclosing the pumping charges collected in the bill of sale based on the contention that the same does not form part and parcel of the consideration for the sale of RMC. However, the Assessing Authority (‘AA’) sought to tax such pumping charges and accordingly passes assessment orders which, was confirmed by the First Appellate Authority (‘FAA’). However, it was held that the assessee is transporting RMC to the buyer’s site in his own vehicle fitted with pumps specially designed for the purpose. Where the purpose for which RMC is bought is known to the seller, condition is implied that RMC delivered at buyer’s site should be fit for the purpose. The property in RMC passes to buyer on delivery at buyer’s site i.e., when RMC in condition fit for the purpose is pumped from the vehicle to the building site of the buyer. Hence, pumping charges being pre-sale expenditure form [art of sale consideration and is exigible to tax. Accordingly, the appeal filed by the assessee is dismissed and the order passed by the AA is hereby confirmed. [ACC Limited, Bangalore vs. State of Karnataka. 2011 (70) Kar. L.J 622 (Tri.) (DB)] ●

The petitioner is an effluent treatment company and had undertaken pollution control treatment for Madura Coats Limited, Koratty, which is a known company engaged in manufacture of yarn. The petitioner used chemical named ‘Envirofloc’ to carry out such treatment and in the process of such treatment, the said chemical gets used up by neutralizing colour, odour, etc. of the effluent. The petitioner contended that there is no transfer or sale taking place in the carrying out


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

of treatment as works contract. The department contended that the chemical is consumed in the process of treatment and it gets transferred and hence there is sale of goods involved in the execution of works contract. However, it was held that the moment the assessee pours the chemical into the effluent, he ceases to be the owner and the awarder shall be deemed to have taken delivery of the same. The fact that the chemical loses its identity and is consumed will not detract from the fact that there is delivery of the same to awarder. The property in the chemical is passed on to the awarder the moment it is put into the effluent by the assessee. Accordingly, sale of chemical took place in the execution of works contract which is exigible to tax. [Enviro Chemicals vs. State of Kerala. 2011 (70) Kar. L.J 561 (HC) FB)] ● In the present writ petition, circular No. 19/03-04 dated 11-112003 passed by The Commissioner of Commercial Taxes in Karnataka, Bangalore was challenged. The Commissioner in the said circular instructed the subordinate authorities to levy tax on the sale of polished granite stone obtained from rough granite stone. The Commissioner referred to Part ‘S’, Entry 7 of Second Schedule to the Karnataka Sales Tax Act, 1957 to hold that the polished and unpolished granite stones are separate commodities. However, based on the decision in the case of M/s. Foredge Granite Private Limited it was held that merely because in the said Schedule the polished and unpolished granite stones fall under separate heads, it cannot be said that they are two separate commodities. Under section 5(3)(a) of the Karnataka Sales Tax Act, 1957,

granite stone is subject to single point tax leviable on first successive dealers in State and hence tax cannot be levied on subsequent sale of polished granite stones obtained by polishing rough granite stones. Hence such instruction given in the circular is unsustainable in law. Accordingly, writ petitions were allowed. [Vishwakarma Granite Tiles, Ilkal, Bagalkot District vs. The Commissioner of Commercial Taxes in Karnataka, Bangalore and others. 2011 (70) Kar. L.J 595 (HC)] SERVICE TAX ● The appellant, in pursuant to conversion into a private limited company from partnership firm, had taken the credit of accumulated Modvat credit which was available to the firm in terms of Rule 10 of Cenvat Credit Rules, 2004. On an audit objection that such credit cannot be availed suo moto, the appellant reversed the same. Subsequently on realisation that in terms of Rule 10 no permission is required, the appellant again reversed the debit entry and took the credit. The Revenue contended that such suo moto re-credit was not permissible and interest in respect of the same was confirmed. However, it was held that no formal permission is required from the Central Excise officers for such credit based on the decision of the Tribunal in the case of Hewlett Packard (I) Sales (P) Limited [2007 (6) STR 155 (Tribunal)] and Solaris Bio-chemicals Limited [2005 (179) ELT 216 (Tri-Mumbai)]. The denial of credit on this ground is not justified and accordingly the impugned order was set aside. Since the admissibility of credit on merits was not adjudged by the lower authorities, the matter was remanded to decide on the

availability or otherwise of the credit on merits. Flex Art Foil Private Limited vs. Commissioner of Central Excise, Daman. 2011 (22) S.T.R 591 (Tri – Ahmd.)] ● The appellant, a manufacturer of home furnishing products chargeable to Excise Duty received Goods Transport Agency Service (‘GTA’) for transportation of the inputs to their factory and finished products to their customers and paid service tax as service recipient under Rule 2 of the Service Tax Rules, 1994. However, for payment of service tax, the appellant availed exemption under Notification no. 1/2006 ST dated 1/ 3/2006 and paid service tax on 25% of the gross amount charged. The department contended that the appellant is not eligible for exemption on the ground that a declaration to the effect that the GTA from whom the service was received has not availed Cenvat credit has not been submitted. Accordingly, a show cause notice was issued demanding service tax with interest and penalty which was confirmed by the Commissioner (Appeals). However, it was held that neither there is a provision in the said notification that such a declaration should be on the body of the consignment note nor the format for such declaration has been prescribed in the notification. The appellant has produced a certificate on its letter head that the GTA from whom the service has been received has not availed the Cenvat credit which, is sufficient for permitting the benefit of exemption under the Notification. Hence, the appeal was allowed and the impugned order was set aside. [Paliwal Home Furnishing vs. Commissioner of Service Tax, Delhi. 2011 (22) S.T.R 531 (Tri – Delhi)]

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As held by the Hon’ble Kerala High Court in the case of Malappuram Distt. Parallel Association vs. Union of India [2006 (2) STR 321 (Ker.), the provisions of Finance Act, 1994 authorizing the levy of service tax on parallel colleges are arbitrary and violative of Article 14 of the Constitution of India. Accordingly, the impugned order levying service tax was set aside and the appeal was allowed. Trichy Inst. of Management Studies (P) Limited vs. CCE, Trichy. 2011 (22) S.T.R 533 (Tri – Chennai)] ●

The respondent had paid service tax alongwith interest for delayed payment under the category of ‘Construction service’. The department issued a show-cause notice proposing to impose penalty under section 76 for the delayed payment of service tax. The assessee

filed an appeal before the Commissioner (Appeals), who reduced the penalty invoking section 80 and such reduction was upheld by the Tribunal. However, it was held that section 80 overrides section 76 and no penalty shall be imposed if the assessee proves that there was reasonable cause for the delay. However, the provision does not say that a reduced quantum of penalty is imposable. It is not possible to envisage a discretion as being vested in the authority to levy penalty below the prescribed limit. Hence, the impugned order of the Tribunal was quashed and set aside and the matter was restored to the Tribunal to decide the appeal afresh. [Commissioner of Central Excise & Customs vs. V.M. Constructions. 2011 (22) S.T.R 520 (Guj.)]

Advt.

