Accounts and related matters

(5.1) Balance Sheet

In continuation of this office Circular letter No. 1(1)/58-Accounts., dated 10. 1 1.59 regarding the submission of balance sheet with the annual accounts as on 31.3.1959 a number of points have been raised for clarification.  At the outset,  I would like to mention that it is neither the intention to prepare the balance sheet on commercial lines nor to work out any profit or loss.  As ours is a non-commercial organisation a simple balance sheet to indicate only how the Government grants have been spent from time to time and what permanent assets of a concrete & material character have been acquired by this Society will do.  In order, therefore, to facilitate the preparation of the same certain rigid principles of book-keeping have been set aside in consultation with the A.G.C.R. However in respect of commercial undertakings, separate proforma accounts and balance sheets are to be kept on commercial lines, where necessary.  The various points raised by the Accounts Officers are clarified as under: -

  1. Whether stores which have been received but payment has not been made are to be shown as assets in the balance sheet?
  2. These stores need not be taken into accounts for the reason that payment has not yet been made from the Govt.  Grant, and their value will automatically be included in the subsequent years when payment has actually been made.

  3. Are accrued income and accrued liability to be taken into account?
  4. This is not necessary and only actual transactions are to be taken into account.

  5. Whether depreciation is to be allowed on assets?
  6. As you are not concerned with the market value of our asset, only actual transactions are to be shown in the Balance Sheet without any depreciation.

  7. Whether stores on hand at the end of the year and capital assets fabricated out of them are to be depicted in the balance sheet?
  8. If the capital assets are of a permanent nature they should be shown in the balance sheet and the expenditure actually incurred thereon omitted from the income and expenditure statement of accounts, an equivalent amount being shown in the balance sheet on the liability side as a part of capital grant.

  9. Are consumable stores in hand not to be depicted in the balance sheet?
  10. According to the principles of commercial Undertakings the value of consumable stores in hand should be taken into accounts, but in order to facilitate the preparation of the balance sheet it has been agreed by the AGCR that their value may not be shown in the balance sheet.  They are eventually to be consumed in due course and may be treated as final expenditure in the income and expenditure statement of accounts. (6) Whether the word 'grant referred to in para 2 of this office circular dated 10. 11.59 refers to actual funds received by the Laboratory or the budget grant?

    The funds transferred from C.S.I.R. along with the receipts of the Laboratory, or any donation from outside party for general purposes received direct by the Lab. should be treated as grant which should be split up for recurring and capital expenditure as per instructions already issued in this office circular dated 10.11.1959 ibid.

  11. Whether assets acquired during the year 1958-59 to be taken into account only
  12. The balance sheet on 31.3.1959 is to include the assets acquired during all the preceding years also, and not for 1958-59 only.

  13. Whether expenditure incurred from port to Lab., on assets acquired from TCA or C. Plan, are to be shown in the Income and Expenditure accounts or the balance sheet?
  14. The value of equipment received under TCM and the C. Plan should be shown distinctly on either side of the balance sheet without taking into account the inland charges incurred thereon which may be shown as expenditure on TCA & Colombo Plan equipment in the Income & Expenditure statement.  As regards the charges on other purchases of a capital nature they should be added to the purchase value thereof and shown in the balance sheet as capital expenditure.

    1. Whether petty works constructed for certain experimental buildings are to be taken into balance sheet as assets?
    2. If they are temporary constructions for experimental purposes only they need not be shown in the balance sheet, for they do not add to the capital value of the buildings and may have to be dismantled at any time.  On the other hand if the petty works add to the capital value of the building they should be taken into account in the balance sheet.

    3. What should be the distinction between consumable and non-consumable stores?
    4. The value of consumable stores in hand which are to be used up in works, experiments, production of goods for sale, or apparatus for experiments, is not to be incorporated in the balance sheet.  As regards non-consumable stores, these too need not necessarily be shown in the balance sheet unless they represent fixed assets of a material character and the officers in charges have to exercise their own discretion to overcome any difficulty in the matter.  Petty items of day to day requirement in a laboratory such as stands, flasks, tubes etc. etc. purchased for experimental purposes only need not be shown in the balance sheet.  For the purpose of the balance sheet only concrete assets of a material & permanent character should be taken into account e.g., land, Roads, Buildings (including services & installation), plant and machinery (like lathes, Milling, Machines, Brills, Shaping machines, Crushers.  Seiving Machines, Blowers, Electric Motors, Transformers, Switch Gears, Air Ovens, Furnaces, X-ray, Spectro-photo meters, weighing machines, Chemical Balances.  Microscopes etc.) furniture, office and laboratory equipment & apparatus, library books, motor vehicles, live stocks etc. etc.  It would facilitate matters if the value of these assets is worked out on the basis of balances as on 31.3.59 in the various stock registers.

    5. Sundry Creditors or Debtors
    6. These transactions viz., fees for Analysis, Advice, Sale of Laboratory products, rent and other charges recovered from staff etc. and bills of suppliers contractors, taxes, telephones charges not yet paid need not be taken into account unless cleared.

