BUREAU OF ENERGY EFFICIENCY CELERATI (Government of India, Ministry of Power) THE MAHATMA F. No. 24/16/Fin (Audit)/FMS/2012/ November 19, 2019 Mr Tapas Paul, Lead Environmental Specialist World Bank, India Country Office 70 Lodi Estate, New Delhi 110003 Subject Audit Report of GEF-World Bank-BEE Project 'Financing Energy Efficiency at MSMEs' (Grant No. TF 097126) for the year 2018-19 reg. Sir, This is to inform you that we have received the audit report in respect of GEF- WB-BEE Project 'Financing Energy Efficiency at MSMEs' (Grant No. TF097126) for the year 2018-19 vide their letter no. MAB-III/Rep/01-85/A/cs-World Bank/2018-19/662 dated October 22, 2019. Copy of the same is enclosed herewith along with following statements for your perusal. * Statement of Sources and Application of Funds * Reconciliation of Claims of Total Application of Funds * Statement of Expenditure Yours Sincerely, A/, (Milind De e) Director Enclosed: As Above Tftd v RTGft 4 i&f ATT Save Energy for Benefit of Self and Nation -4N, 441 , JRo 4Po 5N, 94 Rftd-Iio 066, AAWaVT/Website: www.beeindia.govin 4th Floor, Sewa Bhawan, R.K Puram, New Delhi-110 066 tAl/Te: 91 (11) 26766700, 4 4I/Fax: 91 (11) 26178352 No./MAB-IlI/Rep/0 1-85/A/cs-World Bank/2O 18-19/ &' 2 16> Dedicated to Truth in Public Interest To The Director eral, Bureau of E rgy Efficiency, Sewa Bha an, R. K. Puram, NewD i-110066. Subject: Audit Report in respect of World Bank Assisted Global Environment Facility (GEF) Project "Financing Energy Efficiency at Micro, Small and Medium Enterprises (MSMEs) Project (Grant No. TF 097126)" for the year 2018-19. Sir, Please find enclosed herewith Audit Report in respect of World Bank Assisted Global Environment Facility (GEF) Project "Financing Energy Efficiency at Micro, Small and Medium Enterprises (MSMEs) Project (Grant No. TF 097126)" for the year 2018-19 along with Management Letter for necessary action at your end. Copies of the Statement of Expenditure (SoE), Statement of Sources and Application of Funds, Reconciliation of Claims to Total Application of Funds and Management Letter are also enclosed herewith. Kindly acknowledge receipt. Yours faithfully, Encl: As above (Rajde$ngh) Principal irector Tel: 23239227, FAX: 23239211 e-mai : manebncdidelhi3'aJca vin No./MAB-III/Rep/01-85/A/cs-World Bank/2018-19/6(4 Dedicated to Truth in Public Interest R /Dated: 1 To, The Director General, Bureau of Energy Efficiency, Sewa Bhavan, R.K.Puram, New Delhi-I 10066. Report of the Comptroller and Auditor General of India on the Financial Statements of World Bank Assisted Global Environment Facility (GEF) Project 'The Financing Energy Efficiency at Micro, Small and Medium Enterprises (MSMEs) Project (Grant No. TF 097126) for the year 2018-19'. We have audited the accompanying financial statements of World Bank Assisted Global Envirorunent Facility (GEF) Project "The Financing Energy Efficiency at Micro, Small and Medium Enterprises (MSMEs) Project (Grant No. TF 097126)" for the year 2018-19 which comprises the Statement of Sources and Application of Funds and Reconciliation of Claims to Total Applications of Funds for the year ended 31 March 2019. These statements are the responsibility of the Project 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 of material misstatement. Our audit examines, on a test basis, evidence supporting the amounts and disclosures in the financial statement. 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 for World Bank assisted Global Environment Facility (GEF) Project "The Financing Energy Efficiency at Micro, Small and Medium Enterprises (MSMEs) Project (Grant No. TF 097126)" for the year ended 31 March 2019 in accordance with Government of India accounting standards. Tel: 23239227, FAX: 23239211 e-mail: rnabnewdelhi3(cag.gov.in In addition, in our opinion, (a) with respect to Statement of Expenditure (SOEs), adequate supporting documentation has been maintained to support claims to the World Bank for reimbursement of Expenditure incurred and; (b) subject to audit observations mentioned in the management letter appended to this Audit Report, expenditures are eligible for financing under the Grant Agreement. During the course of audit, SOEs pertaining to above Grant No. TF 097126 amounting to Z1,42,49,689/- (Z One Crore Forty Two Lakh Forty Nine thousand six hundred eighty nine only) for the year 2018-19 and connected documents were examined and can be relied upon to support reimbursement under the Grant Agreement. This Audit Report is issued without prejudice to C&AG's right to