To, The Member (F) Prasar Bharti Secretariat, 2nd Floor, PTI Building Parliament street, New Delhi-

110001.

Dear Sir,

Subject: Internal Audit Report - DDK Fraser Road - Patna Period from April 2012 to January 2013

In response to Your Appointment Letter No: PB-7-(7)/2011-Fin/2012-13/82 Dated: 03rd August 2012. We have conducted Internal Audit of DDK Fraser Road, Patna for the Period of 1st April 2012 to 31st January 2013. We had carried our Internal Audit Work in the said DDK as per scope of the said Internal Audit Work as specified in the RFP. Based on our observation and explanation & Documentary evidence provided to us during our audit process we here by submit our findings and suggestions for your kind perusals.

Name of Station In-charge

: Shri Krishna Dev Kalpit (DDGE)

Sr. No 1 2 3 4 5 6 7 8 9

Segment of Report Function & Objective of DDK Patna Maintenance of Financial Records / Books of Accounts Verification of Cash & Bank Books Verification of Advances / Impress to Staff Recording & Collections of Revenue Verification of Expenses Voucher Fixed Assets / Capital Work In Progress Maintenance of Inventory / Physical Verification Statutory Compliance ( TDS/Service Tax) etc.

Page No:

2 3 4 9 13 17 18 18 20

Function & Objective of DDK Patna

The Door Darshan Kendra (DDK) Fraser Road - Patna is headed by the Station Director Shri Krishna Dev Kalpit (DDGE). It consists of following distinct wings for smooth functioning of organization:

Programme & Commercial Wing:

NAME DESIGNATION CONTACT NO

Shri Krishna Dev Kalpit

DDG (IC)

The Programme & Commercial Wings performs following services for DDK, Administration and Planning and Production of Programme. Administration of Commercial Transaction & Revenue Collection

Engineering Wing:
NAME DESIGNATION CONTACT NO

Shri D.K.Srivastava

Dy. Director

The main functions of this

This wing is headed by an Deputy Director General Engineer. Training etc.

wing include Planning of New Projects, Maintenance Aspects of Functional Centers, and

Administration & Finance Wing:

NAME DESIGNATION CONTACT NO

Shri A.K.Jha

(AO)

The Administration & Finance Wings performs following function for DDK, Administration of Finance for DDK i.e. Disbursements of Expenditure, Office Administration Expenditure of all the Wings and cash management. Maintenance and Recording of Financial Transaction of Kendra for Budget & Accounts. Administration of Payroll & Salary of DDK Staff.

News Wings:
NAME DESIGNATION CONTACT NO

Shri Puswapant

Dy. Director

This wing is headed by the Dy. Director and main function of this wing is related to Planning, Procurement and Telecasting of News at Regional level.

Maintenance of Financial Records/ Books of Accounts

As per the Accounting Manual of Prasar Bharati, the following books, records & registers & Financial Statements must be prepared & maintained at each DDK viz. for

better control and management of the finance & Budgetary requirement. During our audit we have observed only following BARE MINIMUM Books of Accounts & Financial Statements were being prepared & maintained MANUALLY OR IN MICRO SOFT EXCELL at the said DDK.

Maintenance of Books of Accounts:

Books of Accounts /Records Cash Book Bank Book Journal Book Sub-Ledger General Ledger Loan & Advance Register Sundry Debtors/ Creditors Register Temporary Advance Register Retrenchment Register Salary /Wages Register Current Actual Status Properly Maintained Properly Maintained Not Maintained Not Maintained Not Maintained Properly Maintained Not Maintained Maintained Not Maintained Maintained

Sr. No 1 2 3 4 5 6 7 8 9 10

Maintenance of Financial Statement:

Books of Accounts /Records Trial Balance Receipts & Payments Accounts Income & Expenditure Accounts Balance Sheet Current Actual Status Not Prepared Maintained Maintained Not Prepared

Sr. No i ii iii iv

We also observed that, following additional Register has also been maintained by the DDK office for the better control : Cheques Issue Register Register of TDS Deduction during the periods Broad Sheet Register Artist Ledger

We are of the opinion that there is a SUBSTANTIAL GAP between the DESIRED & the ACTUAL State of Affairs as far as Preparation & Maintenance of Books of Accounts & Financial Statements are concerned & there is an urgent need to remove these deficiencies by ensuring accurate, proper, regular & timely preparation & maintenance of the aforesaid Books of Accounts & Financial Statements.

