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INDIAN AUDIT AND ACCOUNTS DEPARTMENT
OFFICE OF THE ACCOUNTANT GENERAL (AUDIT-1) RAJASTHAN
Janpath, Jaipur- 302 005
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2385430-39, 2385131, 2385232       -qU :0141-2385181                   agaurajasthanl @cag.gov.in
Telephone  2385430-39, 2385131, 2385232      Fax :0141-2385181             E-mail agaurajasthanl@cag.gov.in


Report of the Comptroller and Auditor General of India
The Project Director,
Rajasthan Agricultural Competitiveness Project,
Rajasthan Agricultural Competitiveness Management and Implementation Society
Second Floor, SIAM Block,
Durgapura, Jaipur - 302017,
Report on the Project Financial Statements
We have audited the accompanying financial statements of the 'Rajasthan
Agricultural Competitiveness Project financed under World Bank Loan No. (Cr. No.
5085-IN)" which comprises the Statement of Sources and Application of Funds and the
Reconciliation of Claims to Total Application of Funds for the year ended 3 1-03-202 1.
These statements are the responsibility of the Project's management. Our responsibility is
to express an opinion on the accompanying financial statements based on our audit.
We conducted our audit in accordance with the Auditing Standards promulgated by
the Comptroller and Auditor General of India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement. Our audit examines, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. It also includes
assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
in our opinion, the financial statements present fairly, in all material respects, the
sources and application of funds of "Rajasthan Agricultural Competitiveness Project (Cr.
No. 5085-IN)" for the year ended 31-03-2021 in accordance with Government of India
accounting standards.
In addition, in our opinion, (a) with respect to SOE's, adequate supporting
documentation has been maintained to support claims to the World Bank for
reimbursements of expenditures incurred, and (b) except for ineligible expenditures as
detailed in the audit observations, if any, appended to this audit report, expenditures are
eligible for financing under the Loan / Credit Agreement. During the course of the audit,
SOEs / FMRs and the connected documents were examined and these can be relied upon
to support reimbursement under the Loan/Credit Agreement.
This report is issued without prejudice to CAG's right to incorporate the audit
observations in the Report of the CAG of India for being laid before Parliament/State or
UT Legislature.
Sr. Dy. Accountant General / AMG-I


Audit Observations
Irregular payment towards construction of Farm ponds in absence of non following tender
process as prescribed by World Bank & non verification of bill/muster roll Rs 1.68 crore.
As per para 2.10 of Chapter 2 of Procurement manual issued by World Bank for civil works,
goods & consultancy services for RACP tender process is as follow
i  For goods & service more than 75 lacs & upto 297 lacs - National competitive
bidding
ii. For goods & service less than 75 lacs - shopping procedure
iii For goods & service less than 7.5 lacs - Direct contracting
Further as per chapter 6 of Procurement manual "It need to be noted that community
involved procurement must not compromise with principles of competitiveness and
transparency of process and items procured should meet the required specifications & quality
of standard.
During the course of audit it was noticed that PMU Jaipur has made payment of 1.68 crore
for construction of Farm pond in Mhokumpura cluster in which neither prescribed procedure
for construction as laid down by World bank nor at beneficiary level was followed. Further it
was not clear tinder what circumstances payment was made, to whom it was made, how
much payment by which voucher is not clear, Thus a sum of Rs 1.68 crore paid towards
construction of Farm pond is irregular.
2. Avoidable expenditure in absence of procurement procedure as laid down in RACP
procurement rules for purchasing tractor mounted power sprayer Rs 10.50 lacs.
Clause 1.2.3 of RACP procurement has laid down the procedure & limit for procurement. Further
clause 4.4.2.1 states that "Shopping should not be use an expedient to by pass more competitiveness
niethod or fraction large procurement into smaller ones solely to allow the use of shopping".
During the course of audit it was observed that World Bank has granted permission for purchase of
necessary pesticide and equipments through national competitiveness bidding. However, project
undertook shopping procedure in place of competitiveness bidding for tractor mounted sprayer as
detailed below:
Name of Firm   Purchase   Qty       Per  unit Total      Actual     AmoUnt    of
order no.            price     purchase   purchase qty payment
amount
M/s Jangir Engi. 2178-81  dt 200 units  40750  81.49 lakh  200      9126880.00
Works  Nohar, 27.6.2020
Hanumangarh
M/s SDG Power 1531-34     211 units  35500    74.91 lakh  226       8389360.00
equipment,
Jaipur
Total                     411 units           156.40                 17516240.00
It is clear from above table that M/s Jangir engi. Works has been paid 10.50 lacs excess ( 5250*200)
for same nature of work, which could have been avoided if national competiti  ss bidding was
followed.
Sr. Audit ff er/CA Cell


