Indian Society of Heating, Refrigerating &

Air-Conditioning Engineers

Financial Discipline Manual

Fifth Edition
Society Year 2020-21

REVISION – R1

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 FOREWORD

 The Financial Discipline Manual (FDM) is an essential appendage to the Chapters

Operation Manual (COM) which is currently valid.

 The FDM is to be read in conjunction with the COM and requires to be revised and
reissued from time to time.

 A Society as large as ISHRAE with many chapters and Sub-Chapters and growing day
by day and attracting new members, are required to maintain such documents/
compliances, which will ensure sound financial discipline for the office bearers of the
society at HQ, Chapters and Sub-Chapters and it is the earnest hope of the Finance
Committee that this manual will serve that purpose.

 The FDM is an important document for society’s operations which shall be explained
in detail to all the office bearers of ISHRAE. Ideally this may be done along with the
Chapter operations orientation program which happens immediately after installation
of office bearers.

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 TABLE OF CONTENTS

S. NO. PARTICULARS PAGE NOS.

1. MEMBERS OF FINANCE COMMITTEE 4
2. REGISTRATION OF HQ & CHAPTERS 5–7
3. OPERATING OF BANK ACCOUNTS 8–9
4. BUDGETING AND ACCOUNTING NORMS 10 – 13
5. MEMBERSHIP & MEMBERSHIP FEES 14 – 16
6. PROGRAMS 17 – 19
7. ACREX 20 - 22
8. REFCOLD 23 - 24
9. TRAVEL 25 – 30
10. PUBLICATIONS 31 – 32
11. POLICY ON PURCHASING 33

MAJOR CHANGES BETWEEN R0 & R1 ARE MADE IN FOLLOWING PAGES:

S. NO. PARTICULARS PAGE NOS.

1. MEMBERS OF FINANCE COMMITTEE 4

2. REGISTRATION OF HQ & CHAPTERS

w.r.t. GST registration requirements 5

3. MEMBERSHIP & MEMBERSHIP FEES 14-16

4. PROGRAM
- Chapter contribution 18

5. ACREX 20 – 22

6 REFCOLD 23

7. POLICY ON PURCHASING 33

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 ISHRAE FINANCE COMMITTEE

1. Members of the Finance committee constituted in April 2021:-

1. Mr Rajnish Joshi : Chair

2. Mr Ashok P Patel : Vice Chair

3. Mr Anant Singh : Member

4. Mr Prashant Pavecha : Member

5. Mr Sivasankaran Nedungat : Member

6. Mr K Thamillarasu : Member

7. Mr. Pratik Khandelwal : Member

8. Mr Ranjit Mukherjee : Member

9. Mr Amitabha Sur : National President

10. Mr NS Chandrasekar : National President Elect

11. Mr Utpal Biswas : National Treasurer

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2. REGISTRATION OF HQ AND CHAPTERS

(A) Registration

(i) HQ of the Society and each of its Chapters are conceived as independent legal entities
and are to be registered with the local authority having jurisdiction over them. The
registration will be with the Registrar of Societies in the state where HQ / Chapter
office is located. Registration with any other authority shall be with the expressed
approval of BOG.
(ii) The chapters which do not have independent registration and operating under ISHRAE
HQ do not need separate society registration or PAN Number. GST number will be
required if new chapters are incorporated in the states where ISHRAE, HQ is not
registered, under GST.
(iii) Chapters those are registered under section 11 of IT Act and taking benefit of section
12AA shall not avail benefit of this section anymore because our society is not involved
in any charitable activity mentioned under section 12AA of IT Act. In case they
continue to avail benefit under section 12AA in spite of clear communication, HQ and
other ISHRAE chapters shall not be associated & liable for any penal action.
(iv) As per Section 1 of the Societies Registration Act 1860, society should have a
Memorandum of Association (MOA) to which all members should subscribe. As per
the Act minimum seven members are required to subscribe to the MOA. However,
since ISHRAE has huge number of members, it is not necessary that all the members
should subscribe to the MOA. Generally, the only founder members subscribe in the
MOA and rest are admitted as member on payment of membership fee.
(v) The Memorandum of Association is the Charter of the Society. It defines various rules
and regulations for the functioning of the Society, the activities that can be undertaken
by the society, Membership, Governance, Audit & Accounts etc. All registered
Chapters must have the MOA and should keep it updated. It is recommended that
chapters will upload their updated MOA on ISHRAE drive for easy access.
(vi) All Sub Chapters will operate under the registration number of the Parent Chapter in
all matters relating to legal, taxation and statutory compliances. It shall be noted that if
the registered parent chapter is under the ambit of Goods and Services Tax (GST), they
shall be registered under GST Law of respective states. All Sub-Chapters operating
under them would also be subject to GST. Further it is to be noted that the Sub-Chapters
situated in the States other than that of parent chapter, they will require separate
registration under GST Law. However, they will use Parent Chapter’s PAN for
acquiring GST registration.
(vii) GST applicability has been increased from threshold limit of INR 20 lakh to INR 40
lakh. So, the new independent Chapters do not need to acquire GST registration until
their turnover exceeds INR 40 lakhs.

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 (viii) All registered entities will compulsorily have individual Permanent Account
Number (PAN), Tax Deduction Number (TAN) as well as bank accounts. PAN is
a distinctive number allotted by the I T Department. PAN is required for filing IT
returns, opening of Bank Account, Making investments with Financial Institutions,
Purchase of immovable property etc. All registered Chapters must have PAN
numbers. Sub-Chapters will have to use PAN number of parent chapter.
(ix) Other than HQ and chapters, no new entity under ISHRAE will have independent
registration with the authorities. Registrations of IIE, IERF, IFT, is under Trust and
may continue for the time being. However, no other transactions/operations in
ISHRAE are permitted under Trust registration now. If any chapter has a Trust, the
process for dissolving the existing Trust should be started in consultation with the
Chartered Accountants, and same be informed to HQ
(x) If any entity other than mentioned above, is currently holding an independent
registration, it must transfer entire fund or assets to any of the above-mentioned trust
with similar objects if the entity is irrevocable trust. If entity is revocable trust than it
shall be immediately dissolved as per trust deed.
(xi) In case any new chapter (upgrade from a Sub-Chapters) requires a registration, it will
have to be expressly approved by a prior resolution in BOG meeting.
(xii) The Profit & Loss account and Balance Sheet of the Sub-Chapters will be merged with
those of the parent chapter but will be shown separately. This inter-alia means that the
statutory auditor who audits the chapter account will also audit its Sub-Chapters
accounts.

