, '~ PCS & ASSOCIATES CHARTERED ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To The Ch ief Project Director, U.P. Pro Poo r Tourism Development Project, (Worl d Bank) Directorate of Tourism, GoUP, Lucknow - 2260 I O. Opinion We have audited the accompanying Project Financial Statements of UP Pro Poor Tourism Development Project (Agra Development Authority and Mathura-Vrindavan Development Authority), which compri se the Statement of So urces and Applicat ion of Funds and Breakup of Mobilization adva nce/ Retention Money fo r the year then ended, and other explanatory information. In our opini on and to the best of our informati on and accord ing to the exp lanati ons given to us, the aforesaid standalone financial statements give the information in the manner so req uired and give a true and fair view in conform ity with the accounting principles generally accepted 111 India, of the state of affa irs of the project as at March 31 , 2020. Basis for Opinion We conducted our audit in accordance with the Standards on Auditing (SAs) issued by the Inst itute of Chartered Accountants of India. Our responsib ili ties under those Standards are further described in the Aud itor's Responsibiliti es for the Audit of the Financial Statements section of our report. We are independent of the Project in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with tHe ethical req uirements that are relevant to our aud it of the financ ial statements and we have fulfilled ou r other ethical responsibilities in accord ance with these requirements and the Code of Ethi cs, We bel ieve that the aud it ev idence we have obta ined is suffi cient and approp ri ate to prov ide a basis fo r our opi nion. Responsibilities of Ma nagement and Those Charged with Governance The management of the project is responsi ble for the preparation of finan cial statements that • give a true and fair view of the financial pos ition, financial performance of the Proj ect in accordance with the accounting principles generally accepted in India, including the accountin g Standards issued by the Institute of Chartered Accou ntants of India. Thi s responsibility also includes maintenance of adequate acco unting records for sa feguarding of the assets of the project and for preventing and detecting fraud s and other irregul arities; se lection and app lication of appropriate accounting policies; mak ing judgments and estimates that are reasonable and prudent; and design , implementation and maintenance of adequate internal financ ial contro ls, that were operating effective ly for ensuring the accuracy and completeness of the accou nting records, relevant to the preparation and presentation of the financia l statements that give a true' and fair view and are free from material misstatement, whether due to fraud or error. The management is also responsi ble for oversee ing the project's financ ial reportin ss ~,(,,~ rv ~:.. LI' Q'22· .011 . \, Branch Office - 202, Second Floor, Harsh Plaza, Behind Commercial Tax (Sales Tax) Office 4-D, Meerabai Marg, Lucknow-226001 J Phone-0522-4067744 (0), 9415075740 (M) E-mail: pcsandassociates@gmail.com website : www.pcsandassociates.com Auditor's Responsibilities for the Audit of the Financial Statements Our obj ect ives are to obtain reasonab le assurance about whether the fin ancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an aud itor's report that incl udes ou r op inion. Reasonab le assu rance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it ex ists. Misstatements can arise from fra ud or error and are cons idered material if, individuall y or in the aggregate, they could reasonably be expected to influence the econom ic deci sions of users taken on the bas is of these finan cial statements. As part of an audit in accordance with Standards, we exerc ise profess ional j udgment and maintain professiona l skept icism throughout the audit. We also: Identify and assess the ri sks of materi al mi sstatement of the financ ial statements, whether due to fraud or error, design and perform audit procedures respons ive to those ri sks, and obtain audit ev idence that is suffic ient and appropriate to provide a basis for our op ini on. The risk of not detecting a materi al mi sstatement resulting from fraud is higher than for one resulting