OBSERVATIONS EMANATING FROM VOUCHING:

(A)COMPANY LEVEL:

(a)COMMON VOUCHING OBSERVATIONS DURING THE TIME OF AUDIT:

(1) OVERALL OBSERVATION ON THE DOMESTIC TRAVEL RULES AND ALLOWANCES POLICY DATED
(08.12.16):

(i)REIMBURSEMENT OF TOUR EXPENSES TO SERVICE AND OFF-SHORE EMPLOYEES:

1) The policy is silent on the reimbursement of Tour expenses to above stated employees.
But the reimbursements are made as per the criteria given by the apparent HOD to this concern
which is not specified in any of the policies put forward.
2) Even the service agreements and Works contract are silent on such reimbursements to the above
stated employees. However, there is a clause that the all expenses related or incidental to the work
are to be borne by the contractor or service provider and the same are not reimbursed except for
Mumbai Branch.
3) The same would be emphasised by way of a revision to the aforesaid policy to have better Internal
Controls and for avoidance of any influencies further.

(2)TELEPHONE AND TELEXES BILL:

1) There is no policy or criteria for the reimbursements made on telephone bills except for claims
made at corporate against post-paid bills a basic cut off rate is maintained.
2) It was observed during the time of Audit that in many of the cases Telephone and Telexes bill was
reimbursed to employees but at a later point of time a part of reimbursement was reversed and
recollected from employees without any specific criteria in both the cases.
3) In case of Pre-paid bills actual amount of bill is reimbursed without any specific limit would be
emphasised by way of sanctioned limits or provisions in policy to have better Internal Controls and
for avoidance of any influiencies further.

A) THUMUKUNTA:

(a)COMMON VOUCHING OBSERVATIONS DURING THE TIME OF AUDIT:

1) Level of employee is not specified against respective field in Tour Bill almost for all transactions in the
months of July-17 and August-17.

2) Supporting statements 100% work completed from the apparent HOD to this concern are not
produced during the Audit for all the works contracts at Plant namely:
 CONTRACTOR SAP
NAME CODE
a)Lucky Contractors 2003291
b)Dharma Enterprises 2007154
c)Sri Bhavishya Enterprises 2003234
d)Sri Raghavendra Enterprises 2003036
e)Sri Vigneshwara Enterprises 2003035

4) All the works contracts in the Plant are based on Lump sum payment methodology but Piece rated
payment is made viz., in contrary to the respective agreements.
5) Periodicity of the claim against respective contracts cannot be arrived as the same is not mentioned
in wage statement produced during the time of Audit.

(b)SPECIFIC VOUCHING OBSERVATIONS DURING THE TIME OF AUDIT:

1)VOUCHERS FOR WHICH SUPPORTINGS/APPROPRIATE SUPPORTINGS ARE NOT PRODUCED:

2)OBSERVATIONS RELATING NON-COMPLIANCE OF STATUTES:
3)OBSERVATIONS RELATING TO NON-COMPLIANCE OF POLICIES/CONTRACTS:
4)EXPENSES BOOKED AGAINST WRONG GENERAL LEDGERS:
5)EXCESS CLAIMS OF EXPENDITURE:

B) YAPRAL:
(a)COMMON VOUCHING OBSERVATIONS DURING THE TIME OF AUDIT:

1) Tour Claim report and other regular nature of Office-Maintenance and others are claimed
against one Document only viz., in contrary to the Tour policy and Expense claim policy.

(b)SPECIFIC VOUCHING OBSERVATIONS DURING THE TIME OF AUDIT:

1)VOUCHERS FOR WHICH SUPPORTINGS/APPROPRIATE SUPPORTINGS ARE NOT PRODUCED:

2)OBSERVATIONS RELATING NON-COMPLIANCE OF STATUTES:
3)OBSERVATIONS RELATING TO NON-COMPLIANCE OF POLICIES/CONTRACTS:
4)EXPENSES BOOKED AGAINST WRONG GENERAL LEDGERS:
5)EXCESS CLAIMS OF EXPENDITURE: