.. " . '"'I INDEPENDENT AUDITOR'S REPORT We have audited the attached Project Financial Statements of Niltional Cydone Risk Mitigation Project (Phase U) implemented by Gujarat State Disaster Management Authority (GSDMA) for the year ended on 31.03.2018 which comprise of Financial Reports, Utilization Certificates, Bank Reconciliation Statement, Unspent Balance Statement, Budget Utilization Statement and Statement showing Central Share of Expenditure in NCRMP II Project, Summary of Significant Accounting Policies and Notes on Account. Management's Responsibility for Financial Statements ·11,e Management of organization is responsible for the preparation of these Pr¥Ct Financial Statements that give a true and fair view of the Iinancial position, of the project in accordance with the accounting principles generally accepted in India, including the Accounting Standards issued by the !CAL This responsibility also includes maintenance of adequate accounting records in accordance, with the requirement of th~ Act fa, safeguarding the assets of the organization and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor's responsibility Our responsibility is to express an opinion on these Project Financial Statements based on our audit. We conducted our audit in accordance with the Standards on Auditing specified by the !CAI. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Project Financial Statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Project Financial Statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the Project Pinancial Statements, whether due to fraud or error. In making those risk assessments; the auditor considers internal financial control relevant to the preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the organization has in place an adequate internal financial control system over financial reporting and the operating effectivene.ss of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made , by the organization, as well as evaluating the overall presentation of the Project ' Financial Statements. •: • • I ...:;./' I 3 c. r. ovonue. bNru bh~wan, koll<.\10 700072 545 9. L r0<>d (sou\hJ, room 410./,owroh 711 I +919030049131 .-91 312236004a I +9\ 33 263s6 I I I lnfooroygho,hJn roygh<>>hOhotma1Lcom royglJOlhe<}matl< I I I www1oyghos I bvrdwan kharagpur noida vilf.lnagaram POcst uf our knowl,·di:'-' ,ind belief were necessary for the purposes of our- aud,1 except ,, 'Fl) lnl~rcst yet lo be collected" for Rs.895.49 Lakh as reflecting in 11,ttth 1-c>condli,Hion St,111mwnt as on 31" March 2018 annexed to this Report. l•I In <'Ur op11110n, the ,1ttu..:hcd Project Pinandal Statements give the in!ormntion ,1~ required by th.:? Act/ Rules/ Program Manual & Guidelines .in the manner so n',111iri?d except an udvancc of Rs.5,61,600/- for which no settlement derails '" ,1il,1ble, thou eh daimcd ~s c>-penditurc under Component or, t , I l'lw l'rn1,·, 1 l'i11anci,1l 'il,1k111cnts r,11,, l!ov l',11'in,•r) Kulk,11,i, • JI h•m bersh ,p No - lb "31JSrch 2018 (it,. In !Au) J'.\rtH'Ul.lrJ for the period Cumubtlve forcc•n for the ) I fln,ncl1I v..r Project till d.tle nutqu.uter till date I· 0t1'·ui ni: 8.111,ncc or Fu ndij (A) 15.