    7. Deposits and Advances
    8. All deposits and advances should be shown in the balance sheet on the assets or the liability side, according to the nature they represent, i.e., debit or credit balance in the main accounts, e.g. advance for conveyance or festival or transfer, and earnest money or security money, CPF etc.

      The balance in respect of schemes sponsored by outside authorities should also be shown in the balance sheet separately, under this head.

    9. Remittances
    10. The balance under this head should also be shown in the balance sheet.

    11. Articles manufactured in the Laboratories but not yet sold outer proceeds not yet realised:
    12. Except in the case of commercial undertakings the value of these articles may not be shown in the balance sheet, as the receipts when realised will automatically be taken into account in the income and expenditure statement of the year concerned.

    13. Cash Balance
    14. The balance in hand or in the bank as on 31.3.59 of the main accounts is to be shown in the balance sheet. The undisbursed money with the Drawing & Disbursing Officer should not be taken into account as it has already been accounted for in the main cash book.  The balance of impress held by an officer will not be shown in the balance sheet.  If, however, the original impress has been drawn from the funds of the laboratory it will be shown as asset under Deposits & Advances as per transaction in the main accounts.  If it has been drawn from the main office and has not come in the main accounts of the Lab. then it will be shown on both sides of balance sheet. 

    15. UNESCO Coupons
    16. The UNESCO Coupons whether purchased from capital or recurring grants need not be shown in the balance sheet as in the main accounts they have already been treated an final expenditure under the heads concerned. 

    17. Income & Expenditure statement and Balance Sheet.
    18. A specimen proforma is enclosed which may be amplified according to the requirements of each laboratory.  It may be borne in mind that the expenditure booked under the heads P- 1, P-2, P-3, P-4, P-5, P-6, P-7 has to be shown in the Income & Expenditure statement excluding the valuable assets of a permanent character, which are to be shown in the balance sheet.  Similarly, expenditure booked under the head PP(2) (3) & (4), should be shown, in the Income & Expenditure statement of accounts as they do not represent capital assets.

      It may be borne in mind that the expenditure booked under the heads P- 1, P-2, P-3, P-4, P-6, P-7 has to be shown in the Income & Expenditure statement excluding the valuable assets of a permanent character, which are to be shown in the balance sheet.  Similarly, expenditure booked under the head PP(2) (3) & (4), should be shown in the Income & Expenditure statement of accounts as they do not represent capital assets.

    19. It is hoped that all efforts will be made to prepare the balance sheet as laid down in the bye laws of the CSIR and insisted upon by Audit, for information of the Governing Body.  The question of staff raised by certain Laboratories should not stand in the way of completion of this work by the prescribed date and the authorities concerned may be requested to render all possible help required for this purpose.  No additional staff will be provided.

    (CSIR letter No. 1(1)/58-Accounts, dated 10th December, 1959)

    (5.2)  Asset Register

    (5.2.1) Maintenance of Asset register - Land & Building.

    1. A Land & Building Asset Register is being maintained in the Laboratories/Institutes in the prescribed proforma as per the instructions issued by the C.S.I.R. vide No. 17-CSIR(Audit)-Misc./54, dated 3.8.1956 and No. 1(5)/Accts. 69-60, dated 24th July, 1970.
    2. In the above context, certain guidelines for keeping the land deeds/contracts have been issued by the CSIR vide No. 2/81/83-CDN, dated 30th December, 1983.
    3. The need for keeping/updating the Asset register for Land & Building has been stressed by the Governing Body of CSIR while reviewing the accounts for 1983-84.
    4. The lapses pointed out by the Audit in this regard were noted with displeasure by the Governing Body.  The Director-General desires that immediate remedial action may be taken wherever necessary.
    5. The Land & Building Asset register prescribed under CPWD Code- 120 has been adopted in CSIR . The figures of the Asset Register in respect of land & building of the Labs. must be reconciled with the figures appearing in the Balance Sheet as on 31.3.1984. This register is an essential document of a permanent nature.
    6. It is emphasized that the same must be got completed in all respects and be kept in the safe custody of the Administrative Officer of the laboratory. In CSIR Headquarters, this document will be kept by the Engineering Unit.

    7. Since the progress for updating this document is to be reported early to the Governing Body of the CSIR it is requested that earnest efforts may be made to complete and update the documents by reconciling the figures from Balance Sheet upto March, 1984.

    (CSIR letter No. 1(5)/84-Reports, dated, 8th February, 1985)

    (5.2.2) Maintenance of asset Register(s) with Progressive Values.

    In the Inspection Report/Audit Report for the past several years the Director of Audit, Central Revenues has been observing that the figures under various headings of assets shown in the Balance Sheet were not reconciled with the progressive totals of the Asset Register.  In fact, the progressive total of the value of all assets is not carried out in the concerned Asset registers as at present.  While discussing the Audit Report on the Accounts of the CSIR for the year 1984-1985 with the Director of Audit, Scientific & Commercial Departments, the difficulty of reconciling the value of all asset registers with that shown in the Balance Sheet pertaining to all the previous years (over 25 years) was explained in detail.  Finally it has been decided in consultation with the Director of Audit (S&CD) that reconciliation of the figures may be done prospectively.  Accordingly, the value of all asset items shown in the Balance Sheet for the period ending 31.3.1987 will have to be reconciled with the value shown in the respective Asset Registers.

