Qaiser Mohammad Ali
While Bishan Singh Bedi and Kirti Azad are raising issues of alleged DDCA corruption running into crores of rupees, the association had surprisingly suffered loses of Rs.2.11 crore after hosting international matches, including the World Cup games, in 2011.
In its 2011-12 balance sheet, DDCA has shown that it suffered a loss of Rs 1.31 crore while hosting India-West Indies Test match (November 2011), of Rs 11.15 lakh in the India-England One-day International (October 2011), and of Rs 69.23 lakh in staging four matches of the 2011 World Cup.
The total loss from the three events comes to Rs 2.11 crore.
All three ‘losses’ are strange, and the one from staging World Cup matches takes the cake. The International Cricket Council (ICC) had, according to the BCCI balance sheet 2011-12, given the DDCA $3 million/Rs.13.32 crore (at a rate of $750,000/Rs 3.33 crore per match) for hosting those four matches (click on accompanying photo of the BCCI annual report 2011-12 to enlarge).
DDCA treasurer Narinder Batra (2007-08 to 2012-13) had said at the time that the BCCI had not given the entire amount (of Rs 13.32 crore) for hosting World Cup matches and that was why the amount reflected in the association’s 2011-12 balance sheet was only Rs.8.21 crore.
However, not only in the DDCA balance sheet of 2011-12 but also that of the 2012-13, there was no change in all the figures pertaining to the 2011 World Cup – income of Rs 8.21 crore (actual Rs 82,105,621) mentioned under ‘Other Non-Operating Income’ and the loss of Rs 69.23 lakh (actual Rs 69,23,743.48) under ‘Profit/Loss from Discontinuing Operations’. (Click on accompanying photos of the relevant pages of DDCA balance sheet of 2011-12 and 2012-13 to enlarge.)
Although the BCCI, as per its Annual Report 2011-12, had given the DDCA a total of Rs.13.28 crore for organising four 2011 World Cup matches, Batra had at the time said that the “DDCA will get Rs 9.5 crore for hosting the matches, but we haven’t received the entire money so far”.
Batra had also said that when the full and final amount would arrive the association would show “profit of Rs.8.90 crore”. The profit never happened.
If the money had indeed come later, it should have reflected in the DDCA’s balance sheet of 2012-13. But it did not. In both DDCA balance sheets, of 2011-12 and 2012-13, the amount received shown is Rs.8.21 crore under ‘Other Non-Operating Income’.
Batra had, at the time, gone on to say, “While the balance sheet shows a deficit, the DDCA would eventually make a profit of Rs.8.90 crore when we receive the entire amount due to us.”
The reality, however, is that the DDCA has shown a loss of Rs.69.23 lakh by hosting the four 2011 World Cup matches.
Surprisingly, the DDCA has provided no expenditure details of the World Cup matches, in its balance sheets of 2011-12 as well as 2012-13.
This despite that fact that the DDCA is bound to disclose details of ‘Discontinuing Operations’ under Accounting Standard (AS) 24, issued by the Council of the Institute of Chartered Accountants of India.
The relevant Point 18 of Accounting Standard 24 rule pertaining to ‘Discontinuing Operations’ reads: “An enterprise should apply the principles of recognition and measurement that are set out in other Accounting Standards for the purpose of deciding as to when and how to recognise and measure the changes in assets and liabilities and the revenue, expenses, gains, losses and cash flows relating to a discontinuing operation.”
“The DDCA has clearly not followed this stipulation of the government,” said a chartered accountant.
While the ICC provides money for hosting World Cup matches, the BCCI gives a certain amount to its affiliated state associations for staging international matches, be they Tests, ODIs, or T20 Internationals. Apart from that, host associations are gain from revenue earned through in-stadia advertising and ticket sales.
But very few people are aware of these facts. It is alleged by many people with the DDCA that some officials take advantage of this little known fact and manipulate the figures.
For example, officials presently in control of the DDCA have so far not informed retired justice Mukul Mudgal, appointed match observer by the Delhi High Court, about how much money the BCCI has given to the association, if any, for hosting this month’s India-South Africa Test at the Ferozeshah Kotla.
Here we are not referring to the Rs 2.81 crore to the DDCA for paying fine to civic bodies to get temporary permission to stage the India-South Africa Test, besides the staff salary etc., as the association if currently financially crippled. This amount was transferred to the DDCA on 20 November as “advance against amount due to association out of media rights income for 2013-14” and the BCCI had announced it on its website.
After the ODI against England in 2011, the DDCA hosted two more ODIs — against Pakistan in January 2013 and against West Indies in October 2014 – but the income/expenditure figures of these matches are not yet available. This is so because the DDCA has not produced the balance sheets of 2013-14 as well as 2014-15, largely due to the alleged financial irregularities that have taken place in this period, and after Bishan Singh Bedi and Kirti Azad raised this issue in and outside Parliament.
After the Test against West Indies in 2011, the DDCA hosted two more Tests — against Australia in March 2013 and against South Africa this month – but the income/expenditure figures of these matches also are not available for the same reason mentioned above.
Due to the non-submission of these two balance sheets, the BCCI has held back the DDCA’s legitimate share which it is entitled to as the Board’s affiliated association.
It was reported recently that DDCA vice-president CK Khanna had handed over the 2013-14 balance sheet to the BCCI. But DDCA treasurer Ravinder Manchanda said he later sent it to the Board by courier – once again a case of one official contradicting the other.
Interestingly, some of the DDCA’s executive committee members have raised serious questions over the 2013-14 balance sheet, claiming that they had neither seen it nor signed it, and that without their signatures it would not be considered a legal document.
Meanwhile, the BCCI is getting the balance sheets of all its affiliated associations audited by PricewaterhouseCoopers, the newly appointed company to streamline all its financial dealing. And the DDCA would be wary, going by the charges Kirti Azad has levelled against the association’s finances.