Abbreviations & Acronyms

AARs Annual Appraisal Reports

ABL Allied Bank Limited
ACMA Association of Cost & Management Accountant
ACR Annual Confidential Report
ADB Asian Development Bank
ADBP Agribusiness Development & Diversification Project
AGM Assistant General Manager
AGP Auditor General of Pakistan
AGPR Accountant General of Pakistan Revenues
AHAN Aik Hunar Aik Nagar
AIR Audit Inspection Report
AJK Azad Jammu & Kashmir
ALR Annual Land Rent
ATDC Afghan Trade Development Cell
ATL Associated Technologies Pvt. Limited
AVL Available Vender List
BAC Board Audit Committee
BCF Billion Cubic Feet
BI&SE Board of Intermediate and Secondary Education
BMB Bait-ul-Mal Board
BoD Board of Directors
BoG Board of Governors
BoM Board of Management
BoP Bank of Punjab
BOPL Byco Oil Pakistan Limited
BOQ Bill of Quantity
BOT Build Operate and Transfer
BoT Board of Trusties
BPD Biological Production Division
BPS Basic Pay Scale
BQIP Bin Qasim Industrial Park
BSC Banking Service Corporation
CA Chartered Accountants
CAA Civil Aviation Authority
i
CBR Central Board of Revenue
CCTV Close Circuit Television
CDGK City District Government Karachi
CDR Cash Deposit Receipt
CDTC Ceramics Development and Training Complex
CDWP Central Development Working Party
CEC Cotton Export Corporation
CED Center for Economic Development
CEO Chief Executive Officer
CFC Common Facilitation Centre
CFO Chief Financial Officer
CIA Chief Inspector of Armament (POFs) / Chief Internal Auditor
CLA Cantonment Land Administration
CLDP Car Loan Deprecation Policy
CMA Controller of Military Accounts
CMS Consumer Meter Station
CNG Condensed Natural Gas
CNIC Computerized National Identity Card
COCO Company Owned and Company Operated
COO Chief Operating Officer
CPF Contributory Provident Fund
CRL Costal Refinery Limited
CSD Canteen Stores Department
CSF Chairman Special Fund
CSO Chief Scientific Officer/ Central Sales Office
CSP Child Support Programme
CSR Corporate Social Responsibility
CV Curriculum Vitae
DAC Departmental Accounts Committee
DFIs Development Financial Institutes
DFO Deputy Financial Officer
DGCA&E Directorate General of Commercial Audit & Evaluation
DGR Director General Registration
DHA Defence Housing Authority
DMD Deputy Managing Director
DPC Departmental Promotion Committee
ii
DSC Departmental Selection Committee
DWP Development Working Party
E&P Exploration and Production
ECC Economic Co-ordination Committee
ECNEC Economic Committee of National Economic Council
EDF Export Development Fund
ELF Express Loan Facility
ENP Exploration and Production
EOBI Employees’ Old-Age Benefits Institution
EOT Extension of Time
EPB Export Promotion Bureau
EPSL ENAR Petro-tech Services Limited
EPZA Export Processing Zones Authority
EPZs Export Processing Zones
ERD External Relation Department
ERP Enterprise Resource Planning
ERRA Earth Rehabilitation & Reconstruction Authority
EVP Executive Vice President
FATA Federally Administrated Tribal Area
FBR Federal Board of Revenue
FG Federal Government
FIA Federal Investigation Agency
FIR First Information Report
FMU Financial Monitoring Unit
FoB Free on Board
FoB Freight on Board
FRR Final Revenue Requirement
FWBL First Woman Bank Limited
GBP Great Britain Pound
GCP Ghee Corporation of Pakistan
GDN Goods Dispatch Note
GDP Gross Domestic Product
GDS Gas Development Surcharge
GFR General Financial Rules
GHPL Government Holding Pvt. Limited
GHQ General Headquarter
GIDS Gas Infrastructure Development Surcharge
iii
GM General Manager
GoB Government of Balochistan
GoP Government of Pakistan
GPA Gwadar Port Authority
GPF General Provident Fund
GPO General Post Office
GSA Gas Supply Agreement
GSD Gas Supply Deposits
GST General Sales Tax
GTDMC Gujranwala Tools, Dies and Moulds Centre
HBA House Building Advance
HBFCL House Building Finance Company Limited
HBL Habib Bank Limited
HEC Higher Education Commission/ Heavy Electrical Complex
HMC Heavy Mechanical Complex (Pvt) Limited
HOPD Head Office Payment Department
HPU Horticultural Project Unit
HR Human Resource
HRB Human Resource Budget
HRD Human Resource Development
HRNC Human Resource & Nomination Committee
HSD High Speed Diesel
HSEQC Healthcare, Safety and Quality Control
HVAC Heat Ventilation and Air-cooling System
HWL Halliburton Worldwide Limited
IAD Internal Audit Department
IAS International Accounting Standards
IBM International Business Machines
IC Investment Committee
ICA Intra Court Appeal
IFA Individual Financial Assistance
IFC International Finance Corporation
ILS Integrated Logistic Support
INTOSAI International Organization of Supreme Audit Institution
IPC Interim Payment Certificate
IPOs Initial Public Offerings
IPP Independent Power Project