    Abstract Asset Registers (AAR)

    The Balance Sheet of the CSIR is prepared on cash basis; therefore if any advance payment has been made for procurement of assets the expenditure will be reflected in the Balance Sheet, whereas in the respective asset register no entry might have been made as the asset might not have yet reached the laboratory.  Similarly, in certain cases asset item might have been received and entered in the concerned Asset Register, but if payment has not been made the value of such asset will not be shown in the Balance Sheet.  Therefore, full reconciliation of figures in the Balance Sheet with that in the Asset Registers may not be feasible.

    It has, therefore been decided that one 'Abstract Asset Register (ARR)' will be opened in all concerned Sections separately for each budget sub-head, in which all addition of assets during the year and the progressive values will be shown, quoting reference to the relevant asset register. The balance under various asset headings shown in the Balance Sheet for the period ending 31.3.1986 may be adopted as 'Opening Balance' in the concerned AAR.

    Detailed procedure

    Entries in the AAR will be made at the time of certifying the suppliers'/other bills.  The AAR will have the following columns :-

    1. Date
    2. Serial Number
    3. Supplier/Order No. and date
    4. Bill No. and date
    5. Description
    6. Quantity
    7. Total Cost
    8. Progressive total (of cost)
    9. Asset Register Reference (Vol.No.Page No.) 

        Similarly, value of assets written off, gifted away, transferred to another laboratory or disposed of in any other manner during the year also should also be entered in the AAR in red ink and the progressive value reduced suitably in this AAR, information and the items of assets procured and paid for (including Advances Payment) during any particular year should be entered.

    The amount of advance payment should also be entered in the AAR by the respective sections.  In respect of equipment etc.  Purchase Section in the labs initiates action and advance payment is arranged by that Section, it would be necessary that the Purchase Section intimates the amount of such advance payment to the respective Sections which will receive these equipments /assets items for entry in the AAR.  If the dealing section (say, General Section/Library Section) initiates the proposal for advance payment, it would be their duty to show such figure in the AAR also.  The intention behind the procedure is that the total of all AAR (budget sub-headwise) will agree with the total of asset headings shown in the Balance Sheet.

    As regards acquiring asset items under the budget sub-head, P-5(1) - Works and P-5(2) - Services, Staff Quarters and maintenance, the Engineering Section(s) - Civil/Electrical) will maintain AAR in respect of all expenditure incurred during the year under the above budget sub-heads.

    Out of the expenditure under Recurring Heads of Accounts viz.  P.-4, P-6 and P-7, certain items are capitalised.  Cost of such items including items fabricated in the workshop etc. should be shown in the AAR (to be opened for each separate budget sub-head) at the time of certification of bills by Stores Section, General Section, Engineering Section, etc. as the case may be.

    These Sections while recording certificate on the bill should mention that the item has been taken in the AAR (Page No..........)

    In the audit registers/classified abstracts maintained in the Finance & Accounts Section, a distinct. column as 'Asset' may be opened under the head P-4, P-6 and P-7.  This will enable computation of the figures of asset acquired out of the recurring grant at any required point of time.

    In the Finance & Accounts Section advance payments are recorded in the Audit register as well as Objection Book Advance Register.  It would be expedient to record the amount of advance payments made under each budget sub-head (for asset items) in a separate register.

    Sr.F&AO/F&AO of each laboratory will intimate each Section the amount of expenditure booked every month under the budget heads concerning the respective section(s) in the following month.  Ale Stores and other Sections will reconcile the figure with the totals of the AAR and will confirm the agreement of the two sets of figures (i.e. figures as per AAR and those as per records of Finance and Accounts Section).

    In certain cases the category of asset shown in the Balance Sheet includes expenditure relating to more than one budget sub-head e.g. 'Apparatus and Equipments' comprise expenditure under budget sub-head P-5(3) and P-7 (items capitalised).  A doubt may arise as to the specific Abstract Asset Register (AAR) in which the Balance as on 31st March, 1986 (as per balance sheet) should be shown as opening balance since it refers to such AAR's viz.  P-5(3) and P-7.  In such case the opening balance may be shown in the AAR for P-5(3) only being the main budget sub-head under which apparatus and equipment are purchased.  Similarly the figure under 'Land & Machinery' appearing in the balance Sheet on 31st March, 1986 may be shown in the AAR for P-5(1) - Works as the major portion of the figure under Land and Building pertains to P-5(1) - works.

    Balance Sheet Certificate

    Necessary action may be taken to open AAR in the laboratory and get the figures as per Balance Sheet of 1'986-87 reconciled with those of the AAR.  A certificate as follows may be recorded in the Balance Sheet:-

    "Figures against each asset item in the Balance Sheet upto 31st March, 1986 have been adopted in the subsidiary registers) as opening balance and that the figures appearing in the Balance Sheet during the year 1986-87 have been reconciled with the figure in the Abstract Asset Register(s)."