2.2

Basis of Accounting:

Prasar Bharati Secretarial (PBs) is required to prepare & maintain its Books of Accounts & Final Accounts as per Accrual Based Double Entry System of Accounting w.e.f. 1.4.2000 & as such each DDO is also supposed to follow the accrual based double entry system of accounting only.

Current Position of Accounting: But during our audit, it was observed that a very raw form of hybrid basis (mixture of cash basis & accrual basis) of accounting is being followed in the said DDK as per the accounting convenience of the concerned staff members of various departments of Said DDK. Following are some to the process followed by the different departments of DDK
Accounts & Administration Department- Cash Basis of Accounting Commercial Departments Booked bills monthly basis ( i.e. Accrual Basis of Accounting)

The main reason for the same is the general lack of knowledge, the desired skill set, qualification among the accounting staff and infrastructure facilities like proper Accounting Software for preparation of accrual based double entry system of accounting. The accounts are being prepared & maintained manually only in excel spread sheets. There is an immediate need of purchasing & using an ERP Software package at the Prasar Bharati Secretariat Level as well as at the DDO level

3.1

Verification Cash & Bank Book

Bank Reconciliation Statements:

As per the specified mandate the DDOs are supposed to undertake the Bank Reconciliation Exercise on Regular Monthly Basis & are required to prepare & send the Monthly Bank Reconciliation Statements to the PAO concerned.

Current state of affairs:

The DDK Patna maintained following Accounts in State Bank of India Fraser Road Branch for different purpose of financial Transactions. Sr. No 1 2 3 Account Number Type of Accounts Current Account-Gen Current Account-Gen Current Account-Gen Purpose of Accounts Office Administration Expenditure Staff Salary Payment Deposits of Miscellaneous Receipt

32061471176 10151350403 10151350436

Bank Reconciliation Statements:

The Bank Reconciliation statement of Bank Accounts Number 10151350403 & 32061471176 were being prepared regularly in proper format of BRS and forwarded to concerned PAO office on monthly basis.

Accounts Number: 10151350436 maintained only for the purpose of deposition of miscellaneous receipt i.e. RTI Fees, Duplication of I Card Fees, License Fees, Training Fees, etc and after that these amount transfer to PBs Office Delhi.

But during our audit we observed that, total Credit balance available in this account as on 11th January 2013 is Rs: 10,32,566/- and balance of this account were not transferred since 11th July 2007 to PBs Office. Suggestion: It is strongly recommended that, balance lying in this account should be transfer /collected to/by PBs office as early as possible so that, Interest Loss on Such should be minimized.

3.2

Long Outstanding Cheques:

We also observed that, some of cheques were issued by the DDK but not presented in the bank for collection since very long and entry for such cheques also not reverse by the DDK office Following is Year wise summary of Old Outstanding Cheques as on 31 st January-2013.

Sr. No 1 2 3 4 5

Salary Account - 010328076791

Calendar Year 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Total

No. of Cheques O/s 255 166 35 1 22 479

Amount of Cheques 2,07,104.00 1,47,346.00 37,929.00 3454.00 29,09,179.00 33,05,012.00

ii. Other than Salary Account- OAE Accounts - 031149414184 Sr. No Calendar Year No. of Cheques O/s Amount of Cheques 1 2011-2012 419 5,04,323.00 2 2012-2013 918 41,21,192.00 Total 1337 46,25,515.00 Suggestion: Considering sizeable amount of outstanding cheques, DDK office must reverse entry of all the cheques or else all entries should be transferred to Suspense Account and transaction of this account should be under control of competent Authority so that probability of fraud would be minimized. 3.3 Of From The Cheques Debited Twice Or Wrongly Debited During The Audit We Obseved That As Per The Records Maintained At DDK Some Cheques Already Debited Has Been Either Wrongly Debited Or Debited Twise Same Account. The Details Are Given Below :-

Serial No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Date 10.11.2003 14.11.2003 14.11.2003 24.05.2005 23.05.2006 16.03.2007 16.03.2007 16.03.2007 16.03.2007 16.03.2007 16.03.2007 16.03.2007 16.03.2007 16.03.2007 28.04.2007 15.06.2007 15.06.2007 15.06.2007 15.06.2007 15.06.2007 15.06.2007 30.08.2007 24.11.2007 24.11.2007

Particular

Amount (Rs.)