(B) For upgrade of a Sub-Chapters to a chapter:

(i) The endeavor of the newly formed Sub-Chapters shall be to grow the Membership and
ensure that the existing Membership is serviced adequately. However, the performance
of the Sub-Chapters shall be monitored over a minimum time frame of two years,
depending upon the performance and the ability of the Sub-Chapters to meet its
Management by Objective (MBO) Targets and the Society’s Financial Guidelines.

(ii) The Sponsoring Chapter may consider the upgradation of the Sub-Chapters to a full-
fledged Chapter. The following minimum criteria must be met for upgradation: -

a) The Sub-Chapters must have a minimum of Fifty Dues paid Members on its
Roster. 


b) The Sub-Chapters must have been in operation for a minimum period of two full
completed Society Years. Incase sub-chapter is formed in middle of society year,
they would be required to complete a minimum term of founding society year and
additional two full society year before being upgraded to full chapter. 


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c) The Sub-Chapters should have an annual revenue of Rs 10 Lacs from all activities.



d) The Sub-Chapters must have an accumulated Bank Balance by way of Fixed

Deposits of minimum of Rs 5 Lacs at the time of filing the petition for an up-
gradation. 


e) A clear established chain of demonstrated Leadership at the Sub- Chapter that will
steer the Chapter over the next five years at a minimum. 


f) The upgrade shall have the sanction of the concerned Regional Director, who will
have to be satisfied about the capability of the Sub-Chapters to manage its affairs
and finance independently.

g) When a new Sub-Chapters is chartered, HQ will contribute Rs. 25,000/-(or an

amount decided by BOG from time to time) and the parent chapter also will
contribute the equivalent amount as seed money. But this contribution will be
made only when the bank account of the Sub-Chapters has been opened as per the
methodology detailed in point no. 3 (i) (a) below.

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3. OPERATING BANK ACCOUNTS

(i) HQ as well as Chapters / Sub-Chapters and other bodies approved by the BOG will operate
bank accounts with one or more scheduled banks (As approved by BOG for HQ and as
approved by CWC for chapters / Sub-Chapters). It is recommended that chapters/sub-
chapters do not open accounts in co-operative bank and preferably maintain account in
same bank as that of HQ for ease of transaction & safe custody of funds.

(a) Sub-Chapters operating under respective Chapters will have account with the same
bank. The parent chapter will assist the Sub-Chapters to open a sub-account with
the same bank at the location of the Sub-Chapters. The Sub-Chapters bank account
will be sub-account of the parent chapter (same PAN) though its operation will be
independent. Under special circumstances the sub-account of the Sub-Chapters may
be opened in a different bank / different branch but at all times this account will
under the registration / PAN of the Parent chapter.

(b) Payments / transfers from HQ will be made only to Sub-Chapters having valid bank
accounts. All existing non-linked accounts of Sub-Chapters shall be closed
immediately and shall be linked to the Parent Chapter account.

(ii) It is desirable that the main operating accounts of HQ/Chapters / Sub-Chapters are
maintained with the same bank for ease of operations.
(iii) However, HQ as well as Chapters / Sub-Chapters are free to maintain Fixed Deposits
(surplus amount can only be invested in FDRs) with any other scheduled bank who offer
better rate of returns but only nationalized banks and /or RBI approved private scheduled
banks, and in no other forms such as shares, equities, bonds etc. This shall be done with
due approval from the BOG/CWC concerned.
(iv) All bank accounts of the society will be operated under joint signature of any two of the
following office bearers. Treasurer must be one of the signatories.
(i) President
(ii) Immediate Past President
(iii) President elect
(iv) Secretary
(v) Treasurer

Other than above, additional person(s) can also be authorised by BOG/CWC approval.

(vi) As and when there is a change of office bearers (at the end of each society year), the
signatories shall be changed within 30 days with a written intimation to the bank. For this
a suitable resolution has to be passed in the first BOG / CWC meeting of the Society year
and intimation in writing with new signatures shall be given to the bank, to implement
change in all operational accounts, including FDR’s if any.

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(vii) It is recommended that the Treasurer shall be one of the signatories for each cheque
issued. In case this is not practically possible, the treasurer’s initials shall be post facto
recorded on the counter foil of the cheque.
(viii) HQ/Each chapter and Sub-Chapters should reconcile their respective bank accounts at
the end of each month and confirm compliance to HQ – Treasurer by Email before 15th
of next month.
(ix) For Student Chapters no separate bank accounts can be operated. The Chapter / Sub-
Chapters concerned will however show the consolidated income and expenses of all the
student chapters under it, in a separate head in its P & L account.

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4. BUDGETING & ACCOUNTING NORMS.

HQ as well as all Chapters and Sub-Chapters should prepare their respective annual budgets
at the beginning of the society year. The format to be followed is as circulated by HQ subject
to changes made year by year.
4.1. Chapter and Sub-Chapters budgets are to be presented and approved at the first RCC of
the year.
4.2. HQ budget is to be presented and approved by the Finance Committee and then passed
at the first BOG. The budget will be prepared by the Treasurer under the guidance of the
President after taking inputs from all National Chairs. This will ensure that none of the
proposed activities are deprived of funds.
4.3. The Treasurer at HQ / Chapter and Sub-Chapters will be responsible for exercising strict
budgetary control. At each RCC / BOG the Treasurer will present a variance report
between budget and actuals.
4.4. Immediately after end of the year the Treasurer concerned should finalize Un-Audited
accounts for the year and present it at the first RCC / BOG.
4.5. An audited account for the Chapter / Sub-Chapters as well as HQ will be required to be
finalized by the end of July and that in the case of Chapters / Sub-Chapters, they have
to be approved by the CWC and then passed at their AGM and in case of HQ, it has to
be passed by BOG meeting and then by the AGM.
4.6. All Chapters must hold an AGM latest by 30th September every year (recommended by
15th August). Audited accounts of the Chapter (which will include accounts of all Sub-
Chapters under it) must be presented by the chapter treasurer and passed in the AGM.
Minimum 21 days’ notice (or as notified by the Government from time to time) shall be
given to the members for the AGM along with agenda and a copy of Audited Accounts.
The Auditor and the Nomination Committee will be appointed in AGM for the next
Society year. The Sub-Chapters too are also advised to hold the AGM before 30thSept
each year for submitting the Annual Report to their members and for appointing the
Nomination Committee for selecting the office bearers of the following Society year.
The Chapters under HQ shall present the accounts to the members as per attached
format.
4.7. All Chapters and Sub-Chapters shall forward their budgets/ periodical (Quarterly)
variance reports. Un-Audited Results as well as Audited Results to respective IFC zonal
chair with a copy to NT & RD as soon as they are ready or whenever requested for. The
audited report has to be made available at least 4 weeks prior to statutory closure date.
4.8. Respective IFC zonal chair shall present these reports as well as similar statements to
the Finance Committee at its meeting.
4.9. All Chapters / Sub-Chapters Treasurer’s should appoint an Internal auditor preferably
HQ’s CA for the society year.