from error, as fraud may in vo lve co llu sion, forgery, intentional om iss ions, mi srepresentations, or the override of interna l control. Obtai n an understanding of interna l control relevant to the audit in order to des ign audit procedures that are appropriate in the circumstances. Eva luate the appropri ateness of accounting policies used and the reasonableness of accounting estimates and related di sc losures made by management. Eva luate the overall presentation, structure and content of the finan cial statements, including the disclosures, and whether the financial statements represent the underlyi ng transaction s and events in a manner that achieves fa ir presentati on. We communicate with those charged with governance regarding, among other matte rs, the planned scope and timing of the audit and significant audit findings, includ ing any signifi cant deficiencies in internal control that we identi fy during our audit. We also provide those charged with governance with a statement that we have comp lied with relevant ethica l req uirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on ou r independence, and where applicable, related safeguards. Information Ot her than the standalone Financial Statements and Auditor's Report Thereon Our op in ion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon . In connection with our audit of the financial statements, our respons ibi lity is to read the other in format ion and, in doing so, consider whether the other information is materially inconsistent with the financ ial statements or our knowledge obta ined in the audit or otherw ise appears to be materi ally mi sstated. If, based on the work we have performed, we concl ude that there is a material mi sstatement of this other in formation; we are required to report that fact. We have nothing to report in this regard. Other Matter Report on Other Legal and Regulatory Reqniremcnts I . We report that: (a) We have sought and obtained all the information and exp lanations which to the best of ou r knowledge and belief were necessary for the purposes of ou r audit. (b) In our op ini on, proper books of account as required have been kept by the Development Authorities so far as it appears from our examination of those books. (c) The PFS, dea lt with by this Report are in agreement with the books of account. (d) The Project funds were utilized for the purpose for which they were intended and expenditure reported through IUFRs and cla im ed through withdrawal appl ications rendered under the project are eligib le within the legal agreements. (e) Proper books of accounts have been maintained and project expenditure reported in the IUFR is in agreement with the Books of accounts. (f) IUFRs submitted during the period under audit are supported by adequate deta il s documentation maintained in ADA and MVDA 's offices to support cla ims to the world bank for reimbursement of expenditure incurred. (9) The accounting and interna l contro l system underlying the project and oversight over the proj ect fund s were adequate and maintained throughout the audit period. (h) Procurements made by ADA and MVDA under the project has been undertaken in accordance with agreed procedures. (i) Incons istencies observed during the audit of ADA and MVDA have been reported separatel y as an annexure to the Aud it repolt. (Refer Annexu re to the Audit Report). Place: Lucknow Date: 09-12-2020 FOR, PCS AND ASSOC IATES UDIN: 20413926AAAAHB4823 (Partner M. NO.: 413926 ANNEXURE TO THE AUDIT REPORT: - I. Audit observations at Agra Development Authority (ADA) 1- Compensation made aga inst R & R Ass istance has not been accepted by four beneficiaries, however, the amount has been depos ited in a separate bank account (ESCROW A /c). 2- Labour cess has been deducted on payment made to contractors. However, labour cess amounting to Rs.11 ,59,606/-has not been deposited with the labor Department up to the date of audit. However the same has been deposited on 03-1 1-2020. 3- GST-TDS deducted on payment made to contractors. However, GST-TDS amounting to Rs. 23,19,2 121- at the end of financial year 20 19-20 is payable to Agra Development Authority as the said TDS has been deposited by Agra Deve lopment Authority from the ir general AIC (IDBI -A/c No . 