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ANNUAL REPORT
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LAPSES OF GTDC >>
GRATUITY LIABILITY
As against Rs 9.87 cr, GTDC has balance of just Rs 2.51 cr with LIC for its gratuity liability, This means that Rs 7.36 crore of gratuity liability is non-funded
PREMATURE PROFIT
Accounting for profit in 2015-16 while it should have been done in 2016-17 as the ownership of property was transferred only in 2016-17
UNCONFIRMED RECEVABLES
99.55% of trade receivables of GTDC as on March 31, 2017 were unconfirmed. GTDC sent letters to only 76 of 819 parties to confirm trade receivables. Of which, mere 5 have responded so far
REVENUE RECORD
Transfer of ownership of 27 landed properties not effected in the revenue records. These properties were transferred by the state government to GTDC during 1997 to 2006
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PANAJI: The auditor of Goa Tourism Development Corporation (GTDC) has given adverse opinion on the corporation’s financials for the year 2016-17 saying that the financial statements do not give a “true and fair view in conformity with the accounting principles”.
In GTDC’s annual report 2016-17, which is just released, the auditor has further said that GTDC has not maintained adequate and effective internal financial controls over financial reporting.
The auditor has highlighted that GTDC has not maintained adequate funds for its gratuity liability as on March 31, 2017. GTDC had taken a policy under the Group Gratuity Scheme of Life Insurance Corporation of India (LIC) for its gratuity obligation of its employees.
As against the gratuity liability of Rs 9.87 crore, GTDC had a fund balance of just Rs 2.51 crore with LIC for its gratuity liability. This means that Rs 7.36 crore of gratuity liability is non-funded, which has not been provided for in the books by GTDC. The auditor noted that this non-provision is a departure from Accounting Standard (AS) 15.
In another case, GTDC has accounted for profit on a certain transaction earlier than it should have. Based on auditor’s comments, GTDC accounted for a profit on sale of old office premises amounting to Rs 3.68 crore in 2015-16 on the basis of an agreement to sell dated March 2016.
However, the sale deed was registered and the possession to the buyer was handed over in May 2016. The auditor noted that GTDC accounted for this profit in 2015-16 while it should have done so in 2016-17 because the ownership of property was transferred only in 2016-17.
The auditor went on to highlight several other lapses in the financials of GTDC for the year 2016-17. For example, 99.55% of trade receivables of GTDC as on March 31, 2017 were unconfirmed. GTDC sent letters to only 76 of 819 parties to confirm trade receivables. Of which, mere 5 have responded so far.
Meanwhile, GTDC sent no such letters for confirmation of balances in the case of trade payables, loans and advances, deposits and rent received in advance.
The auditor also said that the tariff amounts appearing in the hotel management software can be changed by any employee of GTDC. This creates a possibility of loss of revenue to the corporation.
The managers at various residencies of GTDC have the authority to give discounts to customers ranging between 10-15% of the bill amount. However, the auditor observed that mangers can suo motu provide discount more than the limits in the hotel management software because the authorisation by higher authorities is manual and not automated.
The auditor also mentioned that transfer of ownership of 27 landed properties has not been effected in the revenue records. These properties were transferred by the state government to GTDC during 1997 to 2006. The report further said that GTDC is yet to get from the state government details like survey number and boundary of these 27 properties.
