1

Volume : 10 Jan. - Mar. 2006 Issue 4

Private circulation only.

The Wealth Within 1

From Management ServicesVendor Managed Inventory 2Energy Saving-Measures 3

From Audit ServicesHow much Internal AuditIs Enough? 4Relationship-Internal Audit &Audit Committee 5Economic Crime Survey 5

From Assurance ServicesNotifications 6Recent Judgements 7

Business DevelopmentNanotechnology 8

From Information Systems ServicesOverview of COBIT 4.0 9Tips to secure PC 10Try it for Free 10

Inhouse Happenings 11Think Tank 12Snippets

What They Once Said 4Does Your Blood TypeReveal Your Personality 7Did You Know? 8

An inhouse magazine of

Editor : Gita Srivatsan

An inhouse magazine of

Editor : Gita Srivatsan

THE WEALTH WITHIN

Consu l t ing L td

Feel – take a chance for your existence

Each one of us has an invisible thief that follows us wherever we go. What does thethief do? He robs us. Neither doors, nor locks, nor alarms can stop him. This thief doesnot take money or clothes. He robs us of the most valuable assets we have. He robs usof joy, peace, and contentment. He robs us of understanding. He robs us of all thosethings that are much more important than anything else.

When we say, “I want peace in my life, but . . . I will pursue it later,” we give permissionto this invisible thief to come in. This is his signal. All he has to hear is, ‘Not now”, andthe thief says, “Here is someone I can rob, because he is not protecting his most valuableasset”.

World war can seem tame compared to the battle that rages within a human being.Lifetimes are destroyed in this battle; precious moments are sacrificed; total decimationcan take place. The fight within is the biggest battle. We need to be at peace withourselves because on our own battlefield the “I” is being decimated.

The unrest within keeps us from finding true peace. As long as there is no peacewithin, there will always be war outside. The unrest of the body surely brings misery,but the misery that comes from the unrest of the heart is far worse. It has to be the mostmiserable thing there is. And yet, the heart has been enduring it for a long, long time.

Look for peace inside. Even if all the other wars end, as long as the war within us is stillraging on, we will not be in peace. If we are at peace with ourselves, then we will havethat peace, no matter what outer war is going on.

There is a smile that nothing can take away. This smile comes from such a deep placeof peace and celebration that nothing in this world can take it away. That is the smileeach one of us can smile. The peace that resides in this place, in the heart, is the onlypeace that will do.

-Maharaji

2

Management Advisory Serviecs

The longing for perfection exists because perfection exists inside.

IntroductionIntroductionIntroductionIntroductionIntroductionIn its simplest form, VVVVVendor Managed Inventorendor Managed Inventorendor Managed Inventorendor Managed Inventorendor Managed Inventoryyyyy is the processwhere a vendor assumes the task of generating purchaseorders to replenish a customer’s inventory.

VVVVVariations in Useariations in Useariations in Useariations in Useariations in UseThe real world implementations of VMI can be broken intothree main categories: collaboration, automation, and costtransference.A CollaborativeCollaborativeCollaborativeCollaborativeCollaborative Planning model consists of sharing data, andjointly developing forecasts and/or production schedulesamongst supplier chain partners. This process occurs at thetactical or item level. The ‘buyer’ collaborates with the supplieron demand/usage plans in order to develop an agreed uponconsensus forecast of future demand that both companies willuse to drive their business. Such a model is normallyapplicable to supply chains where a few, distinct items (StockKeeping Units or SKUs) generate substantial volumes ofbusiness.A Mandated TMandated TMandated TMandated TMandated Transferransferransferransferransfer model is a very simple process wherethe main goal of the buying organization is to transfer the activityand costs of managing inventory to the supplier (vendor). Thisprocess provides some value to the customer by offloadingwork and responsibility for inventory management, but the totalsupply chain benefit is nil as the supplier takes up the worksaved by the customer. Costs are either transferred back tothe buying organization, or erode the supplier’s operatingprofit.A FFFFFully Automatedully Automatedully Automatedully Automatedully Automated replenishment model combines the positiveelements from the other two models with a morecomprehensive goal of total supply chain cost reduction forthe replenished site and supplier. With goals established forinventory performance (turns) and service (fill rate), the VMIsoftware develops the replenishment strategy at the micro level(SKU level) to achieve the established goals at the lowest totalcost. Replenishment is done automatically based on the dailychanges in inventory and demand at the four stages of theFully Automated VMI model are as follows:

FFFFFour Stages Of The Four Stages Of The Four Stages Of The Four Stages Of The Four Stages Of The Fully Automated VMI Modelully Automated VMI Modelully Automated VMI Modelully Automated VMI Modelully Automated VMI Model

VENDOR MANAGED INVENTORY

CollaborationCollaborationCollaborationCollaborationCollaborationThe collaborative stage is critical in establishing the goals and‘Key Performance Indicators’ (KPI), for the VMI relationship.Periodically, this stage is revisited to review currentperformance and to adjust or reconfirm the goals andconstraints.

PlanningPlanningPlanningPlanningPlanningThe key to automating a replenishment process, is employingdynamic tools that are comprehensive enough to effectivelymanage a variety of demand patterns. If exceptions aredetected, they are analyzed for their degree of importance andthe user is automatically prompted for action.

ExecutionExecutionExecutionExecutionExecutionIn dynamic, volume intensive supply chains inventoryconditions can change suddenly. Each day the current supplychain positions (inventory, booked orders, specialcommitments, in-transit and future requirements) are analyzedagainst the plans to automatically determine the course ofaction. Execution stage can provide suppliers with valuableinformation beyond a purchase order quantity.

