106th Meeting of Board of Directors held on 13th Dec. 2006

MINUTES OF THE 106th MEETING OF THE BOARD OF DIRECTORS OF GHRSSIDC HELD ON 13TH DECEMBER, 2006 at 10.00 A.M. AT THE. HEAD OFFICE AT CRAFTS COMPLEX, NEUGINAGAR, PANAJI-GOA
 
The following members were present
     
1) Mrs. Victoria R. Fernandes, MLA Chairperson
     
2) Shri Savio De Souza Director
     
3) Shri Keshav .K. Kamat Director
     
4) Shri Girish Chodankar Director
     
5) Shri Nilesh N. Pednekar Director
     
6) Shri Manuel Vaz Director
     
7) Shri Prasad Naik Dessai Director
     
8) Shri H.T. Toraskar
Under Secretary (Industries)
Spl. Invitee
     
9) Shri Nikhil U. Desai Managing Director
   
Item No.1 Leave of Absence
 
Mr. William Gonsalves, Mr. Venkatesh A. Dessai, Mr. Dinesh Nair, -Directors remained absent without intimation. No leave of absence was granted to them as decided in 103rd Board Meeting. Secretary (Industries), had informed MD about his inability to attend the meeting due to official commitments. Hence the board granted him leave of absence However, during the discussion some of the Directors raised the issue of regular absence by some of the Directors and after deliberations and discussions, it was resolved as follows: -

(1) That the issue of regular absentees may be taken up with the Govt. informing that Shri William Gonsalves, Director on the Board has remained absent without intimation or without seeking leave of absence, since 102nd Board Meeting and he therefore recommended that Mr. Gonsalves may be disqualified as Director of GHRSSIDC. He further suggested that the Joint Secretary Budget Govt of Goa may be appointed as Director on the Board of the Corporation, in place of Mr. Gonsalves so that his valuable inputs could be incorporated at the planning stage of various schemes proposed to be implemented by the GHRSSIDC in the coming days.
 
It was also discussed that since the Secretary Industries is kept extremely busy due to his official commitments, the possibility of appointing Director of Industries, Trade & Commerce on the board of Directors in lieu of Secretary Industries could be taken up with the state government. The board of Directors unanimously approved this suggestions and the MD was authorised to ake the needful steps in the matter.
 
Item No.2 Confirmation. of the Minutes of the 104th Board Meeting
 
M.D. read out the Minutes and Action taken report of the 105th Board Meeting of the Corporation and after further deliberations / discussions, the minutes were confirmed with the following changes/suggestions.

 

Item No.3 of 104th Board Meeting
 
It was informed by Managing Director that the second meeting was held on 12/12/06 with Shri Keshav Kamat, Shri Savio de Souza to study and discuss the losses incurred by the Corporation highlighting the area of the losses for the year 005-06 . Mr. Kamat explained that the major reasons for losses was some decisions taken y the Ex-M.0 and also that the GHRSSIDC conducted two Aparant Maand's expecting rent in Aid from the State Govt. and the same was not sanctioned as a result of which the corporation had to bear the entire expenditure from its own funds.
 
Also, the Corporation had o bear the brunt of the losses due to decline in sale of steel items. Mr. Kamat further explained that as a result of proactive approach adopted by the GHRSSIDC the financial condition would be certainly much better and it would not be difficult to achieve profits during he current financial year. Mr. Garish Chodankar suggested that the M.D. and Chairperson should hold a Press Conference highlighting the number of schemes proposed to be implemented ant sizeable turnover made during the current year ended December, 2006 as compared to last year, which could gave us a good result in the current year 2006-07.

He explained that this would create a positive impression about the Corporation, which would be helpful to improve the business environment. The Board approved this suggestion.
 
Item no.9 of 104th Board Meeting
 
The payment of bonus / ex-Gratia to the employees. The matter again came up for discussion ant it was decided that a separate matter may be discussed in the form of agenda item no. 12 at the end of the business.
 