The appellants were conducting classes for students enrolled in distance education programme of Alagappa University. The department levied service tax in respect of the training and coaching provided by the appellants. The appellants contended that the students who take coaching in the classes conducted by them obtain Diploma/ Degree from the University. The institution run by them is like a parallel college where students who are not able to go to regular colleges attend the classes. Since the regular colleges are exempted from paying service tax, they should also be exempted from service tax. However, it was held that the fact that the institution run by appellants is like a parallel college has been supported by the Memorandum of Understanding with the University.

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Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

Certificate Course on Indirect Taxes By Indirect Taxes Committee of ICAI The Fast growing Indian Economy expects the revolutions in the Taxation Framework and in the current scenario we are waiting for a compelling and energetic turnaround in the indirect taxes. Indirect taxes consist of customs duty on import of goods, excise duty on manufacture of goods, Value Added Tax (VAT) and Central Sales Tax (CST) on sale of goods; and service tax on specified services provided in India. The multiplicity of indirect taxes have been the result of successive government policies, which viewed indirect taxes as a means to garner additional revenue rather than focusing on a robust indirect tax regime based on sound fiscal revenue principles. The final destination of the reform process would be the introduction of Goods & Services Tax (GST) in lieu of excise duty, VAT, CST and Service Tax. The idea of a Uniform GST across goods and services by 2012 reiterate the need for harmonization to start with at the federal level of the two taxes (Central GST and State GST). The Indirect tax certificate course by the Council of ICAI of India has decided to launch a Certificate course at Bangalore to be held from 9th July 2011. The objective is to make an attempt to modernize the Indirect tax law with the forthcoming laws GST under the different Central and State laws in India. The levy of Indirect taxes is not free from varied interpretations and practical difficulties which would surface during the course of implementation of the levy. The onus shall be on the Tax experts including the Chartered Accountants to convert the potential challenges that lie ahead into opportunities. Therefore to avail the opportunities, the course can be pursued by the members of the ICAI and Students of the ICAI who have completed final course. The course covers the important aspects of Central Excise Duty, Custom Duty, Service Tax and VAT. The President, Vice president, Chairman and vice chairman of Indirect tax Committee are expected to lead the First technical session, who will be introducing on Areas of Opportunity in Indirect tax and Impact of indirect tax on Products and Services. Various Eminent speakers from different Expert Areas with the abundance of knowledge will enlightens on Indirect tax will discuss the various provisions and case laws as applicable under the Central Excise, Customs, Service Tax and State VAT laws. The Central Excise will cover levy, Mechanism, CENVAT Credit Rules, Basic Procedure with common errors, SSI Exemptions and other exemptions, Job work principles, Audit, Demand and Penalties and other relevant practical cases as applicable. The Eminent experts will be Mr.V Lakshmikumaran, Mr.Vaitheeswaran, CA. Rajesh Kumar T R,CA. Anand N, Mr. Mahesh Jaisingh, CA. Raghavendra C R, Mr. Anirudh, etc. The State VAT will cover Concepts of VAT, Input tax credit restrictions, Composition schemes, Registration and Documentation under VAT law, Levy of CST, Import- High sea sale/Exports- Deemed Exports, Statutory Forms, Deemed sale/ Interstate works contract, Accounts and Audit under State VAT and CST law. The Eminent Speakers like CA. S Venkataramani, CA. K K Chythanya, CA. Vishnumurthy H, CA. Badri, CA.Naveen Rajpurohith, CA. Madhur Harlalka, CA. Annapurna K, etc.

The Customs law will cover levy, taxable event, Components of custom duties, Import Valuation with procedure, SEZ and Warehousing, Exemptions from custom duty , Export Valuation/ Export procedure, Refund/Demand/Remission/abatements, Duty drawback, Demand and Penalties and Appeals. The Eminent speakers subject to confirmation are Mr. Arvind Dattar, CA. Jatin Christopher, CA. Chidanand Urs, etc. The Service tax law will cover levy and classification, major exemptions and abatements, Export and Import Rules, Valuation, Composition scheme, CENVAT Credit, Aspects of construction service, Basic Procedures, Relevant services, Point of taxation Rules, Refund and rebates, Penalties , Demand and Refund and Rebates. The Eminent speakers subject to confirmation are CA. V Raghuraman, Mr. Tirumalai, CA. Ashok Batra, Mr. Nagendra Kumar, Mr.Rajiv Luthia, CA. Anand N, CA. Madhukar N Hiregange, etc. The Forthcoming GST law will cover Road map to GST, Constitutional Amendment Bill, Role of professionals, etc. Eligibility Only the members of the ICAI and the students of the Institute who have passed the CA Final examination are eligible to pursue this course. Course Duration and Course Hours 12 days [8 hours] or 21 [4.30 hours] half days- [Including half day allocated for examination] Fees for the Course Rs. 20,000 [Including fees for the immediate examination to be held after completion of the Course] Fee can be paid through Cheque/DD in favour of “Bangalore Branch of SIRC of ICAI” payable at Bangalore at the following branch address: ‘ICAI Bhawan’, 16/O, Millers Tank Bed Area, Vasanth Nagar, Bangalore – 560052 Certificate A certificate will be awarded to the members on successful completion of course and passing the examination. CPE Hours 70 Hours (50 Structured and 20 Unstructured) Location The first course is being launched at Bangalore and accordingly the registrations are open for Bangalore Centre only. Days & Date for the Course 9th July, 2011 onwards on each Saturday and Sunday unless otherwise informed. For Registration & further details Tel No.: 080-30563500/541 Course Coordinator for Bangalore Centre : CA.Sanjay M Dhariwal Email: bangalore@icai.org / dcobangalore@icai.org Please visit : www.icai.org / www.bangaloreicai.org for further information.

13

July 2011


IMPORTANT DATES TO REMEMBER DURING THE MONTH OF JULY 2011 5th July 2011

Payment of Excise Duty for June 2011 Payment of Service Tax for June 2011 by Corporates Payment of Service Tax for Apr-June 2011 for non-corporates

6th July 2011

E-Payment of Excise duty for June 2011 E-Payment of Service Tax for June 2011 for corporates E-Payment of Service Tax for Apr-June 2011 for non corporates

th

7 July 2011

Deposit of TDS/TCS Collected during June 2011

10th July 2011

Monthly Returns for Production and Removal of Goods and CENVAT Credit for June 2011

STPI Monthly Returns Monthly Return of excisable Goods Manufactured & Receipt of Inputs & Capital Goods by Units in EOU,STP,HTP for June 2011 Monthly Returns of Information relating to Principal Inputs for June 2011 by Manufacturer of Specified Goods who Paid Duty of Rs.1 Crore or More during Financial Year 2010-11 By PLA/ CENVAT/Both 15th July 2011

Payment of EPF Contribution for June 2011 Return of Employees Qualifying to EPF during June 2011 Quarterly Return and Payment of CST and VAT Collected During April 2011 to June 2011 Quarterly e-TDS for the period April to June 2011 (Form 24Q, 26Q, 27Q and 27EQ)

20th July 2011

Monthly Return and Payment of CST and VAT Collected During June 2011

21st July 2011

Deposit of ESI Contributions and Collections for June 2011

25th July 2011

Consolidated Statements of Dues and Remittances Under EPF and EDLI for the June 2011 Monthly Returns of Employees Joined the organisation during June 2011 Monthly Return of Employees left the organisation during June 2011

th

30 July 2011

Quarterly TDS and TCS certificates (Form 16A/ Form 27D) as per section 203

31th July 2011

Income tax returns by non-corporate assesses not subject to audit (u/s 139(1)).