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4.10. All chapters shall appoint a qualified Chartered Accountant (CA) to audit their account,
finalize and certify their balance sheet and also to file various returns on timely basis.
Sub-Chapters under the Parent Chapter shall be audited by the same CA as the Parent
Chapter. Appointment of CA shall be first approved by the CWC and then ratified by
the AGM. Details of this CA shall be provided to HQ.
4.11. Chapters must file TDS and GST returns on monthly basis (Or on or before any date as
notified by the Govt.) and IT returns every year. Sub-Chapters whose accounts are
merged with Chapters are not required to file separate IT returns. Sub Chapters which
are in a different State should have their GST returns filed by Parent Chapter. Chapters
should file a copy of their IT returns and CWC member list with the Registrar of societies
every year.
4.12. TDS is applicable both for Chapters and Sub-Chapters are as under :

Sect
Rate of
ion Description Cut off Examples
TDS (*)
no.
Rent of
Land and Office rent /godown rent/guest
10%
Building or INR 2,40,000 house rent
194I Furniture P.A. (From 1
Others like April 2019)
Generator rent, machinery hire
Plant and 2%
charges
Machinery
All other services like payment to
1% for Security guard/ courier/
INR 30,000
Individual and maintenance agency/cab
Payment to Single Payment
194C HUF, 2% For service/advertisement/employees
Contractors or INR1,00,000
Other than on contract which do blue collared
annual
individuals) or manual work like peon/driver
etc.
Audit fees/Bills of professionals
Professional
like CA/CWA/CS, or technical
Service/
service providers or consultancies
194J Technical/ INR30,000p.a. 10%
covered. Employees on contract
Royalty/ Non-
which are white collared covered
Compete fees
here
Commission/Br Commission to broker/sales agent
194H INR15,000 p.a. 5%
okerage etc.
Deduction shall be done on
Based on Slab monthly basis for all the
192B Salary under Income Slab Rate employees whose annual salary
Tax exceeds the Basic Exemption Limit
under Income Tax Act
(*) subject to any changes as announced by the Government.
TDS is liable to be deducted on the invoice date or the date of payment whichever is
earlier. Parent Chapter is responsible for compliance by Sub-Chapters in regard to timely
remittance of TDS. Returns are to be filed jointly between Parent Chapter and its Sub-
Chapters.

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4.13. TDS payments for each month has to be made by 7th of following month or as notified
by Govt. For the month of March, the department allows to pay the TDS by the 30th
April. All the Sub-Chapters need to give all details / documents regarding TDS and
transfer the TDS amount to the Chapter within the 3rd of the next month and no later.

TDS returns are to be filed on a quarterly basis:

APR – JUNE by 31st JULY

JULY – SEP by 31st OCT
OCT – DEC by 31st JAN
JAN – MAR by 31st MAY

4.14. Chapters and Sub-Chapters should have an accountant (either full time or part time as
per need) to update financial records on monthly basis, filing required returns in time,
review of Financial Status, identifying variance from budgeted vs. actuals at least once
in a month and timely filing of returns shall be part of each CWC meeting & shall be
recorded in minutes. Details of this accountant shall be provided to HQ and also
uploaded on CIF under staff details. Chapters should purchase licensed accounting
software TALLY for themselves and their Sub-Chapters. All accounting reporting
including balance sheet will be as per format provided by HQ.
4.15. A qualified / suitable Chartered Accountant needs to be appointed by each Chapter for
conducting the Audit of the accounts and filing the income tax returns. The sub-chapter’s
accounts will be the merged with chapter’s accounts and need to be approved in the
AGM.
4.16. The accountant, internal auditor and independent auditor at all Chapters should send
their periodical reports (not less than one per quarter) to HQ.
4.17. The Internal Auditor is expected to check the transactions as well as bank reconciliations
and budgetary variances at random and give a formal compliance report to the CWC
every quarter.
4.18. In addition to this the HQ Treasurer/ the Finance Committee may take up the internal
audit of one or more Chapters / Sub-Chapters each year at random and a compliance
report will be furnished at the last BOG for the year.
4.19. It is also advised that each chapter identifies and declares a principal officer for taxation
/ statutory purposes. This principal officer can be the full time accountant and the all
necessary procedures / documentations shall be followed for that.
4.20. All Chapters / Sub-Chapters shall give free access to their accounts / bank transactions
and all other financial dealings to HQ Treasurer or any other officer nominated by him
/ her and is required to reply to any query raised by HQ Treasurer. This responsibility
will be primarily that of Chapter / Sub-Chapter’s Treasurer.
4.21. Financial year of the Society is from 1st April to 31stMarch.
4.22. Books of Account shall be maintained on Accrual basis.

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A general guideline for expense ratio recommended by Finance Committee is as under.

Salary expenses - 20%

Admin expenses - 20%
Travel - 20%
Technical - 20%
Contingency - 20%

4.23. All ISHRAE entities should obtain balance confirmations with other ISHRAE entities
before a Debit / Credit balance can be shown in their balance sheets at the end of the
year.