iv
ISGS Inter State Gas Services
ISI Inter-Services Intelligence
IT Information Technology
JJVL Jamshoro Joint Venture Limited
JV Joint Venture
KBCA Karachi Building Controlling Authority
KCIP Korangi Creek Industrial Park
KFHA Korangi Fisheries Harbour Authority
KIBOR Karachi Inter-Bank Offered Rate
KS&EWL Karachi Shipyard & Engineering Works Limited
KSSL Kissan Support Services (Pvt.) Limited
KTDMC Karachi Tools, Dies and Moulds Centre
LAC Land Acquisition Collector
LAM Limit of Authority Manual
LC Letter of Credit
LD Liquidated Damages
LNG Liquefied Natural Gas
LPC Last Pay Certificate
LPG Liquefied Petroleum Gas
LPGCL Lakhra Power Generation Company Limited
LPO Local Purchase Order
LPS Late Payment Surcharge
LRRA Lahore Ring Road Authority
LTF-EOP Long Terms Finance for Export Oriented Projects.
MANCOM Management Committee
MBA Master of Business Administration
MCB Muslim Commercial Bank
MCF Million Cubic Feet
MCO Mobile Credit Officer
MD Managing Director
MFDAC Memorandum for Departmental Accounts Committee
MI Material Inspection
MIS Management Information System
MMBTU Million Metric British Thermal Unit
MMCF Million Metric Cubic Feet
MNA Member of National Assembly
MoD Ministry of Defence

v
MoDP Ministry of Defence Production
MoF Ministry of Finance
MoIP Ministry of Industries and Production
MoLJ&PA Ministry of Law Justice & Parliamentary Affairs
MoP Ministry of Production
MoP&NR Ministry of Petroleum and Natural Resources
MoU Memorandum of Understanding
MoW&P Ministry of Water & Power
MQ Model Quarry
MTRF Medium Terms Running Finance Facility
NAB National Accountability Bureau
NADRA National Database and Registration Authority
NBP National Bank of Pakistan
NDO National Database Organization
NESPAK National Engineering Services of Pakistan
NFC National Fertilizers Corporation Limited
NFML National Fertilizer Marketing Ltd
NFS&R National Food Security and Research
NGEP Natural Gas Efficiency Project
NGL Natural Gas Liquids
NGO Non Governmental Organization
NGRA Natural Gas Regularity Authority
NICL National Insurance Company Limited
NIH National Institute of Health
NIPD&MC National Industrial Parks Development and Management Company
NIT National Investment Trust
NITL National Investment Trust Limited
NLC National Logistic Cell
NOC No Objection Certificates
NRC NADRA Registration Centre
NTL NADRA Technologies Limited
NTS National Testing Services
NUF Non-Utilization Fee
OBS Order Booking Slip
OGDCL Oil and Gas Development Company Limited
OGRA Oil and Gas Regulatory Authority

