Annual means every year.
Report means to communicate.
So the annual report is a collection of documents sent to members every year about all the important transactions and decisions taken through the year
It is meant to reveal information.
Unfortunately over the years ours seems to have been devised to conceal.
1. We have pages spent on the mojhni issue
Pages 5 to 10
It is important to know the dates and the people involved.
But we have five different measurements or more and we have not been told which is the correct one.
We have not been told how much FSI is available, how much has been used up and how much remains for extension.
Yes we may be shown some PowerPoint presentations but these are important matters that should be disclosed in the annual report
We know around ₹79 lakhs was collected.
This figure is not shown in the report.
All we can see is the net figure of ₹ 4, 07, 713 which is left over.
Instead of showing how that money was spent we have conveniently been given a building wise breakup. (page 34 Schedule 2)
This is called following the rules but not the spirit of the rules
The lawyer, and I believe earlier the architect has been changed by the MC without following proper procedures
Architect Dikshit of Shilp Associates (misspelled as Dixit in the report and Shilp Associates Schedule 4 page 35 have been given an advance of ₹4,29, 375 ani I would like to know how much has been spent ) has on his website portfolio 9 mostly MHADA projects all of whom are not completed.
I am awaiting response from Shilp Associates on details of their projects sent through the member who suggested this firm.
Even if the lawyer and architect were appointed by the MC because they were unable to take the member’s approval for some reason they should have at-least justified their choice in the Annual Report
Also some of the expenses are for the overall extension, some only for E type buildings and some for overall redevelopment
So the expenses should have been apportioned accordingly instead of the 113 flats footing the entire bill as appears from the report.
On page 29 in the income and expenditure account there is a expenditure of Mojani of ₹76013
These are separately shown. What is this expenditure for?
2. The expenditure on small items like postage and telegram (₹ 141 page 29) is shown separately but a breakup of items such as Contract Charges (₹14,06,128.81) is not given.
This is against the principle of materiality will know.
This is also against the full disclosure principle
The minutes say the choice is either mojhni or proceeding on redevelopment
This is a misrepresentation. Both can progress simultaneously
First of all the members deserve to know the complications and history of the mojhni case and details of the legal expenses incurred. This is not subjudice.
And we need to consider the possibility that we are pouring our money into a drain and could lose the subsequent cases as well. Sometimes we need to work our way around a Boulder rather than banging our head on it
Also what is the reason for the delay that is not being condoned?
We need to decide whether or not to proceed based on the merits of the case. The members being the part of the society are funding the case and disclosing details of past and future spends cannot be subjudice.
Also future spending need to be decided by the members in the AGM based on facts.
Subjudice is a much maligned word
The matter being subjudice has no connection with member seeking clarifications on legal costs incurred.
Managing Committee on it’s own should make disclosures and explain at AGM.
They are bound to reply to you.
You could address a query in writing and require discussion at AGM.
This is the answer to legal counsel I sought.
If the MC remain silent write to Registrar.
As far as fixed assets are concerned we have a strange one where opening balance is not disclosed . I believe this practice has been going on for years and needs to be corrected.
So if I want to find out how much was spent on composting ( 20 lakhs I’m told) I have to go search previous reports
An important thing that like this in an audited report cannot be oversight and the auditors should be taken to task by the MC over it.
Continuing on composting it is strange that that machine broke down in Covid and is not repaired till date. Workers and technicians may have gone away for a few months but after November they are definitely available
The installation of CCTVS is a welcome move.
What I am questioning is not the necessity of installation but the fact that we have spent ₹22 lakhs of our money on putting them up with only a one year warranty
I would like to know the basis of choosing this particular vendor when there are others who provide a five year warranty. Electronic equipments especially those exposed to rain are not expected to last ten years and the technology also becomes obsolete.
Do we really need 95 cameras
Also other effective methods like moniker number verification at the gate and having pictures taken probably provided by ADDA are not used.