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5. MEMBERSHIP AND MEMBERSHIP FEES

(a) Various grades of members and the fee applicable thereon are detailed in COM.
(b) All membership fee payments are remitted directly to HQ either Cheque / Pay Order /
Demand Draft or through Credit / Debit cards and bank transfers in case of online
registrations / renewals. Chapters cannot collect membership fees / renewal / sustenance
fees in their own name. All payments need to be in name of “ISHRAE
HEADQUARTERS “only.
(c) Membership fees of Student members will be collected each year. All membership fee
payments are made directly online by the prospective member to HQ through credit
cards / debit cards / net banking or any such facility offered by ISHRAE online through
the software. Chapter / Sub-Chapters cannot collect the Student membership fees
directly at all (neither in HQ name nor in their own name). All fees will have to be paid
online individually.
(d) A Student who had been member of the society in his final year / final semester can opt
to take full membership of ISHRAE within 6 months of membership expiry at 50 %
discount after passing out their graduation exam. Hence, he / she will have to pay
Rs. 5000/- plus GST only (or as applicable from time to time). This amount will be
shared in the ratio of 50:50 between the HQ and the chapter. The student will have to
furnish due proof of his passing out of college like Degree / mark sheet etc. Thus, a
student who was member in SY 2020-21 and was in his/her final semester can apply for
full membership in SY 2021-22 within 6 months of his/her membership expiry.
(e) After expiry of the membership / sustenance period, the membership privileges will
continue for 30 days allowing the member time to renew. On expiry of 30 days, all
membership privileges will cease. This is applicable to life membership too.
(f) Membership will be forfeited after 6 months of expiry and the member will be termed
as dormant Any member wishing to renew his / her membership can do the same at any
time (irrespective of the date of membership expiry) and the membership will be valid
for a period of 3 years from date of payment. For this the member has to pay only the
renewal fees and no fresh registration charges. The member will be given an option to
renew from the last date of expiry (by paying all past dues) to maintain continuity or
from the current date. In case he / she is renewing within period of 180 days from date
of expiry then by default the renewal will happen from the date of last expiry.
(g) In case of Life members, there will be no forfeiture of membership for non-payment of
sustenance fee but the free services like Journal, invites to commercial programs etc.
will stop. A life member can start paying sustenance fees at any point of time
(irrespective of the end of the previous period of fees payment). The fees will always be
taken for a block of 3 years (as per applicable policy) and once the member’s pay
sustenance fees, the free services shall re-start.

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(h) Registration charges / membership / renewal / sustenance will be shared between HQ
and chapters as shown below. This may be modified by BOG from time to time.
Student members have multi year membership option now.

Membership Fees Structure

Registration Membership Total Membership HQ Chapter

Term
Charges Fees Fees without GST Share Share
3 Years 2,500 5,000 7,500 3750 3750
10 Years 2,500 12,500 15,000 7500 7500

*GST extra as applicable

Membership Renewal/Sustenance Fees Structure

Term Membership Fees HQ Share Chapter Share

3 Years 5,000 2500 2500

10 Years 12,500 6250 6250

* GST extra as applicable

International Membership Fees Structure

Total
Registration Membership HQ
Term Membership
Charges Fees Share
Fees
3 Years $ 35 $ 65 $ 100 $ 100
10 Years $ 35 $ 165 $ 200 $ 200

International Membership Renewal/Sustenance Fees Structure

Term Membership Fees HQ Share

3 Years $ 65 $ 65
10 Years $ 165 $ 165

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Student Membership Fees Structure

Total paid Chapter &

Total paid by
by Student Student
Student for Per Year Fees
Years for Chapter HQ Share
membership without GST
membership Share per
without GST
with GST year
3 1950 1653 551 60% 40%
2 1500 1271 636 60% 40%
1 850 720 720 60% 40%

*GST @18% shall be in addition to applicable fees.

(i) HQ will transfer Chapter / Sub-Chapters share of membership once every quarterly along
with a ledger statement.
(j) The membership fee is subject to revision and will be taken up in the agenda point of the
BOG.
(k) In case of transfer of membership from one Chapter or Sub-Chapters to another (as per
provisions of COM) the Chapter / Sub-Chapters which effects the transfer will transfer its
share of the membership fee for the balance membership term to the Chapter / Sub-
Chapters to which transfer is affected.
(l) Chapter transferring the membership should advise HQ – membership cell to make
appropriate changes in membership records. Relevant Tax invoice will have to be raised
by the chapter (where the member has been transferred) on the original chapter.

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6. PROGRAMS

a) Following are the programs conducted by Chapters / Sub-Chapters.

Half Day Technical Talk / Workshop / Conference.

National Programs (Conference with gross revenue more than 25 lakh).
Full Day Technical Talk / Workshop / Conference
Product Presentations.
Training Programs under ICP / IIE.
International Programs. (Conference with gross revenue more than one crore)
Social / Family Programs
K to 12 Activities
Student Activities
Technical Talks / Industry visit / Student day.
ISHRAE DL Programs

b) Chapters / Sub-Chapters are free to plan and conduct programs either alone or in
association with other Chapters / Sub-Chapters / ASHRAE Chapters as per the
guidelines given in COM and / or as per directions of National / Zonal programs chairs.

c) Chapters / Sub-Chapters are also welcome to conduct programs along with sister
associations such as FSAI / IPA / IGBC etc. but in such case prior concurrence of
National / Zonal advocacy chair must be taken. In case any society or organization is
being considered, the same shall be officially informed through RD to NC-Advocacy
and approval should be taken in advance.

Sharing of revenues / costs between participating chapters / Sub-Chapters and other

participating associations can be mutually decided between the concerned entities
before executing the event to ensure no dispute post execution. In case event is jointly
organized by chapter & sub-chapter, the distribution pattern shall be clearly
documented with mutual agreement.

A basic objective is that all programs will be self-sustaining either through participant
fee / partnerships or donations. However, the Chapter / Sub-Chapters can subsidize a
particular program it considers worthwhile. This must be done with the approval of
concerned Regional Director and National Chair programs. Under no circumstances
should any National Program be done without any charges.

For all Chapter programs with revenue exceeding Rs. 1,00,000 will be shown separately
in budget and passed by the CWC in its next meeting.

d) For product presentations all expenses on venue / food / arrangements etc. are to be met
by the partners in addition to which the Chapter / Sub-Chapters will levy a royalty as
specified in the COM and as decided by BOG from time to time. Chapter with strength

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 of more than 250 members will charge Rs. 25,000 and chapters less than 250 members
will charge Rs 15,000. Sub-Chapters may mutually decide the fee with the company
doing a product presentation, however, it should not exceed Rs. 10,000.

