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CGMT PATNA IA SEPT 2010

CGMT PATNA IA SEPT 2010

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  • 1.1 Whether Fixed Asset Register (FAR) is maintained in 21-
  • 1.2 Whether each asset reflected in the FAR is having all the
  • 1.3 Whether asset number is assigned to the individual asset
  • 1.5 Whether in case of acquisition of assets
  • 1.6 Whether value of all the assets
  • 1.7 Whether there is any fixed asset which is purchased / constructed
  • 1.8 Whether the assets valued up to Rs. 5000/- have been properly
  • 1.9 Whether the ATDs which are pending to be accepted at the
  • 1.10 Whether proper records are kept regarding fixed assets added
  • 1.11 Whether proper accounting entries have been passed and
  • 1.12 Whether the Circle / units have undertaken the process for
  • 1.13 Whether the assets which are found to be obsolete /
  • 1.14 Whether proper accounting entries have been passed to
  • 1.15 Whether entries have been made in the FAR in respect of
  • 1.16 Whether provision has been made in respect of assets
  • 1.17 Whether the details of all assets declared obsolete /
  • 1.18 Whether value of obsolete / unserviceable assets reflected in
  • 1.20 Whether proper accounting entries have been passed for in
  • 1.22 Whether in case of addition or deletion of assets proper records
  • 1.23 Whether the value of all the assets reflected in the FAR is
  • 1.24 Whether depreciation has been charged correctly in respect all
  • 1.26 Whether depreciation has also been charged in respect of
  • 1.27 Whether in respect of assets declared as obsolete /
  • 1.28 Whether depreciation has also been charged in respect of
  • 1.29 Whether full depreciation has been charged on assets valued
  • 1.30 Whether fixed asset have been physically verified as per order of
  • 1.31 Whether detailed record of physical verifications has been
  • 1.34 Whether the value of assets found on physical verification
  • 1.36 Whether intangible assets have been properly accounted and
  • 1.38 Whether initial lease value of leasehold land is properly
  • 1.39 Whether proper action has been taken by the Unit / circle
  • 1.40 Whether any leasehold land in possession whose lease period
  • 1.42 In case of loss of asset due to natural calamity whether the net
  • 1.43 In case of loss of asset due to
  • 1.44 Whether obsolete and unserviceable assets as
  • 1.45 In case of misclassification of fixed asset / components i.e
  • 2.1 Whether the competent authority
  • 2.3 Whether CWIP register / Works Register / Sub-ledger has been
  • 2.4 Whether details of each work under execution have been
  • 2.5 Whether CWIP register / Works Register / sub-ledger in respect
  • 2.6 Whether Measurement Book has been maintained for recording
  • 2.7 Whether the project executing authority have recorded the
  • 2.8 Whether based on entries made in the measurement book
  • 2.9 Whether ATDs for material / stores received from Store
  • 2.12 Whether necessary entries about utilization of stores by the
  • 2.13 Whether on completion of works the un-utilized / surplus materials
  • 2.14 Whether amount booked to accode for ³Material / equipment
  • 2.15 Whether material issued to contractor / turn-key project
  • 2.16 Whether overheads have been charged to capital works as per
  • 2.18 Whether necessary accounting entries have been passed and
  • 2.19 Whether expenditure of revenue nature has been charged to
  • 2.20 Whether liability has been created in the accounts for the
  • 2.21 In respect of project work completed during the financial
  • 2.22 Whether payment made to contractor for execution of
  • 2.23 Whether reconciliation of entries made in the CWIP Register /
  • 2.24 Whether Telecom Project Circles / Civil & Electrical wing /
  • 2.26 Whether there are instances of handing over all the
  • 2.27 Whether there are project works which have been completed
  • 2.28 Whether consignee circles / units have accepted the
  • 2.30 Whether project sanctioning and project executing authority have
  • 2.31 Whether Project Executing Authority has completed the
  • 2.32 Whether any project works has been abandoned during the
  • 2.33 Whether appropriate accounting entries have been passed and
  • 2.34 Whether entries have been made in the CWIP Register /
  • 2.35 Whether serviceable stores / equipments recovered from such
  • 2.36 Whether damaged / unserviceable stores /
  • 2.37 Whether necessary write off sanction for the actual loss
  • 2.38 Whether physical verification of CWIP has been carried out by
  • 2.41 Whether value of CWIP physically available has been
  • 2.42 Whether stores found surplus at worksite in respect of completed
  • 2.43 Whether surplus stores lying with contractor in respect of
  • 3.2 Whether all the stores / material received from Vendor / supplier
  • 3.3 Whether full liability for stores received in good condition from
  • 3.5 In case of stores / material received during the financial
  • 3.6 Whether valuation of inventory has been made taking into
  • 3.9 Whether particulars of stores issued during the financial year
  • 3.10 In respect of stores issued from the Store Depot / units of BSNL
  • 3.11 Whether entries in Bin Card about receipt and issue of stores
  • 3.12 Whether the value of the stores reflected in the Priced Store
  • 3.13 Whether proper stock register has been maintained for the
  • 3.14 Whether physical verification of inventory has been carried out at
  • 3.15 Whether proper documents of physical verification of stores
  • 3.16 Whether the quantity of stores found on physical verification
  • 3.17 Whether value of stores found on physical verification has been
  • 3.18 In case of stores found short during physical verification as
  • 3.19 In case of stores found short during physical verification
  • 3.20 Whether physical verification has been carried out as per order of
  • 3.22 In case of loss of inventory due to theft and other reason
  • 3.23 Whether inventory has been totally verified by the Stores
  • 3.24 Whether report of the Store scrapping committee and the
  • 3.26 Whether proper provision has been made for the difference
  • 3.27 Whether the stores declared as unserviceable / obsolete by the
  • 3.28 Whether the details of all inventory declared obsolete /
  • 3.29 Whether obsolete / unserviceable stores reflected in
  • 3.30 Whether obsolete & unserviceable stores lying under
  • 3.32 Whether stores lying unutilised with contractor at the close of
  • 3.33 Whether storage arrangement for keeping inventory is
  • 3.34 A status report regarding computerization of inventory
  • 3.35 Whether the quantity of inventory which have been
  • 3.36 Whether obsolete and unserviceable inventory as
  • 3.37 Whether proper accounting of tradable equipments has been
  • 4.1 Whether cashbook and bankbook are properly
  • 4.2 Whether cash collected during a day has been remitted to bank
  • 4.3 Whether amount collected on the last working day of the
  • 4.4 Whether bank has credited the cash remitted by the unit in
  • 4.5 Whether the unit has reconciled the amount transferred by the
  • 4.6 Whether cheques has been remitted to bank on the date of
  • 4.7 Whether cheques / DD received on the last day of the financial
  • 4.8 Whether all the cheques / DDs received on the closing day of
  • 4.9 Whether all the cases of cheques deposited but not
  • 4.10 Whether in respect of dishonored / stale cheques the
  • 4.11 Whether there are instances that cash / cheques / DDs have been
  • 4.12 Whether the banks have transferred the money from the
  • 4.13 Whether TT sent by the units to IFA collection account have
  • 4.14 Whether all the cases of TT sent by the Units to Circle IFA and by
  • 4.15 Whether all the accounting units having bank account have
  • 4.17 Whether the unit and SSA have taken appropriate action to settle
  • 4.18 Whether SSA / accounting unit have taken proper action to clear
  • 4.19 Whether the amount recoverable from bank which will be reflected
  • 4.20 Whether proper accounting entries have been passed in
  • 4.21 Whether there is any un- identified difference / un-
  • 4.22 Whether sweeping facility has been availed by the units in
  • 4.24 Whether charges debited by bank to operation / collection
  • 4.25 Whether higher officers have verified the cash and imprest
  • 4.26 Whether the units have maintained authorized cash and
  • 4.27 Whether bank contra & cash contra has been tallied and no
  • 4.28 Whether insurance policy has been taken in respect of cash in
  • 4.29 Carry out surprise check of cash at least twice once before 31st
  • 4.31 Whether revenue stamp has been affixed as per applicable
  • 4.32 Whether the accounting unit has obtained the confirmation of
  • 4.33 Whether booking made to inter bank transfer accode i.e
  • 4.34 Whether amount booked to inter- current bank transfer originating
  • 4.35 Internal Auditor should review the control procedure available
  • 4.37 Whether proper accounting has been made in respect of deposit
  • 5.1 Whether there is difference as on 1st
  • 5.3 Whether the debtors booked in the general ledger from 1st
  • 5.4 Whether ageing analysis of sundry debtor pending at the
  • 5.5 Whether appropriate action has been taken to collect the
  • 5.6 How much recovery of old outstanding has been made
  • 5.7 Out of the old outstanding cleared during the financial year
  • 5.8 Whether all the payment received against the billed
  • 6.1 Whether proper Register of loans
  • 6.2 Whether proper entries have been
  • 6.3 Whether recovery of principal
  • 6.4 Whether the details of balance of
  • 6.5 Whether the difference between
  • 6.6 Whether interest on loans and
  • 6.7 Whether loans and advances given
  • 7.1 Whether proper sub-ledger /
  • 7.2 Whether proper sub-ledger /
  • 7.3 Whether proper entries have been
  • 7.4 Whether recovery of amount of
  • 7.5 Whether the balance of security
  • 7.6 Whether the difference between
  • 8.1 Whether proper sub-ledger / Register has been maintained
  • 8.2 Whether refund of EMD & SD has promptly been obtained on
  • 8.3 Whether the details of EMD & SD as reflected in the EMD &
  • 8.5 Whether BSNL units have got the
  • 9.1 Each and every expenditure made from temporary advance
  • 9.2 The genuineness of at least 25% of vouchers of temporary
  • 9.3 Whether there are incidence of taking temporary advance
  • 9.4 Whether there are instances of granting temporary advance
  • 9.5 Whether there are instances of non-submission of bills against
  • 9.6 The Internal Auditor in the Audit
  • 10.1 Whether Control Registers / Sub-ledgers have been
  • 10.2 Whether proper entries have been made in the Register /
  • 10.3 Whether Register / Sub-ledger is maintained for amount
  • 10.4 Whether claim bills supported by detailed schedules for each type
  • 10.5 Whether payment received from DOT & DOP has been noted in
  • 10.6 Whether balances which are pending to be recovered from
  • 10.7 Whether details of amount recoverable from DOT on
  • 10.8 Whether claim bills supported by detailed schedules for recovery
  • 10.9 Whether claim bill for recovery of interest on loan & advances
  • 11.1 Whether there is any booking under the accode for ³Before
  • 11.2 Whether refund / adjustment of µBefore Connection Deposit¶ has
  • 11.3 Whether before connection deposit reflected in Register of
  • 11.4 Whether the total balance of µBefore Connection Deposits¶ as
  • 11.6 Whether refund / adjustment of µAfter Connection Deposit¶ has
  • 11.7 Whether the balance of µAfter Connection Deposit¶ as reflected
  • 11.8 Check whether proper details of all other deposits (other than
  • 11.10 Whether the balance of all such other deposits as reflected in
  • 11.11 Whether liability for interest on subscribers deposit wherever
  • 12.1 Whether details of EMD & SD taken by BSNL Units have been
  • 12.2 Whether EMD & SD are refunded promptly on fulfilment
  • 12.3 Whether refund / adjustment of EMD & SD has been routed
  • 12.4 Whether the total balance of EMD & SD as reflected in the
  • 12.5 Whether register has been maintained for bank guarantee
  • 12.6 Whether details of bank guarantee taken by BSNL units
  • 12.8 Whether the Units has got the bank guarantee renewed
  • 12.9 Whether the Unit has encashed the bank guarantee promptly as
  • 13.1 Whether Sub-ledger / Register for Creditors has been
  • 13.2 Whether all the payment to creditors has been routed
  • 13.3 Whether details of all the pending liabilities / provisions
  • 13.4 Whether liabilities / provisions found excess on review of the
  • 13.5 Whether the circle has taken action to obtain confirmation of
  • 14.1 Whether proper liability / provision has been
  • 14.2 Whether the detailed schedules for monthly pension contribution
  • 14.3 Whether detailed schedules for monthly recovery of principal
  • 14.4 Whether Register for liabilities towards pension & leave salary
  • 14.5 Whether amount of monthly pension & leave salary
  • 14.6 Whether quarterly GR & AGR have been calculated correctly
  • 14.8 Whether liability towards rent for space of DOP building occupied
  • 14.9 Whether the closing balance of various liabilities payable to DOT
  • 14.10 Whether principal amount of loans
  • 15.1 Whether Sub-ledger / Register of liabilities payable to employees
  • 15.2 Whether payment disbursed against such liabilities have been
  • 15.3 Whether details of liabilities payable to employees reflected
  • 15.4 Whether the monthly salary has been drawn for the staffs who
  • 15.5 Whether total of monthly gross salary drawn and booked to
  • 15.6 Whether various other claims of employees (other than the
  • 16.1 Whether in respect of post paid connections bills has been
  • 16.2 Whether telephone connections for which billing has been made
  • 16.4 Whether the Management has identified customers in respect of
  • 16.5 What corrective action has been taken by the Management to
  • 16.6 Whether the value of MCU (except the MCU for free calls)
  • 16.7 In case of post paid service whether proper reconciliation
  • 16.8 Whether the µCategory¶ assigned to each connections (particularly
  • 16.9 Whether OYT rebate has been properly monitored and whether
  • 16.10 Whether bills in respect of concessional telephone
  • 16.11 Whether in respect of all service telephone connection (RSTC)
  • 16.12 Whether in respect of disconnected telephone
  • 16.13 Whether appropriate portion (applicable to the current month /
  • 16.14 Whether revenue received in the current month / current financial
  • 16.15 Whether all provisional bills issued in case of dispute and the
  • 16.16 In case of cancellation of bills whether the cancellation has
  • 16.17 Whether there are instances of delay in disconnection due to
  • 16.18 Whether in case of closed connection accounts have been
  • 16.20 Whether charges for all working circuits (leased & VPN circuits)
  • 16.22 Whether USO subsidy for DSPT service (one time at the time of
  • 16.23 Whether the claim for reimbursement of expense i.e
  • 16.24 Whether fixed charges towards diesel generator set(s) and other
  • 16.25 Whether the details of the claims for reimbursement of expense
  • 16.26 Whether CMTS vertical have accounted the expense on
  • 16.27 Whether claims for USO subsidy for USO Infrastructure (tower)
  • 16.28 Whether claims USO subsidy in respect of Rural wire-line
  • 16.29 Whether outstanding claims for USO subsidy in respect USO
  • 16.30 Whether IUC recoverable from other service providers has been
  • 16.33 Whether revenue share for inward traffic received from
  • 16.34 Whether revenue to be recovered from other ILD
  • 16.35 Whether international roaming revenue recoverable from
  • 16.37 Whether revenue generated from various value added
  • 16.38 Whether accounting of revenue from the subscribers registered
  • 16.39 Whether accounting of tradable items (stand alone sale or sale
  • 16.40 Whether income for services provided to MTNL (other than
  • 16.41 Whether net revenue has been booked wherever agreement
  • 16.44 Whether charges for services provided by BSNL to DOP and
  • 16.45 Whether charges for various infrastructure (such as space in
  • 16.46 Whether charges for training services provided by Training
  • 16.47 Whether all other sorts of income which are categorized /
  • 16.48 Whether revenue meant for a financial year has been
  • 16.49 Whether revenue has been booked to correct head of
  • 16.50 Whether the revenue generation and recognition throughout the
  • 16.52 Whether credit limit given to subscribers has been
  • 16.53 Whether continuous monitoring has been done in case of
  • 16.55 Whether Tatkal deposit (after connection) has been
  • 17.1 Whether Register for all types of pre-paid items such as SIM
  • 17.2 Whether proper entries of all types of pre-paid items have
  • 17.3 Whether closing stock of SIM and various other prepaid items
  • 17.4 Whether total value of prepaid items actually sold to
  • 17.5 Whether proper accounting of CELLONE vouchers sold in bulk
  • 17.6 Whether correct accounting of
  • 17.9 Whether prepaid items given as free or gift has the sanction of
  • 18.2 Whether expense in respect of all types of employees benefits
  • 18.3 Whether expense in respect of
  • 18.4 Whether expense in respect of IUC related to the financial year
  • 18.5 Whether expense towards IUC payable to MTNL related to the
  • 18.6 Whether expense towards outward traffic originated from
  • 18.7 Whether expense related to the financial year in question in
  • 18.8 Whether expense in respect of outgoing ILD traffic originated
  • 18.9 Whether expense on all types of bandwidth and related service
  • 18.10 Whether expense on transponder taken by BSNL from
  • 18.11 Whether expense towards lease charges for various types of
  • 18.12 Whether expense pertaining to the financial year in question on
  • 18.13 Whether expense for infrastructure / USO
  • 18.14 Whether expense on negative subsidy payable to USO
  • 18.16 Whether expense for the works performed by the contractor
  • 18.17 Whether expense on rent for the accommodation owned by
  • 18.18 Whether expense on electricity and diesel consumed during the
  • 18.19 Whether the utilization of diesel in exchanges is reasonable with
  • 18.23 Whether expense towards amount payable to Ministry of
  • 18.25 Whether there is no lapse in creating the liability for services
  • 18.26 Whether all sorts of expenses have been incurred on the basis
  • 18.27 Whether expenditure has been incurred against the budget
  • 18.28 Whether procurement of services and material has been
  • 18.29 From propriety angle checking of the following types expenditure /
  • 18.30 Whether in respect of traffic taken place during the financial
  • 19.1 Check the procurement of equipments for CMTS through
  • 19.2 Check the procurement of maintenance services for CMTS
  • 19.3 Whether pay and allowances of staff & officer who are actually
  • 19.5 Whether IUC recoverable and payable from / to other telecom
  • 19.6 Whether Inter-segment expense & income in respect of traffic
  • 19.7 Check the reconciliation of prepaid items as mentioned Sl
  • 19.9 Check the revenue sharing arrangement with other content
  • 19.11 Check the complete revenue assurance activity for prepaid
  • 19.13 Any other job related to CMTS as deemed fit by the Circle
  • 19.14 Whether claims for BSNL Towers which have been shared
  • 19.15 Whether claims for USO Subsidy for provision of mobile service
  • 20.1 Check whether ATD and ATC has been raised immediately
  • 20.2 Check whether all types of ATD and ATC has been accepted by
  • 20.3 Whether there has been any delay in raising as well as
  • 20.4 Whether in case of transfer of staff ATD/ATC for the
  • 20.5 Whether complete review of all the ATD / ATC which remain to
  • 21.1 Whether payment of Service Tax & other Excise Duty has been
  • 21.2 Whether units have remitted the service tax collected on account
  • 21.3 Whether TDS has correctly been deducted on items covered by
  • 21.4 Whether in cases of other items (not covered by Section 40(i)(a))
  • 21.5 Whether each individual payment amounting to more
  • 21.7 Whether TDS certificate in respect of TDS deducted by
  • 21.8 Whether Service Tax Return / input service distribution return /
  • 21.9 Whether ST-3A return has been filed within due date in cases
  • 21.11 Whether the amount of TDS deducted by the other parties
  • 21.12 Whether information regarding wealth tax has been sent to
  • 21.14 Whether reconciliation of booking under accodes for
  • 21.16 Whether Telecom Factories have correctly accounted the
  • 21.17 Whether the Units have complied with the provisions of
  • 21.18 The Internal Auditors will also assist the units in maintenance
  • 22.3 Whether opening balance intimated by Corporate Office /
  • 22.4 Whether reconciliation of the monthly booking in trial balance
  • 22.5 Whether detailed records / vouchers in support of the
  • 22.6 Whether in respect of any fixed asset reflected in a fixed asset
  • 22.7 Whether in respect of provision for obsolete & unserviceable
  • 22.8 To certify that the trial balance is supported by the correct
  • 22.9 Whether circles have compiled all the information for disclosures as
  • 23.1 The internal auditor must go through all the observations and
  • 23.2 Whether SSAs / Accounting Units of circles / Circle
  • 23.3 Whether SSAs / Accounting Units of circles / Circle
  • 23.4 Whether decision taken by the Audit Qualification Reduction
  • 23.5 Whether action has been by the Circles to set right the
  • 24. Additional Duties of Lead
  • 25. Audit Report & Management