vi
OM Observation Memo
OMCs Oil & Marketing Companies
P&D Planning & Development
P&L Profit and Loss
P&L Procurement & Logistics
P&NR Petroleum & Natural Resources
PAC Public Accounts Committee
PACO Pakistan Automobile Corporation
PAO Principal Accounting Officer
PARCO Pak Arab Refinery Company
PASDEC Pakistan Stone Development Company
PASSCO Pakistan Agriculture Services & Supplies Corporation
PBC Pakistan Broadcasting Corporation
PBM Pakistan Bait-ul-Mal
PBS Pakistan Bureau of Statistics
PCA Petroleum Concession Agreement
PCESSDC Pakistan Chemical and Energy Sector Skill Development Company
PC-I Planning Commission –I
PCSIR Pakistan Council for Scientific and Industrial Research
PDCs Peripheral Development Charges
PEC Pakistan Engineering Council
PECHS Pakistan Employees Cooperative Housing Society
PECO Pakistan Engineering Company Limited
PEPAC Pakistan Environmental Planning and Architectural Consultants
(Pvt) Limited
PER Performance Evaluation Report
PG&JDC Pakistan Gems and Jewellery Development Company
PGPL Pakistan Gas Port Limited
PHDEB Pakistan Horticulture Development & Export Board
PHDEC Pakistan Horticulture Development Company
PIAC Pakistan International Airlines Corporation
PICTL Pakistan International Container Terminal (Pvt) Limited
PIDC Pakistan Industrial Development Corporation
PIM Pakistan Institute of Management
PKR Pak Rupee
PL Petroleum levy
PLD Procurement & Logistic Department
vii
PM Prime Minister
PMDC Pakistan Mineral Development Corporation
PMG Petroleum Motor Gasoline
PMNH Pakistan Museum of National History
PMTF Pakistan Machine Tool Factory
PN Pakistan Navy
PNSC Pakistan National Shipping Corporation
PO Principle Office
POFs Pakistan Ordnance Factories
POL Petrol, Oil and Lubricant
PRC Program Reviewing Committee
PPL Pakistan Petroleum Limited
PPRA Public Procurement Regulatory Authority
PPRs Public Procurement Rules
PQA Port Qasim Authority
PR Price Reduction
PR Pakistan Railway
PRCL Pakistan Reinsurance Company Limited
PRI Pakistan Remittance Initiatives
PSDP Public Sector Development Programme
PSEB Pakistan Software Export Board
PSEs Public Sector Enterprises
PSF Pakistan Science Foundation
PSFCL Pakistan Steel Fabricating Company Limited
PSM Pakistan Steel Mills
PSO Personal Staff Officer
PSOCL Pakistan State Oil Company Limited
PSPC Pakistan Security Printing Corporation
PTCL Pakistan Telecommunication Company Limited
PTDC Pakistan Tourism Development Corporation
PTNO Personal Ticket No.
PTVC Pakistan Television Corporation Ltd
PWWB Punjab Worker Welfare Board
Q.C Quality Control
QICT Qasim International Container Terminal
QRBS Quality Related Benchmark System
QRC Quality Review Committee

viii
RDFC Regional Development Finance Corporation
REAP Rice Exporters Association of Pakistan
RECP Rice Export Corporation of Pakistan
RFF Running Finance Facility
RHO Regional Headquarter Office
RIC Rice Inspection Cell
RLNG Regasified Liquefied Natural Gas
RoW Right of Way
RTFB Ready to Fill Bulk
SAM Special Asset Management
SBFC Small Business Finance Corporation
SBMP Single Buoy Mooring of Pakistan
SBP State Bank of Pakistan
SCP Supreme Court of Pakistan
SDA Special Deposit Account
SDF Special Deposit Fund
SEC State Engineering Corporation
SECP Securities and Exchange Commission of Pakistan
SIP Sargodha Industrial Park
SLIC State Life Insurance Corporation of Pakistan
SME Small and Medium Enterprises
SMEDA Small and Medium Enterprises Development Authority
SMEL SME Leasing Limited
SML Saindak Metal Limited
SMS Service Meter Station (SNGPL)
SNGPL Sui Northern Gas Pipelines Limited
SO(FA) Section Officer (Financial Advisor)
SOP Standard Operating Procedure
SRL Skyrooms Limited
SRO Statutory Regulatory Order
SSGCL Sui Southern Gas Company Limited
T Bills Treasury Bills
TA/DA Travelling Allowance / Daily Allowance
TAPI Turkmenistan, Afghanistan, Pakistan & India
TAT Turn Around Time
TCP Trading Corporation of Pakistan
TDAP Trade Development Authority of Pakistan
ix
TDR Term Deposit Receipt
TFCs Terms Finance Certificates
TIP Transparency International Pakistan
TLFA Term Loan Fixed Assets
TLWC Terms Loans for Working Capital
TMFBL Tameer Micro Finance Bank Limited
ToR Terms of Reference
TSHD Trailing Suction Hopper Dredger
TTC Technical Training Centers
TUSDEC Technology Upgradation and Skill Development Company
UAE United Arab Emirates
UBL United Bank Limited
UFG Unaccounted for Gas
UK United Kingdom
UK £ United Kingdom Pound
UPS Uninterrupted Power Supply
USA United States of America
USC Utility Stores Corporation of Pakistan (Pvt.) Limited
USD US Dollar
VSS Voluntarily Separation Scheme
WBM Wah Brass Mills
WIL Wah Industries Limited
WPI Wholesale Price Index
ZTBL ZaraiTaraqiati Bank Limited

