INSTITUTE OF CERTIFIED MANAGEMENT ACCOUNTANTS OF SRI LANKA

Transcription

1

2

3 2013 1

4 2013 2

5 2013 3

6 2013 4

7 2013 5

8 2013 Notice of the Annual General Meeting Notice is hereby given that the 14 th Annual General Meeting of the Institute of Certified Management Accountants of Sri Lanka will be held at the Hotel Taj Samudra Longdon Room on Friday 29 th August 2014 at 5.30 p.m. to consider the matters outlined in the following agenda. Agenda 1. To receive and adopt the report of the Governing Council for the year ended 31 st December To receive and adopt the audited accounts and auditors report for the year ended 31 st December To re-appoint KPMG Chartered Accountants as auditors for the ensuing year and to fix their remuneration. 4. Any other business of which prior notice had been given. By order of the Council, M.B. Ismail Vice-President 9 th July,

9 2013 7

10 2013 8

11 Training Programme for Public sector. (a) Foundation course in Accountancy & Business studies for Divineguma Department. CMA signed a MOU with department of Samurdhi Authority of Sri Lanka empowering CMA to develop & conduct a course leading to the Foundation Certificate in Accountancy & Business Studies for the individuals who are employees in the Samurdhi Authority of Sri Lanka ( now Divineguma Department ). This course consists of hours of lectures, workshop and assignment discussions, spanning over 7 days.five programs were held in the year 2013, 2 pilot projects held on testing basis. Divineguma Department offered this programme to be continued for the year 2014 as well. Samurdhi Authority of Sri Lanka has offered CMA to do another 6 months Certificate course for their officers who have completed the Foundation Course and will be commencing in year 2014 simultaneously with the Foundation Course. (b) Special Conversion Programme for Arts students. CMA has opened doors for Arts undergraduates, degree holders and arts students of G.C.E A/L introducing a conversion programme to become a Professsional Management Accountant. This programme is for those who have no background in accounting and intends to provide knowledge and competency in Management Accounting, Financial Accounting and Business Mathematics & Statistics. Students need to do 3 subjects in total under this conversion programme. With completion of this conversion programme, students are eligible to do CMA with attractive exemptions. This conversion programme has been launched to fulfill the requests made from various universities to introduce a conversion programme for arts students, opening a pathway for them to become professionals employable in both private and public sector organizations. 2.4 Practical Experience Requirement Guide (PER). To apply for ACMA membership students need to complete all CMA examinations and the practical experience requirement as per the PER guide.the Practical Experience Requirement (PER) has been developed based on the International Education Standard 5 Practical Experience Requirement (IES 5) of International Federation of Accountants (IFAC). CMA PER focuses on following skills areas. Technical Skills Focus on testing proficiency in core Financial Accounting, Management Accounting and finance skills of the trainee. Business Skills Examine the trainees professional knowledge and competencies on organisation and business environment they are working in. Interpersonal & Communication Skills Test the trainees ability in communication skills required for critical analysis and professional judgement to make effective decisions in the work place Personal Skills It is about testing development of attitudes, values and behaviours of professional accountants. 9

12 2013 The above skill areas have been designed to produce competent Professional Management Accountants as per the guidelines set out by IFAC. 2.5 Continuing Professional Development (CPD) To obtain Fellow Membership it is essential to ensure personal career development and progression through more advanced learning activities. The Continuing Professional Development (CPD) guide has been developed in accordance with IES7 of IFAC for career development and progression. The members are required to complete a minimum of 20 CPD hrs per year. 3. Code of Ethics & Disciplinary code CMA Code of Ethics based on Code of Ethics for Professional Accountants issued by the International Federation of Accountants (IFAC) has been issued to members with the permission of IFAC. Code of Ethics is mandatory for all members of CMA to observe in the performance of professional services in Sri Lanka. Codes of Ethics and the disciplinary code applicable to members was published in government gazette no. 1853/52 on 15 th March, 2014 & now in force. 4. CMA Examination 4.1 CMA Examination is conducted bi-annually in May & November with the assistance of the Department of Examinations, and once again we wish to convey our gratitude to the Commissioner General of Examinations and his staff for the support given to us. In addition to conducting the examination in Sri Lanka we are conducting our examinations in the Dubai Centre from May 2012 with the assistance of the Sri Lanka Consul General in Dubai and Ministry of External affairs. Results of the May 2013 and November 2013 are tabled below: May 2013 Nov Total Foundation Level Operational Level Managerial Level Strategic Level Integrated Case Study students have completed the CMA final examinations in CCA Examinations Certificate in Computerized Accounting (CCA) examinations were held in April, August and December. The course provides hand on experience on IT & Accounting subjects. 19 students have completed CCA during the year

