the presidency clubthepresidencyclub.com/pc-annual-report2016-17.pdfmr. b. elangovan mr. m. hiranand...

FEB 2017 FEB 2017 MAR 2017 MAR 2017 MAR 2017

THE PRESIDENCY CLUB

ANNUAL REPORT 2016-17ANNUAL REPORT 2016-17

ManagingCommitteeMr. Ramesh Jagtiani

Mr. Ranjit Jacob

Mr. P.Chander

Mr. Eswaran Annamalai

Mr. T.K. Srinivasan

President

Immediate Past President

Vice President

Honorary Secretary

Honorary Treasurer

Committee MembersMr. Chari S RameshMr. Chirag P BataviaMr. B. ElangovanMr. M. HiranandMr. Murali AnnamalaiDr. S. RamachandranMr. R. Sabari RajaMr. Sanjai ShankarDr. K. Shivaram SelvakkumarMr. P. Sundararaman

01

AuditorsM/s. M. K. Dandeker & Co.Chartered Accountants

Registered Office: "Fairlawns" 51, EthirajSalai, Egmore, Chennai - 600008. Tamilnadu.

ContentsNotice of the Annual General Meeting

Explanatory Statement

Notes

Report of the Managing Committee

Auditors' Report

Balance Sheet

Statement of Income and Expenditure

Cash Flow Statement

Notes – Financial Statement

Department - wise Distribution for

Income & Expenditure

10

13

21

27

28

26

09

30

42

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THE PRESIDENCY CLUB


The members of The Presidency Club express their deep sense of sorrow and convey their heartfelt sympathies to the respective families on the bereavement of their loved ones.

N.R.Currimbhoy

SM 091

P.S.Natarajan

R 660

Sobhraj Dayaram

SM 100

SM 139

N.D.Damani N.R.Kirushnan

SM 221

K. Sampath

SM 259

Sunil KumarSM 462

SM 248

D.S.Iyer

P.R. Mahtani

SM 154

Sat Paul Malik

SM 113

SM 128

R .Padmanabhan

P.Chandrasekaran

SM 351

Mahesh J Shah

SM 383

M.G.Narayana Moorthy

SM 101

Ramchand H Arora

L 130 R 197

Anjana Prabhakaran

02

In Memoriam

THE PRESIDENCY CLUB


NOTICE OF THE ANNUAL GENERAL MEETINGNotice is hereby given that the 87th Annual General 4. To elect five members to the Managing Committee

Meeting of the Members of The Presidency Club will be To consider and if thought fit, to pass the following

held on Saturday, the 23rd September 2017, at resolution as an Ordinary Resolution:

05:30pm at 51, Ethiraj Salai, Egmore, Chennai-

a) Five members to the Managing Committee600008 to transact the following business:

Commit tee Members Mr Ch i rag Batav ia ,

Mr. Murali Annamalai and Mr. Sanjai Shankar have 1. To consider and if thought fit, to pass the completed two terms and hence are ineligible for re-following resolution as an Ordinary Resolutionelection.

RESOLVED THAT the Minutes of the 86th Annual Committee Members Mr P. Sundararaman and General Meeting held on Thursday, the 29th Mr. R. Sabari Raja have completed one term and are September 2016, as presented to the Meeting be eligible for re-appointment.and is hereby read, confirmed and adopted.

2. To receive, consider and adopt the Audited

Balance Sheet as at 31st March, 2017, Statement

of Income & Expenditure for the year ended on that

date, together with the Report of the Managing To consider alteration of the following clauses of Articles Committee and the Auditors thereon.of Association of the Club

3. Appointment of Statutory Auditors:2 (ix) (d), 2 (ix) (f), 3(i), 3 (viii), 5 (i) a), 6 (i) a), 6 (vi) (a), 6 (vi) (b),

To consider and if thought fit, to pass the following 6(ix), 7 (iii), 9 (ii) (a), 10(iii),10 (iv), 11(i), 12 (v) ,13 (vi),13 (ix),

14 in compliance to the provisions of the Companies Act, resolution as an Ordinary Resolution:

2013 and rules framed thereunder and to provide clarity in RESOLVED THAT pursuant to the provisions of certain clauses of the Articles of Association. In

Sections 139 of the Companies Act, 2013 read with consonance to prior approval of the Registrar of

Companies, the clauses proposed to be altered are as Companies (Audit and Auditors) Rules, 2014 including follows:

any amendment, modif ication, variation or

re-enactment thereof, M/s M.K. Dandeker & Co,

Chartered Accountants [FRN:000679S], as Statutory

Auditors for a period of 5 years, be and is hereby ratified To consider and if thought fit to pass with or without

modification the following resolution as Special until the conclusion of the next AGM to be held in year

Resolution: 2018, at such remuneration which may be mutually

agreed between the Managing Committee and the RESOLVED THAT in terms of chapter 2 of the articles

of association of the Company (hereafter referred as Auditors”

ORDINARY BUSINESS

SPECIAL BUSINESS

A. RESOLUTION 1

5. AMENDMENTS TO THE ARTICLES OF ASSOCIATION OF THE CLUB

2 (ix) Long term temporary Members (D):

TEA 5.00 PM TO 5.30 PM, BA LLOTING WILL COMMENCE AT 06.30 PM AND CONCLUDE HALF AN HOUR AFTER THE AGM OR AT 9.00 PM WHICH EVER IS LATER

03

THE PRESIDENCY CLUB


club) the entrance fees and the refundable deposit membership or the deceased member and the payable by the Long Term Temporary Members and Associate Member who is the spouse of the the existing clause 2 (ix) (d) be and is hereby amended deceased member have together put in all total as follows: membership period of 10 years.

D) A person elected as a Long Term Temporary Member shall pay an entrance fee of Rs. 1,75,000/- (Rupees One lakh Seventy five

To consider and if thought fit to pass with or without thousand only) non-refundable for a term of

modification the following resolution as Special three years (36 months) or part thereof and

Resolution: refundable deposit of Rs.25,000/-

RESOLVED THAT in terms of Clause 3 of the articles

of association of the Company (hereafter referred as

club), the criteria for admission of members shall

To consider and if thought fit to pass with or without include the students and the existing clause 3 (i) be

modification the following resolution as Special and is hereby amended as follows

Resolution: 3(i) No candidate who has not completed the age RESOLVED THAT in terms of chapter 2 of the articles of 25 years shall be proposed or admitted as a of association of the Company (hereafter referred as member.club) the total number of Long Term Temporary

Members be raised from 200 to 300 and the existing

clause 2 (ix) (f) be and is hereby amended as follows:To consider and if thought fit to pass with or without

2 (ix) (f) The total number of Long Term modification the following resolution as Special

Temporary Members shall not exceed 300.Resolution:

RESOLVED THAT in terms of Clause 3 of the articles


To consider and if thought fit to pass with or without club), new sub-clause (viii) be and is hereby

modification the following resolution as Special incorporated for better management and governance

Resolution: as follows:

RESOLVED THAT in terms of Clause 3 of the articles 3 (viii) The Committee is empowered to enquire of association of the Company (hereafter referred as into the bonafide and the genuineness of the club), and to provide clarity as to the admission of the details furnished by the member irrespective of member's clause 3(i) be and is hereby amended as any categories of membership and to obtain follows:

necessary information to find out the existence 3 (i) A son/daughter of a deceased member can of the Institution/genuineness of the details be proposed by a Resident Member or Senior sought by the managing committee. Member or Life Member provided that the Member/ institution shall furnish such deceased member has completed ten years of information as may be relevant periodically, and

D. RESOLUTION 43 (i) ADMISSION OF MEMBERS

B. RESOLUTION 22 (ix) Long term temporary members (F)

E. RESOLUTION 53 (viii) ADMISSION OF MEMBERS

C. RESOLUTION 33 ADMISSION OF MEMBERS (I)

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THE PRESIDENCY CLUB


as may be sought by the club and if automatically terminated on the member being transferred from Chennai or by reason of his Members/Institutions fails to furnish the retirement or cessation from service for any information within the time provided by the club, reason whatsoever.or if the information furnished is not genuine and

satisfactory to the managing committee, the

managing committee may take such action as

may be necessary against such members/ To consider and if thought fit to pass with or without

institution at default including suspension and modification the following resolution as Special

termination of membership. This provision Resolution:

comes into operations, even after the RESOLVED THAT in terms of Clause 6 of the articles membership has been granted by the of association of the Company (hereafter referred as committee. In case of Resident category of club), the entrance fees and subscription fees clause, membership, where any termination of such 6(i) (a) be and is hereby amended as follows:

membership has to necessarily follow the 6 (i) (a) The entrance fee for Resident members provision as set forth in Chapter 13 (vii), (viii) and shall be Rs. 15,00,000 ( Rupees fifteen lakhs) (ix).only. However the entrance fee for the sons and daughters of members at the time of admission shall be Rs. 50,000/- (Rupees Fifty thousand) only To consider and if thought fit to pass with or without

modification the following resolution as Special

Resolution:

RESOLVED THAT in terms of Clause 5 of the articles To consider and if thought fit to pass with or without of association of the Company (hereafter referred as modification the following resolution as Special club), and to provide fees for extension of period of Resolution: Service Members, 5(i) (a) be and is hereby amended

RESOLVED THAT in terms of Clause 6 of the articles as follows:


5 (i) (a) Service Members duly proposed by one club), the entrance fees and subscription fees as per

member of the Club and seconded by another clause, 6(vi) (a) be and is hereby amended as follows:

member of the Club, may be admitted by the 6 (vi)(a) The entrance fee shall be Rs. 15,00,000/- committee, for a term not exceeding 3 years at a (Rupees fifteen lakhs) per nominee.time. The committee has the power to extend for subsequent term/s of 3 years periods (a term consists of 3 years) and on payment of fresh entrance fee as per clause 6(v)(a) or whatever fee To consider and if thought fit to pass with or without is prevalent at that time for each term so modification the following resolution as Special extended. Such membership shall stand Resolution:

G. RESOLUTION 76 (i) (a) ENTRANCE FEE AND SUBSCRIPTION

F. RESOLUTION 65 (i) (a) SERVICE MEMBERS

H. RESOLUTION 86 (vi) (a) INSTITUTION MEMBERS

I. RESOLUTION 96 (vi) (b) ENTRANCE FEE AND SUBSCRIPTION

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THE PRESIDENCY CLUB


RESOLVED THAT 7 (iii) No member shall be eligible to avail credit of association of the Company (hereafter referred as exceeding a sum of Rs.10,000/- in any month or club), the entrance fees and subscription fees as per part thereof. The committee shall be entitled to clause 6 (vi) (b) be and is hereby amended as follows: stop the credit of a member whose credit

exceeds the prescribed limit even during the 6 (vi) (b) The entrance fee of Rs. 15,00,000/-

month or part thereof.(Rupees fifteen lakhs only) shall be payable on admission of the nominee of the Institution as an applicant waiting for membership pending election by ballot by the committee.

