PROJECT FINANCIAL STATEMENTS · 2019. 2. 28. · (Rajesh Nigam) (Anil Chansoria) Chief Financial...
Transcript of PROJECT FINANCIAL STATEMENTS · 2019. 2. 28. · (Rajesh Nigam) (Anil Chansoria) Chief Financial...
PROJECT FINANCIAL STATEMENTS
MADHYA PRADESH URBAN DEVELOPMENT COMPANY LIMITED
(GOVERNMENT OF MADHYA PRADESH UNDERTAKING)
MADHYA PRADESH URBAN DEVELOPMENT PROJECT
WORLD BANK LOAN NO. 8746-IND
For the Year/Period ended on 31.03.2018
PALIKA BHAWAN, 6 NO. BUS STOP,SHIVAJI NAGAR,
BHOPAL, MADHYA PRADESH
Corporate Identity Number : U75110MP2015SGCO34139
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A. K. SURANA & ASSOCIATESChartered Accountants
H-38, Nishat Colony, 74 BungalowsBhopal -462003, Phone - (0755) 2551268
Independent Auditor's Report:
ToThe Members,Madhya Pradesh Urban Development Company LimitedPalika Bhawan, 6 No. Bus Stop, Shivaji NagarBhopal (M.P.) - 462016
Report on the Project Financial Statements:
We have audited the accompanying financial statements of the MADHYA PRADESH URBANDEVELOPMENT PROJECT financed under World Bank Loan No. 8746 - IN, which comprise theBalance Sheet and the Statement of Receipts and Payments for the year ended 31st March 2018.
Management's Responsibility for the Financial Statements
The Management is responsible for the preparation of these standalone financial statements thatgive a true and fair view of the financial position and financial performance of the Project. Thisresponsibility includes the design, implementation and maintenance of adequate internal controlsrelevant to the preparation and presentation of the financial statements that give a true and fairview and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with the Standards on Auditing issued by the Institute ofChartered Accountants of India. Those Standards require that we comply with the ethicalrequirement and plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor's judgment,including the assessment of risks of material misstatement of the financial statements, whether dueto fraud or error. In making those risk assessments, the auditor considers internal control relevantto the Company's preparation and fair presentation of the financial statements in order to designaudit procedures that are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accounting estimatesmade by the Management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.
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A. K. SURANA & ASSOCIATESChartered Accountants
H-38, Nishat Colony, 74 BungalowsBhopal -462003, Phone - (0755) 2551268
Opinion
In our opinion and to the best of our information and according to the explanations given to us, theaforesaid financial statements give the information required by the Act in the manner so required,the sources and applications of funds of Project for the year ended 31st March 2018 and give a trueand fair view in conformity with the accounting principles generally accepted in India:
i) In case of Balance Sheet of the Project as at 31st March, 2018; andii) In case of the Statement of Receipts and Payments of the Project for the year ended on that date.
For A.K.SURANA & ASSOCIATESCHARTERED ACCOUNTANTS
soirm Reg. No. :O29
Place: BHOPAL O L Ka irpanthi)Date : 26/12/2018 ARTNER
ERE No. 414809
A. K. SURANA & ASSOCIATESChartered Accountants
H-38, Nishat Colony, 74 BungalowsBhopal -462003, Phone - (0755) 2551268
MANAGEMENT LETTER
To
The Members,Madhya Pradesh Urban Development Company LimitedPalika Bhawan, 6 No. Bus Stop, Shivaji NagarBhopal (M.P.) - 462016
Sub.: Management Letter
Dear Sir,
We have audited the financial statements of MADHYA PRADESI- URBAN DEVELOPMENTPROJECT financed under World Bank Loan No. 8746 - IN for the year ended 31st March 2018 and haveissued our report dated 26th Dec 2018.
We also report that;
(a) We have obtained all the information and explanations which to the best of our knowledge and beliefwere necessary for the purpose of our examination.
(b) In our opinion, reasonable books and records pertaining to Loan No. 8746 - IN have been kept by theCompany so far as it appears from our examination of those books.