Double Payment Cheque No. 799452,Which Is Already Paid On 09.02.02 Double Payment Cheque No. 061443,Which Is Already Paid On 17.08.01 Double Payment Cheque No. 796900,Which Is Already Paid On 03.12.01 Double Payment Cheque No. 831091,Which Is Already Paid On 31.05.05 Double Payment Cheque No. 926709 Dated 31.03.06 Double Payment Cheque No. 801184,Which Is Already Paid On 14.1103 Double Payment Cheque No. 799692,Which Is Already Paid On 14.11.03 Double Payment Cheque No. 799690,Which Is Already Paid On 14.1103 Double Payment Cheque No. 801181,Which Is Already Paid On 14.1103 Double Payment Cheque No. 801133,Which Is Already Paid On 14.11.03 Double Payment Cheque No. 801131,Which Is Already Paid On 14.11.03 Double Payment Cheque No. 799743,Which Is Already Paid On 14.11.03 Double Payment Cheque No. 801010,Which Is Already Paid On 14.11.03 Double Payment Cheque No. 801017,Which Is Already Paid On 14.11.03 Double Payment Cheque No. 162659,Which Is Already Paid in feb,07 Double Payment Cheque No. 801590,Which Is Already Paid On 10.11.03 Double Payment Cheque No. 799790,Which Is Already Paid On 14.11.03 Double Payment Cheque No. 801455,Which Is Already Paid On 10.11.03 Double Payment Cheque No. 801610,Which Is Already Paid On 10.11.03 Double Payment Cheque No. 801500,Which Is Already Paid On 10.11.03 Double Payment Cheque No. 801591,Which Is Already Paid On 10.11.03 Wrong Payment Through Cheque No. 223013 Triple Payment Vide Cheque No. 799402 Already Paid In Nov,03 Triple Payment Vide Cheque No. 799588 Already Paid On 14.11.03

11608 1500 1000 800 12000 3450 525 1000 500 950 700 3900 600 650 1000 8255 600 10000 10160 7700 6660 30000 950 700

25 26 27 28 29 30 31 32 33 34 35

24.11.2007 24.11.2007 24.11.2007 24.11.2007 24.11.2007 24.11.2007 24.11.2007 07.04.2008 19.12.2008 18.04.2009 05.06.2009

Triple Payment Vide Cheque No. 799470 Already Paid On 14.11.03 Triple Payment Vide Cheque No. 799484 Already Paid On 14.11.03 Triple Payment Vide Cheque No. 799535 Already Paid On 14.11.03 Triple Payment Vide Cheque No. 799561 Already Paid On 10.11.03 Triple Payment Vide Cheque No. 799594 Already Paid On 10.11.03 Triple Payment Vide Cheque No. 801467 Already Paid On 14.11.03 Triple Payment Vide Cheque No. 799645 Already Paid On 10.11.03 Double Payment Cheque No. 908461,Which Is Already Paid On 05.03.08 Double Payment Cheque No. 306592,Which Is Already Paid On 10.11.08 Double Payment Cheque No. 352539,Which Is Already Paid On 17.04.09 Double Payment Cheque No. 353715,Which Is Already Paid On 28.05.09 Total :

400 950 2088 6263 3429 2409 3725 500 1200 69489 1200 206861

3.4

Surprise Cash Verification:

3.4.1 Surprise Cash Checks were done on dated 26.02.2013 & the physical cash balance was matching with the cash balance as per cash book.

