Chartered Accountants Notes to Accounts Forming Part of Balance Sheet as on March 31, 2019 1) Opening Balance of Grant was Rs. 3, 17, 56,877. Further Rs.16, 48, 32,000 was received in FY 2018-19 as Grant in aid. The total expenditure reported for the project was Rs. 6,98,53,066 which includes the advances received of Rs. 4,80,00,000 and Rs. 8,33,727 for fixed assets. 2) Interim Unaudited Financial Report -IUFR for the project has been submitted half -yearly for the period ending September 30, 2018 and March 31, 2019. An expenditure amounting to Rs. 557.07 lakhs has been claimed as reimbursement, there is a shortage of claim by Rs. 1.75 Lakhs. 3) As per the provision of The Income Tax Act 1961, under section 194C, deductor required to deduct TDS at the rate of 2% on payment made to person other than individual / HUF, but management has deducted 1% TDS on payment made to the Combined Tours & Travels. 4) As per CBDT Notification 23/2017, TDS shall not be deducted on GST component of invoice. So, it can be said that TDS should not be deducted on the tax element of the transaction. However, it has been noticed that management is in the process of deducting TDS on the tax element of the every transaction made during the year. 5) As per the accounting standard- 10 Property Plant and Equipment, deprecation should be charged on the Fixed Assets, but during the current year management has not charged deprecation on the Fixed Assets. 6) During the course of audit we had gone through the Internal Audit Report, some of the observation raised by the Internal Auditor are cleared by the management and same has been verified by us like: * Payment made to unknown parties, during the audit we had verified the bills along with their supporting. * Cheque Issue Register was maintained properly and the same was verified by us during our Audit. For N. C. Mittal & Co. Chartered Accountants FRN: 000237N Nohar Chand Mittal (Chartered Accountant) MRN: 014213 Date: 23/01/2020 Place: New Delhi 4 Head Office: Behl House, 13, Daryaganj, New Delhi,110002 Phone: +91-93151-01923, +91-96504-35454 Fax: +91-011-23275021, 23241613 Email: Firm's Website: Resource Website: www.auditfirm.net Offices at: Faridabad, Bangalore, Bikaner, Chennai, Dhanbad, Ernakulam, Guwahati, Hyderabad, Raipur, Rajkot, West Bengal, Ranchi, Shimla, Kolkata UKHSDP PROJECT-5948 IN Reconciliation of Claims to Total Applications of Funds Ann 2 (Rs. in Lakhs) Particulars Schedules Current Year Previous Project Year to date Bank Funds claimed (A) 1 557.07 66.76 623.83 Withdrawal claims for ' half year as per 468.49 29.40 497.89 IUFR Withdrawal claims for 2nd half year as per 88.58 37.36 125.94 IUFR Total Bank funds claimed 557.07 66.76 623.83 Total expenditure made during the year (B) Expenditure as per books of acount 698.53 77,56 776.09 Less: Ineligible expenditure (C) II Expenditures not claimed (D) III Total eligible expenditure claimed 698.53 77.56 776.09 (E)=(B)-(C)-(D) World Bank Share @ 80% of (E)=(F) 558.82 62.04 620.86 Excess/ Shortage of claims over (1.75) 4.72 expenditure (A)-(F) Finhuj 'aliiptroller Project Director Notes: 1. Total expenditure made during the year (B above) must be the same as the Total Project Expenditure (A) shown on the Statement of Sources and Applications of Funds. 2. Expenditures not claimed (D above) may reflect timing differences for eligible expenditures incurred during the year but claimed after the year end. For N. C. MITTAL & CO. C Aoatnt Annexure 1 UKHSDP PROJTECT-5948 IN Sources and used of Funds (Amount in Rs. Lakhs) Expendit Non claimab Eligible Reimbu Reimbu Particulars le Expendit rsement rsable ure % amount FOR the FOR year the year (3) = (1) - Sources 1 2 (2) 4 5=3x4 Opening Bank Balance as on 01.04.2018 316.72 316.72 80% Add: Amount received during the year 1,648.32 1,648.32 Add: Interest 20.24 20.24 Add: Prior Period Interest 0.73 0.73 Total Sources 1,986.01 1,986.01 Expenditure by Component: Component 1:Innovations in engaging the private sector Sub-component 1.1: Innovations in integrated delivery of healthcare services 480.00 480.00 80% 384.00 Sub-component 1.2: Innovations in H lealthcare Financing Component 2: Stewardship and System Improvement Project core team and office expenses 218.53 218.53 80% 174.82 Capacity building, Information System, Research as per PP TOTAL Uses (PROJECT EXPENDITURE) 698.53 698.53 80% 558.82 Closinz Balance as on 31.03.2019 1,287.48 _1,287.48 _ _ FinaA iijiroller Project irector WD"'' A1ccou% Notes: 1. This financial statement is prepared on CASH basis of accounting. 2. Any other project specific Note. For N O.N1TTAL Co. \j§E r'J_-