Audit Reports

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......

Report of the Comptroller and Auditor General of India for the year ended March 31, 2011 Union Government (Commercial) Report No. 2 of 2011-12 General Purpose Financial Reports of......

Based on the recommendation of the COPU, the Department of Public Enterprises (DPE) issued general guidelines in November 1994. These guidelines basically left it to the Board of Directors of the PSEs to devise socially responsible business practices in accordance with their Articles of......

1956 as also other enterprises of the government set up under the statutes of the Parliament, where the audit is entrusted to Comptroller and Auditor General of India (CAG). A government company is defined in section 617 of the Companies Act, 1956 as a company in which not less than fifty one per......

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. As per the above provisions, the Statutory Auditors......

of the Corporate Governance provisions As on 31 March 2011, there were 466 CPSEs under the audit jurisdiction of the Comptroller and Auditor General of India. These included 329 government companies, 131 deemed government companies and six statutory corporations. Majority of these CPSEs,......

As on 31 March 2011, there were 466 Central Government Public Sector Enterprises (CPSEs) under the audit jurisdiction of the Comptroller and Auditor General of India. These included 329 government companies, 131 deemed government companies and six statutory corporations. This Report deals with......

Reserve Bank of India, Insurance Regulatory & Development Authority, The Pension Fund Regulatory and Development Authority, Comptroller Auditor General of India), Ministry of Finance (Central Board of Direct Taxes), The Institute of Chartered Accountants of India (ICAI), Chambers industry......

Report No. 2 of 2011-12 CHAPTER 5 Compliance with DPE Guidelines 5.1 Introduction The Bureau of Public Enterprises (BPE) was set up in 1965 to provide policy and overall guidance to the Central Public Sector Enterprises (CPSEs) and act as a...

1

Report of the Comptroller and Auditor General of India for the year ended March 2011 Union Government (Defence Services) Air Force and Navy No. 17 of 2012-13 (Compliance Audit) //? N......

outlived its life in March 2004 itself, it was only in May 2007 that Air Headquarters (Air HQ) could place an indent for its replacement on Director General Ordnance Factory. Kolkata on turnkey basis, at a total cost of ^4.76 crore (May 2007) to be completed by December 2007. 38 Report No. 17 of......

Further, reference data for price estimation were generally based on data available from Integrated Logistics Management Services (Air) for the orders which had actually materialised. The contention of DNAM is not tenable as a recently contracted reference price lower by a baffling 683 per cent......

(S.K.JAIPURIYAR) New Delhi Principal Director of Audit Dated: Air Force Countersigned New Delhi (VINOD RAI) Dated: Comptroller and Auditor General of India 57......

Report of the Comptroller and Auditor General of India on hybrid satellite digital multimedia broadcasting service agreement with Devas Union Government Department of Space Report No. 4......

Report No. 4 of 2012-13 PREFACE This Report of the Comptroller and Auditor General of India for the period ended March 2012 has been prepared for submission to the President under Article 151 of the Constitution. The Report......

replies that based on the direction of the Space Commission to annul the Devas contract, the matter has been discussed with the Additional Solicitor General and a note submitted to the Cabinet Committee on Security (CCS) for its decision. February 2011 CCS gives directions to annul the agreement......

Instances of how decision-making proved disadvantageous to DoS reported in various Audit Reports of the Comptroller and Auditor General are discussed in Annexure-4. DoS stated in August 2011 that it had addressed this matter. 4.3.1. Dr. G. Madhavan Nair performed multiple roles between 2004......

Principal Director of Audit, Dated: 30-04-2012 Scientific Departments Countersigned New Delhi (VINOD RAI) Dated: 01-05- 2012 Comptroller and A uditor General of India Report on hybrid satellite digital multimedia broadcasting service agreement with Devas 57......

expenditure of 10.43 crore on establishment related expenditure of Regional Pay and Accounts Office, Dhanbad, out of Coal Mines Labour Housing and General Welfare Fund. Scrutiny of Appropriation Accounts of Grant No. 10-Ministry of Coal for the financial year 2010-11 revealed that an......

the largest share of non-tax revenue (69 per cent) comes from user charges levied by various departments, which offer economic services to the general public. Interest receipts constituted 10 per cent of non-tax revenue, while dividends and profits accounted for around 14 per cent. There......