BRANCH LEVEL ELOCUTION AND QUIZ CONTEST Organised by Bangalore Branch of SICASA On Saturday, July 16, 2011 Venue: ICAI Bhawan, 16/0, Millers Tank Bed Area, Vasanth Nagar, Bangalore – 560052

WHO CAN PARTICIPATE IN THE CONTEST? Students registered with the Institute for Final Course, Professional Competence Course and Integrated Professional Competence Course are eligible to participate in the contest. However, a person who has qualified in the final examination and completed articles/audit training is not eligible to participate. For complete details of the contest, scheme and registration, please log on to our website www.bangaloreicai.org

July 2011

14


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

BANGALORE BRANCH OF SOUTHERN INDIA REGIONAL COUNCIL OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA “ICAI Bhawan”, #16/O, MILLERS TANK BED AREA, BANGALORE – 560052

NOTICE OF ANNUAL GENERAL MEETING NOTICE is hereby given that the 49th Annual General Meeting of the members of the Bangalore Branch of Southern India Regional Council of the Institute of Chartered Accountants of India, will be held on Tuesday, 26th July 2011, at 6:30PM at S.Narayan Auditorium, “ICAI Bhawan”, #16/0,MILLERS TANK BED AREA , BANGALORE -560052 to transact the following business. 1. To receive the Annual report of the Bangalore Branch for the year 2010-2011. 2. To adopt the Audited Accounts of the Bangalore Branch for the year ended 31st March 2011. 3. To transact any other business that may be brought out before the meeting with the permission of the “Chair”. By order of the Managing Committee Sd/(CA. Ravindranath.S.N) SECRETARY Place: Bangalore Date: 29.06.2011 Note: 1. Members are requested to bring the copy of annual report with them for the Annual General meeting. 2. Members are requested to send in queries if any on audited financial statements for the year ended 31-32011,in advance to the Branch by post or email

MANAGING COMMITTEE CA. Venkatesh Babu.T. R CA. Nithin.M CA. Ravindranath.S.N CA. Prasad.S.R CA. Shivakumar.H CA. Govind Bhat.N CA. Shambhu Sharma.H CA. Babu.K CA. Madhukar N Hiregange CA. Raghu.K CA. Viswanath.K CA. Srinivas.C.S CA. Suresh.P.R

Chairman Vice-Chairman Secretary Treasurer Chairman, SICASA Member Member Member Ex-officio, Central Council Ex-officio, Central Council Ex-officio, Regional Council Ex-officio, Regional Council Ex-officio, Regional Council

15

July 2011


49th Annual Report

July 2011

Dear Members,

Seminars :

We are pleased to present the 49th Annual Report of the Bangalore Branch of SIRC of the Institute of Chartered Accountants of India, together with the audited accounts for the year ended 31st March 2011. The Bangalore Branch, representing the Institute of Chartered Accountants of India, New Delhi is one of the most Dynamic and Active Branch. This is the largest Branch in the country catering to the need of over 8,000 members and over 25,000 students. The Branch conducts various programmes for the benefit of Members &Students like Conferences, Seminars, Workshops, Tele-conferences, Study Circle Meetings, and Study Tours on the subjects of professional interest. For the year 2011-12 following Office Bearers have been elected in the Managing Committee Meeting held on 18th February, 2011 OFFICE BEARERS -2011-12 CA. VenkateshBabu.T.R Chairman CA. Nithin. M Vice Chairman CA. Ravindranath.S.N Secretary CA. Prasad.S.R Treasurer CA. Shivakumar.H Chairman, SICASA OFFICE BEARERS -2010-11 CA. ShambhuSharma. H Chairman CA. VenkateshBabu.T.R Vice chairman CA. Babu.K Secretary CA. Ravindranath.S.N Treasurer CA. Nithin.M Chairman- SICASA The Theme for the year 2011 – 12 is ‘Way forward’ - Innovate | Integrate Way forward would remind us of the efforts to be taken in light of the new changes and its consequent challenges facing our members, students and the profession but also reminds us of the position our Branch has secured at this crucial juncture of 50 years and all the achievements and accolades our Branch has gathered over these years .It would also remind us of our efforts to retain and continue the glory achieved by the Branch. The need of the hour is to “Innovate” and to “Integrate” for the growth and betterment of our esteemed profession. Innovation requires creativity and human ingenuity and this is primarily required to shred the “Transactional” image of our profession. Bangalore Branch during this year would focus on integrating technology/networking to innovate the future accounting/ auditing arena. The Branch has conducted the following important events during the year: Conferences : ❖ State level CPE Conference – Jnana Manthna ❖ National Conference on International Taxation ❖ National conference on International Financial Reporting Standard (IFRS) ❖ CPE conference - Jnanaarjana

❖ Bank Branch Audit ❖ Banking & Insurance ❖ Mergers &Acquisitions- Strategising for Growth &Sustainability ❖ Emerging Economic Challenges for Industry ❖ KVAT –Audit ❖ Capacity Building Measures for CA Firms ❖ Practice and Procedures before the CESTAT ❖ Transfer Pricing ❖ Audit of public sector undertakings

16

Workshops : ❖ Tax Deducted at source ❖ Basics of International Taxation ❖ MS Excel – Relevant to Bank Audit ❖ Communication Skills ❖ Direct Tax Code During the year some of the important dignitaries who visited the Branch and visited for various programmes organized by Branch            

CA. G. Ramaswamy, President, ICAI. CA. Amarjit Chopra, Past President, ICAI. CA. T.V. Mohandas Pai, Director, Infosys. Ms. Renuka Kumar, Joint Secretary, Ministry of Corporate Affairs. Mr. R. Bandyopadhyay, Secretary, Ministry of Corporate Affairs. His Excellency H.R. Bharadwaj, Governor of Karnataka. Sri. Mathoor Krishnamoorthy, Executive Director, Bharathiya Vidya Bhawan, Bangalore. Mr. D.H. Shankaramurthy, Chairman, Vidhana Parishat, Karnataka. CA. K. Rehman Khan, Honourable Deputy Chairman of Rajya Sabha, New Delhi. Dr. M. Veerappa Moily, Honourable Union Minister for Law & Justice, New Delhi. Dr. Devi Shetty, Chairman, Narayana Hrudayalaya. Mr. Sanjai Verma, CIT (CPC).

Sports : Branch has Conducted "XIII Annual Badminton Tournament" between Members of Bangalore and Officials of Income Tax Department Bangalore in which members emerged as winners and retained the rolling shield. Management Development Programme : The Bangalore Branch conducts Management Development Programmes wherein officials of various public and private companies including govt. organisations are trained in field of finance and accounting. The Branch has won many accolades from the participating companies for the rich knowledge dissemination.


