Audit Observation of Rvnl Bhatapara Site Visited on Dated 23/24.05.2011

AUDIT OBSERVATION OF RVNL BHATAPARA SITE VISITED ON DATED 23/24.05.2011

1. COMPLETE DOCUMENTS ARE NOT COMING TO HO ALONG WITH SUPPLIER’S BILLS LIKE INWARD GATEPASS, MRS, WEIGHMENT SLIPS, QC REPORT AND SUPPLIER’S ORIGINAL CHALLAN DULY RECEIVED BY OUR STAFF etc.BILLS ARE BEING PASSED ON THE BASIS OF MRN SUMMERY AND SUPPLIER’S BILLS ONLY.AS PER COMPANY’S PROCEDURE, ALL THE ORIGINAL DOCUMENTS SHOULD COME TO HO ACCOUNT ALONGWITH SUPPLIER’S BILLS.

2. IN –OUT TIME ARE NOT BEING MAINTAINED PROPERLY FOR PAY ROLL STAFF AND MUSTER ROLL STAFF BECAUSE TIME IS NOT IN ASCENDING ORDER AND MOST OF THE OUT TIME WAS NOT FILLED. SALARIES ARE BEING MADE ALTHOUGH PERSON IS ABSENT. FOR THE MONTH OF MARCH 2011, SOME CASES ARE AS UNDER.

S.N. NAME OF EMPLOYEE PRESENT SALARY MADE ABSENT DAYS FOR DAYS ON 1. MANISH KUMAR 24 26 1 & 16.3.11 2. SADH RAM 29 31 7 & 26.3.11 3. SANKAR 26 27 6.3.11

3. NO AUTHORISATION LETTER FROM PC TO STORE IS GIVEN TO ISSUE THE MATERIAL FROM STORE.DEBIT NOTES ARE BEING RAISED IN THE MONTH END NOT ON REGULAR BASIS.

4. 3000 PCS OF GRSP’S RUBBER PADS WORTH Rs.42000.00 WERE RECEIVED LESS FROM M/S SURYA ALLOY INDUSTRIES PVT LTD.PARTY HAS RAISED THE INVOICE FOR 3000 SETS BUT SUPPLIED THE MATERIAL 3000 PCS VIDE INVOICE No.SAIPL/TD/001/07-08 DATED 11.01.2008 .AS PER COURIER RECEIPT, TOTAL WEIGHT IS MENTION 600 KGS BUT IT SHOULD BE 1200 KGS @ 200 GRAMS PER PADS.DEBIT NOTE FOR 3000 PCS NOT RAISED TILL DATE. 5. 24 PCS OF PRE-CAST GIRDER WERE REJECTED AT SITE DUE TO LACK OF SUPERVISION AND ONE GIRDER COULD NOT CAST DUE FAILOUR OF CONCRETE PUMP.TOTAL 25 GIRDERS WERE REJECTED AT SITE TILL NOW.

6. MOST OF THE LOCAL PURCHASES ARE BEING MADE FROM FIXED VENDORS.MATERIAL ARE COMING WITH OUT PURCHASE ORDER/RATE COMPERISION.PURCHASE ORDER ARE BEING RAISED AFTER RECEIVING THE MATERIAL AT SITE. OWNER OF M/S B.P ENTERPRISES, M/S J.B.AGENCIES AND M/S MAHALAXMI ENTERPRISES IS SAME AND OWNER OF M/S OM INDUSTRIAL CORPORATION & CHHATTISGARH ELECTRIAL IS SAME.MAXIMUM PURCHASE HAS BEEN DONE ONLY FROM THESE SUPPLIERS ONLY.THESE SUPPLIERS ARE SUPPLYING THOSE ITEMS, IN WHICH ITEMS, THEY ARE NOT DEALING.

7. AVERAGE OF HIRING VEHICLES (SUMO/TAVERA/BOLERO) IS SAME FOR AC AND NON-AC VEHICLE i.e.10 KM/LTR BUT IT SHOULD BE 12 KM/LTR FOR NON-AC VEHICLE.WE ARE MAINTAINING THE SAME AVERAGE ON OUR OTHER SITES.WORK ORDER WAS NOT AVAILABLE AT SITE. LOG BOOKS ARE ALSO NOT UPDATED OF VEHICLE.START TIME/CLOSE TIME NOT RECORDED IN LOG BOOKS AND SIGNATURE ARE NOT BEING DONE BY VEHICLE-USING AUTHORITY ON REGULAR BASIS.

