Minutes of the 4^th Annual General Body Meeting

Held on 5^th July 2009 at 9:30 am

In 1^st floor, Kunal Icon Shopping Complex

PREAMBLE

Those Present: Mr. Arvind Sardeshpande Chairman

Mr. M V N Rao Secretary

Mr. Sanjay Agarwal Treasurer

5 Other Committee members

Members of the Housing Society numbering 92

Observers: Nil

Apologies: The Auditor (Mrs K B Bidgar)

There was no quorum at 9:30am as required by Bye-Law no 102, hence meeting was adjourned. The adjourned meeting commenced at 10am, when 100 members were present. The Chairman of the Managing Committee Mr. Arvind Sardeshpande welcomed all the members who turned out in such a large number sacrificing their holiday. Then he proposed to observe two minutes silence & to pray for delayed monsoon. All members stood up & two minutes silence was observed. Mr. Sardeshpande announced that as promised earlier, by the Managing Committee, the Society was awarded “A” class certificate from the auditors this year. Mr. Sardeshpande then requested Hon. Secretary to proceed. Hon. Secretary Mr. M V N Rao welcomed again the members and then set the ground rules for the meeting, and requested all members to cooperate.

1. To read & confirm the Minutes of the 3^rd Annual General Body Meeting held on 27^th July, 2008 and to note the action taken report:

Mr. Rao started reading the minutes of the previous meeting when Mr. Musale objected that the minutes were not in accordance with the notice of AGM. Members present, however did not agree with him. Following resolution was passed unanimously:

“RESOLVED THAT the minutes of the Annual General Body Meeting held on 27^th July, 2008 be & are hereby adopted and confirmed.”

2. To consider and discuss Audit Rectification Report:

Audit Rectification report for the year was read out fully. The same was proposed by Mr. S P Giri duly seconded by Mr. Sharma, following resolution was passed unanimously:

"RESOLVED THAT Audit Rectification Report for the year 2008-09 be & is hereby adopted."

3. To approve and adopt Income and Expenditure Account for the FY2008-09, Balance Sheet as on 31^st March, 2009 and Audit Report for the FY2008-09:

Mr. Ashok Kulkarni wanted to know that in the FY2007-08 the Society had Fixed Deposite(FD) worth Rs.36,00,000/- and interest received was Rs.3,18,556/- while in the current FY FD worth Rs.50,57,000/- and interest received Rs.1,36,887/-. Amount in FD is more this year but interest is less than previous year. Hon. Treasurer Mr. Sanjay Agrawal explained that interested received during the year is shown as the date of maturity of some FD receipts was of next year, hence accrued interest thereon was not accounted for this year. Mr. Musale and Mr. Sharma wanted details of Sundry Creditors. Mr. Agrawal gave the details. Mr. Sharma appreciated savings in electricity expenses. Hon. Secretary stated that credit goes to Mr. Joseph Mathew and Mr. Saboji who tried their best to reduced running hours for motors for borewell. They also kept an eye on lights at night time and minimize as a result of which electricity expenses were reduced from Rs.13,20,000/- to Rs.10,18,000/- this year. Mr. Giri proposed that Mr. Saboji should be given special thanks for this achievement. It was seconded by Mr. Sharma. Special thanks were given to Mr. Saboji. Mr. Sharma also appreciated considerable savings in water expenses. Mr. Rao stated that due to constant efforts put by Mr. Saboji and Mr. Pravin Dhole water tankers were reduced to zero, resulting savings of large amount in this respect. Mr. Giri wanted to know Charity income was shown as liability. Mr. Agrawal explained that the society is merely custodian for the same. Mr. Iyer wanted to know whether sinking fund was part of maintenance. Mr. Agrawal stated that it was part of maintenance collected. Mr. Agrawal accepted that the correction will be made as TDS refundable was a liability and not an asset as shown in the balance sheet. After discussions following resolution was passed as 83 members voted for it and 3 against.

“RESOLVED THAT income and expenditure account for FY2008-09 and balance sheet as on 31^st March 2009 together with the Audit Report for the FY2008-09 be and is hereby adopted.”