AssessmentAssessmentAssessmentAssessmentAssessmentThe old adage holds true in VMI, what gets measured getsfixed. Set the goals, determine the plan, execute against theplan, then measure how you did. When two companies arefocused on the same goals and have access to the same KPI,a true supply chain partnership emerges, resulting in a betterperforming supply chain.

KKKKKeys to Successeys to Successeys to Successeys to Successeys to SuccessDone effectively, VMI delivers tangible results throughout thesupply chain. To ensure that the full impact of the VMIexperience is realised, the keys to be followed for successare:

1. Set, review and maintain performance goals.

2. Manage all SKU’s through VMI to minimize supplychain transactions.

3. Conduct periodic performance reviews.

4. Use the metrics to find cost and inefficiencies, thenwork together to eliminate.

Astral Consulting LtdOur Work

can change the way

you work you work you work you work you work

3

Management Advisory Serviecs

Do you want to know what is new? Then be still for a while

Astral in the field ofBusiness Process Engineering Inventory Management Cost Consultancy

With conventional V-belts, the efficiency for powertransmission is low as high frictional engagement existsbetween the lateral wedge surfaces of the belts. This causesless power transmission and hence higher powerconsumption. V-belts contain higher bending cross sectionand large mass which cause higher bending loss. Also, aseach groove of the pulley contains individual V-belt, the tensionbetween the belt and the pulley distributes unevenly whichcauses unequal wear on the belt. This leads to vibrations andnoisy running, reduces power transmission and bearingdamage.

Replacement of VReplacement of VReplacement of VReplacement of VReplacement of V-belts by ener-belts by ener-belts by ener-belts by ener-belts by energy efficient flat beltsgy efficient flat beltsgy efficient flat beltsgy efficient flat beltsgy efficient flat belts.

With Flat-belts, the frictional engagement is on the outer pulleydiameter only. Some of the applications where conversion ofV-belts with Flat belts is much effective are Compressors,Milling machines, Sliding lathes, Rotary printing presses,Stone crushers, Fans, Generators in Hydroelectric powerplants etc.

Even though the Payback Period works out to be a little higherthan 1 year, it should be noticed on a long term basis.Considering a minimum of 2% saving on a 37 kw motor, thisworks out to Rs.25,000 per year.

Replacement of VReplacement of VReplacement of VReplacement of VReplacement of V-belts with clogged V-belts with clogged V-belts with clogged V-belts with clogged V-belts with clogged V-belts-belts-belts-belts-belts

Clogged V-belts, flat belts and synchronous belts can offerimproved efficiency when you consider their unique operatingcharacteristics. A recent study has shown that replacing V-belts with clogged V-belts can reduce energy consumptionby 0.4 to 10.0 percent, with typical payback ranging between1 and 5 months.

Installation of VInstallation of VInstallation of VInstallation of VInstallation of Variable Speed Driveariable Speed Driveariable Speed Driveariable Speed Driveariable Speed Drive

Incorporation of electronic adjustable speed control drivesfor motors driving pumps / fans / compressors requiringvariations in throughput on a continuous basis to matchproduction needs can typically save 14% to 27% of energy.

Conversion of Delta connection into Star ConnectionConversion of Delta connection into Star ConnectionConversion of Delta connection into Star ConnectionConversion of Delta connection into Star ConnectionConversion of Delta connection into Star Connection

The induction motor with a percentage loading below 50%would operate at lower efficiency in delta mode. Thisefficiency at low loading can be improved by converting delta

connection into star connection. The reported savings due tothis conversion varies from around 3% to 10% because therated output of motor drops to 1/3rd of delta configurationwithout affecting performance and the percent loadingincreases as compared to delta mode. This option does notrequire any capital investment and is one of the least costoptions available for the energy conservation in inductionmotors.

Using SofUsing SofUsing SofUsing SofUsing Soft Start Start Start Start Starterstersterstersters

Soft starters, which have solid-state electronic components,are used to control the input voltage according to the torquerequired by the driven equipment. Thus at almost all the load,the motor operates at the same efficiency and power factor.

This results in smooth starting of the motors by drawing lowercurrent and thus avoiding the high instantaneous currentnormally encountered. Starting current and torque are directlyrelated to the voltage applied when starting the motor. Byreducing the line voltage when the motor is started, soft starterreduces the starting inrush current and eliminates the highimpact or jerk starts that causes mechanical wear anddamage. Soft starters are useful in cases where motorsoperate with high impact loads. Some of the applications areCranes, Conveyors, Hoists, Compressors, Machine tools,Textile machinery, Food processing machinery etc.

Complied by SandeepAsst. Manager, Astral

POSSIBLE ENERGY SAVING MEASURES IN MOTOR APPLICATIONS

Our New Clientele

InterInterInterInterInternal Auditnal Auditnal Auditnal Auditnal Audit : Supertex Spinning Mills

InforInforInforInforInformationmationmationmationmationSystems AuditSystems AuditSystems AuditSystems AuditSystems Audit ::::: Jain Irrigation Systems Ltd.

WEP Peripherals Ltd

4

Internal Audit Services

In an environment of increasing emphasis on corporateaccountability, accurate and transparent financial reporting,and ethical business practices, companies are more intentthan ever on maximizing their internal control, riskmanagement and corporate governance processes.

A variety of new regulations are prompting them to strengthen- or, in some cases, create - internal audit functions. Whilefew would debate this necessity, it does raise an interestingquestion: How do businesses determine the appropriate levelof resources to devote to these efforts? Just how much internalaudit is enough?