Chapters / Sub-Chapters should remit to HQ the following amounts on lump sum basis
to HQ as chapter contribution. This will be increased by 10% every 2 years. The
contribution for the chapter is as under:

Category III Chapters and Sub-Chapters - Rs. 60,500/Annum

Category II Chapters - Rs. 121,000/Annum

Category I Chapters - Rs. 181,500/Annum

The next increase of 10% on above will be from SY 2022-23.

This contribution is to be paid in two installments - 50% before September and balance
50% before February.

e) In addition, in respect of international events (Refer COM) conducted by any chapter

contribution to HQ will be Rs. 3,63,000 or as decided by BOG from time to time and
is to be paid within a month of the conclusion of the event.

f) HQ will raise relevant GST invoice on the chapters to claim the above amounts. In
respect of DL programs at Chapters / Sub-Chapters which are sanctioned by HQ,
Honorarium, if any, Airfare and Hotel stay of the DL will be borne by HQ but local
transport / hospitality at the destination is the responsibility of the Chapter / Sub-
Chapters.

g) For conducting a 3 days NBOG, HQ will support the host chapter to the extent of Rs. 5
lacs, for conducting first RCC (being a two-day event), HQ will support the host chapter
to the extent of Rs. 2 Lakh, for other RCC up to Rs.1 Lac for the one-day RCC. This is
subject to revision by BOG from time to time. There will be no such contributions to
Chapter etc. when such RCC / NBOG are held virtual.

h) The reimbursement shall be given on actual basis based on submission of

reimbursement invoice (with GST as applicable) having the upper cap as above and for
meeting the expenses under the below mentioned expense heads:

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 (i) Expenses incurred for 2 Lunches and tea/coffee expenses during the NBOG / First
RCC and One lunch with tea / coffee for the other RCCs.

(ii) Expenses incurred for 1 dinner with cocktails for the networking evening and
expenses towards some light entertainments during networking session for the First
BOG and First RCC.

(iii) Expenses incurred towards meeting expenses including hall rentals if any, internet
charges during NBOG / RCC session, AV rentals etc.

(iv) Airport transfers to and from the hotel.

(v) The invited guests in all meetings shall be as recommended in the COM and
approved by the National Secretary.

No other expenses shall be covered and reimbursed by HQ apart from the above.

i) As regards to ICP courses and organising of the same the chapter is advised to refer to
the ICP manual for complete details. Each ICP Course fees will have a component of
Delegate registration / kit fees and Exam fees which needs to be transferred to HQ
against Tax Invoice.

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7. ACREX

a. ACREX is the National Exhibition of ISHRAE and is rotated among Delhi / Bangalore /
Mumbai chapters. It is a yearly exhibition generally held in February / March.

b. It has been proposed in the 1st BOG of 2020 to license out the ACREX and REFCOLD.
In view of the above, an expert committee has been selected under the name of Exhibition
Coordination Committee (ECC). The purpose of this committee will be to select, analyze
the bids, negotiate and recommend the licensee for the proposed ACREX / REFCOLD.

c. The committee will negotiate with the licensee(s) and recommend to the BOG the
shortlisted licensee.

d. The expert committee also now named as ECC (Exhibition Coordination Committee) has
the following personnel nominated:

a) Sushil Choudhary
b) C Subramaniam
c) Akbar Bharmal
d) Vishal Kapur
e) Nivedita Jadhav
f) Mihir Sanghvi
g) Amit Goel
h) Vikram Murthy

In addition to above nominated personnel, the following will be the ex-officio members
of the above ECC;

ISHRAE President
ISHRAE Immediate Past President
ISHRAE President Elect and
National Treasurer

The tenure of the aforementioned nominated committee will be decided by the NBOG.

e. As it would be the responsibility of the licensee to give a guaranteed, minimum income

to ISHRAE. Such minimum amount is to be decided by the ECC.

f. ECC while negotiating with the Licensee will keep in mind the expenses for Chapter /
Sub-Chapters President and President Elect to visit the exhibition (Travel + 2 nights
stay), combined with 3rd National BOG (as applicable from time to time ).

ECC will coordinate in taking inputs on the progress of the Acrex / Refcold on periodic
basis or as may be deem fit, from the nominated licensee.

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g. Each ACREX shall have a budget which is to be in place by the end of April of the
relevant Society year. Example: for ACREX-2021, the approved budget is to be placed
by April 2020. The budget is to be adopted by the ECC and then presented and
approved by BOG in the first meeting. Budget in the case refers to the payment
expected from licensee.

h. The budgeted to actual variance statement shall be presented at NBOG meetings by

ECC committee through a format in form of MIS. Immediately after end of ACREX
(and before 31st March of the year)

*Licensee should release the agreed amount to ISHRAE HQ.

i. ISHRAE HQ shall submit the final audit and closure report. Subsequently the earnings
from Acrex and HQ books will be merged. Reimbursements / shares to any chapter /
Sub-Chapters will be done only through HQ and not directly by Licensee. HQ, based
on the decision of BOG will disburse the Acrex share to various Chapters / Sub-
Chapters.

Net surplus from ACREX will be distributed as under.

All Chapters & Sub-Chapters - 40%

*ASHRAE chapters in India - 5%
IIE - 5%
Apex Advocacy - 5%
Technical fund - 5%
IRC - 5%
HQ - 35%

*The ACREX surplus share paid to various chapters of ASHRAE in India shall be
lower of Rs. 1.50 lacs per chapter or 5% of Acrex accrual. The balance amount is to be
used equally under the budget of ITC & IRC. This policy is applicable from 2020
onwards

From the ACREX surplus distributed to Chapters / Sub-Chapters the following amounts
will be first deducted:

 Journal courier cost on actuals.

 DL to Sub-Chapters: Travel & Stay for one DL per year per Sub-Chapters.

 Reimbursement of the N-BOG and RCC hosting fees as listed above. Rs 5 lacs for
the BOGs, Rs 2 lakh for first RCC and Rs. 1 Lac for other RCC.

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  Travelling expenses of Chapter / Sub-Chapters delegate(s) for the N-BOGs (except
the BOG concerned with ACREX, as the same is directly booked under ACREX
expense)

 HQ shall reimburse to chapters/Sub-Chapters maximum up to sum of Rs. 1 Lac per

year for a full-time employee and Rs. 50 thousand per year for a part time employee
as additional Fixed Share of ACREX reimbursement in addition to the existing
Fixed Share.

