Audit Reports
Defence
Report No. 14 of 2010 - Performance Audit of Canteen Stores Department Ministry of Defence
Overview
The present report contains the results of the performance audit of the Canteen Stores Department (CSD) under Ministry of Defence. The audit was conducted by the office of the Director General of Audit, Defence Services under the direction of the Comptroller and Auditor General of India. The audit was undertaken keeping in view of the large operational network of the Department. The audit objectives were to examine whether (i) financial operations of CSD were carried out in accordance with the rules and principles as applicable to Government Organisations (ii) the consumer goods of high quality were being provided to the beneficiaries at a price cheaper than the market rates and (iii) the business operations of the CSD had been managed efficiently.
Canteen Stores Department is responsible for providing the service personnel and their families with household goods at rates cheaper than the market rates. Evidence gathered in audit indicated that CSD had been able to provide household goods to the beneficiaries at prices cheaper than the prevailing rates in the market.
From a modest beginning six decades ago, CSD has also grown rapidly. The number of items of consumer goods available with CSD is more than 3000 and the sales have crossed Rs 6900 crore annually. The operations of CSD are carried out from its Head office in Mumbai and 5 Regional offices. It has a Base Depot in Mumbai and a chain of 34 Area Depots. About 3600 Unit Run Canteens (URCs), some of cater to 44 lakh beneficiaries. CSD provides goods to these URCs against their indents and receives payment through cheques. Though the URCs are governed by guidelines framed by the Ministry, the operational jurisdiction of CSD does not extend to these URCs.