13

14 e-study programme The Institute of Certified Management Accountants (CMA) of Sri Lanka completed yet another milestone in their journey to bring the Management Accounting professional qualification closer to home with e-learning. Students who wish to enroll to the CMA virtual classroom, or existing CMA students that wish to switch-over to the virtual classroom are provided with the e-learning option of study. CMA provides mentors for each subject paving the way for interactive learning sessions as well. The study content has been presented in a user friendly manner and has been analyzed by experts to maintain standards. Examinations will be held with the support of the Department of Examinations in the usual examination centers. To those presently working and do not have sufficient time to participate in lectures, the e- Learning facility is an ideal opportunity to reach their goal of obtaining a professional qualification in Management Accounting. Similarly, A' level students contemplating their future are given the value added service of e-learning while undertaking other employed, courses of study or work. To those in the universities and outstations this provides a convenient mode of learning for a professional qualification. 7. Student Membership As at 31 st December 2013 the total Students stood at 16, a) Membership As at 31 st December 2013, CMA membership stood at 2,253 consisting of 629 Fellow Members and 1624 Associate Members. b) Professional Excellence Awards The following members received the CMA Professional Excellence Awards at the CMA International Management Accounting Conference in the year Mr. Asita D.B. Talwatte Mr. Asoka Jayasinghe Mr. D.S.W. Andradi Dr. Damian Sunil Abeyratna Mr. Gamini Wimalasuriya Mr. Yudhishtran Kanagasabai Mr. Indrajith Fernando Mr. Lal Nanayakkara Mr. J.M.U.B. Jayasekera Mr. N.R. Gajendran Mr. Rajan Asirwatham 12

15

16

17

18

19

20

21 2013 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF INSTITUTE OF CERTIFIED MANAGEMENT ACCOUNTANTS OF SRI LANKA (INCORPORATED BY PARLIAMENT ACT, NO 23 OF 2009) Report on the Financial Statements We have audited the accompanying financial statements of the Institute of Certified Management Accountants of Sri Lanka ( the Institute ), which comprise the statement of financial position as at 31 December 2013, and the statements of comprehensive income & expenditure and accumulated fund and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. Governing Council s Responsibility for the Financial Statements Governing Council is responsible for the preparation and fair presentation of these financial statements in accordance with Sri Lanka Accounting Standard for Small and Medium-sized Entities ( SLFRS for SMEs ). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Scope of Audit and Basis of Opinion Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Sri Lanka Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting policies used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. We therefore believe that our audit provides a reasonable basis for our opinion. Opinion In our opinion, so far as appears from our examination, the Institute maintained proper accounting records for the year ended 31 December 2013 and the financial statements give a true and fair view of the financial position of the Institute as at 31 December 2013, and of its financial performance and its cash flows for the year then ended in accordance with SLFRS for SMEs. CHARTERED ACCOUNTANTS 02 June 2014 Colombo 19