4. To consider appropriation of surplus of Rs.40.29lacs:

Mr. Iyer suggested that only minimum amount as required by the Bye-laws be kept in sinking fund. Mr. Rao stated that it is indeed that the Society is doing so. Mr. Musale suggested that Sundry Creditors, after realization, amount should be transferred to Sinking fund. Mr. Agrawal, Treasurer agreed to him & stated that the Managing Committee will consider it accordingly. Col. Bhosale stated that Row-House maintenance was high & suggested that it should be reduced in the light of Surplus available. On behalf of Managing Committee Mr. Joseph Mathew replied that the maintenance charge for Row-House is Rs.800/- which is Rs.100/- less than that of flats as there is no provision of Lifts. The other component, sinking fund, is decided in previous AGM included painting expenses as the biggest component which was in turn based on the area of the tenement. Thus sinking fund calculation for the Row-House is not at all unreasonable. Mr. Musale suggested that Sinking fund should be split for Row-Houses and the flats. Hon. Secretary stated that he agreed to this proposal and the Managing Committee may consider it. After discussion the following resolution was passed as 89 members voted for it as 2 against:

"RESOLVED THAT Rs.12.52 lacs be and is hereby transferred to Sinking Fund account of the society. Remaining amount of Rs.27.77 lacs from Surplus amount be and is hereby transferred to General Reserve Fund of the Society."

5. To appoint auditors for the FY2009-10

Following resolution was passed unanimously:

“RESOLVED THAT Mrs. K B Bidgar be & is hereby re-appointed as the Auditors of the Society for the FY2009-10 and their remuneration be as per the Government rules.”

6. To consider the Budget for the FY2009-10

Mr. Ashok Kulkarni pointed out that the expenses for i) Firefighting equipment repairs and ii) Boom barrier equipment were not covered in the budget. Treasurer Mr. Agrawal explained that if these proposals are passed out, the details would be worked out and the Budget allocations will be increased accordingly which will not exceed the maximum allocation for each head. Mr. Musale pointed out that the budget specific resolutions are not really required as per Bye-Laws provided that the stipulated norm of 3 quotations for each contract is met. Mr. Ashok Kulkarni pointed out that the office staff salary is shown @ 10% of the total budget while in general it is maintained at 2% by companies, banks, etc.

Hon. Secretary explained that members of the Managing Committee had to spend a lot of time for administration and running the Society which was affecting their own business as well as they day to day life. It was also necessary to appoint a manager in order to keep up to date record of the Society as pointed out by the auditors of the Society. This is the main reason for increase in the expenses. Mr. Rao also assured that the Managing Committee would look into the matter and try to reduce it as far as possible. After discussions, the following resolution was carried out as 80 members voted for it and 5 against.

"RESOLVED THAT the Budget for the FY2009-10 be and is hereby passed and adopted."

7. To consider Insurance of the Society premises:

Two options were tabled for consideration:-

a) Insurance of individual Flats/Row-houses be taken by the members for their respective Flats/Row-houses.

b) Insurance of the Society premises be taken by the Society itself for which the Managing Committee be authorized to take necessary action required for it. Mr. Agrawal stated that in case of claim, the Society will have to exercise massive and continued efforts and face difficulties involved in it. Therefore he was of the opinion that member should go individually for their respective tenement.

Mr. Natraj Srinivasan pointed out that the figures mentioned are just an approximation in the light of the fact that the construction cost fluctuate year to year. Mr. Giri proposed that a Sub-Committee should be formed in order to pursue the matter in details and also look at a yearly premium thereby allowing for a review of the parameter every year. Mr. Acharya was of the opinion that the Society should seek expert opinion on this matter and that Row-Houses and Flats should be considered with different perspectives.

Following was the result of voting for the above mentioned two options:

Option i) 82 in favor of it while 16 against.

Option ii) 40 in favor of it while 27 against.