ANNEXURE TO CIRCULAR NO.CA±241 (Letter No.

700-55/2010-11/CA-III Dated 16 -11-2010 PROFORMA µC¶ SCOPE OF WORK FOR INTERNAL AUDITORS OF BSNL It has been observed that the Internal auditors of BSNL are simply pointing out the errors and mistake without rendering any assistance to the Units of BSNL for rectification of mistakes / which is totally against the idea of engagement of the internal auditor, by BSNL Management. The Internal Auditors are supposed to take pro-active steps for rectification of defects as well as assisting the unit / circles authorities to bring about improvement in the quality of accounts. Moreover, the scope of work fixed by BSNL Management are not followed by the Internal Auditor as well as comments are made by the Internal Auditors which is against the Accounting Policy of BSNL. The main purpose of engagement of the CA firms as internal auditor by BSNL Management is not only to identify the areas of weakness but also to get the defects rectified on the spot by active participation of both the Internal auditors as well as BSNL units so that BSNL accounts depicts true and fair picture. The Scopes of work mentioned below are the guidelines for internal audit. The Internal Auditors appointed by BSNL Management shall check all the points mentioned below in addition to other items covered by generally accepted accounting procedure but subject to BSNL accounting policy, and also ensure that necessary entries are passed in the accounts (General Ledger) as well as in the sub-ledger / register / statement in order to set right defects / shortcomings detected during internal audit. Audit Report shall reflect not only the comments on all the points mentioned below but also the details of action taken by the internal auditor to set right the things. It is further mentioned that Internal Auditor must not function as External Auditor i.e. Branch & Statutory Auditor. The performance of internal auditor will be judged by the Management mainly based on pro-active action taken by the auditor to rectify any error, defects, omission etc so that all the financial transactions are correctly reflected in the accounts within the scope of accounting procedure as well as accounting policy. Sl No Scope of Work Findings, observations / comments Pro-active steps action taken by of Internal Auditor and details of the Internal Auditors to set right discrepancies if any the discrepancy / shortfall i.e. accounting entries passed / subledger & Register updated / concerned official of BSNL trained.

1 1.1

FIXED ASSETS
Whether Fixed Asset Register (FAR) is maintained in 21column format prescribed by the Corporate Office. Whether each asset reflected in the FAR is having all the information such as situation of assets, quantitative details etc. Whether asset number is assigned to the individual asset and equipment. Whether the particulars of all assets acquired from vendors or constructed in house, which are put to use / commissioned / have started generating revenue during the financial year in question, are reflected in the FAR.
Whether in case of acquisition of assets from vendors, proper rules have been followed.

It is maintained and updated till F.Y 2009-10, but not updated for current Financial year. Fixed Assets register is not updated for current Financial year, so we are not able to comment on the same. No, it is not in practice at the unit. Fixed Assets register is not updated for current Financial year, so we are not able to comment on the same.

1.2

1.3

1.4

1.5

Yes, it has followed the proper rules.

1.6

Whether value of all the assets commissioned / put to use / started generating revenue during the financial year in question (the details of which have been entered in the FAR) has been booked to concerned accodes for fixed assets by passing necessary accounting entries, and whether such accounting entries has been included in the Trial Balance. Whether there is any fixed asset which is purchased / constructed during the financial year in question or in any previous financial years but not yet capitalized / not put to use and accounted in Fixed Asset Accounts of trial balance and reflected in FAR. Whether the assets valued up to Rs. 5000/- have been properly entered in the FAR. Whether the ATDs which are pending to be accepted at the beginning of the financial year in question, and the ATD received during the current financial year for the assets transferred by the Project Circle / Installation Wing of same circle / other circles, have been accepted and accounted for in the Trial Balance, and whether the details of such assets have been entered in FAR. Whether proper records are kept regarding fixed assets added during the year in the category of less than 180 days, 180 days & above which is required for calculation of depreciation as per Income Tax Act. Whether proper accounting entries have been passed and included in the Trial Balance, and ATDs have been raised during the financial year in question, in respect of assets transferred from one accounting unit to another accounting unit of either same circle or different circle during the financial year in question. And whether such ATDs have been accepted by the consignee unit/circle.

Yes, all the assets have been booked to concerned accodes for fixed assets and included in the trial balance.

1.7

Yes, all the assets capitalised and accounted in Fixed assets Accounts of Trial Balance.

1.8

1.9

Fixed Assets register is not updated for current Financial year, so we are not able to comment on the same. ATDs received during the current Financial Year for the assets transferred have not been accepted by the unit.

1.10

It will be made on year end.

1.11

The unit has not transferred any assets.

1.12

1.13

Whether the Circle / units have undertaken the process for identification of the assets found to be obsolete / unserviceable as per rule Whether the assets which are found to be obsolete / unserviceable and identified as such during the financial year in question, have been decommissioned and declared as obsolete / unserviceable in the same financial year by the competent authority as per rule. Whether proper accounting entries have been passed to transfer the net depreciated value of assets declared as obsolete & unserviceable, to decommissioned asset accodes by passing necessary accounting entry and including the same in the trial balance. Whether entries have been made in the FAR in respect of asset declared as obsolete / unserviceable. Whether provision has been made in respect of assets declared as obsolete / unserviceable during the financial year in question, for the difference between NRV & net depreciated value of such assets provided the NRV is less than the net depreciated value. Whether the details of all assets declared obsolete / unserviceable i.e. description of assets, quantity, date of withdrawal of assets from use, net depreciated value, NRV, amount of provision made, physical location of such assets, sanction particulars regarding declaration of such assets as obsolete/unserviceable by competent authority, particulars about disposal such obsolete / unserviceable assets etc. are correctly kept in the Obsolete / Unserviceable Asset Register.

No such process undertaken by Unit during the FY for identification of obsolete / unserviceable assets. No such fixed assets declared obsolete/unserviceable by the Unit during the FY.

1.14

Not applicable.

1.15

Not applicable.

1.16

Not applicable.

1.17

Not applicable.

e. Whether proper accounting entries have been passed for in respect of obsolete / unserviceable assets disposed off during the financial year in question i. Whether the value of all the assets reflected in the FAR is reconciled with the value reflected in the trial balance and whether the difference found during the financial year has been settled in the same financial year . but not removed from Fixed Asset Accounts (TB) and FAR.1.22 The FAR is not updated for current Financial year.21 No such case noticed during the period of audit.20 Not applicable.e. 1. 1. Whether in case of addition or deletion of assets proper records are kept for the purpose of preparation of Fixed Asset Schedule (Proforma II Statement).24 It will be charged at year end . 1.25 It will be charged at year end . Not applicable. Whether there are any assets. and depreciation is continued to be charged on such assets .18 1. so we are not able to comment. put to use / commissioned during the financial year in question whether depreciation has been Not applicable. . 1. 1. 1. Whether depreciation has been charged correctly in respect all assets reflected in the FAR. Whether obsolete & unserviceable assets lying under decommissioned asset head are disposed off promptly under proper sanction of the competent authority.19 Whether value of obsolete / unserviceable assets reflected in the accounts (under decommissioned asset accode) are reconciled with the entries made in Obsolete / Unserviceable Assets Register and the difference if any between the two sets of records is settled. In case of assets i.23 The FAR is not updated for current Financial year. provision made if any at the time of declaring such assets as obsolete/unserviceable have been utilized / written back and proper accounting entries have been passed to account for sale value. which have been retired from service forever. so we are not able to comment.

valued up to Rs 5000/. Whether the value of assets found on physical verification have been reconciled with the value of the asset reflected in the FAR as well as in the trial balance and whether difference in value if any has been set right by passing necessary accounting entries. 1.26 1.in the 1st year of installation/commissioning as per instructions issued by corporate office.35 There is no any replacement of . 1. up to last date of functioning of such asset.34 Not applicable.28 Whether depreciation has also been charged in respect of assets which have been decommissioned / dismantled temporarily for utilization of the same in some other location or for some other purpose Whether in respect of assets declared as obsolete / unserviceable during the year. Whether there is any difference between the assets. 1. Not applicable. Whether detailed record of physical verifications has been prepared in the format prescribed by Corporate Office.31 1. 1.commissioned / installed.30 Fixed assets have not been physically verified. which are physically available as per physical verification. which are found on physical verification. and if so whether the difference has been reconciled and rectification entries have been made in FAR. Whether depreciation has also been charged in respect of stand-by assets. 5000/. No any detailed record of Physical verification has been made. There is no stand by assets. Whether full depreciation has been charged on assets valued up to Rs.32 1. Physical verification has not been carried out. are reflected in the FAR. Whether replacement of assets has been accounted as per Not applicable.27 1.e.33 Not applicable. depreciation has been charged in the accounts correctly i.charged from the date commission / put to use. and as reflected in FAR. Whether all the assets. 1.29 There is no asset. Whether fixed asset have been physically verified as per order of Corporate Office. of 1.

1. has been utilized and adjusted in the accounts.43 In case of loss of asset due to theft and other reason whether action has been taken by the authority for recovery of asset. fire etc whether proper accounting entry has been passed to relieve the Fixed Asset Account (General Ledger) & FAR and whether provision for the net depreciated value of assets lost has been made In case of loss of asset due to natural calamity whether the net depreciated value of such assets has been written off by the competent authority and provision made earlier if any. Whether any leasehold land in possession whose lease period has been expired. In case of There is no such case. but not yet renewed.42 There is no such case. 1. The unit has no intangible assets. . 1. 1.38 The unit has no land either freehold or leasehold. Whether provision has been made for the net depreciated value of such asset.39 Not applicable.36 Whether intangible assets have been properly accounted and amortized as per order of the Corporate Office. 1. Whether proper action has been taken by the Unit / circle authorities to renew the lease period of the leasehold land whose lease period has already expired / to be expired very soon. assets.40 Not applicable. 1. 1. Whether initial lease value of leasehold land is properly amortized over the lease period on straight-line method. The unit has no land either freehold or leasehold. 1.41 There are no any such cases.instructions issued by Corporate Office. In case of theft of assets / loss of asset due to natural calamity.37 Whether all the lands in possession of the units / circles have been analysed and completely bifurcated as freehold and leasehold.