Following is the summary of Cash Balance available with Cashier: Particulars Amount in Rs: Cash Balance Including (Imprest & On Account Advance )as per 635544.00 Cash Book Physical Cash available with Cashier Cash Denomination : 1238.00 (1000 * 1 = 1000.00) + (100 * 2 = 200.00) (20 * 1 = 20.00) (10 * 1 = 10.00 ) + Coin : 8.00 Imprest Voucher 57886.00 Imprest Cash Balance 114.00 On Account Advance (Vouchers Received For Adjustment) 214434.00 Differences 361872.00 The Difference Of Rs: 3,61,872 Is Due To Non Receipt Of On Account Advance Voucher For Adjustment

3.3.2 During physical verification of Cash we found that some Postal Order (PO) & Demand Draft Brought By Trainee Lyieng with Cashier . Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Particular of Instruments DD No. 500326 PO- No _ 15F-010097 PO- No _ 15F-144968 PO- No _ 15F-010108 DD No. 187151 DD No. 151031 DD No. 766833 DD No. 557154 DD No. 504979 DD No. 504980 DD No. 23118 DD No. 557050 DD No. 525227 DD No. 72666 DD No. 496348 DD No. 2724 DD No. 3898 DD No. 961588 DD No. 556803 DD No. 112444 DD No. 556863 DD No. 228005 DD No. 2697 DD No. 889291 DD No. 889073 DD No. 889071 DD No. 889072 Total Date of Instruments 11.02.2013 24.12.2012 13.02.2013 13.12.2012 04.02.2013 28.01.2013 30.01.2013 27.01.2013 23.01.2013 23.01.2013 23.01.2013 23.01.2013 19.01.2013 18.01.2013 22.01.2013 21.01.2013 22.01.2013 18.01.2013 16.01.2013 15.01.2013 18.01.2013 17.01.2013 15.01.2013 17.01.2013 04.01.2013 04.01.2013 04.01.2013 Amount Rs 2247.00 10.00 10.00 10.00 562.00 1121.00 1685.00 1685.00 1685.00 1685.00 1685.00 1685.00 1124.00 1685.00 1124.00 1685.00 1685.00 13480.00 1685.00 1124.00 1124.00 28645.00 1124.00 562.00 1685.00 1685.00 1685.00 71925.00

Cash Transactions:

During our audit we observed that although theoretically cash transactions & payments are not allowed in DDO & all the payments have to be done through cheques only but practically only third party payments And Employees Salary are being done through cheques. In Some Cases payments to the employees & staff members except for Advances & LTC are done through cash only. The Details Are Given Below:-

Sr. No 1 2 3 4 5 6

Date 30.04.2012 04.05.2012 18.05.2012 16.08.2012 28.08.2012 06.11.2012

Amount ( Rs. ) 20000 27000 24680 14500 10500 10664

Name of Party Shri Krishna Deo Kalpit (S.D) Mr. A.K. Sharma & Others D.K.Srivastava Mr. S.K.Sinha Vrindavan Sweets & Chat Ram Plastic House

In our opinion all the expenditure payments (either to staff employees or to third parties) above Rs 1000/- shall be made through Account Payee Cheques only.

Verification of Advances & Imprest to Staff Phenomenon of High Imprest Balances:

During our audit, we observed that quite hefty amounts of imprest advances are being given to staff employees.

4.1

Following is the summary of Imprest or advances given to the staff:

Sr. No 1 2 3 4 5 6 Date Of Issue 04.03.2005 28.09.2006 16.10.2007 12.11.2007 20.11.2008 19.08.2009 Name Shri S.K.Singh (AE) Shri Bharat Prasad (FA) Shri Bhagwan Thakur (Steno) Shri Om Dutta Singh (Carpenter) Shri Rajesh Kumar Agarwal (LDC) Shri J.P.Sharma (PEX) Amount 8000 6000 500 1000 200 3000

7 8 9 10 11 12

12.01.2012 24.01.12 02.02.12 14.02.2012 30.03.2012 26.10.2012

Shri Atul Kumar (U.D.C) Shri Atul Kumar (U.D.C) Shri Khalique Ahmed (L.D.C) Shri Atul Kumar (U.D.C) Shri Atul Kumar (U.D.C) Shri Varun Kumar Singh (U.D.C) Total :

1000 2000 8000 500 2000 2500 34700

Suggestions: Above imprest advances should be recovered from the employees or Expense voucher of these advances should be obtained from the concerned employees at the earliest.

