After incurring losses for the last several years, the cash strapped Bombay Parsi Punchayet (BPP) balance sheet for April 2023 to March 2024 shows a surplus of Rs 10.62 crores (USD 1,251,273). While sale of an unknown property (Rs 7.35 crores or USD 865,993) accounted for around 70% of the surplus, miscellaneous income of Rs 1.9 crores (USD 223,862) added to the revenue. Donations, most of it a euphemism for money received for transfer of tenancies/licenses, netted an additional Rs 8.5 crores (USD 1,002,034) over the last accounting year. Interest income also increased by around Rs 1.8 crores (USD 212,195). The total income for the year was Rs 63.44 crores (USD 7,832,3656) as versus Rs 43.35 crores (USD 5,104,957) for the year prior. Expenses were Rs 52.82 crores (USD 6,226,752) as versus Rs 48.15 crores (USD 5,673,868) the previous year.
When we asked chartered accountant and BPP trustee Xerxes Dastur via WhatsApp on December 11 the reason for the turnaround his explanation was the BPP was "careful about costs” and was trying to "build some surplus for the future.” But, he noted, "We still have a lot of liabilities, including employee liabilities, etc which need to be provided.” He explained the accounting is done on "cash basis,” that is money received and paid out. Amounts due to the trust but not received and money due to other parties but not paid are not accounted for "and hence this surplus is there,” says Dastur.
According to the auditors Kalyaniwalla and Mistry’s partner Farhad Bhesania, the trust has not invested over Rs 22.03 crores (USD 2,596,974) "allocated to (the) Sinking and Depreciation Fund in earmarked deposits.”
Dastur did not clarify which property was sold. The BPP had advertised for the sale of Bai Mahal building, a 34-tenement, four-storeyed structure on Wadia Street in Tardeo last December for Rs 5.5 crores (USD 648,337). But objections had been raised regarding the sale, amongst others by lawyer Khushru Zaiwalla. The Free Press Journal (December 14, 2023) reported that Zaiwalla wrote to the trust alleging that their action amounted to "a breach of trust and a fraud on charity.”
Other liabilities could include the 50% to be paid to tenants as the BPP’s share of building repairs, subsidies due for the second and third child support, and assistance to mobeds. The balance sheet shows Rs 49.56 lakhs (USD 58,421) paid for second child and Rs 36.32 lakhs (USD 42,814) paid for the third child. No mention of assistance to mobeds is shown under the heading "religious aid.”
BPP trustee Anahita Desai attributed the turnaround to "Many reasons: auctions… mainly of Wadia Baug (flats), settling legal cases.” BPP chairman Viraf Mehta, when asked for the reasons for the surplus replied, "Multiple things… will send across a break-up.” We will carry his detailed reply, once we receive it, in a forthcoming issue. Trustees Armaity Tirandaz, Hoshang Jal, Maharukh Noble and Adil Malia had not replied to our December 12 WhatsApp query till the time of going to press.
Doongerwadi continues to be amongst the topmost items of expenditure, Rs 2.92 crores (USD 332,431). With about 600 to 625 bodies being consigned to the towers every year, the cost for disposal of a corpse works out to around Rs 50,000 (USD 590). Funds utilized for the living comprise Rs 7.88 crores [education Rs 68.43 lakhs (USD 80,667), medical Rs 1.35 crores (USD 159,141), relief of poverty Rs 3.32 crores (USD 391,364), of which Rs 1.75 crores (USD 200,397) goes for the upkeep of Parukh Dharamshala; other charitable objects total Rs 2.51 crores (USD 295,849) which includes Rs 1.38 crores (USD 162,658) paid to outgoing tenants who surrendered their flats for auction/accommodation].
Assuming a Bombay Parsi population of 30,000 (the Parsi/Irani Bombay population according to the 2001 Government of India census was 46,000. The 2011 census figure has not been disclosed but there is an 18% decrease in numbers every decade), this works out to around Rs 2,626 (USD 31) spent on social welfare per Bombay Parsi. Add to that the approximate Rs 1,000 (USD 11.79) monthly subsidy provided to those residing in BPP managed flats. The service charge of Rs 750 (USD 8.84) was rescinded by a former majority of trustees to pander to voters (trustees are elected by the community, many of whom reside in these flats). Residents of the five Wadia Baugs continue to pay the levy. The present majority of four trustees owing allegiance to former BPP chairman Dinshaw Mehta who opposed the levy do not wish to reverse the waiver. Nearly everyone paid the levy barring those who were indigent and were given a waiver or those who opposed the service charge terming it unjustified. Many of the flat occupants are relatively well off with several owning cars. Income from car parking charges — including the Wadia Baugs — is shown as Rs 2.36 crores (USD 278,212 ), an increase of Rs 23 lakhs (USD 271,134) from the year before.
Many Parsis do not avail of BPP subsidies because they have enough income or are reluctant to accept charity. Only excessive medical costs may force some to seek assistance. Young people want affordable housing but the BPP has only a handful to offer. Instead, vacant flats are auctioned to the highest bidder in order to fund the trust’s mounting expenses. Most new construction, if it is undertaken, will be priced either at a profit or at cost. The ill-fated ownership building at Godrej Baug was to be sold for profit but instead turned out to be a liability. Entangled in bureaucratic and procedural compliances, the skeleton structure erected some years ago has to be torn down at considerable cost (as of now it is still standing). As it is the BPP struggles every month to pay salaries and of the two workers’ unions, the outstanding arrears of one were recently settled while the other is still pending. The dispute is at present before the labor courts.
Financial statements require much study to decipher. For the reader it’s not sufficient to know what payments were made and income received unless one knows the purpose and so can place it in perspective. For example the statement for religious aid for the "maintenance” of the Jokhi Agiary at Godrej Baug shows an expense of Rs 87.89 lakhs (USD 103,598) for the year. Earlier financial statements show an expense of four to six lakh rupees (USD 4,715 to 7,073). While one assumes the amount was spent on major repairs to the structure which celebrated its 25th anniversary this December 14, at the function Viraf Mehta mentioned that the entire cost was borne by the Jokhi family. But a lay person may not be aware of this.
Still, the financial statements do provide an overview of how the trust is faring. Working with a chartered accountants firm helps in "driving better behavior and accountabilities to the public,” states Helen Brand, chief executive officer of the Association of Chartered Certified Accountants (Business Standard, December 16, 2024). "Quite often, the professional accountant can be seen as the ethical guardian” of an enterprise. By making their accounts easily and promptly accessible to the community on their website bombayparsipunchayet.org, the trustees have not only kept their electoral pledge to the community but also indicated the working and complexities of the community’s largest institution.