Item no.4 of the 105th Board Meeting
 
It was further informed by M.D. that once the modalities for obtaining dealership were finalised, press conference will be called at Hotel Marriott, Panaji, Goa for signing of MOU between the respective parties and Chairperson of the Corporation. The Board approved this suggestion
 
Item no.7 of 105th Board Meeting
 
M.D. informed the Board that the tender for leasing of weighbridge at Kakoda to private parties was called, however, only one quotation was received and therefore, the same was not opened. M.D. further informed that the item will be e-tendered. However, during the discussion it was decided not to re-tender the issue of easing of weighbridge and keep the matter pending and to further evaluate the possibility of shifting the existing weighbridge to an alternative site to Mapusa for setting up of new steel . art. M.D. explained that setting up of new steel yard may not be a viable business proposition as it would involve sizeable overheads such as purchase of land, setting up of weighbritge, employment of additional manpower, security, office equipments, etc. M. 13, suggested that the clients from Mapusa area could be serviced from Verna Steel yard and hat the orders could be booked at Mapusa Aparant Emporium as it would prove to be cheaper to transport the steel from Verna to Mapusa rather than setting up of new yard at Mapusa.
 
Mr. Savio de Souza suggested that GHRSSIDC should explore the possibility of setting up new yard at Mapusa by purchasing / hiring the land. He suggested that an advertisement could be released inviting applications from interested parties for hiring of suitable site to set up the yard. M.D. suggested that the benefit cost ratio analysis should be undertaken by the Corporation and further decision could be taken based on the viability of the project.

The Board approved this suggestion and authorised the M.D. to release the advertisement in the local newspaper inviting applications from interested parties for hiring of suitable site to set up the yard.
 
item No.3 : Organising of Aparant Maand 2006 at Rosary School Compound Ground Navelim, Salcete-Goa from 16/12/06 to 19112/06 and Aparant Maand 2007 at St. Cruz, Tiswadi, Goa from 3/1/2007 to 6/1/2007
 
M.D. explained that the BOD's in its 105th meeting had approved the scheme for holding two Aparant Maand's one each in North and South Goa at a total cost of Rs 15 lakhs each. He further stated that the Govt has approved the scheme and the file is currently with the finance dept for grant of funds under revised estimates.
 
GHRSSIDC has received a note from the office of Hon Industries Minister requesting to hold Aparant Maand in Navelim.
 
Similarly Chairperson GHRSSIDC also indicated that the Aparant Maand could be held in St. Cruz from 3rd January to 6th January, 2007 to coincide with the festive season . Accordingly the Tender for organizing Aparant Maand from 16th December, 2006 to 19th December, 2006 at Navelim, Salcete-Goa and at St. Cruz from 3rd January, 2007 to 6th January, 2007 were invited. indicating the last date as 5.12.2006. M.D. explained that a pre-bid Conference was held on 1.12.06 at 1300 hours to clarify the points raised by the representative of the Tenderer.
 
A Committee for evaluation of Technical bids for selection of Event Management Agency for ` setting up of stalls and managing the event during Aparant Maand 2006 and 2007 to be held at Navelim and St. Cruz respectively was constituted vide order No.GHR/Aparant Maand/2006-07/3512 dated 5.12.2006 and the following officials were the members:
     
1) Shri Nikhil U. Desal Managing Director
     
2) Shri K. Sreedharan Manager(Accts/Admn)
     
3) Shri S.Y. Shirodkar Manager(MKT/RM)
     
4) Shri R.S. Parab Manager(ACCTS)
 

Further, the Technical bids were opened on 5.12.06 at 5.00 p.m. in presence of the below mentioned parties
     
1) M/s Velrose Enterprises  
     
2) Ms/ V.J. T. Arts  
     
3) M/s Media Promotions  
 
Upon scrutiny of technical bid documents it was noticed that M/s VJT Arts had failed to enclose Bankers Certificate and M/s Veirose Enterprises had failed to submit the signed Certificate by the Chartered Accountants regarding the annual turnover. Therefore, to ensure healthy competition fair chance was given to both the parties to produce the necessary documents and therefore, opening of financial bids was postponed to 6.12.06 at 0.30 hours.
 
On 6.12.06, upon the scrutiny of technical documents it was found that the below mentioned parties satisfied the technical bids criteria laid down in the tender documents.
   
