Friday, August 7, 2015

[aaykarbhavan] Re: {CAUSE OF CA} Fwd: Clarifications in connection to the mail sent by Mr D.C.Garg to Honourable president , ICAI and others on 27th July, 2015



No. No exception in the eyes of law ??? At least world wide. Politically may be .............Like P V Narsimharao???!!!
Shah D J



On Thursday, 6 August 2015 9:52 AM, "vishan31@hotmail.com" <vishan31@hotmail.com> wrote:


Cash payment of Rs. 14 lacs were made. The same is being audited & finalised. Are we calling ourselves CHARTERED ACCOINTANTS?
Is ICWAI is allowed to make payment in cash of such huge amount?
Is Income tax Act not applicable on Institute?
Sent by Outlook for Android



On Sat, Aug 1, 2015 at 7:28 AM -0700, "D C GARG" <dcgargfca@gmail.com> wrote:

Dear Members,

In connection with my mail dated 27-07-2015 regarding illegal proposal to change of signatories to bank accounts of Faridabad Branch of NIRC of ICAI, I sought guidance from CC and NIRC members from Faridabad. Till date I have not received any reply from Hon'ble CC Member CA Vijay Kaumar Gupta. 
  
Reply received from CA Deepak Garg, NIRC member from Faridabad is reproduced as under : 
"Dear all , hope that all will be done by rules /regulations/ advisory issued by ICAI .
Deepak Garg"
Whereas CA Promod Maheshwari, another NIRC member from Faridabad informed the Branch Chairman as under : 

The Chairman
Faridabad Branch of NIRC of ICAi,

I am in receipt of notice of managing committee meeting on 3rd August, 2015,

Due to some pre occupied schedule, I shall not be able to attend the meeting.

Agenda Item No 3 of relating to the change of signatures in the bank account is illegal and voilation of The Chartered Accountants Regulations and the Guidelines of ICAI and as such this agenda can not be taken up in the meeting.

I am forwarding the copy of  this reply to the Secretary, ICAI and President ICAI for their comment and Guidence.
 
 
With Warm Regards


CA.Pramod Maheshwari
M.Com., FCA, LLB, DISA(ICAI)
Member-Northern India Regional Council of 
The Institute of Chartered Accountants of India
C/o. SPMR & Associates
C-113, Dayanand Colony, Lajpat Nagar-IV, 
New Delhi-110 024

My humble request to all the stakeholders that no one should be allowed to play with the rules and regulations of the Institute. 

Regards

CA D C GARG
Treasurer, Faridabad Branch of NIRC of ICAI


 ---------- Forwarded message ----------
From: "D C GARG" <dcgargfca@gmail.com>
Date: 29 Jul 2015 18:00
Subject: Fwd: Clarifications in connection to the mail sent by Mr D.C.Garg to Honourable president , ICAI and others on 27th July, 2015
To: "DEEPAK GARG" <deepak@aajvca.com>
Cc:

CA Deepak Garg,
Members, NIRC of ICAI and Ex-officio member of Faridabad Branch
Faridabad


Ref : Notice for the meeting of Managing Committee of Faridabad Branch scheduled to be held on 03-08-2015 to change signatories to the Bank Accounts of the Branch


Sir,

Appended below is the mail received from the Chairman, Faridabad Branch, in connection with my mail dated 27-07-2015 (which has also been copied to you), wherein he has furnished his clarification.

Sir, I am writing this mail to you as you are member of NIRC from Faridabad . You are a member of Regional Council of the Institute of which Faridabad Branch is a part and parcel. Since you are from Faridabad, I am presuming that you are fully aware about all the facts.  In the present circumstances, I seek your guidance and opinion as to whether the proposed resolution to change the signatories to the bank accounts is justified in accordance with the rules and regulations and settled guidelines/directions of the Institute.

Waiting for your valuable guidance and expert opinion.
   
Thanking you,

With warm Regards


CA D C GARG
Treasurer, Faridabad Branch

---------- Forwarded message ----------
From: santosh agrawal <skagrawalfbd@yahoo.co.in>
Date: Wed, Jul 29, 2015 at 9:30 AM
Subject: Clarifications in connection to the mail sent by Mr D.C.Garg to Honourable president , ICAI and others on 27th July, 2015
To: "secretary@icai.in" <secretary@icai.in>, President ICAI <president@icai.in>, ICAI Vice President <vicepresident@icai.in>, CA Vijay Gupta <vkgupta2004@yahoo.co.in>, CA DEPAK GARG <deepak@aajvca.com>, CA Pramod Maheshwari <pramod@spmr.in>, Bhardwajtajender <bhardwajtajender@yahoo.com>, Scg_433 <scg_433@rediffmail.com>, Pardeep KAushik <pardeep@aajvca.com>, "D. C. GARG" <dcgargfca@gmail.com>, CA Vipin Mangla <vipinmangla2007@gmail.com>, Vipin Sharma <vipinksharma.ca@gmail.com>, CA ARIHANT JAIN <arihant999@hotmail.com>, Pramod Maheshwari <pramod@pmcindia.org>