8. To consider painting of Parking & Staircase area up to 5ft. area

Members present were of the opinion that it was necessary to paint these areas. Col. Bhosale suggested that the Row-House parking area should also be included. Mr. Joseph Mathew clarified that any parking area in the Society that is stained or dirty would be painted. The following resolution was carried out as 80 members voted for it and 3 against.

"RESOLVED THAT the Managing Committee be & is hereby authorized to spend a maximum of Rs.1,00,000/- over & above budget for painting of the parking and staircase area up to 5ft."

9. To consider effective tracking of communication by members to the Committee

Col. Bhosale stated that the Committee must respond to members’ written communication. Hon. Secretary stated that the Committee will respond only after considering the nature and priority of the issue at hand rather than in all cases. After discussions the following resolution was passed as 80 members voted for it and 4 against.

"RESOLVED THAT communication from the members to society will be in writing form only. Managing Committee will discuss the letters received in the following meeting and will take action accordingly."

10. To consider route change of the bus and revision of its fare

Mr. Nimse pointed that the bus was running at loss. It was explained by the Committee that expenditure is indeed incurred on all of our amenities but the society needs a holistic view on this. The good market value and goodwill that the tenements in our complex command is due to the overall image and reputation of the society and the amenities need to be looked upon as a boon rather than a burden. The following resolution was passed as 83 members voted for it and 3 against

"RESOLVED THAT the Managing Committee be and is hereby authorized to take decision regarding route changes in the bus. Also to make necessary decisions regarding fare charges, as it may deem fit in the best interest of the Society."

11. To consider inclusion of C&D blocks into Kunal Icons Co-Op. Hsg. Society Ltd.

Following resolution was carried out as 84 members voted for it and 3 against.

"RESOLVED THAT the members of C&D blocks will be included into Kunal Icon Co-op. Hsg. Society Ltd, only after the they meet the following terms and conditions:

a) On submission of statement of account of all members duly tallying with bank account

b) Agreeing with maintenance charges on same principles as with existing members

c) On clearing all dues to the Society

d) Any other conditions as decided of the Managing Committee of A&B blocks"

12. To consider NOT to accept maintenance charges in CASH:

Members present opined that accepting cash was risky as it may lead to fraud or misappropriation or theft and therefore following mode of payments which are secure and risk free should be preferred.

a) By cross a/c payee checks

b) Online payment through internet banking

c) Cash deposit into society’s bank account by the members themselves

"RESOLVED THAT cash payments towards maintenance charges will not be accepted w.e.f 6th July, 2009."

13. To consider to repairs and reinstall the Garbage chute

It was suggested by a member that garbage room on ground floor should be put on tiles in order to get it cleaned easily and effectively to maintain cleanliness. After discussion following resolution was carried as 78 members voted for it and 8 against.

“RESOLVED THAT the Managing Committee be and is hereby authorized to repair and reinstall the garbage chute system at a maximum expenditure of Rs.80,000/- and further resolved that the Managing Committee be and is hereby authorized to execute an annual maintenance cost at a maximum cost of Rs.75,000/-“

14. To consider and lay down rules of parking:

It was general opinion of the members present the society should provide for a parking area for visitors cars only. It was observed that many a cars were parked in restricted areas like front of sub-station, near garden or near water tank. At present the society has ample area available for parking in front of Ganesh Telecom. Mr. Musale suggested that the society should form a sub-committee to look into the parking problems. Mr. Acharya stated that the committee should protect the area marked by the builder for the tennis court as an amenity rather than use it as for parking. Mr. Rao stated that the area in question was both for tennis court & for parking as promised by the builder to some members. After discussions, the following resolution was carried out as 67 members voted for it as 18 against:

“RESOLVED THAT the Managing committee be & is hereby authorized to lay down rules of parking, charge penalty/levy fine upto a maximum of Rs.300/- for each occurrence, take action like wheel jamming etc., against unauthorized vehicle parking [be it 2 wheeler,3wheeler or 4wheeler.]”