    Progress reports

        It may be confirmed by 10th July, 1986 that the relevant Abstract Asset registers (AAR) have been opened and are being used.  It may further be intimated to CSIR by 10th October, 1986 and 10th January, 1987 that all entries upto 30th September, 1986 and 31st December, 1986 have been made in the respective AAR and reconciled with the figure(s) furnished by the Finance & Accounts Officer/Sr.  Finance & Accounts officer as referred to herein.

    CSIR-HQ

    In respect of CSIR Hqrs., all Sections purchasing/Store acquiring Asset items may maintain necessary registers as explained above.

    (CSIR D.O. No. 1(5)/84-Reports, dated 21st April, 1986)

    (5.2.3) Maintenance of Assets Registers with Progressive value.

    Reference CSIR Circular No. 1(5)/84-Reports, dated 2 1 st April, 1986 detailing therein the procedure to be followed regarding maintenance of Abstract Asset Registers and Circular Letter dated 27th Feb., 1991 emphasizing its maintenance in accordance with the detailed procedures with progressive value at the close of the financial year, for verification by the Audit.

    In terms of CSIR Circular dated 21st April, 1986, Abstract Asset Registers are to be maintained by the concerned section separately for each sub-heads. However, it has been brought to CSIR notice that instructions issued, on the subject, are not being followed in certain national Labs./lnstts. It has, therefore, been decided that Abstract Asset Registers will be maintained by the Lab./Instt. uniformly as below:

    1. Works & Services/land & Building/Staff Quarters etc.,  Engg./Civil Sec./Works Sec.
    2. Apparatus & Equipments, Office equipments, Medals, Exhibits, Stores Section
    3. Library Books & Journals, Library
    4. Vehicle, Furniture, General Section.

    It will be the over all responsibility of the Controller of administration and in his absence of Administrative Officer of the laboratory to get the Abstract Assets Registers maintained by the concerned section of the Labs./lnstts. & keep it upto date.  A certificate to the effect that figures of assets as shown in the Balance Sheet have been tallied with the Abstract Assets Register will be furnished by FAO/Sr. FAO duly countersigned by Controller of Administration while submitting Annual Accounts/Balance Sheet of the Lab./lnstt. to the CSIR.

     (CSIR letter No. 1(5)/84-Reports, dated, 19/24 June, 1991)




    (5.2)  Asset Register

    (5.2.1) Maintenance of Asset register - Land & Building.

    1. A Land & Building Asset Register is being maintained in the Laboratories/Institutes in the prescribed proforma as per the instructions issued by the C.S.I.R. vide No. 17-CSIR(Audit)-Misc./54, dated 3.8.1956 and No. 1(5)/Accts. 69-60, dated 24th July, 1970.
    2. In the above context, certain guidelines for keeping the land deeds/contracts have been issued by the CSIR vide No. 2/81/83-CDN, dated 30th December, 1983.
    3. The need for keeping/updating the Asset register for Land & Building has been stressed by the Governing Body of CSIR while reviewing the accounts for 1983-84.
    4. The lapses pointed out by the Audit in this regard were noted with displeasure by the Governing Body.  The Director-General desires that immediate remedial action may be taken wherever necessary.
    5. The Land & Building Asset register prescribed under CPWD Code- 120 has been adopted in CSIR . The figures of the Asset Register in respect of land & building of the Labs. must be reconciled with the figures appearing in the Balance Sheet as on 31.3.1984. This register is an essential document of a permanent nature.

    It is emphasized that the same must be got completed in all respects and be kept in the safe custody of the Administrative Officer of the laboratory. In CSIR Headquarters, this document will be kept by the Engineering Unit.

    1. Since the progress for updating this document is to be reported early to the Governing Body of the CSIR it is requested that earnest efforts may be made to complete and update the documents by reconciling the figures from Balance Sheet upto March, 1984.

        (CSIR letter No. 1(5)/84-Reports, dated, 8th February, 1985)

    (5.2.2) Maintenance of asset Register(s) with Progressive Values.

    In the Inspection Report/Audit Report for the past several years the Director of Audit, Central Revenues has been observing that the figures under various headings of assets shown in the Balance Sheet were not reconciled with the progressive totals of the Asset Register.  In fact, the progressive total of the value of all assets is not carried out in the concerned Asset registers as at present.  While discussing the Audit Report on the Accounts of the CSIR for the year 1984-1985 with the Director of Audit, Scientific & Commercial Departments, the difficulty of reconciling the value of all asset registers with that shown in the Balance Sheet pertaining to all the previous years (over 25 years) was explained in detail.  Finally it has been decided in consultation with the Director of Audit (S&CD) that reconciliation of the figures may be done prospectively.  Accordingly, the value of all asset items shown in the Balance Sheet for the period ending 31.3.1987 will have to be reconciled with the value shown in the respective Asset Registers.