x
 Preface
Articles 169 and 170 of the constitution of the Islamic Republic of
Pakistan 1973 read with Sections 8 and 15 and other relevant provisions of the
Auditor General’s (Functions, Powers and Terms and Conditions of Service)
Ordinance 2001 require the Auditor General of Pakistan to conduct audit of the
expenditure from the Federal Consolidated Fund, Public Account and that of
Government Commercial Undertakings and of any Authority or Body established
by the Federation.

This report is based on audit of the accounts of Public Sector Enterprises

of Government of Pakistan for the year 2014-15. The Audit Report also contains
audit observations of the previous financial years. The Directorates General
Commercial Audit and Evaluation, Lahore and Karachi, conducted audit during
the period July 01, 2015 to November 15, 2015 on a test check basis, with a view
to report significant findings to the relevant stakeholders. The main body of the
Audit Report includes only the systemic issues and audit findings carrying value
of Rs 1 million or more. Relatively less significant issues have been listed in the
Annexure-I (MFDAC). The audit observations listed in the Annexure-I shall be
pursued with the relevant Principal Accounting Officers (PAOs) of the
Ministries/Divisions at Departmental Accounts Committee (DAC) level. In case
where the PAOs do not initiate appropriate action, the audit observations will be
brought to the notice of the Public Accounts Committee (PAC) through the next
year’s Audit Report.

Most of the observations have been finalized in the light of directives of

the Departmental Accounts Committee (DAC) meetings.

The Audit Report is submitted to the President of Pakistan in pursuance of

Article 171 of the Constitution of the Islamic Republic of Pakistan 1973, for
causing it to be laid before both Houses of Parliament (Majlis-e-Shoora).

Dated: June 06, 2016 (Rana Assad Amin)

Auditor-General of Pakistan

xi
xii
 EXECUTIVE SUMMARY

The Directorates General of Commercial Audit & Evaluation (DsG,

CA&E), (North and South) carry out audit and evaluation of Public Sector
Enterprises (PSEs) established/controlled by Federal Government which maintain
their accounts on commercial basis. Section 15 of the Auditor-General’s
(Functions, Powers and Terms and Conditions of Service) Ordinance, 2001
empowers the Auditor-General of Pakistan to conduct audit of companies and
corporations established in the public sector. For this, DsG, CA&E (North and
South) have a human resource of 224 officers and staff equivalent to 47,701 man-
days for audit.

Out of total man days 18,766 were allocated for undertaking field audit
activities and 28,935 were reserved for allied audit activities. The annual budget
of the Directorates General allocated for audit of Federal organizations for the
year 2014-15 amounted to Rs 203.632 million. This report contains results of
audit inspection and evaluation of financial performance of public sector entities
for the financial year 2014-15 conducted during the year 2015-16.

This report also contains comments on the annual audited accounts of 50

public sector enterprises (41 pertain to the financial year 2014-15 and 09 to
previous years). However, comments on 54 organizations (Annexure-2) could
not be included in this report as the concerned management failed to submit their
audited accounts by the prescribed date. 09 Organizations (Annexure-3) ceased
their operational activities during the years 1986 to 2008. These are still under the
process of liquidation/privatization.

a. Scope of Audit

There are 111 commercial entities of the Federal Government under the
jurisdiction of DsG, CA&E, (North and South). These entities operate under the
administrative control of 27 Principal Accounting Officers (PAOs). As per Audit
Plan 2015-16, the DsG, CA&E, (North and South) audited the accounts
pertaining to year 2014-15 of 35 Federal commercial entities. This report also
xiii
contains audit observations of 12 organizations which were audited during the
previous years.

