The National Capital witnessed recently the dirty politics in the Press Club of India (PCI), involving even Sonia Gandhi, the Congress supremo, who unceremoniously returned the honourary membership of the Club. How the elected body was illegally expelled and came back after the intervention of a court is now well known.

However, after illegally occupying the power in the club politics, the interim committee did one important thing, that was to get the accounts of the club examined.

It may be mentioned here that the improperly called and conducted EGM had not only expelled the elected committee but it had also appointed an interim committee headed by P P Bala Chandran.

According to the interim audit report submitted to the Club by Rajiv S Agarwal & Company, Chartered Accountants, the books of accounts of the club were not completed after 31st of March, 2005 as per statutory requirements, no trial balance has been prepared after March 2006, balancing of ledger books were not found and even cash balance in hand and bank were not accounted for as the absence of up to date entries in the day book of the current year was not availabe since it was found pending since June 2009.

Various reconciliation with banks, credit card receivable and with major vendors has not been done for a long time, the report observed.

No separate account has been kept for income received from persons other than members, although it should be kept as per the recent amendment in the Income Tax Act 1961. Club is not even maintaining the fixed asset register and quantitative records of various types of fixed assets purchased.

It is another matter that the same was recommended by the statutory Auditors in their report ended March 2005.

Even stock records has not been maintained in proper manner and no physical stock verification has been carried out on regular intervals, and therefore, the auditor was unable to comment on shortage, pilferage and theft of goods.

No updated list of members was available with the accounts for verification and therefore we are unable to verify the receipts of Admission fees and renewal fees of members Admitted during the year and the collection of fees from the old members, the report observed. It also mentioned that no audit had been carried out after March 2005.

The club is not even maintaining its statutory liabilities and obligations. Deduction at source (TDS) deducted from various parties has not been deposited since the financial year 2004-05. No income tax return has been filed after March 2005 and no TDS return has been filed so far. Payments of Provident Fund and ESI are not up to date. Outstanding electricity bill is Rs 4.4 lakhs and water bills has climber to the tune of Rs 35,000.

The report has also mentioned financial irregularities and misappropriation of fund. Unauthenticated bills were printed on letterheads and issued, which on cross examination, were not found mentioned with the accounts department. Excess payments were made to some parties and written of some amount as bad debts. Sales proceeds were not up to date and were not deposited with the cashier for the period after May 1st 2008 for a long time. It was deposited only last month.

The audit report mentions of many other violation of the laws of the land.#

See the full report