1 M/s Media Promotions Pvt. Ltd., Panaji
   
2. M/s Velrose Enterprises,' Ambeli
 
However, the 3rd , party namely VJT Arts, Chinchinim did not fulfill the minimum turnover criteria of Rs.25.00 lakhs per annum for the last 3 years and therefore his financial bid was of considered for opening. subsequently, financial bids 2 each for Navelim and St. Cruz was opened' and the comparative Statement of each is furnished below
     
Name of the Party Navelim St. Cruz
       
1) M/s Media Promotions Pvt. Ltd., Panaji 13,70,002 13,70,002
       
2) M/s Velrose Enterprises, Ambeli 10,02,652 10,02,652
 
Therefore, the Committee recommended the selection of M/s Veirose Enterprise as a. Event Management Agency for executing Aparant Maand, 2006 at Navelim and 2007 at St. Cruz at Rs.10,02,6521- each being the party which had quoted the lowest rates for both the events, Work Order in respect of Aparant Maand,
 

Navelim was issued to M/s Veirose Enterprises after obtaining the approval of Chairperson GHRSSIDC on the file, since the time at hand as short. The matter is therefore being put up for approval by the Board of Directors so as o enable the GHRSSIDC to issue the necessary Work Order in favour of M/s Veirose nterprises for execution of Aparant Maand St. Cruz. Ex post facto approval may also be given for issue of work order for conducting Aparant Maand at Navelim with effect from 6.12.2006 to 19.12.2006. During the discussion, some of the Directors brought to the notice of` the Board that :in the past Aparant Maand they were not welcomed and honored properly. However, M. D. assured them that all the Directors would be rightfully honored and requested them to be present in organising the event successfully. Mr Savio and Mr Girish Chodankar expressed their opinion that the Aparant Maands should be non political in nature and must strive to help the needy and deserving artisans irrespective of their political affiliations. The Board noted the agenda item and passed the following resolution.
 
RESOLUTION NO.1018
 
"Resolved that the tender process and the related formalities undertaken by the GHRSSIDC or selection of agency to undertake Aparant Maand at Navelim from 16.12.2006 to 9.12. 006 and at St. Cruz, Goa from 3.1.07 to 6.1.07 and the lowest tender submitted by M/s. Verrorless Enterprises for organising Aparant Maand for Rs.10, 02,652/- each for Navelim and t Cruz during the period from 16th December, 2006 to 19th December, 2006 and from 3rd January 2007 to 6th January, 2007 respectively at Navelim and St. Cruz be and is hereby approved.
 
" Resolved further that Managing Director be and is hereby authorised to take further necessary action in the matter."
 
Item No.4: Enhancement of fees payable to Statutory Auditors appointed by the Comptroller and Auditor General of India
 
M.D. explained in detail as per the agenda to increase the remuneration of the Statutory auditors as per Section 619(2) of the Companies Act. The Board noted the same and passed the following resolution.
 
RESOLUTION NO.1019
 
"Resolved that the fees payable to the Statutory Auditors of the Corporation appointed by the comptroller and Auditor General of India be enhanced from Rs.18000/- to Rs.25000/- per annum from the year 2004-05, be and is hereby approved."

"Resolved further,, that post facto approval may also be accorded for payment of Rs.25000/¬paid to the Statutory Auditors for the year 2004-05."
 
Resolved further that Managing Director be and is hereby authorised to take further necessary action in the matter."
 
Item No.5:Issue of Bank Guarantee in favour of M/s JSW Steel Ltd, Bangalore
 
M.D. explained in detail the purpose of issue of Bank Guarantee to Jindal South West Steel Ltd., as per the agenda note. After brief discussion, Board approved the issue of Bank guarantee in favour of Jindal South West Steel Ltd., as per the following resolution
 
RESOLUTION NO.1020
 
Resolved that the proposal for obtaining Bank Guarantee of Rs.20.00 lakhs from Bank. of Maharashtra, Panaji, in favour of M/s Jindal South West Steel Ltd., Bangalore be and is hereby approved."
 
Resolved further that the margin money required in the form of deposit to obtain Bank guarantee of Rs.20.00 lakhs on JSW Ltd be and is hereby also approved."
 
