Newsletter : Mid-year report on the Club's working and other important issues
Posted on - 26 Mar 2012
On behalf of the Committee, I have great pleasure in addressing this Newsletter to present a mid-year report on our Club’s working and other important issues.
1. Accounts :
The estimated accounts for the year ending 30th June, 2012 show a cash profit of about Rs.2.5 crores (as compared to a cash profit of Rs.4.15 crores during the previous year). The main reasons for the setback in the financial results are :
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Royalty from Bangalore Turf Club Limited for conducting betting on RWITC races has reduced by approx. Rs.1.20 crores. As royalty is calculated as a percentage of the commission, which BTC earns on betting on our races, and as this percentage of commission has been reduced by BTC from 4% to 2%, the income from this head has dropped significantly.
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Wage agreement with unionized staff has been signed recently and the extra burden will be Rs.1.37 crores per annum. In addition, the wage agreement signed with the clerical staff of the Club will result increased costs by Rs.53 lacs per annum.
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Charges on sand used on the tracks has increased manifold resulting in an extra burden to the Club of about Rs.1 crore per annum.
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Stake money increase of about Rs.50 lacs.
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Prior year expenses that will need to be debited this year will amount to Rs.1.72 crores.
However, we were able to partly offset these huge cost increases by a handsome increase in revenue under several other heads and a control on general expenses.
2. Reserves :
The reserves of the Club are at a healthy Rs.117.50 crores.
3. Totalisators Turnover :
The totalisators income for the year ending 30th June, 2012 is expected to fall further by approximately Rs.50 lacs owing to the continuing negative impact on betting arising from a 100% increase in betting tax, from 10% to 20%, in April, 2010.
However, the tote investment at Mumbai for the current Mumbai Season has held up well and is roughly on par with last year.
4. Representation to Government :
A series of meetings have been held with the Revenue and Finance Ministries on the betting tax, and at a recent high powered meeting with the Revenue Minister, we were assured of a positive recommendation to the Maharashtra Cabinet on a roll back.
5. Sponsored Races :
The Club continues to do extremely well in attracting sponsors who have partnered the Club for its major events. We have hosted a sponsored race every Sunday of the current Mumbai Racing Season. The cumulative sponsorships obtained during the year 2011-12 will be an all time record of about Rs.8.50 crores.
6. Events at the RWITC :
As part of our endeavour to offer value to our members, we have co-hosted several innovative events on our premises at Mumbai, outside of racing days.
Some of the notable events were “Marathi Banaa” with the Lodha Foundation; Toumani Diabate with the Indian Council for Cultural Relations; Sonu Nigam with the Rotary Club of Mumbai; The Symphony Orchestra of India with the NCPA and most recently Shankar-Ehsaan-Loy unplugged.
Many of these were in aid of charity and we are playing an increasingly visible role in our corporate social responsibility (CSR) mission.
7. Tribe@Turf :
The Tribe@Turf, a community initiative supported by the RWITC to help preserve and promote the sustainability of Mumbai city in terms of open spaces, art and culture and environment, continues to make progress. Activities such as the Farmers’ Market have been very successful and other unique ideas that will include a football league for children and an exhibition on open spaces will kick off before the season concludes.
8. Attendance :
The attendance this season has shown an up-tick which was a cumulative 160,971 till 29th February at the Mumbai Season, an increase of 17.5%.
9. Turf Club House, Pune :
The Club is undertaking a major project for renovating the Ball Room, Victoria Room, residential rooms, toilets, kitchen and other areas at the Turf Club House, Pune, to improve facilities to members and to ensure maintenance keeps pace with the passage of time. We hope to complete this in time for the Pune Racing Season.
10. The McDowell Indian Derby Weekend :
The McDowell Signature Premier Indian Derby Weekend this year, was once again a stellar success. In addition to an attendance of over 30,000 over the weekend, this year’s race was the richest ever race run in India and showcased the sport in all its glory with superb racing and entertainment on both days.
We are thankful to Dr. Vijay Mallya and The United Spirits Group for their magnanimous sponsorship of India’s biggest race, which the RWITC is proud to host.
11. Matters Concerning BJR’s :
I regret to inform that the legal case with M/s. BJR’s continues, including the arbitration proceedings.
12. Matters Concerning the Local Military Authorities, Pune :
The Club has filed a Writ Petition in the Bombay High Court against Government of India, Ministry of Defence and Pune Military Authorities & Others from making any claims in respect of the central area of Race Course land at Pune which has been leased to the Club in perpetuity. The Club in its Writ Petition has inter-alia sought relief from the Hon’ble Court that no interference be caused to its racing activities by the Military Authorities as also to rectify the wrongful classification of the central area of Race Course Land, Pune and for joint survey to ascertain the correct areas.
13. End of Season Sale for Horses in Training :
In a path breaking initiative, it has been proposed to introduce an end of season sale of horses in training for the first time ever, at the RWITC. This is to encourage owners’ to trade in horses that may be beyond their best racing years.
14. Licence to Race :
I am happy to inform all Members, that the Club, after a great deal of effort, has received a License to Race for a period of two years, i.e from 1st July 2011 to 30th June 2012 and 1st July 2012 to 30th June 2013. The license fee has been increased by about 10% from Rs.2.93 crores to Rs.3.30 crores per year, but the other terms remain unchanged.
The Mumbai Racing Season is being conducted successfully and has been one of the best ever. The Season will come to an end during the last week of April 2012.
With warm regards,
Yours faithfully,
For and on behalf of the Committee of the Club
Vivek Jain
Chairman
