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M I Road, faipur- 302010
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Cont. no.: +91 (1,al) 23637 00
E-mail: aoaudit

I FA/PG MTD/Genl Corr 120 1t 8 Dt22t12t2017

=1

To,

Shri. D.S Shekhawat

DGM (Rural),
PGMTD, Jaipur,

Sub : Review of accounts of financi al year 2017 -18

We have entered in the last month of this calendar year and'l take this opportunity to wish you in
advance, the New Year's greeting. As we all are aware that Internal audit of this year is going to start
soon, therefore, I would like to seek your personal attention towards the essential activities which
would requires suitable time plan and strategies to complete the pending work in time and certainly
this would help in smooth closure of financial year 2017-18. We should ensure that there should be no
adverse remark/qualification from Branch auditors.

Cerlain important activities are also itemized here under on which our close altention/ monitoring
would help the PGMTD, Jaipur in achieving desired results.

This office has also reviewed the Trial Balance ot'PGMTD, Jaipur and observed that the progress of
the following activities requires your personal attention and suitable instructions to tlre concerned
executives of all departments to get completed the work relatecl tc following aspect.

1. Material lying pending with field units/in transit:- Inventorl'amounting Rs. 51,43,94,663.1O/-
is pending with field units/stores which needs to be issued to concerned work, in case the
items are alreadl, consumed.

2. CWIP: TB has shown the amount of Rs. 6,38,25,9361- lying in CWIP head, which is needed
to be reviewed and requires capitalizatian of the completed work immediately. The details of
CWIP balance as per WBS elements have been upload:ii in suvidha from time to time, it
would be peftinent to mention that so far there has been no progress in Capitalization during
{
this year.

3. Clearance of balances in GRIR: GP./IR head sliow,ing huge balance of R"s. 4,23,'74,0871-
Emplovee wise (PO created)i Vendor wise list is been uploaded in suvidha time to time. It is
requested to review the list and take necessary action to clear and minimize the balance
to
actual by making payment as per terms or by deletirrg duplicate pos. '
4. Physical verification of Inventory, CWIP and Assets: Guidelines has already been issued by
CA section of Circle office to keep the records of physical verification rvith simple fomrat
thereof. Flagging of obsolete, slcw moving, non moving inventory with NRV of such cases
and Provision in respect of decommissioned assets needs to 'De revierved with respect to NRV
\$'\ in each case.

I . (i,
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 BHARAT SANCHAR NIGAM LIMITED
(A Government of India Enterprises)
office of the GMIF)/IFA
# PGMTD,|aipur
PGMTD Campus
M I Road, Jaipur- 302010
BIiWL
ew***I"Ji* Cont. no.: +97 $a\ 2363700
E-mail: aoauditip@gmail.com

5. Reconciliation of TR revenue, Sundry Debtors, Deposits head: Timely issue of invoice

through system and immediate clearance of adverse balance lying in concerned heads.
Deposits needs to be verified as per actual and TR revenue should be booked in timely
manner in correct head.
6. Charging of overhead: charging of overhead on actual basis by making simple calculation of
salary expenditure for employees involved in that capital work and portion of other
administrative expenditure like vehicle running, transportation, store keeping charges etc to
all CWIP before transfer to Fixed Assets.
7. Reconciliation of Tax heads: Pre GST Tax heads like Entry tax. VAT, WCT needs to
reconcile with reference to tax due, Paid & balance payable & also ensure timely submission
ofreturn to various tax authorities.
8. Reconciliation of all other balances should be duly tallied with subsidiary details/list like loan
& advances, NOFN, NFS & other recoverable and payable etc.
9. Booking of Revenue of NMEICT & such other project.
t' 0. Reconciliation of NOFN heads duly reconciled with subsidiary details/list.
1 1. Reviewi write back of liabilities more than 3 years/ fictitious liabilities: time barred cheque,

EMD in GL code 1310122 more than 3 vears old must be transferred to coruect HOA and
action may be taken as per CA 355.
12. Review of booking under various provision head: the booking under provision head should be
reviewed and excess provision if any should be written back. Provision against
decommissioned asset/obsolete/unserviceable/non moving/slou,ing moving can be difference
between book value and Net realizable value and excess provision should be written back.