    Abstract Asset Registers (AAR)

    The Balance Sheet of the CSIR is prepared on cash basis; therefore if any advance payment has been made for procurement of assets the expenditure will be reflected in the Balance Sheet, whereas in the respective asset register no entry might have been made as the asset might not have yet reached the laboratory.  Similarly, in certain cases asset item might have been received and entered in the concerned Asset Register, but if payment has not been made the value of such asset will not be shown in the Balance Sheet.  Therefore, full reconciliation of figures in the Balance Sheet with that in the Asset Registers may not be feasible.

    It has, therefore been decided that one 'Abstract Asset Register (ARR)' will be opened in all concerned Sections separately for each budget sub-head, in which all addition of assets during the year and the progressive values will be shown, quoting reference to the relevant asset register. The balance under various asset headings shown in the Balance Sheet for the period ending 31.3.1986 may be adopted as 'Opening Balance' in the concerned AAR.

    Detailed procedure

    Entries in the AAR will be made at the time of certifying the suppliers'/other bills.  The AAR will have the following columns :-

    1. Date
    2. Serial Number
    3. Supplier/Order No. and date
    4. Bill No. and date
    5. Description
    6. Quantity
    7. Total Cost
    8. Progressive total (of cost)
    9. Asset Register Reference (Vol.No.Page No.) 

        Similarly, value of assets written off, gifted away, transferred to another laboratory or disposed of in any other manner during the year also should also be entered in the AAR in red ink and the progressive value reduced suitably in this AAR, information and the items of assets procured and paid for (including Advances Payment) during any particular year should be entered.

    The amount of advance payment should also be entered in the AAR by the respective sections.  In respect of equipment etc.  Purchase Section in the labs initiates action and advance payment is arranged by that Section, it would be necessary that the Purchase Section intimates the amount of such advance payment to the respective Sections which will receive these equipments /assets items for entry in the AAR.  If the dealing section (say, General Section/Library Section) initiates the proposal for advance payment, it would be their duty to show such figure in the AAR also.  The intention behind the procedure is that the total of all AAR (budget sub-headwise) will agree with the total of asset headings shown in the Balance Sheet.

    As regards acquiring asset items under the budget sub-head, P-5(1) - Works and P-5(2) - Services, Staff Quarters and maintenance, the Engineering Section(s) - Civil/Electrical) will maintain AAR in respect of all expenditure incurred during the year under the above budget sub-heads.

    Out of the expenditure under Recurring Heads of Accounts viz.  P.-4, P-6 and P-7, certain items are capitalised.  Cost of such items including items fabricated in the workshop etc. should be shown in the AAR (to be opened for each separate budget sub-head) at the time of certification of bills by Stores Section, General Section, Engineering Section, etc. as the case may be.

    These Sections while recording certificate on the bill should mention that the item has been taken in the AAR (Page No..........)

    In the audit registers/classified abstracts maintained in the Finance & Accounts Section, a distinct. column as 'Asset' may be opened under the head P-4, P-6 and P-7.  This will enable computation of the figures of asset acquired out of the recurring grant at any required point of time.

    In the Finance & Accounts Section advance payments are recorded in the Audit register as well as Objection Book Advance Register.  It would be expedient to record the amount of advance payments made under each budget sub-head (for asset items) in a separate register.

    Sr.F&AO/F&AO of each laboratory will intimate each Section the amount of expenditure booked every month under the budget heads concerning the respective section(s) in the following month.  Ale Stores and other Sections will reconcile the figure with the totals of the AAR and will confirm the agreement of the two sets of figures (i.e. figures as per AAR and those as per records of Finance and Accounts Section).

    In certain cases the category of asset shown in the Balance Sheet includes expenditure relating to more than one budget sub-head e.g. 'Apparatus and Equipments' comprise expenditure under budget sub-head P-5(3) and P-7 (items capitalised).  A doubt may arise as to the specific Abstract Asset Register (AAR) in which the Balance as on 31st March, 1986 (as per balance sheet) should be shown as opening balance since it refers to such AAR's viz.  P-5(3) and P-7.  In such case the opening balance may be shown in the AAR for P-5(3) only being the main budget sub-head under which apparatus and equipment are purchased.  Similarly the figure under 'Land & Machinery' appearing in the balance Sheet on 31st March, 1986 may be shown in the AAR for P-5(1) - Works as the major portion of the figure under Land and Building pertains to P-5(1) - works.

    Balance Sheet Certificate

    Necessary action may be taken to open AAR in the laboratory and get the figures as per Balance Sheet of 1'986-87 reconciled with those of the AAR.  A certificate as follows may be recorded in the Balance Sheet:-

    "Figures against each asset item in the Balance Sheet upto 31st March, 1986 have been adopted in the subsidiary registers) as opening balance and that the figures appearing in the Balance Sheet during the year 1986-87 have been reconciled with the figure in the Abstract Asset Register(s)."

    Progress reports

        It may be confirmed by 10th July, 1986 that the relevant Abstract Asset registers (AAR) have been opened and are being used.  It may further be intimated to CSIR by 10th October, 1986 and 10th January, 1987 that all entries upto 30th September, 1986 and 31st December, 1986 have been made in the respective AAR and reconciled with the figure(s) furnished by the Finance & Accounts Officer/Sr.  Finance & Accounts officer as referred to herein.