8825.00 101152.18 7824.06 10508.01 1000.94 2010-11 116627.84 11413.44 103039.34 10213.75 13588.50 1199.69 Surrender of savings 5.3 Rule 56(2) of the General Financial Rules, 2005 provides that savings in a grant or appropriation are to be surrendered to the Government as soon as these are......

The Comptroller and Auditor General of India submits four Appropriation Accounts pertaining to different sectors of activities of the Government, viz. Civil, Defence, Posts and Railways, along with his Report under Article 151 of the Constitution every year, to the President, who causes......

4059-Public Works 2576.77 1624.59 63 11. 4070-Capital outlay on Other Administrative Services 72.26 65.06 90 12. 4075- Capital outlay on Misc General Services 3.11 2.17 70 13. 4402-Capital Outlay on Soil and Water Conservation 1.44 0.84 58 14. 4403-Capital Outlay on Animal Husbandry 5.46 4.41 81......

*,*' Report of the Comptroller and Auditor General of India Union Government Accounts of the Union Government No. 1 for the year 2011-12 Report of the Comptroller and Auditor General of India......

Union Government Finances and Accounts: 2010-11 This Report discusses the comments of the Comptroller and Auditor General of India on the accounts of the Union Government and analyses the finances of the Union Government for the year 2010-11. It also contains an......

11 -12) (29.83) (-14.09) Net Revenue (Item No. 10 and 5,544.09 9,781.55 9,021.86 6,346.14 13) (-39.57) (14.47) Dividend Payable to General Revenues Current year 5,543.34 6,608.46 4,917.36 4,941.25 (17.50) (-10.86) Deferred Dividend of previous 0.00 0.00 year Total Dividend Payment 5,543.35......

The Railway Budget is presented to both Houses of Parliament separately from and ahead of the General Budget. Though the Railway Budget is separately presented to Parliament, the figures relating to the receipts and expenditure of the Railways form part of the General Budget, since the receipts......

From 1 April 1950, a separate Railway Budget is being presented to the Parliament prior to presentation of the General Budget every year. Though the Railway Budget is presented to Parliament separately, the figures relating to the receipts and expenditure of IR are also shown in the General......

-1842236 2 Revenue - Miscellaneous Expenditure (General) 3 Voted 6000000000 1000000000 7000000000 6377972813 -622027187 Revenue - Working Expenses - General Superintendence and Services Charged 530000 1022000 1552000 3649842 2097842 4 Voted 42036855000 1485478000 43522333000 43574432897 52099897......

Dividend Under the 'Separation Convention' IR is required to pay dividend to the general revenues on the capital advanced by the Gol at a rate determined periodically by RCC. Extra Budgetary Resources ofIR other than general budget support and Resources internally generated resources Gross......

Report of the Comptroller & Auditor General of India for the year ended March 2011 Laid in Lok Sabha/Rajya Sabha on Union Government (Railways) Railways Finances Report No. 3 of......

I Unauthorised works Our test check of sanctions revealed continued non-compliance to the Ministry’s orders by the Army Officers. The General Officer Commanding-in- Chief (GOC-in-C) HQ Southern Command Pune, issued sanctions in January 2008 and March 2008 for undertaking special repairs to......

Our scrutiny of records revealed that between the period June 1992 and January 1998 a parallel correspondence had been going on between the General Officer Commanding-in-Chief, Southern Command and the Army HQ for revocation of the lease on the plea that the land was required by the......

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......

The Border Roads Regulations, as amended in December 2004, empowered the Director General Border Roads (DGBR) to approve execution of works through contracts in consultation with Integrated Financial Adviser Border Roads (IFA/BR), where the estimated cost of the work is beyond 5 crore. As per......

authorities, absence of data base of sanctions, splitting of sanctions etc._ Expenditure out of public funds is regulated by the provisions of General Financial Rules. Such expenditure is invariably authorised through specific sanctions issued by the competent authorities at various levels......