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

The flagship courses of MDP are: ❖ Course on Finance for Non-Finance Executives (FNFE). ❖ Course on Corporate Accounting Finance and Business laws (CCAFBL). ❖ Weekend Workshops on International Taxation. We have also conducted in house training programmes for the executives of KPCL, Tyco Electronics & KSFC on the following topics: ❖ Banking ❖ Working Capital Management ❖ Tax Management ❖ Indian Accounting Standards ❖ Information System Audit ❖ Income Tax ❖ Budget & Budgetary Control

Students Activities : The Branch has regularly organizing and conducting Coaching classes, Crash courses, Courses in Computer Training for the benefits of the students. The coaching classes conducted at the Branch are of high quality and cost effective also in comparison with other facilities available. Branch along with SICASA Bangalore Organised Two Day National Convention of CA Students “Sammilana” which was attended by around 1500 Students from across the country. 14 Batches of Course in General Management and Communication Skills were conducted at the Branch premises. 30 Batches of Integrated Professional competency course (Orientation Programme) were conducted at Branch premises

Campus Interviews – 2009 Sl. No

March – April -2010

August – September 2010

Candidates who had opted for the centre

No. of Companies participated

Candidates who had opted for the centre

No. of Companies participated

166

16

230

17

1.

RANK HOLDERS PCC MAY 2010 EXAM Sl. No. Reg No. 1 2

Sl. No. 1 2 3

Sl. No. 1 2 3 4 5 6

Roll No.

Name of the Student

Marks Obtained

Rank

22365 22030

SHRUTI SODHANI GIREESHA.T.L

466 401

1 43

Reg No.

Roll No.

IPCC MAY 2010 EXAM Name of the Student

Marks Obtained

Rank

SRO0238362 SRO0286455 SRO0255296

26423 26514 26962

SIDDARTH RSUNDER RAM PALAK BHAUWALA SURAJ.S

497 494 461

13 14 45

FINAL(NEW) MAY 2010 EXAM Name of the Student PRIYANKA.G ROSHAN.S MANOJ.M.SHENOY ANKIT BACHHAWAT ANANTH.N RAKESH BORDIA

Marks Obtained 480 469 454 447 446 444

Rank 16 23 38 45 46 47

WRO0286612 SRO0256262

Reg No. SRO0190194 SRO0195454 SRO0192995 SRO0190270 SRO0190322 SRO0191623

Roll No 48358 48361 48312 48126 48187 48231

PCC NOV 2010 EXAM Sl. No.

Reg No.

Roll No.

Name of the Student

Marks Obtained

Rank

1

SRO0233516

18553

JESWIN JOY JOHN

458

1

2

SRO0227897

18718

NIKHILA BALLAL.N

418

12

3

SRO0213123

19387

SUNIL KUMAR.R

395

25

4

SRO0256962

19423

NATESH.K.N

381

36

5

SRO0273674

19345

NARASIMHULU.K

375

42

6

SRO0245027

18450

VIGNESH PAI.T

368

49

17

July 2011


IPCC NOV 2010 EXAM Sl. No.

Reg No.

Roll No.

Name of the Student

Marks Obtained

Rank

1

SRO0245915

124823

MANASA.V.NAYAK

522

13

2

SRO0221349

125273

NIDHI.K.KUMAR

501

28

3

SRO0285966

124813

RAVISHANKER.V

486

42

Marks Obtained

Rank

FINAL(OLD) NOV 2010 EXAM Sl. No.

Reg No.

Roll No.

Name of the Student

1

SRO0212816

10442

SUJAY.K.N

478

1

2

SRO0209808

9472

NAGARAJA.T.S

453

20

3

SRO0193324

10348

SOUMYA SURENDRAN

453

20

4

ERO0058001

10481

NISHA TULSYAN

440

32

Marks Obtained

Rank

FINAL(NEW) NOV 2010 EXAM Sl. No.

Reg No.

Roll No.

Name of the Student

1

SRO0208189

50289

PARVATHI.R

511

25

2

SRO0222624

50132

VISHVAS.B.S

502

32

3

SRO0193668

50240

CHINMAYA HEGDE

494

39

Membership : As on 31.03.2011 the membership of the Bangalore Branch which includes the members of Hosur and Tumkur was 7882. Branch Achievement : Bangalore Branch has been adjudged as the Best Branch of SIRC during the year 2010 jointly with Hydrabad Branch of SIRC of ICAI. Managing Committee Meetings : During the period from 1st April 2010 to 31st March 2011, 9 meetings were held. Accounts : The audited financial statement of the Branch has been published in this issue of the newsletter. Acknowledgements : The Managing Committee wishes to place on record deep appreciation for the Guidance, Support and Services rendered by various Persons, Organisations and Institutions. ❖ President, Vice President, Past Presidents and Central and Regional Council Members of ICAI ❖ Past Chairmen of the Bangalore Branch ❖ Course Directors, Speakers, Coordinators of the various programmes ❖ President and Executive Members of KSCAA

July 2011

18

❖ Faculty of Coaching Classes and Management Development

Programmes. ❖ Statutory Auditors M/s N.N. Yuvraj & Associates,

❖ ❖ ❖ ❖ ❖ ❖

Chartered Accountants and Internal Auditors M/s. MGRIT & Co, Chartered Accountants Advertisers of Newsletters and Sponsors of Programmes/ Activities Our Bankers Canara bank, Syndicate Bank, Punjab National Bank and Corporation Bank Our Printers M/s Jwalamukhi Mudranalaya Pvt Ltd. Our photographer Sri M.S.Nagaraj Officers and staff for their sincere and dedicated efforts in the overall administration of the Branch affairs. Every member and student of the Branch for their unstinted support in the various activities of the Branch directly or indirectly For and on behalf of Managing Committee Sd/(CA. Ravindranath.S.N) Secretary

Place: Bangalore Date: 29.06.2011


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

AUDITOR’S REPORT 1.

We have audited the attached Balance sheet of Bangalore Branch of SIRC of ICAI, as at 31st March 2011 and the Income and Expenditure account for the year ended on that date, annexed thereto. These financial statements are the responsibility of the management and its managing committee. Our responsibility is to express an opinion on these financial statements based on our audit.

2.

We conducted our audit in accordance with generally accepted auditing standards in India. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework and are free of material misstatements. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statements. We believe that our audit provides a reasonable basis for our opinion.

3.

Further to our comments in the notes to accounts, we report that: a)

We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

b)

In Our opinion, proper books of account have been kept by the branch so far as it appears from our examination of the books.

c)

The Balance Sheet and the Income and Expenditure Account dealt with by this report are in agreement with the books of account.

d)

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give a true and fair view in conformity with the accounting principles generally accepted in India and/or the directions received by the branch from the Central Council. i)

In the case of Balance Sheet, of the state of affairs of the Bangalore Branch of SIRC of ICAI as at 31st March 2011 and

ii)

In the case of Income and Expenditure Account, of the excess of income over expenditure for the year ended on that date. For N.N. YUVARAJ & ASSOCIATES., Chartered Accountants ICAI FRN 005137 S