    CSIR-HQ

    In respect of CSIR Hqrs., all Sections purchasing/Store acquiring Asset items may maintain necessary registers as explained above.

    (CSIR D.O. No. 1(5)/84-Reports, dated 21st April, 1986)

    (5.2.3) Maintenance of Assets Registers with Progressive value.

    Reference CSIR Circular No. 1(5)/84-Reports, dated 2 1 st April, 1986 detailing therein the procedure to be followed regarding maintenance of Abstract Asset Registers and Circular Letter dated 27th Feb., 1991 emphasizing its maintenance in accordance with the detailed procedures with progressive value at the close of the financial year, for verification by the Audit.

    In terms of CSIR Circular dated 21st April, 1986, Abstract Asset Registers are to be maintained by the concerned section separately for each sub-heads. However, it has been brought to CSIR notice that instructions issued, on the subject, are not being followed in certain national Labs./lnstts. It has, therefore, been decided that Abstract Asset Registers will be maintained by the Lab./Instt. uniformly as below:

    1. Works & Services/land & Building/Staff Quarters etc.,  Engg./Civil Sec./Works Sec.
    2. Apparatus & Equipments, Office equipments, Medals, Exhibits, Stores Section
    3. Library Books & Journals, Library
    4. Vehicle, Furniture, General Section.

    It will be the over all responsibility of the Controller of administration and in his absence of Administrative Officer of the laboratory to get the Abstract Assets Registers maintained by the concerned section of the Labs./lnstts. & keep it upto date.  A certificate to the effect that figures of assets as shown in the Balance Sheet have been tallied with the Abstract Assets Register will be furnished by FAO/Sr. FAO duly countersigned by Controller of Administration while submitting Annual Accounts/Balance Sheet of the Lab./lnstt. to the CSIR.

     (CSIR letter No. 1(5)/84-Reports, dated, 19/24 June, 1991)

    (5.3) Stores & Workshop Accounts

    (5.3.1) Instructions for the maintenance and accounting of stores & workshop job cards etc.

    In the course of local audit of accounts of the various Laboratories/Institutes by the Accountant General, stores undertaken by the Stores Verification Officer of the Council, very serious irregularities in the accounting and maintenance of stores have been brought to the notice of Council for rectification. A few of the more serious types of defects are indicated below in the hope that all heads of the Laboratories/Institutes will go through the same very carefully and issue instructions to the dealing staff concerned to guard against such defects and irregularities come in future by observing these instructions scrupulously.

    1. The stores purchased are neither entered in the relevant stock registers on receipt nor the details thereof are incorporated in the stock ledgers. It is needless to point out that stores of consumable and non-consumable nature should be separated and entered in separate registers duly classified. It has been noticed that in some cases the component parts or accessories have not been exhibited in store ledgers at all rendering the stores verification impossible as for example the Electric Motors supplied by a firm with the machines have not been shown anywhere in the register though this formed a separate part altogether. The certifying authority may therefore, please ensure that relevant information viz., order No. and date, suppliers name, rate, quantity and value and other relevant particulars of the stores and accessories are fully noted in the stock registers before the bills are certified by him.
    2. It may also be ensured that entries regarding the same stores are not spread over various registers but are entered on the same pages where similar stores have been entered.
    3. Separate registers for chemicals, glass apparatus machinery, furniture, stationery articles and equipment may be maintained to avoid mixing up of stores with a view to facilitate easy checking of stores and drawing up balances in hand of each kind.
    4. Proper records for assembling of -apparatus and disassembling of parts of equipment for research purposes may please be indicated in the relevant stock registers to avoid confusion at the time of verification. No part should be removed from the equipment without proper notice to the store-keeper for effecting consequential changes in the relevant register.
    5. The stores purchased against special requisitions from various divisions may not be issued in bulk quantities beyond one month's probable requirements direct to divisions on receipt by the store-keeper. Such requirements should be duly certified by the Head of the Division, in whose favour the stores will be issued to avoid unnecessary accumulations, loss or their misuse by research workers.
    6. A separate record of apparatus and other bulk quantities of stores issued to various heads of divisions may be maintained in each division or in central stores. In respect of such articles of stores found to be surplus or not required in the near future they may periodically be returned to central stores for use in other divisions as well as to guard against unnecessary purchases and piling up of stocks.
    7. All indents for purchases should be routed though the stores to enable the Store-keeper to verify the quantities available in stock and purchases should be made on the basis of the certificate given by him that stores are not available and may be purchased.
    8. All items of apparatus issued to various divisions may invariably be noted on the store register of the division and loss damage or un-serviceability of items reported to the competent authority as soon as discovered and simultaneously transferred to the relevant register (loss or unserviceable).
    9. A physical verification of stores should be conducted annually by a Gazetted Officer other than one who happens to be in-charge and the result of verification should be reported to the Director for necessary orders
    10. Workshop Accounts
      1. Articles fabricated in the workshop may in the first instance be transferred to stores for stock entry in the relevant register together with the full particulars including the cost thereof and subsequent issue to the indenting division. The cost of the fabricated articles or equipment may please be recorded in the stock register from the job card which should show the full details of stores consumed including the cost thereof and the labour charges etc. incurred on their fabrication - cross references of stock entry of the stores for verification purposes being given.
      2. All entries of receipt of stores and their additions may be carefully checked and attested by the officer concerned in the stock registers to avoid unauthorised additions and alterations therein.
    11. As regards the fabrication of apparatus and other miscellaneous works in the workshops, the procedure laid down below may be observed.
      1. The necessary particulars of job to be executed should be detailed in the work order by the indentor and approved by the Head of the Division together with the estimated cost therefore. As far as possible subsequent changes in specifications which renders the original estimate null and void and results in infructuous expenditure may be strictly guarded against. Any change while the work is in progress result in wasteful expenditure both of labour and material and should be avoided.
      2. On receipt of a work Order, job card should be made and registered. A record of all materials and labour used daily for the job and the cost thereof be kept in the job card. The fabricated article should then be made over to stores for supply to the indentor through a proper issue register after entry in the stock register. The job card should also bear the particulars of stock entry for cross references.
      3. All issues of Consumable and non-consumable stores to be made against a job must be noted in the card, number of which may invariably be quoted on the issue slips. Materials for more than one job should not be included on the same issue slip.
      4. Stores intended for making permanent fixtures should be issued against job cards and properly accounted for. Issue of stores to individuals for this purpose may be stopped altogether. The details and quantity of stores issued for a particular job card may invariably be recorded on the reverse of the job card indicating the cost thereof, total man-hours used together with the charges for the same and the total cost of the stores fabricated, for recording the Value of the fabricated articles in the stock register.

