From

Noel V. Samuel

House No.3

Housing Board Colony

Kanjirappally-686507

MOB: 09847585281

Email: noelvsam@gmail.com

To

The Registrar of Society

Office of the District Registrar

Coimbatore-18

Complaint against Church of God in India [full gospel] Society, Reg NO 18 of 1949

The above Society is registered for promoting Christian faith all over the country. The Society is actively engaged in preaching and admitting many people as its members. As the affairs of the Society is relating to the interest of the general public ,since they collect donation from general public and recipient of foreign contribution, I have acquired certain vital documents from your office and Income tax department ,Chennai by invoking available legal provisions to obtain such documents.

The following documents are available with me,

1. List of members as on 31.03.2009
2. By law of the Society
3. Consolidated balance sheet filed with you for the financial year 2004-05 to 2007-08 [four years]
4. Balance sheets of 8 independent offices [including national office and head office] of the society obtained from Income tax department Chennai.

On going through the above documents it is found that the Society is exploiting the general public by deviating from the by law and defrauding the public by not publishing the true and correct financial statements. The following irregularities are noted by going through the list of members.

1. Even though the Society is having so many churches and lakhs of members all over India, as per list of members filed with you there are 2614 members only. It is strange to note that not even a single female person  is admitted as  member
2. All the office bearers are Pastors of the Society and no lay member is admitted as office bearers.
3. The membership list furnished with you is fabricated. For example the name of the following members appears twice with different dates of admission.

Name	Admission No	Admission date	Admission No	Admission date
Rev K C John National Representative	1	May 1981	2383	May1990
P.G Mathews Now Asst. Overseer	2435	May 1990	2465	May 1989

4. Persons who are not members of the Society are holding key official post. For example pastor M.Kunjappy is the Regional Overseer in Kerala. Copy of a letter signed by him in the capacity of the overseer is enclosed as a proof. But no where in the members list his name appears. Hence he should be expelled from bearing any official post in the Society.
5. I am a member of this society for the last so many years. But my name is not appearing in the members list submitted to you by the Society. Copy of a letter issued by the pastor of Kanjirappally Church is enclosed.  Before coming to Kanjirappally I was a member of Pattom –Trivandrum Church. As I am trying to expose this scam the Society is trying to suspend me from the primary membership. Copy of show cause notice issued by Pattom church is enclosed for your reference.

The Society has failed to adhere to the section 17 [ii &iii] of the Tamil Nadu Societies Registration Act 1975 by not providing the financial statement to its members. The accounts of the Society were not properly audited as per section 16 of the said Act and balance sheets with fabricated figures were filed with you. The Society in connivance with the auditor, with the intention to cheat the members filed wrong financial statement with you. The following points will substantiate my statements.

                                               

1. Only consolidated statements are filed with you. For the financial year 2004-05 to 2007-08 financial statement of branches was not filed. The auditor Mr.G.Bakthavatchlm, No 71,III Main Road, K B Nagar,Adayar,Chennai-600020 has clarified vide his letter dated 27.01.2010,that as per instruction form Registrar of Society the practice of filing individual branch balance sheet was dispensed with. [Please refer to page No 14 of his letter, copy enclosed]
2. Consolidated balance sheets are without any annexure like details of fixed assets, unsecured loans etc. the above chartered accountant has informed me that annexure were not filed as the Registrar of Society has failed to ask for it. [Please refer to page no 7 of auditor letter dated 27.01.2010.]
3. The totals of the individual balance sheets are not tallying with consolidated one filed with you for the above four years. This clearly indicates that the Society is not giving any respect to the statutory provision of filing correct financial statements. The Society has defrauded the government and its members. The consolidated balance sheet filed with you is not true and genuine. Copy of the individual consolidation of branch balance sheet and the difference with consolidated balance sheet filed with you is enclosed.
4. Kottayam branch is having so many churches and properties, but in their balance sheet no fixed assets are shown. They are hiding the actual fact from the public with the intension of cheating. Income and expenditure statements are also not filed with IT department. Copy of Kottyam branch statements obtained from IT department enclosed.
5. Mulakuzha branch balance sheet [filed with IT department, Chennai] is not properly audited. The auditor has simply certified that ‘verified from the books of account’ without furnishing any auditor’s report. In the annexure the opening balance and closing balance of bank account is not tallying. Society official has not signed the balance sheet. Foreign contribution received by Mulkuzha branch is not taken [in that particular head] in the consolidated balance sheet for FY…….