Out of total budget of the entities for the financial year 2014-15, auditable
transactions under the jurisdiction of the DsG, CA&E, (North and South) valued
Rs 2,724,907 million covering 111 entities falling under 27 PAOs. The
Directorates General audited the expenditure and receipts of Rs 1,838,572 million
which in terms of percentage is 67.47% of auditable transactions including the
audit of receipts of Rs 1,014,720 million pertaining to these entities.

b. Recoveries at the instance of audit

Recovery of Rs 231,763.602 million was pointed out, whereas recovery of

Rs 20,404.863 million was effected.
c. Audit Methodology

Audit planning was carried out and permanent files of auditee

organizations were maintained and consulted / updated for audit of the accounts
for the year 2014-15. Desk audit helped the auditors in understanding the
systems, procedures, environments and the audited entity before starting field
activity. This greatly facilitated in the identification of high risk areas for audit
tests to be applied in the field. Audit was carried out on the basis of adequacy of
internal control system in the organization with specific emphasis on high value
items and inherent risk areas. Audit checks were applied keeping in view the
nature of transactions, current commercial accounting and best auditing practices
in Pakistan and relevant financial and operational manuals.

d. Audit Impact

Audit has contributed towards adding value to the control mechanism of

organizations where compliance was made on audit recommendations.

xiv
e. Comments on Internal Controls

Internal controls in any organization take the form of policies, procedures,

rules, regulations, monitoring mechanisms etc. These controls guard against
fraud, waste and inefficiency as well as ensure reliable and accurate operational
and financial information for intelligent decision making and prompt compliance
with institutional policies and applicable laws and regulations. Internal controls
are essential part of management’s efforts to achieve its objectives and goals.A
number of internal control weaknesses were seen during the audit of Public
Sector Enterprises, of which a few are illustrated below:

 Inventory Management

Inventory management was an area where certain organizations exhibited

loose control with respect to purchases, physical verification and record
keeping. Purchases were made without ascertaining the requirements thus
blocking capital, whereas obsolete inventories were not disposed of for years.

 Acquisition of Human Resources

It was noticed that the Public Sector Enterprises were not observing
regulations for acquisition of human resources while making fresh
appointments, re-employment of retired personnel or appointment of
consultants.

 Receivables/Debt Management

Receivables management in almost all the organizations required immediate

attention. Trade debts were not being collected within the stipulated period
and a rising trend in receivables was noticed in a large number of
organizations audited. This adversely affected the liquidity position. Further,
the policy of loan sanctioning in public sector financial institutions was quite
liberal which resulted in bad debts.

xv
f. The key audit findings of the report;

i. Embezzlement / theft/fraud of Rs 480.358 million in 13 cases1

ii. Non-Production of records in 2 cases Rs 9,262.501 million2.
iii. Public Procurement Rules were violated Rs 5,423.800 million in 43
cases3.
iv. Overpayments/recovery/dues pointed out in 45 cases of
Rs 153,688.217 million4.
v. Non-protection of assets Rs 11,827.502 million in 15 cases5.
vi. There were 24 cases of irregular appointments/promotions having
financial impact of Rs 174.994 million6.
vii. Blockage of funds in 06 cases – Rs 163.425 million7.
viii. Irregular payment of donation / Ex-gratia in 03 cases - Rs 188.504
million8.
ix. Undue favour was extended in 05 cases – Rs 27.231 million9.
x. Procedure/rules regulations were violated in 40 cases
- Rs 198,847.918 million10.
xi. Irregular payments were reported in 09 cases - Rs 75.559 million11.

