Date:-10/10/2018 External Audit Report for Non - BDS Units of MACP for year ending 31s March 2018 1. We have audited the attached Project Financial Statements of Maharashtra Agriculture Competitiveness Project financed under International Development Association (IDA) (Loan No. IDA 4809-IN), which comprises the Statement of Sources and Applications of Funds for the period 1st April 2017 to 31st March 2018 of following Non -BDS Units(Accounting Centers)- i) Project Co-ordination Unit, Pune (PCU) ii) Project Implementation Unit, Agriculture Marketing (PIU-AM) iii) Maharashtra State Warehousing Corporation (MSWC) iv) National Institute of Post Harvest Technology (NIPHT) v) Agricultural Technology Management Agencies (ATMAs) vi) VasantraoNaik State Agricultural Extension Management Training Institute (VANAMATI). Out of separate PFS prepared for BDS Units (not Audited by us), we have Audited only expenditure incurred out of " Beneficiary Contribution " maintained in separate bank account by component of District Deputy Registrar of Co-operative Societies (DDRCS)viz. Rural Haats, Agriculture Produce and Market Committees (APMCs) and Live Stock Market(LSMs). These Project Financial Statements are the responsibility of Project Management. Our responsibility is to express an opinion on these Financial Statements based on our Audit. 2. We have conducted Audit in accordance with Auditing Standards generally accepted in India. Those standards require that, we perform the Audit to obtain reasonable assurance about whether the financial statements are free of Material Misstatements. An Audit Includes examining, on a test basis, the evidence supporting the amount and disclosure in the Financial Statement. An Audit includes assessing the Accounting Principles used and significant estimates made by management, as well as evaluating overall Financial statement Presentation. We believe that our Audit provides a reasonable basis for our Opinion. 3. This Report includes each Accounting Centre wise Reporting of Audit Observation which were Audited by us. 4. Further to our comments in the annexure referred to in paragraph (3) & (4) above, we report that a) We have obtained all the information & explanations, which to the best of our knowledge & beliefs were necessary for the purpose of our Audit. :104539W* b) In our opinion, the project has kept proper Books of Accounts as required by Project Financial Manual, so far as it appears from our examination of those books. c) The project Financial Statements dealt with this report have been prepared in accordance with the Accounting Principles defined in the Project Financial Manual. d) The Project Financial Statements dealt with this Report, are in agreement with the Books of Accounts. e) On the basis of Written Representation received from the Project Director and to the best of our knowledge and belief we report that, the funds are utilized for the purpose for which they were provided and expenditure shown are eligible for financing under the relevant Loan or Credit agreement. f) During the course of the Audit, we have examined Interim Un-Audited Financial Report (IUFR) submitted by the Management to the World Bank and the connected documents. In our opinion, subject to Para 3 above, the said reports can be relied upon to support Reimbursement under the Loan / Credit Agreement. g) In our opinion and to the best of our information & according to the explanation givento us and notes to PFS, Statement of Sources and Applications of Funds for the period 1s April 2017 to 31st March 2018 gives information as required by the Finance Manual in the manner so required & Fair view with respect to: i) Project Financial Statements ( PFS) for Non BDS Units. ii) Beneficiary contribution under separate PFS prepared for BDS Units (not Audited by us) by component of DDRCs. 5. With respect to Certification of the Statement of Assets created or purchased from the Project Funds, Toe are unable to express our opinion as After several reminder to concern officer we did not get consolidated Schedule of Fixed Assets owned by Project till the of Report. With regard to the innovable Assets created from the Project Funds, we have concentrated on the Assets completed under the Project. Considering the Immovable Assets created from the Project Funds being so wide spread, it is practically difficult to physically verify each and every Immovable Asset created from the Project Funds. Innovable Assets have been certified on the basis of Verification of the Documentation on Record oith respect to such Assets. FRN:104589W Considering the wide spread Immovable Assets created from the Project Funds and the technicalities connected with the same, we suggest a separate Audit of the Immovable Assets created from the Project Funds so that the utility and the purpose of the same be effectively achieved. For Kaloti and athiya Ch Acco ntants CA Ma anwar FRN:1045 Partner M. No. 112093bAco A) Summary of Monetary Audit Observation noted during External Audit of Non BDS Units for Financial Year 2017-18 Sr. Particulars Ineligible Amount as per Total Error in IUFR No External Audit Report Ineligible Claim status as Expenses not Inadmissible Amount as on 31-03-2018 Covered in Expenses/ Per External (PTD) MACP Excess Expenses Audit for Short/(Exces) Project (Rs) (Rs) FY 2017-18 (Rs in Lakhs) 1 PCU Nil Nil Nil Nil 2 PIU AM Nil Nil Nil Nil 3 NIPHT Nil Nil Nil Nil 4 MSWC Nil Nil Nil Nil 5 PIU Agri ATMA 70,900 45,11,667 45,82,567 3,80,240 Subtotal (1 70,900 45,11,667 45,82,567 3,80,240 to 5) 6 DDRC Nil Nil Nil Nil TOTAL 70,900 45,11,667 45,82,567 3,80, 40 FR A04589W q е,Lл � � . � � � } .i R i21I'. t �' 1 "�°иi1�1� Uf �he Prajrct -�lrttiнrashtrл :1�г icutttгr c�С'��rn�e[iti� citc•�S Prolec# L�,sin � Crcdit ��Г,галt �о. �t3UЧ I� 5tлteпtcnf uf 5иигсе� аг�д �{�piicвtio�t of Fund� L пitsj 12ериг[ for tЬе _�еаг ei�ded р1 U�.�?Ui' [и a1 �U3:?U1� fGro�s Ab�trяc[ of BD� �"*�'�-��� T�i�1`пientin� ,( L��a� � Fгpj€ct [з1f дг,[г � Yrc~iuus 1 ецг F'roje�t гi11 daft � (�игте7lt У��г ���.� 1.�г� С�.�1 11: '61�`S} � � г 1з,l.ц1?u1Ttr,З1.U)._'пЕч1 . 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