New Delhi : , December 30, 2010 – The Annual General Meeting (AGM), rejected accounts that were not passed by the Delhi Gymkhana Club for the first time ever in its history. The members wrote Om Pathak (Administrator of Delhi Gymkhana) to inform him that they had rejected the resolution relating to the approval and adoption of FY 2020-21 financial statements at December 23’s AGM.More than 97% of members voted for the motion.
It was pointed out in the letter that the sudden acceptance by the Auditor of changes to accounting principles and policies by the Club over the years, which had been accepted for the past six years by all other Auditors without attributions, made it difficult to comprehend.
The letter stated that “It appears that the Auditor does not act as a watchdog for the interests of members of Club.”
The report also states that the club’s going concern status is stated on page 9, Para 18.The NCLT has taken possession of the matter, but the matter remains sub-judiced and there is no order.The Club’s large market-value investments have not been considered in determining the Club’s going concern status.
The report continued by saying that “Your intentions don’t seem to be the best interests of the Club or its members.” Your remarks at page 2/32 in your report, where you clearly state that the operation of the Club suffered a loss of Rs.127.78 million between 2009-10 and 2019-20.Do you intend to make the Club a case for dissolution/takeover?
The Resolution was rejected because it would have set an illegal precedent that could have serious consequences for our institution, which has been around since 1896.Honorable members had no choice but to reject the Agenda Item pertaining to approval of misleading, controversial and erroneous Audited Accounts/ Report by Administrator/Auditors Report.
This result is testament to how important honorable members place on the crucial issues raised by members regarding the policies and practices used in preparing financial statements for the Club’s FY 2020-21.It also shows that honorable Club members are committed to maintaining the image and avoiding any misleading narratives to render it economically insolvent.
According to Article 137 of 2013 Company’s Act, in case the Financial Statements or Administrator’s Reports are rejected, they must be passed at the adjourned AGM that is required for this purpose.
The letter stated that the Delhi Gymkhana members requested the revision of financial statements, restoring accounting principles and policies as they were in use in the institution over the last few years.
They also asked for reconvening the adjourned Annual general Meeting to receive fresh approval from the Club members.
“In addition to revising the Accounts, there are some amendments that need to be made to Administrators Report.Auditors will be asked to submit a new Auditor’s Report.”
san/ksk/
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