|Invitation to Participate in the Best Presented Accounts Competition for the year 2001-2002 |
|The last date for receipt of entries has been extended to 31st October, 2002 |
|The Institute of Chartered Accountants of India has been holding an annual competition for the Best Presented Accounts. The basic objective of this competition is to promote better standards in the presentation of information in published accounts. The awards in this competition are given under four categories. The details of these categories and conditions for entry to the competition are given below: |
||Category I: This category includes all non-financial public sector and joint sector companies (i.e., companies to which sections 619 and 619B of the Companies Act, 1956, are applicable) as also non-financial statutory corporations.|
Category II: This category includes all non-financial private and joint sector companies (where sections 619 and 619B of the Companies Act, 1956, are not applicable).
Category III: This category includes financial institutions, banks and financial companies in public, private and joint sectors. Financial institutions include all institutions and organisations engaged in financing and allied activities and not doing any other business, e.g., Industrial Development Bank of India, Unit Trust of India, ICICI Ltd., State Financial Corporations, etc.
Category IV: This category includes entities such as port trusts, municipal corporations, public utilities not registered under the Companies Act, co-operative societies, public trusts, educational and research institutions, etc.
||The following awards are presented in the abovestated categories:
- A silver shield for the best presented accounts and one plaque for the next highly commended accounts under Category I;
- A silver shield for the best presented accounts and one plaque for the next highly commended accounts under Category II;
- A silver shield for the best presented accounts under Category III; and
- A plaque for the best presented accounts under Category IV.
||The accounts for entry to the 2001-2002 competition should relate to financial year ending on any day between 1st April, 2001 and 31st March, 2002. |
||Six copies of the following documents (or such other similar documents as are prepared by the organisation concerned) along with a declaration that the documents submitted are the ones that have been circulated to the shareholders, should be sent to the Secretary, Research Committee, the Institute of Chartered Accountants of India, Indraprastha Marg, New Delhi-110002. The last date for receipt of entries is 31st October, 2002.
- Balance Sheet
- Profit and Loss Account
- Directors’ Report
- Chairman’s statement or speech at the Annual General Meeting. If the copy of the statement or speech of the Chairman was circulated to the shareholders along with the Annual Accounts, specific mention of this fact may be made.
||No form has to be filled up and no fee is payable. |
||Cyclostyled copies of the Annual Report and Accounts will not be accepted. This condition, however, does not apply to entities covered by Category IV. |
||In all matters concerning the competition, the decision of the panel of judges appointed by the Institute will be final. |
||Compliance with the legal requirements in the preparation and presentation of financial statements as specified by the Companies Act, 1956 and other relevant statutes. |
||Basic quality of accounts as judged from the qualifications in the auditor's report, notes to the accounts and compliance with the generally accepted accounting principles such as whose recommended in the Accounting Standards, Statements, Guidance Notes, etc., issued by the Council of the Institute of Chartered Accountants of India and its various Committees. |
||The nature and quality of information presented in the accounts to make the disclosure meanigful. For example:
- Cash Flow Statement
- Sufficient details of revenues / expenses for financial analysis, e.g., distinction between manufacturing cost, selling cost, adminstrative cost.
- Use of vertical form as against the conventional "I" form; judicious use of schedules; use of sub-totals; manner of showing comparative figures; ease of getting at figures.
- Extent to which additional financial information is provided to the readers through charts and graphs.
- Extent of clarity, lucidity and comprehensiveness of the information contained in the financial statements, in the context of a layman.
- Financial highlights and ratios including Earnings Per Share.
- Inclusion of one or more of the information like value added statement, break-up of operations, organisation chart, location of factories / branches, human resource accounting, inflation adjusted accounts, social accounts, etc.
||The extent to which the (i) Directors' Report and / or (ii) Chairman's Statement are informative. The following aspects are considered relevant in the regard:
- Availability of information regarding different segments and units of the entity, i.e., whether details about each product / service and units, and whther located in the same area or spread in different geographical locations, are given.
- Information regarding financial operations, capital raised during the year, financial requirements, borrowings, etc. In respect of multi-product / multi-unit organisations, whether details as per (i) above have been given for financial operations.
- Employee relations.
- Industry problems and problems peculiar to the enterprise.
- Information regarding social concerns (e.g., contribution to conservation and development of environment and ecology)
- Information on contribution to community development projects, particularly in areas around location of entity (e.g., medical institutions, educational institutions, provison of sanitary and drinking water , etc.).
- Post-balance sheet events not requiring adjustment in accounts but material enough to warrant disclosure and future plans, programmes, market conditons, prfitability forecast, environment, friendliness, etc.
- Manner of review of performance, plans and prospects by the compnay.
||Layout of contents, general appearance, presentation and quality of printing. |
||Timeliness in presenting accounts based on the date of the notice of the Annual General Meeting in respect of which the Annual Report is circulated to the shareholders. |