SCHEDULES FORMING PART OF THE ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2015
SCHDULE 22 SIGNIFICANT ACCOUNTING POLICIES
1. ACCOUNTING CONVENTION
The financial statements are prepared on the basis of historical cost convention, unless otherwise stated, following going concern concept and on accrual method of accounting .Accrual method of accounting has been followed as far as possible and the deviations are as stated below .
2. REVENUE RECOGNITION AND CHANGE IN THE ACCOUNTING POLICY
2.1 From the year 2005-06 the Institute is covered under the ‘Block Grant Scheme’ of the Govt. of India. Under ‘Block Grant Scheme ’Non plan grant is released on the basis of pre-fixed amount on revenue account. Accordingly from the year 2005-06 the institute has been recognizing Non plan Grant as income.
2.2 Interest on Investment and Mobilization Advances is recognized on accrual basis whereas interest on Saving Bank Account is taken on actual receipt basis as and when credited by banks.
2.3 Consultancy income is recognized on completion of the consultancy projects.
2.4 ePGP income has been considered for the total fee shared during the year. Fee accruing for the year but shared during previous year has not been considered as the same has been accounted in the previous year.
For and on behalf of the Board of Governors of the Institute
Sd/-
Place: Kozhikode Ms. Shiny George Ambat
Date : 04-06-2015 CFO
Indian Institute of Management Kozhikode
SCHEDULES FORMING PART OF THE ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2015
3. EXPENSES
3.1 Expenses are accounted on the basis of accrual method of accounting except the following.
3.2 We have prior period expenses of Rs.33.39 Lakhs in 2014-15 which was not recognized in 2013-14 4. INVESTMENTS
4.1 Valuation of investments have been made as per letter no.21-16/2012-TS.II dated 21.02.2012 of MHRD 5. FIXED ASSETS
5.1 Fixed Assets of the Institute are acquired out of grants from the Government of India and the Government of Kerala. Funds utilized for acquisition of assets are shown under Capital Fund (Fixed Assets) in the corresponding schedule 4 to the Balance sheet.
5.2 Fixed Assets Acquired out of Earmarked/Sponsored Project account are booked as expenditure in concerned project account. These assets are included in Fixed Assets by corresponding credit to Capital Fund ( Fixed Asset - Project ) in Schedule 4 to the balance sheet.
5.3 Fixed Assets are stated at cost of acquisition inclusive of inward freight, duties and taxes and incidental and direct expenses related to acquisition of assets.
5.4 In respect of projects under construction, all direct expenses connected with the construction are capitalized under different sub-heads and apportionment of this expenditure to the specific assets are done on completion of the project on pro-rata basis. Fixed Assets received by way of non-monetary grants (other than towards the Corpus Fund) are capitalized at values stated on receipt and corresponding credit to Capital Fund.
5.5 Fixed Assets constructed and put to use during the year has been capitalized. The certified value of water harvesting pond has been capitalized during the year.
5.6 Work done for Audio Visual project has been capitalized during the year under electrical installation considering the total expenses incurred as towards one single project.
5.7 The balance amount due to M/s GFE for Rs.40/-lacs(approximate) has been set aside against their liabilities on account of their non performance of the contracts besides other recoveries (including outstanding payments,if any,to local agencies engaged by M/s GFE ).How ever a separate accounting entry has not been recorded in our Books.
For and on behalf of the Board of Governors of the Institute
Sd/-
Place: Kozhikode Ms. Shiny George Ambat
Date : 04-06-2015 CFO
Indian Institute of Management Kozhikode
SCHEDULES FORMING PART OF THE ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2015
6. DEPRECIATION
6.1 Depreciation is provided on written down value method as per rates specified in the Income- tax Act, 1961 except depreciation on cost adjustments arising on account of conversion of foreign currency liabilities for acquisition of fixed assets, which is amortized over the residual life of the respective assets.
6.2 In respect of additions to / deductions from fixed assets during the year, depreciation for the full year is charged for the assets acquired and put to use for 180 days and above and 50% of the depreciation is charged for the assets acquired and put to use for less than 180 days.
6.3 Though depreciation is taken to Income & Expenditure account to ascertain the total Recurring Expenditure, corresponding amount is reduced from the Capital Fund (Fixed Assets) and Capital Fund (Fixed Assets-Projects) so that the surplus of Income over expenditure is excluding the provision for depreciation.