Resolved further that Managing Director be and is hereby authorized to take necessary action in the matter."
 
item No.6 : Medical reimbursement bill of Shri Gurudas Gaonkar, Marketing Supervisor
 
M..D. explained in detail the agenda note of medical reimbursement bill of Shri, Gurudas Gaonkar. During the discussion, it was brought to the notice by Shri Savio de Souza that this issue was discussed in the 101st Meeting held on 29th December, 2005 and authorised chairperson to decide the matter if the same is within the rules and regulations of the Medical Attendance Rules as well as the Corporation's Medical Rules. The file was also referred to the Govt. who has asked the Board to take necessary decisions.
 
M.D further informed the Board that. Corporation is following a mixture of both the Medical attendance Rules i.e.. partly of GHRSSIDC and partly of the Govt. Medical Attendance Rules.
 

MD. further informed that under both the medical rules, the medical bills submitted by Shir Gurudas Gaonkar do not fail for reimbursement. However, M.D. further brought to the notice that considering the very precarious health conditions , the expenditure of Rs.4,33,299/- incurred at the Lilavati Hospital, Mumbai, which is not recognised by the Govt. of Goa for reimbursement may be considered to the maximum limit of Rs.3.50 lakhs as the prescribed limit for the rate for Renal Transplant. After detailed discussion and considering the precarious health condition and sympathetic and humanitarian grounds, the reimbursement of the medical bills maximum of Rs.3.50 lakhs was approved as per the following resolution. After detailed discussion and considering the humanitarian grounds, the reimbursement of the medical bills to Shri Gurudas Gaonkar subject to a maximum of Rs.3,50 lakhs was approved as per the following resolution.
 
RESOLUTION NO.1021
 
"Resolved that the medical reimbursement bills for Rs.4,33,499/- submitted by Shri Gurudas Gaonkar be and is hereby approved to the maximum limit of Rs.3.5 lakhs."
 
"Resolved further that the medical bills considered for reimbursement to Shri Gurudas Gaonkar as a special case, should not be considered as a precedence in future. "
 
Resolved further that Managing Director be and is hereby authorized to take necessary action in the matter."
 
Item No.7 : Recovery of Financial Assistance - Empanelment of Advocates
 
M.D. brought to the notice of the Board that under the DDSRY /GRYS scheme, kiosks are alotted to the beneficiaries under post dated cheques collected from them which in turn is deposited by the Corporation in the bank whenever the cheque are due for payment. M.D. further informed that regularly some of the cheques keep bouncing for different reasons and therefore the Corporation has to initiate action under section 138 of the Negotiable instruments Act. M.D. further informed that in view of the above and in order to initiate Iegal action against the defaulters through normal process of law,
 
Corporation requires a panel of advocates located in different parts of the state may be constituted to take legal action against the defaulters and their fees will be paid as fixed by the Govt. as per Circular issued by the Law department from time to time.

Mr. Girish Chodankar suggested that a press note may be released informing the beneficiaries that serious action will be taken against them for default in payment of dues of GHRSSIDC. Mr. Chodankar also suggested the. name of Mr Arvind Karapurkar, Advocate for being empanelled as the Legal Counsel / Advisor for GHRSSIDC, in view of knowledge in various aspects of law. Mr. Savio de Souza suggested hat Mr. V.A. Lawande, Legal Counsel, GHRSSIDC may be omitted from the panel. After detailed discussion and deliberations, it was resolved as follows
 
RESOLUTION NO.1022
 
"Resolved that appointment of a panel of Advocates for pursuing various legal matters associated with DDSRY / GYRY and other related schemes connected with GHRSSIDC, comprising of advocates, Shri Caitan Mascarenhas, Margao, Shri Antonio Philip Cordeiro, Mapusa, Shri R.S. Varde, Ponda, Shri M. Telles, Panaji be and are hereby approved."
 
"Resolved further that appointment of Shri Arvind Karapurkar as Legal Consultant for GHRSSIDC in place of Shri Lawande be and is hereby approved."
 
"Resolved further that the fees payable to the Advocates are as per the Circular issued by the Law department from time to time be and is hereby also approved."
 