To consider and if thought fit to pass with or without


Resolution: To consider and if thought fit to pass with or without

modification the following resolution as Special RESOLVED THAT in terms of Clause 9 of the articles

Resolution: of association of the Company (hereafter referred as

club), to have clarity in cases where any of the person RESOLVED THAT in terms of Clause 6 of the articles

resigns before the completion of his/her tenure, clause of association of the Company (hereafter referred as

9(ii)(a) be and is hereby amended as followsclub), and to provide effect for Government and other

statutory levies/taxes, new clause 6(ix) be and is (9) (ii) (a) The President, Vice-President, hereby incorporate as follows: Honorary Secretary and Honorary Treasurer

shall be elected at the Annual General Meeting 6 (ix) Government levies including GST/Cess will

and shall serve a term of two years from the be applicable and in addition to the entrance fee

Annual General Meeting at which they were notified for various categories of memberships

elected and shall retire at the end of the two and in case of non-confirmation of membership

years term but shall be eligible for re-election. under Articles 4, only the entrance fee shall be returned after adjusting the dues if any to the If any elected member resigns before his/her Club. Government levies shall not be refunded. tenure is completed and if the remaining period

of tenure is more than 12 months, then the vacancy shall be filled up in the next AGM. However, the person so elected will hold office

To consider and if thought fit to pass with or without only for the remaining period until the next AGM. modification the following resolution as Special This tenure will not be counted for the term Resolution: under Art 9 (ii) c. Further the member who had

resigned shall not be permitted to contest in the RESOLVED THAT in terms of Clause 7 of the articles

election of the club for any post for a period of of association of the Company (hereafter referred as

two years from the completion of the club), and to taking into the interest of the members of

actual/original tenure.the Club credit limit of the members as per clause, 7(iii)

be and is hereby amended as follows

in terms of Clause 6 of the articles

L. RESOLUTION 129 (ii)(a) ELECTION OF OFFICE- BEARERS AND MEMBERS OF THE COMMITTEE

J. RESOLUTION 106 (ix) ENTRANCE FEE AND SUBSCRIPTION

K. RESOLUTION 11 7 (iii) MEMBERS DUE

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THE PRESIDENCY CLUB


M. RESOLUTION 1310 (iii), 10 (iv)COMMITTEE MEETING, 11 (i) BORROWING POWERS, 12 (i), (v) GENERAL MEETINGS, CLAUSE 14 NOTICE

N. RESOLUTION 1413 (vi) DISCIPLINARY COMMITTEE

at a General Meeting by a Special Resolution, borrow from among the members of the club themselves such amounts not exceeding the amount so sanctioned and on such terms as the Committee think fit on the security of debentures

To consider and if thought fit to pass with or without charged upon all or any of the properties of the modification the following resolution as Special Club movable or immovable. Provided that such Resolution: debentures shall not be transferable except with

the consent of the Committee previously RESOLVED THATobtained.articles of association of the Company (hereafter

referred as club), to comply with the provisions of 12 . (v) Demand for poll shall be made by at least Section of Companies Act, 2013, clause 10 (iii), 10 (iv) five members having the right to vote on the COMMITTEE MEETING, 11 (i) BORROWING

resolution and present in person.POWERS, 12 (i), (v) GENERAL MEETINGS, Clause 14

14. A notice may be given by the club to any notice be and is hereby amended as follows

member either by handing it over to him/her in 10 (iii) The quorum for the meeting shall be either

person or by sending it over by post to his/her eight members of the Committee or twenty-five

registered address or sent through electronic per cent of its total strength, whichever is less,

means to his/her email id registered with the provided that the quorum shall not be less than

club.two members.

10 (iv) If the President or Vice President or Honorary Secretary or Honorary Treasurer or any members of the Committee shall absent To consider and if thought fit to pass with or without

himself from all the meeting of the Board of modification the following resolution as Special

Directors held during a period of twelve months Resolution:

with or without obtaining leave of absence, he RESOLVED THAT in terms of Clause 13 of the

shall deemed to have vacated his/her office. The articles of association of the Company (hereafter

Committee shall have power to decide any referred as club), to provide strict adherence to code

question arising out of the application of this of conduct and good corporate governance,13(vi) be

clause.and is hereby amended as follows

11 (i) If at any time it be considered by the 13 (vi) After the enquiry referred to in clause (v) is

Committee expedient to raise loan by issue of completed, (a) if the of the Committee is of the

debentures for the purchase or erection of a opinion that in the light of the enquiries made

building for the Club or for extending or and further explanations offered, no further

improving such building or for carrying out any of action need be taken, further proceedings will be

the objects of the Club, the Committee may, with dropped and the suspension of the member

the sanction of the not less than two- thirds of cancelled with immediate effect or (b) if the of

the members voting (e-voting and physical vote)

in terms of Clause 10 of the

07

THE PRESIDENCY CLUB


the Committee is of the opinion that in the light of thereof shall be send to him/her by the Honorary the enquiries made and further explanations Secretary.offered, the charges against the offending mem-bers are proved, the Committee may suspend the member as a punishment for a term not exceeding six months. c) During the tenure of his/her membership, if any member other than a

Sd/-Resident Member, is placed under suspension as referred above, for three or more times, subsequent to his/her suspension, the committee may at its discretion declare the

Dated: August 14, 2017membership as having gone on cessation. In Chennai – 600 008

case of a Resident Member the committee may at its discretion call for a General Meeting.

To consider and if thought fit to pass with or without


Resolution:

RESOLVED THATarticles of association of the Company (hereafter

referred as club), to provide strict adherence to code

of conduct and good corporate governance,13(ix) be

and is hereby amended as follows

13 (xi) Notwithstanding anything contained in clauses (i) to (viii) of Art.13, if the managing committee is of the opinion that any member should be removed from the membership of the Club for any other reason, they shall place all available material for the consideration of a special General Body Meeting where the concerned member shall be given an opportunity to explain his/her case and if 2/3rd of the members present and voting (e-vote & physical vote) decide that the member concerned has merited expulsion, he/she shall cease to be a member of the club and intimation

6. Any other matter with the permission of the Chair.

Eswaran Annamalai

O. RESOLUTION 1513 (ix) DISCIPLINARY COMMITTEE

in terms of Clause 13 of the

BY ORDER OF THE COMMITTEE

Honorary Secretary

08

THE PRESIDENCY CLUB


Item No.4:

Eswaran Annamalai

Item No.5:

management of the Club, the amendments pertaining

to revision of admission fees and increasing the limit of Nominations for the post of five members to the the members has been carried out. The Committee Managing Committee are called for from eligible proposes to adhere to strict code of conduct and good members together with letters of consent from the corporate governance in the Club. Hence clarity has nominated candidates so as to reach the Club Office been brought in certain clauses for good corporate not later than 6 pm on 5th September 2017. governance.

Nominations duly completed in a closed envelope The Company has already received prior approval from addressed to the Honorary Secretary with a note super RoC- Chennai for amending the Articles of Association scribed “NOMINATION” should be deposited in the in compliance to the provisions of Companies Act, box specifically provided for the purpose in the Club 2013. Now the committee desires to place the same Office for the member's approval.

Members will be advised about the list of valid

nominations by 12th September 2017.Sd/-

Member's attention is drawn to the provisions of the

Articles of Association given in Clause 9 and its sub

clauses relating to “ELECTION OF OFFICE BEARERS

AND MEMBERS OF THE COMMITTEE”.Place: Chennai – 600 008

Dated: August 14, 2017Members standing for the position of Office Bearers or

Committee Members please note that the last day for

withdrawing nomination from the election process is by

6 pm on September 18th, 2017. No withdrawal from

candidature will be permitted beyond this cut off

period.

The Committee in the ensuing Annual General Meeting

proposes/desires to amend the Articles of Association

of the Club in compliance to the provisions of

Companies Act, 2013 and to provide clarity in certain

articles and to provide good corporate governance in

the manner which would serve the interest of all the

members of the Club. The Committee is proposing to

bring various infrastructural developments inside the

club to serve the interest of the members of the Club.

Further the Club has not revised the entrance fees for a

period of five years. Since the club has to meet the

expenses for the said developments and for efficient

BY ORDER OF THE COMMITTEE

Honorary Secretary

EXPLANATORY STATEMENT PURSUANT TO SECTION 102 (1) OF COMPANIES ACT, 2013

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THE PRESIDENCY CLUB


NOTESMembers may take note that this Annual General voting”) will be provided by National Securities

Meeting commences at 05.30 PM to comply with the Depository Limited (NSDL), Service Provider

provisions of the Companies Act, 2013. authorized by Ministry of Corporate Affairs. The

connectivity provider for the same would be Integrated The notice of the 87th Annual General Meetings forms

Registry Management Services Private Limited, who is part of a set of 2 booklets that had been sent together:

Registrar & Transfer Agent ("RTA").

Ÿ Notice of the 87th Annual General Meeting, the Members are provided with the facility for voting either

Annual Report and Statement of Accounts for the through electronic voting system or physical ballot at

year ended March 31st 2017 form a booklet andthe AGM and Members attending the meeting who

Ÿ The Minutes of the 86th Annual General Meeting, have not already cast their vote by remote e-voting are

Budget for 2017-18 and Unaudited Report – First eligible to exercise their right to vote at the meeting

quarter ended 30th June 2017 form another through physical ballot system.

booklet.Members who have exercised remote e-Voting are

Members intending to seek clarifications are requested allowed to attend and participate in the discussion, but

to submit them in writing to the Honorary Secretary at should not vote again in the AGM, through physical

ballot, as per the provisions of the Act. least 7 days before the date of the Annual General

Meeting. Members can opt for only one mode of voting, i.e.,

either by Ballot Form or e-voting. The members cannot The Annual Report copies will be available at the venue cast part vote through e-vote and other part through on the day of the Annual General Meeting for ballot form.inspection.

The remote e-voting period commences on 20th Explanatory Statement pursuant to Section 102 (1) of September 2017 (9:00 a.m. IST) and ends on 22nd Companies Act, 2013 is annexed herewith and forms September 2017 (5:00 p.m. IST).part of this Notice.