incorporate the audit observations in the Report of C& AG of India for being laid before the Parliament. (Rajde Si gh) Principal Director f Commercial Audit Place: New Delhi & Ex-officio Member Audit Board-Ill, Date: 2 New Delhi. Name of the Project : The Financing Energy Efficiency at MSMEs Project Grant No. : TF097126 Statement of Sources and Applicatign of Funds Report for the year ended 31st March 2019 (In Rs. '000) Current Previous Project Particulars Year year to date (2018-19) (2017-18) (2009-19) Opening Balance (if cash balances are controlled by the NA NA NA entity) (A) Receipts Funds received from Government through budget (these will include external assistance received by Government for the project) Funds received directly by Project Implementing Authority through 00 0 external assistance Amount financed by BEE 0 0 0 Total Receipts (B) 14,340 9,744 108,717 Total Sources C (A+B) 14,340 9,744 108,717 Expenditure by Component A. Activities to increase awareness and capacity building: Component 1.1 2,881 2,947 30,706 Component 1.2 428 0 12,796 B. Knowledge Management: Component 3 9,539 5,238 54,701 C. Increanental Operating cost: Component 4 1,492 1,559 10,511 Total Expenditure (D) 14,340 9,744 108,717 Closing Balance (if cash balances are controlled by the 0 0 0 entity) (C-D) Note: Project-todate column shows the cumulative amounts for the Current Year, Previous Year and prior to the Previous Year. Name of the Project : The Financing Energy Efficiency at MSMEs Project Grant No. : TF 097126 Reconciliation of Claims to Total Application of Funds Report for the year ended 31st March 2019 Amt. (Rs. '000) Schedules Current Year Previous Project year to date (2018-19) (2017-18) (200919) Bank Funds claimed during the year (A) 1 14,249 9,653 108,333 TOTAL Expenditure made during the year (8) 14,340 9,744 108,515 Add: Outstanding AC bills carried forward from 91 203 0 previous year Total 14,431 9,947 108,515 Less: Outstanding AC BilIs (C) if 182 294 182 Ineligible expenditUre (D) III 0 0 0 Add/Less (+/-) Expenditure cla inied excess/ c/uain d 1 (dUe to rounding off of anouints in 000 while Claiming IV 0 throUgh IUFR) (E) Total Eligible Expenditure Claimed (F) 14,249 9,653 108,333 (I) IC)-(D0)-(E) ___________ World Bank Share @ 100% of (F) above (G) 14,249 9,653 108,333 Note: oject to-date column shows the cumulative amounts for the Current Year, Previous Year and prior to the P 'vious Year. Milind D4(Dir'eo(r - BEE Sushant Chopra, PE (GEF-WB-BEE-Project) Date : 09/07/2019 Date : 09/07/2019 Schedule I _______________ *hAmount Previous year Bank Funds claimed duringthe year A u P 000) ARs. 'o30041 (Rs '000) Application No. 34 (01-04-2018 To 30-06-2018) 1,813 3,002 Application No. 35 (01-07-2018 To 30-09-2018) 1,583 3,324 Application No. 36 (01-10-2018 To 31-12-2018) 1,657 1,665 Application No. 37 (01-01-2019 To 31-03-2019) 9,196 1,662 14,249 9,653 Schedule 1 Outstanding AC Bills Amount (Rs.'0 Previous year (Rs. '000) Opening balance of unsettled AC Bills as on 294 23 01/04/2018 Add: AC Bills drawn during the year: Payable to PAO, Ofhie of the Accountant Generaf, audit towards CAG audit fee Toial AC Bills... 385 328 Less: AC Bills settled during the year 203 34 Cosing balanCe of un ettled AC bils as on 31/03/2019: CAG audit fee (2017-18) 91 182 294 CAG audit fee (2018-19) 91 182 Schedule IIl Ineligible Expenditure Amount Previous year (Rs. '000) (Rs. '000) NIL NIL NIL NIL NIL Schedule IV Expenditure claimed excess/claimed less (due to rounding off of amounts in '000 while claiming Amun P (Rs. '000) through IUFRI Expenditure chimed excess/less due to rounding NIL NIL off of amounts in IUFR in thousand rupees Actual expenditure incUrred 14,249,689 Expenditure claimed through four quarterly IUFRs 4 14,249,000 BEE-GEF-World Bank Project Grant No.: TF097126 Name of the Project : Financing Energy Efficiency at MSMEs Statement of Expenditure for the year endin& 31st March 2019 SL. No. Particulars Amount (Rs.) 1 Travel expenses 123,712 2 TA/DA 105,551 3 Audit Fee (CAG) 112,500 4 Other administrative Charges viz. meeting expenses, minor computer accessories, recruitment expenses etc. 5 Internal Audit Fee 90,900 6 Photocopier rental & Stationery 76,165 Activities for Marketing and Outreach effort and capacity building in clusters Knowledge Management activity: Staff (Consultants) Remuneratio 4,214,216 Knowledge Management activity: Agency contract services and publication of EOI for cross cluster activities 5,715316 10 Project Management Unit: Staff (Consultants) Remuneration 925,455 Total ... 14,249,689