Newsletter sent by the RWITC Committee to members

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Newsletter sent by the RWITC Committee to members

Posted on - 21 Apr 2014

15^th April 2014

To:

All Members,

Royal Western India Turf Club, Ltd.

Dear Members,

On behalf of the Committee, I have pleasure in addressing this Newsletter to you to keep you informed of the Club’s significant highlights that deserve mention:

1. Working of the Club:

The estimated financial results for the year ending June 30^th 2014 show a cash loss of about Rs.500 lacs which is a dramatic negative turnaround from a cash profit of Rs.1,110 lacs for year ended June 2013. The major reasons for the deviation are summarized as under:

Increase in Expenses:

Increase in stakes / benefit to owners Rs.831 lacs

Repairs to buildings / stables Rs.225 lacs

Racing licence and other taxes Rs.122 lacs

Legal and professional fees Rs.107 lacs

Analysis fees Rs. 45 lacs

Decrease in Revenue:

Revenue from hire of lawns Rs.530 lacs

Reduction in profit on sale of investments Rs.265 lacs

Entries / registration of horses Rs. 70 lacs

Income from Mini Club / Health Club Rs. 60 lacs

Box and gate receipts Rs. 57 lacs

Decrease in totalizators commission / FOB Rs. 50 lacs

Interest on fixed deposits Rs. 36 lacs

These were partly offset by increase in revenue under other miscellaneous heads.

Inspite of these losses, the reserves of the Club stand at a reasonably healthy Rs.126 crores.

2. 130 Years Anniversary of Mahalakshmi Race Course:

The RWITC Ltd. celebrated a historic event, the 130^th Anniversary of the Mahalakshmi Race Course. India’s ace lensman, Padmashri Raghu Rai chronicled the famous race course through his select images, shot exclusively for the Club. Raghu Rai, has served on the Jury of the World Press Photo on several occasions, as well as on the UNESCO Photo Contest. We hope to take this forward by the publishing of a unique coffee table book.

To celebrate this Anniversary, an entertainment programme and dinner was held on the evening of 29^th March at the Members Pavilion, under the Air-conditioned Tent, which attracted an audience of about 1,000. The following race day, sponsored by Tata Housing, saw a significant spurt in attendance and betting went up by nearly 100%. This historic landmark was well covered by the leading newspapers.

3. The Season Ending TATA Housing Turf Championship Awards:

In yet another innovative social endeavour, the RWITC in association with TATA Housing, will host a glittering Season ending Awards function to honour racing excellence for the year 2012-13. The evening will be in aide of Guru Pasha’s Ability Unlimited Foundation. The event is to be held at the luxury Palladium Hotel. TATA Housing has kindly stepped in as the contributing sponsor and The Palladium as our hospitality partner. The evening will be an invitee only black tie event for owners. The event will be an Oscar style ceremony, as a carefully selected jury will pick winners from a shortlist which is collated by a unique points formula.

4. Green Circle – an RWITC Foundation:

The Club recently innovated by establishing an independent entity named “Green Circle” for carrying out various sustainability activities such as Solar Energy, conversion of waste to energy, establishment of nature trails as a precursor to bring our non-racing activities under one banner.

The Foundation was jointly inaugurated by Dr. Farooq Abdullah, Union Minister for New and Renewable Energy and Noble Laureate Dr. Rajendra Pachauri, Director General of The Energy and Resources Institute (TERI) on 14^th February 2014 in the Paddock.

TERI will be the knowledge partner to execute the projects which includes an energy audit for the RWITC.

5. TDS on Stake Money:

The Club has received a show cause notice for financial years 2007-08 to 2011-12 to showcause why the Club is not deducting Tax at Source before disbursing Stake money to owners. Subsequently, a demand notice aggregating to Rs. 11.76 crores has also been received by the Club for the financial year 2011-12. The Club is taking appropriate measures to file an appeal and also file for a stay on this demand.

We have been advised that once the Club can prove that the owners have been filing their past income tax returns regularly and showing racing income in their Returns, the Income Tax authorities will reduce the Club’s retrospective burden on this demand.

The Club has sent letters to owners requesting for certificates from their Chartered Accountants in the prescribed format. Owners have been requested to appreciate the seriousness of the tax demand and take immediate steps to send the requisite certificates. For the future, stake money will have to be withheld, from such owners who fail to send the documents for the past years.

6. Increase in Property Tax at Pune Race Course:

The Club has received a notice from the Pune Cantonment Board (PCB) for Triennial Revision of Assessment for the period 1^st April 2011 to 31^st March, 2014, for all properties at the Pune Race Course including the Turf Club House. As per these notices, the property tax has increased from Rs.7.48 lacs to Rs.189.04 lacs, which was strongly contested by the Club and the demand has been reduced to Rs. 47.52 lacs. The Club is contesting this issue further.

7. Pune Race Course – Local Military Authority (LMA):

The Club desires to maintain communication with the LMA, and The Defense Estate Officer, at Pune on various issues between the RWITC and the LMA and with the objective of ensuring the smooth conduct of racing at the Pune Race Course. We wish to ensure the centre of the Race Course is kept open and used only for racing and equestrian activities, with no hindrance or impediments.

The renovation and upgrading of facilities at the Turf Club House, Pune, has been held up owing to notices received from the PCB, and these matters have been taken up with the President of the PCB.