Members of the Company (Club) who are eligible to

attend and vote at the AGM, as per Clause 9 of the

Articles of Association are eligible to vote.In compliance with provisions of companies Act, 2013

The remote e-voting module shall be disabled by NSDL Rule 20 of the Companies (Management and

for voting the thereafter. Once the vote on a resolution Administration) Rules 2014 as amended by the

Companies(Management and Administration) or business is cast by the Member, the Member shall

Rules,2015, the Company is pleased to provide not be allowed to change it subsequently.Members the facility and the option to exercise their

For the sake of clarity, it is informed that any Member right to vote on all the resolutions in the Notice

who has not settled the dues in full to the Club for 2 proposed to be considered at the AGM by electronic calendar months preceding the date of AGM, if voted means and the business may be transacted through e-through Remote E-voting and does not settle his/her Voting services. The facility of casting the votes by the

dues in full by 23rd September 2017 on or before 5 PM, Members using an electronic voting system from a

place other than venue of the AGM (“remote – e- the votes cast by him/her through Remote E-voting

PROCESS AND MANNER FOR MEMBERS OPTING FOR E-VOTING ARE AS UNDER

10

THE PRESIDENCY CLUB


shall be treated as invalid. The same shall be applicable Managing Committee (Committee Members) wherein if

there are 5 or lessor number of candidates contesting for voting by physical ballot on the date of the AGM.

for the post the same shall be voted by the members by Mr. P. SRIRAM Practicing Company Secretary

selecting either ‘FOR‘ or ‘AGAINST‘ for the proposed "FCS 4862" of P. Sriram and Associates,

appointment of Managing Committee Member.Company Secretaries has been appointed as the

The AGM shall commence at 05.30 PM, members are Scrutinizer for providing facility to the Members of the requested to come before the stipulated time. Balloting Company to scrutinize the Physical voting and remote will commence at 6.30 PM and conclude half an hour e-voting process in a fair and transparent manner. In after the AGM or at 09.00 PM whichever is later. matters of eligibility & validity of the votes cast, through

remote e-Voting or Physical voting, the decision of the Members will receive the User ID & Alphanumeric Scrutinizer shall be FINAL. password in a separate communication to be

sent by Integrated Registry Management The Chairman shall, at the AGM, at the end of

Services Private Limited. Please enter the user ID discussion on the resolutions on which voting is to be

and password provided in the document sent by held, allow voting with the assistance of Scrutinizer, by

Integrated as initial password. The Password use of “Ballot Paper” for all those Members who are

Change Menu will appear on your screen. Change present at the AGM but have not cast their votes by

to a new password of your choice, making sure availing the remote e-voting facility.

that it contains a minimum of 8 digits or The Scrutinizer shall, after the conclusion of voting at

characters or a combination of both. Please take the AGM, first count the votes cast at the meeting

utmost care to keep your password confidential.physically and, thereafter, unblock the votes cast

through remote e-voting in the presence of atleast two

witnesses not in the employment of the Club and shall (i) Launch internet browser by typing the following

make, not later than three days from the conclusion of URL: https://www.evoting.nsdl.com

the AGM, a Consolidated Scrutinizer's Report of the (ii) Click on Shareholder – Logintotal votes cast in favour or against, if any, to the

Chairman or a person authorised by him in writing, who (iii) Select “EVEN” of “The Presidency Club”, which shall countersign the same and declare the result of the is 107135 for Item numbers 1, 2 , 3 & 5 in the voting forthwith. The Procedures pertaining to e-Voting Notice.shall be duly complied with pursuant to the provisions

For Item No. 4, the “EVEN” is 107137 for election of of Companies Act 2013 and Rules framed thereunder.

Five Members for the Managing Committee. On the

Members exercising remote e-Voting option in respect voting page, you may cast your vote by Selecting

of Item No.4 in the Notice an appropriate option “For or “Against” and click

“SUBMIT”. A confirmation box will be displayed. a) For the post of Managing Committee -shall select

Click “OK” to confirm or “CANCEL” to modify. not more than five members of their choice to the

Once you confirm, you will not be allowed to modify Managing Committee. If they select more than five

your vote. Upon confirmation, the message “Vote members, the e-voting system will not allow the same

Cast Successfully” will be displayed.and it will be restricted to five members

(iv) Login using the User ID and the password that you b) In the case of any position for Members of the

have created.

PROCEDURE FOR E-VOTING:

11

THE PRESIDENCY CLUB


(v) Home page of remote e-voting opens. Click on (xi) You can similarly vote in respect of all other

remote e-voting: Active Voting Cycles. resolutions forming part of the Notice of the AGM.

During the voting period, Members can login any (vi) Now you are ready for remote e-voting as Cast number of times till they have voted on all the Vote page opens.Resolutions.

(vii) Cast your vote by selecting appropriate option and (xiii) If you wish to log out after voting on a few click on “Submit” and also “Confirm” when

resolutions and continue voting for the balance prompted.resolutions later, you may click on “RESET” for

(viii)Upon confirmation, the message “Vote cast those resolutions for which you have not yet cast

successfully” will be displayed.the vote.

(ix) Once you have voted on the resolution, you will not (xiv) Members who do not wish to exercise e- Voting

be allowed to modify your vote.option may exercise their voting rights in the usual

(x) Item No. 1, 2, 3 & 5 use EVEN 107135 on the manner by Physical ballot on the date of the AGM.voting page, you may cast your vote by Selecting

(xv) NSDL e-voting help deskan appropriate option “For or “Against” and click

Contact Mr. Rajiv Ranjan : 022- 2499- 4738 or “SUBMIT”. A confirmation box will be displayed. Toll Free no. 1800222990 or Click “OK” to confirm or “CANCEL” to modify.

Once you confirm, you will not be allowed to modify Mr.Bandam Srinivas at 044-28143917, or

your vote. Upon confirmation, the message “Vote Integrated Registry Management Services Private

Cast Successfully” will be displayed. Limited, 044 28140801, 802, 803 - Mr. S. Yuvaraj

or Mr. S. Sriram or by email to NSDL at evoting@ Item No 4 (a), Committee Members – Use nsdl.co.in. The results declared along with the EVEN 107137: On the voting page, you may cast Scrutinizer's Report shall be placed on the your vote by selecting not more than 5 members Company's We b s i te v i z . http: / /www. the and click “SUBMIT”. A confirmation box will be presidencyclub.com and on the website of NSDL displayed. Click “OK” to confirm or “CANCEL” to immediately after the declaration of the result by the modify. Once you confirm, you will not be allowed Chairman or a person authorized by him in writing. to modify your vote. Upon confirmation, the

message “Vote Cast Successfully” will be

displayed.

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THE PRESIDENCY CLUB


REPORT OF THE MANAGING COMMITTEEThe Managing Committee has pleasure in presenting the 87th Annual Report together with the

Audited Statements of Accounts of The Presidency Club for the year ended March 31, 2017.

RESULTS OF OPERATIONS

1348.68

76.13

32.31

1457.12

360.13

642.50

405.43

3.44

39.73

1451.23

5.89

-22.09

-16.20

1111.75

80.28

28.27

1220.30

321.70

562.12

347.10

2.06

36.43

1269.42

(-) 49.13

23.50

(-) 72.63

Particulars ` in Lakhs2016 - 2017 2015 - 2016

Revenue from the Club facilities

Interest income

Other income

Consumption – Catering, Bar and Snack Bar

Employee cost

Other operating & administration expenses

Interest

Depreciation and amortization expenses

Excess on income over expenditure before

Exceptional items and tax

Tax expenses

Excess of Income over expenditure after tax

Total Income

Total Expenditure

13

Total Income

1600

1500

1400

1300

1200

1100

1220.30

1457.12

(in Lakhs)

Execess of Income over Expenditure Before Tax (in Lakhs)

-49.13

5.89

(in Lakhs)

Cash Profit

50

25

0

-25-12.68

45.62

(in Lakhs)

Execess of Income over Expenditure After Tax (in Lakhs)

-72.63

-16.20

(in Lakhs)

THE PRESIDENCY CLUB


The year passed by much too quickly we hardly had This committee has invested a lot of time establishing a

time to execute our strategies. However we did focus professional management structure, cost re-engineering,

on our strategies and did fairly well. Not just on the optimizing resources, focused marketing activities and

financial front but also on every facet of the club with more importantly being supremely member friendly. This

the relentless job by our managing Committee combination has effectively helped us in overcoming many

members and also the re engineered professional challenges and be more focused towards maintaining the

team of managerial staff. The transformation of the high standards. At PC our focus has always been on

club from the ordinary to being the best in the city delivering superior clubbing experience and maximizing

could be seen not only in the financials but also value for our members. We are excited about what lies

permeated across to members activities and events, ahead.

to procedural changes, to technology embracement, The Club has been complying with all statutory rules and

most importantly to a systems driven club. regulations including gratuity, provident fund, employees'

The financial year has been encouraging and has state insurance, etc. and there are no arrears on any

resulted in an excess of income over expenditure of count. Matters relating to Income Tax, Service Tax, VAT

Rs. 5.89 lakhs before tax as compared to a loss of Rs. and Entertainment Tax, the Club is up to date except for

49.13 lakhs in the previous year. The interest income the appeals preferred before the concerned authorities.

for the year was Rs. 76.13 lakhs as compared to Rs.

80.28 lakh for the previous year. The club has made a

cash profit of Rs. 45.62 lakh as compared to a cash

loss of Rs. 12.70 in the previous year.

OVERALL SCENARIO & OUTLOOK

6

5

4

3

2

1

Tambola Collections

3.42

5.85

(in Lakhs)

Tambola Profit1.92

-0.17

Snack Bar Sales70

60

50

40

30

53.96

62.74

(in Lakhs)

Snack Bar Profit

2.10

2.73

(in Lakhs)

Bar Sales

200

175

150

125

100

149.09

178.47

(in Lakhs)

Bar Profit

-33.11

6.93

(in Lakhs)

Catering Sales

500

400

300

200

100

0

319.26

359.24

Catering Profit

-2.37

0.06

(in Lakhs)

14

Guest House Profit

70

60

50

40

30

20

65.49

51.13

(in Lakhs)

Guest House Sales

150

125

100

147.42

145.70

Employee Benefit Expenses

700

650

600

550

500

450

562.12

642.50

(in Lakhs)

Term Deposits

901.04

1079.72

(in Lakhs)

THE PRESIDENCY CLUB


AFFILIATION CARDS

CAR PARKING

BADMINTON

BILLIARDS & SNOOKER

CAR RALLY

CATERING

Regular rummy tournaments were conducted.During the year we have received many applications for

affiliation to our club. We have processed those

applications and initiated steps to choose clubs which Car parking, a challenging requirement, was match our club in facilities. addressed by implementing and changing the direction

of entry pattern near the portico for driver driven cars,

which eased out and regulated the traffic thereby A new set of lockers have been provided for the

reducing the strain on members. Additional Valet convenience of the members. An Intra club ranking

drivers were placed on a daily basis and even more tournament was conducted. Coaching sessions were

valet drivers on event days. Close monitoring by well patronized.

placing a security assistant, we were able to reduce

the car park issues.