(c) The Balance Sheet and the Statement of Receipts and Payments, dealt with by this report are inagreement with the records maintained by the Company.
(d) Proceeds of the loan from INTERNATIONAL BANK FOR RECONSTRUCTION ANDDEVELOPMENT have been utilized for the purposes as per Loan I Project Agreement
(e) Financial covenants in the loan agreement MADHYA PRADESH URBAN DEVELOPMENTPROJECT; Loan No. 8746 - IN dated 12"' June 2017 have been complied with by the Company
For A.K.SURANA & ASSOCIATESCHARTERED ACCOUNTANTS
&kss Firm Reg. No.: 00 29C
Place: BHOPAL ay at irpanthi)Date : 26/12/2018 RTNER
No. 14809
Executing Agency: GoM.P., MADHYA PRADESH URBAN DEVELOPMENT AND HOUSING DEPARTMENTImplementing Agency: MADHYA PRADESH URBAN DEVELOPMENT CO. LTD.Name of the Project : M.P. Urban Development Project.(MPUDP)Loan/Grant No. : Loan No. 8746-IND
BALANCE SHEET
As on 31st March 2018In (INR)
Annex Current Year Previous Year CumulativeLiabilities ure (2017-18) (2016-17) Project to date
As at 31/0312018)1 2 3 4
Non Current LiabilitiesFund from GoMP I 114,495,410 114,495,410Advance from ULBs for Consultancy Work II 25,174,168 - 25,174,168Advance from ULBs for Civil Works III 570,111,845 - 570,111,845Retention Money IV 10,553,789 - 10,553,789Subtotal (A) 720,335,212 720,335,212Current LiabilitiesLabour Cess V 2,110,759 2,110,759With Held Amount VI 1,305,092 1,305,092Subtotal (B) 3,415,851 3,415,851
Total Liabilities(C=A+B) 723,751,063 - 723,751,063
Non Current AssetsProject Implementation Expenditure (CWIP)
For Civil Work VIII 211,075,777 211,075,777For Consultants IX 22,275,654 22,275,654Mobilisation Advance X 366,344,582 366,344,582Subtotal (D) 599,696,013 599,696,013Current AssetsInterest Accrued on FDR 1,504,261 1,504,261TDS receivable 978,143 978,143Cash & Bank XI 121,572,646 121,572,646Subtotal (E) 124,055,050 124,055,050
Total Assets (D+E) 723,751,063 - 723,751,063
As per our report of even date attachedFor: A.K.Surana & Associates For Madhya Pradesh Urban Development Co. LimitedChartered AccountantsFirm Regn No. 2?P2K
1FRN ItCA yur it abirpa L(Partner) Ac (Rajesh Nigam) (Anil Chansoria)M.No. 414809 Chief Financial Officer Engineer in ChiefPlace: BhopalDate: Ab o)2cS
Executing Agency : GoM.P., MADHYA PRADESH URBAN DEVELOPMENT AND HOUSING DEPARTMENTImplementing Agency: MADHYA PRADESH URBAN DEVELOPMENT CO. LTD.Name of the Project : M.P. Urban Development Project.(MPUDP)Loan/Grant No. : Loan No. 8746-IND
STATEMENT OF RECEIPTS AND PAYMENTSREPORT FOR THE PERIOD ENDED 31st March 2018
In (INR)
I Cumulative ProjectAnnex Current Year Previous Year
to dateParticulars ure (2017-18) (2016-17) (A a 3
(As at 31/03/2018)
1 2 3 4
Opening balance (A) 0.00 0.00 0.00Receipts
Funds received from Government of M.P. 700,000,000 - 700,000,000(For and on behalf of ULBs) -_-_ -
Other receipts VII 7,299,019 - 7,299,019(Interest on bank FDR) -_- -
Total Receipts (B) 707,299,019 - 707,299,019.00
Total (C=A+B) 707,299,019 - 707,299,019.00
Payments
Project Implementation Expenditure
A. For Civil work Vill 197,711,799 - 197,711,799B. Project Management Consultants IX 21,669,992 - 21,669,992Subtotal (D) 219,381,791 219,381,791
Mobilisation Advance
A. For Civil work 7,308,514 7,308,514B. Project Management Consultants 359,036,068 359,036,068Subtotal (E) 366,344,582 - 366,344,582
Total Payments(D+E) 585,726,373 - 585,726,373
Cash & Bank Closing Balance (C-G) XI 121,572,646 - 121,572,646
As per our report of even date attachedFor: A.K.Surana & Associates For Madhya Pradesh Urban Development Co. Limited
Chartered AccountantsFirm Regn No. 002729C
f V BHOP'AL
CA a L lit Kabirpa 2720
(Partner (Rajesh Nigam) (Anil hansoria)?,0. AG
M.No. 4148 Chief Financial Officer Engineer in ChiefPlace: Bhopal
Fund from Govt. of MP Annexure - IParticulars Amount in Rs. Amount in Rs.