~72.00 . - - R<'C\"il''"' n '-L1t1· Gil\ .-rnml-tH Funt!'\ . . 11,250.00 . l.,,11\1•11uhcn1 of JuJ11, hin•I, . . 17,SOUO . ll'th• r ft,,t..•1pL.,/lrt<1m,i: 5-1859 548.59 1,671.75 - TN-ll ll,·cd1Hc. (ll) Tot.11 Snurco {C•A .,n, 5-1859 16.WUO 5-1859 545.59 30,423.SS 30,W.SS -- - F,1~n«MurC' h"-' comr,on,nt \, J .uh· \\'.,mint,: 01, h'mln.11lun to . 1 ,. l\"-1'-t.al l untmunill1!°"' . -- .\ ~- n,.., \ ,,111111un11\· n1nl 1 1h1,1hn11 rmJ . . - . - . - - ,.,,.~~ t!l°,Utl II~ Tot.al . - . . ,- B ( \'clonl" 1(1,1< M~n.tr.tnu:·nt lttJrJ.(,tf\1ctu,'° ~ I I ,_, 1t,1w "'h1•lh•r, .. . 11 II ,:.• :, l ~ 1111•,lf uu,,,,, cit l \~lo,~ ~helll'f:, 16908 169.0S 8,001.90 ·. -- b1 L~•111..h I< llrnh~c°' . s. j lt.1old, m evctonc ,.hd1~r and 681.91 681.91 6,615'.06 . Nb-!t.1t10H'(, 9}2 (. nnN.-c-t1n1: Ro.,d.., . . . - ' '. \. 1111,I~·--· . . . - i\-4 I 111h..-,:,oun,l c.,Mm}t . . - - . . --- Tut•I &50.99 450.99 14,616.96 i f h·.:hnlc,,I 1\,c.1,1.1ncc for t Stu.•111;1h,•olni: l .lp.1ch\ on Di~.i'1~r Risk 0 i \brur.~m~nt ..__ ~-· I '.1"~ \,-w...,,,mt"t1I . . . . r I 1p.u 11\' P•11hf10~· nn ih.,1· 1cr n0,&9 60.69 60.89 . n\11·.,,~. ·ntt·m r,. r.un,,t\.· .met lo,, ,\,',4"'\,n,cnc . . . . . - - To1•I 60.89 60.89 60.59 ---- - I). rmjcc·1 M;m.1semrnt &. In, lc11h:in;,(ion Su rt O t Jurrt!mcnt...,I O •r.,Un • Cost H0,65 140.~ 190.52 0-1 • 11. '('hnk.1l ,\Mb:tanc~ Cust 368.66 368.U ?SS.97' 1)-1 ll'C ,1rul c,1paC1ly bull,lmg for 0.25 0.25 0.25 I. J---------'--'---"-t----"'----t------11--- . M.111,,,-:\.~ll"'IH u( c.;,,crorw '-ih~hcr:. 1'ot•I 509.76 509.76 9-16.,S I C.r.1nd I ot,1I of l~~pcodltur"' tU) 1.-121.65 1,421.65 15,62UO f hd•·•nc,, glven In th< current period (E) t\dvJncc1 .tcljush:J in the current qu;\rt(!r :ind ron~u11dattd In the expenditure f J(Cmml ft') Clo,lng bal.rnce of funds (H•C-D-E+F-C) 14,?98.95 f .,, /., un t,~h,1 I I of Fur Ro, (:hoi,h f.:. A,~Q<'"i.1tc.. remtnl Authority Cuj,ir.al 51.11~ Ois.utcr Mim.11, 11.Jrh·rctt 1\ccount,11u, <. r fl\:-/• 32(~ I• I .,_~v(bi u --,,, II C:A Suhr.,t.1 Hor Jl,.n1n~1 ~kmllrrc;hlp No..O!v'l59 l'l,c,: C,111J • O)..• ).I.I~ f Standalone Audited Fin•nci>I Report Cuj•r•t Sl•I• Ois.utcr M•nai;cmcnt Authority N•tion•I Cytlonc Rl5k Milig•tion • Phase 11 World Bank Funds Requirement Report from 151 April 2017 to 31st March 2018 (It,. In YCS) Compono,nt D Component C Components B I' Jrhcul.us Tol•I E>.1~ndtl1Jfl• ro, lhl, ocnod WII ~h,m• <>I the .,bovc 1.421.65 1.208.90 (WB Sh•re 509.76 509.76 (WB Share 60.89 60.89 (WB Shue 75¾) 850.99 638.25 I. B>nl. lunJ., ,..._,.,v,•,I 1111 d~t,• (I) . . . T<11.,1 "'"J<. 'CI 1,,,..,, .. Iitute Iii! . 15,624.bO 9-16.75 60.89 .........14,616.96 tl.11,• (II) l\'ll share or 1h.. above (Ill) 11,970.36 9-16.75 60.89 10,962.72 funds Unulih,~ ,J (IV•I-IU) (11,970,36) (9-16.75) (60.89' (10,962.72) Fnrt'(~sl for proJ"l payrncnl5 for . . . ilC'\l (IClll••• (\') WlhhM<' ut the above (\II) . . . I css Funds U111i1.ed (IV) (11,970.36) Net Fund, '"'lllllCd from bank 11,970.36 (\lll•VI-IV) Gho,h & As-eelares 1111)' l'or (h.utt'r~J ,\,·,ou11t.1nts Guj,tral State Ois.utcr M,rugcmcnt Authority mi\: JWOtq I .. r - St.in(blunc Audited Ftn.a.nclal Report Cu)iu.at St.11c- Oh~•tcr Ma.iugemenl Authorhy Nolion,,1 Cyclon• nltk Mltig•llon r,oj«t· i'hAf• II D•nk Rocondllolion St•lemcnt u on March Jl. 2018 (Rs. ln,Lac,) 1'.utlcul.us ~, 'AmoUJII •• A.