CWIP. In case of misclassification of fixed asset / components i. Accumulated Depreciation. whether rectification of misclassification has been done properly as well as depreciation charged earlier has been adjusted correctly.e. 1. Sundry Debtors.2 Whether any cost overrun in respect of each work completed / under execution has occurred and whether such cost overrun has been sanctioned by the competent authority. Not applicable. Not applicable 2.3 It is maintained and updated till F. 2. 1. 1. but not updated for current Financial year.Y 2009-10.non-recovery of such asset or partial recovery of such assets whether competent authority has written off the net depreciated value of such assets and provision made earlier has been utilized / written back.45 There is no such case. relating to MSC based CDMA service which were earlier reflected in Basic Segment has been transferred to CMTS Segment by passing proper accounting entries. Whether the amount of assets. . Whether CWIP register / Works Register / Sub-ledger has been maintained by the units for each of the works under execution.46 There is no such case.1 Not applicable 2. Sundry Creditors etc.44 Whether obsolete and unserviceable assets as reflected in Register of Obsolete / Unserviceable assets have been verified physically and difference if any has been reconciled and settled. Capital Work In Progress (including Civil & Electrical works of capital nature) Whether the competent authority has sanctioned the project and detailed estimate for the works under execution. 2. fixed asset / component has been booked to wrong accodes.

hence.6 No 2.2.9 Not applicable 2. hence. . payment is made for such services to the contractor. Whether based on entries made in the measurement book expenditure / payment has been approved and paid to the contractor. unable to comment.7 CWIP register is not up to date.8 Not applicable 2.4 Whether details of each work under execution have been reflected in the CWIP Register / Works Register / sub-ledger.e. 2. Whether Measurement book has been updated in respect of payment made to the contractor Whether ATDs for material / stores received from Store Depots of BSNL / other units of BSNL for execution of works.5 Whether CWIP register / Works Register / sub-ledger in respect of each work has been updated with the transactions occurred during the financial year in question i. in the Measurement Book. 2. have promptly been accepted and booked to concerned accode of CWIP account. Whether necessary entries have been made in CWIP Register / Works Register / sub-ledger in respect of such stores immediately. unable to comment. CWIP register is not up to date. Whether the stores / equipments CWIP register is not up to date. hence. 2.10 CWIP register is not up to date. unable to comment. services availed from contractor for execution of work. material is purchased and utilized in works Whether Measurement Book has been maintained for recording the details of works executed by the contractor Whether the project executing authority have recorded the details of work executed by the contractor and services provided by the contractor during the year.

. Whether overheads have been charged to capital works as per policy of BSNL i. hence. hence. Whether material issued to contractor / turn-key project executing vendor but remained un-utilized at the close of the financial year. 2. 2. have been booked to CWIP accode by giving credit to accode for ³Material / stores with contractor´. 2. unable to comment. Whether amount booked to accode for ³Material / equipment with contractor´ have been reviewed from to time and proper adjustment has been made about utilization of the material / equipment in the project and / or return of unutilized items to Store Depot. unable to comment. 2. on actual CWIP register is not up to date.11 Whether material / equipment actually utilized by the contractor / turnkey project executing vendor in the works. have been physically verified and tallied with value of the material reflected under accode for ³Material / equipment with contractor´. unable to comment.15 CWIP register is not up to date.issued to the Contractor / turnkey project executing vendor for execution of works / turnkey projects have been accounted to accode for ³Material / stores with contractor´. unable to comment. unable to comment. hence.13 CWIP register is not up to date. hence. Whether on completion of works the un-utilized / surplus materials have been taken back to store Depot and accounted to inventory head by giving credit to ³Material / equipment with contractor´. Whether necessary entries about utilization of stores by the contractor / turnkey project executing vendor have been made in CWIP Register / Works Register / sub-ledger. 2.e. hence. unable to comment.16 CWIP register is not up to date.12 CWIP register is not up to date. hence. hence. 2. unable to comment.14 CWIP register is not up to date.

hence.e.2. hence. µAdministrative Expenditure¶ & µDepreciation¶ Schedules by giving debit to CWIP accode of concerned project work / estimate and credit to accodes for µDeduct Expenditure¶ available in concerned µRemuneration¶. has been charged as overhead to capital account / estimate of the said work. unable to comment.18 CWIP register is not up to date. 2. Whether expenditure of revenue nature has been charged to Project works / CWIP and if so whether rectification entries have been passed in the trial balance to withdraw such revenue expenditure from CWIP as well as necessary rectification entry has been made in the CWIP Register / Works Register / Subledger Whether liability has been created in the accounts for the value of services provided by the contractor for execution of works during the financial year in questions particularly for the services provided by the contractor at the fag end of the financial year for which either bill has not been received or no payment has been made within the close of the financial year. Whether depreciation of testing instruments. have been charged as overhead to the project account / estimate of the said work. and whether administrative expenditure. which have been utilized for execution of a project work. which are directly attributable and identifiable to a particular capital work. 2.19 CWIP register is not up to date. Whether necessary accounting entries have been passed and included in the trial balance for transferring the overhead from µRemuneration¶. µAdministration¶ & µDepreciation¶ schedules. hence. unable to comment.20 CWIP register is not up to date. . CWIP register is not up to date. hence. unable to comment. motor vehicle etc. 2. unable to comment. whether salary of staff who have actually been engaged in execution of concerned project work has been charged as overhead to the project estimate / account of the said work.17 basis i.

hence. and other liabilities if any) have been taken into account for transferring the total cost of the said completed project work to the consignee circle / consignee unit of same circle and for capitalization of the said completed projects by the concerned custodian / owner of the assets. 2.22 CWIP register is not up to date. 2.e. unable to comment.23 CWIP register is not up to date. Whether reconciliation of entries made in the CWIP Register / Works Register / sub-ledger in respect of expenditure incurred on capital work has been carried out with the entries made in the CWIP Account of General ledger and whether the difference found if any between two sets of figures has been settled by passing necessary entries either in the accounts or in the CWIP Register / Works Register / subledger during the same financial year Whether Telecom Project Circles / Civil & Electrical wing / installation wing of territorial telecom circles have transferred the capital cost of all the works completed during the financial year in question to the consignee i. hence. through ATD along with all related documents immediately after the work has been completed / commissioned. .24 CWIP register is not up to date. hence.25 CWIP register is not up to date. cost of services of contractor utilized. hence. unable to comment. 2. is reflected.21 In respect of project work completed during the financial year in question whether all the liabilities for executing the said works (cost of stores utilized. unable to comment. salary of staff engaged in execution of work & administrative overhead directly attributable to concerned work. Whether payment made to contractor for execution of project has been debited to accode for µliability¶ / µprovision¶ where the amount of liability which was created earlier for the said work either on actual basis or on estimated basis. overhead i. Whether Telecom Project Circle CWIP register is not up to date.e. unable to comment. Maintenance circles / other Circles / units of same circle.2. 2.

but could not be capitalized due to non-issue of completion report / management certificate regarding completion by the Project executing authority. unable to comment.27 2. hence. as well as put to use / started generating revenue./ Civil & Electrical Wings / Installation wing of territorial telecom circles have taken proper steps to get all the ATDs (raised by it) accepted by the consignee circles i. Maintenance Circles / Other circles / units of same circle within the financial year in question in which the ATDs have been raised. or completed project works have not been handed over to the concerned circles / units.e. CWIP register is not up to date. unable to comment. In such cases what action taken by the Internal Auditor.26 Whether there are instances of handing over all the completed works and raising of huge number of ATDs only at the close of the financial year by Project Circles and other installation wing including Civil & Electrical wings. capitalized the same in the same financial year. Whether consignee circles / units have accepted the completed works received from Telecom Project Circles / Installation wing of Territorial Telecom Circles / Civil & Electrical Wing during the financial year in question. and value of such completed works has not been transferred to consignee circles / units by Telecom Project Circles / installation wing / Civil & Electrical Wings through ATD.28 Whether there are project works which have been completed during the financial year in question by the Telecom Project Circles / Installation wing of Territorial Telecom Circles / Civil & Electrical Wings. 2. entered the No Works has not been completed during the year. 2. . hence.

29 particulars of such assets in FAR.31 CWIP register is not up to date. other relevant details. hence. . whether age-wise analysis of all pending project works has been done by the project sanctioning and project executing authority. unable to comment. whether the project sanctioning and project executing authority have reviewed the pending project works from the angle of cost overrun and time overrun and whether appropriate action has been taken by the project sanctioning and project executing authority Management to complete each project within the time frame fixed for completion and within the sanctioned cost.2. Whether consignee circles have received the completed works but could not accept. unable to comment. Whether Project Executing Authority has completed the CWIP during the financial year in question for which provision was made in previous financial year(s) based on the Branch and Statutory Auditor¶s observations (being an old project) and whether the provision created in previous financial year(s) for such old projects has been written back due to completion of such project works in the current financial year. Works has not been completed during the year 2. whether project sanctioning & project executing authority have taken appropriate steps for completion of old project work particularly the projects which are pending for more than one year. hence. and accounted the cost of the asset in asset accode of general ledger on acceptance of the ATD in the same financial year. capitalize and account for the cost of completed projects due to nonreceipt of completion report / management certificate.30 CWIP register is not up to date. Whether project sanctioning and project executing authority have reviewed all the pending CWIP particularly the old outstanding projects. or due to receipt of partial information / data etc from the Project Executing authority. 2.

hence. Whether appropriate accounting entries have been passed and incorporated in the CWIP account of General Ledger and provision has been made for the estimated loss in respect of project work. hence. 2. hence. Whether necessary write off sanction for the actual loss (worked out after taking into account the amount to be realized on disposal of equipments / stores. Whether serviceable stores / equipments recovered from such abandoned projects have been transferred to Store Depots / other works and necessary accounting entries have been passed Whether damaged / unserviceable stores / equipments recovered from abandoned projects have been disposed off and necessary accounting entries have been passed for the sale value etc. hence. 2.38 Physical verification has not been carried out during the year. Not applicable.39 .2. unable to comment. which has been abandoned under the sanction of the competent authority.33 CWIP register is not up to date.34 CWIP register is not up to date. 2. In case provision exists for such abandoned CWIP whether it has been utilized and excess provision has been written back. Whether details of physical verification of CWIP are CWIP register is not up to date. 2. unable to comment 2.35 CWIP register is not up to date. hence. Whether entries have been made in the CWIP Register / sub-ledger in respect of projects abandoned during the financial year in question.32 Whether any project works has been abandoned during the financial year in question by the competent authority. unable to comment. unable to comment. value of serviceable items / stores returned to the Store Deport / other works) has been issued by the competent authority in respect of project works abandoned by the competent authority. 2.37 CWIP register is not up to date.36 Not applicable 2. Whether physical verification of CWIP has been carried out by the authorities of Circle / unit as per instructions of the Corporate Office. unable to comment.

.recorded in the format prescribed by Corporate Office 2. 2.42 Not applicable. Whether stores found surplus at worksite in respect of completed works have been sent back to stores depots or transferred to other works (where required) and necessary accounting entries have been made by the debiting the Inventory Account (in case stores sent to store depot) / debiting the works account (in case stores transferred to other work) by giving credit to CWIP accode for concerned Project work. 2.43 Not applicable.40 Whether reconciliation of CWIP found on physical verification. Not applicable.44 Not applicable. 2. 2. Whether diversion of inventory / equipment from one project work Not applicable. has been made with the particulars of concerned CWIP as available in the CWIP Register / Works Register / subledger and the difference if any has been settled by passing necessary entries in the CWIP Register / Works Register / Subledger.41 Whether value of CWIP physically available has been reconciled with the value reflected in CWIP account of General ledger and difference if any has been settled by passing necessary accounting entries. Whether surplus stores lying with contractor in respect of completed works have been taken back from the contractor and transferred to stores depots or to other works (where required) and necessary accounting entries have been made by the debiting the Inventory Account (in case stores sent to store depot) / debiting the works account (in case stores transferred to other work) by giving credit to accode for µmaterial issued to contractor where value was earlier booked at the time issue of such stores to contractor.

whether necessary entry for the value of such stores has been made in the Priced Store Ledger immediately on acceptance of the material by the consignee in case the accounting unit of the consignee is the paying authority of the stores received.But. It is not practice to maintain Bin cards and Price Store Ledger in the store.2 3. Circle Telecom Store Depots and Store Dumps have maintained the bin cards and Priced Store Ledger.4 No Such Case.1 to another project work has been properly accounted. 3. 3.3.3 Whether all the stores / material received from Vendor / supplier during the financial year in question or in any of the previous financial years. have been recorded in the Bin Card. Priced Store Ledger (quantity and other details) immediately on their receipt and acceptance by the consignee. Yes. In case the paying authority for the stores received. And whether payment made to vendor / supplier subsequently against such stores has been debited to accode where the amount of liability / provision has been credited at the time creating the liability (on actual basis) / provision (on estimation basis). quantitywise Stock Register is maintained. 3. has been created. whether accounting entries for such liability has been passed and included in the Inventory Account of General Ledger. Whether full liability for stores received in good condition from supplier/vendor as per terms and conditions of purchase order during the financial year in question. . (Stores / material received must not be directly charged to CWIP but to be routed through Inventory Account). Necessary entry is made. is a different accounting unit whether the value of the stores has been The same is recorded in Stock register immediately on their receipt. Inventory Whether Wholesale Depot.

Whether the amount of inward freight. Whether value of such stores has been accounted in the inventory account of general ledger immediately on receipt of ATD or from the information of ATDs uploaded by the accounting unit of consignor (BSNL unit) in IBTMS Package and whether necessary entry about value of such stores has been made in priced stores ledger immediately.accounted in the Inventory account of general ledger immediately on receipt of ATD or from the information / data of ATDs uploaded by the paying authority in IBTMS Package and whether necessary entry about value of such stores has been posted in the Priced Stores Ledger immediately. Whether valuation of inventory has been made taking into account all cost including cost of stores paid to the supplier / vendor. Not applicable 3. . transportation cost ± primary distribution cost and excluding the CENVAT portion for excise duty & CVD. taxes and duties (not eligible for CENVAT). Whether weighted average rate of each item of store has been No Such Case. 3. Whether store-keeping charges have not been taken for valuation of inventory.7 Weighted average rate is not calculated.6 In case of stores / material received during the financial year in question or any of the previous financial years from other units of BSNL whether entries about quantity and other information of the stores have been made in the Bin card & Priced Stores Ledger immediately on receipt of Stores.5 3. octroi etc in question have been merged with the value of inventory and not booked separately to accodes which had been allotted earlier but deleted latter on.