4.2

Phenomenon of Long Outstanding LTC/TA/TR. TA Advances:

During our verification of LTC/TA Advances we observed that many employees had received LTC/TA advances from the DDK but not submitted proof of their journey to office,

Following is Employees.
Sr. No 1 2 3 4 5 6 7

the

List

of

Outstanding
Amount ( Rs. ) 50000.00 6000.00 15000.00 5000.00 13500.00 18000.00 15000.00

LTC

Advances

by

the

Name Mr. A.K.Gupta Mr. Varun Kumar Singh Mr. G. Perumel Mr. D.K.Srivastava Mr. D.K.Srivastava Mr. D.K.Srivastava Mr. A.K.Gupta

Block Year 2011-2012 2011-2012 2011-2012 2012-2013 2012-2013 2012-2013 2011-2012

Following is the List of Outstanding TA Advances by the Employees.

Sr. No 1 2 Name Om Prakash Prasad Mr. Anil Kumar Amount ( Rs. ) 2000 2500 Date 03.07.08 07.02.11

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

Mr. Raj Kishore Shah Mr. A.K.Singh Mr. Lalit Kumar Mr. Lalit Kumar Mr. P.K.Jha Mr. P.K.Jha Mr. P.K.Jha Mr. A.K.Sinha Mr. A.K.Gupta Mr. Sarjun Das Mr. Nand Kumar Mr. Dinesh Prasad Mr. Rakesh Kumar Mr. Raj Kumar Nahar Mr. Raj Kumar Nahar Bharat Kushwaha Md. Shabbir Alam G.P.Mishra Mr. Sunil Kumar Mr. Mahesh Lepcha Dhruv Kumar Srivastava K.D.Kalpit K.D.Kalpit K.D.Kalpit K.D.Kalpit A.K.Sharma Balram Yadav A.K.Sinha Ajay Kumar Lalit Kumar Gulzari Choudhary Mahesh Lepcha Naveen Kr. Prasad Ravendra Kr. Ravendra Kr. R.K.Naher R.K.Naher R.K.Naher

4200 1600 5600 1500 5400 17000 29000 19980 20000 5000 5000 6000 28000 11000 17000 37500 9990 9990 9300 20250 20000 20000 16000 15000 8500 8000 5000 5000 5000 15000 15000 20000 11000 25000 10000 10000 5000 2880

06.09.08 16.09.08 22.10.10 01.02.11 04.01.12 16.03.09 15.06.10 29.11.11 05.05.11 25.11.08 25.11.08 05.09.11 27.08.10 13.10.11 23.02.12 14.08.09 29.11.11 29.11.11 07.09.11 29.11.11 23.03.12 27.04.12 24.05.12 31.07.12 07.09.12 08.11.12 23.03.12 07.09.12 22.08.12 11.07.12 19.07.12 25.05.12 25.05.12 24.05.12 17.08.12 24.05.12 12.09.12 18.05.12

Following is the List of Outstanding TR. TA Advances by the Employees.

Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13
Suggestion:

Name Nasid Ahmed Surendra Prasad Vimlendra Pathak Raj Kumar A.K.Gupta R.N.Singh C.H.Sharma Bhubneswar Thakur M.K.Thakur Brijesh Kumar R.C.Singh D.N.Trivedi K.D.Kalpit

Amount ( Rs. ) 18000 18000 10000 30000 50000 25000 50000 40000 25000 25000 25000 25000 45000

Date 25.08.08 01.09.08 01.10.08 08.09.10 01.10.10 23.09.11 29.05.09 06.10.09 23.09.11 23.09.11 23.09.11 23.09.11 07.08.12

As per the policy of Prasar Bharti, when advances are taken, The Claim should be submitted within one month from the date of return journey In Case Of (TA,LTC) And In Case Of Tr. TA Six Month From The Date Of Transfer, if it is not submitted within the stipulated time, outstanding advances will be recovered in one lump sum and claim will be treated as no advance is sanctioned and further penal interest @2% over GPF interest on the entire advance from the date of drawl to the date of recovery will be charged. We suggest that the above policy to be implemented and penal interest to be recovered

Recording & Collection of Revenue

Commercial Section:

5.1

The Commercial Section of this DDK is engaged in the telecasting of regional program (Produced by In House Producer Or Outside contractor) and Sponsored programme as per rate specified by the Higher Authority. During our audit we observed that, following process has been followed by the DDK 5.1.1 Commercial Section for Recording of Revenue.