22 2013 STATEMENT OF FINANCIAL POSITION As at 31 December, Note Rs. Rs. Assets Non current assets Property, plant and equipment 2 53,803,043 53,478,883 Deferred tax asset 3 36,237 36,237 Total non current assets 53,839,280 53,515,120 Current assets Inventories 4 1,164, ,217 Deposits and prepayments 5 314, ,456 Other receivables 6 311,331 90,000 Short term investments 7 9,402,830 3,164,231 Cash and cash equivalents 8 799, ,373 Total current assets 11,993,172 4,843,277 Total assets 65,832,452 58,358,397 Accumulated fund and liabilities Accumulated fund 9 33,056,429 23,915,226 Non current liabilities Defined benefit obligations 10 1,687, ,050 Interest bearing loans 11 25,000,000 27,000,000 Total non current liabilities 26,687,355 27,857,050 Current liabilities Accrued expenses and other payables 12 3,185,636 1,855,879 Interest bearing loans 11 2,000,000 2,000,000 Income tax payable 13 64, ,701 Refundable deposits 700,000 1,240,000 Bank overdraft 138,426 1,253,541 Total current liabilities 6,088,669 6,586,121 Total liabilities 32,776,024 34,443,171 Total accumulated fund and liabilities 65,832, ,358,397 The financial statements are to be read in conjunction with the related notes, which form an integral part of these financial statements of the Institute. The Governing Council is responsible for the preparation and presentation of these financial statements in accordance with SLFRS for SMEs. Signed and approved for and on behalf of the Governing Council:.. Prof.L.R.Watawala President.. M.B.Ismail Vice President 02 June 2014 Colombo 20

23 2013 STATEMENT OF COMPREHENSIVE INCOME & EXPENDITURE AND ACCUMULATED FUND For the year ended 31 December, Note Rs. Rs. Income Registration fees and annual subscriptions 14 14,052,727 13,434,350 Examination and exemption fees 23,490,700 20,375,100 Net surplus from seminars and other activities 15 2,608, ,807 Other income 16 4,478,633 2,967,574 Total income 44,630,678 37,240,831 Expenditure Staff cost 17 7,763,619 7,499,412 Administrative and establishment expenses 18 22,893,684 24,289,190 Finance expenses 19 4,765,141 2,328,895 Total expenditure 35,422,444 34,117,497 Surplus before taxation 9,208,233 3,123,334 Income tax expense 20 (67,030) (21,466) Surplus for the year 9,141,203 3,101,868 Accumulated fund at the beginning of the year 23,915,226 20,813,358 Accumulated fund at the end of the year 33,056,429 23,915,226 The financial statements are to be read in conjunction with the related notes, which form an integral part of these financial statements of the Institute. 21

24 2013 STATEMENT OF CASH FLOW For the year ended 31 December, Rs. Rs. Cash flows from operating activities Surplus before taxation 9,208,233 3,123,334 Adjustments for: Gratuity provision 830, ,275 Depreciation 1,002, ,905 Interest income (1,203,934) (679,600) Loan interest 4,662,606 2,224,866 Over/(under) provision of examination expenses 145,102 (636,540) Operating cash flow before working capital changes 14,644,551 4,897,240 (Increase) in inventories (414,746) (151,451) (Increase) / decrease in deposits and prepayments (84,664) 142,408 Decrease in deferred expenditure - 1,758,432 Decrease in receivable from Institute of Certified Professional Managers - 183,246 Increase in other receivables (221,331) (68,167) Increase/(decrease) in accrued expenses and other payables 1,184,657 (242,037) (Decrease)/Increase in refundable deposits (540,000) 1,240,000 Cash generated from operations 14,568,466 7,759,671 Gratuity paid - (229,975) Income tax paid (239,124) - Loan interest paid (4,662,607) (2,224,866) Net cash generated from operating activities 9,666,735 5,304,830 Cash flows from investing activities (Investments)/withdrawal in short term investments (5,921,849) 15,997,159 Acquisition of property and equipment (1,326,400) (52,744,191) Interest received 887,184 1,639,851 Net cash used in investing activities (6,361,065) (35,107,181) Cash flows from financing activities Loan obtained during the year - 30,000,000 Repayment of loan (2,000,000) (1,000,000) Net Cash (used in)/generated from financing activities (2,000,000) 29,000,000 Net increase/(decrease) in cash and cash equivalents during the year 1,305,670 (802,351) Cash and cash equivalents at the beginning of the year (644,168) 158,183 Cash and cash equivalents at the end of the year (Note 8) 661,502 (644,168) The financial statements are to be read in conjunction with the related notes, which form an integral part of these financial statements of the Institute. 22