-td OtbWll•l.in«e.,. - oroltcl'book Cboque Issued/ dntwn but not ver lln!$1:Rltd for i>•viiionl ... - :U:798.95 •r ·- lnte'dt Allowod by S.,nk but not recorded in Co.,!, Book . . Cheque J>oirl Into 1\1,nk but omlttod to be ,rohlp No.:053?59 rl.,c.: Candhin.•&•• I \.N>.,{ k~ 0,,1<- M••"""'ll.-.:.. ..,.t.-•IM._.....,..,_,._~,.C-,-.. 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Ctcr._,..,,.., ..,.....,_ ,.,. ,.....,_... .... c,,-o1-, d l)s.o ol!lt'f llh\~ "-•&--'I ~ •- "'"' W",,-t.r,fei'*-"'.U,.,.UO,...._~ l,,,o).,..hffl ........... ~,., i:..,-." H1r~..,, ,1o..-v-,,. • h•,,.-_ .."'*" ,_.,,..u • .,..,•., *"""'•-"''• ».JH\ Loo ~ .....,. wt.tClfhNt -U)oo .....__. ~ .... r..-•• ,,,.. C.nt...,•,-....1t>f,f"•u.o.t..J~t~ , _ _.J_....._,,_.o..~-- ..... - .. ,..,....oofldt .... ~ ~ ""wt,0,6'r,....,....s..;.,.~ tifw._.."t~.,.~~tNMlNw ~.,.~ -~, I 1 o fC i,,.nJ,lon,· A uJlt,d Flnruicl•l llepon Culu•t St••• Dl•u1tr M•n•gcmenl Aulhorlty N•llon,1 Cyclon< llbk Mltlg,tlon rroJt No.!05J959 (CSDMA) 111h' (,J:mlh111.1,:Jr/\,.,:.,JI~ 0 ,,.,,. e.,l•Ol.·~~ !,,t.1.1:14.loM 1to-d;11(d ruuorul krpor, r.~Ju, 11 Su 1, Olu.M.n ~bNlf'Olfftt A.sltlocUy "•tk>,ul C)tlOll.t Rh\ ,\tul,.1tk,« f'ntit<1 •~II Qud11,:rt UIULu.rl011 11.qwrrt t,um 1M Arni :017to~l.at MJrc-.-:o-il lh,JJrt oluM'd llu1llfl t'Jrrit"J bu4p, 1.lll1u"' ldgriUdUn·d J.,1"~1hr ~11J.t1t1 ,..,,..wt"""tu.1 11v,.rtc:s Taul Bud,., n.tlbM,{)o-.() ti" te JtN"ro... qwr1cr d'"111glhc q1Ut1tr Toull•dp'1 UIOlud(M) ----1----- • 1 • 14..btU!i l<.:OUS .., • M , ,.,. 1°..-.1 .,,. IHHI 1,H Ill' t1\f'l't' ..UIC'tl"""I 1,.,,,,.. , ',,,..,, t,,u-·1 ..~ h11111ht1-l h, n 1•1t ~-·'""'u' u,u, ... 'tu.llPl.f ~ , ,..,,...,.h~ h11,,•.11o 1110.·1#\lo' C,•r•S"t,-11lt,u111.. , 11t1tbn1,,c,:n,1t"11 • 1,.- , ,., I, , .. 1 I, h ~•iiJII" li11to,. ,I ._11'-,,.11,ur1t, , l.h•ulu ,iuJU,t~ I A111*117 .... ,..._ , L tr.SOMA) 1 ~u,u1.-1Ga, .\•dunS nrul'ICU.I Rwpon :"o',1fu~IC)do- JtM.MM~1it.11 hoft<1 • f'huc-11 Rrpon tro«n 1•t Arril :Ol1 to JI,. ltt.uth 311,1 1 .. , .. Aln0•111 U.:,-.,.-.,1 ~-., ,\ ".11 ui, Nr,y t"otl'IU "' .. r---,..~ • ., ""·il..:§\m• n, ,,.,,lhi.-.,,;." I 4t.(.;.. h.U c....... ., , ... ,. ll - ,h,O(C, N,Hionnl C"ydonc Risk Mitign lion Project (NCRMl') im plemented by Guj.,rai Stale Disaster Monogemcnl A<1thority (GSDll'lA) Nll'JC,,NT ACCOUNTINC roucms J;,,i~ of Prcp.ualiun n,., 1111,11,cl,11 ~1.,1cmcnl s IN NClcprcciJtion ,s I"'' fin,,nc1al m,111,,i;1'mc11t manual, no depreciation shall be provided on fixed assets cq1111, d und,•s rlw pruJ1."ll<; 1 7. Plhcr 11cm, ',;•rnnh• ,tcrt"II"/ llluhiJ1z,1nun advance ts ,id justed al the time of payment of ru,nnlng .11, 11u111 hill, lu co11tr.ictor.;/consulta11t,;. Deduction is made as per the rate specified i.n the , ,n1rnc1. the same L< ad1us1cd at the time of final payment to contractors/ consultnnt. I ,-sti111\ dMrlJt'!