The billiards room continued to be sociable, stylish and

well utilized. All the tables were spruced up with new PC Treasure Trail Car Rally is scheduled for September

felt and cushions. It was interesting to note that a few 2017.

ladies too have taken up the game very seriously. Many

tournaments including Ahmed Hussain Memorial,

J. Sampath Kumar Memorial, Lanson Toyota and Club The catering department raised the bar during event Ranking Tournament were conducted successfully days by providing comfortable dining experience with with great participation. The Billiards room bathroom personalized tables, more counters and bearer service. too was completely renovated.

MEMBERSHIP

Category of Membership As on 1st April 2016 Addition Deletion

As on31st March 2017

*Deletion includes resignation, death, confirmation and change to other categories

15

293

108

867

221

17

39

473

112

164

29

2323

23

3

41

12

11

3

-

9

39

57

198

14

10

36

9

6

4

19

10

16

36

204

302

101

872

224

22

38

454

111

143

50

2317

Senior

Life

Resident

Non –Resident

Service

Associate

Institution - I

Institution - C

Long Term Temporary

Waiting Member

Total

THE PRESIDENCY CLUB


The food too on all the event days was carefully Christmas Kids Carnival

selected to ensure gratification of members taste buds. Arabian Nite

New varieties of food items were introduced in addition Cake Mixing

to the existing menu. PC Master Chef 2017 Fire work Display & Dosai Mela

competition was conducted this year with a difference New Year Eve Bash 2017with a mystery box where three generations show

cased their culinary skills. A New satellite kitchen was New Year Lucky Raffle

set up near the bar to provide hot snacks to the Pongal Celebrationmembers.

Valentine’s Day

A new contract kitchen equipped with modern gadgets Republic Day Eve

for International food was introduced and well received Sing along with Sudhaby the members. All kitchens are being spruced up

periodically and maintained well. Tamil New Year Nite - with junior singers Hari Priya,

Naraynan and Yaazhini along with Crystlz live bandSpecial millet dosas, special veg and non-veg meals

Retro nite with DJ IVANalong with combos have been introduced. Every

fortnight pest control measures are taken up. Vendor Pongal- traditional style with Pongal being cooked

management and waste control have been seriously inopen air, Silambattam and Live Music by

looked into. Weighing machines and pest control Thilakavathi

machines have been added in all kitchens. 2 Block Buster movies were screened every month

Couples Nite

Special Tambola EventsMembers were encouraged to highlight areas of

improvement and suggestions. Complaints received in Karaoke Night

the form of email, whatsapp, SMS, Tel message and Members’ Night

written complaints were recorded immediately and Apart from regular entertainments, the Club addressed immediately by the managerial people as a conducted interesting events like first step and by the managing committee thereafter if

required. Action taken letters were sent to all the PC handlebar Army – early morning Cycling activity

members who had given suggestions. Walkathon – early morning Walking event

Gentlemen’s Club - Senior Members Day to meet

up their buddies.Operating with energy efficiency in mind, we continued

Master Chefby replacing existing fixtures with LED.

Family Fun Cricket - members family activities

Health Screening Camp by ApolloThe entertainment saw a fascinating variety of shows,

GST Simplified – a seminar on GSTfun events and musical nites like

The most anticipated entertainment event MEMBERS Dandiya Raas - Dhol Bhaje Night

NITE and CAR Rally is scheduled during August and Happy Halloween September, 2017 respectively.

§

§

§

§

§

§

§

§

§

§

§

§

§

§

COMPLAINTS FROM MEMBERS §

§

§

§

§

§

ELECTRICITY §

§

§ENTERTAINMENT & EVENTS

§

§

§

§

16

THE PRESIDENCY CLUB


E- Managing system GYM

§

§ THE iBAR§

§

§

§

ADMINISTRATIVE REFORM

§

§

LABOUR§

§

§

§

GUEST HOUSE

PC is continually seeking systems that can solve a Fitness enthusiasts in order to achieve fitness goals

variety of problems associated with reduction of and keep healthy continued to patronize our gym. Gym

processing time and labour intensive operations and competition is currently in progress. Additional

handling large volumes of paper. Some of the initiatives equipment was installed. Apart from the individual gym

taken in this area are: training a gym coaching class for the youngsters too

was conducted.Electronic Bills – Monthly Bills are sent by email

Tab based KOT System

SMS AlertsA stunning range of imported whiskies, single malts,

Payment remittance notificationcognac and vodka at never before prices were stocked

Vendor management system - payments through for our members. A conscious decision to reduce the

NEFTprice of regular drinks and an extraordinary reduced

Auto credit release - as and when payments are pricing on bottle parcel gave us the desired result of received and credited increase in sales by 20 percent. The bar made a profit

of about 6 lakhs from a loss the previous year. Regular

monthly events such as couples night, DJ Nights etc Defined the Organization Structure and introduced

added much needed fillip to the bar sales and member a clear reporting structure.

camaraderie. Special events such as Art Of Blending Defined Key Result Areas and Key Performance by Johnnie Walker, Gentlemens Club for senior Indicators for all managers in order to bring clarity to members, Karaoke night added flavour to the events what is expected of them and thereby giving them calender and to the balance sheet.job satisfaction.

Centralized purchase department to facilitate

purchases of the club leading to greater control. Employee relations saw an all-time high with the Fortnightly Facilitation Meeting among the settlement amicably sorted out to the satisfaction of all managers and supervisors to resolve all issues. concerned. It must be said that the employees were an

integral part of all the activities and made every event a Held a vendor meet to understand their issues and

grand success. They also rose the bar when the sorted them out.

workload increased and were more than willing to Monthly Appraisal - the performance of staffaccept changes in their stride and perform

exceptionally well. The new initiatives on the HR front

as well as frequent interaction were well appreciated by Two rooms were renovated with a classy interior.

the staff. Morale, work culture and efficiency level were Further 6 rooms are in the process of renovation. The

considerably higher due to this.renovated rooms are fitted with electronic locking

systems, Safety lockers, electronic kettle with Introduction of the performance monitoring systems complimentary coffee and tea bags. Shoe shine like KRAs (Key Result Area) & KPIs ( Key Performance machine has been installed for guests. A new Lift with

Indicator), employee-supervisor interactions, appraisal safety landing system has been instal led.

through an easy to understand process led to Housekeeping has been outsourced to a reputed

improved and satisfied service performance. multinational company.

17

THE PRESIDENCY CLUB


Rehabilitation programs for few of our employees

helped the employee to regain a foothold on life and Mr. Ramesh Jagtiani 25 96.15progress further. This is a first time initiative of the

committee in ensuring our people are taken care of. Mr. Ranjit Jacob 1 3.85

The May Day Celebration was held in our club lawns Mr. P. Chander 24 92.31and the staff families had a wonderful time. The club

Mr. Eswaran Annamalai 26 100.00honoured the staff who had completed 25 years of

meritorious service with a silver coin. The retiring Mr. T.K. Srinivasan 23 88.46employees too were honoured and were rewarded

Mr. Chari S Ramesh 18 69.23with silver coin.

Mr. Chirag P Batavia 23 88.46As a motivation exercise the uniform of all the staff were

given specially designed uniforms. Mr. B. Elangovan 19 73.08

Staff relations were good throughout the year. Mr. M. Hiranand 22 84.62Discipline and zero tolerance in certain areas were also

Mr. Murali Annamalai 20 76.92communicated and well appreciated. All disciplinary

issues have been dealt with appropriately. Dr. S. Ramachandran 23 88.46

A health camp was organized for the staff. Mr. R. Sabari Raja 12 46.15

Mr. Sanjai Shankar 19 73.08

Books we re added pe r i od i ca l l y on t he Dr. K. Shivaram Selvakkumar 23 88.46recommendation of library users by the newly

Mr. P. Sundararaman 22 84.62appointed librarian.

A Book fair was conducted in our Club which had

several topics of books for all age groups.Maintenance continues to play a vital role. We had a

great number of challenges starting with the swimming Salon room was refurbished and this was well pool tilting, the floods, the sewage block problem, patronised by members. fallen trees, etc. The team of maintenance acted upon

Lawn service after a lot of delay due to heat first, then all these challenges and with minimal cost were able to mosquitos and rains was reintroduced. A lot of activity maintain our club impeccably. Initiatives such as is planned to improve the lawn and better dining planting saplings and rain water harvesting were also experience. implemented. Scheduled maintenance calendars were

pre planned and maintained regularly.

A new team representing a multinational company was 26 Meetings were held between 30.09.2016 and employed to additionally help our own staff in 14.08.2017 (both inclusive). The number of meetings maintenance. Many tools were also augmented to help attended by the Members of the Committee are given in cleaning. Bore well was reactivated. Waste below management systems introduced.

Members Nos %

LIBRARY, SALON AND LAWN

MAINTENANCE

MEETINGS OF THE MANAGEMENT

18

THE PRESIDENCY CLUB


NEWS MAGAZINE

PARTY HALLS

TENNIS

§

§

SNACK BAR

TAMBOLA

SQUASH

SPLASH

SWIMMING POOL

Further expert advise was sought Then started the

challenges which can be classified after analysis as five Fairlawns, our club monthly magazine, was effectively factors like RCC tank structure soundness, water loss, used to carry all the information of the club’s activities leakage, recycling water wastage and filteration. All of and also was used as a source for communicating all these were observed over a period of time and our event information and other club matters. Fairlawns addressed effectively to bring the swimming pool to the was also used effectively to cut costs of printing and renovated condition and made usable. It is currently postage on events, which hitherto were individually being used by many. Having said that the management communicated through individual cards and couriered. is seriously considering alternate proposals of

renovating to a newer pool in the coming months, after

monsoon period.Our party halls became a perfect solution for members

to celebrate their special occasion. Some changes in

our philosophy led to parties becoming more popular The following tournaments were conductedwith the members. Lawn was dividied into 5 zones to

facilitate a better rate and more parties. Understanding PC open tennis tournamentthat more parties meant lesser parking space, it was

made mandatory for member having parties to employ PC Karlsberg tennis tournamentmore valet drivers accoding to the number of guests.