Place : Bangalore Date : 06.06.2011

Sd/(U. D. Prithvi raj) Partner M.No. 214307

19

July 2011


BANGALORE BRANCH OF SIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA BALANCE SHEET AS ON 31.03.2011 PARTICULARS SOURCES OF FUNDS GENERAL RESERVE OPENING BALANCE ADD: SURPLUS GENERAL RESERVE BALANCE TRANSFER FROM EARMARKED FUNDS TRANSFER TO EARMARKED FUNDS TOTAL GENERAL RESERVE EARMARKED FUNDS OPENING BALANCE ADD: ADDITIONS SUB - TOTAL ADD: INTEREST INCOME SUB - TOTAL LESS: EXPENSES/ADJUSTMENT TOTAL EARMARKED FUNDS CURRENT LIABILITIES FEES RECEIVED IN ADVANCE CREDITORS FOR EXPENSES OTHER LIABILITIES SUB TOTAL OF CURRENT LIABILITIES INTER UNIT BALANCES: CAPITAL GRANT RECEIVED ICAI CURRENT ACCOUNT ICAI PUBLICATION PAYABLE A/C SUB-TOTAL OF INTERUNIT BALANCES TOTAL ASSETS/APPLICATION OF FUNDS FIXED ASSETS-NET BLOCK EARMARKED INVESTMENTS OTHER INVESTMENTS CURRENT ASSETS: STATIONERY STOCK ETC OTHER RECEIVABLES ADVANCES & PREPAYMENTS CASH & BANK BALANCES INTER UNIT BALANCES: CENTRAL COUNCIL CURRENT A/C PUBLICATION STOCK TRANSFER A/C TOTAL DEBIT OF INTER UNIT BALANCES TOTAL Notes to Accounts form integral part of these financial statements

SCHEDULE

20

31-03-2010 Rs.

20,805,716 618,502 21,424,218 1,036,625 22,460,843

16,266,165 4,577,412 20,843,577 2,116,139 (2,154,000) 20,805,716

1

26,564,751 5,322,000 31,886,751 2,074,070 33,960,821 (1,036,625) 32,924,196

18,045,101 9,666,000 27,711,101 983,239 28,694,340 (2,129,589) 26,564,751

2 3 4

1,428,124 1,585,292 732,016 3,745,432

1,884,647 1,364,209 554,897 3,803,753

6,005,327 3,831,808 1,768,031 11,605,166 70,735,637

6,005,327 99,808 1,525,301 7,630,436 58,804,656

7 8 9

9,716,813 32,924,196 20,994,121

10,854,765 26,564,751 14,885,326

10 11 12 13

79,875 1,001,401 741,805

5,825 329,924 815,218 1,595,540

14 15

3,628,720 1,648,705 5,277,425 70,735,637

2,527,492 1,225,815 3,753,307 58,804,656

5 6

22

for Bangalore Branch of SIRC of ICAI Sd/Sd/Sd/(CA. Venkatesh Babu T.R) (CA. Ravindranath S.N) (CA. Prasad S.R) CHAIRMAN SECRETARY TREASURER Place : BANGALORE Date : 06/06/2011 July 2011

31-03-2011 Rs.

As per our Report of even date for N.N.Yuvaraj & Associates Chartered Accountants Sd/(CA. Prithvi Raj U.D.) PARTNER


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

BANGALORE BRANCH OF SIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31.03.2011 PARTICULARS

SCHEDULE

INCOME MEMBERSHIP FEE GRANT AUDIT FEES GRANT SUB-TOTAL NEWS LETTER INCOME SEMINAR INCOME GMCS COURSE INCOME IPCC ORIENTATION INCOME INTEREST ON INVESTMENTS OTHER INCOME INCOME FROM COACHING CLASSES COMMISSION ON SALE OF PUBLICATIONS INCOME FROM ITT COURSE FEE PRIOR PERIOD ADJUSTMENTS TOTAL EXPENDITURE SALARY & STAFF EXPENSES PRINTING, STATIONERY & PHOTOCOPYING NEWSLETTER EXPENSES POSTAGE, TELEPHONE AND COURIER RENT ELECTRICITY AND WATER REPAIRS & MAINTENANCE TRAVEL - MEMBERS CONVEYANCE AND TRAVEL - STAFF MAGAZINE & PERIODICALS LAPTOP HIRING CHARGES INTERNAL AUDIT FEES STATUTORY AUDIT FEES PROFESSIONAL & CONSULTANCY FEES LEGAL FEES SEMINAR EXPENSES GMCS COURSE EXPENSES IPCC ORIENTATION EXPENSES OTHER EXPENSES EXPENDITURE ON ITT COURSE FEE EXPENSES TOWARDS COACHING CLASSES PRIOR PERIOD ADJUSTMENTS

16 17

18

19

20

21

SUB - TOTAL DEPRECIATION TOTAL SURPLUS APPROPRIATIONS MAINTENANCE FUND BUILDING MAINTENANCE FUND CA STUDENTS EDUCATION FUND ITT RESERVE FUND FIXED ASSET ACQUISITION FUND SHARE OF HO ON ITT COURSE FEE (2010-11) SHARE OF HO ON ITT COURSE FEE (2007-2010) BALANCE TRANSFERRED TO GENERAL RESERVE Notes to accounts form integral part of these financial statements

Sd/(CA. Venkatesh Babu T.R) CHAIRMAN Place : BANGALORE Date : 06/06/2011

for Bangalore Branch of SIRC of ICAI Sd/(CA. Ravindranath S.N) SECRETARY

31-03-2011 Rs.

31-03-2010 Rs.

808,400 46,326

770,600 99,270

854,726 105,800 13,884,020 3,100,500 4,189,500 1,554,608 443,526 3,206,143 643,321 7,288,000 -

869,870 173,000 10,931,744 2,724,500 5,077,500 1,977,722 784,254 3,178,953 433,529 9,248,000 582,989

35,270,144

35,982,061

2,046,601 190,028 1,230,616 75,219 550,412 1,170,608 10,999 65,777 8,954 74,453 19,854 200,780 9,965,297 2,138,206 1,870,281 272,502 1,503,358 1,934,765 113,750

1,717,131 463,639 939,542 81,505 505,322 1,609,364 23,614 39,354 10,851 27,234 79,416 19,854 163,787 30,000 8,463,456 1,787,512 2,217,101 414,813 1,255,725 1,622,459 75,344

23,442,460 2,155,182 25,597,642 9,672,502

21,547,022 2,345,627 23,892,649 12,089,412

750,000 500,000 250,000 1,822,000 2,000,000 1,093,200 2,638,800

1,000,000 1,500,000 200,000 2,312,000 2,500,000 -

618,502

4,577,412

22

Sd/(CA. Prasad S.R) TREASURER

As per our Report of even date for N.N.Yuvaraj & Associates Chartered Accountants Sd/(CA. Prithvi Raj U.D.) PARTNER

21

July 2011


BANGALORE BRANCH OF SIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA SCHEDULES FORMING PART OF BALANCE SHEET AS ON 31.03.2011 SCHEDULE - 1 : EARMARKED AND OTHER FUNDS PARTICULARS

AS AT ADDITIONS INCOME DEDUCTIONS 01.04.2010 Rs.

Rs.

Rs.

Rs.

AS AT 31-03-2011

AS AT 31-03-2010

Rs.

Rs.