Fund from Govt. of MP (For and on behalf of ULBs) 10,47,13,988Interest on FDR for above fund 97,81,422 11,44,95,410
Total in Rs. 11,44,95,410
Advance from ULBs for Consultancy Work Annexure - IIParticulars Amount in Rs. Amount in Rs.
PMC (WAPCOS) 1,78,65,654Advance to PMC (WAPCOS) 73,08,514 2,51,74,168
Total in Rs. 2,51,74,168
Advance from ULBs for Civil Works Annexure - IIIParticulars Amount in Rs. Amount in Rs.
JMC & RAMKY (JV) Package No. 1 - Burhanpur 20,30,27,983JMC & RAMKY (JV) Package No. 2 - Khargone 19,05,30,978Laxmi Civil Engineering Services Package No. 3 - Chhindwara 17,65,52,884 57,01,11,845
Total in Rs. 57,01,11,845
Retention Money Annexure - IV
IParticulars Amount in Rs. Amount in Rs.
[JMC & RAMKY (JV) Package No. 1 - Burhanpur 50,11,585 I III IIJMC & RAMKY (JV) Package No. 2 - Khargone 55,42,204 1,05,53,789
Total in Rs. 1,05,53,789
Labour Cess Annexure - VParticulars Amount in Rs. Amount in Rs.
JMC & RAMKY (JV) Package No. 1 - Burhanpur 10,02,317
MC & RAMKY (JV) Package No. 2 - Khargone 11,08,44 21,10,759
1i Total in Rs. 21,10,759
With Held Amount Annexure - VIParticulars Amount in Rs. Amount in Rs.
JMC & RAMKY (JV) Package No. 1 - Burhanpur 300,883JMC & RAMKY (JV) Package No. 2 - Khargone 398,547 699,430Project Management Consultants (WAPCOS) 605,662 6,05,662
Total in Rs. 13,05,092
(Rajesh Nigam) (Anil Chansoria)Chief Financial Officer Engineer in Cheif
Other Receipts (Interest on Bank FDR) Annexure - VIIParticulars Amounts (In Rs.) Amounts (In Rs.)Interest on FDR 9,781,423Less : Interest accrued on FDR 1,504,261
TDS receivable 978,143 2,482,404Interest received during the period/year 7,299,019
Project Implementation Expenditure (Civil Work) Annexure - VIIIParticulars Amount in Rs. Amount in Rs.For Civil WorkJMC & RAMKY (JV) Package No. 1 - Burhanpur 10,02,31,709JMC & RAMKY (JV) Package No. 2 - Khargone 11,08,44,068Total Civil Work as per accrual basis 21,10,75,777Less Retention money (As per Annexure VII) 1,05,53,789Less Labour Cess (As per Annexure VIII) 21,10,759Less Withheld (As per Annexure_IX) 6,99,430 (13363978)Total payments made for Civil Work 19,77,11,799
Project Implementation Expenditure (Consultants) Annexure - IXParticulars Amount in Rs. Amount in Rs.For Project Management ConsultantsProject Management Consultants 1,78,65,654ESMF Consultants (2016-17) 44,10,000Total Gross amount of PMC as per accrual basis 2,22,75,654Less: Withheld (As per Annexure_IX) (605,662)Total payments made to Consultants 2,16,69,992
Mobilisation Advance Annexure - XParticulars Amount in Rs. Amount in Rs.(A) For Civil WorkJMC & RAMKY (JV) Package No. 1 - Burhanpur 10,27,96,274JMC & RAMKY (JV) Package No. 2 - Khargone 7,96,86,910Laxmi Civil Engineering Services Package No. 3 - Chhindwara 17,65,52,884 35,90,36,068(B) For Project Mamagement Consultants _________________
Project Management Consultant 73,08,514 73,08,514
Total in Rs. 36,63,44,582
Cash and Bank Annexure - XIParticulars Amount in Rs. Amount in Rs.Current A/C with ICICI Bank 1,67,397FDR with ICICI Bank 1 12,14,05,249 12,15,72,646
