PANAJI
Goa Tourism Development Corporation has issued a rejoinder to the article that appeared in the February 22 edition of The Goan Everyday titled ‘Auditor picks holes in GTDC’s financials for 2016-17’.
In the rejoinder, Nilesh Cabral, Chairman, GTDC, has said that GTDC does not agree with the adverse opinion of one of the auditors.
Cabral said, “The GTDC is having adequate and effective internal financial controls. The accounts of GTDC are governed by internal, statutory, taxt, government accounts, government performance and government review audits. There is sufficient internal control as required under the Company’s Act. The GTDC does not agree with the adverse opinion of one of the auditors.”
The article, which was based on auditors’ report, had mentioned that the GTDC has not maintained adequate funds for its gratuity liability as on March 31, 2017.
To this, Cabral replied, “GTDC is depositing the gratuity premium with Life Insurance Corporation (LIC). During the last three years, 62 employees retired (average 21 employees per year) and GTDC has settled claim of Rs 3.46 crore (average Rs 1.15 crore per year). After settling the claim, the balance with LIC is Rs 2.51 crore which is sufficient for another three years. The GTDC is paying a premium of Rs 50-60 lakh to LIC per year. This means there is no problem for another five to six years.”
Based on the auditors’ report, the article had mentioned that GTDC had accounted for profit on a certain transaction earlier than it should have.
On this, Cabral replied, “As far as sale of the old Head Office is concerned, all the procedures such as tendering, finalization of tender, issue of letter to the purchaser was carried out during the year 2015-16. The accounting was done correctly for the year 2015-16 and for the year 2016-17. GTDC does not agree with the auditor’s comment on this.”
“The Board in its 145th meeting held on 6-1-2016 accepted the highest bid and accordingly government approval was obtained on 3-2-2016 to sell the premises. Letter of Intent was issued to the purchaser and agreement for sale was executed on 28-3-2016. Since all the transactions have appeared during the financial year 2015-16, the sale of flats has been accounted during the year 2015-16.”