8. 50 BAGS OF CEMENT WORTH Rs 11000.00 FOUND SET AT SITE.

9. ISSUE SYSTEM ARE NOT BEING MAITAINED BY STORE.THERE IS NO LIST OF AUTHORISED PERSON IN STORE TO ISSUE THE MATERIAL FROM STORE.MOST OF THE ISSUE SLIPS ARE NOT SIGNED BY THE SECTION INCHARGE/PROJECT INCHARGE AND BY RECEIVER ALSO.

10. WE HAVE RECEIVED (AFTER JOB WORK) 850 PCS OF GLUED INSULATED RAIL JOINTS 60 KG G3L FROM M/S CHINTPURNI ENGG.WORKS (RAILWAY HAS SUPPLIED THE RAIL FOR GLUED JOINT) PERIOD BETWEEN AUGUST 2008 TO APRIL 2009 AND 160 PCS OF 52 KG G3L FROM M/S GANPATI ENTERPRISES AFTER RAILWAY’S INSPECTION.AT THE TIME OF ERRECTION AND RE-INSPECTION OF 405 PCS OF 60 KG & 53 PCS OF 52 KGS JOINTS, 166 PCS OF 60 KG & 8 PCS OF 52 KGS JOINTS FOUND DEFECTIVE.TOTAL DEFECTIVE 174 PCS GLUED JOINTS ARE LYING AT SITE SINCE LONG PERIOD.AS PER INFORMATION PROVIDED BY SITE AND HO PURCHASE,PARTY HAS PRINCIPALLY AGREED TO RECTIFY THE PROBLEM.

11. THERE WAS NO CASH WITH ACCOUNTANT AT SITE.AS PER INFORMATION PROVIDED BY SITE ACCOUNTANT, SOME TIMES HE BORROW THE MONEY FROM SUPPLIERS TO MEET THE EXPENSES AT SITE.

12. AS ON 31.03.2011, Rs.8580268.00 WAS DEBIT BALANCE ON HO SUPPLIERS AND Rs.5103079.00 WAS BALANCE ON LOCAL SUPPLIERS.MAJOR DEBIT BALANCE ARE AS UNDER:-

LOCAL SUPPLIERS

1. M/S SHREE ASHUTOSH IND. Rs.3750543.00

2. M/S UNIVABS SLEEPERS Rs.1056213.00

3. M/S SOMNATH FUELS Rs.25253.00

4. M/S JAI AMBEY INDUSTRIES Rs.29517.00

4. M/S DHARAM FUELS Rs.200639.00

H.O.SUPPLIERS

1. M/S RASHTRIYA ENGG.WORKS Rs.4706442.00 (NOT WORKING SINCE LAST 3 YRS.)

2. M/S SURYA ALLOY INDUSTRIES Rs.767781.00

3. M/S BHARAT WIRE ROPES Rs.223760.00

4. M/S CHANDRA METAL Rs.129910.00

5. M/S MODERN INSULATORS Rs.121933.00

6. M/S GOLDSTONE TELESERVICES Rs.334066.00 7. M/S KUMAR FASTNERS Rs.695680.00

8. M/S STATCON POWER Rs.170755.00

9. M/S LAWRENCE ENTERPRISES Rs.175382.00

10. M/S URBAN ENGG. Rs.799996.00

11. TIRUPATI RAILS Rs.195500.00

12. THE ALUMINIUM INDUSTRIES Rs.156750.00

13. Rs 1188448.00 ARE DEBIT BALANCE ON THOSE PCs WHICH HAS LEFT THE COMPANY.TOTAL DEBIT BALANCE AS ON DATED 31.03.2011 ON PCs WAS Rs.3274000.00 MAJOR DEBIT BALANCE ARE AS UNDER.