 In case any statutory / tax penalty / fine / demand is levied on HQ for any historical
transactions /accounting of ACREX (previous years) then the same payment will
be made by HQ (after due diligence) to the Govt. and this said amount shall be
adjusted from the ACREX surplus of the year in which this payment is demanded
/ paid.

 Each Chapter is then to be provided a fixed contribution of Rs 1,00,000 and Rs

50,000 to a Sub-Chapters. The balance amount will be distributed on basis Café
points

j. Distribution of ACREX surplus of 40% to Chapters and Sub-Chapters will be on the

basis of CAFÉ points earned by them during the previous Society year example: for
Acrex 2020 surplus distribution the Café Points of 2018-19 will be considered. The sum
total of CAFE points of all Chapters / Sub-Chapters will be added and depending upon
the final surplus (minus deductions as above) a value will be allocated to per café point.
Basis this value per café point each location will be paid the share. For example, if the
total café points are 3,00,000 and the net surplus is Rs 1,20,00,000 then the value per
Café Point is Rs 40.

k. HQ may declare the First Installment (50 % of estimated income) in December end and
chapter will submit their tax invoices against which payment will be released. The final
instalment (balance due from Licensee) will be declared towards the third week of March
and the chapters need to raise the tax invoice within 31st March for payments to be
released. Since the final accounts are audited and closed by July, there might be minor
changes in the final surplus income on account of Acrex accrual and this difference will
be adjusted (paid / recovered) in the next financial year.

The above is suggested revenue disbursement, finer details will be shared by the ECC
once when such licensee has been appointed.

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8. REFCOLD

REFCOLD is the National Exhibition of ISHRAE. It is a yearly exhibition generally

held in November.

This event will also be licensed, additional members may be added or deleted from
the Expert Coordination Committee (ECC).

The REFCOLD accrual shall be transferred to HQ bank account by 31st of December

by the licensee

Immediately after end of REFCOLD (and before 31st March of the year), the licensee
will make the final payment to Ishrae HQ

Subsequently the REFCOLD & ACREX accrual books will be merged with HQ
accounts. Reimbursements / shares to any chapter / Sub-Chapters will be done only
through HQ

Balance Net Surplus as per the Matrix below:

(Balance Net Surplus is defined as: Total Net surplus minus fixed Host Chapter share)

Net surplus from REFCOLD will be distributed as under.

All other Chapters / Sub-Chapters - 40%

HQ - 40%
IIE - 5%
Apex Advocacy 5%
Technical fund 5%
IRC - 5%

Distribution of REFCOLD surplus of 40% to Chapters and Sub-Chapters will be on the

basis of CAFÉ points earned by them during the previous Society year example: for
REFCOLD 2019 surplus distribution the Café Points of 2018-19 will be considered.
The sum total of café points of all Chapters / Sub-Chapters (Except Host chapter) will
be added and depending upon the final surplus (minus deductions as above) a value will
be allocated to per café point. Basis this value per café point each location will be paid

the share. For example, if the total café points are 3,00,000 and the net surplus is
Rs.1,20,00,000 then the value per Café Point is Rs 40. Host Chapter CAFÉ points are
not considered.

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HQ will declare the surplus of Refcold in January and chapter(s) will submit their tax invoices
against which payment will be released. This can undergo revision once the Licensing option
is exercised. Any changes will be informed by the BOG once clarity is there post first
licensing arrangement.

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9. TRAVEL POLICY

TRAVEL POLICY FOR ISHRAE OFFICERS AT HQ / CHAPTERS / SUB-

CHAPTERS / ACREX.

Guiding principle of ISHRAE’s travel policy is that the funds of the society are to be spent on
its stated Aims and objectives and the travel costs which are incidental to achieving the
objectives shall be kept at a minimum.

THIS TRAVEL POLICY SUPERCEDES ALL PREVIOUS DOCUMENTS AND THIS HAS
TO BE STRICTLY IMPLEMENTED AT ALL LEVELS – HQ, ACREX, CHAPTERS, SUB-
CHAPTERS WITHOUT ANY EXCEPTION INCLUDING FOR NATIONAL
PROGRAMMES OR CHAPTER BASED PROGRAMMES.

TRAVEL:

Book early to reduce costs

The Society expects early booking for rail and air travel and for accommodation so as to take
advantage of any significant discounts. Tickets shall be booked at least 10 days before the
travel date thru the ISHRAE Travel desk for NBOG. Last minute travel plans shall be declined
unless approved by the National Treasurer / President.

TRAVEL BY AIR:

The Air tickets can be booked by :

HQ : Office secretariat at ISHRAE HQ through travel desk

ACREX : Acrex office secretariat / coordinator

CHAPTERS : Chapter office secretariat or travel agency.

Or the tickets may be booked directly and will be reimbursed by ISHRAE after the travel.

Air Travel for all Officers shall be limited to Economy Class Airfare. The most economical
flight connection shall be preferred for travel.

The officer is advised to confirm his / her travel plans within the stipulated time period as
indicated in the meeting announcement. For key meetings / events a comprehensive matrix
exhibiting availability of economical slots for the selected venue from different locations
(categorizing all major sectors) for specific meetings, shall be circulated to all concerned for
confirmation and subsequent booking of Tickets within a timeframe of one week. If any
member does not indicate his travel plan within this period he / she will have to book own

25
ticket and the reimbursement shall be limited to the upper cap amount mentioned in the matrix
or as announced.

No ticket cancellation charges, pre-postponement or post-postponement charges will be paid

or reimbursed by ISHRAE unless a scheduled meeting has been cancelled or postponed by
ISHRAE.

‘No show’ charges are not reimbursable by the Society and the traveler will be held responsible
for these costs.

In case of self-booking the reimbursement shall be done after the travel is over against the
submitted travel expense statement (ISHRAE Travel Expense Statement format attached as
Annexure – A-1), along with ticket copy & boarding pass. No advance will be issued.
Anyone wishing to book a special seat shall have to do so at his / her own cost.

TRAVEL BY RAIL :

The Travel Reimbursement for all officers shall be limited to AC 2 Tier or AC Executive
Class.

No ticket cancellation charges, pre-postponement or post-postponement charges will be paid

or reimbursed by ISHRAE unless a scheduled meeting has been cancelled or postponed by
ISHRAE.

