Audit Reports

Commissionerate of custom Commissionerate Countervailing duty CVD Crude palm oil CPO Director General of Foreign Trade DGFT Duty Entitlement Pass Book DEPB Domestic tariff area DTA Duty Exemption Entitlement Certificate DEEC Duty Free Entitlement Credit Certificate DFECC Duty Free......

Audit of Revenue Receipts - Indirect Taxes of the Union Government is conducted under section 16 of the Comptroller and Auditor General of India (Duties, Powers and Conditions of Service) Act, 1971. This Report presents the results of audit of receipts of customs duties. The......

{Paragraphs 3.1 to 3.10} Chapter IV: Incorrect application of General exemption notifications Duty of 4.53 crore was short levied due to incorrect application of exemption notifications. {Paragraphs 4.1 to 4.4} Chapter V: Mis-classification of goods M Duty of? 2.25 crore was short levied......

Lok Sabha) had desired that remedial/corrective action taken notes (ATNs) on all the paragraphs in the reports of the Comptroller and Auditor General, duly vetted by audit, be furnished to them within a period of four months from the date of laying of the audit report in Parliament. The......

- Union Government (Indirect Taxes - Customs) self-declared/ad-hoc norms in accordance with norms as finally/fixed by Norms Committee in the Director General of Foreign Trade (DGFT). Further, as per notification no. 52/2003-cus dated 31 March 2003, as amended, failure to adhere to these provisions......

due on or after 1 April 2007 but which have not been settled within 30 days of its final approval for payment by the Regional authority of Director General of Foreign Trade (DGFT) organisation. Test check of TED payment records in the office of the Joint DGFT, Ludhiana, revealed that in 154......

Report No. 31 of 2011-12 - Union Government (Indirect Taxes - Customs) CHAPTER IV INCORRECT APPLICATION OF GENERAL EXEMPTION NOTIFICATIONS The Government under section 25 (1) of the Customs Act, 1962 is empowered to exempt either absolutely or subject to......

New Delhi (SANDHYA SHUKLA) Dated : Principal Director (Customs) Countersigned New Delhi (VINOD RAI) Dated : Comptroller and Auditor General of India 36......

Projects were initiated without General Staff Qualitative Requirements (GSQR). Frequent changes to QRs by Users, excessive time overrun also contributed to non realization of the project deliverables and in many cases this eventually led to import of items._ 7.1 Introduction The Armament......

Ordnance Factory Board (OFB) functions under the administrative control of the Department of Defence Production and is headed by Director General, Ordnance Factories. 39 factories are responsible for production and supply of ordnance stores to the armed forces. 1.3 Integrated Financial Advice and......

(OFB) functions under the administrative control of the Department of Defence Production of the Ministry of Defence and is headed by the Director General, Ordnance Factories. There are 39 factories divided into five products based Operating Groups'"2 as given below: SI. No. Name of Group......

Many of the projects failed as these were taken up without firming up the General Staff Qualitative Requirements (GSQR) or frequent changes in Qualitative Requirements were made by the users. Excessive time overrun and non-acceptance of the final output by the users also led to closure of the......

was convened after 15 months and its findings and recommendations were awaiting approval of the Competent Authority as of December 2010._ Director General Border Roads (DGBR) issued instructions in September 2001 to Headquarters (HQ) Chief Engineer Project Sewak that in case of departmental......

Meanwhile, to meet urgent operational requirements of new gun for Artillery, the General Staff Qualitative Requirement (GSQR) for 155mm towed mounted gun was formulated in April 1997 indicating 45 Calibre barrel length as 'vital’ parameter and 52 calibre length as 'desirable'. While that being......

18 of 2005 Standalone Performance Audit of the (Performance Audit) Report** Directorate General of Quality Assurance (jjj) Pending more than 3 years upto 5 years 37. Report No. 4 of 2007 2 1"" Delay in execution/renewal of lease 38. 2 4** Follow up on Audit Reports 39. Unauthorised use of......