1. NELCO LTD 1734419.00

2. HARSHAD THERMIC 273896.00

3. R.K.SOLANKI 96412.00

4. RITES LTD 62834.00

5. THE INDIA THERMIT CORP. 549480.00

6. ASURARI PRASAD 300000.00

7. SATYA PRAKASH SHARMA 36801.00

8. K.VENKATESWARA 47798.00

9. BALVINDER SINGH 30221.00

10. SHUBHAM TRADERS 29389.00

14. PC M/S R.K.SOLANKI WAS WORKING AT SITE FOR OHE WORK AND HE HAS STOPPED THE WORK IN SEPTEMBER 2009.WE HAD ISSUED THE MATERIAL WORTH Rs.1.66 CRORE TO HIM TO EXECUTE THE WORK BUT HE NOT DEPOSITED THE BALANCE MATERIAL IN STORE.STORE DEPARTMENT HAS NOT RAISED THE DEBIT NOTE FOR BALANCE MATERIAL TILL DATE. Mr.S.S. MISHRA (OHE INCHARGE) HAS ASKED TO SUBMIT THE MATERIAL RECONCILIATION STATEMENT.BALANCE MATERIAL WORTH Rs. 8960643.00 IS STILL LYING WITH M/S R.K.SOLANKI. 15. NO SURVEY HAS BEEN CONDUCTED AND NO APPROVAL WAS TAKEN PRIOR TO PROCUREMENT OF HIGH VALUE ITEMS.PROCUREMENT HAD BEEN DONE ON THE BASIS OF BOQ QUANTITY.ACCORDING TO RAILWAY OFFICIAL,’A’ CLASS ITEMS WERE PURCHASED IN STARTING OF THE PROJECT.MOST OF THE ITEMS BECAME OBSOLETE AND LYING IN STORE.

16. Mr.VINAY SRIVASTAVA WHO IS WORKING AS A SUPERVISER (P-WAY) IN OUR COMPANY, ALSO WORKING AS A PC THROUGH M/S SHRUTI CONSTRUCTION AT SITE.

17. THERE IS A DIFFERENCE IN BALLAST QUANTITY BETWEEN STORE RECEIPT QUANTITY AND RECEIPT QUANTITY TAKEN IN MATERIAL RECONCILIATION AND NO SENIOR PERSON WAS AVAILABLE IN STORE TO PROVIDE THE DETAILS/DOCUMENTS.

18. WE AVAILING CENVAT AT THIS PROJECT BUT THERE IS NO ANY DETAIL AT SITE OF CENVAT CLAIMED. AGAINST THESE INVOICES WE HAVE NOT CLAIMED THE CENVAT DUE TO DUPLICATE FOR TRANSPOTER COPY OF INVOICES ARE MISSING.

SL. NO Invoice Invoice Quantity Value Excise . Suppliers Name No. Date (Ltrs) (Rs.) Duty ITEM 1 B.P Enterprises 2354 31-Dec-09 1.00 4800 110.40 Cable Rolls 226547 2 A&B Enterprises 686 12-Oct-10 6.27 19302.21 Steel MT Abuja Cement 3 Limited 16-Mar-08 17.00 77860 7650 Cement 4 Apana Traders 114 11-Dec-07 3.90 16380 1365 Cement Ayush Petrol 5 Pump 3719 8-May-08 28.37 1000 92.20 HSD Bhaskar Power 6 Project 719 10-Sep-09 1.00 218000 15531 Component Ganpati Industrial 7 (p) Ltd. 997 6-Mar-09 30.00 270167 19776 Steel Nos 8 Gaurav Agency 2/8 7-Apr-09 10.07 369575 44785 STEEL MT Indus Tubes 144918 9 Limited 2308 15-Feb-08 11317.61 4 194052.75 STEEL MTRS 10 J.B. Agencies 232 22-May-07 0.52 21199 2817.76 STEEL MT 11 J.B. Agencies 553 28-Jan-08 60.00 42022 5560.3 STEEL MTRS Kishore 12 Machineries 4947 25-Apr-09 1.00 3952 478.90 Component 13 Kishore 5466 24-Jul-09 36.00 3369 408.33 Component Machineries Kishore 14 Machineries 5652 9-Sep-09 1.00 1612 195.34 Component Lafarge India 15 Private Limited 90042396 29-Aug-09 15.00 62999 5665 Cement Lafarge India Pvt 16 Ltd 10018137 6-Jun-10 17.00 73100 8475 Cement Lafarge India Pvt 17 Ltd 10018138 6-Jun-10 17.00 73100 8475 Cement Lafarge India Pvt 18 Ltd 10019569 23-Jun-10 17.00 73100 8475 Cement Lawrence 19 Enterprises 23-Dec-09 6330 169300 15237 Steel Nos Satyam Sales & 100024 20 Suppliers 61 27-Mar-08 20.00 0 120481.73 STEEL MT Shiv Ganga 21 Enterprises 102 29-Feb-08 13.38 518232 70501.24 STEEL MT Shiv Ganga 22 Enterprises 115 4-Apr-07 0.43 15015 1961.04 STEEL MT