25 2013 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December Accounting policies 1.1 Reporting entity The Institute of Certified Management Accountants of Sri Lanka ( the Institute ) was incorporated under Act of Parliament No.23 of 2009 on the 20 th of April 2009 as the successor to the Society of Certified Management Accountants of Sri Lanka ( the Society ). The Society has ceased to function with effect from 20 April 2009, The Society of Certified Management Accountants of Sri Lanka was incorporated on 29 June 1998 as an Institute in accordance with the provisions of the Societies Ordinance. The registered office and the principal place of business of the Institute is located at No. 29/24, Visaka Lane, Colombo Principal activities The principal activities of the Institute are as follows: To provide membership to those accountants engaged in the profession of Management Accountancy; To promote the study of the theory and practice of Management Accountancy in all aspects; To register, educate and train any person who is contemplating to become a member of the Institute; and To conduct examinations and to grant membership to those who have passed all the examinations and complied with practical training requirements. 1.2 Basis of preparation (a) Statement of compliance The financial statements of the Institute comprise the statement of financial position, statement of comprehensive income and accumulated fund, statement of cash flow, and notes to the financial statements. These statements are prepared in accordance with Sri Lanka Financial Reporting Standard for Small and Medium sized Entities (SLFRS for SME) laid down by the Institute of Chartered Accountants of Sri Lanka ("ICASL"). (b) Basis of measurement The financial statements have been prepared on the historical cost basis. No adjustments have been made for inflationary factors in the financial statements. (c) Functional and presentation currency These financial statements are presented in Sri Lankan Rupees (LKR), which is the Institute's functional currency. 1.3 Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements. (a) Property and equipment Property and equipment are stated at historical cost less accumulated depreciation. The provision for depreciation is calculated on the cost of all property and equipment as follows: Years Building 40 Furniture 5 Computers 5 Office equipment 5 Depreciation is recognized in the Statement of comprehensive income and accumulated fund on a straight line basis over the estimated life of each part of an item of property and equipment on a pro-rata basis. 23

26 2013 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2013 (b) Inventories Inventories have been valued at the lower of cost or net realizable value. Cost is arrived at on a weighted average basis. (c) Short term investments Investments in money market instruments with a maturity period of over three months are treated as short term investments and are stated at cost. (d) Debtors and other receivables Debtors and other receivables are carried at anticipated realizable value. An estimate is made for bad and doubtful receivables based on a review of all outstanding amounts at the year end. (e) Cash and cash equivalents Cash and cash equivalents comprise cash in hand, deposits held at call with bank, and investments in money market instruments with a maturity period of less than 3 months. For the purpose of the statement of cash flows, cash and cash equivalents comprise cash in hand, deposits held at call with bank, and investments in money market instruments, net of bank overdrafts. In the statement of financial position, bank overdrafts are included with borrowings under current liabilities. Cash flow statement Statement of Cash flow has been prepared using the indirect method. (f) Liabilities and provisions Liabilities are recognized in the statement of financial position when there is a present obligation as a result of past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits. Obligations payable on demand or within one year of the reporting date are treated as current liabilities in the reporting date. A provision is recognized if, as a result of a past event, the Institute has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. (g) Taxation The provision for income tax is based on the elements of income and expenses reported in the financial statements and computed in accordance with the provision of the Inland Revenue Act No. 10 of 2006 and its amendments thereto. (h) Employee benefits i. Defined benefit plan Provision for retirement gratuity has been made for employees who have completed one year of service with the Foundation. However under the payment of Gratuity Act No. 12 of 1983, the liability for gratuity arises only on completion of five years continued service. ii. Defined contribution plan Obligation for defined contribution plans are recognized as an expense in the statement of comprehensive income and accumulated fund as incurred. The Institute contributes 12% and 3% of gross emoluments of employees to Provident Fund and Trust Fund respectively. (i) Revenue recognition Renewal and enrolment fees from members and students are accounted on cash basis. Profit/loss on examination, seminars, courses and other educational and members activities are taken to income and expenditure account in the year of completion of such activity 24