• Mc adjusted n1 the lime of p11ym1mt of running account bill to contractors: Di.l11r1tm, i< mad,· t•n ad-hoc basis as P"' the rate specified in the contract, The same is ,111111>1,,-I when 1hc ll11al b,11,; permining to testing charges arc received. Any adjustment 1..:11.tm1: ,,lier rL'l'.c1p1 m final balls Is adjusted al the lime of flnnl payment to contractors. I ,·,l11ltH11, ou ,u·cu,mt of rnaterinl recovery is made at the time o( final payment to coiur.ic tor The >Jrrw L< adjusted .11 the time of final pay-mcnt to contractors. S, Budi;ct Estirn,,tcs 1111111;,•t htrm,,a,,, f,,. 1lw lnmnci,,1 v,·,,r .ire S<:l\t to Proje ct Manag~nwn1 Unit (PMU) for the \.'!\'1111n1; v'-•,11 hy :\ugu,t 31~1 nf c\•cry yi.•ar ~l,,1111111mt: 11f lund rr1ili,,1tion ,s done ,,s •i;uutSI approved budget on n quntarely basis to ,lw Inn-run Un ,111d1t~d finnnd,11 reports (IUFR). Based on the status of expenditure Incurred ,luru11; ilw rm,l 6 months budget ran be revised as- per the timellne mentioned in 4he f11Moc1,1l manual l'or & on bcl1Jlf 11( For l(uy Chtt,h ,C:. Associates Cujnr;it State Disaster Management Authority Ch.utcr.:d Accountants Fl!N: 120094E ~ C,\ Subrat» f(uy (1',irtncr) CEO Membership Nu.:<);;3959 (CSDMA) "'·""' c,11.11iin.,6.u I k..t~ IJJh:: l.· !!l.• ).ct I~ - Narional Cyclone Risk Mitigation Project (NCRMP) implemented by . Guj,uat State Disaster Management Authority (GSDMA) NOTF.S ON ACCOUNTS 1. Brief o( the Project The Government of India has initiated National Cyclone Risk Mitigation Project ("NCRMP"), herein after referred to as the "Project" or "NCRMP", with II view to address cyclone risks in the country. Notional Disaster Management Authority ("NOMA") under the aegis of Ministry of Home Affairs (MHA) shall implement the Project in coordination with participating Smtcs/t.rrs in the coastal areas. GSDMA is lhc implementing nodal authority for the State of Gujarat for U1e overall implementation of the Project, 2. Components of the Project 11,e Project has four components: Component A • E..,rly Warning Dissemination System ("EWDS"): Last Mile Connectivity -- for the dissemination of cyclone warnings and advisories from district/sub-dlstrtcr level to communities Component B • Cyclone Risk-Mitigation Infrastructure; Construction/ upgradation of physical infrastructure for cyclone risk mitigation. Component B has following 3 sub- componcnts: (i) Component Bl - Multi-Purpose Cyclone Shelters ("Ml'CS"): 100 MPCS are being constructed in 11 districts of Gujarat (ii) Component 82 - ACC(:$5 Roads: 43 access roads of 156.69 km length are being constructed/ upgraded in 8 districts of Gujarat (iU) Component 84 - Underground Cabling ("UGC"): Overhead cabling is being replaced with underground cabling (UGC) in the cities of Candhidham and Adipur in Kutch. The total cable length is nearly 430.74km. Component C - Technical Assistance for Cyclone Hazard Risk Mitigation, Capacity Building and Knowledge Creation: This component involves improving the understmding or natural disaster risks and vulnerabilities of the vulnerable community and strengthens the institutional capacity to address such risks and vulnerabilities Component D - Project Mnnogement and Implementation Support: This component provides for support for Project management and implementation. 