InterInterInterInterInternal Audit is an Investment, Not Just a Costnal Audit is an Investment, Not Just a Costnal Audit is an Investment, Not Just a Costnal Audit is an Investment, Not Just a Costnal Audit is an Investment, Not Just a Cost

As you size up your operation, try to view your internal auditexpenditures as an investment rather than simply a cost. Aswith any investment, there must be a measurable return.

How much money did you save the organization based onwhat you spent? What problems were avoided as a result ofyour internal audit efforts? What is the perceived value ofyour team’s work? Were the Audit Committee, managementand internal audit customers satisfied? And how do you knowif your ROI is fair and reasonable? Are there other factorsyou should consider in measuring it?

Should InterShould InterShould InterShould InterShould Internal Audit Be a Vnal Audit Be a Vnal Audit Be a Vnal Audit Be a Vnal Audit Be a Variable Cost?ariable Cost?ariable Cost?ariable Cost?ariable Cost?

Deciding how to tailor your investment to match companycharacteristics is a big step forward, but it still doesn’t tellthe whole story. That’s because the risks and events abusiness experiences are not static challenges. There is anebb and flow to their occurrence, which calls for a nimbleand flexible internal audit function. To keep pace with today’sdynamic needs, internal audit should become, more of avariable cost.

Changes in risks and operations, such as a new softwarelaunch, management transition, spin-off or drop in revenuecan affect the nature of the risk and corporate governanceissues a company faces. Some of the resulting workloadmay be permanent, but some may be temporary or periodic.New risks from an acquisition, for example, may stabilizeonce the new unit is effectively established. And the time-intensive job of evaluating and documenting internal controlprocesses to support new reporting and attestationrequirements may be an intermittent responsibility. Unlessthe team’s strength and skills are adjusted to accommodatethese shifts, periods of over- and under-utilized internal auditresources cannot be wished away.

HOW MUCH INTERNAL AUDIT IS ENOUGH?

Love should never be taken for granted but granted an opportunity to grow

Risk Should Be the PRisk Should Be the PRisk Should Be the PRisk Should Be the PRisk Should Be the Primarrimarrimarrimarrimary Driver of Intery Driver of Intery Driver of Intery Driver of Intery Driver of Internal Auditnal Auditnal Auditnal Auditnal AuditInvestmentInvestmentInvestmentInvestmentInvestment

An effectively executed, regularly updated and properlycommunicated risk assessment should be the heart and soulof an internal audit program and will drive its configuration,size, skill base and focus (and therefore its cost).

It is risk that should clarify the skills needed, resources to behired, timing and depth of audit work undertaken. Too manycompanies today don’t have an adequate, regularly updatedand openly discussed risk assessment process as suggestedby COSO.

It should be much more commonplace for organizations tohave an actual list of their key business risks that arediscussed, debated and modified regularly at managementand Audit Committee meetings. And, of course, this risk andrisk-assessment mentality must cascade down into businessunits and major business processes.

After all, this is where risk often resides — in the actual day-to-day happenings within the organization as it servescustomers, interfaces with outsiders, motivates employeesand strives to adhere to internal policies as well as externalregulations. This driving down of risk assessment and dealingwith risk at the process and activity levels is especiallyimportant today as it is a requirement under corporategovernance.

What they once saidWhat they once saidWhat they once saidWhat they once saidWhat they once said

I think there is a world market for maybe five computers.Thomas Watson, chairman of IBM, 1943

Heavier-than-air flying machines are impossible.

Drill for oil? You mean drill into the ground to try and findoil? You’re crazy.

Drillers who Edwin L. Drake tried to enlistto his project to drill for oil in 1859.

Aeroplanes are interesting toys but of no military value.Marechal Ferdinand Foch, Professor of Strategy,

Ecole Superieure de Guerre.

640K ought to be enough for anybody. Bill Gates, 1981

5

Internal Audit Services

Relationship between the InterRelationship between the InterRelationship between the InterRelationship between the InterRelationship between the Internal Audit activitynal Audit activitynal Audit activitynal Audit activitynal Audit activityand the Audit Committeeand the Audit Committeeand the Audit Committeeand the Audit Committeeand the Audit Committee

The audit committee of the board of directors and theinternal auditors are interdependent and should bemutually accessible, with the internal auditorsproviding objective opinions, information, support, andeducation to the audit committee; and the auditcommittee providing validation and oversight to theinternal auditors.

The Institute of Internal Auditors (IIA) recognizes thataudit committees and internal auditors haveinterlocking goals. A strong working relationship isessential for each to fulfill its responsibilities to seniormanagement, board of directors, shareholders, andother stakeholders. Appropriate reporting lines for theinternal auditors are critical if they are to achieve theirrequisite independence, objectivity, and organizationalstature needed to effectively assess the organizationsinternal control, risk management, and governanceprocesses. Best practice recommends that, to achievenecessary independence, the internal auditor shouldreport directly to the audit committee or its equivalent.

Five activities are integral to an effective relationshipbetween the audit committee and the internal auditors.

The Chief Audit Executive (CAE) should:

Send to the audit committee periodic communicationson risks faced by the organization. This should beconsistent with what the CAE sends to seniormanagement.

Help the audit committee ensure that the committeecharter, activities, and processes are appropriate.

Ensure that internal auditing charter, role, and activitiesare clearly understood and responsive to the needs ofthe audit committee and the board.