27 2013 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2013 Interest income is recognized on an accrual basis (j) Other non-operating expenses All expenditure incurred in the operation of the business and in maintaining the capital assets in a state of efficiency have been charged to income in arriving at the Institute s profit for the year. (k) Comparative information Where necessary, comparative figures have been rearranged to conform to the current year s presentation. (l) Events occurring after the reporting date All material events after the reporting date have been considered and, where appropriate, adjustments or disclosures have been made in respective notes to the financial statements. (l) Commitments and contingencies Contingencies are possible assets or obligations that arise from a past event and would be confirmed only on the occurrence or non-occurrence of uncertain future events, which are beyond the Institute s control. Commitments and contingent liabilities are disclosed in Notes to the financial statements. 25

28 NOTES TO THE FINANCIAL STATEMENTS As at 31 December, 2 Property, plant and equipment Total Office equipment Furniture and fittings Building Computers Freehold Land Rs. Rs. Rs. Rs. Rs. Rs. Cost Balance at the beginning of the year 32,625,000 19,978,041 2,545,729 1,172,050 1,691,042 58,011,862 Additions during the year - 122, ,600 28, ,869 1,326,400 Balance at the end of the year 32,625,000 20,100,540 3,174,329 1,200,482 2,237,911 59,338,262 Accumulated depreciation Balance at the beginning of the year - 242,812 2,096,626 1,117,125 1,076,417 4,532,980 Charge for the year - 517, ,385 24, ,190 1,002,239 Balance at the end of the year - 760,788 2,322,011 1,141,813 1,310,607 5,535,219 Carrying amount as at ,625,000 19,339, ,318 58, ,304 53,803,043 Carrying amount as at ,625,000 19,735, ,103 54, ,625 53,478,883

29 2013 NOTES TO THE FINANCIAL STATEMENTS As at 31 December, Rs. Rs. 3 Deferred taxation Deferred tax liabilities (Note 3.1) (49,468) (49,468) Deferred tax assets (Note 3.2) 85,705 85,705 36,237 36,237 The movements on the deferred tax account are as follows: 3.1 Deferred tax liabilities Balance at the beginning of the year (49,468) (36,047) Origination during the year - (13,421) Balance at the end of the year (49,468) (49,468) 3.2 Deferred tax assets Balance at the beginning of the year 85,705 83,575 Origination during the year - 2,130 Balance at the end of the year 85,705 85,705 As at 31 December, Rs Rs. 4 Inventories Study packs and Sage CD-CAT 22,750 40,387 Study packs - English 759, ,965 Study packs - Sinhala 319, ,593 Study packs - Tamil 36,918 14,423 Past papers and pilot papers- English 22,674 22,849 Study packs - CDs 3,024-1,164, ,217 5 Deposits and prepayments Prepayments 200, ,256 Deposits 17,250 57,250 Festival advance 96,870 62, , ,456 27