Stores are issued on the approval of DGM.12 Not applicable .9 Whether particulars of stores issued during the financial year in question have been noted in the Bin Card. has been settled promptly. Whether weighted average rate has been entered in the Priced Store Ledger. 3. Priced Stores Ledger immediately on issue of the stores to the consignee/works. 3. Whether entries in Bin Card about receipt and issue of stores have been reconciled with the entries available in the Priced stores ledger and difference if any. whether accounting entries have been made in inventory account of General Ledger and whether particulars of ATDs have been noted in IBTMS package so that consignee can account for the same.calculated at the time receipt of new consignment. 3. Yes. whether corresponding entries for such issue have been made in the Priced Stores Ledger. 3. have been sent along with all document of issue to the accounting units of consignee immediately the stores are issued.10 Not applicable 3. Whether the value of the stores reflected in the Priced Store Ledger has been reconciled with the value reflected in the Inventory account of General Ledger and difference if any has Such particulars are maintained in Stock Register.8 Whether stores have been issued on the basis of approved (by the competent authority) indent placed by the consignee / indenter. In respect of stores issued from the Store Depot / units of BSNL to works during the financial year in question whether ATDs for the value of stores worked out at weighted average rate prevailing at the time of issue.11 Bin Cards and Price Store Ledger are not maintained.

in the general ledger.11. 3.17 Not applicable 3.18 Not applicable . Not applicable 3.14 Physical Verification of Inventory has not been carried out in current financial year.been settled immediately within the financial year in question.16 Not applicable 3. In case of stores found short during physical verification as compared with the quantity reflected in the Bin card / priced stores ledger and such shortage / difference could not be settled within the financial year in question. Not applicable 3. CA240 dt.15 Whether proper documents of physical verification of stores have been prepared in the format prescribed by Corporate Office (Circular No.13 Whether proper stock register has been maintained for the stores lying at work sites and with the contractor.2008 & Circular No. whether provision has been made for the value of the shortage and necessary accounting entry regarding such provision has been incorporated in the accounts i. Whether physical verification of inventory has been carried out at the close of the financial year covering all items of inventory.e. 17.04. 15.2010) Whether the quantity of stores found on physical verification has been reconciled with those reflected in the Bin card & Priced Store Ledger and whether the difference if any has been sorted out / settled immediately by making necessary entries. 3. Whether value of stores found on physical verification has been reconciled with the value of stores reflected in Inventory account of General Ledger and Priced Stores Ledger and whether difference if any has been settled within the financial year by passing necessary accounting entries. 132 dt.

whether provision for the value of such stores has been made. has been settled immediately. whether the value of such store has been written off by the competent authority and whether provision for such stores made earlier. whether the value of such store has been written off by the competent authority due to nonrecovery / partial recovery of Not applicable No Such Case 3. whether such shortage has been totally settled during the current financial year and whether the provision if any made in previous financial year(s) for such shortage. whether entries has been made in Bin Card and Priced Stores Ledger for such stores.3.21 Whether physical verification has been carried out as per order of Corporate Office in respect of inventory lying unutilised with the contractor and lying un-utilized at work site at the close of the financial year and whether difference if any.19 In case of stores found short during physical verification conducted in previous financial year(s) and such shortage could not be settled in previous financial year(s). In case of loss of inventory due to theft and other reason whether proper accounting entry has been passed to relieve the Inventory Account of General Ledger. Not applicable 3. In case of loss of stores due to natural calamity. has been adjusted by passing necessary accounting entry in the general ledger. fire etc whether proper accounting entry has been passed to relieve the Inventory Account of General Ledger. has been fully adjusted in the current year¶s account by passing necessary accounting entry. whether entries has been made in Bin Card and Priced Stores Ledger for such stores.20 3.22 No Such Case . whether provision for the value of such stores has been made.

3. quantity. 3. 3. sanction particulars regarding declaring such stores as obsolete/unserviceable by competent authority.3. Whether the details of all inventory declared obsolete / unserviceable i. have Not applicable.26 Not applicable. . Such identification has not been made. Whether NRV has been ascertained for the stores identified as obsolete / unserviceable Whether proper provision has been made for the difference between the NRV and book value of stores declared as obsolete / unserviceable provided the NRV is less than book value of the stores.27 Not applicable. physical location of such inventory.23 such stores and whether provision for such stores made earlier has been utilized / adjusted by passing necessary accounting entries.e.24 Whether report of the Store scrapping committee and the details of stores identified as obsolete and unserviceable has been submitted to the competent authority for declaring such stores as obsolete / unserviceable. amount of provision made. NRV. description of stores. Whether inventory has been totally verified by the Stores Scrapping Committee to identify the obsolete / unserviceable / non-moving inventory and slow moving. 3. particulars about disposal of such obsolete / unserviceable stores etc. 3.28 Obsolete / Unserviceable Store Register is not maintained seperately. Whether the stores declared as unserviceable / obsolete by the competent authority have been accounted to accode for µunserviceable/obsolete stores¶ by crediting to inventory account.25 Not applicable. book value.

29 Whether obsolete / unserviceable stores reflected in the accounts have been reconciled with the entries made in µObsolete / Unserviceable Store Register¶ and the difference if any between the two sets of records has been settled. whether decision for procurement of quantity of stores in question during the current Not applicable. Whether storage arrangement for keeping inventory is adequate.32 Yes 3.34 Yes 3. whether provision made if any at the time of declaring the stores as obsolete/unserviceable has been utilized / written back. Whether appropriate action has been taken by the Circle Heads / Planning Section to utilize the slow moving and non-moving items of inventory either in works of the Circle or works of other circle Whether stores lying unutilised with contractor at the close of the financial year has been taken to inventory account by passing accounting entries and at the beginning of the next financial year such entry has been reversed.30 Not applicable 3. 3.35 Not applicable.31 No such action has been undertaken. A status report regarding computerization of inventory records must be given in the Internal Audit report Whether the quantity of inventory which have been procured during the current financial year are actually required i. 3. proper and safe.been kept in the µObsolete / Unserviceable Store Register¶. Whether obsolete & unserviceable stores lying under obsolete/unserviceable inventory accode has been disposed off promptly under proper sanction of the competent authority. 3.e. and whether loss occurred on disposal of such obsolete / unserviceable stores has been written off by the Competent authority. whether proper accounting entries has been made to account for sale value. .33 3.

it is remitted to bank on the same day.3 Yes.37 No Such case. and whether the conditions mentioned above have been considered before taking decision of procuring the quantity of stores in question. CA-218. Whether cash collected during a day has been remitted to bank on the same day and there is no delay in the remittance Whether amount collected on the last working day of the financial year has been remitted to bank on the same last day of the financial year.financial year has been taken based on the total quantity of stores required for execution of already sanctioned projects. & CA218B Bank & cash transaction Whether cashbook and bankbook are properly maintained and updated on daily basis with all transactions taken place during the day. 4. Whether proper accounting of tradable equipments has been done as per instructions issued by CA Section through Circular No.2 Yes. 4 4. it is remitted to bank on the same day.36 Whether obsolete and unserviceable inventory as reflected in Register of Obsolete / Unserviceable inventory have been verified physically and difference if any has been reconciled and settled. Cash book and Bank book are properly maintained and updated on daily basis. . CA-218A. 4.1 Yes. Not applicable. the bank has credited the cash remitted by the unit in collection bank account of the unit on the same day. 3. Whether bank has credited the cash remitted by the unit in collection bank account of the unit on the date of remittance. and taking into account the quantity of such stores which are already lying in stock of the Circle and quantity of such stores which are on the pipeline at the time of deciding procurement of such fresh quantity in question during the current financial year. 3. 4.4 Yes. if not what action the unit has taken to get the credit.

have been analysed age-wise. Whether in respect of dishonored / stale cheques the instruments have been timely forwarded by the banks along with consolidated list.6 4. Whether all the cases of cheques deposited but not credited by bank (as reflected in the Bank reconciliation statement). the instruments have been timely forwarded by the banks along with consolidated list.8 Whether all the cheques / DDs received on the closing day of the financial year but could not be remitted to bank on the same day due to circumstance beyond control. 4. it has been treated as part of cash balance. Yes.9 Yes. whether the accounting unit has reversed the amount of such dishonored cheques in the Bank Book and billing system and whether appropriate action has been taken by TRA Branch and other concerned branch of unit for realization of such amount from debtors. it has been remitted to bank on the same last day of the financial year. 4. . 4. Whether cheques has been remitted to bank on the date of their receipt and there is no delay in remittance Whether cheques / DD received on the last day of the financial year have been remitted to bank on the same last day of the financial year. it has been analysed and matter has been properly pursued with the bank authorities. have been treated as part of cash balance and disclosure in this regard has been given in the annual accounts. The unit has not any Escrow account. and whether matter has been properly pursued with the bank authorities for early credit to BSNL account.10 Yes.5 Whether the unit has reconciled the amount transferred by the Bank from the Escrow Account.4.7 Yes. Whether there are instances that cash / cheques / DDs have been remitted / deposited to / with bank but not accounted for by Yes. 4.11 There is no such case. cheques have been remitted to bank on the date of their receipt. 4.

whether Unit has reviewed thoroughly all such pending items pending in Yes. Whether all the cases of TT sent by the Units to Circle IFA and by Circle IFA to Corporate Office. whether bank reconciliation statements have properly been prepared showing all the pending items and sent to the banking cell at circle headquarters. but not credited to IFA collection account / Corporate office account or wrongly credited or credited short. Whether TT sent by the units to IFA collection account have been credited by bank to IFA¶s collection account correctly and promptly and there is no difference between the amount accounted by the remitting unit to concerned originating accode for bank transfer & IFA to concerned responding accode for bank transfer. .12 4.13 Whether the banks have transferred the money from the Collection Account of Units to Circle IFA and in turn from IFA to Corporate Office without any float. 4. Whether all the accounting units having bank account have carried out bank reconciliation in respect of each and every bank accounts of units and reconciliation has been done in respect of all transactions occurred up to the close of the financial year. 4. In case of delay in transferring the money by bank whether accounting unit and IFA have recovered interest for the delay as per terms and conditions of agreement entered with the banks.the Accounting accounts. 4. the unit has carried out bank reconciliation in respect of each and every bank accounts of units and reconciliation has been done in respect of all transactions occurred . Whether details of each and every item pending in the Bank reconciliation statement are available in the unit.16 Yes.14 Yes.15 Yes. the details of each and every item pending in the BRS are available in the unit and the unit has reviewed thoroughly all such pending items . unit in the 4. have been analyzed age-wise and whether the Unit and Circle office have vigorously pursued the case with the bank authorities to get the credit and to settle all such cases. the banks have transferred the money from the Collection Account of Units to Circle IFA without any float. Yes.

the Bank Reconciliation Statement of each bank account, whether segregation of various types of items have been done, whether the unit has made agewise analysis of the pending items in the range of > 6 months but < 1 year, >1 year but < 2 years, > 2 years.

4.17

Whether the unit and SSA have taken appropriate action to settle the wrong / excess / short / debit and credit afforded by banks which are reflected in Bank reconciliation statement and how many old wrong / excess / short debit and credit items (both quantity and value involved) which were pending at the beginning of the financial year in question, have been settled by the Unit / SSA during the current financial year. Whether SSA / accounting unit have taken proper action to clear the unlinked debit and credit reflected in the Bank Reconciliation Statement and how many old un-reconciled unlinked debit and credit items (both quantity and value involved) have been settled / cleared by the SSA / unit during the current financial year. Whether the amount recoverable from bank which will be reflected under accode 1130816 has been tallied with the details of individual amount recoverable from bank kept in subsidiary records, whether appropriate action has been taken to settle the cases, how many cases have been settled during the current financial year (amount involved) and what are the pendency. Whether proper accounting entries have been passed in respect of cheques issued but not presented to bank by party and has become time barred, whether full details of all the time barred cheques have been kept in the register of Time-barred cheques, whether details of all the time barred cheque as available in the register of time barked cheques have been reconciled with the amount

Yes, the unit has taken appropriate action to settle the wrong / excess / short /debit and credit afforded by Banks which are reflected in BRS and annexure 1 is attached for details.

4.18

No Such Case

4.19

Not applicable.

4.20

Yes, proper accounting entries
have been passed in respect of cheques issued but not presented to bank by party and has become time barred and full details are available and it has been reconciled.

reflected in the accode for µTime barred cheque and whether any payment made subsequently against such time barred cheques, has been routed through the Register of time barred cheque and debited to accode for µtime barred cheque¶ where the amount was credited earlier when the cheque became time barred, and necessary entry about such payment has been made in the Register of time barred cheque against the corresponding entry..

4.21

Whether there is any unidentified difference / unreconciled balance / unconfirmed balance in the cashbook and bankbook and whether the same has been settled promptly by the units. Whether sweeping facility has been availed by the units in respect of operation bank account and whether interest afforded / to be afforded by bank in such cases has been accounted by the units on accrual basis. Whether interest afforded by the bank on account of sweeping facility or delay in remitting the money of collection bank account to IFA and IFA to Corporate Office is correct. If not correct whether appropriate action has been for recovery of the same from the bank. Whether charges debited by bank to operation / collection bank account are as per agreement with the bank, if not whether all such cases has been vigorously pursued by units and settled by the bank authorities. Whether higher officers have verified the cash and imprest balance during the current financial year.

There is no such case.

4.22

Yes, the unit has availed sweeping facility.

4.23

Yes, the interest afforded by the
bank on account of sweeping facility or delay in remitting the money of collection bank account to IFA is correct.

4.24

Yes, the charges debited by
bank to operation / collection bank account are as per agreement with the bank.

4.25

Yes, higher officers have verified
the cash balance.

4.26

Whether the units have maintained authorized cash and bank balance and there is no holding of abnormal cash and bank balance in the operation account. Whether bank contra & cash contra has been tallied and no difference is left at the end of each month and also at the close of the financial year. Whether insurance policy has been taken in respect of cash in chest and cash in transit.

Yes, higher officers have verified
the cash balance.

4.27

Yes.

4.28

No, there is no insurance policy has been taken in respect of cash in chest and cash in transit.

4.29

4.30

Carry out surprise check of cash st at least twice once before 31 December and another before 31st March and ensure that certificate of cash in hand and cash on bank are correct. Whether payment through cash has been made as per rule and acknowledgement of receipt of cash by the receiver has been obtained by the cashier. Whether revenue stamp has been affixed as per applicable rules. Whether the accounting unit has obtained the confirmation of balance in the bank account at the close of the financial year and the same has been tallied with balance as per bankbook maintained by the unit. Whether booking made to inter bank transfer accode i.e. 19801xx (originating), 19802xx (responding), 49801xx(originating) and 49802xx (responding) i.e. originating and responding for transfer of fund from Circle IFA to SSA / Accounting of Circle and vice versa have been totally reconciled and whether the balance under originating accode has been totally tallied with balance under corresponding responding accode.

Surprise check has been carried out as on 28/12/2010.

Yes, it has been made as per rule and acknowledgement of receipt has been taken.

4.31

It is not in practice at the unit.