3. 11,e project shall be implemented by the Government o( Indio through externa! assistance of World Bank. Therefore, the project Is complying with the World Bank guidelines and the regulatcry provisions of Government of India, as applicable to externally aided projects. Component A, C and D Is subjl..:t to 100% funding by Central government, while Component B shall be funded to the extent of 75% by the Central Government, with a matching state contribution by lhe state or Gujarat. The project has· not received any srant during the [inancial year 2017-18. 4. Component-wise Expenditure The proje ct has reported the following expenditures under different component, as 3gainst the approved allocation. ' --- c~,rricd Iorward Approved U tlti:r.n tion B11lancc· %of ,.urn~ ,11 the 1111'41111•nb Allocatio» from Allocarion of lludgct of Budget Budget FY 2016-17 /or 2017-18 up to as on Utilization 1.2018 31.0. 31.03.2018 -~',!ll;l('lnt!nl U 16,536.80 14.616.96 . 1919.114 88.39% - 60.89 . /60,89) -. ,_. l."11111001,cnt C Cornr,on<:nt 0 956.00 94.6,75 . 18.M , -_ • 99.03-% ~ The "~p;,nd1t11re incurred under eomponent C ls oo'sed on. the Sandlon = "cco,deil ' !>y Nl'IU ,.,.f .. 5.,nction Letter No. •17-01/2012-DM-DJ/7778(, dated 12.03.2018 for Rs.~67 I .,kl, I h,• prnJ"-1 hn., 11rninta111cFC Bank for the 3"' and 4"' qunrte£<- ,1111nuntin1: R,,, 1,83,1118/- was not recognized in tl\e books and IUFR. The ·same Is n..:111;1«;,,,·ll 111 the subsequent Financial Year I.I!. 2018-19. llif urcauun uf d\>sing bank balance reported in IUFR for thu 4"' quarter or 2017-18 Rs ln Lakh <.lusu11, ll,1lnnce of Bank Statement as orovlded in IUFR•or 41h Quarter & PfS 13,9.20:65 . Bnh\11re lylntriistrict- l-1•,1ds tor rhc l'hase I. Phase II RcporlS from October 2017 to March 2018 Is yet to be ,ubrn1ltcd ,md no.tli:, .,cd. 11 Short Term Deposits n,e J'WJc -.:t 1, transferring the idle fund to Short Term Deposits account for a short term period 11<1111 nnu- In llmt!. The deposits ore usunlly done with Gujarat State Financial '-,•rv"'"· Dunni; the linandal ye.u " short term deposit besring JCD Number -43)67 ,11nmmtm1; In ks 5.'l Crores wns pre-mnturcd prior to 40 days the date of maturity, 11),i; rnn,·1p.1l ·"'"'""' of Rs 58 Crorcs was received in the brink while the in\eres! component ",IS nt11 recoguizcd tn the bocks. As a result o( pro-mature withdrawal inhircs~ :ot k,.JS.l:l.1,99/ - Wdli foregone by the projecL I' Theu• ,11~ • ert.un persisnng un-reconclle item lying in the Project BRS as submitl~'to :\I'll .,lnni: 1\11h IUFR for more than one finnnci~I year, which were provided below: Rs in Lakh r.,vmcnt 11t.1di. 1 rorn other sources ~ndins~ adiustmcnt 1 0.2500 T',wmenL, 111.111.- from 0U1er sources Dl!ndin2 adiustments 16:9400 l11tcrc'CS~nl Exoeuses Chnrzed bv Bank 10.00!H' ;,, . I:!. fap.,111lit11r,· claimed for Rs25,148 (booked in the name of Station S.itcom -Private I muted) Iv, th.- 2"' quarter of nnnncinl )'l!llr ls yet to be transferred from Project Bank ,\\ i:~tunt h,r &; on behalf of for lloy Chosh fa Associetes Gujarnt Stole Dbastcr Management Authori~.· Chartered Accountants FRN: 320094E __ '- ~~ '\ ""' y CEO (GSDMA)