SAR Reply

Para No

Subject matter of the Para

Reply given by the institute

Para 1

Part – II : Section – C:

Incorrect depiction of Capital Fund

            As per Schedule – 1 to the Balance Sheet of CIMFR, Dhanbad as t 31 March 2015, a sum of Rs. 1683.17 lakh was shown as capitalized. Though the said sum included Rs. 706.58 lakh towards work-in-progress (Schedule – 6), non –exhibition of the same in Schedule-1 resulted in incorrect depiction of ‘Capital Fund as at 31 March 2015’. Despite being pointed the matter in August 2015, no clarification was furnished.

 

 

 

The amount of Rs.706.58 Lakh has been taken into account in Schedule 1 also under Govt. Grant Utilised for Capital Expenditure. As and when the adjustment for the amount of Work-in-Progress items comes in, the same is deducted from Schedule 6 from Work-in-Progress and transferred to Fixed Asset in the same Schedule under Building Head. No further treatment is given in Schedule 1 at the time of Adjustment.

 

Para 2 :

Laboratory Reserve Fund Overstated :

 In  terms  of CSIR , New Delhi letter no. 1 (11)/Acctt/2000-2001 dated 04.09.2000 , the amount of interest earned on investment of sponsored / consultancy / Grant-in-aid projects fund adjustable and or refundable to the funding agency should not be included in Laboratory Reserve Fund.

 

 Schedule – 2   To the Balance Sheet as at 31 March 2015 , exhibited Rs.2949.55 lakh towards generation of Laboratory Reserve. Scrutiny revealed that the said amount included Rs.769.12 lakh comprising 28 receipts vouchers pertaining to the credits given directly by the Banks under the head R07112 – Interest on investment of sponsored/Consultancy project fund . The details are shown below:

                                                                                                                                         Rs. In Lakh

Sl.No.

Receipts Voucher No.

Date

Amount

Sl.No.

                                           

Receipts VoucherNo.

Date

Amount

1.

490

30.05.14

90.41

15

431

13.10.14

18.72

2.

502

08.07.14

27.28

16

571

17.10.14 

   2.79

3.

601

22.07.14

18.08

17

581

17.10.14

4.65

4.

599

22.07.14

36.17

18

611

17.10.14

4.65

5.

605

22.07.14

9.04

19

621

17.10.14

11.23

6.

682

31.07.14

27.12

20

631

17.10.14

18.72

7.

683

31.07.14

39.32

21

901

25.11.14

32.95

8

814

22.08.14

40.69

22

941

29.11.14

28.25

9.

817

22.08.14

45.21

23

741

26.12.14

18.83

10.

832

26.08.14

18.13

24

010

07.01.15

37.34

11.

850

29.09.14

4.52

25

780

13.03.15

136.14

12.

860

29.09.14

4.52

26

310

17.03.15

4.65

13.

870

29.09.14

4.65

27

330

17.03.15

59.56

14

421

13.10.14

4.65

28

810

30.03.15

20.85

 

 

Total

369.79

 

 

Total

399.33

Total = (Rs.369.79 lakh + Rs.399.33 lakh = Rs. 769.12 lakh)

Though asked for, the reasons for booking interest portion of TDR in respect Sponsored/Consultancy project fund under LRF was not intimated to Audit. Therefore, LHRF was overstated to the tune of Rs.769.12 lakh as on 31st March 2015.

 

 

As External Cash Flow has small proportion of Govt Aided Projects, Investment of External Cash Flow mainly includes Fund of Sponsored as well as Consultancy projects, interest on which is accounted under Laboratory Reserve Fund as per the CSIR Guidelines. Further if any interest out of Govt Aided Projects is taken into LRF, the same is being refunded/credited to the concerned projects through Transfer Entries as being done through TE No.14, dt – 30/08/2014 {attachment para 2 A.bmp and para 2 B.bmp  } .

 

Para 3

Overstatement of Liabilities :

Scrutiny of Receipts and Payments Accounts for the year 2014-15 revealed that total funds received from CSIR during the year was Rs.7800.00 lakh . Of the funds received, the following payments were made :

                                                                                                                                    Rs. In Lakh

Plan Head

                   2715.13

Non-Plan Head

                   1266.62

Central Administration

                   4374.49

Total Payment

                   8356.24

Excess payment against receipt

                     556.24

 

            Though CIMFR , Dhanbad made excess payment of Rs.556.24 lakh against receipt of Rs.7800.00 lakh they exhibited unspent grant as Rs.72.58 lakh in Schedule 5 as on 31st March 2015 instead of Rs.(-) 556.24 lakh. This resulted in overstatement of liability  to the extent of Rs.628.81 lakh {Rs.72.58 lakh minus (-Rs.556.23)} . Though the matter was pointed out in August 2015 , no comment was offered.