ENDOWMENT FUNDS VISWESHWARAIAH PRIZE FUND

92,050

-

5,533

-

97,583

92,050

GURUPRASAD PRIZE FUND

60,144

-

1,963

-

62,107

60,144

BHANUMURTHY PRIZE FUND

17,037

-

951

-

17,988

17,037

SEETHARAMAIAH PRIZE FUND

121,150

-

10,733

-

131,883

121,150

TOTAL (A)

290,381

-

19,180

-

309,561

290,381

STUDY CIRCLE SERIES FUND

528,318

-

30,684

-

559,002

528,318

CA STUDENTS EDUCATION FUND

676,049

250,000

53,720

-

979,769

676,049

BUILDING MAINTENANCE FUND

9,344,347

500,000

764,196

-

10,608,543

9,344,347

793,844

-

63,110

-

856,954

793,844

FIXED ASSET ACQUISITION FUND

6,794,815

2,000,000

545,521

357,125

8,983,211

6,794,815

MAINTENANCE FUND

3,601,678

750,000

277,051

-

4,628,729

3,601,678

ITT RESERVE FUND (C.Y 18,22,000 P.Y 23,12,000)

4,535,319

1,822,000

320,608

679,500

5,998,427

4,535,319

DESIGNATED FUNDS

LIBRARY CORPUS FUND

July 2011

TOTAL (B)

26,274,370

5,322,000 2,054,890

1,036,625

32,614,635

26,274,370

GRAND TOTAL (A) + (B)

26,564,751

5,322,000 2,074,070

1,036,625

32,924,196

26,564,751

22


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

BANGALORE BRANCH OF SIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA SCHEDULES FORMING PART OF BALANCE SHEET AS ON 31.03.2011 PARTICULARS FEES RECEIVED IN ADVANCE GMCS COURSE FEES IPCC ORIENTATION ADVANCE CCAFBL TRAINING PROGRAMME CPT COACHING CLASS INFORMATION TECHNOLOGY TRAINING FINAL COACHING CLASS SEMINAR ON INVESTMENT BANKING IPCC COACHING CLASS TOTAL CREDITORS FOR EXPENSES STATUTORY AUDIT FEES SECURITY CHARGES MISC LIABILITIES PRINTING AND STATIONERY POSTAGE, COURIER AND TELEPHONES INTERNAL AUDIT FEES PROFESSIONAL FEES RENT, ELECTRICITY AND WATER FACULTY FEES PAYABLE OT, SALARY AND STAFF WELFARE EXPENSES CATERING EXPENSES BUILDING MAINTENANCE SEMINAR EXPENSES COACHING CLASS EXPENSES TOTAL OTHER LIABILITIES SECURITY DEPOSIT - EX EMPLOYEE TDS PAYABLE MEDICAL REIMBURSEMENT/ RETENTION MONEY -STAFF EXCESS CREDIT FROM BANK SUNDRY LIABILITIES LEASE RENT PAYABLE SICASA BANGALORE TOTAL ICAI CURRENT A/C ICAI - GRATUITY GRANT PAYABLE SHARE OF ITT FEES PAYABLE TO H.O TOTAL ICAI PUBLICATION PAYABLE A/C ARTICLE REGISTRATION FORMS PUBLICATIONS REVISION TEST PAPERS STUDY MATERIALS SUGGESTED ANSWERS BOS - GMCS MATERIAL PAYABLE TOTAL

SCHEDULE

31-03-2011 Rs.

31-03-2010 Rs.

666,000 174,000 206,770 147,462 212,000 250 21,642

531,020 268,500 103,230 155,897 800,000 8,000 18,000

1,428,124

1,884,647

19,854 23,231 7,602 151,998 1,225 67,008 29,780 101,463 588,613 23,527 20,509 532,482 18,000

19,854 17,418 15,601 151,607 10,607 35,737 7,200 102,795 919,694 6,484 51,622 25,590 -

1,585,292

1,364,209

1,000 154,641 21,750 80,375 17,500 456,750

1,000 160,522 36,500 20,000 55,125 12,500 269,250

732,016

554,897

99,808 3,732,000

99,808 -

3,831,808

99,808

4,100 778,073 68,858 195,309 496,691 225,000

17,850 577,813 77,638 48,094 478,906 325,000

1,768,031

1,525,301

2

3

4

5

6

23

July 2011


BANGALORE BRANCH OF SIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA SCHEDULES FORMING PART OF BALANCE SHEET AS ON 31.03.2011 SCHEDULE - 7 : FIXED ASSETS PARTICULARS

AT BRANCH PREMISES AIRCONDITIONER BIO-METRIX CANOPY COMPUTERS CCTV DIGITAL CAMERA ELECTRICAL FITTINGS FIRE ALARM SYSTEM FURNITURE FURNITURE-KITCHEN UTENSILS LAPTOP LCD PROJECTOR LIBRARY BOOKS LIFT NETWORKING OFFICE EQUIPMENTS PRINTERS INTERIOR AUDITORIUM INTERIORS SOFTWARE UPS PLASMA TV WHITE BOARDS WATER CONTROLLER ITT AT BRANCH PREMISES COMPUTER LAB A/C COMPUTER LAB COMPUTERS FURNITURE-COMPUTER LAB COMPUTER LAB UPS ITT SOUTH CENTER AIRCONDITIONER COMPUTER LAB COMPUTERS LCD PROJECTOR PRINTERS INTERIOR DECORATION UPS FURNITURE NETWORKING ELECTRICAL FITTINGS GRAND TOTAL PREVIOUS YEAR

July 2011

24

RATE OF DEP. (%)

WDV AS ON ADDITIONS DELETIONS 01.04.2010 (In Rs) (In Rs) (In Rs)

TOTAL

DEPRECIATION

(In Rs)

(In Rs)

WDV ON 31.03.2011 (In Rs)

15% 15% 10% 60% 15% 15% 10% 10% 10% 10%

601,653 72,187 219,816 597,453 67,889 2,850,734 16,328

20,500 191,098 7,899 -

-

601,653 20,500 72,187 219,816 191,098 7,899 597,453 67,889 2,850,734 16,328

90,248 851 7,219 131,890 4,493 1,078 59,745 6,789 285,073 1,633

511,405 19,649 64,968 87,926 186,605 6,821 537,708 61,100 2,565,661 14,695

60% 60% 100% 10% 60% 15% 15% 10% 10% 60% 15% 15% 10% 15%

108,995 198,949 227,512 75,772 205,606 66,596 1,328,599 1,937,779 10,436 146,293 48,611 5,961 -

126,370 2,326 5,932 3,000

-

108,995 198,949 126,370 227,512 75,772 207,932 72,528 1,328,599 1,937,779 10,436 146,293 48,611 5,961 3,000

65,397 119,369 126,370 22,751 45,463 30,862 10,379 132,860 193,778 6,262 21,944 7,292 596 375

43,598 79,580 0 204,761 30,309 177,070 62,149 1,195,739 1,744,001 4,174 124,349 41,319 5,365 2,625