30 2013 NOTES TO THE FINANCIAL STATEMENTS As at 31 December, Rs. Rs. 6 Other receivables Staff loan 11,883 - Rent receivable - 90,000 Receivables - SAFA CMA conference 12,000 - Receivables - CMA budget seminar 6,900 - Receivables - CMA students guild 2,500 CMA Commonwealth Association of Sri Lanka 191,358 - ESS - payroll account 86, ,331 90,000 7 Short term investments at amortized cost Fixed deposits - People's Bank 9,402,830 3,164,231 9,402,830 3,164,231 8 Cash and cash equivalents Cash at bank- Commercial Bank of Ceylon PLC 17, ,822 Cash at bank- People's Bank 752, ,551 Petty cash 30,000 15, , ,373 Bank overdraft (138,426) (1,253,541) Cash and cash equivalents for cash flow purpose 661,502 (644,168) 9 Accumulated fund Balance at the beginning of the year 23,915,226 20,813,358 Surplus for the year 9,141,203 3,101,868 Balance at the end of the year 33,056,429 23,915, Defined benefit obligations Balance as at the beginning of the year 857, ,750 Provision for the year 830, ,275 Payments made during the year - (229,975) Balance at the end of the year 1,687, , Interest bearing loans Balance at the beginning of the year 29,000,000 - Loans obtained during the year - 30,000,000 Repayments during the year (2,000,000) (1,000,000) Balance at the end of the year 27,000,000 29,000,000 Due after one year 25,000,000 27,000,000 Due within one year 2,000,000 2,000,000 27,000,000 29,000, Accrued expenses and other payables Telephone 35,666 48,088 Audit fee 108, ,000 Electricity 27,681 - Water 7,767 7,835 Payable to Institute of Certified Professional Managers 149,171 51,445 EPF and ETF 96,419 95,749 Balance brought forward 424, ,117 28

31 2013 NOTES TO THE FINANCIAL STATEMENTS As at 31 December Rs. Rs. 12 Accrued expenses and other payables (Cont.) Balance carried forward 424, ,117 Overtime 15,444 9,519 Examination expenses payables 1,392,451 1,166,873 Security service 75,399 59,408 Sundry creditors 1,227, ,962 Payable - Loops Business Solutions 50,409-3,185,636 1,855, Income tax payable At the beginning of the year 236, ,526 Provision for the year 67,030 10,175 WHT deducted (3,364) Tax over payment in 2012/2013 (7,785) Payments made during the year (227,975) - At the end of the year 64, ,701 For the year ended 31 December, Rs Rs 14 Registration fees and annual subscription Students - CMA 6,106,685 5,526,400 Members - CMA 7,480,592 7,457,500 Members - AMA 139, ,800 Students - CA & IT 325, ,650 14,052,727 13,434, Net surplus / (deficit) from seminars and other activities Surplus on sale of study packs - CMA - English 1,025, ,594 Surplus on sale of study packs - CMA -Sinhala 425,316 35,763 Surplus on sale of study packs - CMA -Tamil 19,439 - Surplus on sale of study packs - CDs 303,473 - Surplus on sale of past papers - English - 3,498 Surplus on CMA founders meeting (599,930) - Project management workshop 54,469 - GRI workshop 11,315 - Induction ceromony (386,244) - IFRS seminar , ,131 IFRS seminar ,140 - Seminar - Management Conference 1,324,300 12,983 - Seminar on budget 112, ,238 - Sustainable Entrepreneurship and leadership 63,500 - Members' meeting - (218,612) Round table discussion - (58,879) CMA students' conference - Cochin - (125,909) CMA staff activities - Blood donation 3,948-2,608, ,807 29

32 2013 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December, Rs. Rs. 16 Other income Fixed deposit interest 1,203, ,600 Computer centre 129, ,000 E-learning course 127, ,775 Sundry income 723, ,669 Rent income 1,930, ,490 Certificate course in Management Accounting 410,781 - IMA class 50,250 - CMA case study class 47,822 54,500 (Under)/over-provision of examination expenses (145,102) 636,540 4,478,633 2,967, Staff cost Staff salary 4,469,953 4,363,881 EPF/ETF 716, ,197 Consultancy fee 707,750 1,426,300 Bonus 420, ,550 Overtime 250, ,656 Gratuity provision 830, ,275 Staff welfare 272, ,953 Staff training and recruitment 95,229 21,600 7,763,619 7,499, Administrative and establishment expenses Advertising 4,131,430 2,545,960 Printing and stationery 1,280, ,475 Rent - 590,000 Expenses for exhibition 733, ,891 Promotion expenses 1,110, ,681 Depreciation 971, ,151 Examination expenses 5,288,989 6,046,879 Postage 691, ,531 Computer center expenses 465, ,257 E-learning course expenses 461, ,784 Other expenses 13,845 11,578 Telephone 594, ,474 Legal - 381,850 Office maintenance 85,686 31,898 Electricity 393, ,240 Professional services 518, ,918 Travelling 290, ,795 Audit fee 112, ,527 Office equipment maintenance 264, ,970 Water 73, ,383 Insurance 64,162 85,036 Rent - library building Balance brought forward - 36,000 17,545,638 15,720,278 30