 

 

Transfer of fund from CSIR Hqrs may not exactly the same as that of Budgetary allocation since the receipt out of R06 and Last year’s Cash Balance is also adjusted. The unspent balance of Rs. 72.58 lakh as depicted in the Balance sheet is an accounting figure and is a closing balance against the opening balance of Rs. 321.95 lakh. The accounting of unspent grant with respect of Grant received by the lab and expenditure thereon is explained in the enclosed statement.(attachment Para 3 unspent.xls)

 

Para 4 :               

Reduction of value of Fixed Asset: Though no asset was disposed off during 2014-15 , CIMFR , Dhanbad deducted the value of the following assets from the Assets Account i.e. Schedule 6 to the Balance Sheet as on 31st March,2015 :

 

Sl. No.

|Description

Deduction during the year from gross block

1.

Apparatus and equipments

123.05

2.

Computer equipment / major computer software

13.30

3

Office equipment

23.45

4

Furniture and fixture

  0.57

 

                                                     Total

160.37

 

            Though asked for in August 2015, the reasons for reduction of the value of assets as shown above were not intimated.

 

 

 

 

 

 

 

Some unserviceable assets had been disposed off during 2011-12 but could not be accounted for during 2011-12 has now been taken during 2014-15 (attachment PARA 4 C Voucher 1415.xls)

 

 

Para 5 :

Discrepancies in balances in two sets of records:

The value of advances outstanding against as on 31st March,2015 as shown in the annual accounts should have been tallied with the records maintained by CIMFR , Dhanbad . Examination revealed that the value of the advances as recorded in the two sets of records maintained by them differ as detailed below:

 

Particulars of the advance

Amount as per Schedule 8 to the Balance Sheet as on 31st Maarch,2015

Amounts as per Reports submitted to CSIR for the quarter ending 31st March,2015

Difference

Non-interest bearing advance

103.00

98.24

4.76

Advances to Government Agencies, Suppliers and Contractors

607.01

603.83

3.18

 

 

There is no difference as such as mentioned by the Audit. Non-interest bearing advances include Rs.4.764 Lakh pertaining to Festival Advance & Advances to the families of Employee, who die in harness and Rs.103.000 Lakh as reported to CSIR pertain to TA/LTC/Others Advances only. Likewise, advances to Govt. Agencies, Suppliers and Contractors include Rs.603.825 lakh pertaining to advances on account of Capital Items and Rs.3.184 Lakh pertaining to Advances on account of Revenue Items {Attachments para 5 A.bmp and para5 B.xls for  ready reference }.

 

Para 6

Current Asset understated: In Schedule-8 ‘Current Assets, Loans, and Advances etc. Appended to the Balance Sheet of CIMFR, Dhanbad for the year ended 31.03.2015, an amount of Rs.498.27 lakh was shown as ‘Deposit withy Bank on Margin Money’ under the head Cash and Bank Balance . On enquiry, the confirmation of balance by the bank was furnished in respect of 58 Letters of Credit involving Rs.648.87 lakh. Therefore, the balance of ‘Deposit with Bank on Margin Money’ as shown in the Annual Account, was understated by an amount of Rs.150.60 lakh as on 31 March, 2015.

 

 

There is no understatement of Current Asset as the figure appearing in Schedule 8 against “Deposit with Bank on Margin Money” pertains to Institutional Fund for 42 items only. The difference amount of Rs.150.60 Lakh pertains to “Deposit with Bank on Margin Money” pertains to External Cash Flow (Sponsored/ Consultancy/ GAP Projects), subsidiary records for which had already been shown to Audit.

 

Para 7

Bank reconciliation statement: Scrutiny of Bank Reconciliation Statement for the month of March,2015 in respect Account No.30256736794 of Hirapur  Branch revealed that of Rs.603.32 lakh involving 385 items debited by bank between |April,2013 and March,2015, Rs.493.78 lakh involving 373 items was not debited from the cash book till June 2015 . On being pointed out, CIMFR , Dhanbad stated in August ,2015 that the bank had been requested to provided the pension scroll and the matter would be set right shortly.

 

 

 

Efforts are on for settling the pending BRS items and updated statement is enclosed.(attachment para7.bmp)

 

Para 8

Static Balance: On scrutiny of Schedule-8 to the Balance Sheet as at 31st March,2015 revealed that the following balances were not liquidated even after expiry of more than one year :-

 

 

Sl. No.

Name of the Head

Year from which appearing

Amount (Rs.)

1.

Deposits with customs/Govt. Departments/Bodies

2012-13,2013-14&2014-15

1441745.00

2.

Security Deposit

2013-14 &2014-15

3362709.00

 

                Though asked for in August,2015 , the reasons for non-liquidation of the aforesaid balances were not intimated to Audit.

                                     

 

 

Regarding static balance under deposit with Customs/ Govt.  Departments, we are in touch with the department of Customs and the amount will be settled soon.

 A major portion of the Static Balance on account of Security Deposit has been settled during the current financial year and the balance now is Rs.1038097.00