Audit Reports

C HAPTER – II S OCIAL S ECTOR 5 2.1 Introduction This Chapter of the Audit Report for the year ended 31 March 2019 deals with audit findings on State Government Departments under the Social Sector. During 2018-19, total budget allocation of the...

51 67.15 3 Power 1377.03 260.56 43.57 1007.35 1311.48 95.24 4 Secretariat Economic Services 3732.3 8.05 0.72 667.74 676.51 18.13 5 Public Works 993.27 208.29 51.8 371.9 631.99 63.63 6 Rural Development 543.85 75.08 0.05 390.35 465.48 85.59 7 Water Resources 559.39 73.43 41.13 254.14 368.7..................

Revenue receipts grew by ` 2421.36 crore (18 per cent) over the previous year. The increase was contributed by Tax revenue by ` 252.47 crore (31 per cent), non-tax revenue by ` 242.69 crore (66 per cent), share of net proceeds of divisible Union taxes and duties by ` 1197.35 crore (13 per..................

43.87 59.26 73.52 7 Information and Public Relation 73.59 15.93 0.00 29.80 45.73 62.14 8 Fire Services 35.30 15.14 0.53 18.57 34.24 97.00 9 State Tax and Excise 46.19 18.00 0.00 13.95 31.95 69.17 10 Administration of Justice 32.82 0.00 0.00 24.97 24.97 76.08 11 Motor Garages 21.20 0.00 0.00..................

The 11 ROE = (Net Profit after taxes minus preference dividend) ÷ Shareholders’ Fund/Equity; W here, Shareholders’ Fund/Equity=Paid up Share Capital plus Free Reserves and Surplus minus Accumulated Loss minus Deferred Revenue Expenditure. 12 Sl. No. 1 and 3 of Appendix 6.1. 13 Including..................

of Road works funded through State Road Fund The State Government established the State Road Fund ( SRF) in the year 1998 earmarking part of sales tax on diese l and motor spirit (petrol). Under Uttar Pradesh State Road Fund Rules, 2013, SRF was to be utilised for repair, renewal, maintenance ,..................

20 Against the contracted amount of ` 47.55 lakh (excluding service tax), payments of ` 48.70 lakh (including taxes) was made to the firm against the contract as of March 2019. Audit Report ( General and Social Sector ) for the year ended 31 March 2019 16 Table 2. 2: Land requirement as per..................

cases Amount involved Extra expenditure in execution of extra items of work 1 1.09 1 1.10 Loss due to non -submission of claims for refund of service tax in exempted works 1 1.49 1 1.48 Infrastructure and Industrial Development Department Avoidable loss due to not claiming refund of Service tax on..................

15 Project consisting of main building (convention centre), museum building, parking services, site development, Public Health Engineering facilities , electrical and fire systems, solar panels etc . 16 Revised to ` 864.99 crore in November 2016 . 17 Cons truction of convention c entre and..................

i TABLE OF CONTENTS Reference to Particulars Paragraph(s) Page(s) Preface v Overview vii -xiv PART -A FUNCTIONING OF PUBLIC SECTOR UNDERTAKINGS (PSUs) INTRODUCTION General 1-2 1-2 Accountability framework 3-4 2-3 Submission of accounts by Public S...

ROCE of two PSUs in the competitive environment sector was negative during 2016 -17 to 2018 -19 as Earnings before Interest and Tax ( EBI T) was negative i n all the three years. (Paragraph 3.17 ) Erosion of Net worth As on 31 March 2019, out of the 24 PSUs, there were 12 PSUs with..................

Return on Equity is a measure of performance calculated by dividing net profit after tax by shareholders’ fund. Return on capital employed is a financial ratio that measures the company’s profitability and the efficiency with which its capital is used and is calculated by dividing the..................

CHAPTER -V: MINING RECEIPTS 5.1 Tax administration The levy and collection of receipts from mining activities in the State is governed by the Mines and Minerals (Development and..................

CHAPTER -VI: TAXES ON VEHICLES, GOODS AND PASSENGERS 6.1 Tax administration The levy and collection of motor vehicles tax and fee in the State is governed under..................

Further, all cash tra nsactions in ICDEOL have been discontinued and all fees and funds including from sale of prospectus are being collected online from the session 2018-19 onwards. An amount of ` 16.20 lakh has been recovered from the official and steps would be taken to recover the..................