Maintain open and effective communications with theaudit committee

Provide training, when appropriate, to the membersof the audit committee on the topics of risk and internalcontrol.

A direct channel of communication between the CAEand the audit committee is essential. The relationshipcan further be strengthened through explicitly allowingout-of-session communications between the CAE andthe audit committee chairperson, particularly in thecase of critical circumstances such as serious fraudand other material risk events.

Peace is the negation of war; it is the negation of warring tendencies in man.

Economic Crime SurEconomic Crime SurEconomic Crime SurEconomic Crime SurEconomic Crime Survey 2005vey 2005vey 2005vey 2005vey 2005

45% of companies worldwide have fallen victim toeconomic crime in the past two years– an 8 percentage point increase on the previoussurvey

Larger companies also detected a higher numberof economic crimes since 2003, reporting anaverage of 12 incidents, compared to an averageof 5 incidents reported by smaller companies

Despite perceptions that financial mis-representation and corruption & bribery are notparticularly prevalent, the number of companiesthat reported suffering incidents of these twofrauds has grown significantly since 2003

40% of the respondents reported significantdamage to their brand or reputation, a decline ofstaff morale or impaired business relations

The bitter experience of half of the companiessurveyed was that the perpetrators of fraud werefrom among their own staff

While fraud is perpetrated by all levels of staff,what is perhaps startling is the extent to which thesurvey showed members of senior managementare incriminated

The fact that fraud was detected by chancemeasures in over one third of cases is cause forconcern

The difficulty in adopting a proactive fraud riskmanagement system is a reflection of the deceitfulnature of fraud

Fraudsters within senior management werereported not only to have been dismissed lessfrequently than other grades of staff, but also tohave been subject to criminal charges lessfrequently

Only 10% of those companies that had not sufferedfraud thought it likely they would suffer in the futurecompared with 33% of the companies that hadexperienced fraud.

(Report of PWC - edited)

6

Assurance Services

Nightmares dwell in the future. Guilt is buried in the past. In this moment called now, there is pleasure and delight

Bank Account Disclosure to be mandatorBank Account Disclosure to be mandatorBank Account Disclosure to be mandatorBank Account Disclosure to be mandatorBank Account Disclosure to be mandatoryyyyyfor I-for I-for I-for I-for I-T refundT refundT refundT refundT refund

Disclosure of bank account details will soon be mandatoryto get refund of excess income tax paid. The I-TDepartment has decided that all cheques and pay ordersto be issued next year onwards will have the assessee’sbank account details printed on it.

Refund cheques will not be sent out beginning next yearuntil the assessee submits his bank account number andbranch code, revenue department sources said. Incometax assessees are required to submit their bank details inthe tax return form.

This is being done to prevent fraudsters from encashingsuch cheques by opening a false account. The proposalwill also reduce burden on the banks of physicallyverifying the cheques presented for payment with theadvice note issued by the tax department.

The tax department has also decided that where thesalaried assessee leaves the ECS mandate column in thetax return form blank, the refund would be made throughelectronic transfer. Only in cases where the income taxassessee specifically states that he does not want an ECStransfer-refusing the mandate to the tax department wouldthe refund be made by a cheque.

NOTIFICATIONS

ICAI Revises accounting norICAI Revises accounting norICAI Revises accounting norICAI Revises accounting norICAI Revises accounting norms on employeems on employeems on employeems on employeems on employeebenefitsbenefitsbenefitsbenefitsbenefits

Corporate, banks and financial institutions may not beallowed to carry forward beyond March 31, 2010 anyunamortized expenditures on termination benefits ofemployees, including voluntary retirement schemes (VRS)in their balance-sheets.

They can, however, defer for amortization over the pay backperiod all termination benefit expenses incurred by themon or before March 31, 2009.

In other words, a company can opt to defer and amortizeits VRS expenses over the payback period, but will have tocomplete its amortization by March 31, 2010.

This proposed accounting treatment for expenses ontermination benefits is reflected in the draft of the limitedrevision of the Accounting Standard on “employee benefits”(AS – 15), released by the Institute of Char teredAccountants of India (ICAI)

Business Line 30.12.05

Revenue deparRevenue deparRevenue deparRevenue deparRevenue department eases nortment eases nortment eases nortment eases nortment eases norms forms forms forms forms forregistration of EOUsregistration of EOUsregistration of EOUsregistration of EOUsregistration of EOUs

- Hindu Business Line, Dec 19

The Department of Revenue has prescribed a simpleprocedure for registration of export-oriented units (EOUs),electronic hardware technology parks (EHTP) andsoftware technology parks (STP) for clearance of importgoods, in a serious bid to bring down the transaction costin these exclusive export enclaves.

According to a recent notification issued by the revenuedepartment, every unit in EOU/EHTP/STP would berequired to submit six documents along with anapplication on plain paper for registration, in place of the25 documents being sought till now.

The six documents are a copy of the Letter of Permissionfrom the Development Commissioner, a copy of privatebonded warehousing license issued under Section 58 ofthe Customs Act, bank attested signatures of authorisedsignatories of the EOU/EHTP/STP units, passport sizephotograph of director/proprietor/signatories, a copy ofthe import-export code and a copy of the green card.

The new circular states that the customs authorities wouldgrant registration to EOUs within five workings days fromthe receipt of the application.

Due dates extended for filing of quarDue dates extended for filing of quarDue dates extended for filing of quarDue dates extended for filing of quarDue dates extended for filing of quarterly returterly returterly returterly returterly returnsnsnsnsnsunder Section 206Aunder Section 206Aunder Section 206Aunder Section 206Aunder Section 206A

CBDT has extended the due date for filing of quarterlyreturns under Section 206A for the quarters ended 30-June-2005 and 30-September-2005 to 31-January-2006.