    The specimen form of job cards, issue slips, job card registers, fabricated article register, tool register, machinery register and their history sheet, labour register, personal register for the issue of working kits and other tools to various workers are also enclosed herewith for introducing the same in the workshops forthwith.

    (CSIR letter No. 17-CSIR/Audit/(Misc.)/56, dated May, 1956)

    (5.3.2) Costing of jobs in the Workshops of the National Laboratories/Institutes.

    In pursuance of the directive issued in this Office circular No. 17-CSIR/Audit/Misc/55 dated May. 1956 the question of the pricing of job cards in the Workshops has been further discussed with the AGCR and the following procedure agreed to:-

    1. Indents & Issue of materials
      1. All indents received in the Workshops should be on the job card (sample form enclosed) (Form A). This will serve as cost sheet. The Labour and Material used on the jobs should be entered on this card.
      2. Issue of materials should be entered on Issue Slips (Form B enclosed).
      3. The issue slip should be checked by the Foreman or the Shop-Incharge of respective shops and each issue should be entered on the job and debited on the Stock Ledger. Any excess should be returned back to Stores and credited on the job card and the Ledger.
  15. The costing of raw material should be done from a price list revised every financial year showing the average prices of the materials.
  16. The return of stores should be marked with red ink/chalk on the job card to differentiate it from other entries.
  17. The costing of labour should be done by dividing the whole labour in two categories - Category 1 consisting of Sr. Electricians, Fine Mechanics and Mechanics and Category II consisting of Mistries, Attendants and Apprentices and computing an average wage for each category per hour or per day and using the average figure for costing.
  18. The details of costing should be done either on a separate sheet which may be stitched to the job card itself as may be convenient.
  19. All items of capital nature should be costed and sent to central stores for being issued to indentors but accessories or components and equipments etc., repair jobs or modifications can be passed on to the Indentors direct and receipt obtained on the job card for record. An additional column in the Job Registration Book will show such deliveries.
  20. Fabrication of items costing upto Rs. 501- may not be costed at all, but they should be certified by the Workshop Superintendent to this effect and delivered direct to the indentor, keeping a record in job registration book in an additional column as against item (6) above.
  21. The overheads should be calculated as a suitable percentage of direct labour taking into account expenditure on supervision, power, cost of machinery, cost of building, indirect labour etc. including proportionate cost of the drawing office.
  22. The computation of the overheads should be worked out on a separate sheet as shown in enclosure 'C'.
  23. Average wages should also be worked on a separate sheet as shown in enclosure 'D'.

The above procedure should be followed with immediate effect.

(CSIR letter No. 7(23)/57-Aud., dated 16th December, 1957)

(5.3.3) Instructions for the maintenance and Accounting of stores and workshop job cards etc.

Reference CSIR O.M. No. 17-CSIR/Audit /Misc./56, dated May, 1956 and No.7(23)/57-Auditg dated 16.12.1957 (PL see para 5.3.1 & 5.3.2) to all Heads of Labs./Instts. in which certain instructions were issued for maintenance of job cards in the workshop and their costing. The director of Audit (CW&M-II) in his recent observation on the accounts and records of Labs./Instts. has brought to notice that certain Labs. are not properly maintaining job cards of workshop and that costing is not being carried out. It may be appreciated that accounting of jobs carried out in the workshop is very much necessary for exercising proper control on material consumed and labour utilised on such jobs. These instructions (although issued long ago) are based on sound principles continue to hold good even at present. You are requested kindly to follow these instructions in your Lab./Instt. If there are any constraints or difficulties in following the instructions CSIR may be apprised of them so that suitable changes can be considered in the procedure and formats.