1
1.1.4.1, 4.3.4.1, 4.4.4.1, 6.6.4.1, 8.22.4.1, 8.22.4.2, 8.22.4.3, 8.27.4.1, 8.27.4.2, 11.1.4.1, 15.4.4.1,
15.4.4.2, 15.4.4.3,
2
4.2.4.1, 6.4.4.1
3
1.1.4.2, 1.1.4.4, 1.1.4.5, 1.1.4.6, 1.1.4.9, 1.1.4.14, 1.2.4.1, 2.3.4.2, 5.2.4.2, 5.2.4.4, 6.4.4.6, 6.3.4.2,
6.3.4.4, 6.3.4.5, 6.4.4.4, 6.4.4.8, 8.2.4.1, 8.4.4.1, 8.4.4.2, 8.9.4.1, 8.9.4.9, 9.11.4.5, 11.1.4.2,
11.1.4.15,15.1.4.1, 15.1.4.2, 15.2.4.10, 15.4.4.4, 15.4.4.5, 15.4.4.6, 15.4.4.8, 15.4.4.10, 15.4.4.13,
15.4.4.16, 15.4.4.18, 15.4.4.20,15.6.4.3, 16.1.4.1, 17.3.4.5, 17.4.4.2, 17.4.4.4, 16.1.4.5, 20.1.4.3.
4
1.1.4.10, 2.2.4.2,4.1.4.2, 4.2.4.2, 4.3.4.3, 4.3.4.4, 6.2.4.2, 6.2.4.3, 6.4.4.3, 8.9.4.2, 8.9.4.4, 8.12.4.1,
8.12.4.2, 9.1.4.5,12.1.4.3, 12.1.4.4, 12.1.4.7, 12.1.4.10, 14.1.4.3, 14.1.4.7, 15.2.4.5, 15.2.4.7, 15.2.4.8,
15.2.4.9, 15.2.4.14, 15.4.4.9, 15.4.4.12, 15.4.4.15, 15.4.4.19, 15.6.4.8, 15.6.4.13, 15.6.4.21,17.2.4.2,
17.2.4.3, 17.2.4.5, 17.3.4.4, 17.4.4.9, 17.4.4.11, 17.4.4.13, 17.4.4.14, 15.6.4.7, 20.1.4.2, 20.1.4.5,
20.1.4.6, 20.1.4.7.
5
1.1.4.7, 1.1.4.12, 1.1.4.19, 4.1.4.5, 4.4.4.5, 6.4.4.7, 8.9.4.6, 14.1.4.5, 15.2.4.1, 15.4.4.21, 15.4.4.23,
17.2.4.1, 17.3.4.1, 17.3.4.2, 17.4.4.12
6
1.1.4.11, 2.3.4.3, 3.1.4.6,4.3.4.7, 4.4.4.2, 4.4.4.4, 4.5.4.16,6.3.4.1, 6.5.4.5,8.6.4.4, 8.7.4.1, 8.12.4.7,
9.6.4.2,15.2.4.15, 15.4.4.14, 17.4.4.10, 17.4.4.15, 15.6.4.10, 15.6.4.17, 15.6.4.18, 15.6.4.20, 15.7.4.10,
15.7.4.13, 20.1.4.4.
7
4.5.4.10, 10.1.4.8, 10.1.4.10, 12.1.4.11, 15.4.4.7, 17.2.4.4,
8
4.4.4.7, 8.12.4.3,14.1.4.2
9
1.1.4.13, 1.1.4.17, 8.2.4.2, 8.9.4.7, 15.4.4.11
10
1.1.4.3, 1.1.4.8, 1.1.4.15,1.1.4.16, 1.1.4.18, 3.1.4.3, 3.2.4.4,4.1.4.3, 4.3.4.6, 4.3.4.5, 4.4.4.6, 6.3.4.3,
6.4.4.5, 6.4.4.9, 5.2.4.5, 5.2.4.16, 7.1.4.3, 8.6.4.3, 8.9.4.3, 8.10.4.1, 8.11.4.1, 8.12.4.6, 14.1.4.4, 14.1.4.6,
14.1.4.9, 14.1.4.10, 14.1.4.12, 14.1.4.13,15.2.4.3, 15.2.4.11, 15.2.4.12, 17.1.4.1, 17.1.4.2, 17.1.4.3,
17.3.4.3, 17.4.4.3, 17.4.4.5, 17.4.4.6, 17.4.4.7, 17.4.4.8,
11
1.2.4.2, 4.1.4.4, 8.6.4.1, 8.6.4.5, 8.12.4.8, 15.2.4.2, 15.2.4.4, 15.2.4.6, 17.1.4.4
xvi
 xii. There were 15 cases of loss of revenue – Rs 12,440.141 million12.
xiii. There were 04 cases of irregular investment – Rs 460,145.258
million13.

f. Recommendations

The executives (Principal Accounting Officers) need to take necessary

steps to evaluate and strengthen the management, budgeting and accounting
controls. Following are to be implemented by the management in particular:

i. Strengthen the preventive and detective internal controls to minimize the

chances of misappropriation / embezzlement in future. Ensure recovery
against misappropriation / embezzlement after proper inquiry and fixing
responsibility;
ii. Ensure compliance with PP Rules 2004 so that procurements in future are
made in a fair and transparent manner, the object of procurement brings
value for money to the entity and procurement process is efficient and
economical. Responsibility should be fixed against those responsible for
violation of PP Rules;
iii. Make efforts for early recovery of all outstanding receivables. Recover
overpayment after fixing responsibility and take remedial measures to
avoid repetition of such cases in future;
iv. Ensure implementation of recruitment policies / procedures to hire the
capable personnel and make the recruitment process transparent especially
through wide circulation;
v. Ensure maximum utilization of public funds to avoid its blockage and get
optimal value for money;
vi. Understand that rules are meant to be followed. All instances of
circumventing rules should be dealt with severely;
vii. Arrange timely submission of annual audited accounts to all stakeholders
and display these on their websites.