Many of the projects failed as these were taken up without firming up General Staff Qualitative Requirement. Time overrun, development of improper deliverables, etc contributed to project failures. (Chapter 1) Projection of inflated requirement of ammunition Despite holding surplus stock,......

Report of the Comptroller and Auditor General of India for the year ended March 2011 Union Government (Defence Services) Army and Ordnance Factories Report No. 16 of the year 2012-13......

The Ministry stated that the success rates of Staff Projects had been relatively low due to infirm General Staff Qualitative Requirement (GSQR), changing user requirements, lack of industrial base to support the transfer of technology (ToT) and bulk production, time overruns, etc. These......

No. 18 of 2005 Standalone Performance Audit of the (Performance Audit) Report* Directorate General of Quality Assurance (lii) Pending more than 3 years upto 5 years 35. Report No. 4 of 2007 2 Delay in execution/renewal of lease 36. 2.4** Follow up on Audit Reports 37. Unauthorised use of Defence......

The Management had thus not only failed to adhere to general principles of procurement and the prescribed time schedule for effecting procurements but also caused undue delay in supplying necessary equipment to Telecom circles in sensitive areas like NE and J&K despite relaxing tender......

The Company generally exported finished products immediately after filing application for advance licence and getting the file number and availed the benefit of incentives after completion of exports of products (like Naphtha, Furnace Oil (FO) and High Speed Diesel (HSD) under AAS. 101 Report......

Piyarelall Import and Export Limited, a sister concern of RPFPL 2 Committee consisting of General Manager (Marketing), General Manager (Finance) and General Manager (P&A) 22 Report No. 8 of 2012-13 M/s. Baid Shipping Agency confirming receipt of original shipping documents for taking delivery of......

171 Report No. 8 of 2012-13 15.3.4.3 Deficiencies in actual sales operations A. Normal Sales (i) Sale of products below the market price Generally, the Company fixed monthly prices based on various inputs such as sales and inventory of the preceding month, market scenario (domestic and......

Report No. 8 of 2012-13 r x CHAPTER XVII v_) 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......

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......

This indicated a general absence of concern for the financial health of the Company which was reeling under severe cash crunch during this period. The matter was reported to the Ministry in January 2012; their response had not been received (May 2012). (b) Overpayment of T63.22 lakh towards......

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......

ERP Bharatiya Reserve Bank Note Mudran (Private) Limited Chapter-IV Ministry of Finance (Insurance Division) 12 of 2006 Performance Audit on the General Insurance System Software Chapter 7 11 of 2007 Transaction Audit Observations Para 10.2.1, 10.3.4 and 10.4.3 207 Report No. 8 of 2012-13 No.......

The Management stated (August 2010) that they had no back up data of other similar projects in Sudan. As the items in the tender were not general in nature due to quality and quantity issues, independent survey was also not possible. We find it difficult to accept the Management's contention as......

8 of 2012-13 avoidable loss of 19.08 crore in this case points towards a weak inventory procurement system and a general governance deficit. The matter was referred to the Ministry (September 2011); their response was awaited (May 2012). 93......

13.1.5.2 Works Manual of NHAI stipulated that entire process from the date of receipt of bids to award of contracts should generally be completed within 40 days. Audit however observed that in contravention to the above provisions the Management took 52 to 321 days beyond the above......

However, the Company failed to finalise the contract within the validity period of the offer (March 2007) as per the general terms and conditions of the tender. Consequently, LI withdrew the offer in April 2007. Though there were clear directions of Central Vigilance Commission to re-tender......

of follow up action to recover 43.64 lakh 55.99 55.92 Insurance Company 29.72 29.72 Limited Non-collection of co-insurance dues from ICICI Lombard General Insurance Company Telecommun Mahanagar Excess Payment of pension contribution - Maharashtra 14.40 14.40 ications Telephone Nigam circle......

ERP Bharatiya Reserve Bank Note Mudran (Private) Limited Chapter-IV Ministry of Finance (Insurance Division) 12 of 2006 Performance Audit on the General Insurance System Software Chapter 7 11 of 2007 Transaction Audit Observations Para 10.2.1, 10.3.4 and 10.4.3 207 Report No. 8 of 2012-13 No.......