CCTV camera expenses are split in to 70:30 ratio
When actually can be verified and I’m sure this is possible in this case the actuals should be recorded and not the 70:30 formula. This again is against accounting principles
There is a very important reason why plot 1&2 and plot 3 assets are separately maintained
This was done on the advice of Late Mr. Paingankar when I was doing the internal audit with him. This is because plot 3 buildings are newer and stronger and if plot 3 . In the event that plot 3 does not want redevelopment, the societies can be separated and plot 1&2 can be redeveloped. Given this plot 3 should not be amalgamated with plot 1 and 2
The breakup and quotations could have been put up for members on ADDA to see.
We spending ₹72640 each year on ADDA. We are barely using it’s functions such as posts and opinion polls. I would like to know why ADDA was chosen as against cheaper apps which don’t charge per member. It is foolish for a society of 567 members to go for an app that charges per member. MyGate the market leader charges per device at the gates and including ERP accounts and digitalised security at the gates works out to ₹36000 per year as per their quotation.so how many quotations we taken and from whom. On what basis was ADDA chosen?
The market leaders are MyGate and jioGate
I don’t know which I’d cheaper but I know MyGate foe our society is ₹36000 including ERP Accounting
We’re quotations taken from these two?
All 640 plus members including tenants have been admitted a owners. So we can’t even make use of the app we pay so much for.
I have posted on ADDA that the owners, other residents and tenants should be classified separately but this is not done.
This expenditure has been listed under as software maintenance charges on page 29
CCTVS cameras 22 lacs on 95 cameras
How many quotations and of what amount
Breakup of expenses
Why only one year AMC
Where is the breakup
How much was society money was spent on denying Hemant a CD he had every right to?
Was this matter put up on ADDA for the member’s views or is the MC justified in unilaterally spending this money?
What if this matter goes to the Supreme Court and 20 lakhs is spent?
This year all the people who attend can make their own CDs
Is the MC going to prosecute all of them?
In any case the courts have proved Hemant right and so those who opine that Hemant should have met the MC midway and viewed the CD in the office are proved wrong.
Hemant obviously was in the meeting so what would he do by viewing the CD. He probably wanted it because something wrong happened in the meeting or as usual decorum was not maintained
The MC does not have the right to burn up our money on what can only called either fear or ego issues
Video recording of several large organisation’s AGM available for all and sundry on YouTube
So what is so special ans secretive about ours?
Defaulter’s schedule is on 6/3/20 when it should have been the status on 31/3/20. Also the humane practice of stating by way of the note the names of people who have subsequently cleared their dues is not followed
We have over 150 trees and the wood is carted away in trucks. The annual report shows neither income nor expenditure. The more the trimming the more we pay
We have low lying areas to dump the larger logs and reduce expenditure. I would like to know how much we have paid. If the trees’s balance is upset by trimming they tend to fall during the rains. We should cut only the branches that are coming in the way of trucks or are too close to houses.
Furniture made from tree branches is very popular today so the question arises that who should be paying for our natural resource…. us or the contractor
The lack of disclosure and apparent attempts at misrepresentation whether in the case of mojhni, money spent from the extension collection, CCTVs, ADDA, Composting and small item like expenditure/ income on trees in the Annusal report and specially the income and expenditure account and the balance sheet is appalling
The insurance premium is mentioned as more than 3 lakh rupees. The insurance company’s name is not stated but I believe it is IFFCO Tokio a relatively new entrant half owned by a Japanese insurance company and the other half by a cash rich sugar cooperative.
How much addition discount did we get from a 20 year company that we chose it over insurance companies that have decades of track records of reimbursement in case of calamity?
All the stakeholders including the MC and the auditors have to answer for this
Requesting the Statutory Auditor to correct the lacunae failing which I reserve my right to approach the ICAI.
(Item 2 page 16) As for the internal auditors report there has been a request from years together that the internal auditors report along with the answers be printed in the Annual report. The internal auditors findings are very important and so every member should know what they have to say along with the MC’s answers. The attendance at the AGM is not 100% and many senior citizens have not been able to climb up to the top floor of the school to hear what the internal auditors have to say, especially as all members applauded them for the excellent work they had done.
So it is important that in future the report along with replies should be printed.
You can say my queries are too many to be answered but that is because there are too many unanswered questions in the Annual Report
I rest my case