6.4 During the year depreciation rates were reviewed and corrected to bring it in line with the rates prescribed by Income Tax Act 1961.
7. GOVERNMENT GRANTS / SUBSIDIES
7.1 The Institute is financed by the Government of India and Government of Kerala for setting up the infrastructure of the Institute. The Government of Kerala has committed to provide the land free of cost to the Institute in initial years.
7.2 The Plan Grants received is accounted as Capital Fund (Grant-in-aid) from where the share of Capital expenditure is transferred to Capital Fund (Fixed Assets) and the balance, if any, carried forward for the utilization/adjustment during the next year.
7.3 Government grants utilized towards capital cost of setting up Institute are treated as capital Fund (Fixed Assets). Grants in respect of specific fixed assets acquired are shown as a Deduction from the cost of related assets.
7.4 Govt. grant is accounted on accrual basis subject to the condition that the sanction orders for grant is received on or before balance sheet date.
For and on behalf of the Board of Governors of the Institute
Sd/-
Place: Kozhikode Ms. Shiny George Ambat
Date : 04-06-2015 CFO
Indian Institute of Management Kozhikode
SCHEDULES FORMING PART OF THE ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2015
8. CORPUS FUND
8.1 Institute is covered under the block grant scheme of Govt. of India from the year 2005-06 onwards and accordingly the entire Surplus/Deficit in the income & expenditure account is transferred to Corpus Fund.
8.2 Interest accrued on Corpus Fund Investment and Loans and Advances granted out of Corpus Fund are directly credited to the Corpus Fund Account without taking to Income & Expenditure Account. This change is done in compliance with requirement of ‘Block Grant Scheme’
9. DEPRECIATION FUND
9.1 Depreciation Fund created by transferring the amount of depreciation charged every year to ensure availability of sufficient funds as and when the old assets has to be replaced. During the current year there is no transfer to depreciation fund as the balance in the depreciation fund with interest is sufficient when compared to the total accumulated depreciation.
10. PENSION FUND
10.1 Transfer of Rs.7.64 crores to Pension Fund is made during the year on the basis of the actuarial valuation of the liability.
11. Significant events during the year
11.1 During the year there was loss by fire at MDP complex . An amount of Rs.8,07,868/- received as Insurance claim has been credited to suspense account as the final bills of lost assets have not been received from contractors .
11.2 IIMK was appointed as mentor for the new IIM Punjab by the Government of India during the year.
11.3 During the year New Pension Scheme was implemented from 1.4.2015 for all employees who have joined the Institute after 1.1.2004. CPF Investments where accordingly re allocated for meeting the pension liability.
For and on behalf of the Board of Governors of the Institute
Sd/- Sd/- Sd/-
Place: Kozhikode Ms. Shiny George Ambat Lt. Col M. Julius George (Retd) Prof. Kulbhushan Balooni
Date : 04-06-2015 CFO CAO DIRECTOR (In-Chage)
12.FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currency are accounted at the exchange rate prevailing on the date of the transaction.
13.RETIREMENT BENEFITS
13.1 Provision for accumulated leave encashment benefit to the employees is computed on the assumption that employees are entitled to receive the benefits as ateach year end.
13.2 In respect of employees covered under the Pension Scheme the amount received from their previous employers towards discharge of their pension liability i s taken to the Pension Fund account and invested suitably.
13.3 Provision for payment of pension in respect of the service rendered in the Institute has been made as per Govt. of India pension / commutation rules.
13.4 We have New Group Gratuity Cash Accumulation Scheme Master Policy No.604000243 & Group Gratuity Cash Accumulation Scheme Master No.405475 with Life Insurance Corporation towards our liability for Gratuity payments. Premium paid/due for the year has been accounted as expenditure for the year.
14. Corresponding figures for the previous year have been regrouped/rearranged, wherever necessary to make them comparable with those of current year.
For and on behalf of the Board of Governors of the Institute
Sd/-
Place: Kozhikode Ms. Shiny George Ambat
Date : 04-06-2015 CFO
Indian Institute of Management Kozhikode
SCHEDULES FORMING PART OF THE ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2015
Indian Institute of Management Kozhikode
SCHEDULES FORMING PART OF THE ACCOUNTS FOR THE PERIOD ENDED 31 MARCH 2015
SCHEDULE 23 - CONTINGENT LIABILITIES AND NOTES ON ACCOUNTS