10% 60%

44,456 133,942

396,000

19,395

44,456 510,547

4,446 279,639

40,010 230,908

10%

168,052

-

-

168,052

16,805

151,247

15%

122,922

283,500

-

406,422

50,594

355,828

15% 60%

102,000 420,000

-

-

102,000 420,000

15,300 252,000

86,700 168,000

60% 15% 10% 15% 10% 60% 10%

29,991 8,122 350,325 379,896 129,037 43,324 135,529 10,854,765 10,888,154

1,036,625 2,385,229

-

29,991 8,122 350,325 379,896 129,037 43,324 135,529 11,871,995 13,200,392

17,995 1,218 35,033 56,984 12,904 25,994 13,553 2,155,182 2,345,627

11,996 6,904 315,292 322,912 116,133 17,330 121,976 9,716,813 10,854,765

19,395 72,991


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

BANGALORE BRANCH OF SIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA SCHEDULES FORMING PART OF BALANCE SHEET AS ON 31.03.2011 SCHEDULE - 8 : EARMARKED AND OTHER INVESTMENTS COLUMN 'A'

PARTICULARS

VISWESHWARAIAH PRIZE FUND GURUPRASAD PRIZE FUND BHANUMURTHY PRIZE FUND SEETHARAMAIAH PRIZE FUND TOTAL (A) STUDY CIRCLE SERIES FUND CA STUDENTS EDUCATION FUND BUILDING MAINTENANCE FUND LIBRARY CORPUS FUND FIXED ASSET ACQUISITION FUND MAINTENANCE FUND ITT RESERVE FUND TOTAL (B) GRAND TOTAL (A) + (B)

In FDRs

INTEREST RECEIVABLE

Rs.

Rs.

69,158 40,533 14,468 115,000 239,159 525,788 667,196 9,288,381 728,490 6,728,529 3,591,111 4,532,562 26,062,057 26,301,216

5,533 1,963 951 10,733 19,180 30,684 53,720 764,196 63,110 545,521 277,051 320,608 2,054,890 2,074,070

COLUMN 'B'

COLUMN 'C'

TOTAL(A+B+C)

INTEREST NET RECEIVED INTEREST RECEIVABLE

BALANCE WITH INVESTMENT (GEN) Rs.

As At 31-03-2011

As At 31-03-2010

Rs.

Rs.

22,892 21,574 3,295 15,350 63,111 24,930 289,878 607,653 81,579 1,831,958 860,503 1,172,811 4,869,311 4,932,422

97,583 62,107 17,988 131,883 309,561 559,002 979,769 10,608,543 856,954 8,983,211 4,628,729 5,998,427 32,614,635 32,924,196

Rs. 1,963 726 9,200 11,889 22,400 31,025 51,687 16,225 122,797 99,936 27,554 371,624 383,513

PARTICULARS OTHER INVESTMENTS FIXED DEPOSITS WITH CANARA BANK- ITT FIXED DEPOSITS WITH PUNJAB NATIONAL BANK- ITT FIXED DEPOSITS WITH CANARA BANK RBI 8% BONDS

Rs. 5,533 225 1,533 7,291 8,284 22,695 712,509 46,885 422,724 177,115 293,054 1,683,266 1,690,557

SCHEDULE

OTHER RECEIVABLES DUE FROM EX - EMPLOYEE FEES RECEIVABLE FROM MEMBERS & STUDENTS FKCCI UNION BUDGET ANANLYSIS RECEIVABLES BANGALORE STOCK EXCHANGE RECEIVABLES KPCL PROGRAME RECEIVABLE GRANT RECEIVABLES FROM MCA TOTAL ADVANCE & PRE-PAYMENTS DEPOSITS WITH KPTCL ADVANCE - STATE LEVEL CONFERENCE DEPOSIT FOR RENT - BANGALORE SOUTH ITT CENTER DEPOSIT FOR RENT - BANGALORE READING ROOM ADVANCE TO STAFF PREPAID EXPENSES PREPAID EXPENSES- IPCC ORIENTATION ADVANCE - POST OFFICE FOR NEWSLETTER POSTING TOTAL

31-03-2010 Rs.

9

LESS : AMOUNT TO BE TRANSFERRED TO EARMARKED INVESTMENTS TOTAL STATIONERY STOCK ETC., STOCK WIRC

31-03-2011 Rs.

92,050 60,144 17,037 121,150 290,381 528,318 676,049 9,344,347 793,844 6,794,815 3,601,678 4,535,319 26,274,370 26,564,751

7,959,749 2,059,922 8,833,689 7,073,183 25,926,543 4,932,422

7,228,603 8,412,804 7,323,106 22,964,513 8,079,187

20,994,121

14,885,326

-

5,825 5,825

29,250 50,625 -

29,250 121,500 96,946 32,228 50,000

79,875

329,924

174,800 280,000 308,000 44,536 110,091 49,063 34,911

174,800 241,068 280,000 27,752 70,571 21,027

1,001,401

815,218

10

11

12

25

July 2011


PARTICULARS CASH & BANK BALANCES CANARA BANK SB A/C.80172 CANARA BANK SB A/C.10825 CANARA BANK SB A/C.9499 CANARA BANK SB A/C. 80999 CANARA BANK SB A/C.9759 PUNJAB NATIONAL BANK SB A/C. 0551 PUNJAB NATIONAL BANK SB A/C. XBRL CASH ON HAND CHEQUES ON HAND TOTAL CENTRAL COUNCIL CURRENT ACCOUNT TDS RECEIVABLE SEMINAR GRANT RECEIVABLE MEMBERSHIP FEES GRANT RECEIVABLE SUNDAY TEST EXPENSES ICAI CURRENT ACCOUNT ICAI DECENTRALISED OFFICE, BANGALORE BOS GRANT RECEIVABLE ICAI - SALARY AUDIT FEES GRANT RECEIVABLE LIBRARY GRANT MEDICAL GRANT RECEIVABLE FIRST ISA MEET RECEIVABLE ISA PT EXPENSES RECEIVABLE CPT ONLINE EXAM RECEIVABLE GST WAY FORWARD RECEIVABLE SEMINAR ON CORPORATE LAWS PROJECT PARIVARTHAN PROGRAMME EXAM EXPENSES RECEIVABLE TOTAL PUBLICATION STOCK TRANSFER ACCOUNT ARTICLED REGISTRATION FORMS PUBLICATIONS REVISION TEST PAPERS STUDY MATERIALS SUGGESTED ANSWERS GMCS MATERIALS STOCK

SCHEDULE

31-03-2011 Rs.

31-03-2010 Rs.