4.32

Yes

4.33

Yes, The same has been tallied.

proper accounting has been made in respect of deposit made as per order of the court.36 The unit has not received any fake notes. 4. If so the quantum of difference shall be mentioned.4.35 Whether amount booked to intercurrent bank transfer originating accode 19701xx and 49701xx by the Circle IFA for transfer of fund of IFA¶s collection bank account to Corporate Office as well as the amount booked to responding accode 19702xx & 49702xx to acknowledge the amount received from Corporate Office has been tallied with the booking made by Corporate Office to accode 19702xx & 49702xx Internal Auditor should review the control procedure available for cash. cheque management and suggest better system and make detailed mention about this in their report. Yes. In case of fake notes received.37 Yes. Whether difference as on 1st April of current financial year.1 There is no any difference. Sundry Debtors Whether there is difference as st on 1 April of the current financial year between the total amounts of all type of debtors as reflected in sub-ledger of debtors and debtors as reflected in accodes of debtors under General Ledger. Whether proper accounting has been made in respect of deposit made as per order of the Court and in respect of amount withdrawn by statutory authority from BSNL Bank Account. 5 5. 5.2 Not applicable. between all types of debtors including debtors for leased and VPN circuits as reflected in the sub-ledger and the total amount of debtors as per General Yes. .34 4. 4. cash & cheque management is adequate and proper at the unit. The same has been tallied. whether provision has been made for the amount of fake notes and whether appropriate action has been taken to recover the amount from the officials / external entity and in case of non-recovery whether the loss has been written off as per sanction of the competent authority.

The break up in this regard shall be indicated in the report.4 Whether ageing analysis of sundry debtor pending at the close of current financial year in the range of < 6 months. The details of such difference of debtors settled / cleared during the current financial year shall be furnished. Yes. 5. 5. 5.3 Whether the debtors booked st in the general ledger from 1 April of current financial year to 31st March has been totally reconciled with sub-ledger of debtors and no difference exist in respect of such debtors at the close of the current financial year. Whether appropriate action has been taken to collect the outstanding bills particularly the old outstanding from the debtors and out of such efforts how much recovery against the outstanding bills has been made during the financial year? How much recovery of old outstanding has been made during the financial year through projects / schemes launched as per recommendation of M/s BCG and against such collection how much cost has been incurred in the form of incentives.Ledger has been thoroughly analysed and reconciled. 5. Ageing analysis of sundry debtor will be done at the close of financial year. Out of the old outstanding cleared during the financial year how much old outstanding have been cleared through actual collection of cash and how much by cancellation & write off.5 Such effort has not been taken. .6 Not applicable. TA & DA etc apart from the salary of staff and whether such scheme and project are cost effective. 5. If there is any difference the same shall be reported. >6 months but <1 year. > 1 year but < 2 years and >2 years has been correctly worked out.7 There is no such case.

it has maintained proper Register. 5. are proper as per rules and supported by sanction given by the competent authority as per financial powers.02. 06.11 There is no such case. TA Advance.1 Yes. excess payment etc) given by BSNL to its employees and unabsorbed employees who are presently either There is no such case. which have been written off during the financial year. Whether provision for doubtful debt at the close of the financial year is done as per policy of BSNL and according to Circular 118 dt.2008.9 There is no such case. Whether the debts. The details of such adjustment shall be mentioned in the report Whether the bills. which have been written off during the year. 15. DOP.5. medical advance. 6 6. 5. which have been cancelled during the current financial year.8 Whether all the payment received against the billed amount. .2008. 5.10 Whether debts. 5.12 Provision for doubtful debt is to be made at the close of the financial year. Loans & Advances given to employees (including unabsorbed employees who are either working in BSNL or presently working in DOT. There is no such case.2008 & 137 dt. 06. have been thoroughly reviewed. are proper as per rules and whether such cancellations have been adjusted against revenue and not against provision for doubtful debt.05.02. which remained unadjusted due to various reasons. MTNL) Whether proper Register of loans and advance / Recovery Register has been maintained by the units to record all types of interest bearing & non-interest bearing loans and advances (including pay advance. have been charged to P&L A/c and not to provision for doubtful debt as per the instructions given in Circular 118 dt. linked to concerned debtors and adjusted.

Yes.6 Yes.7 Whether loans and advances given by DOT to absorbed employees and employees on deputation in BSNL has not been booked as current assets of BSNL. Whether the difference between the amount of loans and advances as reflected in the Register of loans and advances and the amount of loans and advances as per General Ledger which was pointed out by the Branch Auditors and C&AG in previous financial years. 6.5 There is no such case. 6. have been fully settled during the current financial year. 7 .3 Whether recovery of principal amount of loans and advances and other advances. interest has been recovered and noted in the Recovery Register. 6. Yes.working in BSNL or in DOT / DOP / MTNL 6. Yes.4 Whether the details of balance of each type of loans and advances pending to be recovered as reflected in the Register of employee s loans & advance have been reconciled with those reflected in the General and no difference exists between two sets of figures. has been made on regular basis as per rule and noted in the Register. 6. it is updated at the time of recovery of loan and advances. interest has been recovered.2 Whether proper entries have been made in the Register at the time of disbursing such loans and advances (including other advance. it is updated at the time of disbursement of loan and advances. excess payment etc wherever applicable. (Only the recovery of such loan and advances will be remitted to CCAs of DOT) Various type of deposits made by Yes. it has not been booked as current assets and recovery of such loan will be remitted to CCAs. 6. interest on loans and advances have been correctly calculated. excess payment etc) to such employees. Whether interest on loans and advances wherever applicable has been correctly calculated.

it has maintained.2 Whether proper sub-ledger / Register has been maintained for advances given to supplier / contractors / Govt.5 Whether the balance of security deposits / other deposits and advances as reflected in the concerned Register / sub-ledger has been reconciled with entries made in the general ledger and no difference exists between two sets of figures.1 Whether proper sub-ledger / Register has been maintained for various types security deposits / other deposits such as deposit with Electricity Board / local authorities made by BSNL units Yes. 7. companies & organization etc. Yes. Yes. 7.BSNL units with different authorities / local bodies / others and advances given to vendors / contractors / Govt. it has maintained. it has been reconciled. Yes.3 Whether proper entries have been made in the sub-ledger / Register for security deposits and Register of advances at the time of giving Security deposit / other deposits and advances. 7. 7. 7.6 Whether the difference between the amount of security deposits / There is no such difference. companies & organization and interest thereon has been made as per terms and conditions of giving advance and such recovery has been noted in the concerned Register Yes. 7.4 Whether recovery of amount of advances given to vendor / supplier / contractor / Govt. companies & organization etc. .

it has been maintained. 8. Temporary advance & Imprest Yes. 8. 8 EMD.5 No such case noticed during the year. which was pointed out by the Branch Auditors and C&AG in previous financial years. SD given by BSNL Units and Bank guarantee given by BSNL Units to others 8.2 Yes. 8.4 No such case noticed during the year. Whether the details of EMD & SD as reflected in the EMD & SD register / sub-ledger have been totally reconciled with the booked figure of EMD / SD reflected in the General Ledger and difference if any. Whether BSNL units have got the bank guarantees released promptly on fulfillment of terms and conditions. Whether refund of EMD & SD has promptly been obtained on fulfilment of all the terms and conditions related to it and same has been noted in the EMD/SD Register. the EMD/SD register has been maintained and refund is noted properly in the same. Whether Register for Bank Guarantees given by BSNL Unit has been maintained and details of all such bank guarantees have been kept in the said Register. 9 . it has been reconciled. have been fully settled during the current financial year. 8.other deposits and advances as reflected in the Register of Security Deposits / other deposits and Register of advances and the amount of security deposits / deposits and advances as reflected in the General Ledger.1 Whether proper sub-ledger / Register has been maintained for keeping details of EMD & SD given by BSNL Units. between two sets of figure has been settled.3 Yes.

1 Each and every expenditure made from temporary advance and the Internal Auditor must scrutinize imprest from proprietary angle.3 There is no such case. Whether there are incidence of taking temporary advance involving huge amount frequently / within short interval by selective group of officers and whether there is justification for such temporary advance in view of the fact that repair & maintenance of most of assets are done through annual maintenance contract and most of other works of recurring nature are carried out through contractor selected through established procedures. interest has been recovered for the delay. The findings should be given in the internal audit report. In case of delay whether interest has been recovered for the delay as per order from the concerned officer who has defaulted. 9. Yes. Whether there are instances of granting temporary advance without adjusting the previous one. 9. the expenditure made from temporary advance has been scrutinized. The findings of such checking should be reported in the Internal Audit Report.5 Yes. and credited to BSNL Account. The Internal Auditor to the Circle IFA must report any abnormality in this respect.9. 9.4 There is no such case. If so. 9. what action has been taken by the IFA / Head of the Unit to prevent such type of irregularities must be indicated by the Internal Auditor in the Audit Report. The genuineness of at least 25% of vouchers of temporary advance and imprest for items procured / services availed must be checked by the Internal Auditor.2 The vouchers of temporary advance have been vouched and it is found to be correct. Whether there are instances of non-submission of bills against temporary advance within the scheduled time frame for adjustment of temporary advances. The Internal Auditors in the Audit Report shall indicate the remedial action taken by the Management in this regard. .

Control Registers have been maintained for various type of amount recoverable from DOT such as GPF advance. The head of the unit has implemented a system to not sanction any further temporary advance until the first one is settled (i.3 Not applicable. bill & invoice submitted and balance is settled) 10 10. Whether balances which are pending to be recovered from DOT & DOP as reflected in the Register / Sub-ledger have been Yes. 10.1 Yes. Amount recoverable from DOT. 10. . salary of BSNL staff working in DOT.6 Not applicable. Whether payment received from DOT & DOP has been noted in register. DOP. and active persuasion has been made for recovery of such claim particularly the old claim bills.6 The Internal Auditor in the Audit Report shall indicate what action has been taken by the Head of Unit and IFA of the Circle to control the expenditure from Temporary Advance and Imprest. MTNL Whether Control Registers / Sub-ledgers have been maintained for various type of amount recoverable from DOT such as GPF advance/final withdrawal given by BSNL to its absorbed staff. 10. leave salary paid to BSNL employees working in DOT on deputation. 10. which are recoverable from DOT. proper entries have been made in the Sub-ledger at the time of disbursement of such amount to concerned staffs.5 Not applicable. house keeping charges of such buildings. Whether Register / Sub-ledger is maintained for amount recoverable from DOP such as rent of BSNL buildings occupied by DOP. which are recoverable from DOT.4 Not applicable.2 Whether proper entries have been made in the Register / Sub-ledger at the time of disbursement of such amount to concerned staffs. Whether claim bills supported by detailed schedules for each type of claim have been preferred to DOT & DOP promptly. services provided by BSNL to DOP etc.9. 10.e. noted in the Register.

6.9 Whether claim bill for recovery of interest on loan & advances (wherever applicable) given by BSNL to unabsorbed employees who are presently working in DOT. medical advance. 10. DOP & MTNL and whether the details of principal and interest amount recovered from DOT. DOP & MTNL Whether the Unit has actively pursued and taken proper steps for recovery of principal amount of such loan and advances and interest thereon (wherever applicable) from DOT.reconciled with the balances as reflected in the General Ledger and difference if any has been settled. DOP & MTNL. have been preferred to DOT. 10. 10. have been preferred to DOT. Whether claim bills supported by detailed schedules for recovery of principal amount of loans and advances (including pay advance. DOP & MTNL have been noted in the Register of loans & advances as mentioned Sl. Not applicable. TA advance) which have been given by BSNL to unabsorbed employees who are presently working in DOT.1 above.1 Not applicable at the unit.7 Whether details of amount recoverable from DOT on various account have been uploaded in Web based system and the same has been tallied with booked figure reflected in General ledger. Various deposits taken from the subscribers / other operators Whether there is any booking under the accode for ³Before connection deposit´. whether all the details of all such deposits are available in ³Register of Before connection deposit´. 11 11. DOP & MTNL. DOP & MTNL Not applicable. If so. .10 Not applicable. 10.8 No such case noticed during the year.

11. 11. Whether the total balance of µBefore Connection Deposits¶ as reflected in the Register / Subledger are tallied with those reflected in General Ledger and difference if any has been settled.3 Not applicable at the unit.8 Yes. Whether refund / adjustment of µAfter Connection Deposit¶ has been routed through the Register of After Connection Deposit and such refund and adjustment have been correctly noted in the Register of After Connection Deposit. 11. Not applicable at the unit. it has been maintained.5 Whether details of all After connection Deposits have properly been maintained in µRegister of after connection Deposit¶. 11.7 Not applicable at the unit. Whether the balance of µAfter Connection Deposit¶ as reflected in the Register of After Connection Deposit¶ have been reconciled with the booked figure in General Ledger and difference if any between two sets of figure has been fully settled.2 Whether refund / adjustment of µBefore Connection Deposit¶ has been routed through the subledger / register of Before connection Deposit and such refund / adjustment has been correctly noted in the Register of Before Connection Deposit.4 Not applicable at the unit.11. Whether before connection deposit reflected in Register of µBefore Connection Deposit¶ has been reconciled with the waiting list and the difference if any has been settled.6 Not applicable at the unit. 11. Check whether proper details of all other deposits (other than before connection and after Not applicable at the unit. Whether the details of after connection deposits have been reconciled with the working connection and there is no difference. 11. .

12. SD. it is maintained by the unit. it has been reconciled. 11.11 No interest has been charged on other deposits.2 Yes. it has been reconciled.connection deposit) taken from subscribers / other operators / service providers have been maintained in the Sub-ledger / Register of other deposits. 12. 12. Bank Guarantee taken by BSNL from others Whether details of EMD & SD taken by BSNL Units have been properly kept in sub-ledger / Register of EMD / SD.3 Yes. Whether EMD & SD are refunded promptly on fulfilment of all the terms and conditions related to it and same is noted in the EMD/SD Register. Whether refund / adjustment of EMD & SD has been routed through the sub-ledger / register of EMD & SD and such refund / adjustment has been correctly noted in the Register of EMD & SD. Yes.4 Yes.1 EMD. has been settled.9 11. Whether liability for interest on subscribers deposit wherever applicable. Yes. Whether the balance of all such other deposits as reflected in Register of other deposits are reconciled with those reflected in the General Ledger and difference if any has been fully adjusted. . Yes. has been created and accounted. 12 12. Whether the total balance of EMD & SD as reflected in the EMD & SD register/sub-ledger have been reconciled with the booked figure of EMD / SD reflected in the General Ledger and difference if any. 11.10 Whether refund / adjustment of other deposits has been routed through the Register / Subledger of other deposit and such refund and adjustment have been correctly noted in the Register of other Deposit.