 
 
Dear Sir,
       First of all I thank you for your co-operation and guidance from time to time for the smooth functioning of our branch. My this mail has reference to the mail dated 27th July ,2015 by our treasurer of the Faridabad Branch of NIRC of ICAI , Mr D.C.Garg to you with copy of the same to all the council members . In this connection we would like to inform you the following:
     That in this mail our treasurer Mr D.C.Garg has written  " Such a decision will also encourage the person sitting on the chair of CHAIRMAN to run the branch in COMPLETE AUTOCRATIC STYLE without caring for even the fundamental principles of administration / management. "
 
                    Sir, this is a reaction of the fear of loosing sole power of hindering the branch activities, which our treasurer enjoyed so far. Since his signature was mandatory till now, he enjoyed the privilege of stopping any work of the branch on one pretext or other which you can very well smell from his own mail written to you. I am explaining hereunder point wise facts of the matter which can be verified to any extent if thought necessary.
    
1.  In connection to the cash payment of Rs 14 lacs approx to the caterers , it is to be informed to you that this information belongs to financial year 2013-14 , accounts of which were already finalised by us , checked by the internal auditors , audited by the statutory auditors and merged with the final accounts of the Institute. The period during which these expenses were incurred, our treasurer was the vice – chairman of the branch and had influence in all the decisions made at the branch including the payments to the caterers.
                         The annual accounts of the branch were received/adopted in the AGM of the branch held on 26th July, 2014 in which lot of discussions were made by Mr D.C. Garg also but there was no mention of these cash payments in that AGM.  Now due to the reasons best known to him this point is being raised. It is to be noted here that if we check the cost per diet in that year and compare it with 3 years before and 2 years after, it was the minimum. Nobody is doubting  the incurring of the expenses but the mode of payment only.
 
We believe that cash payments should be avoided but if it is already done, then we must verify by other means that these expenses have been incurred or not, which our auditors have verified and now questioning that is like doubting their competence and integrity.
 
2.  Regarding expenses incurred on the acquisition of capital assets during the financial year 2013-14, these were duly presented and approved in the meeting of the managing committee held on 30.04.2013 , the copies of the minutes of the meeting may be sent to you if required.
 
3.  In connection to the non-holding of AGM for the financial year 2013-14 , the AGM was held duly, only non-compliance was , not sending the managing committee report to the general members with the notice of the AGM which was followed as per the past practice of the branch and the current policy adopted by some of the branches  and discussing the same in the meeting of the office bearers instead of in the meeting of the managing committee. The said managing committee report was read in the AGM before the galaxy of the general members where these procedural lapses were explained to the general members who approved the accounts except the three persons meaning thereby that all the procedural lapses were ratified in the meeting with majority. Everything was informed to the Institute so many times. The AGM of current year viz Financial year 2014-15 was conducted after due information and direction of the institute.  Our treasurer has written these facts to the institute so many times.
 
4.  Regarding 4 cheques of the faculty for CPT coaching I have already informed your honour in my previous mail dated 15th July, 2015 as under:      
We had conducted successful CPT coaching at the branch in the months of April to June, 2015 in which we received Rs 5.00 lacs approx as fee from the participating students and we have to pay approx 2.60 lacs only to the faculties . But in spite of our repeated persuasion their cheques were withheld on the pretext that they might have some connections with the private coaching institute for which our treasurer has to inquire and since last 3 months he could not get time to inquire. Here I would like to clarify that out of the 4 faculties 3 do not take any coaching class anywhere. The fourth faculty is taking classes also at some coaching institute but he is the best faculty available in the area and also taking GMCS classes at Faridabad and other branches as well at NIRC level. The cheques for GMCS and orientation programme is being issued to the faculty even from Faridabad Branch on regular basis and the cheques are being signed by the same treasurer. He should be asked name of the specific faculty out of these four , engagement of whom is not to be done by the branch. The oldest existing faculty or the 3 new faculties.
             Regarding mail dated 07.07.2015 received from Board of studies as informed by Ld. treasurer of our branch we would like to inform you that the treasurer of the branch has deliberately concealed the earlier guidelines received from RBA on 9th July , 2015 which is being reproduced below:
 
Board of Studies has received certain references that Office Bearers and Managing Committee Members of some Branches  are representing the Branches concerned at Programme organised in the functions of private coaching Institutes.  On consideration of the matter, it has been decided to reiterate the Advisory dated 18.12.2011 (scanned copy attached) whereby all the Regional Councils and Branch were advised to avoid any association with coaching Institutions (for Chartered Accountancy Course) to prevent misleading notions amongst the students regarding the relationship of the Institute with such coaching Institutions and not accept the sponsorship/donations, advertisements in the Regional Council Newsletter and Branch Newsletter, Programme related booklets, Students/CPE Programme
 related booklets etc., from Coaching Institutions related to Chartered Accountancy Course.
 
