C-307, III Floor "Upasana" 4-1-970. Ahuja Estate, Abid Road, B.G. ASSOCIATES Hyderabad - 500 001. Tel: (0) 24757912. (M) 9391014601 Chartered Accountants E-mail bharathgk@gmail.com To The Project Director Telangana Municipal Development Project -(TMDP) Audit Certificate Report on the Statement of Sources and application of Funds -Component C & Component D We have audited Statement of Source & Application of Funds -Component C & D of the Telangana Municipal Development Project (TMDP) Project financed under World Bank IBRD No._7816-IN, handled by Telangana Urban Finance & Infrastructure Development Corporation (TUFIDC). The Statement of Sources and Applications of Funds for component C and D for the year ended 31-03-2018 is attached with the report. These statements are the responsibility of the Project's management. Our responsibility is to express an opinion on the accompanying statements based on our audit. We conducted our audit in accordance with the Auditing Standards promulgated by the ICAI. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether these statements are free of material misstatement. Our audit examines, on a test basis, evidence supporting the amounts and disclosures in the 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, these statements present fairly, in all material respects, the sources and applications of funds of TMD Project for the year ended 31-03-2018 in accordance with the accounting standards. x-, In addition, in our opinion, (a) with respect to IUFRs, 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, IUFRs (each application no. and amount to be indicated) and the connected documents were examined and these can be relied upon to support reimbursement under the Loan/Credit Agreement. For B G Associates Chartered Accountants 005210s (Bharath Gopalakrishnan) M No 025494 Date.24/12/2018 Place Hyderabad Statement of source and uses -Component C Statement of Soruces and Uses - Component C Particulars Amount in Rs. Amount in Rs. Sources of fund Opening Balance 126,427,770/- Add: Receipts Receipts from C&DMA 901,690,000 /- Interest Received 4,616,618 906,306,618/- Sources of fund 1,032,734,388/- Uses of Fund Transfers to ULBs Kollapur 120,000,000/- Jammikunta 257,500,000 /- Medak 168,900,000 /- Kothagudem 183,900,000 /- Huzarabad 120,000,000 /- Malkajgiri 181,400,000 /- 1,031,700,000/- Bank Charges 649/- Uses of fund 1,031,700,649/- Balance as on 31-03-2018 1,033,739/- Statement of Sources and Uses - Component D Particulars Amount in Rs. Amount in Rs. Sources of fund Opening Balance 7,943,558/- Add: Receipts Receipts from C&DMA 37,850,000/- Interest Received 37,850,000/- Sources of fund 45,793,558/- Uses of Fund Expenditure TUFIDC Reimbursement of expenditure 2,216,406/- Audit fees 21,600/- TPQA Payments 19,733,916/- Bank Charges 649/- 21,972,571 Uses of fund 21,972,571 Balance as on 31-03-2018 23,820,987 Particulars Amount A. Expenditure under Component C Rs.103,17,00,649/- B. Expenditure under Component D Rs. 2,19,72,571/- C. Total expenditure (A+B) Rs. 105,36,73220/- Total amount claimed from Bank as per Rs. 105,38,36,017/- IUFR Shortfall/Excess (C-D) Rs. 1,62,797/-(Excess)