RAJASTHAN AGRICULTURE COMPETITIVENESS PROJECT
Budget head wise expenditure
Name of Department          Budget Heads         Amount in Lacs
2401-00-800-(31)-[01]-5                     5.36
2401-00-800-(31)-101]-7                     0.27
2401-00-800-(31)-[01]-8                    97.95
2401-00-800-(31)-[01]-09                    0.00
2401-00-800-(31)-[011-12                 1110.68
2401-00-800-(3 1)-[0]-29                    2.40
2401-00-800-(31)-[1 ]-36                   0.00
2401-00-800-(31)-[0 1]-92                   0.00
2401-00-800-(31)-[01]-93                  143.04
4401-00-800-(06)-[01]-17                    0.00
2401-00-789-(11)-[O1J-5                     3.34
2401-00-789-(1 1)-[01]-7                    0.00
240 1-00-789-(11)-[01]-8                   33.36
2401-00-789-(11)-[01]-9                     0.00
Agriculture    2401-00-789-(11)-[01]-12                  12334
2401-00-789-(l I)-[0 1]-29                  0.00
2401-00-789-(11)-[01]-36                    0.00
2401-00-789-(1 1)-[01]-92                   0.00
2401-00-789-(11)-[01]-93                   26.78
4401-00-789-(05)-[01J-17                    0.00
2401-00-796-(63-1(61-5                     2.20
2401-00-796-(63)-[01J-7                    0.00
2401 -00-796-(63)-[0 1]-8                  26.83
2401-00-796-(63)-r0 1-9                    0.00
2401-00-796-(63)-[01-12                  324.91
2401-00-796-(63)-[0 1-29 0.29
2401 -00-796-(63)-[01]-36                   0.00
2401-00-796-(63)-[01]-92                    0.00
2401-00-796-(63)-[01]-93                   71.62
4401-00-796-(05)-[011-17                    0.00
TOTAL                                  1972.37
2401-00-800-(31)-[02]-12                  508.94
2401-00-800-(31)-1021-05                    0.85
2401 -00-800-(3 I )-[02-36                  0.25
2401 -00-789-(11)-[021-12                  13.39
Horticulture   2401-00-789-(11)-[02]-05                    0.18
2401-00-789-(11)-[02]-36                    0.23
2401-00-796-(63)-[02]-12                   39.79
2401-00-796-(63)-[02]-05                    0.08
2401-00-796-(63)-[02]-36                    0.15
TOTAL                                     563.86
Jr. Acet, RACP, JAMM