For telecasting & Booking of revenue of these programs DDK maintained following Register Advertisement / Programme Booking Register Daily Schedule Register Q Sheet

On the basis of Programme Booking register DDK booked monthly bills of revenue in Doordarshan..

5.1.2 Collection of Revenue:

All the Debtors directly paid amount to Delhi PBs Office and after payment of such billing amount intimates to DDK office with relevant transaction trail and on the basis of this intimation DDK maintained details of collection from the customers.

Loophole in Current system:

In existing system DDK Office have not proper control over timely collection of revenue from the customer due this tendency out of Rs: 183.09 Lacs debtors, more than 75 % of them is falling under the category of More than 90 days.

Age wise summary of Outstanding debtors as on 31ST January 2013

Sr. No Name of Agency Total O/s Amount in Rs Ageing Wise O/s Amount in Rs Less than 90 Days More than 90 Days

1 2 3 4 5 6

M/s Lintas India Ltd. Mumbai IPRD (Govt. Of Bihar) M/s Lintas India Ltd. Mumbai Bihar State Child Labour Commission Patna M/s Lintas India Ltd. Mumbai Shradha Suman Creative Arts. New Delhi

101255.00 2973046.00 68764.00 101124.00 68764.00 189102.00

189102.00

101255.00 2973046.00 68764.00 101124.00 68764.00 -

7 8 9 10 11 12

Shradha Suman Creative Arts. New Delhi Shradha Suman Creative Arts. New Delhi Shradha Suman Creative Arts. New Delhi Fortune Advertiser Services. New Delhi Interface Communicating Pvt. Ltd. Mumbai R.K.Swamy BBDO pvt. Ltd, Chennai R.K.Swamy BBDO pvt. Ltd, Chennai Fortune Advertiser Services. New Delhi Fortune Advertiser Services. New Delhi R.K.Swamy Ltd. Chennai R.K.Swamy Ltd. Chennai Shradha Suman Creative Arts. New Delhi Shradha Suman Creative Arts. New Delhi Interface Communicating Pvt. Ltd. Mumbai M/s Redif Mission Pvt. Ltd. Kolkata Interface Communicating Pvt. Ltd. Mumbai Interface Communicating Pvt. Ltd. Mumbai

126068.00 100281.00 157585.00 51,573.00 58736.00

126068.00 100281.00 157585.00 51573.00 58736.00

78315.00

78315.00

13

362923.00 240675.00 85955.00 194832.00 49663.00 498541.00 278878.00 5730.00 258764.00 106880.00 88598.00

362923.00 240675.00 85955.00 194832.00 49663.00 498541.00 278878.00 5730.00 -

2587640.00 106880.00 88598.00

14 15 16 17 18 19 20 21 22 23

24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

IPRD (Govt. Of Bihar) Interface Communicating Pvt. Ltd. Mumbai IPRD (Govt. Of Bihar) IPRD (Govt. Of Bihar) IPRD (Govt. Of Bihar) IPRD (Govt. Of Bihar) IPRD (Govt. Of Bihar) R.K.Swamy Adv. Hydrabad NABAD- Patna RBI Mumbai M/s Child Birth Spacing Alliance Adv. Mumbai RBI Option Mumbai R.C.Arora Mumbai Suchna & Jansampark Bibhag M/s Planning & Dev. Dept. Bihar M/s Planning & Dev. Dept. Bihar M/s Planning & Dev. Dept. Bihar Result India Comm. Good Work Mumbai

405022.00 14063.00 367520.00 1402575.00 357372.00 324282.00 893430.00 255951.00 862546.00 496350.00 565839.00 196886.00 575766.00 56253.00 1459269.00 39708.00 410316.00 410316.00 16876.00 7504.00

405022.00 14063.00 367520.00 1402575.00 357372.00 324282.00 893430.00 255951.00 862546.00 496350.00 565839.00 196886.00 575766.00 56253.00 1459269.00 39708.00 410316.00 410316.00 16876.00 7504.00

44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61

Good Work Mumbai LIC Mumbai LIC Mumbai LIC Mumbai LIC Mumbai LIC Mumbai LIC Mumbai LIC Mumbai M/s Lintas India Ltd. Mumbai M/s Lintas India Ltd. Mumbai M/s Lintas India Ltd. Mumbai M/s Lintas India Ltd. Mumbai Result India Comm. Pvt. Ltd. Result India Comm. Pvt. Ltd. Shradha Suman Creative Arts. New Delhi Shradha Suman Creative Arts. New Delhi Fortune Result India