7871) & amount is not been tran sferred from the Project' s Account till the date of audit. However the same has been deposited on 04-1 1-2020. 4- Income Tax TDS deducted on payment made to contractors. However, IT-TDS amounting to Rs. 6,88,282/- at the end of financial year 20 19-20 is payable to Agra Development Authority as the said TDS has been deposited by Agra Development Authority from their genera l AIC (UB I-A/c No. 6535) & amount is not been transferred from the Project's Account til l the date of audit. However the same has been deposited on 04-11-2020. 5- Income Tax TDS of Rs. 1,87,0001- deducted in the Month of October 2019 was to be deposited on or before 07/ 11 /2019 but the same has been deposited on 17112120 19. Thi s may lead to Interest Liab ility under Income Tax Act, 1961 . 6- Income Tax TDS of Rs. 3,70,9441- deducted in the Month of November 20 19 was to be deposited on or before 07/ 12/2019 but the same has been deposited on 2211 2/20 19. Thi s may lead to Interest Liabil ity under Income Tax Act, 1961. 7- Payments are being made to the Contractors on the Basis of MB which is usually done by the Engi neer deputed by the ADA. The Tax Invoice is not bein g rai sed by the Co ntractor MIs Ram Avtar Gupta. II. Audit observations at MathUJ"a Vrindavan Development Authority (MVDA) I) Contractor M is Ram Avata r G upta is not meeting the specified deadl ines of the Project and the work is now being performed in extended Period . 2) Payments are being made to the Contractors on the Basis of MB wh ich is usually done by the Eng ineer deputed by the MVDA. The Tax Invoice is not being raised by the Contractor. Place : Lucknow Date : 09/ 12/2020 FOR PCS AND ASSOCIATES CHARTERED ACCOUNTANTS FRN: 0007343C (Partner) M. NO.: 413926 Credit No - IBRD 88ll-IN Statement of Sources and Applications of Funds Report for the year ended 31st March 2020 Agra Development~~~!!,!,_ _ _ _ _ _ _ _ _-:-_---,-:--=-~ government through budget (include assistance received by government for the 7,00,00,000 received directly by project implementing 74,61,016 1,lO ,~",UO.< 1 2: Tourist Products Development 22,59,45,916 3: Support to Local Economic Development For, PCS & Associates For, Agra Development Authority ntroller '",.*"'" Notes: This financial statement is prepared on a cash basis of accounting as per provisions of the financial rules and codes appl icable . Uttar I Pro Poor T< r;, n Credit No - IBRD RR"_IN Statement of Sources and AI!Qlications of Funds Report for the year ended 31st March 2020 Mathura-Vrindavan .. ,t in Rs Particulars Current Year preViOUSY~~ ; Balances (A) n~ ~t;t; Rt;~ R<; nnn Funds from govern ment through budget (include ~, __ "'o, assistance received by government for the , 84'R' nnn 231 "nn nnn 401,481,000 unds received directly by project implementing agency through external assista nce or other sources 15.285,077 2,242,762 17,527,839 Total ; (B) qq 4/;(',077 n4 <;4~,762 41q nnR R"q Total ; (C ~ A + B) «~n'\J ~ q47 ,\1q~4~,762 41q nnR R~q !by .V " '>'V ' , ~ '" 1: Destination Planning and Governance - 54,700 54,700 , ~ '" 2: Tourist Products Development and 87,281,661 : "~R sun 1n~ h'iO,544 ~V' ">'V' ,~'" 3: Support to Local Economic Development - : 4: Project Management - - - Total (D) 87,1R1 '"'' 7~ 4?< <;R" 163,705,244 .1. I (E) (16,7~n qnl q ~~7 ~14 (7, 1qR "qq' Closing 7h7 ~O? 1q4 233, 'inn Rt;'i 262.502,194 For PCS 8, Associates For, Mathura-Vrindavan Development Aut hority Partner @5V Chief Accounts Officer ~ ~l\:'I' pl \ Ch~ngineer Mem No - 413926 ... " '<.' ';-i""'W IIlrl1,,!!~ Date- 05/12./2D20 Il'il~ Notes: This financial statement is prepared on a cash basis of accounting as per provisions of the financia l rules and codes applicable. Breakup of Mobilization Advancel (Retention Money) (E) Current Year (2020) Previous Year (2019) Project to date Eligible Advances Recove!y l {Provided} MIs Ram Avataar Gupta 14,727,308 (14,727,308) Deductions Retention Money 2,386,974 4,226,844 6,613,818 Other Deduction 100,000 - 100,000 TDSGST (320,837) 478,884 158,047 TDS Income Ta x (150,597) 229,825 79,228 labour Cess 8,065 2,023,605 239,441 5,174,994 247,506 7,198,599 Total (E) 16,750,913 (9,552,314) 7,198,599 For, Mathura-Vrindavan Development Authority Chie~r rlf ~lflJ('liI~) Partner Mem No . 413926 «~, l1'iilf'lq'(:'(iitQ II\r~ Date - 00112./2020 Q~r;;'