Salary bill of CITCO is 65 per cent of revenue

Gross profit is the total revenue minus the cost of goods, while net profit is ascertained by deducting operating expenses such as salaries and all other expenses such as taxes and interest paid on debt from gross profit.

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There are around 1,000 employees working in different units of CTICO, while a workforce of around 600 has been hired on contract through service providers.

During the period, almost all the units continued to record fall in revenue, which has emerged as cause for concern for the management, as the corporation has to generate funds to meet all its expenditures. CITICO receives no financial assistance from the Chandigarh Administration.

Hotel Mountivew in the red

The city’s first five-star hotel, Mountview, has been operating in the red for the last few years despite increase in rates. The hotel, which incurred a loss of Rs 98.35 lakh in the said period, paid salaries to the tune of Rs 10.05 crore (75 per cent) out of a gross profit of Rs 13.35 crore.

Shivalikview, another flagship hotel of CITCO, paid over 64 per cent (Rs 7.89 crore) of a gross profit of Rs 12.30 crore.

The salary bill of Lake Cafe was more than its earnings. The cafe earned a gross profit of Rs 1.65 crore, while it paid Rs 1.67 crore towards salaries of the staff.

Similarly, the corporation paid Rs 45.98 lakh in salaries in Baithak, while the earning of the unit was a mere Rs 37.34 lakh.

Reasons for plunging revenue

Lack of accountability, poor marketing and over staffing are said to be some of the main reasons for falling revenue of the corporation. A senior official, who wished not to be named, said that there was a dire need to hold officials accountable for the poor performance of the units they were heading. An action plan has to be prepared for revamping the corporation.

Official speak

UT Home Secretary-cum-Chairman of CITCO Anurag has acknowledged the fact that a majority of revenue goes towards paying salaries and other benefits to the employees. “Salaries of regular employees are high. Being a government-run organisation, we cannot take steps such as imposing pay cuts, like in private sector, as it will lead to litigation,” said Agarwal.

The decision of the corporation to provide two-year extension to retiring employees on Punjab pattern has added to the salary expenditure of the corporation.

“In the next two years, a large number of employees will retire. We are hoping that things will improve then,” said Agarwal.