Audited Project Financial Statements
Audited Project Financial Statements
The audited project financial statements are documents owned by the borrower. The views expressed
herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff. These
documents are made publicly available in accordance with ADB’s Public Communications Policy 2011
and as agreed between ADB and the Hyderabad Electric Supply Company.
Financial Attest Audit Report on the
Accounts of Power Distribution Enhancement
Investment Program Tranche-IV Hyderabad
Electric Supply Company Limited (HESCO),
Asian Development Bank (ADB) Loan No.
3096-PAK
for the Financial Year 2014-15.
3 0 DEC 2015
tr-ct MISSIO
PAKISTAN RESIDENT
BAD
ISLAMA
Page No.
LIST OF ABBREVIATIONS 1
PREFACE 2
PART-I 3
PROJECT OVERVIEW 4
FINANCIAL STATEMENTS 6
PART-II 12
EXECUTIVE SUMMARY 13
MANAGEMENT LETTER 14
1 INTRODUCTION 15
2. AUDIT OBJECTIVES 16
4.3 Recommendations 17
5. CONCLUSION 18
ACKNOWLEDGEMENT 19
LIST OF ABBREVIATIONS
The Auditor General conducts audit subject to Articles 169 and 170 of the Constitution of
the Islamic Republic of Pakistan 1973, read with sections 8 and 12 of the Auditor
General's (Functions, Powers and Terms and Conditions of Service) Ordinance 2001.
The Audit of Power Distribution Enhancement Investment Program Tranche-IV HESCO
portion (ADB loan 3096) was carried out accordingly.
The Directorate General Audit WAPDA conducted audit of the Power Distribution
Enhancement Investment Program Tranche-IV HESCO portion (ADB loan 3096) during
October 2015 for the financial year 2014-15 with a view to reporting significant findings
to the stakeholders. Audit examined the economy, efficiency, and effectiveness aspects of
the Power Distribution Enhancement Investment Program Tranche-IV HESCO portion
(ADB loan 3096). In addition, Audit also assessed, on test check basis, whether the
management complied with applicable laws, rules, and regulations in managing the
Power Distribution Enhancement Investment Program Tranche-IV HESCO portion (ADB
loan 3096). The Audit Report indicates specific actions that, if taken, will help the
management to realize the objectives of the Power Distribution Enhancement Investment
Program Tranche-IV HESCO portion (ADB loan 3096).
The Report consists of two parts. Part-I contains Auditor's Report (Audit Opinion) and
Financial Statements. Part-II contains Executive Summary, Management Letter and
Audit Findings.
The Report has been prepared for submission to the Asian Development Bank in terms of
Loan Agreement 3096 (HESCO Portion).
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PART-I
1. PROJECT OVERVIEW
3. FINANCIAL STATEMENTS
PROJECT OVERVIEW
4
AUDITOR'S REPORT TO THE MANAGEMENT (AUDIT OPINION)
The HESCO's policy is to prepare the accompanying statements in the format agreed
between the Asian Development Bank and the Government of Pakistan as noted in the
Minutes of Negotiations for the Loan, on a cash receipts and disbursements basis in
which cash is recognized when received and expenses are recognized when paid, rather
than when incurred.
In our opinion, (A) the aforementioned financial statements and appended notes that were
also subject of the audit, fairly present in all material respects the financial position of the
Power Distribution Enhancement Investment Program Tranche-IV Hyderabad Electric
Supply Company Limited (HESCO) as at June 30, 2015 and the results of its operations
for the year ended June 30, 2015, in conformity with International Public Sector
Accounting Standards, applied on a basis consistent in all material respects with that of
the previous years; (B) the HESCO has utilized all proceeds of the loan withdrawn from
the Asian Development Bank only for purposes of the Project as agreed between the
Asian Development Bank and HESCO in accordance with the Loan Agreement; and no
proceeds of the loan have been utilized for other purposes; and (C) the HESCO was in
compliance as at the date of the balance sheet of the year of audit with all financial
covenants of the Loan Agreement.