Consu l t ing L td

When you give technology a long leash

... it helps to have

Someone Watching over it

7

Assurance Services

Make a distinction between events that happen in life and life itself.

Input includes Damaged Goods.Input includes Damaged Goods.Input includes Damaged Goods.Input includes Damaged Goods.Input includes Damaged Goods.

BPL Display Devices Ltd. Vs. CCEx - (2004) 174 E.L.T5 (SC)

Case FCase FCase FCase FCase Fact:act:act:act:act: Whether imported inputs damaged duringtransit can be considered as used for the manufacture ofspecified goods.

Decision :Decision :Decision :Decision :Decision : Held by the Court that no material distinctioncan be drawn between loss on account of leakage andloss on account of damage. The benefit under notificationno.13/97-Cus.cannot be denied as inputs were intendedfor use in the manufacture of final product but could notbe used due to shortage / leakage /damage

Liability to Deduct TDSLiability to Deduct TDSLiability to Deduct TDSLiability to Deduct TDSLiability to Deduct TDS

Wipro Ltd. Vs. ITO 30/12/2004 - (2005) 278 ITR (AT) 57(Bangalore)

Case FCase FCase FCase FCase Fact:act:act:act:act: Whether assessee was liable to deduct TDSfor payments made to foreign co. for providing access toits database on subscription basis.

Decision :Decision :Decision :Decision :Decision : Held that the foreign co. earned money byproviding copyrighted information on subscription basis.The subscription was in the nature of access fee todatabase maintained outside India. Thus such receiptscould not be treated as income accrued in India. Henceno TDS was required to be deducted.

Excise Duty on operational sofExcise Duty on operational sofExcise Duty on operational sofExcise Duty on operational sofExcise Duty on operational software loaded on thetware loaded on thetware loaded on thetware loaded on thetware loaded on thecomputercomputercomputercomputercomputer

CCE. Pondichery Vs. Acer India Ltd. 2004(172)E.L.T289 (S.C)

Case FCase FCase FCase FCase Fact:act:act:act:act: Is excise duty payable on the value ofoperational software loaded on the computer ?

Decision:Decision:Decision:Decision:Decision: The apex court held that the value of theoperational software loaded on the computer was notincludable in the assessable value of the computers.

Excise Duty - Credit on Input used outside FExcise Duty - Credit on Input used outside FExcise Duty - Credit on Input used outside FExcise Duty - Credit on Input used outside FExcise Duty - Credit on Input used outside Factoractoractoractoractoryyyyy

CCE Jaipur Vs. J.K.Udaipur Udyog Limited

Case FCase FCase FCase FCase Fact: act: act: act: act: Whether credit can be taken on Inputs, whichare used outside the factory.

Decision :Decision :Decision :Decision :Decision : Held by the Court that the inputs which arenot used in the factory can not be termed as Inputs forthe purpose of section 2(g) and also to avail credit oninputs it is necessary that they are received in the factory.

Deductions u/s 80-IBDeductions u/s 80-IBDeductions u/s 80-IBDeductions u/s 80-IBDeductions u/s 80-IB

Asstt. CIT Vs. Vipin Sardana 17/06/2005 - IT AppealNo.5174 (Delhi) of 2004

Case FCase FCase FCase FCase Fact:act:act:act:act: Whether deduction u/s 80-IB can be claimedon amount of duty drawback received by the assessee.

Decision :Decision :Decision :Decision :Decision : Held that since duty drawback has a directlink with the business activity of the assessee, suchamount is also eligible for deduction u/s 80-IB.

RECENT JUDGEMENTS

Does YDoes YDoes YDoes YDoes Your Blood Tour Blood Tour Blood Tour Blood Tour Blood Type Reveal Yype Reveal Yype Reveal Yype Reveal Yype Reveal Your Pour Pour Pour Pour PersonalityersonalityersonalityersonalityersonalityAccording to a Japanese institute that does research onblood types, there are certain personality traits that seemto match up with certain blood types. How do you rate?

TYPE OTYPE OTYPE OTYPE OTYPE O You want to be a leader, and when you seesomething you want, you keep striving until you achieveyour goal. You are a trendsetter, loyal, passionate, and self-confident. Your weaknesses include vanity and jealouslyand a tendency to be too competitive.

TYPE ATYPE ATYPE ATYPE ATYPE A You like harmony, peace and organization. Youwork well with others, and are sensitive, patient andaffectionate. Among your weaknesses are stubbornnessand an inability to relax.

TYPE BTYPE BTYPE BTYPE BTYPE B You’re a rugged individualist, who’sstraightforward and likes to do things your own way. Creative and flexible, you adapt easily to any situation.But your insistence on being independent can sometimesgo too far and become a weakness.

TYPE ABTYPE ABTYPE ABTYPE ABTYPE AB Cool and controlled, you’re generally well likedand always put people at ease. You’re a natural entertainerwho’s tactful and fair. But you’re standoffish, blunt, and havedifficulty making decisions.

What type of blood can you receive ?What type of blood can you receive ?What type of blood can you receive ?What type of blood can you receive ?What type of blood can you receive ?