2401-00-800-(31)-[03]-05                     4.06
2401-00-800-(31)-[03J-29                     0.27
2401-00-800-(3l)-[03]-36                    2.06
4401-00-800-(06)-[03]-17                  492.73
2401-00-789-(11)-[03]-05                     0.46
Watershed      2401-00-789-(11)-[03]-29                    0.00
2401-00-789-(11)-[03]-36                     0.14
4401-00-789-(05)-[03J-17                   232.00
2401-00-796-(63)-[031-05                     0.35
2401-00-796-(63)-[03]-29                     0.00
2401-00-796-(63)-[03]-36                     0.10
4401-00-796-(1 0)-[03]-17                  175.53
TOTAL                                    907.70
2401-00-800-(3l)-[04]-05                     1.84
2401-00-800-(31)-[04]-07                     2.47
240 1-00-800-(31)-[04]-12                  228.46
2401-00-800-(31)-[04]-29                     2.80
2401-00-800-(31)-[04J-36                     0.99
4401-00-800-(06)-[04]-93                   221.22
2401-00-789-(11)-[04]-05                     0.94
2401-00-789-(11)-[04J-07                     1.05
Animal Husbandry 2401-00-789-(11)-[04J-12                     25.19
2401-00-789-(11)-[04]-29                    0.00
240 I-00-789-( 1)-[04]-36                   0.03
2401-00-789-(11)-[041-93                    48.96
4401-00-789-(63)-[041-05                     0.76
2401-00-796-(63)-[04]-07                     0.79
2401-00-796-(63)-[04]-12                     0.29
2401-00-796-(63)-[04J-29                     0.02
2401 -00-796-(63)-[04]-36                    0.39
12401-00-796-(63)-[04]-93                   41.50
TOTAL                                    577.70
2401-00-800-(31)-[05]-05                     1.46
2401-00-800-(31)-[05]-08                    25.33
2401-00-800-(31)-[05J-12                     0.26
2401-00-800-(31)-[05]-29                     0.68
440 1-00-800-(06)-[05]-16                    0.38
2401-00-789-(11)-[05]-05                     0.00
2401-00-789-(11)-[05]-08                     0.00
Ground Water    2401-00-789-(1 1)-[05]-12                    0.00
4401-00-789-(05)-[05]-29                     0.20
4401-00-789-(05)-r05]-36                     0.00
2401-00-796-(63)-[051-05                     0.00
2401-00-796-(63)-[05]-08                     0.00
2401-00-796-(63)-[05]-12                     0.00
2401-00-796-(63)-[05]-29                     0.29
2401-00-796-(63)-[05]-36                     0.00
4401-00-796-(10)-[05J-16                     0.00
TOTAL                                     28.60
_,-Jr. A AC,                                  I PUR


2401-00-800 (31)-[06]-05                   i 81
2401-00-800-(31)-[06]-07                   2.00
2401-00-800-(31)-[06]-29                   3.49
4401-00-800-(06)-[06]-17                1645.17
2401-00-789-(11)-[06]-05                   000
Water Resource   2401-00-789-(11)-[06]-07                   0.00
2401-00-789-(I 1)-[03]-29                  0.50
4401-00-789-(05)-[06]-17                 715.14
2401-00-796-(63)-[06]-05                   0,00
2401-00-796-(63)-[06]-07                   0.00
2401-00-796-(63)-[06]-29                   0.96
4401-00-796-(10)-[06]-17                 331.82
TOTAL                                   2700.89
GRAND TOTAL                            6751.12


Annexure -3
RAJASTHAN AGRICULTURE COMPETITIVENESS PROJECT
IDA Credit No.5085 IN (P124614)
Statement of Expenditure for the year ending 31.03.2021
Particulars                                                Amount in (Rs.)
DPMU Exp                                                        38639233
Pay & Allowance                                                 33036767
Bank Charges                                                          50
building rent                                                    3193137
Manpower Consultancy Charges                                    46928042
Office Exp.                                                     4692882
c                                             179988
Publicity & Advertisement/ JWF Paid                              1014821
Security Services                                                 626893
Telephone Exp.568435
Travelling Exp.                                                   5643522
240022
Training Exp.                                                     420440
Agribusness Consultancy Fee                                      18598385
Vehicle Rent Exp                                                 1662248
Monitoring and evaluation Exp                                    9607018
meeting and hospitality                                             6758
Horticulture - Solar Pump                                              0
Professional fees                                                6705629
DPMU Farmer Contribution-Prior Period                                  0
Total Payment (1)                          163047760
at Agriculture Dept.                                           197237305
17237305
at Horticultu re Dept                                           56386000
Pt Pe     (II)                           675112122
.t                 Totall Husbandrv D pa.y
P 'e   irdfctor                      Jr.Accountant