13 13. service providers.2 Yes. Whether the Units has got the bank guarantee renewed wherever required as per terms and conditions. Whether payment particulars have been noted in Sub-ledger/Register for creditors. 13.1 Whether Sub-ledger / Register for Creditors has been maintained for all types of creditors i. Whether all the payment to creditors has been routed through the Register for Creditors and debited to accodes for liabilities / provisions where the amount of liabilities / provisions had been credited at the time of creation of such liabilities / provisions. Whether the Unit has encashed the bank guarantee promptly as per terms and conditions related to such bank guarantees. Sundry creditors & provisions Yes. vendors. 12. other telecom operators etc and whether the details all types of liabilities and provisions payable to such creditors have been noted in the Sub-ledger / Register of Creditors at the time of creation of such liabilities / provisions.e. 12. It is found in order.9 No such case noticed during the year.12.7 Yes. 12.6 12. . It is maintained by Unit. contractors. 13. Whether details of all the pending liabilities / provisions reflected in the Sub- Yes. Yes.it is maintained by the unit. suppliers.3 Yes.8 Yes. on expiry of validity period of the bank guarantee in question. it has been reconciled. Whether bank guarantee taken by BSNL units has been released promptly on fulfilment of terms and conditions.5 Whether register has been maintained for bank guarantee taken by BSNL Units from others Whether details of bank guarantee taken by BSNL units have been kept in the Register. It is maintained by Unit.

4 13.5 14 Whether liabilities / provisions found excess on review of the total liability / provision created. have been written back promptly and whether the balance under accodes for liability / provision of general ledger and pending items of Sub-ledger / Register of Creditors reflect the actual liability / provision pending to be disbursed.3 Yes. 13.ledger/Register of Creditors have been reconciled with the total amount of liabilities and provisions as reflected in the General Ledger and difference if any between two sets of figure has been totally settled. monthly GPF subscription & GPF advance recovered from absorbed has been prepared. 14. . Whether the circle has taken action to obtain confirmation of the creditors at the close of the financial year. No Such action has been taken 14.1 Whether proper liability / provision has been created for pension contribution (for absorbed and unabsorbed employees working in BSNL) & leave salary contribution (for unabsorbed employees on deputation in BSNL) payable to DOT. the detailed schedules for monthly pension contribution and leave salary contribution payable to DOT have been prepared and it has been tallied.2 Yes. Payable to DOT / DOP There is no such case. actual liability / provision and payment already made. Whether the detailed schedules for monthly pension contribution and leave salary contribution payable to DOT has been prepared and whether total amount of such schedules has been tallied with amount of liability as reflected in the general ledger Whether detailed schedules for monthly recovery of principal amount of loans and advance (given by DOT to absorbed employees of BSNL and unabsorbed employees on deputation in BSNL) and interest The unit sent schedule to circle and circle make payment to DOT. detailed schedules for monthly recovery of principal amount of loans and advance and interest thereon. 14.

14. USO levy & Spectrum charges have been calculated correctly. monthly recovery of GPF Subscription. 14. GPF Advance. monthly GPF subscription & GPF advance recovered from absorbed and unabsorbed employees. USO levy & spectrum charges has been routed through provision accodes of 120 & 420 Monthly schedule prepared by the unit and sent to corporate office.5 Yes. Whether amount of monthly pension & leave salary contribution. and subsequent payment against such liabilities. Whether payment of license fee. loans & advance. 14. has been prepared and whether total of such schedules has been tallied with monthly amount of recovery as reflected in the General Ledger. monthly recovery of CGEGIS in case of unabsorbed employees. CGEGIS has been paid to CCA of DOT within due date and whether payment has been noted in the Register and debited to the concerned accode for pension & leave salary contribution and accodes for recovery. CGEGIS. whether liability for LF.6 The same calculation is made by circle.4 Whether Register for liabilities towards pension & leave salary contribution. recovery has been made. Whether quarterly GR & AGR have been calculated correctly as per instruction of Corporate Office. 14. loans & advances given by DOT) payable to DOT has been maintained and whether entries have been made in such Register as when liabilities have been created. USO levy and spectrum charges has been created by debiting the expenditure accodes 171 & 471 schedules and crediting the provision accodes of 120 & 420 schedule and whether details of such liability has been noted in liability register for LF. whether based on such AGR quarterly License Fee. USO levy and spectrum charges.7 The same calculation is made by circle.thereon. . and Register for Recovery (GPF subscription & advance.

9 Whether the closing balance of various liabilities payable to DOT & DOP as reflected in the General Ledger has been reconciled with the details of pending liabilities as reflected in the liability register for DOT & DOP and difference if any between two sets of figure has been settled. Whether principal amount of loans & advances (given by DOP / MTNL to absorbed employees of BSNL or unabsorbed employee presently on deputation in BSNL). 14.10 Not applicable for the unit. Not applicable for the unit. Sub-ledger of liabilities payable to employees has been maintained for all types of liabilities towards salary and . house-keeping charges for such DOP building occupied by BSNL.schedules and liability register. AGR & details of license fee. and paid to the DOT / MTNL. Salary payable & bills payable to employees Whether Sub-ledger / Register of liabilities payable to employees has been maintained for all types of liabilities towards salary and other claims of the Not applicable for the unit.1 Yes. 14. 14. and interest thereon have been recovered by BSNL from such employees through pay bill. spectrum charges have been submitted to CCAs of DOT and whether the payment particulars have been noted in the liability register. 15 15. postal services provided by DOP to BSNL etc has been created and accounted to concerned accodes of liability as and when the liability accrues. whether payment has been made within due date and details GR. whether details of such liability has been noted in the liability Register for DOP.8 Whether liability towards rent for space of DOP building occupied by BSNL. and whether payment against such liability has been made within due date and noted in the liability register.

. GPF subscription & advance. Yes. plus (ii) the net amount payable to employees which are booked to liability accodes for salary payable to employees. the monthly salary has been drawn for the staffs who are covered by the sanctioned strength staff and on sanctioned leave. EPF (employees share of contribution). Whether total of monthly gross salary drawn and booked to concerned expense accodes has been totally tallied with the (i) total amount of recoveries / deductions made from salary on account of loans & advances. Income Tax and other items of recovery which have been credited to various accodes of liabilities / credited to accodes for recoverable ± under current asset / out of account etc. it has been reconciled. Yes.5 Yes. Whether details of liabilities payable to employees reflected in the sub-ledger / Register have been totally reconciled with the liabilities reflected in the General Ledger and difference if any has been settled.employees and whether details of all sorts of such liabilities has been noted in the said Register as and when such liabilities have been accrued and created by debiting the relevant expense accodes for salary. 15. other claims of the employees and register of liabilities has not been maintained.4 Whether the monthly salary has been drawn for the staffs who are covered by the sanctioned strength of staff and who are working or on leave sanctioned by competent authority. payment disbursed against such liabilities have been debited / adjusted to concerned accodes for liabilities payable to employees.3 Yes. whether particulars of such payment have been noted in sub-ledger / register of liabilities payable to employees. 15. 15.2 Whether payment disbursed against such liabilities have been debited / adjusted to concerned accodes for liabilities payable to employees where the amount of liability had been credited at the time of creation of the liability. it has been tallied. 15.

whether corresponding payment or adjustment of such liability against some other recovery has been debited to concerned accodes for bills payable to employees.6 Bills are generated by EZBC.6 16 16.3 16. Kolkata. What corrective action has been taken by the Management to ensure that bills in respect of all working connections are generated with correct address? Whether the value of MCU (except the MCU for free calls) has been tallied with the amount Not applicable. children education allowance. it has been correctly worked out and sanctioned by competent authority and liability has been created. bills have been issued to such identified customers and the amount of bill has been realized from the customer. medical with vouchers & indoor treatment.5 Not applicable. Not applicable. Kolkata.e. 16. Income / Revenue Whether in respect of post paid connections bills has been generated in respect of all working connections Whether telephone connections for which billing has been made as per billing cycle.15. reimbursement of expense on newspaper etc have been correctly worked out and sanctioned by competent authority. .2 16. whether liability was created by booking the expense to concerned expenditure accode and crediting to accode for bills payable to employees. Not applicable. Yes. has been reconciled with the details of working connections as shown in MIS statements. Bills are generated by EZBC.1 Whether various other claims of employees (other than the salary) i. 16. Whether revenue in respect of un-addressed bill has been recognized only when the customer has been identified. 16. Whether the Management has identified customers in respect of all un-addressed bills.4 Whether un-addressed bill has been generated and also whether there are instances of un-addressed bill for consecutive two cycles in respect of same telephone number. TA & DA.

NI. concessional tariff Plan. Whether the µCategory¶ assigned to each connections (particularly the connections to which the category of unlimited call facility. revenue has been recognized strictly as per Yes 16. . Whether in respect of disconnected telephone connection. there is no leakage of revenue due to assignment of wrong category. 16. Whether in respect of all service telephone connection (RSTC) bills have been generated.10 Not applicable. charges to be recovered are correctly calculated. In case of post paid service whether proper reconciliation has been carried out in every billing cycle between the amount of revenue billed for various items and the amount of revenue for various items which has been recognized as income in the accounts during the said billing cycle and whether the difference if any between two sets of figure has been properly explained.7 of revenue booked as call charges and there is no difference between two sets of values. service connection.12 Not applicable.11 Not applicable. checked and found correct by the competent authority in order to ensure that appropriate tariff is applied.16. Whether OYT rebate has been properly monitored and whether the rebate has been stopped immediately after the prescribed period for rebate is over. RSTC.9 Not applicable. amount of bill beyond the concessional limit has been accounted and such amount has been recovered from the concerned employees. Whether bills in respect of concessional telephone connections given to employees as per terms and conditions of service has been issued. accounted and realization of the amount of such has been made. other concessional facility etc has been assigned) has been thoroughly reviewed. 16. issued. 16.8 Yes 16.

18 Yes . 16. Whether in case of closed connection accounts have been finalized within the time frame fixed for the purpose. Whether all provisional bills issued in case of dispute and the rebate given in respect of such bills. and whether all cases of provisional bill has been settled promptly and no delay occurs in finalization of such cases. has been accounted as income received in advance by passing necessary accounting entry. Kolkata. 16. has been recognized as income of the current month / financial year by passing necessary accounting entry.existing rules and orders issued by BSNL.16 In case of cancellation of bills whether the cancellation has been done by the appropriate authority and whether immediate higher authorities have examined all such bills cancelled bills and whether as per their findings such cancellation is correct. have been verified by higher authorities and found correct as per their findings. It is done automatically by EZBC. 16.13 Whether appropriate portion (applicable to the current month / financial year) of the revenue which was been received in advance in previous financial year(s) / month(s).17 There is no case of delay in disconnection due to Non payment. Whether there are instances of delay in disconnection due to non-payment and also instances of delay in permanent closure of telephones and what action has been taken by the Management for such delayed disconnection and permanent closure.15 Not applicable. by adjusting the deposits against the pending claim bills and whether effective steps have Cancellation of Bill are done by AOTR. Whether revenue received in the current month / current financial year but applicable for future period. Not applicable. 16. 16.14 Not applicable. 16.

which was booked. 16. electricity and other items from USPs who are sharing the USO Infrastructure (tower) installed & maintained by BSNL.16. 16. bills for such charges have been raised. as accrued in previous financial year.e.23 Not applicable for the unit. 16. proper accounting has been done. . and subsidy has been realized from CCAs.21 Not applicable for the unit. charges for diesel. such charges have been recognized either as revenue of the current financial year or as revenue in advance. Whether the entire amount of revenue. Whether revenue from DSPT service has been recognized. amount of bills has been accounted.22 Not applicable for the unit.19 been taken to recover the balance outstanding if any. Whether charges for all working circuits (leased & VPN circuits) details of which are available TARIT-PLUS system. and the same has There is no such case. Whether charges for circuits have been calculated from the date of giving the connection and accordingly claims have been preferred. and the amount of claim has been realized. has been calculated correctly. 16. Whether reconciliation has been carried out between the amounts of bills raised and the amount recognized as revenue. as per terms and conditions of agreement with USO Administrator and USPs have been correctly calculated. Whether the claim for reimbursement of expense i. has been totally reversed in the beginning of the current financial year. Whether USO subsidy for DSPT service (one time at the time of installation of DSPT & annually equated subsidy for five years) has been recognized as revenue. bills for such reimbursement have been preferred to USPs.20 Not applicable for the unit. Whether reconciliation of number of circuits commissioned / working with the number of circuits billed has been done and there is no difference. accounted and realized.

bills for such fixed charges have been preferred to USPs. which are pending to be recovered from USPs and as reflected in the sub-ledger have been reconciled with outstanding amount as per general ledger and there is no difference.16. 16. credited to expenditure accode where the expenditure incurred has been debited during the quarter. Whether CMTS vertical have accounted the expense on diesel. amount of claim has been recognized as income on accrual basis and the same has been Not applicable for the unit.24 been recovered from USPs as per order of Corporate Office.25 Not applicable for the unit. electricity and other items by accepting ATD as well as recognized the fixed charges as inter-segment expense by accepting the inter-segment ATD. Whether the details of the claims for reimbursement of expense and fixed charges. Whether a portion of such fixed charges has been transferred through inter-segment ATD to CMTS vertical of BSNL by recognizing the same inter-segment income. Whether fixed charges towards diesel generator set(s) and other items to be recovered from other USPs who are sharing the USO infrastructure installed and maintained by BSNL. has been correctly calculated.27 Not applicable for the unit. Whether claims for USO subsidy for USO Infrastructure (tower) has been correctly calculated as per agreement and order issued by corporate office. Whether a portion of such expenditure has been transferred through ATD to CMTS vertical of BSNL for sharing the same USO tower by the latter. .e. Whether in the last month of each quarter the amount of expenditure to be reimbursed by USPs for the said quarter. 16. has been neutralized i. claims for such subsidy have been preferred to CCAs of DOT.26 Not applicable for the unit. 16. amount of bills has been accounted as income and charges have been recovered from USPs.

29 Not applicable for the unit. Rural Telephony.33 Not applicable for the unit. Rural Broad band as per Subledger have been reconciled with amount of such outstanding claims reflected in the General Ledger and there is no difference. amount of claim has been accounted as income on accrual basis and the same has been recovered from them. space. replacement of MARR system etc.30 Not applicable for the unit. amount of claims has been recognized as income on accrual basis and the same has been realized from CCA. 16.e. claims have been preferred to CCA.31 Not applicable for the unit. tower) given on rent to other telecom service providers at point of interconnection (POI) level have been calculated correctly.2002 and Rural Broadband have been correctly calculated.) installed on or after 01. Whether outstanding claims for USO subsidy in respect USO Infrastructure. Whether IUC recoverable from other service providers has been correctly calculated as per IOBAS data. amount of claims has been recognized as income and realized from other telecom operators. 16. claims for such charges have been preferred to other telecom service providers.04. rural house hold connection. recognized as income. Whether charges for infrastructure (such as ports. claims for IUC have been preferred. 16. VPT. Whether IUC recoverable from MTNL has been got accounted.28 Whether claims USO subsidy in respect of Rural wire-line connection n (i.32 Not applicable for the unit.realized from CCA. 16. . Whether revenue share for inward traffic received from SAARC countries during the financial year in question has been correctly calculated. claims for revenue share have been preferred to SAARC countries. 16. 16. and realized from MTNL through Northern Telecom Region. Not applicable for the unit.