The study was based on the requirement projected by Army in General Staff Policy Statement (GSPS) of 1993. The salient feature of the bridge was single span up to 46 metre with Military Load Class 70 (MLC 70). Based on the recommendations given in statement of case for Modular Bridge 46 metre......

Audit of Revenue Receipts - Indirect Taxes of the Union Government is conducted under section 16 of the Comptroller and Auditor General of India (Duties, Powers and Conditions of Service) Act, 1971. The Report presents the results of audit of receipts of service tax. The observations......

Delhi (SUBIR MALLICK) Dated : Principal Director (Central Excise and Service Tax) Countersigned New Delhi (VINOD RAI) Dated : Comptroller and Auditor General of India 27......

the department is headed by Principal Chief Engineer (PCE) who is assisted by various chief engineers for track, bridge, planning, track machines, general matters etc. In addition, each Zonal Railway has a construction unit headed by a Chief Administrative Officer who is responsible for major......

After incurring an expenditure of ?1.00 crore, the work at Gonda Goods shed in NER was dropped with the approval of General Manager due to severe constraints of proper approach road. NER also proposed to drop New Chhapra Kacheri due to lack of space to provide covered shed and platform. >......

only such audit findings of significant materiality having regard to the totality of nature, volume and size of public spending in keeping with the generally accepted auditing standards and is intended to aid the Executive in instituting corrective actions/mechanisms to bring about improved......

wheelsets to M/s CONCOR without including profit margin in the price resulted in loss of ^19,78 crore_ Railway Board has empowered (October 2005) the General Managers of Production Units to reduce the profit margin up to three per cent while fixing cost of their product for sale with the......

Report of the Comptroller and Auditor General of India for the year ended March 2011 Laid in Lok Sabha/ Rajya Sabha on Union Government (Railways) No.32 of 2011-12 TABLE OF CONTENTS......

In each of the zones the Department is headed by a Chief Mechanical Engineer who reports to the General Manager of the Railway. The office of the Member (Mechanical) of the Railway Board guides the CME on technical matters and policy. At the divisional level, Sr. Divisional Mechanical......

as also other undertakings of the government set up under the statutes of the Parliament, where the audit is entrusted to Comptroller and Auditor General of India (CAG). This Report is important because CPSUs contributed approximately to one-third of the Gross Domestic Product in India in......

Accordingly, the central duties had generally kept steady pace with the value of output except for 2008-09 and 2009-10 when there was reduced growth in receipts compared to respective previous years. 3 Report No. 28 of 2011-12 - Union Government (Indirect Taxes - Central Excise) 1.5 Central......

- Central Excise) die cast rotor etc., availed cenvat credit of? 14.82 lakh for service tax paid by the head office at Vatva for the services of general nature utilised in its own unit as well as utilised by unit II Vatva and Kheda during the period April 2005 to March 2008. We found that the......

Delhi (SUBIR MALLICK) Dated : Principal Director (Central Excise and Service Tax) Countersigned New Delhi (VINOD RAI) Dated : Comptroller and Auditor General of India 29......

Report No. 27 of 2011-12 (Direct Taxes) OVERVIEW The Comptroller and Auditor General of India conducts the audit of revenues from direct taxes of the Union Government under section 16 of the Comptroller and Auditor General of......

New Delhi (MEENAKSHI GUPTA) Dated: 21 March, 2012 Director General (Direct Taxes) Countersigned New Delhi (VINOD RAI) Dated: 21 March, 2012 Comptroller and Auditor General of India 1 The returned income of ^ 17.67 lakh was accepted after scrutiny in December 2007. 57......

Audit of Revenue Receipts - Direct Taxes of the Union Government is conducted under section 16 of the Comptroller and Auditor General of India (Duties, Powers and Conditions of Service) Act, 1971, The Report presents the results of audit of receipts under direct taxes comprising Corporation Tax,......

with potential tax effect of 1,3 crore for assessment year 2002-03, 2,5 Non-Production of Records Under section 16 of the Comptroller and Auditor General's [Duties, Powers and Conditions of Service) Act 1971, assessment records are scrutinized in revenue audit with a view to securing an......

are overcharge of tax aggregating being regularly featured in the ^ 12,7 crore, One case is reports of the Comptroller and discussed below: Auditor General of India. CIT II, Jabalpur, Madhya Pradesh; AY: 2006-07 Northern Coal Fields Limited63 64 was levied interest of ?8,6 crore under section......