YYYYYou Can Receiveou Can Receiveou Can Receiveou Can Receiveou Can Receive

O- O+ B- B+ A- A+ AB- AB+

AB+ Yes Yes Yes Yes Yes Yes Yes Yes

AB- Yes Yes Yes Yes

A+ Yes Yes Yes Yes

A- Yes Yes

B+ Yes Yes Yes Yes

B- Yes Yes

O+ Yes Yes

O- Yes

If YIf YIf YIf YIf YourourourourourTTTTType Isype Isype Isype Isype Is

8

Business Development

Nanotechnology, the most promising technology in the21st century, can have a far-reaching impact on science,technology and industrial sectors.

Nanotechnology is that branch of engineering, which dealswith things smaller than 100 nanometers (especially withthe manipulation of individual molecules).Nanotechnology and nanosciences are concerned withmaterials science and its application at the nanometerscale (1 billionth of a meter).

Faster computers, advanced pharmaceuticals, controlleddrug delivery, biocompatible materials, nerve and tissuerepair, better skin care and protection are some of theareas where nanotechnology is expected to have a majorimpact.

Core ConceptCore ConceptCore ConceptCore ConceptCore Concept

Manufactured products are made from atoms. Theproperties of those products depend on how those atomsare arranged.

If we rearrange the atoms in coal we can makediamond.If we rearrange the atoms in sand (and add a fewother trace elements) we can make computer chips.If we rearrange the atoms in dirt, water and air wecan make potatoes.

Today’s manufacturing methods are very crude at themolecular level. Casting, grinding, milling and evenlithography move atoms in great thundering statisticalherds. It’s like trying to make things out of LEGO blockswith boxing gloves on your hands. Yes, you can push theLEGO blocks into great heaps and pile them up, but youcan’t really snap them together the way you’d like.

In the future, nanotechnology will let us take off the boxinggloves. We’ll be able to snap together the fundamentalbuilding blocks of nature easily, inexpensively and in mostof the ways permitted by the laws of physics. This will beessential if we are to continue the revolution in computerhardware beyond about the next decade, and will also letus fabricate an entire new generation of products that arecleaner, stronger, lighter, and more precise.

WHY NANOTECHNOLOGY HOLDS THE KEY TO FUTURE?

Yours is the poem that sings out in your heart and awakens the joy.

If the reactions in the Sun’s core were to be “switched” offnow, it would be 10 million years before the solar surfacestarted to cool-and before the Earth felt the effects.

Only two flowering plants grow in Antarctica. One is grassand the other a relative of the carnation

Glass is not a solid, but a liquid.

The dinosaur noises in Jurassic Park come from elephants,geese and horses slowed down.

Most earthquakes happen under the sea.

When a human baby is crawling, he balances on three feet.

A baby giraffe falls about two metres before it lands on theground.

A python is not poisonous.

The average persons’ skin weighs about 27kg.

Without insects, there would be no flowers.

The first pocket television set was invented by Japanesefirm Matsushia. It is no bigger than a video cassette.

The night owl is not family to the owls.

Did You Know ?

Nanotechnology in IndiaNanotechnology in IndiaNanotechnology in IndiaNanotechnology in IndiaNanotechnology in India

President of India, A P J Abdul Kalam is a firm believer inthe benefits that nanotechnology can provide. He hasrepeatedly stressed on the need for India to focus onnanotechnology and nanosciences.

While, in information technology, India has the potentialof becoming the third largest knowledge power in theworld, nanotechnology can push India as one of the mostimportant technology nations in the world, the Presidenthas said. At present there are more than 30 institutions inthe country that are involved in R&D and trainingprogrammes in this space.

From the Internet

Astral in the field of Management Audit Operation Audit Process Mapping

Business Process Outsourcing

9

C.N.Srivatsan, Director, Astral Consulting Ltd has been part of the team of the IT Governance Institute (ITGI) which haspublished Cobit 4.00. Cobit 4.00 is an educational resource for CIO’s Senior management, IT Management and IT controlprofessionals. The ITGI was established in 1998 to advance institutional thinking and standards in directing and controllingan enterprise’s Information Technology.

Information Systems Services

Astral’s commitment to global research initiatives

Before you discover, you must explore.

OVEROVEROVEROVEROVERVIEW OF COBIT 4.0VIEW OF COBIT 4.0VIEW OF COBIT 4.0VIEW OF COBIT 4.0VIEW OF COBIT 4.0

COBIT 4.0 provides good practices across a domain andprocess framework. Like previous releases of COBIT, COBIT4.0 leverages the experience of numerous internationalexperts.

The COBIT control framework links IT initiatives to thebusiness requirements, organizes IT activities into a generallyaccepted process model, identifies the major IT resources tobe leveraged and defines the management control objectivesto be considered. COBIT 4.0 represents a consensus ofexperts from around the world who continually work togetherto maintain the relevancy, benefit and timeliness of COBIT.

COBIT 4.0 marks the first major update of the COBIT corecontent since the release of COBIT 3rd Edition in 2000. Thenew COBIT volume consists of four sections:

The executive overview

The framework

The core content (control objectives, managementguidelines and maturity models)

Appendices (mappings and cross references,additional maturity model information, referencematerial, a project description and a glossary)

The core content is divided according to the 34 IT processes.Each process is covered in four sections, combining to give acomplete picture of how to control, manage and measure theprocess. The four sections for each process, in order, are:

1. The high-level control objective for the processa. A process description summarizing the process

objectivesb. A high-level control objective represented in a waterfall

summarizing process goals, metrics and practicesc. The mapping of the process to the process domains,

information criteria, IT resources and IT governancefocus areas

2. The detailed control objectives for the process

3. Management guidelines: the process inputs and outputs,RACI (Responsible, Accountable, Consulted and/orInformed) chart, goals and metrics

4. The maturity model for the process

IT GoverIT GoverIT GoverIT GoverIT Governance Fnance Fnance Fnance Fnance Focus Areasocus Areasocus Areasocus Areasocus Areas

Strategic alignment Strategic alignment Strategic alignment Strategic alignment Strategic alignment focuses on ensuring thelinkage of business and IT plans, on defining,maintaining and validating the IT valueproposition, and on aligning IT operations withenterprise operations.