Over the years cost index has gone high and accordingly the value for the purposes of para 7 of O.M., dated 16.12. 1957 is raised to Rs. 5001-.

I shall request you kindly to ensure that maintenance of job cards in the workshop and costing thereof is effected as per instructions already issued and the present status may be reported to the CSIR at an early date. (CSIR letter No.6(1)/88-Reports, dated 10th/22nd August, 1988)

(5.5) Investment of Surplus Fund

(5.5.1) Investment of Money advanced by outside bodies in connection with Sponsored, Consultancy, Collaborative and Mission Projects/Schemes.

  1. In its efforts to increase the External Cash flow, CSIR is taking up more Projects/Schemes being financed partially or in full by outside Bodies. These money are received in advance which are gradually utilized with the progress of the Projects/Schemes. It has been observed that a huge amount always remain idle with the Bank in the current account of the Laboratories/Institutes which does not earn any interest.
  2. With a view to use this huge cash balance profitably and to increase the earning of the CSIR, DG-CSIR has been pleased to authorise the Directors of the National Labs./Instts. to invest money received in connection with Sponsored, Consultancy, Collaborative and Mission Projects/Schemes subject to the following conditions
    1. that the funds will be invested in short-term deposit in the name of CSIR;
    2. that the income from investment will be treated as earning of the Society as income from investment;
    3. that the money should be invested with Nationalised /State Banks or other short-term Government securities; and
    4. that the Directors should ensure that investment of funds is made in such a manner that there is neither any unnecessary accumulation of idle money with the Labs. nor there is paucity of cash at any point of time so as to hamper smooth progress of the projects /schemes/jobs.
  • While making investment. the payment may be debited to Code No.P-834 Sponsored/Consultancy etc. money under G-Deposit & Advances (Investment Account). Similarly on maturity, the capital may be credited to "Code No.304 - Sponsored, Consultancy etc. Money" under G-Deposit & Advance (Investment Account) and the interest credited to "Code No.R-158 - Interest on Account of Investment" under Miscellaneous Receipts of CSIR and intimated separately to CSIR Headqrs. Along with 'Monthly Progressive Expenditure Statement".
  • Earnings on account of interest on the aforesaid investment, would not be used directly by the Laboratories, but the same could be made available as additional allocation by the Headqrs. as and when required.
  • (CSIR letter No. 7(78)/Budget/90-91, dated 1st October, 1990)

    (5.5.2) Utilisation of Cash flow on Investment.

    I am to invite a reference to circular letter of even number dated 1. 10. 1990 regarding investment of surplus cash flow.

    In this connection, reference have been received from some of the Labs./Instts. seeking certain clarification regarding investment of funds relating to sponsored projects, consultancy projects etc. The position is clarified as under for necessary guidance of labs./lnstts. :-

    1. The intention behind the investment scheme circulated vide our letter dated 1. 10. 1990 is not actually for investment of money from any specific sponsored/consultancy project but integrated plan of efficient management of cash flow so as to ensure that adequate cash is available with the labs/Instts for regular expenditure including expenditure under Sponsored/Consultancy Project and any surplus cash which may not be required for immediate use, say during the month or so, should not remain idle in the current account maintained by the Labs./Instts. with Banks. As such it is felt that the investment would not in any way violate the general condition of expenditure as generally stipulated by the sponsors as regarding utilization of sponsored funds.
    2. Some of the Labs./Instts. have expressed their apprehensions that in the event of late transfer of funds from Hqrs. the Labs./Instts., may not be left with sufficient c ' ash balance to handle emergent payment. In this connection it may be stated that Hqrs. on its part will take adequate care that money transfer to the Labs. from CSIR is done expeditiously so that the lab. work does not suffer. It will not be wise to block large amounts of money mainly on imaginary fear that some amount may be needed for certain unforeseen eventualities. Such situation could be avoided if the Labs./Instts. takes enough care to plan and manage its cash-flow from various sources.
    3. As already stated in para 4 of our circular letter the earnings on account of interest on the aforesaid investment would not be used directly by the Labs./Instts. but the same would be credited to receipts of CSIR. Additional allocation from such receipts would be considered by CSIR from time to time. Quantum of earnings of Labs./Instts. will, how ever be indicated by the lab. to CSIR in the monthly statement of receipts and expenditure and statement of progressive receipts and expenditure.
    4. As per para 2(1) of the Circular letter the investment should be made in the name of the CSIR. The term 'CSIR' here means CSIR and its constituent units i.e. CSIR Headquarters and its Laboratories/Institutes.

    (CSIR letter No.7(78)/Budget/90-9 1, dated 3rd January, 1991)