Audit Reports

In July 2004, Integrated Headquarters Ministry of Defence (Navy) approached M/s Rosboronexport, Russia (ROE) to forward their commercial offer for 145 items of spares. In response to the enquiry, the firm, in May 2005. forwarded their commercial offer for 171 items of spares at a total cost of......

Report No. 20 of 2011-12 (Air Force and Navy) CHAPTER II: MINISTRY OF DEFENCE 2.1 Delayed acquisition of armaments for a frontline fighter aircraft The Indian Navy (IN) followed a flawed approach in acquiring its new......

Expenditure of 3.09 crore incurred on procurement of flares was rendered wasteful due to expiry of flare cartridges._ In March 1996, Ministry of Defence (Ministry) concluded a contract for supply of CMDS3 to be used on the MiG 21 Bison aircraft upgradation project. The contract, inter alia,......

Report No. 20 of 2011 -12 (Air Force and Navy) --* OVERVIEW ^ * The total expenditure of the Defence Sen ices during 2009-10 w as 1.45.781 crore. Of this, the Air Force and Navy spent 33.259 crore and 22.935 crore respectively. The......

by them till date (October 2010) even though the firm had despatched the 1 Aeronautical Development Establishment is a laboratory of India’s Defence Research & Development Organisation under the Ministry of Defence 2 1 USD = 49.97 3 1 USD = 46.00 82 Report No. 20 of 2011-12 (Air Force......

The Report relates mainly to matters arising from test audit of the financial transactions of Ministry of Defence. Air Force. Navy, Coast Guard, associated Research and Development Units and Military Engineer Services. Results of audit of Ministry of Defence, in so far as they relate to Army......

Report No. 20 of 2011-12 (Air Force and Navy) 9 ^ ANNEXURE-I ^ --- (Refers to Para No.1.11.2) List of Action Taken Notes not received as of 31 July 2011 Sl. Report No. and Para No. Pertains Brief Subject No. Year to 1. CA 18 of 2008-09 2.8 MOD...

Report No. 17 of 2012-13 (Air Force and Navy) CHAPTER II: MINISTRY OF DEFENCE 2.1 Management of Defence Offsets 2.1.1 Introduction An offset is a mechanism to partially compensate for the significant outflow of a......

Report No. 17 of 2012-13 (Air Force and Navy) y < OVERVIEW - The total expenditure of the Defence Sen ices during the year 2010-11 w as ^ 1.58.723 crore. Of this, the Air Force and Navy spent ?38.782 crore and ^27.285 crore respectively.......

The Defence Procurement Manual (DPM) prescribes that reasonableness of the price proposed has to be established by taking into account the competition observed from the response of the trade to the enquiry, last purchase price (LPP), estimated value as given in the indent, market......

The TTL of these aircraft was 20 years. The Ministry of Defence (MoD). in November 2005. concluded a contract with firm ‘M’ for overhaul and extension of assigned TTL of six aircraft to 30 years at a total cost of 28.1 million USD 128.22 crore1). The contract provided an option to the......

1.8 13 Receipts of the Air Force, Navy and Coast Guard 1.9 14 Appropriation and expenditure 1.10 15 Audit impact 1.11 15 CHAPTER II: MINISTRY OF DEFENCE Management of Defence Offsets 2.1 17 Inordinate delay in procurement and integration of a Radar Warning 2.2 26 Receiver system Inordinate......

The Indian Coast Guard (ICG) initiated (January 2007) the case for procurement of 12 ACVs. Following the Defence Procurement Procedure (DPP) - 200X. the ICG approved (May 2009) the draft SQRs and the Request for Proposal (RFP) was issued (August 2009) to 13 vendors. Only two vendors viz.......

The Report relates mainly to matters arising from test audit of the financial transactions of Ministry of Defence, Air Force, Navy, Coast Guard, associated Research and Development units and Military Engineer Services. Results of audit of Ministry of Defence, in so far as they relate to Army......