VVVVValue deliveralue deliveralue deliveralue deliveralue delivery y y y y is about executing the valueproposition throughout the delivery cycle,ensuring that IT delivers the promised benefitsagainst the strategy, concentrating on optimizingcosts and proving the intrinsic value of IT.

Resource management Resource management Resource management Resource management Resource management is about the optimalinvestment in, and the proper management of,critical IT resources: processes, people,applications, infrastructure and information. Keyissues relate to the optimization of knowledge andinfrastructure.

Risk management Risk management Risk management Risk management Risk management requires risk awareness bysenior corporate officers, a clear understandingof the enterprise’s appetite for risk, transparencyabout the significant risks to the enterprise, andembedding of risk management responsibilitiesinto the organization.

PPPPPerererererforforforforformance measurement mance measurement mance measurement mance measurement mance measurement tracks and monitorsstrategy implementation, project completion,resource usage, process performance andservice delivery, using, for example, balancedscorecards that translate strategy into action toachieve goals measurable beyond conventionalaccounting.

Source: www.isaca.org

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Wireless networks (WLAN) are getting more and morepopular among both private users and larger corporations.Most people are aware of the many advantages of using awireless network, bur not everybody is aware of the potentialdangers that can happen if one does not take the necessarysecurity steps.

It may seem harmless to let the neighbour or other personsuse your network. But it is far from being safe. Other peoplecan use your network connection for illegal downloading.Further, when using an unsecured wireless network your ownPC is also more exposed.

Intruders that are connected to your wireless network willhave much better ability to obtain access to your computer,with all the consequences involved, than if you are workingfrom a protected wireless network.

Here are some tips on how you should secure your PC whenyou are working from a wireless network:

1.1.1.1.1. Secure your network with an authorization keySecure your network with an authorization keySecure your network with an authorization keySecure your network with an authorization keySecure your network with an authorization key

One of the most common risks with today’s wirelessnetwork systems is that the users do not protect their ownInternet access from other potential users. If you do notsecure your network access with an authorization key(code), anyone who is close enough can use your networkconnection. In smaller towns or villages this is not aproblem, but inside big cities with people living close toeach other, it is not unusual to freeload on the neighbours’network.

2.2.2.2.2. Use a personal firewallUse a personal firewallUse a personal firewallUse a personal firewallUse a personal firewall

A personal firewall prevents you from being attacked byprotecting your machine from malicious and unnecessarytraffic. Firewalls can also be configured to block datafrom certain addresses. Good generic proven personalFirewall will hinder unauthorized users to access yoursystem and control all levels of communication. Goodgeneric proven personal Firewall has several servicefunctions, such as parental control, that makes it possibleto prevent access to certain pre-chosen sites.

Information Systems Services

Tips to secure PC connected in wirelessCompiled by AMS Rajesh Kanna

Try it for Free!Activity Monitor 3.8Activity Monitor 3.8Activity Monitor 3.8Activity Monitor 3.8Activity Monitor 3.8This remote surveillance and spy program monitors inreal time all computers in LAN. Activity Monitor allowsyou to monitor users’ activity on all computers in networkfrom a single PC in real time, and record each computer’susage history. Activity Monitor makes it easy to view, inreal time, the screens of the remote computers, all typedkeystrokes, visited Web sites, used programs. You canview a list of running processes and terminate undesirableones. You can start programs or execute commandsremotely, turn off or restart remote computers, log offusers, copy any files from remote systems, and sendinstant messages to remote users. Activity Monitor canrecord all user activity to the log file. This information canbe exported to HTML for convenient viewing in yourbrowser, or exported to MS Excel for analysis. This allowsyou to see how long users worked with particularprograms, how much time they spent on Internet, whatsites they visited, what they typed in e-mails or chats.

Source: www.download.com

3.3.3.3.3. Use antivirUse antivirUse antivirUse antivirUse antivirus programsus programsus programsus programsus programsGood and proven virus Control software protects you fromviruses, worms, Trojans and other malicious code. Byusing virus control you stop virus authors from infectingyour machine and prevent hackers from stealing personaland sensitive information.

4.4.4.4.4. Use antispyware and antiadware programsUse antispyware and antiadware programsUse antispyware and antiadware programsUse antispyware and antiadware programsUse antispyware and antiadware programsSpyware can also be used to steal sensitive informationsuch as bank account numbers, credit card numbers andother forms of private data, while adware may openunwanted marketing on your computer. With Goodgeneric proven Ad-ware your information is safe. Goodgeneric proven Ad-aware is a program that removesspyware and prevents you from having your Internetactivity monitored.

Astral in the field of Information Systems Audit ERP Consultancy BS 7799 Implementation

Master Data Verification IT Health Check Review SDLC Review

Aim as high as you can. Don’t let anything limit your faith.

11

Stars of the MonthStars of the MonthStars of the MonthStars of the MonthStars of the Month

P.M. Pandiyaraj - For Independently handling Statutory Audits / Tax Work.Catherine & Aruna

Stars of the WStars of the WStars of the WStars of the WStars of the Weekeekeekeekeek

A.M.S Rajesh Kanna - For excellent preparation and presentation for the workshop onORACLE DATABASE SECURITY at ICAI, Chennai on 26th & 27th November 2005.