The respons ibility of providing solid waste management services (collection, segregation, stora ge, transportation, processing, and disposal) in urban areas of the State is vested wit h Urban Local Bodies and the Department of Urban Development. Performance Audit on 'Solid Waste Management in..................

No. 1 2 3 4 5 6 7 Col. No. (2 * 6) 8 Col. No. (5 - 7) Sl. No. Year Flying Hours for payment Service Tax % Rates Applied per hour Annual amt. Paid* Rate without enhancement Total Amount without enhancement Excess 1. 2013 578.30 12.36 379758 (337984+ ST 41774) 21,96,14,051 379758 (337984+ ST..................

and Khatouni No. etc. were available on screen for verification with online data of HIMBHOOMI but it was not co- related with the application of circle rates of the Revenue Department. In the absence of software with the provisions of calculation and correlation with circle rates of the..................

return of five per cent on the paid up share capital contributed by the St ate Government, subject to a ceiling of 50 per cent of the profit after tax. However, as per their latest finalised accounts received during the year 2018-19, none of the PSUs had earned profit. Return on Equity 4.15..................

(Revenue Sector) CHAPTER-1 GENERAL Trend of revenue receipts 1.1 1-5 Analysis of arrears of revenue 1.2 6 Arrears in assessments 1.3 7 Evasion of tax 1.4 7-8 Refund cases 1.5 8 Response of Government/Departments towards Audit 1. 6 8-9 Departmental audit committee meetings 1.6.1 9 Response of..................

of Revenue Sector comprising 23 paragraphs relating to non/short levy of VAT/CST, State Excise, Stamp duty and Registration Fee, Passenger and Goods tax and Forest Receipt, with revenue implicat ion of ` 173.63 crore. Some of the major findings are mentioned below: General The total revenue..................

of the accounts of such Company and the provisions of Section 19A of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 shall apply to the report of such test Audit. Thus, a Government Compa ny or any other Company owned or controlled, directly or..................

The total tax effect of the audit findings that are featured in this Report is ` 88.57 crore . Compliance audit is an independent assessment of whether a given subject matter (an activity, financial or non -financial transaction, information in respec t of an entity or a group of entities)..................

No. Name of the unit Name of Assesse/TIN Year of case (Month and year of assessment) Name of the items Rate of tax leviable/ levied Turn - over Tax short levied Penalty leviable Nature of Audit observation 1 CTO -3, Raipur M/s Southern Batteries Private Limited, Raipur (22961308760) 2013 -14..................

17 CHAPTER II : COMMERCIAL TAX 2.1 Tax administration Commercial Tax Department is one of the key revenue earning departments in the Government of Chhattisgarh. The Commercial..................

Cha pter V : Functioning of PSUs (Power Sector) 91 Rate of Return, which is calculated by dividing the Profit After Tax (PAT) by the sum of all such investments counted on historical cost basis . Investment for this purpose include equity , interest free loans, subsidies and grants for..................

Table 6.6: Sector wise profit making PSUs (Non -Power Sector) Sector No. of Profit earning PSUs Pr ofit A fter Tax (PAT) (` in crore) Percentage of profit to PAT PSUs in Monopolistic Sector 2 30.98 15.32 PSUs with assured income 6 171.13 84.60 PSUs in Competitive Environment 1 0.16 0.08 Total 9..................

in key fiscal aggregates in 2019 -20 compared to 2018 -19 Revenue R eceipts  Revenue Receipts of the State decreased by 1.88 percent  Own Tax Receipts of the State increased by 3.22 per cent  Non -Tax Receipts increased by 3.00 per cent  State’s Share of Union Taxes and Duties..................

The Own tax revenue and non -tax revenue increased by 3.22 and 3.00 per cent respectively and could not achieve the lev el anticipated in budgetary projections . The State continued to be dependent on Government of India with 53 per cent of the revenue coming from State Share of Union Taxes..................

wise , contribution of Industry and Agriculture sector s in GSDP of Chhattisgarh was higher than that of national GDP, whereas Service s sector and Taxes/ Subsidies on products contributed less to GSDP of the State compared to their share in GDP of India. Chart 1.2 reveals that during the five..................

61 crore provided for creation of capital assets under Capital Section. Further, Office expenses of `0.75 crore, Payment of Professional Services of `8.56 crore, and Maintenance Work of `0.29 crore have been booked under Capital Major Heads instead of Reve nue Major Heads. The expenditure..................