Total in Rs. 12,15,72,646
(Rajesh Nigam (Anil hansoria)020 Chief Financial Officer Engineer in Chelf
2O.7 29C I
Annexure XIIPage I of X1I
Executing Agency: GOVERNMENT OF M.P., MADHYA PRADESH URBAN DEVELOPMENT AND HOUSING DEPARTMENTImplementing Agency: MADHYA PRADESH URBAN DEVELOPMENT CO. LTD.Name of the Project : M.P. Urban Development Project.(MPUDP)Loan/Grant No. : Loan No. 8746-IND
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEARIPERIOD ENDED 31st March 2018
1 Project Nature and ActivitiesThe Project Development Objective is to enhance the capacity of the MPUDC to
1.1 Description of the Project: improve coverage of key urban services and increase the revenue of participating urbanlocal bodies.
Loan Agreement Date : 12-Jun-17
Effectivity Date: : 21 Aug 2017
Current Closing date: : 30 June 2022
Mention location : The Project will be carried out within the state of Madhya Pradesh .
The aim of the Project is to improve water supply and waste water management for theBrief nature of the project outputs :residents of Madhya Pradesh.
2 STATEMENT OF COMPLIANCE
This comprises of the Statement of Receipts and Payments, Balance Sheet, the Statement of Reconciliation with IUFR withExpenditure incurred and related notes and accounting policies to the financial statements.
3 SIGNIFICANT ACCOUNTING POLICIES:3.1 Financial Statements:
These financial statements have been prepared in accordance with accrual basis of accounting and receipts and payments has beenprepared as per cash basis of accounting.
3.2 Basis of Measurement:Project Financial statements have been prepared under the historical cost convention and on accrual basis of accounting.However,Statements of Receipts and Payments has been prepared on cash basis of accounting. Separate ledgers have been maintained inbooks of Accounts those are identied for world bank projects.
3.3 Changes in Accounting policies:This is the first year to prepare the Project Financial Statements of loan no. 8746-IND.
3.4 Fund Flow Mechanism:Fund Flow Mechanisms are controlled by Executing Agency and all payments are centralized.
3.5 Advance and other receivables:
Advances as and when paid are considered as expenditure and any recovery in the interim payment, the net amount paid afterrecovery are considered as expenditure.
3.6 Cash and cash Equivalents:All payments are made through bank only. No cash balance is maintained.
3.7 Accrued and other liabilities:Following liabilities accrued during the year, has been considered as expenditure.
Total cash expenditure reimburseable during the period ended on 31.03.2018 585,726,373
ADD: labour cess of Rs. 2110759 deducted from contractors bills. Reimburseable amount from WB Rs.14,77,531 (21,10,759*70%). The same has been deposited after 31.03.2018. However the same wasinadvertently reported as expenditure & claimed for reimbursement during the year 2017-18. 2,110,759Total expenditure claim for reimbursement 587,837,132
A;E
Annexure XII
Page II of XII3.8 Income:
There is no income to be recognized.