The General Financial Rules provide that an officer shall be held responsible for any loss sustained by the Government through fraud or negligence on his part. In the course of audit it was observed that while ADE received 14 ship sets by February 2008, the consignment containing the 15 ship......

Since the procurement was carried out under General Contract signed between the Russian side and the Indian side in 1999, no LD was levied on M/s RAC-MiG for delay in supply of pilot parachutes, as per provisions of the contract. The fact, however, remains that it took an overall 17 months......

Thus, though Director General Aeronautical Quality Assurance (DGAQA) had cleared the firm’s capabilities, in view of the capacity constraints of the firm, it was decided to split orders between L-l (M/s Sky tech) and L-2 (M/s Standard Casting) subject to the condition that L-2 accepts the rate......

In December 2009, Director General of Naval Armament requested HQ WNC to expedite the proposal for revision. The matter was referred to Principal Controller of Defence Account (PCDA), Navy in the same month and the concurrence was obtained in March 2010 and the revised rates for supervision......

Report No. 33 of 2011-12 • * ANNEXURE -I {Referred to in paragraph 1.4.1 (a)} List of autonomous bodies where internal audit was not conducted during the year 2010-11 Sl. No. Name of the Autonomous Body 1. IIT, Hyderabad 2. National Institute of...

Report No. 33 of 2011-12 CHAPTER VI: MINISTRY OF INFORMATION AND BROADCASTING Prasar Bharati Directorate General, Doordarshan 6.1 Idle investment and sub-optimal utilization of TV transmitters Doordarshan procured transmitters costing ' 63.46 lakh which......

CONTENTS Paragraph Page Preface V Overview vii CHAPTER I - GENERAL Annual accounts of autonomous bodies 1.1 1 Delay in presentation of audited accounts of Central 1.2 4 autonomous bodies before both the......

Report No. 33 of 2011-12 OVERVIEW General Annual accounts of autonomous bodies In 2010-11, there were 334 central autonomous bodies whose accounts were to be certified under Section......

Out of these 59 paragraphs, 12 paragraphs pertained to the Audit reports up to the year 1995. New Delhi (ROY MATHRANI) Dated : Director General of Audit, Central Expenditure Countersigned New Delhi (VINOD RAI) Dated : Comptroller and Auditor General of India 58......

The results of test audit of the financial transactions of the Central autonomous bodies under the various provisions of the Comptroller and Auditor General's (Duties. Powers and Conditions of Sen ice) Act. 1971 are set out in this Report. This Report includes 34 paragraphs. The audited......

of Human Resource Development, Government of India advised (February 2004) all Autonomous Bodies/Universities under its jurisdiction that interest on General Provident Fund (GPF)/Contributory Provident Fund (CPF) at the rate higher than the rate notified by the Government should not be paid to the......

ESIC in February 2010 withdrew the entire contractual work from the firm. Director General, ESIC issued the orders for forfeiture of the performance guarantee of the firm in February 2010 as the work of the college had suffered due to the unsatisfactory performance of the consultant.......

Government of India (GOI) prescribed and rev ised the rates of license fee to be recovered from Banks operating from General Pool accommodation at ' 220. ' 249. ' 279 and ' 337 per sq. m. effective from 16 March 1999. 1 April 2002, 1 April 2005 and 1 April 2008 respectively. However, no action......

Further, the imprudent decision of the DDA resulted in unfruitful expenditure of ' 9.41 crore and deprived the general public of intended facilities. The matter was reported to the Ministry in December 2011; their reply was awaited as of January 2012. 53 Report No. 33 of 2011-12 10.2 Blocking......