}] Charging of logistics charges for NOFN: Booking of Rs. 20lmeter of logistics charges by
-J.3.
' crediting employment expenditure and debiting claim recoverable from BBNL.
14. Maximum realization of TR outstanding up to March 2016 may be ensured, so that excess
provision if any found can be written back or minimum fresh provision for FY 2015-16 can
be made.
15. Immediate commissioning of pending circuits, POIs, Leasing towers: So that time bills as
applicable in case may be issued/ provision for the same can be made to increase the revenue.
16. Capex material lying in inventory: It is observed that the huge amount of Capex material is
being lying in the inventory such as Batteries, equipment, P/P, Tower material which might
have been issued to works and need to be capitalized immediately.
17. Capex Material issued to maintenance: It is observed that in some cases PP, Batteries, STM
equipments are issued against maintenance in SAP instead against WBS causing excess
booking in maintenance and affecting the financial position of PGMTD, JSipur. List of such
cases has been uploaded in suvidha, which requires correction; it may also be ensured that in
future the booking is done correctly"
18. Material in Transit: Material of Rs. 6,43,14,9461- in transit in SAP which needs to be cleared
immediately.
19. Old liabilities in Electric vendors/Rent vendors: Electric vendor and Rent vendors outstarrding
list must be reviewed and old balances must be cleared/rectifieC immediatelv.
 BHARAT SANCHAR NIGAM TIMITED
1l Gorrrnment of lndia EnterPrises) Office of the GM[F)/lFA
PGMTD,JaiPur
-w PGMTD CamPus
/ M I Road, JaiPur- 302010
E$f{L Cont. no.: +91 (141) 2363700
&**cg*f lrri*
E-mail: aoauditiP@ gnlelEom

standing in domestic vendors must be

reviewed
20. old liabilities in Domestic vendors: amount the case
be either paid or written bpck as
on case to case basis and pending liabilities must
may be.
standing in domestic vendors must be
reviewed
21. Old liabilities in Employee Vendor: Amount
must be either paid or written back as the
case
on case to case basis and pending liabilities
may be.
in domestic vendors must be reviewed on
case
22. Pending URruE Documents: amount standing
paid or written back as the case may be'
to case basis and pending liabilities must be either
Adv process has been notified by HQ for
23. Temporary advance: As we all are aware new Temp
in GL must be cleared by 30'12'2017 '
new cases, all pending Temp advance balance appearing
later date due to blocking of FB 60' for
delay in clearance might create settlement issue at
holder' Employee wise list has been
which responsibility shall lie solely to Ty. Advance
clearance'
uploaded in suvidha for information and immediate
EPF of stipend cases' Perquisite tax
24. Taxation lssues : Progress in old TDS default cases,
Labour EPF cases etc which are
recoverable fo. g.ouf A employee for FY l3-l1,Casual
pending since long
25. GST issues: Progress in Cancellation of provisional registration' Pending C & F Form'
3010612017' sending Pending cenvat
confirmatory report of all goods entered in ERP upto
Vouchers to CO.
and also yet to be transfeffed in the name
26. Listof Property land details in the name of BSNL
must be kept ready with updated
of BSNL utong d,rty matched with SAp Asset number
records.Anydiscrepancymustbeclearedintimeinthisregard'
gratuity
27 . I.istof Legal cases with brief of case,
provision if any, Detail of Leave encashment'
vendors & outstanding thereof'
paid during the year, contingent liabilities Detaiis of MSME

handy; efforts may be made for improvement

All such relevant record must be kept updated and
year is going to start soon' efforts must be
wherever required. As the last quarter of this financial
made in a straight way to resolve the pending issues'
points may be invariably submitted on the
lt is also desired that a weekly progress report of all above
IFA & PGMTD, Jaipur'
aoauditjp@gmail.com on every Saturday for perusal of

This is issued with the approval of PGMTD, Jaipur'