13 192,837 37,507 188,048 93,967 160,561 47,275 2,665 18,946 -

26,813 218,190 506,040 781,409 45,950 1,089 16,050

741,805

1,595,540

1,089,686 15,000 61,025 28,421 22,105 1,777,049 42,000 68,800 283,832 3,319 7,285 27,201 62,294 49,604 91,099 -

754,745 15,000 61,025 28,421 22,105 1,019,486 42,000 93,255 237,506 49,619 7,285 16,665 63,486 42,671 49,604 9,342 15,277

3,628,720

2,527,492

4,050 776,130 72,090 194,985 471,950 129,500

19,300 575,420 79,330 47,980 454,285 49,500

1,648,705

1,225,815

14

15

TOTAL

SCHEDULES FORMING PART OF INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31.03.2011 INTEREST ON INVESTMENTS INTEREST ON FIXED DEPOSITS / RBI BONDS INTEREST ON SB ACCOUNTS TOTAL OTHER INCOME COMMISSION RECEIVED - EXAM FORMS MISCELLANEOUS INCOME TOTAL PRIOR PERIOD ADJUSTMENTS - INCOME COACHING CLASS/SEMINAR ( HONARARIUM REVERSED) EXAM FORM COLLECTION INTERNATIONAL TAXATION 3RD BATCH DIAMOND JUBLEE MEGA CONFERENCE ITT INCOME 68TH BATCH WORKSHOP ON ACCOUNTING STANDARD BUILDING MAINTENANCE MUNICIPAL TAX EXCESS PROVISION REVERSED TOTAL

July 2011

26

16 1,371,139 183,469

1,863,489 114,234

1,554,608

1,977,722

271,185 172,341

642,038 142,216

443,526

784,254

-

14,577 400 787 2,300 4,000 1,000 5,624 554,301 582,989

17

18


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

PARTICULARS

SCHEDULE

SALARY & STAFF EXPENSES SALARY TO STAFF (INCLUSIVE OF INCENTIVE AND OT) STAFF WELFARE EXPENSES MEDICAL EXPENSES UNIFORM EXPENSES TOTAL OTHER EXPENSES GENERAL EXPENSES SECURITY CHARGES BANK CHARGES CA STUDENTS SCHOLARSHIP

31-03-2011 Rs.

31-03-2010 Rs.

19 1,765,497 210,817 33,000 37,287

1,505,638 151,381 25,000 35,112

2,046,601

1,717,131

154,151 112,013 6,338 -

214,331 73,694 6,788 120,000

272,502

414,813

113,750 -

1,587 900 34,878 37,979

113,750

75,344

20

TOTAL PRIOR PERIOD ADJUSTMENTS - EXPENSES SIRC CONFERENCE EXPENSES RECEIVABLES WORKSHOP ON BASICS OF M S EXCEL SEMINAR EXPENSES IPCC COACHING CLASS JUNE-09 CPT COACHING CLASS JUNE’09

21

TOTAL SCHEDULE-22

SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDING 31.03.2011 SIGNIFICANT ACCOUNTING POLICIES a.

Accounting policy: The financial statements have been prepared in accordance with the format provided by the ICAI, New Delhi, as per the “Accounting Manual for Branches of Regional council”

b.

Revenue Recognition:

c.

Inventories:

Revenue is recognized on accrual basis, as per the “Accounting Manual for Branches of Regional council” i) d.

Stock of publication held on behalf of ICAI is stated at invoiced price to branch.

Fixed Assets & Depreciation: Fixed assets are stated at written down value after providing depreciation. Depreciation is provided adopting rates provided in “Accounting Manual for Branches of Regional council”

e.

Investments: Investments are stated at cost

f.

Deferred Tax Asset/Liability Is not applicable at branch level.

NOTES FORMING PART OF ACCOUNTS: 1.

Balances representing Sundry Creditors, Other Liabilities & Central Council Accounts are subject to reconciliation & receipt of confirmations from parties.

2.

During the year the Branch has not made provision for Gratuity as the same is dealt at Head office level.

3.

The Branch has transferred to ITT Reserve Fund a sum of Rs.18,22,000/- in accordance with guidelines for establishing ITT Centre at the Branches of the Institute of the Chartered Accountants of India.

4.

Previous year’s figures & figures in financial statements have been rounded off to the nearest rupee and have been regrouped/ rearranged wherever necessary to make them comparable and meaningful.

Sd/(CA. Venkatesh Babu T.R) CHAIRMAN Place : BANGALORE Date : 06/06/2011

for Bangalore Branch of SIRC of ICAI Sd/Sd/(CA. Ravindranath S.N) (CA. Prasad S.R) SECRETARY TREASURER

As per our Report of even date for N.N.Yuvaraj & Associates Chartered Accountants Sd/(CA. Prithvi Raj U.D.) PARTNER

27

July 2011


Announcement for Campus Placement Programme August-September, 2011 Dear Professional Colleagues, The Committee for Members in Industry is organising Campus placements in the month of August – Sep 2011 for the newly qualified CAs. The details are as below Schedule for Campus Interview August-September, 2011 The CMII provides opportunity to the employers to interact with newly qualified Chartered Accountants and makes all arrangements at its centres, thereby providing a cost effective mode of recruiting newly qualified Chartered Accountants. An organisation and firms of Chartered Accountants can participate in one or more centres. Start Date for filling up initial details (Candidate who have qualified in November 2010, May 2010 or whose results were declared in revaluation/re verification after 26th March, 2011 and completing their articleship or GMCS between 1st May, 2011 to 31st October,2011 : 1st July 2011 to 25th July 2011. Date of candidate registration for May, 2011 CA Final qualified (and others as mentioned above) candidates: 26th to 30th July, 2011

Resubmission and editing of selected portion of online form by the candidates who have opted one bigger and one smaller centre before merger with the centre of their second choice (its mandatory for inclusion of data with smaller centre: 23rd and 24th August, 2011 (upto 11:00 midnight). Opening of database for Companies at S No. 4 and 5: 26th August, 2011 Campus Interview Dates Sl. No.

Centre

Dates*

1

Bangalore, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi

16,17,18,19 & 20 August, 2011

2

Bhubaneswar, Coimbatore and Ernakulam

1&2 September, 2011

3

Baroda, Chandigarh, 2&3 Indore, Kanpur, and Nagpur September, 2011

4

Ahmedabad and Jaipur

5, 6 & 7 September, 2011

5

Pune

9, 10 & 12 September, 2011

Opening of database for Companies at S No. 1: 1st August 2011

CA K Raghu Chairman, CMII

The Southern India Regional Council of ICAI Cordially invites you for the

43rd REGIONAL CONFERENCE OF SIRC OF ICAI

JNANA SANGAMAM

Hosted by: The Coimbatore Branch of SIRC of ICAI On Aug 19 & 20, 2011 [CPE - 12 Hrs] at CODISSIA Complex, Coimbatore August 19th and 20th 2011, this year all the more important – being the Regional Conference of SIRC of ICAI organised in the Diamond Jubilee year of SIRC, and this year being hosted by the Coimbatore Branch in its Golden Jubilee year, in the home town of our distinguished National President CA.G.Ramaswamy and also being a city that is greatly known as the Temple of Learning of the South. The hosts are working to give you the most memorable event, that will remain in your hearts for a very long time. Unique learning experiences, real time interactions, knowledge sharing platforms, peek into the future exhibits, the list is continuing to grow, and they are going this extra mile – ONLY FOR YOU ! Come Celebrate Coimbatore, Celebrate an experience of learning Come build friendships that last a lifetime. Jnana Sangamam promises to be a Confluence of Wisdom, to learn from each other, to work towards the glory of the profession that is so dear to us. There is learning, fun, sharing and much more for all the seniors and the fresher’s who have just joined our fraternity. Remember August 19th and 20th 2011, @ Codissia Trade Fair Complex, Coimbatore Jnana Sangamam – The Confluence of Wisdom, where we all eagerly await you.

July 2011

28


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

29

July 2011


July 2011

30


Bangalore Branch of SIRC of the Institute of Chartered Accountants of India

31

July 2011


July 2011

32


July - 2011 News Letter