BILAL MAJEE
DIRECTOR GENERAL
AUDIT WAPDA, LAHORE
Dated:
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FINANCIAL STATEMENTS
Hyderabad Electric Supply Company (HESCO)
Power Distribution Enhancement Investment Program
ADB Loan No. 3096-PAK (Tranche-IV)
Satetment of Receipts and Payments
For the year ended June 30, 2015
Rupees in million
Receipts
External Assistance 5 4.456
Counterpart Funds 6 0.433
Total Receipts 0.433 4.456
Payments
Consultancy Services 7
Operating Expenses 8 0.433
Supplies and Consumables 9
Purchase of Plant and Equipment 4.456
Cvil Works
Training 10
Total Payments 0.433 4.456
of Engineer (Dev:)
C ans 'fa)
, HESCO, Hyderabad
Hyderabad Electric Supply Company (HESCO)
Power Distribution Enhancement Investment Program
ADB Loan No. 3096-PAK (Tranche-IV)
Statement of Budget and Actual Expenditure
For the year ended June 30, 2015
Rupees in million
Consultancy Services 7
Operating Expenses 8 0.433 0.433 0.433
Cvil Works
Training 10
Total Payments 4.889 4.889 4.889
The accompanying notes form an integral part of these financial statements and are to be read therewith.
2014-15 2013-14
US$ Pak Rs. US$ Pak Rs.
Statement of Expenditure 5.1
Direct Payment 5.2 0.044 4.456
0.044 4.456 0.000 0.000
5.1 This represents funds trnasferred to the Power Distribution Enhancement Investment Program Tranche-IV, Hyderabad Electric Supply. Company
(HESCO)'s designated US Dollar Bank Account by the ADB on the basis of withdrawal application submitted by the project.
5.2 Direct payment represent amount paid directly by the ADB on behalf of the project in respect of goods and services procured imported by the
project. The payment made on the basis of withdrawal application by the project.
5.3 There has been no instance of non complaince with the terms and condition of the financing agreement between ADB and Government of
Pakistan which have resulted in cancellation of credit.
US $
Amount of Loan 11.000
Amount surrended
Committed Loan Amount 11.000
Disbursements upto June 30,2014
Disbursements during the year. 0.044
Balance loan amount as at June 30, 2015 10.956
6 Counterpart Funds
2014-15 2013-14
Pak Rs. Pak Rs.
Government of Pakistan 6.1 0.433
0.433
6.1 This represents funding to the Power Distribution Enhancement Investment Program Tranche-IV, HESCO at 20% the total project cost by the
Government of Pakistan (GoP) as agreed between ADB and GoP.
4 fr
1,1
• Hyderabad Electric Supply Company (HESCO)
Power Distribution Enhancement Investment Program
ADB Loan No. 3096-PAK (Tranche-IV)
Satetment of Receipts and Payments
For the year ended June 30, 2015
All amount in million
10 Authorizaton Expenses
These financial statement have been authorized for issue by the Chief Engineer(Dev:) on 11-12-2015
11 General
Figures have been rounded off to the nearest rupee.
EXECUTIVE SUMMARY
MANAGEMENT LETTER
1. INTRODUCTION
2. AUDIT OBJECTIVES
4.3 Recommendations
5. CONCLUSION
ACKNOWLEDGEMENT
12
EXECUTIVE SUMMARY
The Directorate General Audit WAPDA conducted audit of the Power Distribution
Enhancement Investment Program Tranche-IV HESCO portion (ADB loan 3096) during
October 2015 for the financial year ended June 30, 2015. The main objectives of the audit
were to express an opinion on the Statement of Receipts and Payments of the project, to
review project performance against intended objectives, to review compliance with
applicable rules, regulations and procedures. The audit was conducted in accordance with
the International Standards of Supreme Audit Institutions (ISSAI).
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