11. Whether international roaming revenue recoverable from international roaming service provider has been correctly calculated. bills has been preferred. and liability has been created for the share of revenue payable to channel partners / service providers. 16.36 Not applicable for the unit. . 16.34 Whether revenue to be recovered from other ILD operators / ILD service provider for incoming ILD traffic has been correctly calculated. amount of bills has been recognized as income on accrual basis and realized from such operators / service provider. 16. SAARC revenue. international roaming revenue as per Sub-ledger have been reconciled with amount of such outstanding claims reflected in the General Ledger and there is no difference. 113 dt. claims for such revenue share has been preferred.2007. roaming revenue has been recognized as income on gross basis and realized from such operators.37 Not applicable for the unit. 16.amount of claims has been recognized as revenue on accrual basis and such revenue share has been recovered. IUC. revenue for incoming ILD traffic. Not applicable for the unit. Whether revenue generated from various value added services provided to BSNL subscribers through channel partners / service providers has been correctly segregated as revenue of BSNL and revenue share payable to channel partners / service providers as per agreement.38 Not applicable for the unit. 30. BSNL¶s portion has been recognized as revenue of BSNL. Whether outstanding claims for infrastructure. Whether accounting of revenue from the subscribers registered under Free EPABX Scheme and accounting of revenue share to be given to the EPABX Manufacturer / Empanelled Franchisees has correctly been as per Circular No.35 Not applicable for the unit. 16.

fixed charges. Whether net revenue has been booked wherever agreement with franchisees.41 Yes 16. inspection quarters. channel partners.44 Not applicable for the unit. Whether charges for services provided by BSNL to DOP and for infrastructure of BSNL shared by DOP has been calculated correctly.42 Not applicable. residential quarters. recognized as inter-segment income in CFA & CM and corresponding entry has been made to recognize the intersegment expenditure by CM & CFA respectively. . such charges have been recognized as income of BSNL.45 Not applicable for the unit.39 16.16. electrical installation etc) other than those given at POI location Not applicable for the unit. DSA. duct. Whether income for services provided to MTNL (other than IUC) has been recognized as per order of Corporate Office. There should not be any difference between inter-segment income and intersegment expenditure. Yes 16. 16. PCO holder is on µprincipal to principal¶ basis. claims for such charges has been raised and realized from DOP. 16. usage charges & other charges for the period not billed for up to 31st March) and not on the basis of estimation and accounted as accrued revenue.40 Whether accounting of tradable items (stand alone sale or sale of such items bundled with service). and recognition of revenue has been done as per circulars issued by Corporate Office (refer latest circular in this regard). Whether inter-segment income has been correctly calculated in respect of traffic taken place between Basic & CMTS of BSNL and vice versa during the financial year in question. Whether charges for various infrastructure (such as space in administrative and operative buildings.e.43 Not applicable for the unit. Whether revenue accrued and due but not billed for has been calculated on actual basis (i. 16.

51 Not applicable for the unit. Whether the revenue generation and recognition throughout the year is more or less uniform and not concentrated on the last few months of the financial year. claims have been recognized as income of BSNL and realization has been made. Whether charges for training services provided by Training Centres of BSNL to external entities have been correctly calculated.46 16. . water charges. charges for inspection quarters. Whether revenue has been booked to correct head of account.47 16. interest on short term bank deposits / sweep in facility.50 Yes. 16. Not applicable for the unit. Whether revenue billing package used by the Circle has been got audited. Not applicable for the unit. sale of waste papers. Whether revenue meant for a financial year has been accounted as income in the said financial year and no excess revenue has been accounted and no revenue has been left to be accounted. profit on sale of assets. RTI fee and related other charges recovered if any. the amount of bill has been recognized as revenue and realization of amount of claim bill has been done. Whether all other sorts of income which are categorized / defined as ³Other Income such as license fee for residential quarters. the revenue generation and recognition throughout the year is more or less uniform. have been properly calculated. sale tender forms. 16. examination fee. charges for usage of BSNL assets by contractor etc have been correctly recognized in the accounts. charges for water and electricity provided to contractor.49 Yes. 16.16. interest recovered from employees on loans & advance. interest recovered from employees as penalty. bills for such charges have been raised. given to external entities as per new policy of BSNL. bills have been raised.48 and towers. Yes.

16.55 Not applicable for the unit.1 Whether Register for all types of pre-paid items such as SIM Card. Revenue from prepaid items Yes. 16. Internet card etc has been maintained at all levels of BSNL Units. 17. 17. franchisees Yes 17.2 Yes . (i) opening stock of prepaid items at the beginning of the financial year.53 Not applicable for the unit.16.54 Not applicable for the unit. Whether continuous monitoring has been done in case of connection like µJODI¶. (ii) receipt of prepaid items from vendors / telecom factories during the financial year. Whether proper entries of all types of pre-paid items have been made in the Registers of prepaid items / software functioning for the purpose (i. Recharge coupon. E-Pin. ITC. µTricon¶ etc in order to stop the concerned concessional facility as and when the subscribers have failed to observe the terms and conditions of such connection.52 Whether credit limit given to subscribers has been continuously monitored and action has been taken to get recoupment from the subscribers promptly and service is restored immediately on getting the recoupment. Whether Tatkal deposit (after connection) has been recognized as revenue per order issued by Corporate Office.e. (iv) actual sale either bulk sale or retail sale of prepaid item to subscribers. 16. CELLONE Vouchers. Whether accrued revenue has been calculated correctly at the close of the financial year based on actual meter reading and accordingly the accrued revenue has been recognized. (iii) issue of prepaid items to various selling points / CSCs of BSNL during the financial yea. Credit limit is monitored on Daily basis. VCC. direct selling agent.

bill-cum-delivery challans for consignment received. (vi) prepaid items destroyed under the sanction of the competent authority.3 Whether closing stock of SIM and various other prepaid items as reflected in the Registers / software functioning for the purpose. sale voucher. (v) extension of validity of expired prepaid items under the sanction of the competent authority.4 Yes 17.and others. commission etc and no difference exists between the two. sanction memo of the competent authority for extension of validity period. has been reconciled with the physical stock of prepaid items which are remaining unsold at all levels of BSNL units from time to time and at the end of the financial year no difference exists between physical stock and book stock. 17.5 Yes . credit Yes 17. Whether total value of prepaid items actually sold to subscribers. incentive.e. sanction memo for destruction of prepaid items etc.e. franchisees and others by various selling units of BSNL as reflected in Register / software have been reconciled with the amount of revenue recognized in the accounts as income plus the value of prepaid items given free or given as gift. issue voucher / slips. trade discount. Whether proper accounting of CELLONE vouchers sold in bulk to Solution Providers (SP) has been done. and whether reconciliation of such entries made in the Register / software has been carried out with the physical items of such prepaid item and relevant records i. direct selling agent. utilization of such vouchers by CELLONE customers for payment of CELLONE bills as well as utilization of such CELLONE vouchers by wire-line customers for payment of their wire-line bills has been correctly accounted and the amount of such utilized CELLONE vouchers i. (vii) closing balance of prepaid items).

SIM.e. CTOP UP etc. franchisees and others are properly recognized and there is no leakage of revenue. plus (ii) the value of prepaid items given as free and/or given as gift. and no difference exists between two sets of figures. and required reconciliation has been carried out at every stage as per instructions issued through Circulars having No 110 and 187 by CA Section.6 Whether correct accounting of has been done in respect of Online Recharge of BSNL prepaid Mobile through BSNL Portal and necessary reconciliation has been done as per instructions issued through Circular No. 17.has been transferred to concerned circles / units for adjusting the sundry debtors of Post paid & wire-line service. sold through channel partners. during the said financial year. recharge made online through BSNL Portal. plus (iii) total value of CELLONE vouchers utilized for payment of CELLONE bills & wire-line bills during the financial year which has been accounted by respective units as credit to Sundry debtors for Post paid CMTS and Basic service. 187 Whether revenue from top-up. trade discount.8 Yes 17. have been reconciled with the (i) total amount of prepaid revenue from various prepaid items which has been recognized as income from prepaid service during the said financial year.7 Yes 17. incentives. Whether the total value of all types of prepaid items i. e-PIN. Whether prepaid items given as free or gift has the sanction of competent authority and the Yes 17. CellOne vouchers etc. commission etc.9 Yes . recharge vouchers. CELLONE Vouchers etc which have been activated in IN platform during a financial year.

Expense Whether expense in respect of pay & allowances of staff. trade discount.11 Yes 17. commission etc are as per policy of BSNL and has the sanction of the competent authority. expense on TA & DA. administrative charges towards EPF) i. medical (medical allowance. Whether expense in respect of all types of employees benefits (other than pay & allowances of staff. and corresponding liability has been created by crediting to concerned liability accode. 18. Franchisees. . online. credit cards etc. Tuition fee. DSA. leave salary contribution (for unabsorbed staff). Whether the details of distributors. indoor treatment). has been properly reconciled. pension contribution.e. 17.12 Yes 18 18. pension contribution. employer's share of contribution to EPF. newspaper etc related to the financial year in question has been has been correctly calculated and recognized in accounts of said financial year by debiting the concerned expense accode as and when the liability has accrued. administrative charges towards EPF etc related to the financial year has been recognized in accounts of the said financial year by debiting the concerned expense accode as and when the liability has accrued. CEA. outdoor treatment with voucher. channel partners and related terms and conditions have been properly maintained in a Register.10 Whether prepaid items given as incentives. classified and adjusted.same is supported by policy of BSNL. Whether the payment received through Bill Desk. and corresponding liability has been created by crediting to Yes 17. employer's share of contribution to EPF. leave salary contribution (for unabsorbed staff).1 Yes.2 Yes.

. insurance service. technical service (for processing CDR. transporters. professionals. 18. (i) various types of services availed by BSNL during the financial year in question i. transport service.4 Whether expense in respect of Yes.concerned liability accode. professional service. and whether subsequent payment or adjustment of liability has been debited to concerned accode for liability / provision. postal service.5 Whether expense towards IUC payable to MTNL related to the financial year in question has been recognized and accounted in the accounts of the said financial year through NTR and corresponding liability has been Not applicable for the unit. insurer. raw material of telecom factories received against purchase order during the financial year in question.e. TAP IN TAP OUT etc) etc provided contractors. Whether expense in respect of It is maintained at circle level. 18. has been recognized in the accounts of the said financial year as and when the liability has accrued.3 18. repair & maintenance service. various other service providers etc and (ii) material / stores and office stationery. courier service. courier companies. IUC related to the financial year in question payable to other telecom service provider has been correctly calculated and recognized in the accounts of said financial year by debiting the concerned expense accode and corresponding liability has been created as and when the liability has accrued and actual payment made for IUC has been adjusted against the liability. security service. has been recognized by debiting the concerned expense accode and corresponding liability has been created by crediting the concerned liability accode. post offices. IOBAS.

18. 18. Whether expense towards lease charges for various types of assets taken on operating lease by BSNL for the financial year in question has been correctly calculated and recognized by the units in the said financial year and liability has been created. 18. Whether expense related to the financial year in question in respect of international roaming charges payable to other Operators has been calculated correctly and recognized in the accounts of said financial year by debiting the expense accode by Nodal circle and corresponding liability has been created and paid. Whether expense on all types of bandwidth and related service taken by BSNL from others for the financial year in question has been correctly calculated and recognized by nodal circles in the said financial year and liability has been created. Whether expense on transponder taken by BSNL from Antrix Corporation for the financial year in question has been correctly calculated and recognized by nodal circle in the said financial year and liability has been created. 18.created.9 Not applicable for the unit.10 Not applicable for the unit. . 18. 18. Whether expense in respect of outgoing ILD traffic originated during the financial year in question has been correctly calculated and recognized in the accounts of said financial year by Nodal circles and corresponding liability has been created and paid. Not applicable for the unit.7 Not applicable for the unit.8 Not applicable for the unit.6 Whether expense towards outward traffic originated from BSNL Subscribers and terminated in SAARC countries during the financial year in question has been correctly calculated and recognized in the accounts of same financial year and corresponding liability has been created.11 Not applicable for the unit.

Whether expense for infrastructure / USO infrastructure which are owned by other operators / organization but shared by BSNL.15 Yes 18.13 Not applicable for the unit. 18. 18. and recognized in the accounts of the said financial year and liability has been created. 18. as per agreement entered by BSNL with the formers. post offices.18.17 Yes. Whether expense in respect of discount & commission which are applicable for the financial year in question and payable to franchisees.14 Not applicable for the unit. retailers.16 Yes. collection agents etc. Whether expense on negative subsidy payable to USO Administrator for provision of mobile service through USO towers for the financial year in question has been correctly calculated and recognized in the said financial year and liability has been created. Not applicable for the unit. banks. Whether expense on rent for the accommodation owned by others but utilized by BSNL for the period of use pertaining to the financial year in question has been correctly calculated and recognized in the said financial year and corresponding liability has been created. has been calculated as per agreement for the period of use related to the financial year in question. has been calculated correctly and recognized in the accounts of the said financial year and liability has been created. PCOs. 18. . Whether expense for the works performed by the contractor during the financial year in question has been correctly calculated and recognized in the said financial year and corresponding liability has been created.12 Whether expense pertaining to the financial year in question on maintenance of sub-marine cable has been correctly calculated by nodal circle and recognized in the said financial year and liability has been created.

Whether the utilization of diesel in exchanges is reasonable with reference to power cuts as per records maintained.19 18.23 No 18. and housekeeping charges for the said period has been calculated as per rate fixed by FRAC.24 Not applicable for the unit. other authorities etc applicable to the financial year in question has been correctly calculated and recognized in the said financial year and corresponding liabilities have been created. Whether quarterly GR. 20% test check shall be carried out from Electricity authority about power cut.20 18. advertising etc for the financial year in question has been correctly calculated and recognized in the said financial year and liability has been created. Whether expense on marketing. Whether expense on rent for postal building occupied by BSNL for the period of use pertaining to the financial year in question. 18. No such types of expenses incurred during financial year.21 Whether expense on electricity and diesel consumed during the financial year in question has been correctly calculated and recognized in the said financial year and corresponding liability has been created. 18. USO levy and spectrum charges Yes. Not applicable for the unit.18 18. . Not applicable for the unit. Whether expense on rates and taxes payable to local bodies.18. recognized in the said financial year and liability has been created. Whether expense towards amount payable to Ministry of Health & Family Welfare for extending the CGHS benefit to BSNL employees related to the financial year in question has been correctly calculated. AGR has been calculated as per orders (particularly the orders regarding calculation of AGR as per judgement of Hon¶ble TDSAT) issued by Corporate Office and expense on license fee. and recognized in the said financial year and corresponding liability payable to DOP has been created.22 Not applicable for the unit.