8. Lease of the Mahalakshmi Race Course:

A meeting was held recently by the Chairman with the Chief Minister, Government of Maharashtra, who has promised to look into the renewal of the lease of the Mumbai Race Course as soon as the general elections are over. The discussions were positive.

9. Turf Authorities of India (TAI):

As the RWITC will host the Indian Turf Invitation Cup next year, the Chairman, RWITC has taken over as the Chairman of the TAI and the Secretary, RWITC, as Secretary-General of the TAI till early March 2015. We hope to take a lead to resolve matters concerning the racing industry on an all India basis.

10. The 36^th Asian Racing Conference:

The RWITC is privileged to have won the rights to host the 36^th Asian Racing Conference in Mumbai in January 2016 and we were awarded the rights after the Chairmen, TAI unanimously requested our Club to take on the huge responsibility for hosting this international conference. Approximately 700 delegates from all Asian countries will be visiting Mumbai to participate. The Chairman, RWITC will lead the Indian Delegation to the 35^th ARC to be held in Hong Kong in early May 2014.

11. Sponsorships Hit the High Bar:

The sponsorships continue to do very well and virtually each weekend at Mumbai has, once again, featured a sponsored race. Total contributions for the Mumbai Season 2013-14, were Rs.5.78 crores as compared to Rs.5.29 crores during the previous season, in addition to various alliance partners who associated with the Club. Considering the economic downturn, this is a splendid effort.

12. RWITC plays a lead in CSR (Corporate Social Responsibility) endeavors:

RWITC has been associated with several NGO’s this season such as:

SNEHA, a non-profit organization started in 1999 by doctors and social workers, which has been reaching out to the most vulnerable women and children in the slums of Mumbai.
The Indian Cancer Society
The Children’s Movement for Civic Awareness (CMCA)
The Sahachari Foundation, The Victoria Memorial School for the Blind, TheWadia Hospitals, etc.
The Ability Unlimited Foundation.

RWITC will continue to take a leadership role in its social activities.

13. The 25^th Running of The Poonawalla Breeders’ Multi Million and the Zoroastrian Race Day:

Apart from the McDowell Signature Indian Derby held in February this year, which was a huge success, the other main racing highlights of the Mumbai Racing Season 2013-14, were the 25^th running of the Poonawalla Breeders Multi Million and the Zoroastrian Race Day. The latter event especially, was a unique race day in the history of Indian Racing with the entire race card featuring Million races in honour of the Zoroastrian community which turned up in large numbers. Delegates from the World Zoroastrian Congress, being held in Mumbai, enjoyed this social gathering at the Race Course.

14. Betting/Attendance at the Race Course:

The totalisators betting at the Mumbai and Pune Race Courses from 1^st April 2013 upto 31^st March 2014 was Rs.103.79 crores as compared to Rs.110.62 crores during the previous year. The attendance figures were up, improving to 9.85 lacs as compared to 9.40 lacs during the previous year. The Club continues to represent its case for reduction in betting tax, which is the only way the betting turnover can go up.

15. Status on BJR Arbitration Case:

The Arbitration proceedings between the Club and BJR’s has reached an advanced stage with Mr. Justice A.P. Shah (Retd.) who had been appointed sole Arbitrator in the matter. Examination and cross-examination of witnesses were completed and arguments on behalf of the Club had commenced. Subsequently, as Mr. Justice A.P. Shah (Retd.) was appointed Member of the Law Commission, BJR’s objected to him continuing as sole Arbitrator in the matter. Mr. Justice A.P. Shah (Retd.) subsequently resigned as sole Arbitrator. The Club had filed an Arbitration Petition in the High Court, Bombay for substituting a new Arbitrator in place of Mr. Justice A.P. Shah (Retd.) and the High Court has recently appointed Mr. Justice F.I. Rebello as the Sole Arbitrator.

16. Activities at The RWITC Mini Club House and Gymnasium, Mumbai:

The Club has started Yoga, Zumba, Boot Camp and Fusion dancing at its Gymnasium in Mumbai, which has been recently branded “Horsepower”. The Club House Working Group is in the process of identifying ways and means to better utilize the areas within the Mini Club – now called “Hooves” and offer more facilities to members, with entertainment on select days.

17. Fixing of Surveillance Cameras:

Various measures have been / will be taken to further improve the security/vigilance system at the Mumbai and Pune Race Courses, as under:

CCTV Cameras at the entrances, enclosures and at various strategic locations.
CCTV Cameras in the stable area.
Flap barriers at the entrances. The ticketing is being converted into a token based system, linked to the flap barriers.
Door Frame Metal Detectors and Hand Held Metal Detectors at the entrances.
Wrist band with RFID Technology to replace the mobile phone badges.

These will be implemented gradually. As the whistle blower policy with Mahindra Security failed to get response, it has been discontinued.

18. Code of Conduct:

The Club is examining the possibility of introducing a code of conduct, in line with other Clubs, in the run up to the Annual Elections to the Committee in December 2014. We hope this will be approved and implemented by the Committee.

Please do e-mail any comments, or suggestions, you may have to me directly at vivekjain@dcwltd.com or to secretary@rwitc.com

With warm regards,

Yours faithfully,

For and on behalf of the Committee of the Club,

Mr.Vivek Jain