Report No. 33 of 2011-12 APPENDIX - I (Referred to in paragraph 1.1.1) Grants/loans released from 2006-07 to 2010-11 to Central autonomous bodies audited under Sections 19(2) and 20(1) of CAG’s (DPC) Act, 1971 ( in lakh) Sl. Ministry/Department...

for equipment (except rail coaches) and spares are managed by Marketing Division, headed by Executive Director (Marketing) and supported by Chief General Manager (Marketing). The Company had also established 10 Regional Offices and 17 District Offices throughout the country for marketing its......

Report No. 3 of 2011-12 CHAPTER IX: MINISTRY OF FINANCE \ (DEPARTMENT OF FINANCIAL SERVICES- V_ INSURANCE DIVISION) J General Insurance Corporation of India 9.1 IT Audit on SAP-Reinsurance Module Introduction General Insurance Corporation of India (Company) has been......

Out of 6733.57 crore exported in other regions, only 4.05 crore was claimed in ER and NR. Ministry attributed (February 2011) it to the general constraints faced by oil industry all over India and such constraints including comingling and operational complexities, as the reasons for......

of International Civil Aviation Organization (ICAO)’s Standards & Recommended Practices (SARPs) and Civil Aviation Regulations (CARs) of Director General of Civil Aviation (DGCA). AAI levies Route Navigation Facility Charges (RNFC) at all airports and Terminal Navigation Landing Charges (TNLC)......

Act (including Companies deemed to be Government Companies as per the provisions of the Companies Act) are audited by the Comptroller and Auditor General of India (CAG) under the provisions of Section 619 of the Companies Act, 1956. The accounts certified by the Statutory Auditors (Chartered......

On this being pointed out by audit, the Chief General Manager (CGM), Karnataka circle stated (March 2010) that the purpose of PCOs was to give access to public when the teledensity was poor and PCO as a revenue model would not work with the higher teledensity. The reply was not acceptable as......

* (i) Himalaya Diamonds (f 17.54 crore by Ushma), (ii) Superior General Trading (f9.69 crore by Space), (iii) Golden Stock Electronics (f 19.89 crore by Space), (iv) Leo Diamonds (f13.80 crore by Space) 276 Report No. 3 of 2011-12 Thus, the Company did not cany out due diligence in identifying......

Report No. 3 of 2011-12 CHAPTER XVIII Follow-up on Audit Reports (Commercial) Audit Reports of the Comptroller and Auditor General of India (CAG) represent the culmination of the process of scrutiny starting with initial inspection of accounts and records maintained in......

Heavy Power Equipment Plant (HPEP), Hyderabad, a unit of Bharat Heavy Electricals Limited (Company) placed Request For Quotation (RFQ) on General Electric Company (GE), USA (22/ 23 January 2007) for one number Flange to Flange Frame 9FA Gas Turbine Generator (F---F GTG)1 and two number......

Regarding FIMMDA rates, it stated that these were used by banks to make investment and were generally published only at the end of the month. Further, it stated that keeping in view the frequency of PFC bond issues and volatility in the market, FIMMDA rates cannot be applied as benchmark. The......

of test check of accounts and records of Central Government Companies and Corporations conducted by the officers of the Comptroller and Auditor General of India under Section 619(3) (b) of the Companies Act, 1956 or the statutes governing the particular Corporations. 2. The concept of......

Management contended that mandis allotted to FCI by the State Government are generally at disadvantageous places. The fact remained that the FCI failed to achieve the targets which were fixed in consultation with it and it resulted in extra burden to the food subsidy by 144.28 crore.......

Prices of industrial products are generally fixed for a certain period comprising six to nine months which are reviewed quarterly in view of frequent changes in the market rates of the products. Audit observed that products like Ammonium Nitrate (Lumps), Ammonium Nitrate (Melt), Methanol, off......

Tender was discharged (December 2005) based on the advice received (November 2005) from Solicitor General of India. 6. 26 February 2006, IHC The price offer of IHC received on 10 GNIT, three 5000 May 2006 was valid only up to 30 cum TSHDs November 2006 and was extended until (Based on M/s.......