7504.00 11251.00 33752.00 30002.00 46878.00 37502.00 50628.00 50628.00 23439.00 103146.00 38202.00 16876.00 23877.00 28652.00 23877.00 23877.00 23877.00 28652.00

7504.00 11251.00 33752.00 30002.00 46878.00 37502.00 50628.00 50628.00 23439.00 103146.00 38202.00 16876.00 23877.00 28652.00 23877.00 23877.00 23877.00 28652.00

62

R.K.Swamy Mumbai Total

38202.00 1,83,09,717 .00

24,78,857.00

38202.00 1.58,30,860. 00

Suggestion:
On the basis of analysis of current system we suggest that , details of collection from the debtors should be updated as when amount received from the debtors so actual amount outstanding against each debtors correctly traces and effort for collection initiated on right direction

Verification of Expenses Voucher

During our audit, we did 100% vouching & verification of all the expenditure vouchers & found that all these were duly accompanied by the supporting bills & were properly recorded in Respective register. We have also observed following major irregularities ongoing through verification expenses voucher

Voucher Sanctioned after completion of 3 Month or More

During our audit, we observed that most of the expenses voucher has been cleared or sanctioned after completion of 3 month of Bill /Voucher date by the DDK office.

Sr. No 1 2 3 4 5 6 7 8

Date 15.02.1 2 15.02.1 2 15.02.1 2 15.02.1 2 15.02.1 2 15.02.1 2 15.02.1 2 15.02.1

Amou nt (Rs.) 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0

Name of Party Divya Divya Divya Divya Divya Divya Divya Divya

Month of Expens es 01.05.0 9 01.05.0 9 01.05.0 9 01.05.0 9 01.05.0 9 01.05.0 9 01.05.0 9 01.05.0

Sanction ed Month 15.02.12 15.02.12 15.02.12 15.02.12 15.02.12 15.02.12 15.02.12 15.02.12

Remarks -

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

2 15.02.1 2 03.04.1 2 03.04.1 2 03.04.1 2 03.04.1 2 24.02.1 2 13.02.1 2 13.02.1 2 13.02.1 2 13.02.1 2 13.02.1 2 13.02.1 2 13.02.1 2 13.02.1 2 13.02.1 2

0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0 1200.0 0

Divya Shil Nidhi Shil Nidhi Shil Nidhi Shil Nidhi Ashish Ranjan Rajiv Kr. Srivastav Rajiv Kr. Srivastav Rajiv Kr. Srivastav Rajiv Kr. Srivastav Rajiv Kr. Srivastav Rajiv Kr. Srivastav Rajiv Kr. Srivastav Rajiv Kr. Srivastav Rajiv Kr. Srivastav

9 01.05.0 9 02.04.0 9 02.04.0 9 14.04.0 9 14.04.0 9 10.06.0 9 01.05.0 9 01.05.0 9 01.05.0 9 01.05.0 9 01.05.0 9 01.05.0 9 01.05.0 9 01.05.0 9 01.05.0 9

15.02.12 03.04.12 03.04.12 03.04.12 03.04.12 24.02.12 13.02.12 13.02.12 13.02.12 13.02.12 13.02.12 13.02.12 13.02.12 13.02.12 13.02.12

Reimbursement of News paper bills without deduction of 15% Wastage Bill

During The Audit We Observe That News Paper Bills Has Been Rimbursed After Deducting 15% Wastage Amount From The Gross Amount.No Irregularities Has Been Found Regarding News Paper Bills

Fixed Assets / Capital Work in Process

Details regarding Fixed Assets have been properly maintained. We have verified Fixed Assets received by Administration department during the year on random basis as on 5th March -2013 as per fixed assets register maintained by the department and found no variances.

No records were being prepared for recording CWIP of the said DDO so the question of capitalization of CWIP doesnt arise.

Maintenance of Inventory / Physical Verification of Inventory

There were three types of Inventory maintained at said DDK at the different location, we have verified physical stock of all three types of inventory as on 4th March 2013 on random basis with relevant records maintained by the respective department and found No variance.