R.Gowsalyaraman, - For in-depth analysis of operations in a Research Organisation Audit.M.Keerthy & C.Deena

Monthly PMonthly PMonthly PMonthly PMonthly Programmerogrammerogrammerogrammerogramme

03.12.05 “Effective Audit Committee” Mr.Sivakumar

03.12.05 & 17.12.05 CAAT alyze Training Miss.Jaishree

TTTTTechnology Update Wechnology Update Wechnology Update Wechnology Update Wechnology Update Workshop And Annual Dayorkshop And Annual Dayorkshop And Annual Dayorkshop And Annual Dayorkshop And Annual Day

The X Technology Update Workshop (TUW) is scheduled for the 11th and 12th of January,2006. The Pre Workshoptutorial will be held on 10th January.

The workshop would have 2 sessions, covering general and technical topics.

Common sessionsCommon sessionsCommon sessionsCommon sessionsCommon sessions T T T T Technical Sessionsechnical Sessionsechnical Sessionsechnical Sessionsechnical Sessions

WIP Concepts and Issues Business Impact Analysis

Six Sigma concepts WiFi Lan security

MRP Audit Financial analysis for auditors

Process Audit Internal Control manager in Oracle

SOD in ERP Energy Audit

Strategic Enterprise Management Hacking the network

The technical sessions would run on multiple tracks so that more specific topics could be covered. Externalfaculty have been invited for better perspective and understanding of the concepts.

The Annual Day would be held on 13th January, 2006, at 6 pm at the Ardra Conferencing Centre. A formalsession for an hour is planned, followed by entertainment and dinner.

We take this opportunity to invite all our clients and well wishers to our Annual Day.

BirBirBirBirBirthday Wthday Wthday Wthday Wthday Wishesishesishesishesishestototototo ononononon tototototo ononononon tototototo onononononSasikumar.M 2st January Gokulakanna 2nd March Priya S Anand 18th MarchGita Srivatsan 6th January Vijayakumar.D 5th March C.Venkiduswamy 24th MarchRajesh Khanna A.M.S 23rd February Gayathri.P 10th March A.RA.Naghavalle 28th March

WWWWWedding Bellsedding Bellsedding Bellsedding Bellsedding BellsM.Muthukumar weds Kavitha on 27.01.2006

Inhouse Happenings

The greatest productive force is human selfishness.

Everyone has potential; you just have to discover it.

12

"EXPRESSIONS"Inhouse Magazine

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Think Tank

Dr. Arun Gandhi, grand son of Mahatma Gandhi, shared thefollowing story as an example of “non-violence in parenting”:

“I was 16 years old and living with my parents at the institutemy grandfather had founded 18 miles outside of Durban,South Africa, in the middle of the sugar plantations. We weredeep in the country and had no neighbours.

One day, my father asked me to drive him to town for an all-day conference, and I jumped at the chance. When I droppedmy father off that morning, he said, ‘I will meet you here at5:00 p.m., and we will go home together.’

After hurriedly completing my chores, I went straight to thenearest movie theatre. I got so engrossed in a John Waynedouble-feature that I forgot the time. It was 5:30 before Iremembered. By the time I ran to the garage and got the carand hurried to where my father was waiting for me, it wasalmost 6:00.

He anxiously asked me, ‘Why were you late?’ I was soashamed of telling him I was watching a John Wayne westernmovie that I said, ‘The car wasn’t ready, so I had to wait,’ notrealizing that he had already called the garage. When hecaught me in the lie, he said: ‘There’s something wrong inthe way I brought you up that didn’t give you the confidenceto tell me the truth. In order to figure out where I went wrongwith you, I’m going to walk home 18 miles and think aboutit.’

So, dressed in his suit and dress shoes, he began to walkhome in the dark on mostly unpaved, unlit roads. I couldn’tleave him, so for five-and-a-half hours I drove behind him,watching my father go through this agony for a stupid lie thatI uttered.

I decided then and there that I was never going to lie again.

I often think about that episode and wonder, if he hadpunished me the way we punish our children, whether I wouldhave learned a lesson at all. I don’t think so. I would havesuffered the punishment and gone on doing the same thing.But this single non-violent action was so powerful that it isstill as if it happened yesterday. That is the power of non-violence”.

Non-violent Parenting An episode in reverse psychology

No offences meantA letter from a mother to her son ..A letter from a mother to her son ..A letter from a mother to her son ..A letter from a mother to her son ..A letter from a mother to her son ..My dear Lotta,I am in a well here and hoping you are also in a wellthere. I’m writing this letter slowly, because I know youcannot read fast. Your dad read in the newspaper thatmost accidents happen within 20 miles from home, so wemoved 25 miles away and are safe now.I won’t be able to send the address as the last bhayyawho stayed here took the house numbers, so he wouldnot have to change his address. Hopefully by next weekwe will be able to take our earlier address plate here, andthat our address will remain same too.This place is really nice. The weather here isn’t too bad. Itrained only twice last week. The first time it rained for 3days and second time for 4 days.Your sister had a baby this morning. I haven’t found outwhether it is a girl or a boy, so I don’t know whether youare an Aunt or Uncle.Nothing much has happened.Love Mom.P.S: Lotta, I was going to send you some money but by thetime I realized, I had already posted off this letter.

Put passion, zeal, and enthusiasm into everything you do.