Report No. 17 of 2012-13 (Air Force and Navy) ANNEXURE (Refers to Para No.1.11.2) List of Action Taken Notes not received as of September 2012 Sl. Report No. and Para No. Pertains Brief Subject No. Year to 1. CA 16 of 2010-11 2.3 MOD Irregular...

I : INTRODUCTION 1.1 Foreword This Report relates to matters arising from the compliance audit of the financial transactions of the Ministry of Defence and its following organisations: Army; Inter Service Organisations; • Defence Research and Development Organisation and its......

Ordnance Factory Organisation 8.1.1 Introduction The Ordnance Factory Board (OFB) functioning under the administrative control of the Department of Defence Production, Ministry of Defence, is headed by the Director General Ordnance Factories. There are 39 factories 13 divided into five products......

CA No. 16 of 2012-13 (Defence Services) s- CHAPTER III: ARMY 3.1 Unauthorised use of defence assets and manpower for the benefit of Army Welfare Education Society Despite repeated instructions by the Ministry of Defence to stop......

CA No. 16 of 2012-13 (Defence Services) CHAPTER VI: DEFENCE RESEARCH AND DEVELOPMENT ORGANISATION 6.1 Avoidable extra expenditure in procurement of stores Incorrect decision by the Tender Purchase......

This resulted in import of ammunition costing 278.88 crore. (Paragraph 2.5) Irregularities in sanction of Defence Research Development Organisation projects Audit scrutiny of Project sanctions issued by the Defence Research and Development Organisation revealed procedural irregularities......

CA No. 16 of 2012-13 (Defence Sennces) r \ ANNEXURE-IA (Referred to in Paragraph 1.9) Position of outstanding ATNs Ministry of Defence - excluding Ordnance Factory Board i) Pending for more than ten years Sl.No. Report No. and Para No. Subject Year 1. Audit Report, Union 34*......

Project Management in Research and Development Establishment (Engineers) Staff Projects taken up for delivery of products required by Defence Services during the last 15 years achieved minimal success. Out of 19 closed Staff Projects only 3 underwent production, 2 partly achieved the......

and Control 2 1.4 Authority for audit 2 1.5 Planning and conduct of audit 3 1.6 Significant audit observations 3 1.7 Persistent irregularities in Defence Estates management 5 1.8 Response of the Ministry/ Department to Draft Audit 5 Paragraphs 1.9 Action Taken on earlier Audit Paragraphs 5......

The Assistant Accounts Officer of the Defence Accounts Department attached to the GE to function as accountant, primary auditor and financial assistant had also failed to point out the irregular billing for over six years. The overpayment to the NMC during the period from September 2004 to March......

43 CA No. 16 of 2012-13 (Defence Services) The cases were referred to the Ministry of Defence in January 2012; their reply was awaited as of July 2012. 5.2 Undue benefit to a supplier Director General Border Roads, in violation of Defence Procurement Manual 2006, the terms of the supply order and......

It relates to matters arising from the test audit of the financial transactions of Ministry of Defence pertaining to Army, Ordnance Factories, Department of Defence, Department of Defence Production, Defence Research and Development Organisation, Border Roads Organisation and Military Engineer......

CA No. 30 of 2013 (Defence Services) --- CHAPTER II: MINISTRY OF DEFENCE - ^ 2.1 Improper management of Defence land Despite instances of unsatisfactory management of Defence estates being repeatedly highlighted......

Ordnance Factory Organisation 6.1.1 Introduction The Ordnance Factory Board (OFB) functioning under the administrative control of the Department of Defence Production, Ministry of Defence is headed by the Director General Ordnance Factories. There are 39 factories 28 divided into five products......

of sub-standard stores without prior technical inspection from an unregistered and inexperienced firm Integrated Headquarters of the Ministry of Defence (Army) concluded a contract with a new and unregistered firm for supply of Mask Face Extreme Cold Weather for ?2.54 crore without prior......