Financial year	Opening balance	Receipts	Payments	Actual amount	Closing balance shown as per Schedule
2006-07	248258.58	10383494.31	10302236.50	329516.39	267452.40
2007-08	267452.40	9966692.00	9879106.14	355038.26	20835.55

6. For the financial year 2004-05 as per consolidated balance sheet no liability is shown as car loan outstanding but charged Rs. 3900040.02 as car loan repayment in the income and expenditure statement towards loan repayment. Payment of car loan installment is a capital expenditure and it should be treated in the balance sheet. For FY 2005-06 an amount of Rs.2696272.36 was shown as bank interest for car loan when there was no car loan amount outstanding in the balance sheet for this huge payment.
7. Closing balance of FY 2004-05 as per balance sheet is not tallying with opening balance in the receipt and payment statement for the FY 2005-06

Particulars	Closing balance as per balance sheet, FY 2004-05	Opening balance as per receipts &payment statt FY 2005-06	difference
Cash at Bank	10554672.03	10549198.60	5473.43
FD with the Bank	5929424.99	5927885.43	1539.56
Cash in Hand	118263.80	77609.93	46653.87
Total	16602360.82	16554693.96	47666.86

8. For the FY 2004-05 there is a difference of Rs.46127.30 in the cash balance when compared with individual statement. The auditor has given a strange explanation for this mistake. Please refer to his letter dated 27.01.2010 Page No.1
9. Amount of foreign contribution received was not mentioned separately in the consolidated balance sheet for the FY 2004-05.
10. For the year 2004-05 the excess of income is Rs.3610128.86 but an amount of Rs.9442595.76 is shown as excess of income over expenditure which is credited to the capital fund as per annexure of consolidated balance sheet. The auditor clarified that that the amount transferred to special fund- by kakinada branch is Rs.6237898.10. But no corresponding entry is available in the individual balance sheet of Kakinada branch.
11. Copy of the auditor’s letter dated05.11.09 &27.01.10 is enclosed in which the auditor is trying the white wash the whole issues. The explanations are not acceptable due to the simple reason that an audited financial statement should show the fair and true financial affairs of the audited firm. No amendment is possible after an audited balance sheet is presented. By furnishing reconciliation statement the auditor is trying to dilute the gravity of the entire scam.

The difference between consolidated balance sheet and individual balance sheet is arrived in respect of cash in hand, cash at bank, FD with the bank, foreign contributions received etc. There may be serious mistakes/omissions in other heads also. If there are mistakes in a balance sheet audited and presented by a chartered accountant, the intension of the Society is noting but to defraud the Registrar of Society and the general public. In view of the above an enquiry may be initiated against the Society and suitable action may be taken against the erring officials of the Society. The above financial irregularities are brought to the attention of IT department and Home ministry also.

Yours faithfully

Noel.V.Samuel

Enclosures

1. Letter dated 08.09.2008 signed by Mr.M.Kunjappy- unauthorized office bearer of the society
2. Copy of member ship letter dated 01.04.08 issued to me by the pastor of Kanjirappally church.
3. Copy of show cause letter dated……….issued to me by the pastor of Pattom-Trivndrum Church.
4. Copy of Kottayam branch audited balance sheets [without any fixed assets]
5. Copy of Mulakuzha Branch balance sheet annexure for FY 2006-07,2007-08
6. Statement of consolidation of individual balance sheet for 2004-05 to 2007-08 [four years]
7. Balance sheet of Kakinada Branch for FY 2004-05.
8. Auditor’s letter dated 05.11.09,27.01.10