12
4.1.4.1, 4.2.4.3, 4.3.4.2, 4.4.4.3, 8.4.4.3, 8.9.4.5, 8.11.4.2, 8.11.4.3, 8.11.4.4, 14.1.4.8, 14.1.4.11,
15.5.4.1, 15.2.4.13, 15.4.4.17, 17.4.4.1
13
6.4.4.2, 6.4.4.6, 8.12.4.4, 15.4.4.22
xvii
xviii
SUMMARY TABLES AND CHARTS

xix
xx
 SUMMARY TABLES AND CHARTS
Table 1: Audit Work Statistics
(Rs in million)
S. No. Description No. Budget

1 Total PAOs in Audit Jurisdiction 27 2,724,907.17

2 Total Commercial Entities in Audit Jurisdiction 111 2,724,907.17
3 Total PAOs Audited 17 1,838,572.19
4 Total Commercial Entities Audited 35 1,838,572.19
5 Audit Inspection Reports 35 1,838,572.19
6 Special Audit Reports 1 137,214.04
7 Performance Audit Reports - -
8 Other Reports - -

Table 2: Audit observations regarding Financial Management

(Rs in million)
S. No. Description Monetary value of audit
observations
1. Unsound asset management 825,169.33
2. Weak financial management 364,979.05
3. Weak internal controls relating to financial management 183,549.55
4. Others 123,255.63
Total 1,496,953.57

Table 3: Outcome Statistics

(Rs in million)
Expenditure
on acquiring
Sr. Physical Total current
Description Civil Works Receipts Others Total last year
No. Assets year
(Procureme
nt)
1. Outlays Audited 186,069.82 3,137.65 1,014,720.84 634,644.10 1,838,572.19 1,960,872.79
2. Monetary value 825,957.18 346,754.40 219,955.25 104,286.73 1,496,953.57 1,154,408.19
of audit
observations
3. Recoveries 2,305.59 0.00 123,111.91 106,346.10 231,763.60* 108,500.40
Pointed out at the
instance of Audit
4. Recoveries 2,305.59 0.00 123,111.91 106,346.10 231,763.60 108,500.40
Accepted /
Established at the
instance of Audit
5. Recoveries 2,256.70 0.00 2,753.51 15,394.65 20,404.86** 2,502.74
Realized at the
instance of Audit
*Out of total recoveries valuing Rs 231,763.60million an amount of Rs 193.94 million was pointed out while
remaining Rs 231,569.66 million falls under the category, expedited by Audit.
**Recovery of Rs 20,404.86 million realized was expedited by Audit.

xxi
Table 4: Table of Irregularities pointed out
(Rs in million)
Monetary value
S.
Description of audit
No.
observations
1. Violation of rules and regulations and violation of principle of propriety
and probity in public operations. 930,892.76
2. Reported cases of fraud, embezzlement, thefts and misuse of public
resources 5,635.64
3. Accounting Errors (accounting policy departure from IAS,
misclassification, over or understatement of account balances) that are
significant but are not material enough to result in the qualification of audit
opinions on the financial statements 1.81
4. Weaknesses of internal control systems 20,677.84
5. Recoveries and overpayments, representing cases of established
overpayment or misappropriations of public money 231,763.60
6. Non – production of record 4,612.96
7. Others, including cases of accidents, negligence etc. 303,368.96
Total 1,496,953.57

*Out of total recoveries valuing Rs 231,763.60million an amount of Rs 193.94 million was pointed out while
remaining Rs 231,569.66 million falls under the category, expedited by Audit.

Table 5: Cost-Benefit
(Rs in million)
S.
Description 2015-16 2014-15 2013-14
No.
1. Outlays Audited 1,838,572.19 1,960,872.79 2,666,179.89
2. Expenditure on Audit 183.20 282.57 215.69
3. Recoveries realized at the instance of 20,404.86* 2,502.74 14,389.51
Audit
Cost-Benefit Ratio 1: 111.380 1 : 8.857 1 : 66.714
*Recovery of Rs 20,404.86 million was expedited by Audit.

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