CA No. 30 of 2013 (Defence Services) -\ OVERVIEW _/ Improper management of Defence land Despite highlighting cases of poor management of Defence estates in the various Audit Reports repeatedly and issue of specific......

CA No. 30 of 2013 (Defence Services) r \ ANNEXURE-I -/ (Referred to in Paragraph 1.9) Position of outstanding ATNs Ministry of Defence - excluding Ordnance Factory Board (i) Pending for more than ten years Sl.No. Report No. and Para No. Subject Year 1. Audit Report, Union......

The Ministry of Defence (MoD) accorded sanction, in September 2004, for provision of Army Mess and Auditorium at Delhi Cantonment, at an estimated cost of '31.78 crore. The CEDZ invited tenders, in September 2004, for the civil works estimated at '21.37 crore in the sanction. Tenders received in......

CA No. 30 of 2013 (Defence Services) CHAPTER V: DEFENCE RESEARCH AND DEVELOPMENT ORGANISATION 5.1 Extra avoidable expenditure by ANURAG Violation of the prescribed procurement procedure and......

and Control 2 1.4 Authority for Audit 2 1.5 Planning and Conduct of Audit 3 1.6 Significant audit observations 3 1.7 Persistent irregularities in Defence Estates management 5 1.8 Response of the Ministry/Department to Draft Audit 5 Paragraphs 1.9 Action taken on earlier Audit Paragraphs 5 1.10......

The Report relates to matters arising from the test audit of the financial transactions of Ministry of Defence pertaining to Army, Ordnance Factories, Department of Defence, Department of Defence Production, Defence Research and Development Organisation and Military Engineer Services. The......

Glossary of Terms ASW Corvettes Anti Submarine Warfare Corvettes ATAS Advance Towed Array Sonar ATDS Anti Torpedo Defence System ATN Action Taken Note BAPL BrahMos Aero Space Private Limited BSD Bow Sonar Dome CAIO Combat Action Information Organisation CFA......

This is because naval ships are complex defence systems, using advanced designs with state-of-the-art weapons, communications and navigation technologies. The long construction periods coupled with huge capital 1 Includes major warships like aircraft carriers, destroyers, frigates and corvettes......

The contract in respect of P28 is not signed yet. Incidentally, even though the Defence Procurement Procedure, approved in July 2005, stipulates that the contract between the Ministry and the shipyard is to be signed within a period of 12 to 18 months from the date of approval of the competent......

8 for the year ended 1998 Report No. 32 of 2010-11 the Ministry of Defence and Naval Headquarters. Subsequent audit examination consisted of scrutiny of documents/ records at the Ministry of Defence, Naval Headquarters and the Public Sector Shipyards (Mazagon Dock Limited, Mumbai and Garden......

Chapter 4: Delivery Management 4.1 Nomination and readiness of Shipyards In view of the declining force levels of the Indian Navy, the Defence Acquisition Council (DAC), headed by the Raksha Mantri, in March 2003 considered the Navy’s 15-Year Shipbuilding Plan envisaging ‘X’......

Chapter 5: Procurement 5.1 Procurement Procedure Defence Procurement Procedure prescribes a separate chapter on the indigenous Naval Ship Building Procedure as it was thought that Naval......

Although India has attained a credible capability in warship-building over the years, the three Defence PSU shipyards tasked with this responsibility, i.e. MDL, GRSE and GSL, differ widely in their role, areas of strength and outputs. Put together, the present ship building capacity of these......

Audit was conducted between May 2009 to October 2009 and then from September to November 2010 through test check of the records of the Ministry of Defence, Integrated Headquarters (Navy), field formations like Warship Overseeing Teams at Mazagon Dockyard Limited / Garden Reach Shipbuilders and......

This procedure will be applicable to acquisition of warships through indigenous design and construction by Defence Public Sector shipyards. Acceptance of Necessity 5. The proposal for design and construction of the ship, either singly or as a shipbuilding project plan is to be included in the......