‘No show’ charges are not reimbursable by the Society and the traveler will be held responsible
for these costs.

TRAVEL BY ROAD :

If it is essential to use a Taxi for inter-city travel the Society will reimburse on actual
supporting bills with an upper cap of Rs 16 per km. It is advisable to share the Taxi : For single
/ double sharing travel Indigo / Swift Dezire or equivalent is preferred and for 3/5 persons
Innova or equivalent is allowed. The reimbursement voucher will clearly mention the name of
the co-travelers and any one traveler can claim the expense.

If the officer is planning take his personal vehicle for INTER-CITY travel, then the
reimbursement shall be on actual KMs @ Rs. 16/- per km. Names of co-travelers, if any, shall
be mentioned in the expense statement.

Toll Fees as applicable shall be reimbursed if the original fees receipt is attached along with
the expenses statement.

No other related expenses will be paid, for instance the Society will not be responsible for
penalties such as parking fines, Speeding, Red light Jumps etc.

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Note: Information has to be given to the concerned office in advance if the officer is planning
to travel by road.

LOCAL TRAVEL

The Society does not reimburse local taxi bills / Local travel cost like airport transfers / Intra-
city travel etc. Travel from residence to airport and back, residence to local meeting venue
and back, Airport to meeting venue and back shall not be reimbursed.

In select cases the Host Chapter / HQ / Hotel might organize airport transfers in other cities
for specific events.

STAY

For meetings of one-day duration no hotel accommodation will be provided unless there is a
flight connectivity issue.

For meetings lasting two days the intervening night’s accommodation will be provided. In
very special cases where the travel connections are not possible the officer might be allowed
to stay for 2 nights.

For meetings or events lasting more than 2 days the provision of accommodation will be
decided by HQ core committee or ACREX committee.

In all the above cases accommodation will be in a standard budget hotel and will be negotiated
and booked by HQ – Secretariat, Acrex coordinator or by the Chapter / Sub-Chapters.

The Society advises Twin sharing of rooms to save on cost.

The upper cap on Room tariff has been revised to Rs. 6,000 per day per room including all
taxes. Any amount more than that will have to be borne by the Officer directly. When sharing
the rooms, the reimbursement voucher should clearly mention the name of the room- mate.
The original Bill has to be attached with the reimbursement voucher. This rule is applicable
for all travel including chapter based / Acrex / any other.

Food & other incidental expenses during travel will not be entertained.

TRAVEL AUTHORISATION

Convener / coordinator / chair of committees shall clearly make the list of the members /
invitees required to attend any meeting.

Only the members / officers on the list can travel on official cost and seek reimbursement. No
other member can travel and seek reimbursement.

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The following officers shall decide the list of participants / invitees:

For BOG / AGM : NATIONAL PRESIDENT / PRESIDENT-ELECT / NATIONAL

SECRETARY / NATIONAL TREASURER

For RCC: REGIONAL DIRECTOR / NATIONAL PRESIDENT / PRESIDENT-ELECT /

NATIONAL SECRETARY / NATIONAL TREASURER / NATIONAL CHAIRS

For COMMITTEE MEETINGS / WORKSHOPS: COMMITTEE CHAIR / N.C. /

NATIONAL PRESIDENT

For COMMITTEE MEETING - SPECIAL INVITEES: NATIONAL PRESIDENT /

PRESIDENT ELECT

For CHAPTER BASED MEETINGS: CHAPTER PRESIDENT / REGIONAL DIRECTOR

For ACREX BASED TRAVEL / MEETINGS: CHAIRMAN & CONVENER

APART FROM SPECIFIC EVENTS AS ABOVE ALL OTHER TRAVEL NEEDS TO BE

PRE-APPROVED AS PER FOLLOWING MATRIX.

IN ALL CASES THE NATIONAL TREASURER HAS TO BE ONE OF THE APPROVING

MEMBERS APART FROM ANYONE OF THE BELOW.

1. ISHRAE President - Self

2. President Elect ISHRAE President, National

3. Immediate Past President Treasurer (Self authorization
4. National Treasurer not possible)
6. National Secretary
7. Regional Directors ISHRAE President, President-
8. HQ Committee chairs / Vice chairs elect, National Treasurer
9. Chapter Presidents / President Elect RD concerned or resolution
10. Sub-Chapters President / President passed in Chapter / Sub-
Elect Chapters CWC.
11. Committee members, Any other - Concerned committee head,
officer, member including ZC ISHRAE President, National
Treasurer,

TRAVEL PAID OR REIMBURSED BY CHAPTER / SUB-CHAPTERS :

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In all cases the Chapter Treasurer has to be one of the approving members apart from anyone
of the below.

Chapter / Sub-Chapters President - Self

Chapter / Sub-Chapters President Chapter President, Treasurer

Elect / IPP (Self authorization not
Chapter Treasurer possible), Regional Director
Chapter Secretary
Committee members, Any other - Concerned committee head /
officer, member NC / ZC, President, Treasurer,

INTERNATIONAL TRAVEL

For any International Travel the National President is the only approving authority.

For Travel of the National President the approving authority will be the core committee.

For ACREX / HQ related international travel:

Proper Budget of the total expenses has to be submitted and approved by the finance committee
and Chairman or the National president. The final expenses cannot cross this limit. The travel
will first have to be approved by the National President.

Ticketing shall be arranged by the official travel agent of ISHRAE / ACREX Hotel Stay may
be arranged through approved agency and charges paid directly to the agency subject to budget
provisions. Or the concerned officer may seek reimbursement post his travel, if the hotel was
booked directly. Either ways approval of the tariff shall be taken.

Other incidental expenses shall be limited to USD 100 per day. To claim the same expenses
statements with all supporting vouchers, bills shall have to be submitted. No advance will be
issued for the above and it will be reimbursed after the travel against proper supporting
documents / vouchers only subject to the above cap.

VISA fees shall be reimbursed / paid to the agency by the society against original invoice and
supporting visa copy. Lowest cost VISA has to be applied for – while applying choose the
validity which is as per the actual requirement.

Travel insurance for international travel is mandatory and shall be paid / reimbursed by the
Society for the duration of the visit.