3.9 Foreign currency transactions and translation:a) Function and presentation currency -
Items included in the financial statements of the project are measured using the currency of the primary economic environment inwhich the entity operates (the functional currency), which is the Indian Rupee (INR).b) Transactions and balances - No transactions in foreign currency
3.10 Allocation of Common Costs:There is no common costs are allocated to defferent output/ activities.
3.11 Interest Expenses and Financial Charges :There is no financial charges & interest have been allocated to the project by the borrower.
4 (i) Funds Received from the Goverment:
Government of Madhya Pradesh provides fund to Madhya Pradesh Urban Development Co. Ltd. based onexecuting program submitted through budgetary support. Therefore in Receipts & Payments, the total funds arereported under F.Y. 2017-18. However the year wise details of fund provided are as under:
Amount in (INR)
CumulativeParticulars Current Year Prior Year Project Year
I to dateFund Received 700,000,000- 700,000,000
4 (ii) Expenditure incurred in financial year 2016-17
Cumulative
Current Year Prior Year Project to
(2017-18) (2016-17) (at(As at
ESMF Consultants - 4,410,000 4,410,000
Note : The expenditure incurred in previous year 2016-17 are also included eligible expenditures incurred under the projectbefore the effective date, but not earlier than 12 months before the date of loan agreement under retroactive financing.
5 DATE OF AUTHORIZATION
These financial statements have been authorized for issue by the Madhya Pradesh Urban Development Co. Ltd. On 26.12.2018.
As per our report of even date attachedFor: A.K.Surana & Associates. . For Madhya Pradesh Urban Development Co. LimitedChartered Account AFirm Regn No.00 2 /
j BHOPAL
CA M Ii Ka irpanI .(Partner) (Rajesh Nigam) (Anil Chansoria)M.No. 414809 A Finance Controller Engineer in ChiefPlace: Bo alDate: 3 1
Reconciliation of IUFR and Actual Expenditure of Project
S. No. Payments to Consultants 2017-18
1 Expenditure for Consultants (As per B/S) Amount (Rs.) Amount (Rs.)PMC 17,865,654ESMF (2016-17) 4,410,000 22,275,654Less: With Held (PMC) WAPCOS (605,662)
2 Advance (as per B/S) 73,08,514
A. Expenditure for PMC for 2017-18 28,978,506
Error in Project till date & Year till date coloum PMC Qut. ended 31.03.2018 605,662
Eligibile Expenditure as per IUFR for quarter ended on March 2018. 29,584,168
S.No. Payments to Civil Contractors Amount (Rs.) Amount (Rs.)
1 Advance for Civil work (AS per B/S) 359,036,068
2 Civil Work (Project Implementation exp.) As per B/S 211,075,777Less: Retention Money (10,553,789)Less: With Held civil work (699,430) (11,253,219)Net Civil work 199,822,558B. Advances, civil works, equipment 558,858,626Error in Project till date & Year till date coloum Civil workQut. ended 31.03.2018 699,430Eligibile Expenditure as per IUFR for quarter ended on March 2018. 559,558,056
Total Cash Expenditure (A+B) 587,837,132
Total Eligibile Expenditure as per IUFR for quarter ended on March 2018. 589,142,224
ADD: labour cess of Rs. 2110759 deducted from contractors bills. Reimburseable amount from WB Rs. 14,77,531(21,10,759*70%). The same has been deposited after 31.03.2018. However the same was inadvertently reportedas expenditure & claimed for reimbursement during the year 2017-18.As per our report of even date attached
For: A.K.Surana & Associates For Madhya Pradesh Urban Development Co. LimitedChartered AccountantsFirm Regn No. O C A
CA Mayur lit abirpantb 2 290(Partner) (Rajesh Nigam) (Anil Chansoria)M.No. 414809 Finance Controller Engineer in ChiefPlace: BhopalDate: ,n -