GUPTA SACHDEVA & Co. To The Managing Director Bihar State Educational Infrastructure Development Corporation Limited, Patna Report on the audit of the Program Financial Statements Opinion We have audited the accompanying Program Financial Statements of "Enhancing Teacher Effectiveness in Bihar Operation" financed by the international Development Association in accordance with the Financing Agreement and Implementing Entity Agreement both dated 16.01.2020 IDA Credit no. 5578 IN and implemented by Bihar State Educational Infrastructure Development Corporation. These financial statements comprise of the sources and uses of the program fund for the period under audit, and notes to the financial statements, including a summary of significant accounting policies (collectively referred to as the "Program financial statements"- PFS) In our opinion the accompanying PFS give a true & fair view of the cash receipts and disbursements for the year ended on March 3j1st 2019 and expenditure of the program for the year ended on 31" March, 2019 its cash flows for the year then ended in accordance with the Financial Agreement and Implementing Entity Agreement stated as above. Basis of Opinion We conducted our audit in accordance with the Standards on Auditing (SAs) issued by Institute of Chartered Accountant of India (ICAI). Our responsibilities under those standards are further described in the Auditor's Responsibilitiesjbrr the Audit of the Financial Statements section of our report. We are independent of the implementing agency in accordance with the Code of Ethics issued by the ICAl and the ethical requirements stated in our letter of appointment no 256 dated 16.01.2020 for undertaking this assignment, that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and-IAYs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Registered Office 103, First Floor, Jagat Trade Centre, Fraser Road, Patna - 800001 ' +91612 2973080 /081 /083 ~ www.guptasachdeva.com 6 connect.patna@guptasachdevain facebook.com/guptasachdeva PATN| HArR DHA NEW DELHIo|kHAZrAA * K A ta cRd Management's Responsibility for the Program Financial Statements The Program Management & Board of Directors of BSEIDC are responsible with respect to the preparation of these program financial statements in accordance with the Program Financing Agreement and Implementing Entity Agreement, accounting principles generally accepted in India, including the Accounting Standards. This responsibility also includes maintenance of adequate accounting records for safeguarding the assets of the Fund and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the program financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor's Responsibility for the Audit of Financial Statements Our responsibility is to express an opinion on these program financial statements based on our audit. We have taken into account the provisions of the Program Financing Agreement and Implementing Entity Agreement, the accounting and auditing standards and matters which are required to be included in the audit report. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the program financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the program financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Management's preparation of the program financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of the program financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the program financial statements. Report on Other Legal and Regulatory Requirements Further to our opinion on the Program Financial Statements we report that in our opinion and to the best of our information and according to the explanatio to us, we believe that program expenditure during the period of audit has been correctly reported in the Program Financial Statement. Further we also certify that: a. Program funds were utilized for the purpose for which they were intended. b. Program expenditure were exclusively financed through the program funds and no other sources of funds have been received for incurring those expenditure. c. Proper books of accounts have been maintained and Program Financial Statement are in agreement with the books of accounts, d. Program financial statement has been prepared on cash basis in accordance with the accounting policies disclosed in the audited annual financial statements of BSEIDC and applicable to the preparation of the Program financial statement e. The accounting and internal control systems underlying the program and oversight over the Program funds except for the possible effects reported in management letter from auditor, were adequate and maintained throughout the audit period, and f. Procurements made by BSIEDC under the program had been undertaken in accordance with agreed procedures. For Gupta Sachdeva & Co. Chartered Accountants Firm Reg. No.: 006706 Gourayv an (Partner) M. No.: 068385 Date: 10.02.2020 Place: Patna BIHAR STATE EDUCATIONAL INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED CIN: U803018R20105GC015859 Annex 2: INDICATIVE FORMAT FOR PROGRAM FINANCIAL STATEMENTS Enhancing Teacher Effectiveness in Bihar Operation Credit No: 5578 IN World Bank: Programme Fund Statement of Sources and Uses of Funds Year : 01.04.2018 to 31.03.2019 S.No. Particulars Note No. Firgures as at the Firgures as at the end of the current end of the current reporting period reporting period A Sources of Funds 31.03.2019 31.03.2018 (1) Funds received from Government 1 3,07,41,04,487.33 2,50,46,52,846.00 of Bihar (net) (ii) Long term liabilities 2 (iii) Current liabilities 3 47,23,64,181.49 44,36,32,184.00 Total Rs. 3,54,64,68,668.82 2,94,82,85,030.00 B Uses of Funds (i) Long term advances 4 (ii) Current assets: (a) Short term advance 5 81,54,987.00 93,72,844,00 (b) Cash & Cash Equivalents 6 3,53,83,13,681.82 2,93,89,12,186.00 3,54,64,68,668.82 2,94,82,85,030.00 Senior Accounts Officer anaTg Director For GUPTA SACHDEVA & CO Chartered Accountants FRN - 006706N Place :Patna Date :10.022020 GOURAV GUNJAN Partner MRN -068385 79-. BIHAR STATE EDUCATIONAL INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED CIN : U80301BR20105GC015859 Annex 2: INDICATIVE FORMAT FOR PROGRAM FINANCIAL STATEMENTS Enhancing Teacher Effectiveness in Bihar Operation Credit No : 5578 IN World Bank : Programme Fund Statement of Sources and Uses of Funds Year : 01.04.2018 to 31.03.2019 Notes Forming Part of the Statement of Sources and Uses of Funds Particulars Firgures as at the Firgures as at the end of the current end of the current reporting period reporting period 31.03.2019 31.03.2018 Note 1: Funds received from Government of Bihar (net) Funds received from Government of Bier (I) Opg.Balance 2,50,46,52,846,00 2,37,18,54,11100 (ii) Receipt during the year 2,10,00,00,000.00 1,67,24,23,80000 Add: Bank interest 3,82,07,980.00 4,41,42,636.00 Less : Program expenditure: (a) Civil Works 1,51,77,88,545.67 1,58,37,67,701.00 (b) ICT 5,09,67,793.00 (c) Others (Please specify) Total Rs. 3,07,41M,487.33 2,50,46,52,846.00 Note 2: Long Term Uabillties (a) Trade payablestgoods, works & services etc.) (b) Others(retention money, security deposits etc.) Total Rs. Note 3 : Current Liabilities (a) Trade payables(goods, works & services etc.) (b) Others(retention money, 47,23,64,181.49 44,36,32,184.00 security deposits etc.) Total Its. 47,23,64,181.49 44,36,32,184.00 Note 4 : Long Term Advances Civil Works (mobilization/ secured advance etc.) Others Total Rs. Note 5 : Short Term Advances Civil Works (mobilization/ secured advance etc.) 81,54,987.00 93,72,844,00 Others Total Rs. 81,54,987.00 93,72,844.00 Note 6 : Cash and Cash Equivalents Cash - in - hand Balance with Bank/s 1,11,66,35,320.82 59,73,91,866.00 Bank Deposits PLA 2,42,16,78,361,00 2,34,15,20,320 00 T -tal . tj 3,53,83,13,681.82 2,93,89,12,186.00 Senior Accounts Officer Managn rets' For GUPTA SACHDEVA & CO Chartered Accountants FRN - 006706 Place :Patna GOURAV GUNJAN Date : 102.2020 Partner MRN -068385