This refers to the editorial "A profitable punchayet?” (Parsiana, December 21, 2024-January 6, 2025). Yes, a profitable Punchayet which uses its profits to fulfill its social and charitable purposes is desirable. But though we are collectively resolved to get there, we have many miles to go.
While analyzing the Bombay Parsi Punchayet’s (BPP) 2023-24 balance sheet, you have raised the query: "Which property did the BPP sell?” The answer is that the BPP has sold none of its properties in 2023-24.
Navsari Building C on erstwhile BPP property
Photo: Jasmine D. Driver
The accounting entries presumably being referred to are actually for money received from the sale of flats on ownership basis at Navsari Building "C” to Parsi buyers (on the BPP’s erstwhile property called Bamji Sanatorium in Navsari). As the full amount was realized in the accounting year 2023-24, the entry was reflected accordingly in the balance sheet of that year.
Being a trust (a non-corporate entity), the BPP prepares its accounts on cash basis and not on mercantile basis. For the benefit of the uninitiated, when prepared on cash basis entries in the account books are reflected only when cash is actually received or paid. They are not reflected on accrual basis as is done for corporate entities.
I trust this explanation sets at rest any apprehensions you may have had or misconceptions that your editorial may have created in the minds of readers who are also our valued beneficiaries.
Dr ADIL MALIA
adiljmalia@gmail.com
The editors reply:
Many thanks for the clarification.