MA 3/KOL/DVC/Audit Repurt,NHP017-18 mv ij wgm *Zarq-1M a)- - 1, U 60-rE131 U5 Eili- 1T m7z 2dt5fti t.7fl. arT4 ie. aq rft itg, zi awcnhT - 700054 Office of the Director General of Commercial Audit & Ex-Officio Member, Audit Board - I, Kolkata Branch : Resident Audit Office/ DVC (HQ) "n Floor, DVC Towers, V.I.P Road, Kolkata - 700054 0/ To The Chairman, Damodar Valley Corporation, DVC Towers, Kolkata Sub: Audit Report on the Project Financial Statements of National Hydrology Project of DVC for the year ended 31 March 2018. Sir. Please find the enclosed two copies of Audit Report along with the Project Financial Statement in respect of World Bank assisted National Hydrology Project for the year ended 31 March 2018 for your necessary action. Yours faithfull Enclo: As stated (Ajoy Kumar) Dy. Director / Telephone :Mfq?/ Director : 23553856, 3mft qfO -(5tm TT / Resident Sr. Audit Officer :23553876 tzFU / Fax : (033) 2355 0029, Email Address : mabKolkatal a cag.gov. in INDIAN AUDIT AND ACCOUNTS DEPARTMENT OFFICE OF THE DIRECTOR GENERAL OF COMMERCIAL AUDIT & EX-OFFICIO MEMBER AUDIT BOARD-1 NO.1, COUNCIL HOUSE STREET, KOLKATA -700 001 Audit Report - Unqualified Opinion Report of the Comptroller and Auditor General of India To, The Chairman. Darnodar Valley Corporation (DVC), DVC Towers, Kolkata - 700054. Report on the Project Financial Statements (PFS). We have audited the accompanying financial statements of the World Bank assisted National Hydrology Project Loan no. 8725-IN which comprise the Statement of Sources and Application of Funds in format of Interim Unaudited Financial Report (IUFR), Utilisation Certificate and Summary of Expenditures for the year ended 31 March 2018. These statements have been submitted by the Damodar Valley Corporation (DVC) to Ministry of Water Resources, River Development & Ganga Rejuvenation (MoWR, RD&GR) quarterly. These statements are the responsibility of the Project's management. Our responsibility is to express an opinion on the accompanying financial statements based on our audit. We conducted our audit in accordance with the Auditing Standards promulgated by the Comptroller and Auditor General of India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Our audit examines, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements present fairly, in all material respects, the sources and applications of funds of the World Bank assisted National Ilydrology project Loan No. 8725-IN for the year ended 31 March 2018, in accordance with auditing standards generally accepted in India. In addition, in our opinion, (a) with respect to Interim Unaudited Financial Reports (IJFRs), adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred; and (b) except for the ineligible expenditures as detailed in the audit observations, if any, expenditures are eligible for financing under the agreement. During the course of the audit, IUFRs and the connected documents were examined and these can be relied upon to support reimbursement under agreement. This report is issued without prejudice to Comptroller & Auditor General of India's right to incorporate the audit observations in the Report of Comptroller & Auditor General ol' India for being laid before Parliament/State Legislature. Audit Observations: The Project Financial Statement (PFS) in respect of World Bank assisted National Hydrology Project Loan No. 8725-IN for the year 2017-18, furnished by Damodar Valley Corporation (DVC) disclosed a total expenditure of Z 7.701 million. The details of the total expenditure of Z 7.701 million which has been admitted in audit as indicated below: (Anount in Z million) SI. Component Total Not admitted Admitted in No. Expenditure in audit audit incurred (as per PFS) 1 23 4 5=(3-4) 1. Component A 5.573 0.00 5.573 2 Componant B 0.000 0.00 0.000 3. Component C 0.000 0.00 0.000 4. Component D 2.128 0.00 2.128 Total 7.701 0.00 7.701 (Ajoy Kumar) Deputy Director MAB/KOL/DVC/Audit Repoit NH 21,016-17 O á G am tr3wd:m-a åTarcråau gr-bi,ciele .A.yen [ ½ - 9 nroT: aTrada ArdTcrar eimími / f..d (35ca.) 2" srl, . fr, t. awr4. tå it-, mimel - 700054 Office of the Director General of Commercial Audit & Ex-Officio Member, Audit Board - 1, Kolkata Branch : Resident Audit Office/ DVC (HQ) 2"' Floor, DVC Towers, V.I.P Road, Kolkata - 700054 10 The Chairman, 1 ? Damodar Valley Corporation, DVC Towers, Kolkata Sub: Audit Report on the Project Financial Statements of National Hydrology Project of DVC for the year ended 31 March 2017. Sir, Please find the enclosed two copies of Audit Report along with the Project Financial Statement in respect of World Bank assisted National Hydrology Project for the year ended 31 March 20 17 for your necessary action. l9~ \5Yoursfatfly Encio: As stated (Ajoy Kumar) Dy. Director à H / Telephone : fb j Director: 23553856, nr~rf la 1em / Resident Sr. Audit Officer :23553876 tkW / Fax :(033) 2355 0029, Email Address: mabKolkatala)cag.gov. in INDIAN AUDIT AND ACCOUNTS DEPARTMENT OFFICE OF THE DIRECTOR GENERAL OF COMMERCIAL AUDIT & EX-OFFICIO MEMBER AUDIT BOARD-I NO.1, COUNCIL HOUSE STREET, KOLKATA - 700 001 Audit Report - Unqualified Opinion Report of the Comptroller and Auditor General of India To, The Chairman, Damodar Valley Corporation (DVC), DVC Towers, Kolkata - 700054. Report on the Project Financial Statements (PFS). We have audited the accompanying financial statements of the World Bank assisted National Hydrology Project Loan no. 8725-IN which comprise the Statement of Sources and Application of Funds in format of Interim Unaudited Financial Report (IUFR). Utilisation Certificate and Summary of Expenditures for the year ended 31 March 2017. These statements have been submitted by the Damodar Valley Corporation (DVC) to MinistrN of Water Resources, River Development & Ganga Rejuvenation (MoWR. RD&GR) quarterly. These statements are the responsibility of the Project's management. Our responsibility is to express an opinion on the accompanying financial statements based on our audit. We conducted our audit in accordance with the Auditing Standards promulgated by the Comptroller and Auditor General of India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Our audit examines, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles used and significant estimates made by management, as well as evaluatin the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements present fairly, in all material respects. the sources and applications of funds of the World Bank assisted National 1Hydrolopv Pro'ect Loan No. 8725-IN for the year ended 31 March 2017, in accordance with auditing standards generally accepted in India. In addition, in our opinion, (a) with respect to Interim Unaudited Financial Reports (IUFRs), adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred; and (b) except for the ineligible expenditures as detailed in the audit observations, if any. expenditures are eligihle for financing under the agreement. During the course of the audit, ItJFRs and the conneced documents were examined and these can be relied upon to support reimbursement under agreement. This report is issued without prejudice to Comptroller & Auditor General of India's right to incorporate the audit observations in the Report of Comptroller & Auditor General of India for being laid before Parliament/State Legislature. Audit Observations: The Project Financial Statement (PFS) in respect of World Bank assisted National Hydrology Project Loan No. 8725-IN for the year 2016-17, furnished by Damodar Valley Corporation (DVC) disclosed a total expenditure of Z 0.608 million. The details of the total expenditure of Z 0.608 million which has been admitted in audit as indicated below: (Amount in Z million) Sl. Component Total Not admitted Admitted in No. Expenditure in audit audit incurred (as per PFS) 1 2 3 - 4 5=(3-4)_ 1. Component A 0.503 0.00 0.503 2. Componant B 0.000 0.00 0.000 3. Component C 0.000 0.00 0.000 4. Comn onent D 0.105 0.00 0.105 Total 0.608 0.00 0.60 (Ajoy Kumar) Deputy Director