Coaching classes were also conducted coaching for

beginners.

No week passed by with snack bar not introducing

newer varieties of snacks. Snacks were also placed for

sale at different outlets within the club. Tambola was an activity which saw some changes very

early and was going through a difficult phase in the

beginning. However the way it took off this year was Squash - fast-paced game mentally and physically, something the club has not seen at all. Every month was well utilised by users. Coaching classes continued had a separate tambola calendar celebrating every to be held and have considerable patronage. special event of the month with a special tambola.

Children’s tambola

One of our prestigious offering to the members is a new Farewell 2016 bumper tambolaplace exclusively for sportsmen who would like to sit in

the comfort of an airconditioned lounge called the Republic day eve Bollywood musical bumper Splash Sports Cafe. The splash saw a few events tambolaoutside on the swimming pool area like Nabrun nite and

Valentine special tambolaa lunch event.

Holi tambola conducted in the afternoon.

Hindi, Telugu, Tamil and Malayalam New Year The recently renovated swimming pool went through tambolasome challenges from the nature rendering it unusable.

However after considerable efforts it was made usable. GST tambola

Then the serious problem of water discoloration took A novel idea was introduced where tambola tickets us by surprise. After an initial trial of solving the issues were combined with snacks.failed, an open house was conducted inviting members

views.

§

§

§

§

§

§

§

19

THE PRESIDENCY CLUB


CORPORATE GOVERNANCE

PARTICULARS OF EMPLOYEES

PARTICULARS REGARDING CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION

CONCLUSION

FOREIGN EXCHANGE EARNINGS AND OUT GO

AUDITORS

DIRECTORS RESPONSIBILITY STATEMENT

Eswaran Annamalai,

have been followed along with the proper

explanation relating to material departures, if any;The Club is committed to adopting best practices in the

ii) the directors have selected such accounting area of corporate governance. The Club believes that policies and applied them consistently and made proper corporate governance is not just a requirement judgements and estimates that are reasonable and for regulatory compliance, but also a facilitator for prudent so as to give a true and fair view of the state enhancement of members' value.of affairs of the company at the end of 2016-17 a n d

of the loss of the company for that period;There were no employees for whom the particulars as per

iii) the directors have taken proper and sufficient Section197of the Companies Act, 2013 read with Rule

care for the maintenance of adequate accounting 5(2) of the Companies (Appointment and Remuneration

records in accordance with the provisions of the of Managerial Personnel) Rules, 2014 is applicable.

Companies Act, 2013, for safe guarding the assets

of the company and for preventing and detecting

fraud and other irregularities;

Our operations, though not akin to commercial or iv) the directors have prepared the annual

industrial activites, are indeed energy intensive as accounts on a going concern basis;

power costs are high. v) the directors have devised proper systems to

Significant measures are taken to reduce energy ensure compliance with the provisions of all

consumption by the introduction of energy efficient applicable laws and that such systems were

lighting and by constant monitoring. The particulars adequate and operating effectively.

relating to technology absorption as stipulated in the

Companies (Disclosure of particulars in the report of The Managing Committee places on record its

the Board of Directors) Rules 198 are not applicable.appreciation for the support and co-operation

extended whole heartedly by the members. Their

views, suggestions and feedback have gone a long

way in improving, maintaining and enhancing the No transactions in foreign currency relating to either various facilities and activities of the Club. expenditure or earnings have been incurred during the

year. The Committee also wishes to place on record its

appreciation for the dedication and sincerity shown by

the staff in the discharge of their duties. We also The auditors of the company, M/s. M.K.Dandeker &

recognize the support and co-operation of our Co.,Chartered Accountants, retireat theensuing

bankers, our statutory auditors and internal auditors for Annual General Meeting and have confirmed their

their valuable suggestions and inputs and the eligibility and willingness to accept office, if appointed.

members of all sub committees and sponsors. The declaration under Section139 of the Companies

For and on behalf of the Managing CommitteeAct 2013 has been received from them.

Sd/-

Pursuant to Section 134 (5) of the Companies Act,

2013, the directors, to the best of their knowledge and Honorary Secretaryability, confirm that:

Place: Chennaii) in the preparation of the annual financial Date: August 14, 2017statements the applicable accounting standards

20

THE PRESIDENCY CLUB


Report on the Financial Statements

Management's Responsibil ity for the Financial Statements

Opinion

Auditor's Responsibility

and auditing standards and matters which are required

to be included in the audit report under the provisions We have audited the accompanying financial

of the Act and the Rules made thereunder. We statements of The Presidency Club, which comprise

conducted our audit in accordance with the Standards the Balance Sheet as at 31st March, 2017, the on Auditing specified under Section 143 (10) of the Act. Statement of Income and Expenditure, the Cash Flow Those Standards require that we comply with ethical Statement for the year then ended, and a summary of requirements and plan and perform the audit to obtain the significant accounting policies and other

explanatory information. reasonable assurance about whether the financial

statements are free from material mis statement.

An audit involves performing procedures to obtain

audit evidence about the amounts and the disclosures The Club's Managing Committee is responsible for the in the financial statements. The procedures selected matters stated in Section 134 (5) of the Companies Act,

depend on the auditor's judgment, including the 2013 (“the Act”) with respect to the preparation of

assessment of the risks of material misstatement of the these financial statements that give a true and fair view

financial statements, whether due to fraud or error. In of the financial position, financial performance and

making those risk assessments, the auditor considers cash flows of the Club in accordance with the

internal financial control relevant to the Club's accounting principles generally accepted in India, preparation of the financial statements that give a true including the Accounting Standards specified under and fair view in order to design audit procedures that Section 133 of the Act, read with Rule 7 of the are appropriate in the circumstances. Companies (Accounts) Rules, 2014. This responsibility

also includes maintenance of adequate accounting An audit also includes evaluating the appropriateness records in accordance with the provisions of the Act for of the accounting pol icies used and the safeguarding the assets of the Club and for preventing reasonableness of the accounting estimates made by and detecting frauds and other irregularities; selection

the Club's Committee Members, as well as evaluating and application of appropriate accounting policies;

the overall presentation of the financial statements. We making judgments and estimates that are reasonable

believe that the audit evidence we have obtained is and prudent; and design, implementation and

sufficient and appropriate to provide a basis for our maintenance of adequate internal financial controls,

audit opinion on the financial statements.that were operating effectively for ensuring the

accuracy and completeness of the accounting

records, relevant to the preparation and presentation of

In our opinion and to the best of our information and the financial statements that give a true and fair view

and are free from material misstatement, whether due according to the explanations given to us, the aforesaid

to fraud or error. financial statements give the information required by

the Act in the manner so required and give a true and

fair view in conformity with the accounting principles Our responsibility is to express an opinion on these generally accepted in India, of the state of affairs of the financial statements based on our audit. We have taken Club as at 31st March, 2017, its financial performance

into account the provisions of the Act, the accounting and its cash flows for the year ended on that date.

TO THE MEMBERS OF THE PRESIDENCY CLUBINDEPENDENT AUDITOR'S REPORT

THE PRESIDENCY CLUB


Report on Other Legal and Regulatory Requirements

(g) With respect to the other matters to be included

in the Auditor's Report in accordance with

Rule 11 of the Companies (Audit and Auditors) 1) The Club having been incorporated under

Rules, 2014, in our opinion and to the best of our section 25 of the erstwhile Companies Act,

information and according to the explanations 1956, paragraphs 3 and 4 of the Companies

given to us:(Auditor's Report) Order, 2016 issued by the

i. The Club does not have any pending Central Government of India in terms of sub-litigations which would impact its financial section (11) of Section 143 of the Companies position.Act, 2013, are not applicable in view of the

exemption provided as per sub-clause iii of ii. The Club did not have any long-term

clause (2) paragraph 1 of the said Order; contracts including derivative contracts for

which there were an ymaterial foreseeable 2) As required by Section 143 (3) of the Act, we report

losses.that:

iii. There were no amounts which were required (a) We have sought and obtained all the information

to be transferred to the Investor Education and explanations which to the best of our

and Protection Fund by the Club.knowledge and belief were necessary for the

iv. The Club has provided requisite disclosures purposes of our audit.

in its financial statements as to holdings as (b) In our opinion, proper books of account as well as dealings in Specified Bank Notes

required by law have been kept by the Club so during the period from 8th November 2016 to far as it appears from our examination of those 30th December 2016 and these are in books. accordance with the books of accounts

maintained by the Club. Refer Note 33 to the (c) The Balance Sheet, the Statement of Income financial statements.and Expenditure, and the Cash Flow Statement

dealt with by this Report are in agreement with

the books of account.

(d) In our opinion, the aforesaid financial statements

comply with the Accounting Standards specified

under Section 133 of the Act, read with Rule 7 of

the Companies (Accounts)Rules, 2014.

(e) On the basis of the written representations

received from the Committee Members as on

31st March, 2017taken on record by the

Managing Committee, none of the Committee

Members is disqualified as on31st March, 2017

from being appointed as a Committee Member

in terms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal

financial controls over financial reporting of the

Company and the operating effectiveness of

such controls, refer to our separate report in

“Annexure A”.

For M.K.Dandeker & Co.,(ICAI Regn. No.000679S)

-sd-

S.Poosaidurai

Partner Chartered Accountants

Membership No.223754Date: July17, 2017

Place: Chennai

THE PRESIDENCY CLUB


Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

Financial Controls and, both issued by the Institute of

Chartered Accountants of India. Those Standards and

the Guidance Note require that we comply with ethical

requirements and plan and perform the audit to obtain We have audited the internal financial controls over reasonable assurance about whether adequate financial reporting of The Presidency Club as of March internal financial controls over financial reporting was 31, 2017 in conjunction with our audit of the financial established and maintained and if such controls statements of the Club for the year ended on that date. operated effectively in all material respects.

Our audit involves performing procedures to obtain

audit evidence about the adequacy of the internal

financial controls system over financial reporting and The Club's management is responsible for establishing their operating effectiveness. Our audit of internal and maintaining internal financial controls based on the financial controls over financial reporting included internal control over financial reporting criteria obtaining an understanding of internal financial controls established by the Club considering the essential over financial reporting, assessing the risk that a components of internal control stated in the Guidance material weakness exists, and testing and evaluating Note on Audit of Internal Financial Controls over the design and operating effectiveness of internal Financial Reporting issued by the Institute of Chartered control based on the assessed risk. The procedures Accountants of India (the “Guidance Note”). These selected depend on the auditor's judgement, including responsibilities include the design, implementation and the assessment of the risks of material misstatement of maintenance of adequate internal financial controls the financial statements, whether due to fraud or error.that were operating effectively for ensuring the orderly

We believe that the audit evidence we have obtained is and efficient conduct of its business, including sufficient and appropriate to provide a basis for our adherence to club's policies, the safeguarding of its audit opinion on the Club's internal financial controls assets, the prevention and detection of frauds and system over financial reporting.errors, the accuracy and completeness of the

accounting records, and the timely preparation of

reliable financial information, as required under the

Companies Act, 2013.

A Club's internal financial control over financial

reporting is a process designed to provide reasonable

Our responsibility is to express an opinion on the Club's assurance regarding the reliability of financial reporting

internal financial controls over financial reporting based and the preparation of financial statements for external

on our audit. We conducted our audit in accordance purposes in accordance with generally accepted

with the Guidance Note and the Standards on Auditing, accounting principles. A club's internal financial control

issued by ICAI and deemed to be prescribed under over financial reporting includes those policies and

section 143 (10) of the Companies Act, 2013, to the procedures that (1) pertain to the maintenance of

extent applicable to an audit of internal financial records that, in reasonable detail, accurately and fairly

controls, both applicable to an audit of Internal reflect the transactions and dispositions of the assets

Management's Responsibility for Internal Financial Controls

Meaning of Internal Financial Controls over Financial Reporting

Auditors' Responsibility

(REFERRED TO IN OUR REPORT OF EVEN DATE)ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

THE PRESIDENCY CLUB


of the company; (2) provide reasonable assurance that

transactions are recorded as necessary to permit In our opinion, the Club has, in all material respects, an preparation of financial statements in accordance with adequate internal financial controls system over generally accepted accounting principles, and that financial reporting and such internal financial controls receipts and expenditures of the company are being over financial reporting were operating effectively as at made only in accordance with authorisations of March 31, 2017, based on the internal control over management of the club; and (3) provide reasonable financial reporting criteria established by the Club assurance regarding prevention or timely detection of considering the essential components of internal un authorised acquisition, use, or disposition of the control stated in the Guidance Note on Audit of Internal club's assets that could have a material effect on the Financial Controls Over Financial Reporting issued by financial statements.the Institute of Chartered Accountants of India.

Because of the inherent limitations of internal financial

controls over financial reporting, including the

possibility of collusion or improper management

override of controls, material misstatements due to

error or fraud may occur and not be detected. Also,

projections of any evaluation of the internal financial

controls over financial reporting to future periods are

subject to the risk that the internal financial control over

financial reporting may become inadequate because of

changes in conditions, or that the degree of

compliance with the policies or procedures may

deteriorate.

Opinion

Inherent Limitations of Internal Financial Controls over Financial Reporting

For M.K.Dandeker & Co.,(ICAI Regn. No.000679S)

-sd-

S.Poosaidurai

Partner Chartered Accountants

Membership No.223754Date: July17, 2017

Place: Chennai

FINANCIAL REPORTS2016 - 17

THE PRESIDENCY CLUB

THE PRESIDENCY CLUB


Particulars Note No. As at March 31, 2017 As at March 31, 2016 In Rs. In Rs

(a) Capital Fund 1 22,64,64,511 20,12,58,511

(b) Other Funds 2 23,47,887 22,61,147

(c) Reserves and Surplus 3 (10,55,98,434) (10,39,78,446)

(a) Other Long term liabilities 4 63,35,000 84,96,874

(a) Short-term borrowings 5 62,05,567 21,30,532

(b) Trade payables

i) Total Outstanding dues of Micro and Small Enterprises - -

ii) Total Outstanding dues of Creditors other than 50,58,751 53,86,452

Micro and Small Enterprises

(c) Other current liabilities 6 1,32,59,117 1,50,46,278

(d) Short-term provisions 7 28,17,614 38,95,637

15,68,90,013 13,44,96,984

(a) Fixed assets

(i) Tangible assets 8 (a) 2,57,47,499 2,45,66,275

(ii) Intangible assets 8 (b) 30,261 97,863

(b) Long term loans and advances 9 31,90,632 25,43,151

(c) Other Non Current Assets 10 5,90,350 5,84,390

(a) Inventories 11 25,47,897 18,00,097

(b) Members' Receivables 12 53,73,131 63,69,044

(c) Cash and Cash equivalents 13 11,25,11,182 9,19,84,019

(d) Short-term loans and advances 14 62,69,077 44,50,391

(e) Other current assets 15 6,29,984 21,01,753

15,68,90,013 13,44,96,984

Notes forming part of financial statements 1-36

I. EQUITY AND LIABILITIES

II. ASSETS

(1) Members' Funds

(2)Non-Current Liabilities

(3) Current Liabilities

Total

(1) Non-current assets

(2) Current assets

Total

26

BALANCE SHEET as at March 31, 2017

As per our report of even date attachedFor M.K. Dandeker & Co.(Firm Regn. No. 000679S)

S. Poosaidurai Partner Chartered Accountant Membership No.:223754

Place: Chennai Date: July 17, 2017

Ramesh Jagtiani President

Eswaran Annamalai Honorary Secretary

Managing Committee

Ranjit Jacob Immediate PastPresident

Committee Members

Chander P. Vice- President

Srinivasan T. K. Honorary Treasurer

Chari S. RameshChirag BataviaElangovan B.Hiranand M.Murali Annamalai

Dr. Ramachandran S.Sabari Raja R.Sanjai ShankarDr. Shivaram Selvakkumar K.Sundararaman P.

THE PRESIDENCY CLUB


Particulars Note No. As at March 31, 2017 As at March 31, 2016 In Rs. In Rs

Income from Club Facilities 16 7,90,01,678 7,20,67,185

Other Operating Income 17 5,58,66,495 3,91,07,374

Interest Income 18 76,12,532 80,28,121

Other Income 19 32,30,896 28,27,085

14,57,11,601 12,20,29,765

Purchase of traded goods 20 3,67,60,297 3,07,74,990

(Increase) / Decrease in inventories of traded goods (7,47,800) 13,95,419

Employee benefit expenses 21 6,42,50,301 5,62,12,167

Finance cost 22 3,43,754 2,06,138

Depreciation 8 39,73,537 36,43,407

Other expenses 23 4,05,42,736 3,47,10,298

14,51,22,824 12,69,42,420

5,88,777 (49,12,655)

- Current tax expense 22,08,765 23,50,000

22,08,765 23,50,000

(16,19,988) (72,62,655)


Income:

Expenses:

Excess of Income over Expenditure before Tax (I-II)

Excess of Income over Expenditure forthe year transferred to Capital Fund

Total Income (I)

Total Expenses (II)

Tax Expenses:

Total Tax Expense

Statement of Income and Expenditure for the year ended March 31, 2017






Managing Committee

Ranjit Jacob Immediate PastPresident

Committee Members





27

THE PRESIDENCY CLUB


Description As at March 31, 2017 As at March 31, 2016 In Rs. In Rs

Excess of Income over Expenditure before tax 5,88,777 (49,12,655)

Depreciation 39,73,537 36,43,407

Finance Cost 3,43,754 2,06,138

Interest Income (76,12,532) (80,28,121)

Loss / (Profit) on sale of Assets - (73,904)

(27,06,464) (91,65,135)

Trade Payables (3,27,701) 8,22,535

Other Current Liabilities (17,87,161) (10,58,905)

Other Long Term Liabilities (21,61,874) 5,11,496

Trade Receivables 9,95,914 1,95,806

Long Term Loans & Advances (6,47,481) 7,96,553

Short term loans and advances (18,18,687) (5,88,195)

Other Current Assets 14,71,770 (4,76,911)

Inventories (7,47,800) 13,95,419

Other non current Assets (5,960) (5,84,390)

Cash Generated from operating activities (77,35,444) (81,51,726)

Income Tax Paid (32,86,787) 3,19,938

(1,10,22,231) (78,31,788)

Purchase of Fixed Assets (50,87,159) (47,10,066)

Interest Income 76,12,532 80,28,121

Proceeds from Sale of Assets - 1,47,100

25,25,373 34,65,155

A. CASH FLOW FROM OPERATING ACTIVITIES

B. CASH FLOW FROM INVESTING ACTIVITIES

Adjustments for :

Operating Profit before Working Capital Changes

Adjustments for increase/(Decrease) in Working Capital Changes:

Net Cash Flow from Operating Activities (A)

Net Cash used in Investing Activities (B)

CASH FLOW STATEMENT for the year ended March 31, 2017

THE PRESIDENCY CLUB


Description As at March 31, 2017 As at March 31, 2016 In Rs. In Rs

Infusion in Capital Fund 2,52,06,000 95,14,000

Infusion in other Funds 86,740 4,46,551

Proceeds / (Repayment) from Short Term Borrowings 40,75,035 (5,59,987)

Finance Cost (3,43,754) (2,06,138)

2,90,24,021 91,94,426

2,05,27,163 48,27,793

Cash and Cash Equivalents at the beginning of the year 9,19,84,019 8,71,56,226

11,25,11,182 9,19,84,019


C. CASH FLOW FROM FINANCING ACTIVITIES

Net Cash used in Financing Activities (C)

Net Increase/(Decrease) in Cash and Cash Equivalents ( A+B+C)

Cash and Cash Equivalents at the end of the year

CASH FLOW STATEMENT for the year ended March 31, 2017






Managing Committee Ranjit Jacob

Immediate PastPresident

Committee Members





THE PRESIDENCY CLUB


Notes Forming Part of the Financial StatementsParticulars As at March 31, 2017 As at March 31, 2016

In Rs. In Rs

Opening Balance 20,12,58,511 19,17,44,511

Add: Current Year Addition

Entrance Fees 2,49,06,000 91,14,000

Life Membership Subscription 3,00,000 4,00,000

22,64,64,511 20,12,58,511

(Utilised for Capital expenditure of the Club)

Opening Balance 16,09,709 11,52,409

Add: additions during the year 2,45,000 4,57,300

Less: utilised during the year (1,60,000) -

16,94,709 16,09,709

(Utilised for conducting Snooker Tournaments

in the Club)