15. To consider removal of antennas installed on RCC/Pillars:

Members present shared the view of the committee that antennas fitted on RCC/Pillars could cause leakages & weaken the building and therefore should be removed totally. After discussion the following resolution was carried out as 82 members voted for it as 1 against:

"RESOLVED THAT the managing committee be and is hereby authorized to issue notice to the effect that DTH antennas installed on RCC/Pillars be removed within 1 month from date of service of notice, failing which a penalty of Rs.1000/- will be levied and also the installation will be forcibly removed."

16. To consider removal of external fixtures which causes damages to RCC structure of the buildings:

Mr. Musale stated that fixtures on pillars are dangerous & therefore, the society should appoint structural engineer to assess the damages caused. After discussion the following resolution was passed as 78 members voted for it as 3 against:

"RESOLVED THAT the Managing Committee is empowered to seek legal proceedings against members who have installed any external fixtures (including AC fixtures / awnings etc.) or structural modifications which damage the existing RCC construction and the legal and damage repair expenses will be recovered from the concerned member. Also, the managing committee is authorized to impose fine / penalty of amount not exceeding Rs.10,000/- per occurrence."

17. To recover damages to any common property:

There was no any objection for this. Following resolution was passed.

“RESOLVED that the cost of repairs/replacement of damages to any common property of the society caused by any resident will be recovered from the person’s involved & fine/penalty of Rs.1,000/- will also be imposed.

18. To consider to appoint an advisor for legal matters:

The Society intended to appoint an advisor for important matters like conveyance deed, completion of remaining amenities, recovery of arrears, etc. Mr. Giri suggested that the legal advisor be appointed on case to case basis, the committee accepted his proposal. Following resolution was carried out as 89 members voted for it while 2 against.

"RESOLVED THAT the Managing Committee be and is hereby authorized to appoint an advisor for its legal matters on case to case basis."

19. To consider to install boom barrier (automatic gate) in place of manually operated gate:

The Committee is of the opinion that the majority of problems at main gate were due to the huge volume of traffic through only one gate. At present the security guard has to handle the gate continuously as a result of which passer by escapes unnoticed. If gates are automatically operated he can watch the passerby and stop him immediately. The Committee proposed couple of solutions to rearrange the traffic movement at main gate. For one of which it was required to close the main gate of Row-Houses. Row-House residents raised an objection to either closure of the gate or the opening of the Row-House gate for general traffic. Mr. Ashok Kulkarni stated that the society should reconsider report of the Sub-committee on Security. Before going ahead with boom barrier implementation Mr. Sandeep Seth suggested that the society should make effort for removal of Rickshaw stand near main gate. If that is done it would automatically solve traffic woes at main gate. Mr. Mani T V proposed that the society should form a sub-committee to look at traffic woes. The following resolution to install boom barrier was accepted by the members present as 41 members voted for it while 40 against it.

"RESOLVED THAT the managing committee be and is hereby authorized to look into feasibility of installing boom-barrier (automatic gate) in place of manually operated gate and if found feasible, implement the project within a maximum cost of Rs. 2 lacs."

20. To review status of Firefighting equipment in the society premises:

It was general opinion of the members present that the society must have proper firefighting equipment with it. It was further opined that this issue be taken up on priority basis as it was compulsory from the Law point of view. Mr. Acharya requested for firefighting equipment for Row-Houses. Mr. Musale suggested that these expenses should be borne by the builder. Mr. Giri pointed that the proposed expenditure cap of Rs.2 lacs may not be enough to cover full cost of overall firefighting equipment. Following resolution was carried out as 76 members voted for it and 6 against it.

"RESOLVED THAT the managing committee be and is hereby authorized to review the status of existing firefighting equipments and take necessary action to put the same in order. For this activity, the committee may spend a maximum of Rs. 2 lacs."

21. To consider any other important business with the permission of Chair:

During the course of discussions following matters were discussed:-

a) Painting of the buildings: Painting of the buildings will be started as and when enough funds are available. Leakages will be also attended before painting. Crack filling will be also taken care of.

b) NOC for letting out flats: Mr. Musale stated that the rules and regulation should be shown to those members who let out their flats before they do so. As far as possible bachelors should not be allowed as tenants. Communication from the Society before letting the flats was desirable.

The meeting terminated with vote of thanks to the chair.