No. 11 of 2007 Transaction Audit Observations Paras 10.1.1, 10.2.1, 10.3.4, 10.4.3, 3. PA 15 of 2008 General Insurance Companies Paras 2.3, 2.4, 2.5, 2.6, 2.7, 2.8, 2.9, 2.10, 2.11, 2.12, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 3.14, 3.15, 3.16(a),(b),(c),(d),(e), 3.17, 3.18, 3.19,......

ERP Enterprise Resource Planning ETV Elevated Transfer Vehicle F-F GTG Flange to Flange Frame 9FA Gas Turbine Generator FPQ Fixed Price Quotation GCC General Conditions of Contract GOI Government of India GoU Government of Uttarakhand GSMFWP Global System for Mobile communication based Fixed......

annum on rent of the Space Wing which was envisaged to be relocated in the new building after its renovation._ Reports of the Comptroller and Auditor General of India have highlighted1 delay on the part of the Mission/Ministry in renovating properties within a reasonable time frame leading to......

Report No. 16 of 2011-12 CHAPTER XX: GENERAL 20.1 Follow up on Audit Reports - Summarised Position Despite repeated instructions/recommendations of the Public Accounts Committee,......

Audits are conducted on behalf of the Comptroller and Auditor General (C&AG) as per the Auditing Standards1 approved by him. These standards prescribe the norms which the auditors are expected to follow in conduct of audit, and require reporting on individual cases of non-compliance and abuse,......

On being pointed out in audit (February 2008), the DEO stated (February, 2008) that 7212 students were inadvertently included twice in the general enrolment and the excess purchase was made accordingly. The DEO further stated (November 2009) that the uniforms had been distributed among the......

and Information Technology Department of Posts Non deduction of commission on purchase of revenue stamps Failure of the Chief Postmasters General. Gujarat. Maharashtra. North East and West Bengal Postal Circles to deduct commission in advance on purchase IX Report No 16 of 2011-12 of......

Directorate General Health Services (DGHS) in April 2002, i.e. 18 months after obtaining physical possession of the land. CDB. DGHS took more than 40 months in submitting the drawings to the Hospital/CPWD. m September 2005. The Hospital approached the CPWD. seeking preliminary estimates for......

There were also serious breaches of the General Financial Rules in selection of vendor, execution of contract and the canons of financial propriety indicating undue favour to the vendor._ The Department of Science and Technology (DST). New Delhi sanctioned (October 2006) US$90,000......

Functions of the Department of Expenditure also include formulation of Financial Powers Rules, General Financial Rules. Staff Car Rules etc., formulation of terms and conditions while appointing members for different committees and commissions, scrutinizing various proposals 147 Report No. 16 of......

16 of 2011-12 (ii) it did not ensure that release of funds to the executing agency was in consonance with General Financial Rules and instructions issued by Ministry of Finance in February 2000 which laid down that rush of expenditure in the closing months of financial year should be avoided;......

The Directorate General of Supplies and Disposals (DGS&D) is the Central Purchase Organization of the Government of India w orking under the aegis of the Department of Commerce (Supply Division), Ministry of Commerce and Industry. DGS&D has been assigned the task of concluding Rate Contracts......

but also general services such as street lighting, town drainage, connecting approach roads, etc. An Office Memorandum (OM) dated 25 August 1962 was issued by Government of India, wherein it was decided that service charges for Central Government properties constructed or acquired after 31......

of the original work and re-awarding a modified part of this work without the approval of the Ministry was irregular and violated the provisions of General Financial Rules which provide that for the purpose of approval and sanctions a group of works which forms one project, shall be considered......

However, neither did GSI realise Service tax from the clients, nor deposit the same to the Director General of Central Excise Intelligence (DGCEI). Due to non-payment of Service tax. DGCEI. Kolkata issued notice to GSI in March 2006 for payment of Service tax amounting ' 4.62 crore (including......

SDSC replied in April 2009 that: The tube was developed as a general preventive measure policy to keep in stock and to facilitate replacement as and when need arises; The main system, being of a single point nature, was initially linked with all PSLV/GSLV launch activities and ISRO......