Opening Balance 6,51,438 6,62,187

Add: additions during the year 9,648 64,673

Less: utilised during the year (7,908) (75,422)

6,53,178 6,51,438

23,47,887 22,61,147

Opening balance (10,39,78,446) (9,67,15,791)

Add: Excess of Expenditure over Income for the year (16,19,988) (72,62,655)

(10,55,98,434) (10,39,78,446)

Members security deposit 15,35,000 27,28,037

Temporary Membership Entrance Fees 48,00,000 57,68,837

63,35,000 84,96,874

Secured, Unguaranteed

Cash Credit - Indian Overseas Bank 62,05,567 21,30,532

(secured by fixed deposits in Indian Overseas Bank)

62,05,567 21,30,532

Note No - 1 Capital Fund

Note No - 2 Other Funds

Note No - 3 Reserves & Surplus

Note No - 4 Other Long Term Liabilities

Note No - 5 Short term borrowings

Closing Balance

a. Project Mobilisation Fund

Closing Balance

b. Ahmed Hussain Memorial Fund

Closing Balance

Closing Balance

THE PRESIDENCY CLUB


Particulars As at March 31, 2017 As at March 31, 2016 In Rs. In Rs

Members credit balance 11,58,441 10,08,953

Statutory liabilities 48,00,101 43,35,467

Temporary membership entrance fees 31,83,336 41,17,837

Members security deposit 23,65,037 12,12,000

Advance subscription from Members 30,607 37,788

Outstanding Liabilities 5,09,269 15,72,464

Gratuity payable 12,12,327 27,61,769

1,32,59,117 1,50,46,278

Provision for Income Tax (net of advance tax) 8,17,614 18,95,636

Provision for Entertainment Tax 20,00,000 20,00,000

28,17,614 38,95,636

Note No - 6 Other Current Liabilities

Note No - 7 Short term Provisions

Notes Forming Part of the Financial Statements

Note No - 8 Fixed Assets

THE PRESIDENCY CLUB



Unsecured, considered good 11,94,248 11,94,248


31,90,632 25,43,151

Term deposits with original maturity of more than 12 months 5,90,350 5,84,390

5,90,350 5,84,390

Liquor 22,34,530 14,95,766

Snack Bar 1,36,210 1,58,284

Cards 85,073 40,403

Provisions 92,084 1,05,644

25,47,897 18,00,097

Outstanding for a period exceeding six months

from the date they are due for payment

- Unsecured, considered good - 15,629

Others 55,19,336 63,53,416

Less : Provision for Doubtful Debts (1,46,205) -

53,73,131 63,69,044

In Current accounts 27,28,318 4,32,351

In Savings accounts 6,06,449 9,84,046

9,96,975 2,58,886

2,07,829 2,04,540

i) Term deposits with original maturity of less than 3 months" 93,70,000 93,27,218

ii) Term deposits with original maturity of more than 3 months

but less than 12 months " 9,86,01,611 8,07,76,978

11,25,11,182 9,19,84,019Note : Of the above Term deposits, Rs.94,40,207 (F.Y. 2015-16: Rs.62,11,670) worth term deposits are given as security towards

cash credit facility from Indian Overseas Bank. Also, Rs.29,59,107 (F.Y. 2015-16: Rs.27,62,900) worth term deposits has been

given as bank guarantee for entertainment tax (Refer Note 30).

Note No - 9 Long term Loans and Advances

Note No - 10 Other Non Current Assets

Note No - 11 Inventories

Note No - 12 Members' Receivables

Note No - 13 Cash & Cash Equivalents

a. Security Deposits

b. Loans to employees

Traded goods:

a. Balances with Banks:

b. Cheques on Hand

c. Cash on Hand

d. Other Bank Balances:

32


THE PRESIDENCY CLUB





Unsecured, considered good 1,18,220 32,256

18,68,554 13,21,632

62,69,077 44,50,391

Interest accrued but not due 3,85,414 19,37,013

Credit card settlement receivable 68,047 10,444

Service tax input credit 1,76,522 1,54,296

6,29,984 21,01,753

Sale of products 5,47,92,880 4,77,02,098

Sale of services 2,42,08,798 2,43,65,087

7,90,01,678 7,20,67,185

Members subscription 1,97,29,412 1,97,47,235

Entrance fees from long term temporary members 65,83,338 61,51,163

Entrance fees from service members 1,65,000 1,20,000

Minimum billing 63,82,968 67,06,394

NR Members' administration charges 7,70,605 8,02,557

Water levy 17,43,980 17,35,370

Library collection 6,23,150 6,19,875

Income from tournaments 11,55,557 14,21,490

Sponsorship received 1,44,000 3,00,000

Entertainment levy 12,45,700 12,40,100

Sports levy 24,92,600 -

Infrastructure development and maintenance collections 1,40,00,000 -

Car rally collections 4,76,800 -

Miscellaneous operating income 3,53,385 2,63,190

5,58,66,495 3,91,07,374

Note No - 14 Short Term Loans and Advances

Note No - 15 Other Current Assets

Note No - 16 Income From Club Facilities

Note No - 17 Other Operating Income

a. Advances for Expenses

b. Loans to Employees

c. Advances to employees

d. Prepaid Expenses


THE PRESIDENCY CLUB



Interest on term deposits 71,48,107 75,42,739

Interest on staff loans 4,64,425 4,85,382

76,12,532 80,28,121

Income from advertisement 1,18,710 34,870

Guest charges 7,03,840 6,65,340

Nominee changing fees 5,70,000 5,70,000

Member reinstatement charges 5,000 35,000

Telephone charges recovered 2,778 9,685

Crystal room cover charges 4,41,980 4,51,260

Late Hour charges 270 2,730

Affiliated club fees 80,450 83,900

Sale of old library books 2,690 3,170

BOB card commission 1,69,711 33,153

Beauty parlour sales 83,024 72,409

Bad debts recovered 9,568 -

Excess provision written back 8,545 1,57,155

Scrap sales 2,62,837 37,643

Sundry creditors written back 8,991 34,675

Valet parking collections 23,150 2,600

Profit on sale of old assets - 1,26,804

Tambola collection 5,84,980 3,41,620

Miscellaneous income 1,54,371 1,65,072

32,30,896 28,27,085

Inventories at the beginning of the year 18,00,097 31,95,516

Inventories at the end of the year 25,47,897 18,00,097

(7,47,800) 13,95,419

Catering 2,14,80,607 1,92,72,605

Bar 1,07,76,400 75,45,858

Snack Bar 43,24,386 37,59,541

Cards 1,78,904 1,96,987

3,67,60,297 3,07,74,990

Note No - 18 Interest Income

Note No - 19 Other Income

Note No - 20

a. (Increase)/Decrease in Inventories - Traded goods

(Increase)/Decrease in Inventories

b. Details of Purchase of traded goods


THE PRESIDENCY CLUB



Salaries, wages & bonus 5,49,20,894 4,74,94,102

Contribution to Provident & other funds 73,54,418 80,10,951

Staff welfare expenses 19,74,990 7,07,114

6,42,50,301 5,62,12,167

Bank interest 3,43,754 1,41,166

Bank guarantee commission - 64,972

3,43,754 2,06,138

Electricity charges 69,99,729 68,59,728

Newspaper & periodicals 1,40,144 1,15,406

Fuel expenses 2,18,140 1,89,172

Water charges 16,94,506 15,29,629

Rates and taxes 3,95,169 13,54,698

Crockery and cutlery 1,46,368 1,10,541

Member Nite expenses 5,17,273 -

Entertainment expenses 17,54,350 13,98,125

General stores consumed 30,81,593 19,98,273

House keeping expenses 11,05,048 9,93,192

Linen 43,682 1,03,750

Liquor license fees 11,28,996 11,13,000

Purchase - others 4,44,676 6,74,662

Purchase- library 95,302 1,02,160

Coaching fees 1,65,400 2,15,500

Professional fees to masseurs 3,63,154 3,90,679

Tournament expenses 13,08,132 9,03,059

Cricket expenses 44,298 23,311

Internet services 2,09,092 -

Laundry charges 4,71,122 3,50,586

Printing & stationery 11,18,483 7,99,846

Telephone expenses 1,90,115 1,52,286

Postages 4,28,088 3,29,206

Kitchen utensils 10,109 34,683

Security charges 13,89,522 8,09,964

Annual maintenance contracts 5,29,584 5,42,209

Note No - 21 Employee Benefit Expenses

Note No - 22 Finance Cost

Note No - 23 Other Expenses


THE PRESIDENCY CLUB



Computer maintenance expenses 2,67,681 1,86,207

Repairs and maintenance :

- building 58,66,799 48,54,886

- electrical fittings 4,79,305 7,39,460

- others 65,09,807 53,80,710

Insurance 2,20,312 1,63,151

Conveyance 79,933 72,684

Internal audit fees 3,60,000 3,00,000

- Statutory audit fees 1,50,000 1,25,000

- Other services 35,000 -

Legal expenses 1,43,500 1,15,000

Professional charges 50,825 90,225

Website expenses 11,100 9,900

Bank charges 56,730 49,293

Tambola expenses 3,92,908 3,58,170

Loss on sale of assets - 52,900

Bad debts - 2,19,309

Provision for Doubtful Debts 1,46,205 -

Car rally expenses 5,59,558 -

Sports carnival 4,87,518 -

Miscellaneous expenses 7,33,479 8,99,738

4,05,42,736 3,47,10,298

Payments to auditor:

36


THE PRESIDENCY CLUB


C ENTRANCE FEES SIGNIFICANT ACCOUNTING POLICIES

Note No.24

A BASIS OF PREPARATION OF FINANCIAL STATEMENTS

D REVENUE RECOGNITION

E FIXED ASSETS

B PRESENTATION OF FINANCIAL STATEMENTS

Entrance Fee and life membership fees of permanent

members is recognized as capital receipt and

accounted for under capital fund. Entrance fee

received from service members is recognized as The financial statements of the Club have been revenue. Entrance fee received from long term prepared in accordance with the Generally temporary members is recognized as revenue Accepted Accounting Principles in India [Indian proportionately over the term of membership. GAAP] to comply with the Accounting Standards

Also, Infrastructure development and maintenance specified under Section 133 of the Companies Act, collections received from permanent members is 2013, read with Rule 7 of the Companies (Accounts) recognized as revenue receipt.Rules, 2014 and the relevant provisions of the

Companies Act, 2013. The financial statements

have been prepared on accrual basis under the Revenue from monthly subscription, sale of liquor, historical cost convention. catering, games and other facilities is recognized net of

The preparation of financial statements requires the taxes on accrual basis on billing of members. Interest

management of the Club to make estimates and income is recognized on accrual basis. Revenue from

assumptions that affect the reported balances of infrastructure development and maintenance

assets and liabilities, revenues and expenses and collections is recognized as and when it is collected

disclosures relating to contingent liabilities. The from the members.