27 Yes.26 Yes. has been properly accounted as paid in advance and at the beginning of the next financial year the same has been recognized as expense on spectrum. 18. Whether all sorts of expenses have been incurred on the basis of approval accorded by competent authority. 18.25 Whether there is no lapse in creating the liability for services availed and material / stores received up to the close of financial year so that prior period booking is totally avoided. recognized and liability has been created.payable to DOT. b) the expenditure on rehabilitation and up gradation works right from the inception to completion and physical retrieval of dismantled materials. From propriety angle checking of the following types expenditure / items shall be carried by the Internal Auditor: a) the expenditure on cable laying contracts right from the inception stage to the final execution.28 Yes.e.29 a) Not applicable. b) Not applicable. has been correctly calculated. Yes. Whether spectrum charges for the 1st quarter of the financial year which is payable in advance i. th on 25 March of previous financial year. by 18. Whether the liability towards License fee. 18. all sorts of expenses have been incurred on the basis of approval accorded by competent authority. expenditure has been incurred against the budget allotment and variation has been covered supplementary allotment. . Whether expenditure has been incurred against the budget allotment and variation has been covered by supplementary allotment. 18. Whether procurement of services and material has been done through tendering system approved by the Management. USO levy & Spectrum charges has been booked to accodes allotted under 120 & 420 schedule and payment to CCA against such liability has been routed through the concerned accodes of 120 & 420 schedules.

capitalization of completed CMTS projects. . disbursement of payment against liability.18.segment expenses. creation of liability for such projects. accounting of issue of such equipment to turn-key project executor and utilization of such equipments in project work by turn-key project executor. accounting of entire turnkey projects. total quantity supplied. Observations and suggestions in this regard will be mentioned in the management summary. inter-segment expense has been properly calculated. f) Not applicable. accounting of other projects of CMTS. accounting of payment against liability accode etc. proof of receipt of stores / material issued by the consignee etc. Whether in respect of traffic taken place during the financial year in question between Basic & CMTS of BSNL and vice versa. d)yes same is followed as per approval e) yes. d) the expense incurred for advertisement / hoarding. accounting of surplus equipment lying with turn-key project executor. f) vouchers pertaining to expenditure incurred on projects. CMTS Check the procurement of equipments for CMTS through tender. it has been properly calculated and recognised as inter. c) Not applicable. accounting of receipt of CMTS such equipment. total payments made. recognized as inter-segment expense in the said financial year and corresponding contra entry has been made in other segment towards segment income. c) supplier¶s bill for supply of material / stores / equipments with reference to total quantity ordered. Yes.1 accounting the net depreciated value to concerned accode in the Books and disposal of such items as per rules. No equipment has been procured during this financial year.30 19 19. e) medical bills involving indoor treatment.

19. creation of liability. 19. 19.8 .7 Prepaid items has been reconciled. Whether Inter-segment expense & income in respect of traffic taken place during the financial year in question between CMTS & Basic of BSNL and vice versa have been correctly calculated. prepaid voucher. CELLONE vouchers printed etc. Check the reconciliation of prepaid items as mentioned Sl. disbursement of payment against liability. Whether IUC recoverable and payable from / to other telecom service providers in respect of CMTS traffic received and transferred from / to other telecom service providers pertaining to the financial year in question has been correctly calculated. 17 above. SIM. Whether Administrative expenditure. 19. Not applicable. are recognised as expense in the accounts of CMTS Segment. reconciliation between income & expense has been made to see that no difference exists between the bookings made to accodes for intersegment transactions by Basic & CMTS unit. All these has been reconciled and found to be correct. are recognised as expense in the accounts of CMTS Segment.6 Yes 19. recognized as inter-segment expense and income in CMTS segment.5 Not applicable. Check the reconciliation of E-pin generated. which is actually related to CMTS Service.4 It is to be done at year end. accounting of payment against liability accode etc Whether pay and allowances of staff & officer who are actually engaged for CMTS work / providing service to CMTS.2 Check the procurement of maintenance services for CMTS through tender for CMTS. 19. 19. recognized in the accounts of said financial year as IUC income & expense and sundry debtors and liability for such income and expense have been created.3 It is to be done at year end.

have been correctly calculated as per terms and conditions of the agreement entered into by BSNL with other operators. Any other job related to CMTS as deemed fit by the Circle authority and as specified in the scope of work. revenue expenditure and income of CMTS from one CMTS unit to another CMTS Unit of same circle or different circle (intra & Inter).9 Check the revenue sharing arrangement with other content providers for VAS on CMTS.ABF accounting.11 Not applicable. Whether reconciliation of such Inter-segment ATD & ATC (both originating & responding) has been done. payment reconciliation. transfer of CMTS income & expenditure by Basic Segment to CMTS segment (both inter & intra). Check the Post paid billing .10 Not applicable. 19. revenue share to be paid to content providers. Check the complete revenue assurance activity for prepaid and post paid subscribers at zonal billing centre. .12 Not applicable. Whether transfer of capital expenditure. share of such revenue recognized by BSNL. transfer of Inter-segment IUC expense & income in between Basic & CMTS (only intra-segment) and transfer of BASIC income & expenditure by CMTS Segment to BASIC segment (both inter & intra) have been accounted and settled through remittance accode allotted by Corporate Office. 19. amount of claims Not applicable. Whether claims for BSNL Towers which have been shared by other operators. bills for such claims have been preferred to other operators.14 Not applicable. liability created for revenue share payable to convent provider. 19.13 Not applicable. (The Internal Auditor of the Circle where the Zonal-billing centre is situated will do this job). 19.19. reconciliation of sundry debtors with general ledger as mentioned at Sl 5 above. 19.

Whether there has been any delay in raising as well as acceptance of ATD & ATC particularly the ATD for transfer of expenditure on completed projects by Project Circles / Installation wing of circle to the consignee circles / units and Not applicable. it is tallied. Whether outstanding claims as per Subledger have been reconciled with amount of such outstanding claims reflected in the General Ledger and there is no difference. the amount of claims has been recognized as income and recovery of claims has been made. Intra & Inter circle Remittance Check whether ATD and ATC has been raised immediately after the remittance transaction (intra circle and inter circle in respect of BASIC & CMTS.1 Whether claims for USO Subsidy for provision of mobile service through USO tower by NE I. 20. and inter-segment) has taken place and the same is reflected in Trial Balance of the month in which the transaction has occurred as well as the same has been uploaded in IBTMS package duly reconciled with booked figure. NE II & J&K circles have been correctly calculated as per agreement with USO Administrator. claims bills have been submitted to CCA. 19. . 20. Yes.15 20 20.have been accounted as income and claims have been recovered from other operators. vouchers and other documents etc have been furnished by the originating units to responding units along with the ATD and ATC Check whether all types of ATD and ATC has been accepted by the responding unit immediately on receipt and accounted the debit or credit in the trial balance as well as the information about acceptance of ATD & ATC has been uploaded in IBTMS package immediately the ATD & ATC have been accepted.3 Not applicable. Whether all the supporting details i.2 Yes.e.

20. such ATD / ATC has been accounted in the trial balance of same month and uploaded to IBTMS Package. it has been correctly deducted and in some cases SHEC & EC has been ignored/ collected at lower rate. 21.2 Yes.what corrective steps have been taken by the Management to avoid the delay completely. Whether units have remitted the service tax collected on account of output service. Whether complete review of all the ATD / ATC which remain to be accepted by the responding unit. 21 21. has been carried out regularly by the originating unit and whether the originating unit has taken steps for getting those pending ATD / ATC accepted by the responding unit. 21. 21. Whether in cases of other items (not covered by Section 40(i)(a)) whether TDS has been correctly deducted and deposited within the due date and there is no case of non-deduction of TDS or less deduction of TDS or delay in depositing TDS recovered or Yes. Payment to Central Excise & other Departments Yes.3 Yes. Whether TDS has correctly been deducted on items covered by Section 40(i)(a) of Income Tax Act and remitted to the tax authorities within due date and there is no case of nondeduction of TDS or less deduction of TDS or delay in depositing TDS recovered or non-remittance of TDS deducted or less remittance of TDS deducted (since in such cases the expenditure will be disallowed). 20.5 Yes.4 Whether in case of transfer of staff ATD/ATC for the outstanding loans and advances (excluding those given by DOT) has been sent along with the LPC.4 There is no such case. to Service Tax Authority within the stipulated dates.1 Whether payment of Service Tax & other Excise Duty has been made through E-payment facility wherever it is mandatory. .

credit for Service Tax on input service has been availed by the unit as per CENVAT credits Rules. 20000/. 20000/.) have been included in the service tax registration certificate.8 Yes. exchanges / BTS / MSC etc. Whether Service Tax Return / input service distribution return / dealership return.10 No.11 Yes.e.7 Yes.6 Yes. Whether ST-3A return has been filed within due date in cases where permission for payment of service tax on output service on provisional basis has been granted by Service Tax authority to BSNL unit. gross amount of claim preferred by BSNL. . inputs has been availed wherever applicable as per CENVAT credits Rules. and TDS returns etc have been filed within due dates. In case of centralized registration of service tax issued by the Commissioner of Central Excise whether all the premises (i. 21. 21. 21. Excise duty / CVD etc on capital goods. 21. Whether the amount of TDS deducted by the other parties from BSNL¶s claim has been properly accounted under relevant account head i. have been booked to income head and the amount of There is no any payment of more than Rs.non-remittance of TDS deducted or less remittance of TDS deducted (since in such cases penalty & interest are charged as well as BSNL has to pay the amount TDS from its own pocket}.has been made in cash. 21. 21.has been made by BSNL unit through cheque only. Whether credit for Service Tax on input service.e. 21.5 Whether each individual payment amounting to more than Rs. Whether TDS certificate in respect of TDS deducted by paying authority of BSNL have been issued promptly within the prescribed time limit. Whether CENVAT credit has been availed only out the credit lying as unutilised at the end of immediate previous month.9 The unit has filed such return.

21. GPF subscription and GPF advance recovered from employees have been paid to CCAs within the due date. Whether credit for excise duty paid on raw material has been availed. The Internal Auditors will also assist the units in maintenance of all documents and registers connected with CENVAT.14 Yes. excise duty payable on finished product. Internal No any information regarding wealth tax is available at the unit. Whether information regarding wealth tax has been sent to Corporate Office. 21. Whether the Units have complied with the provisions of Income Tax Rules / CENVAT Rules / Service Tax etc.13 21.17 Yes. Whether provision for excise duty on finished product lying at stock at the close of the financial year has been made by Telecom Factories.16 Not applicable. administrative charges and employee contribution have been remitted timely to EPFO and monthly returns as well as annual returns have been submitted in time Whether reconciliation of booking under accodes for µService Tax Recoverable¶ and µService Tax Payable¶ has been carried out and no difference exists between two sets of figures. Yes. . Whether monthly pension contribution. They should also impart necessary training to the staff/officers dealing with Service Tax / CENVAT matters. 21. 21. Whether Telecom Factories have correctly accounted the excise duty on raw material purchased. 21.12 TDS has been booked to TDS accode and the total amount of TDS accounted in general ledger has been tallied with the TDS certificates obtained. Whether employer's contribution to EPF. leave salary contribution. it has been done.15 Yes. excise duty payable on scrap. Whether TDS Certificates has been sent to Corporate Accounts Section of Corporate Office timely.18 Yes. 21.

22. Checking of trial balance Whether there is unauthorised accodes in the Trial Balance. which are relevant to such asset accode.2 No such un-authorized accods are used by Unit during the period. . 22. 22. 22. reconciled and set right wherever required. GPF subscription and recovery of advance. 22.3 Whether opening balance intimated by Corporate Office / Circle office has been properly incorporated in the Trial Balance. Pension & leave salary contribution.22 22.7 Not applicable at the unit. 22. Whether in respect of provision for obsolete & unserviceable asset and obsolete & unserviceable inventory reflected under accodes for provision there are booking for obsolete & unserviceable fixed assets and inventory in the accodes which are relevant to Yes.1 Auditors must guide and assets the units of BSNL so the units can avail 100% credit on input service. Whether in respect of any fixed asset reflected in a fixed asset accode is having the booking for accumulated depreciation and depreciation under the accode for accumulated depreciation and depreciation.5 Vouchers are available in support of the booking made in the each accode but detailed records are not available .4 Yes. Whether there is adverse There is no any adverse balance in any accode as balance in any accodes and it is reflected in trial balance and reviewed. Whether detailed records / vouchers in support of the booking made in the each accode as reflected in trial balance are available and reconciliation has been made. employees share of contribution towards EPF and other items has been reconciled with the detailed monthly schedules of above mentioned items.6 It will be done at the year end. Whether reconciliation of the monthly booking in trial balance in respect of loans & advances. whether such adverse balance has been reviewed.

Whether SSAs / Accounting Units of circles / Circle authorities have taken action in the current financial year in respect of all the observations and comments made by the Branch Auditors & Statutory Auditors on the accounts of Circles pertaining to previous financial years(s). carrying out physical verification of assets and inventory. Statutory Auditor and C&AG on the accounts of the Circles pertaining to previous financial year(s). fixed asset register. proper record of physical verification. charging of overhead. Whether SSAs / Accounting units / circle authorities have taken action in the current financial year in respect of other qualifications such as proper maintenance of sub-ledgers. No Internal Auditor can certify the trial balance with the remarks 'that it is subject to qualifications' in their report Whether circles have compiled all the information for disclosures as per Schedule VI requirements Action taken in respect of qualification of Branch & Statutory Auditor & C&AG The internal auditor must go through all the observations and comments of Branch Auditors.9 Not applicable.2 Yes. priced stock ledger. payment of statutory dues within dues dates etc. wrong debit & credit relating to bank transactions.22. excess debit & credit. but the unit has not taken proper action in the current financial year in respect of other qualification such as proper maintenance of fixed assets register. prompt capitalization of completed works. . and rectification / adjustment entries wherever required.8 To certify that the trial balance is supported by the correct schedules. bank reconciliation. have been passed and incorporated in the current financial year accounts to settle concerned qualifications.1 Yes. other register. reconciliation of subledger with general ledgers. and proper records of physical verification. rectification/adjustment entries have been passed and incorporated in the current financial year. valuation of inventory. unlinked debit and credit. 22. carrying out physical verification of assets. creation of proper liability. 23 23. 23.

All Auditors shall attach a management summary to their report. It is annexed in Part -B of Report. to ensure that other firms also complete the work as per appointment letter within the time stipulated and finally act as the interface between branch auditors and BSNL officers.5 Not applicable. In the management summary internal auditors will be required to give detailed comments on the internal control system. We have not received any records relating to the same. to give guidance. Additional Duties of Lead Auditor The additional duties of the lead auditor will be to coordinate the activities of other Internal Audit CA firms.4 We have not received any records relating to the same. has been implemented by the concerned accounting unit within the time frame fixed. 25. Whether action has been by the Circles to set right the discrepancies pointed out by the Audit Committee.23. 23. to have constant interactions with BSNL officers. .3 Whether SSAs / Accounting Units of circles / Circle authorities have taken action in the current financial year in respect of all the observation & comments made by C&AG while certifying the audited annual accounts of previous financial year(s). should be mentioned in column 4. 24. 23. Not applicable. Whether decision taken by the Audit Qualification Reduction Committee. Audit Report & Management Summary Audit report must cover all the items mentioned at Sl 1 to Sl 23 above and pro-active taken by them to set right the defects and shortcomings if any.

GM (CA) .(Arundati Panda) Sr.

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