" Resotved further that the Managing Director be and is hereby authorised to fix the fees Advocates on the panel / Legal Counsel in case of matters which are not covered by circulars issued by Law Department."
 
"Resolved further that Managing Director be and is hereby authorized to take necessary action in the matter."
 
Itern No.8 : Formation of Committee for selecting. Artists and their fees during Aparant_ Maand 2006 & 2007
 
The Board noted the agenda item and after brief discussion, it was decided that local committees may be constituted as they have a better understanding of the situation and circumstances prevailing in the area at Navelim and St. Cruz respectively. It was also decided that minimum of one Director of the Board may be present as a representative of the GHRSSIDC in the Committee

Itern No.9: Concept of leasing of Kiosk. in favour. of unemployed youth on commission basis at the ace of strategic is business centre/places of tourist importance
 
The Board noted the agenda item and approved the concept of leasing out kiosk at ten prominent places of business /places of tourist importance in Goa in coordination with the local Village Panchayat of the area, etc..after detailed discussion and deliberations, it was resolved as follows
 
RESOLUTION NO.1023
 
Resolved that Kiosks may be leased in favour of unemployed youth on commission basis at strategic business centres / places of tourist importance be and are hereby approved. “Resolved further that Managing Director be and is hereby authorized to take necessary action in the matter."
 
Item No.10 :
 
Approval of software development ERP and application software package from Infotech Corporation of Goa Ltd.
 
M.D. read out the agenda item and explained in detail the requirements of the ERP software package development through Infotech Corporation of Goo Ltd. Mr. Keshav Kamat submitted that he was not satisfied with the performance of Infotech Corporation after havirg seen their performance at GIDC office and instead he suggested that private software development companies could be approached to develop specific software for GHRSSIDC.
 
M.D. informed that since ITCGL is o Govt. of Goo company, it would be easier, for GHRSSIDC to deal with them directly and GHRSSIDC would be actively involved in developing the customized software package. He informed that a User requirement specification document has been already submitted by the ITCGL and the same had' to. be given an in principle approval by the Board. Mr. Kamat agreed to go into the details of user requirement specification document and suggest necessary changes if required. After brief discussion and deliberations, the Board approved in principle the development of software package for the GHRSSIDC through ITCGL, by following proper procedure. It was also decided that the detailed documentation, tendered rates etc. may be placed in the next meeting for approval.

Item No.11: Disposal of slow moving TMT materia
 
M.D. read out the agenda item for disposal and slow moving TMT material. Mr. Savio de Souza submitted that the Board should not be held responsible for the bad investment decision taken by the ex-M.D. and that the orders on the local producers should have been laced after correctly assessing the market demand. He submitted that, the Board of Directors has approved the purchase of TMT in small quantity as per the requirement and of huge quantity purchased by the Corporation.
 
Mr. Girish Chodankar desired to know the interest loss suffered by the Corporation due to holding of material in large quantities and further questioned whether the TMT could be sold after adding the interest cost. Mr. Keshav Kamat submitted that the steel products were subject to fluctuation and this was a common market trend. He expressed fears that if the material is not disposed on time, then it may lead to deterioration in quality which would result in further losses to the Corporation. He therefore suggested that the Board should authorize the management to dispose the TMT at purchase price and to evaluate the possibility of adding further profit margin so that the optional losses to the GHRSSIDC are minimized After detailed discussion / deliberations, the Board approved the proposal to dispose the TMT at purchase price and authorised the M.D. to evaluate the possibility of adding further margin on the existing material to cover the interest and other costs
 
Item NO.12: Payment of Bonus/Ex-Gratis to the Employees of the Corporation for the financial year 2005-06
 
M.D. informed the Board that this agenda regarding payment of Bonus /ex-gratis was earlier laced in the 104th and 105'h Board Meeting. However, the same was deferred. Hence, was being placed in this Board Meeting for consideration and approval. M.D. further informed the Board about the progress made to achieve higher sales in steel, obtaining dealerships of major companies in order to service requirement of Govt. departments and the measures taken to reduce the expenditure.
 