Management believes that the estimates used in

preparation of the financial statements are prudent and

reasonable. Actual results could differ from these Tangible fixed assets are stated at original cost, net of estimates. Any revision to the accounting estimates is tax/duty credits availed if any, less accumulated recognized prospectively in the current and future depreciation and impairment losses recognized where periods. Estimates include provisions for employee necessary. Costs include all expenses incurred to bring benefit plans and provision for income taxes.the assets to its present location and condition.

Subsequent expenditure relating to fixed assets is

The Balance Sheet and the Statement of Profit and capitalized only if such expenditure results in an

Loss are prepared and presented in the format increase in the future benefits from such asset beyond

prescribed in Schedule III to the Companies Act, 2013 its previously assessed standard of performance.

(“the Act”). The Cash Flow Statement has been Fixed assets retired from active use and held for sale

prepared and presented as per the requirements of are stated at the lower of their net book value and net

Companies Act, 2013. The disclosure requirements realizable value and are disclosed separately in the

with respect to items in the Balance Sheet and Balance Sheet.

Statement of Profit and Loss, as prescribed in the

Schedule III to the Act, are presented by way of notes Intangible fixed assets are recorded at the forming part of accounts along with the other notes consideration paid for acquisition and are carried at required to be disclosed under the notified Accounting cost less accumulated amortization and Impairment Standards. Losses if any.

NOTES FORMING PART OF FINANCIAL STATEMENTS

THE PRESIDENCY CLUB


Capital work-in-progress: J EMPLOYEE BENEFITS

F DEPRECIATION and AMORTIZATION

G INVENTORIES

H CASH FLOW STATEMENT

I BORROWING COSTS

Projects under which assets are not ready for their • Defined Contribution Planintended use and other capital work-in-progress are

Contributions to Employee's Provident Fund and carried at cost, comprising direct cost, related

Pension Fund are deposited with the Government incidental expenses and attributable interest.

and the Company's contribution to the funds is

charged to revenue.

• Defined Benefit PlanDepreciation on assets has been provided on written

down value method based on the useful life specified in The Club makes annual contribution to a Gratuity

the Schedule II of the Companies Act, 2013. fund which is administered by trustees and

Depreciation on additions/ deductions is calculated managed by the LIC of India. The Company

pro-rata from/ to the date of additions/ deductions. accounts its liability for future gratuity benefits

based on actuarial valuation as at the Balance Sheet Intangible assets namely specialized software is

date, determined every year using the projected unit amortized over a period of three years.

credit method. Obligation under the defined benefit

plan is measured at the present value of estimated

future cash flows using a discounted rate that is Inventories are valued at lower of cost and net determined by reference to prevailing market yields realizable value. Cost is determined on First in First out at the Balance Sheet date on Indian Government (FIFO) basis. Cost includes freight, taxes, duties and Bonds where the currency and terms of the Indian other charges incurred for bringing the goods to the Government Bonds are consistent with the present location and condition and are net of VAT currency and estimated term of the defined benefit credit, where applicable.obligation. Actuarial gains / losses are recognized

in the Statement of Profit and Loss in the year in

which they arise.Cash flows are reported using the indirect method,

whereby net profit/ (loss) before tax is adjusted for the • Compensated Absenceseffects of transactions of a non-cash nature and any

The liability for long term compensated absences deferrals or accruals of past or future cash receipts or carried forward on the balance sheet date is payments. The cash flows from regular revenue provided for based on an actuarial valuation done generating, investing and financing activities of the by an independent actuary using the projected unit Club are segregated based on available information credit method done at the end of each accounting including taxes paid relating to these activities.year. Short term compensated absences is

recognized based on the eligible leave credit on the

balance sheet date, and the estimated cost is Borrowing costs attributable to acquisition or

based on the terms of the employment contract.construction of qualifying assets are capitalized as part

of the cost of such assets. Qualifying assets are those • Other Employee Benefitsthat take substantial time to be ready for intended use.

Other Employee Benefits are estimated based on Other borrowing costs are expensed.the terms of the employment contract.

THE PRESIDENCY CLUB


K TAXES ON INCOME Note No.28 - BANK BALANCES

L PROVISIONS, CONTINGENT LIABILITIES Note No.29 - The information required to be AND CONTINGENT ASSETS disclosed under the Micro, Small and Medium

Enterprises Development Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the Club. There has been no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

Note No. Note No.30 - STATUTORY LIABILITIES

Note No.26 - SECURED LOANS

Note No.27 - MEMBERS' RECEIVABLES

Current Tax is the amount of tax payable on the Interest All operative accounts are held with Indian Overseas Income for the year and is determined in accordance Bank. The term deposits of the Club are held with with the provisions of the Income Tax Act, 1961. Indian Overseas Bank, ICICI Bank and Deutsche Bank.

Provisions involving substantial degree of

estimation in measurement are recognized when there

is a present obligation as a result of past events and it is

probable that there will be an outflow of resources.

Contingent liabilities are not recognized but are

disclosed in the notes. Contingent assets are neither

recognized nor disclosed in the financial statements.

Capital fund comprises Entrance Fees and life

membership fees received from permanent members Notice issued by the Sales Tax department in 1997-98

while Entrance fees received from service members is disputed by the Club. A writ petition was filed before

and long term temporary members are recognized as the High Court in the year 2002-03. Finally, the High

revenue in line with the accounting policy.Court gave an order in favour of the Club. However, the

department has gone on Appeal to the division bench

of the High Court against the order.Cash Credit facility obtained from bank to meet

working capital requirements are secured by pledge of

certain fixed deposit held with banks.For the Assessment year 2006-07, Assessment has

been completed and an appeal filed by the Club before

the Madras High Court is pending. The department had

won the case in the Income Tax Appellate Tribunal with

regard to tax on interest income and Corporate

Entrance Fees earned by the Club on the grounds that

the same is not covered by the principle of mutuality.

However, other Clubs in India had lost the case with

regard to interest income filed with the Supreme Court.

Hence, the Club has paid the tax on Interest Income for

the Assessment Year 2006-07 and for the financial

years 2011-12 onwards.

25 - CAPITAL FUND

LUXURY TAX

INCOME TAX

Particulars No. No.` `

2016 - 17 2015 - 16

Outstanding

for more than

2 months

Aggregate of

outstanding of

members in

excess of

Rs.5,000

224

60

190

76

3,48,133

6,07,179

3,18,599

6,04,509

THE PRESIDENCY CLUB


ENTERTAINMENT TAX

SERVICE TAX

(Appeals). In response to the same, an order-in appeal

was passed by the Commissioner (Appeals-I) dated Entertainment Tax was levied by the state 31.03.2017 stating that the disputed amount of entertainment department against entrance fee, Rs.8,80,424 shall be refunded to the Club after monthly subscription and entertainment levy collection adjusting the proportionate CENVAT Credit involved in for the period 2006-07 and 2007-08 against sports Accommodation service amounting to Rs.1,05,541 activity like billiards, shuttle, swimming pool and along with interest as may be specified.squash usages during August 2011 for Rs.29,82,469.

Out of which Rs.9,82,469 was paid during December

2012. But, the Club had appealed to the Addl.

Commissioner of Entertainment Tax for removal of

Entertainment levy against the Club. The provision for

the remaining Rs.20,00,000 is carried in our books.

Based on our appeal, a revised order was issued by the

Department in June 2016 stating that the Department

has accepted our revision petitions and has withdrawn (Exclusive of Service Tax)

the demand. Hence, the Club has filed a petition based

on the revised order for the refund of Tax amount paid

in December 2012.

As per the revised petition dated 20.04.2017, bank

guarantee amounting to Rs 20,00,000 has been

released, in favor of the Club, on account of the

aforementioned Entertainment Tax arrears. However,

the provision made for the same is still carried in our

books as on 31.03.2017. Furthermore, the

Department has informed the Club that the tax

payment of Rs.9,82,469 in December 2012 shall be

adjusted in subsequent tax payments.

During June 2013, the department had issued a show

cause notice for non-payment of service tax under

renting of immovable property, restaurant service at

Bar and Accommodation service. The demand raised

for the same was Rs.54,68,801. The club had disputed

the demand in the various replies sent to the

Department. Finally, a revised demand order for

Rs.8,80,424 plus penalty of Rs.98,042 was passed by

the Department in January 2016.

Based on the revised order, the Club has paid the

demand of Rs.8,80,424 during February 2016 and has

appealed against the order with the Commissioner

Note No.31 - foreign c u r r e n c y r e l a t i n g t o e i t h e r e x p e n d i t u r e o r e a r n i n g s h av e b e e n undertaken during the year. (Previous Year: Rs. Nil)

Note No.32 - PAYMENTS TO AUDITOR

Note No.33 - Details of Specified Bank Notes held and transacted during the period 08-Nov-2016 to 30-Dec-2016 is provided in the table below:

No imports and no transactions in

Particulars

Opening cash

in hand as on

08-Nov-2016

(+) Permitted

receipts

(-) Permitted

payments

(-) Amount

deposited in

Banks

Closing cash in hand as on 30-Dec-2016

SBNs TotalOther

DenominationNotes

7,500

-

7,500

-

-

1,31,272

35,64,653

1,03,139

30,49,463

1,38,772

35,64,653

1,10,639

30,49,463

5,43,323

THE PRESIDENCY CLUB


Note No. 34 - Estimated amount of contracts Note No.36 - Previous year figures have remaining to be executed on capitala c c o u n t been recasted/restated to conform to the and not provided for net of advances is classification of the current year.

Note No. 35 - CONTINGENT LIABILITIES NOT PROVIDED FOR:






Managing Committee Ranjit Jacob

Immediate PastPresident

Committee Members





2016 - 17 2015 - 16

NIL NIL

Particulars As at 31st March, 2017

`

Liabi l i ty towards

disputed Income

Tax with regard to

Corporate Entrance

f e e s f o r t h e

assessment year

2006-07.

10,60,290 10,60,290

As at 31st March, 2016

`

THE PRESIDENCY CLUB


Dep

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Dis

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com

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the presidency clubthepresidencyclub.com/pc-annual-report2016-17.pdfmr. b. elangovan mr. m. hiranand...

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