Sir these are the only guidelines available with the ICAI( and with the branch also), so far in connection to the coaching classes at the branches. Here we would like to inform you that the branch did not had any association with any coaching institute and not accepted the sponsorship/donations, advertisements in branch newsletter etc. Regarding engaging the faculties from a coaching institute some members of the branches of NIRC of ICAI had specifically asked the specific question whether a faculty from a coaching institute may be hired for coaching classes in the branch ,during our orientation programme of NIRC this year in chail in presence of  honourable president, vice president and CA Vandana Nagpal, Additional secretary,  Board of studies, ICAI, where it was informed to us that the branch can take decision in this matter on case to case basis. Sir we engaged this faculty as he is renowned in the area and registration of the students could be procured easily if he is engaged. Now not paying any faculty after engaging them and availing their services for three months, is bringing bad name to the institute.
 
5.  Regarding signing of the cheques for furniture, I would like to inform you that no condition of completing the due procedures have been promised by anybody at the time of advance payment to the vendor. Actually what are the due procedures is never told by the honourable treasurer to me . For day to day expenses and for procuring the furniture of the branch there is no due procedure directed by the Institute. I have gone through the upto date infrastructure policy which is silent on this matter and have no specific guideline as such at least for any purchases below Rs 5 lacs. We had made enquiries for the furniture, got quotation from one vendor, price list from 3 vendors and al last decided to procure it from a reputed vendor who is the leading manufacturer of the region and offered maximum discount of 50% on MRP.  We have decided in the managing committee meeting dated 18th June that these payments should be released and policy should be made for the future expenses of like nature specifying the amount of purchases. But still cheques are not being released. Now the vendor is threatening to forfeit the advance of 50% paid to him under the signature of the same treasurer of the branch.
 
6.  Regarding denial of reimbursement of Rs 17.25 lacs , I failed to understand to whom the branch is to reimburse this amount which I denied. To my understanding branch has spent these funds on furnishing of the auditorium which is reimbursed by the IDC of ICAI.
 
7.  Regarding payment to M/S Technopan Industries , I want to clarify that this payment was earnest money kept by the branch received from the contractor during the year 2013-14 which was due for refund. Since the branch could not get payment from IDC , it could not refund the contractor this earnest money, as soon as the branch received payment I issued the cheque to the contractor for overdue payment which was again denied by the treasurer of the branch.
 
8.  Regarding payment M/s Technopam Industries against a bill dated 10-01-2014 (pertaining to FY 2013-14) for Rs. 32,869/- which have never been entered in the books , I want to clarify that services were undertaken from the contractor but bill of the vendor was misplaced by our staff so it was never entered in the books. Now when we had to make full and final payment to the vendor , he supplied copy of the bill which after due verification from the then chairman of the branch that the work was done in the branch , I issued the cheque which was again stopped by our treasurer.
 
Point no 9 and 10 are the future stipulation of the branch which the treasurer is anticipating based on the reasons best known to him.
 
Point no 11 is the repetition of matters already discussed in the managing committee by going through the copy of communications sent by Mr D.C.Garg , you may very well understand that how much hurdles are being created by him in the functioning of the branch with some hidden agenda best known to him.
 
                       By perusal of the above facts , your honour shall observe that our honourable treasurer is either talking for the irregularities in the accounts during the financial year 2013-14 or what is going to happen in the future. We appreciate that no irregularity was found by him at least during the financial year 2014-15.
 
                     Sir , my above submissions are only clarifications in connection to the points raised by our treasurer . I did not want to repeat the things but still found my duty to clarify the matter.
 
Thanks & Regards
CA Santosh Kumar Agrawal
Chairman, Faridabad Branch of NIRC of ICAI
Ph. 9891071122   
 
____________________________________





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WELCOME TO CAUSE OF CA............. STRONGLY RAISE YOUR VOICE...WITH OUT ANY FEAR FOR THE CAUSE OF THE PROFESSION................
 
MAILS SENT THROUGH THIS GROUP ARE MEANT FOR THE INFORMATION TO THE MEMBERS OF THE CA PROFESSION, TO KEEP THEM UPDATED ABOUT THE PROFESSION...MODERATOR(S) OF THE GROUP DO NOT HAVE ANY INTENTION TO DEFAME ANY BODY...VIEWS EXPRESSED IN THE MAILS ARE THE INDIVIDUAL VIEWS OF THE SENDER AND THE MODERATOR(S) OF THE GROUP IS NOT RESPONSIBLE IN ANY WAY FOR THE VIEWS EXPRESSED BY OTHER MEMBERS....BEFORE ACTING ON THE BASIS OF ANY PROFESSIONAL DISCUSSION,TAKE PROPER ADVICE BEFORE ACT..MODERATOR WILL NOT BE HELD RESPONSIBLE IN ANY MANNER...
 
REPRODUCTION OF THE MAILS SENT THROUGH THIS GROUP, WITH OUT THE ABOVE DISCLAIMER IS AT THE SOLE RISK OF THE SENDER AND MODERATOR OF THE GROUP WILL NOT BE RESPONSIBLE FOR THAT ACT IN ANY MANNER WHAT SO EVER IT MAY BE.........
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