Following are the details item regarding physical verification of Inventory. Consumables :
Sr. No 1 2 3 4 5 6 7 Name of item Towel Broom Flower Duster Neptheline Ball Tea Costal Phenile Shop Case Qty as Per Register 31 5 19 8 7 7 4 Actual Qty. 31 5 19 8 7 7 4 Difference Qty -

Stationary :
Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Name of item Paper Pin Tag Note Sheet Stappler Pin Guard File Stamp Pad Ink Poker Duplicating Paper Stappler Register Ordinary Refil Jems Clp Pen Fax Role Qty as Per Register 5 55 11 41 75 17 5 13 4 10 24 15 11 1 Actual Qty. 5 55 11 41 75 17 5 13 4 10 24 15 11 1 Difference Qty -

Library :

During Physical verification of Library item we have verified physical items as per register of stock Maintained by the Library and found no variance.

Statutory Compliances of Service tax /TDS Service Tax Compliance:

We have verified Service Tax Registers & Other Details for the purpose of claiming Cenvat Credit of Service Tax were being prepared during the audit period and found following irregularities

DDK Office has not followed reverse mechanism for service tax paid on Security Service & Travelling Services as per notification no: 30/2012 Service Tax issued by the Department of Revenue.

Total of Rs: 20.12.00 Lcas Transportation Charges paid to M/s ITDC during the audit period, service tax amount is already included in bill amount but DDK office has not obtained CENVAT Credit of such service Tax.

Suggestion:
To availed /utilized CENVAT Credit of Service Tax paid DDK office must Maintain Or Retain invoice as per service Tax rules. 9.2 TDS Compliance:

We have verified TDS deduction register maintained by the DDK Office for Salary & Other Salary Expenses, & TDS Challan. No Acknowledgement Of Return Of First, Second & Third Quarters Are Found.In Some Of The Cases We Found That TDS Has Been Deducted From The Bank Book But No Entry Found IN The TDS Challan Register. We also observed that, on some expenses DDK Office not deducted TDS.The Details Are Given Below :Sr. No. 1 Date 08.06.201 2 2 19.06.12 M/s Pranav Motion Picture 33600 Party Krishna Consultancy Amount(Rs) 28500 Remarks TDS Has Been Deducted Inclusive Of Service Tax No TDS Has Been Deducted

06.07.12

BECIL

106920

TDS Of Rs 9937 Has Been Deducted In Bank Book But Amount Has Not Been Deposited TDS Of Rs 3609 Has Been Deducted In Bank Book But Amount Has Not Been Deposited TDS Of Rs 840 Has Been Deducted In Bank Book But Amount Has Not Been Deposited. TDS Of Rs 2000 Has Been Deducted In Bank Book But Amount Has Not Been Deposited TDS Of Rs 2400 Has Been Deducted In Bank Book But Amount Has Not Been Deposited TDS Of Rs 2400 Has Been Deducted In Bank Book But Amount Has Not Been Deposited TDS Of Rs 596 Has Been Deducted In Bank Book But Amount Has Not Been Deposited TDS Of Rs 2830 Has Been Deducted In Bank Book But

06.07.12

Shtyam Shivam Enterprises

180150

23.08.12

Munna Agency

42000

27.09.12

Nibha Shrivastava

4000

27.09.12

Anjani Kr. Sinha

5600

27.09.12

Kishuear Jabeen

6400

05.10.12

Raj Kishore Sharma

29810

10

29.10.12

Shanti Hiranand

28272

Amount Has Not 11 17.12.12 Arjun Choudhary 2430 Been Deposited TDS Of Rs 486 Has Been Deducted In Bank Book But Amount Has Not 12 31.12.12 Umesh Kr. 3800 Been Deposited TDS Of Rs 2350 Has Been Deducted In Bank Book But Amount Has Not 13 31.12.12 Tanwi Tejaswini 5600 Been Deposited TDS Of Rs 2820 Has Been Deducted In Bank Book But Amount Has Not 14 24.01.13 Tanwi Tejaswini 5600 Been Deposited No TDS Has Been Deducted

We are thankful to the station director and the other staff members for their kind co-operation during the audit.

For Sushil Jeetpuria & Co. Chartered Accountants Mayank Mohanka Partner