M.D. further informed the Board that with this pace and some extra measures undertaken, the Corporation was expected to achieve good results in he current year 2006-07. Mr. Girish Chodankar suggested that the bonus during the financial ear 2006-07 should be paid only after GHRSSIDC posts good financial results so that there is a system of checks and balance in place and the employees of the Corporation do not take things for granted.

M.D. also suggested that the Bonus payable to the employees' for the financial year 2006-07 should be paid only after the Corporation posts profits. The board unanimously approved this suggestion. After detailed discussion and deliberations the Board approved the payment of bonus/ ex-gratia. However, it was decided to withhold the bonus / ex-gratia payable, to then M.D. Shri Borkar till some of the pending issues are settled and following resolution was passed
 
"Resolved that Bonus/ex-gratia payment amounting to Rs.6,62,9271- payable "to the employees of the Corporation including the employees of the Chairperson for the year 2005¬6 be and is hereby approved."
 
“Resolved further that Bonus / ex gratia to the employees be disbursed before Christmas”
 
ANY OTHER ITEM
 
1) M.D. informed, the Board that as approved in the 105`h Board meeting agenda no.5, the applications were invited for appointment of Asstt. Engineer on contract basis. M. D. further informed that interviews were held on 7/12/2006. Out of the three applications received, applicants were interviewed in the presence of the Committee and the name of Shri' G.N. Ravindran was selected for the, consolidated salary of Rs.12000/- . The Board of Directors approved the appointment of Shri G.N. Ravindran as Asstt. Engineer on contract basis for an initial period of one year on a consolidated salary of Rs.12000/- per month. The Board further authorised the Managing Director to do the needful in the matter.
 
(2) Managing Director informed that Mr. K. Shreedharan, Retired Section Officer, Finance department, Govt. of Goa, had been issued an offer of appointment as Manager (Accounts): or an initial period of one year, as per the decision taken in the 105th Board Meeting. He ' proposed that his pay may be fixed at Rs.12000/- per month. The Board unanimously approved the proposal.
 
(3) Managing Director informed that the office of the GHRSSIDC was located on- the land belonging to Industries Department, Govt. of Goa. He informed that the existing land was supposed to be utilized for setting up of Goa Haat with Central assistance. However, due to lack of sufficient area, the proposal to have Goa Haat was being considered on the land belonging to Agriculture Department. M.D proposed that the land at Neuginagar could be put to better use by developing a theme concept aimed at promoting Goan Handicrafts items.

The proposal would involve setting up of a well equipped modern, air-conditioned two-storied emporium, which would contain all the Goan handicrafts items and would act as a major marketing outlet for the GHRSSIDC..' The project would be developed on a public private partnership model. The empanelled Architect, of GHRSSIDC,
 
Mr. Siddha Sardessai could be asked to work out a theme in this regard which would comprise of a cafeteria, well manicured lawns, two storied emporium -. the ground floor would be utilized by the GHRSSIDC and the top floor could be rented out to other state emporia, handicrafts artisans, rural entrepreneurs, etc., parking space for visiting tourists, a small stage where variety entertainment programme could be held in the evening. The proposal would aim at developing the existing place as a attractive destination for foreign and domestic tourists. The place could also be rented out for private and public functions by the Corporation on its own. M.D. informed that the prior permission of the state Govt. will have to be obtained for this proposal. The Board of Directors approved the proposal put forth by the Managing Director and passed the following resolution.
 
RESOLUTION NO.1025
 
Resolved that the existing area at Neuginagar belonging to Industries Department, Govt. of Goa, be developed into a theme concept aimed at promoting Goan Handicrafts by targeting he foreign and Indian tourists."
 
“Resolved further that the State Govt. may grant approval to the GHRSSIDC for undertaking he theme concept and that the conceptual design may be worked out by the empanelled architect of GHRSSIDC, Mr. Sidle Sardessai."
 
Resolved further that Managing Director be and is hereby authorized to take necessary action in the matter."
 
4) The matter of educational tour to Kerala in month of January 2007 was discussed and approved as it was felt that the tour would provide a valuable insight into the handicrafts sector of the state. The Board of Directors unanimously approved the tour programme to. Kerala in the month of January 2007. Approval was also granted for to and fro travel by air.
 
The meeting ended with a vote of thanks to the chair.