33 2013 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December, Rs. Rs. 18 Administrative and establishment expenses (Cont.) Balance carried forward 17,545,638 15,720,278 SAFA conference 843, ,407 Graduation ceremony 697, ,770 Students' seminar 41, ,939 Pre-examination seminar 110,850 - Management Accounting Journal 458, ,500 IMA class payments 65,305 - BMS programme 20,000 - Committee meeting & discussion 74,205 - Donations 3,000 5,600 AGM expenses 199, ,728 Foreign travelling - 446,828 Travelling allowance 375, ,625 CMA class at Wesley College - 183,812 Agreements and annual charges 1,255, ,809 Arrears payments CMC ,000 ICMA launch expenses - 605,662 Study text and syllabus revision 579,594 3,755,129 CMC assessment tax 153,847 70,223 CMC trade tax - 7,736 Security service 471, ,144 22,893,684 24,289, Finance expenses Loan interest 4,662,607 2,224,866 Bank charges 57,072 80,048 Overdraft interest 45,462 23,981 4,765,141 2,328, Taxation Current tax expense 67,030 10,175 Origination/(reversal) of temporary differences - 11,291 67,030 21,466 The Institute is liable for income tax at the rate of 10% on its taxable income in excess of the tax free allowance of Rs. 500,000/- as per the Inland Revenue Act No. 10 of 2006 and amendments thereto. 21 Related party transactions 21.1 Transactions with key management personnel The Institute considers its Governing Council as the key management personnel of the Institute. Compensation paid to key management personnel of the Institute is as follows: Rs. Rs. Short term employee benefits Nil Nil Post employment benefits Nil Nil 21.2 Transactions with related parties Prof.Lakshman R. Watawala, the President of the Institute, is also the President of The Institute of Certified Professional Managers. 31

34 2013 NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December Related party transactions (Cont.) Mr.M.B.Ismail, a member of Governing Council of the Institute, is also a Council member of The Institute of Certified Professional managers. Mr.M.B.Ismail, a member of Governing Council of the Institue, is also a Partner of SJMS Associates. Mr.M.B.Ismail, a member of Governing Council of the Institute, is also a Director of Enterprise Support Services (Pvt) Ltd. The aggregate value of transactions and receivable balance relating to entities in which a Member of Governing Council of the Institute is also a Member of Governing Council of the following institutes: Name of the Institute Transaction amount Period ended Nature of transaction /12/ /12/2012 Institute of Certified Professional Managers Expenses reimbursed 97, , ,171 51,445 SJMS Associates Professional services 12,000 12,000 NIL - Enterprise Support Services (Pvt) Ltd Professional services 56,811 68,943 28, Commitments There were no commitments outstanding as at the reporting date. 23 Contingent liabilities The Institute has no significant contingent liabilities as at the reporting date. 24 Number of employees Number of employees of the Institute as at 31 December 2013 is 21 (as at 31 December 2012 : 20) 25 Litigations and claims There are no litigations and claims as at reporting date. 26 Events occurring after the reporting date There are no events occurring after the reporting date which require adjustments to or disclosures in the financial statements. 27 Approval of financial statements These financial statements were approved by the Governing Council and authorised for issue on 02 June

35