RAJASTHAN AGRICULTURE COMPETITIVENESS PROJECT
IDA Credit No.5085 IN (P124614)
Annexure -4
Statement of Sources and Application of Funds
Report for the year ended 31.0312021
Amount In thousand
Particulars                                          Current year  Previous Yea Project to Date
Opening Balance (if cash balances are controlled
by the entity) (A)                                        63240.000     71155 N.A
Society Treasury Account                      35135
Project Bank Account/s PMU                    10738
Project Bank Account/s DPMU                   11242
Cash in Hand                                      6
Advance for Partner Agencies                   2906
Other advances                                3213
Receipts
Funds received from Govt. through budget (Treaury
System- Line Department))                                   675112     1129149      4014446
Funds received directly by Government of
Rajasthan                                                   124657      185988       851182
Interest Income                                                449        314          4097
Other Receipts                                                6673       10645        30607
Miss. Income                                    81
Tender Fees                                     54
Recovery Income                                1038
DPMU Farmer Contribution                         0
Security Receipts                              5500
Total Receipts (B)                                          805891    1326096       4900332
Total Source (C =A+B)                                       870131    1397251       4900332
Expenditures by components
A. Climate Resilient Agriculture                            630466    1053344       319
B. Market and value chain                                    77650       2405        190761
C. Farmers organisation and capacity building                17422      74003        331286
D. Project Management & Monitoring Evaluation               112621     158728        702517
Other Payment                                                 9444      45531        446611
DPMU Farmer Contribution/ Sr. credtor          94
Security Refund /Payments                     9350
Total Applic-,- of Funds (D)                                847604    1334011       4837092
Closing Balance (C-D)                                        22527      63240         63240
Society Treasury Account                      7959
Project Bank Account/s PMU                    11257
Project Bank Account/s DPMU                      0
Cash in Hand                                     0
Advance for Partner Agencies                  2906
Other advances                                 405
Pr 'ect                                 Jr.Acco  n


RAJASTHAN AGRICULTURE COMPETITIVENESS PROJECT
IDA Credit No.5085 IN (P124614)
Annexure -5
Reconciliation of claims to total Application of Funds
Report for the year ended 31.03.2021
Rs. In Thousand
Schedules Current Year Previous Year  Project to Date
Bank Fund Claimed made during the year (a)            627397        928759       3993574
Total Application of Funds (b)                        847604       1334011       5684696
Less: Outstanding AC Bills ('C).                           0             0             0
Intagngible Expenditure (d)                                0             0             0
Expenditure not claimed ('e)                              94           380       474.087
Adjustment of Security (f)                              9350          6833         27816
Total Eligiable expenditure calimed (g)= (b)-('c)-
(d)-{ e)- (f)                                         838160       1326798       5656406
World Bank Share @70 % of G                   75%          70%           70%
PrQ     c                                        Jr.Acco  at
mt, *4t.~


Government of Rajasthan
Rajasthan Agricultural Competitiveness Project
II floor, Academic block, SIAM campus, Durgapura, Jaipur-302017
Tel.no. 0141-2554215 Fax: 0141-2554214; E-mail: pd@racpmis.com
No. F. ()/Acctt./RACP/CAG/2018-19/ 322.                                  Date: !c/67 j.Z     J
Sr. Audit Officer (CA cell).
Officer of the Accountant General Jaipur,
GSSA, Rajasthan Janpath, Jaipur,
The assertion letter is provided in connection with your audit of the financial statement of the
Rajasthan Agricultural Competitiveness Project for the year ended 31" March 2021. We acknowledge our
responsibility for the fair presentation of the financial statement accordance with the cash basis of accounting
followed by the Government of India and we confirm to the best of my knowledge and belief, the following
representations made to you during the audit:
*  The Project financial statement are free of material misstatements, including emissions
*  Project funds have been used for the purpose for which they were provided
*  Project expenditures are eligible for the financing under the Loan/Credit agreement.
* There have been no irregularities involving management of employee who have a significant role in
internal control or that could have a material effect on the project financial statement.
* We have made available to you all books of accounts and supporting documents relating to the
project.
* The project has complied with the conditions of all relevant legal agreement including the financing
agreement. The project Agreement, the project Appraisal documents. The minutes of Negotiations
and the Borrower's Project Implementation Plan.
rpal Singh)
Project Director
RACP, Durgapura, Jaipur