Annual Report 2011-2012 - Birbal Sahni Institute of Palaeobotany

EBIRBAL SAHNI INSTITUT
Annual Report 2011-2012
1946
OF PALAEOBOTANY
S No. Comments/Observations by the Chartered Accountants Actions taken by the Institute
In Donated Fund, the fixed deposits amounting to ` 3,25,943/- was
matured on 20/10/2010 and was renewed with the total maturity
amount, but interest accrued on these deposits on maturity was not
accounted for in books. As a result, the fixed deposits were
understated by ` 73,911/- (interest amount). The interest was
accounted for in current year to arrive at correct value.
In Reserve Fund, ` 1,05,00,000/- was shown as “other approved
securities” as on 31/03/2011, whereas the said amount was
transferred from “Reserve fund” to “BSIP A/c no. 666” but the
same was wrongly taken as “other approved securities”. The same
was rectified during current year”.
` 38,75,674/- was added to “Furniture & Fixtures” during the year
2010-2011, but instead of adding the balance of “Furniture of
Fixtures”. It was deducted in the ‘Library Books” resulting in
understatement of ‘Furniture & Fixtures” and “Library Books” by
the said amount. So, for rectification of the same, ` 38,75,674/- was
added both to “Furniture & Fixtures” and “Library Books”.
As on 31/03/2011, balance in saving account was ` 47,77,017/-,
whereas the same was stated as ` 33,57,854/- in the schedule 11 of
the balance sheet. Further. The balance of saving account includes
` 29,657/- on account of balance in donated fund account but the
same was separately shown in schedule - 9. Hence, balance in
Saving Account was understated by
` 13,89,506/-.
A sum of ` 66,169/- was received on account to Group Insurance of
Mrs. Usha Bajpai in 2010-2011 and was not paid to her. The same
was wrongly included as “Miscellaneous Income” in previous year.
The said amount was paid to her during current year and is
separately reflected in Schedule 21.
Service Tax is being recovered on consultancy receipts.
Compliances, if any, on account of Service Tax be checked and
complied with by the Institute.
The net effect of all the adjustment mentioned above on account of
conversion of single entry system to double entry system is
` 12,80,249.36 which is mainly on account of TDS wrongly
included in Income in Schedule 14 in 2010-2011. The said amount
is separately disclosed in Schedule 21 of current year.
04. Double entry system of accounting’ implementation in its true spirit
requires dedicated efforts from all concerned but the same appears to be
lacking. Now, single entry system of accounting should compulsorily be
stopped and changed system be adopted to avoid duplicity of
accounting; Maintenance of Accounting records, Cash / Bank Book,
Ledgers (including stores records) etc need to be strengthened and
reconciliation of Ledger balances is required to be made on regular
basis due to implementation of double entry accounting system.
05. The Institute has invested most of the funds in to the Term Deposits
with Banks and financial institutions. Institute is following cash basis of
accounting. However, during the current year, the Institute has
accounted for TDS and Interest to the extent of TDS only based on
certificate / document provided by the respective Banks. Interest other
than TDS is being accounted for on cash basis as and when received on
maturity or otherwise. The said change will correct the practice hitherto
being adopted and ease the compliance of the Income Tax Department
accordingly.
Annual Account has been finalized as
per Accrual Basis of Accounting for
the financial year 2011-2012. In order
to implement Accrual basis of
Accounting, the efforts are being made
for the members of staff to undergo
necessary training to enable them to
pass bills, maintain Cash Books,
Ledgers, etc.
Application for refund of TDS has
already been submitted to the authority
concerned.
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