OTHERS :

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> Travel & stay for any meeting will be allowed only for the officers supposed to attend the
meeting in his / her official capacity or alternate. In case additional member chooses to travel
the same cannot be reimbursed / paid by the HQ or concerned Chapter / Sub-Chapters. In very
special cases the same needs to be pre-approved by the RD and / or HQ officer.

> Delegate Fees to attend any Seminar / workshop will not be reimbursed / paid by ISHRAE
at HQ or chapter level. In special cases where the officer is required to attend a workshop for
some official ISHRAE linked work then the relevant fees, if applicable, may be paid after due
approval from HQ officer.

> All Travel expense claims shall be submitted to the concerned office within 15 days of the
travel completion. Delayed claims will not be entertained.

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10. PUBLICATIONS

a. ISHRAE Journal.

(i) ISHRAE Journal is the premier technical publication of ISHRAE at the National
Level and Mumbai Chapter of ISHRAE has been authorized to manage the
Journal.
(ii) Currently the Journal is brought out on a bi-monthly basis.
(iii) The journal is distributed to all ISHRAE members in India and is also open for
subscription at a listed price. In addition the Journal Committee at its discretion
provides free copies to eminent persons, libraries and institutions.
(iv) The Journal Committee comprises nominated members besides the Ex officio
members who are the President & President Elect of Mumbai Chapter and
National Publications chair. Editor and Technical Editor will be permanent
invitees to Journal Committee meetings.
(v) The Journal Committee decides the advertisement rates from year to year as well
as credit policies for advertisers. Journal committee also decides on Journal
subscription rates and subscription policies. However, any aspect concerning
other Chapters & HQ would require an approval in BOG
(vi) A separate audited account will be maintained at Mumbai chapter for Journal
expenses. This however is only for control and otherwise for the purpose of
Balance sheet / PL account the Journal account will be merged with the chapter
accounts.
(vii) As the Journal is being circulated locally and internationally by Mumbai
chapter, the chapter has been paying to the HQ an amount of Rs. 3,63,000 per
annum (in 2 installments first by September and second by February). The
quantum of the HQ share is subject to review by Finance Committee and
approval by BOG every year. HQ will raise relevant tax invoice on the Mumbai
chapter for the same according to which payment will released. This amount is
to be increased by 10 % every 3 years. With last increase having taken place in
2018-19, the revised rate for SY2021-22 will be 3,99,300/-.
(viii) Actual courier charges for the journal sent by Mumbai chapter – Journal
committee to other chapters will be reimbursed / paid directly by HQ within max
15 days of receipt of bill.

b. Other Publications

(i) All publications of ISHRAE either at HQ or at Chapters / Sub-Chapters is the

property of HQ and a Chapter / Sub-Chapters entrusted with compilation /
publication does so on behalf of HQ. All expenses incurred by Chapter / Sub-
Chapters in this connection will be reimbursed by HQ.

31
 (ii) The publications chair and the Marketing Chair at HQ decides on print orders,
cover price and permitted discounts for all publications of ISHRAE (Other than
Journal which is dealt separately in section 7.1)
(iii) The publications Chair and the Marketing Chair will determine at the beginning
of the year the number of copies to be printed.
(iv) In normal course, all printed copies will be transferred to chapters / Sub-Chapters
as per agreed distribution schedule and printed copies will not be retained at HQ.
(v) All publications will be transferred at 75% of cover price (member price) to the
Chapter / Sub-Chapters.
(vi) Any advertising revenues from the publications will accrue to HQ.
(vii) In case of any online sales of Publications the concerned chapter / Sub-Chapters
will get 20 % of the sale value (as their commission) on the order placed by any
individual / entity in their geographical region. This will be transferred once
every year against a relevant tax invoice if raised well within financial year.

c. Website / Portals

(i) Any Chapter / Sub-Chapters shall operate a website or Portal only with the
specific concurrence of HQ. This will be the chapter web site and is to be linked
to HQ website.

(ii) Any revenues from operation of web site / portal shall be shared with HQ at the
rate of 20%. This shall be done every half year (Refer Appendix 10 of COM).The
same need to be clearly planned in chapter’s annual budget if applicable.

d. Software Programs

(i) Chapters / Sub-Chapters may develop and bring out any software programs only
with the concurrence of ISHRAE Technical Committee.

(ii) 20% of the revenues from Sale / Subscription of the software shall be remitted
to HQ on half yearly basis (Refer Appendix 10 of COM).

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11. POLICY ON PURCHASING

a. ISHRAE at HQ as well as at Chapters / Sub-Chapters will follow the following policy on

purchases / contracts for procurement of goods and services.

b. The President / President Elect and Treasurer Will form the Purchase committee. (at HQ
as well as at Chapters / Sub-Chapters).

c. Any procurement less than Rs. 10,000/- per case may be on single vendor basis (though
multiple vendors are to be encouraged) and should have the signatures of any two of the
three members.

d. Any procurement between Rs. 10,000 to Rs. 100,000/- per case should have 3 comparable
quotations and in case the order is placed other than on lowest bidder, reasons shall be
clearly stated. The PO will be signed by any of the CWC member or HQ Officers.

e. For purchase / procurement in excess of Rs. 100,000/- per case the above procedure under
11(d) will be followed. In addition, a CWC resolution or concerned HQ Officers approval
(in case of purchase made by HQ) will be required.

f. In respect of ACREX ECC Committee has been formed with license arrangement hence
no purchase should happen for Acrex or Refcold. In the event any purchase is to be made
for these events by Ishrae then ECC will negotiate and sign contract. All such contracts
above Rs.10,00,000/- will require resolution in the core committee.

g. For disposal of any of the assets of HQ or chapters the purchase committee will invite
minimum 3 quotations and highest commercially acceptable quote will be awarded. In
case an asset is sold at less than book value it will require a resolution by the concerned
CWC.

h. All expense bills of the Chapter as well as the Sub-Chapters under it should only be in
the name of the Parent Chapter. (As mentioned in Registration and PAN Number.) This
is important to avail of input tax credit. Sub-Chapters may mention their address in
Purchase documents as “Address for Communication” Otherwise, all purchase orders
issued by the Sub-Chapters and Supplier invoices received by the Sub-Chapters must be
in the name of Parent Chapter. Sub-Chapters must send copy of all expense bills to Parent
Chapter on monthly basis.

i. All vendor bills must have the vendor’s PAN Number and Goods & Services Tax (GST)
Number.

33