Audit Report (Q1 2016)

INTERNAL AUDIT REPORT 

FIRST QUARTER, 2016 

ONEIC 

(Strictly Private & Confidential) 

This report has been prepared by the Internal Audit Unit of Oman National Engineering & Investment Co. 

(SAOG). This report is provided on the basis that it is for the information of the Audit Committee, the 

Board of Directors and the Chief Executive Officer of ONEIC only.

20 th April, 2016 

The Chairman/ Members 

Board Audit Committee 

Oman National Engineering & Investment Co. (S.A.O.G) 

Muscat, 

Sultanate of Oman 

Dear Sir(s), 

Greetings! 

Please find enclosed herewith the Internal Audit Report (1 st 

kind perusal. 

Quarter, 2016) for your 

I would welcome any comments/ recommendations which you may have and would 

be pleased to discuss them during the forthcoming Board Audit Committee meeting. 

Assuring you of my continuous support and service to the Board, and to the 

organization, at all times. 

Yours sincerely, 

Syed Abbas Akhtar 

Head -Internal Audit Unit 

CC: Eng. M. Amin Mustafa Al Saleh 

Chief Executive Officer

Oman National Engineering & Investment Co. (SAOG) 

Internal Audit Report (1 st Quarter, 2016) 

Apr-2016 

TABLE OF CONTENTS 

PageNo. 

Audit Observations which have been complied with (CLOSED) 4 - 6 

Implementation in Process (PENDING AUDIT OBSERVATIONS) 7 - 12 

Current Quarter Audit Observations:- 

1) Physical Verification of the Vehicles 13 

2) Unassigned shares 14 

3) Delay in preparing GRV after delivery of vehicle 15 

4) Insurance coverage for disposed vehicles 16 

5) Vehicles lying at Ghala Workshop 17 

6) Disposal of Vehicles 18 - 19 

7) Fuel Expense review 20 - 21 

8) Credit period on Marketing sales 22 

9) Account Receivables Write Offs 23 

Annexures:- 

a) Annexure – 1 - Delay in GRV after delivery from dealer 24 

b) Annexure – 2 - Insurance renewed for disposed vehicles 25 

c) Annexure – 3 - Insurance renewed for vehicles which 

cannot be repaired 26 

d) Annexure – 4 - Details of accident vehicles available 

at Ghala workshop 27 

e) Annexure – 5 - Details of idle vehicles lying at workshop 28 

f) Annexure – 6 - Fuel expenses details (Jan – Sept 2015) 29 

g) Annexure – 7 - Fuel Expense for the year 2015 30 - 31 

h) Annexure – 8 – Delay in receipt of payment for Mktg sales 32 

i) Annexure – 9 - Receivable Ageing Analysis 33 

j) Annexure – 10 – Collection Analysis 34 

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STATUS OF PREVIOUS AUDIT OBSERVATIONS 

Issues High Medium Low Total 

Total 6 19 8 33 

Closed 1 6 4 11 

Pending 5 13 4 22 

Pending 

Closed 

4 

13 

5 

High 

Medium 

Low 

4 

1 

6 

High 

Medium 

Low 

Status of Old Audit Observations 

(TOTAL ISSUES = 79, CLOSED = 78, PENDING = 1) 

Status of I.T Review Issues 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

8 8 

36 36 

35 34 

1 

Low 

Medium 

High 

30 

25 

20 

15 

10 

5 

0 

4 

5 

16 

3 

3 

4 

1 

2 

12 

Low 

Medium 

High 

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Audit Observations which have been complied with (CLOSED) 

S.No Recommendations Relevant Point 

Reference 

1 During the course of our audit of recovery of projects Q4, 2015 Point 

outstanding, we noticed the following:- 

No. 1 

a) There is no clear procedure for recovery of the Projects 

Outstanding. For example:- 

• There is no time frame fixed for recovery staff 

• No clarity on the staff designated for follow-up 

• No clarity as to the stage it will be transferred to legal 

b) Presently the primary responsibility of recovery is with the 

Project Managers (in case of projects). 

The recovery department is only assisting the project 

managers in recovery. 

c) The composition of the recovery team could not be shown to 

us – The Project Manager alone is handling the recovery for 

his project. 

d) We could not find any recovery targets which are given to 

the person incharge for the recovery. 

In the absence of monthly recovery targets, it is difficult to 

judge the performance of the individual involved in 

recovery 

e) No evidence could be found on any action that is taken for 

non recovery of dues. 

No details could be provided for any outstanding being 

transferred to Legal Department for action 

2 As per clause 2.2.4 of Procurement Policy, “any purchases 

above RO 20,000/- have to be made through the Tendering 

process as per the Company’s Tendering Policies and 

Procedures Manual”. 

As per the current practice being followed in the Company, 

there is no Tendering Committee. Every purchase is going 

through the Procurement Committee and subsequently to the 

Executive Committee if required. 

3 The following are some of the weaknesses at the time of 

Project Execution:- 

a) No KPIs are established for the projects. 

b) In the evaluated projects, Project Managers were not aware 

of the project cost and thus it was not possible to monitor the 

expenses. 

c) There is a scope for improvement as far as risk analysis of 

the project is concerned 

d) There is no review of the cost incurred and quantity 

consumed on the completed projects to avoid the same 

mistake in the future. 

e) Clear procedure for issuance of variation orders not 

available. 

f) Unavailability of experienced Project Managers 

4 During our audit, we reviewed the follow up recovery 

documents. We found many invoices where the amounts were 

to be collected by 20.05.2015, but are still not collected till 

01.10.2015. 

Q2, 2014, 

Point No. 2 

Q3, 2014 Point 

No. 6 

Q4, 2015, 

Point No. 3 

Priority 

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As per the said follow-up document, the recovery staff was 

asked to take action within a week or the amount was to be 

recovered within 15 days time. 

However, no evidence could be found of the follow-up action 

for non-recovery. 

5 We have observed that the amount budgeted for the training 

activities, has not been fully utilized. The training budget 

utilization is as under:- 

Budget Actual % used 

2012 212,294 29,107 13.71% 

2013 143,185 67,661 47.25% 

2014 208,960 76,447 36.58% 

6 As per the ONTI Business Plan for 2014, the budgeted revenue 

and expenditure vs actual for 2014 is as under:- 

Budgeted Actuals 

Income 395,000 235,565 

Expenses 264,300 287,454 

The actual income is 40% less than the budgeted figures 

whereas the actual expenses are 9% more than the budgeted 

expenditure. 

There are no documented targets/ policy & procedures for the 

marketing team in ONTI for the achievement of above 

budgeted income. 

No separate website for ONTI to market the courses. The 

existing ONEIC website also does not provide information on 

offered courses. 

7 While going through the tender abstract for Job No. 640, we 

observed that the Project Manager’s salary has not been 

considered in the tender. 

It was also observed that a total amount of RO 7117.566 has 

been booked as Project Manager’s salary on Job No. 640 

from Jul 2014 to Feb 2015, which was not considered in the 

Tender document. 

8 We observed that in the case of recoveries being done by the 

Recovery Department regarding Project receivables, no target 

(either fortnightly or monthly) is being set for the staff. 

9 As per HR Policy No. 2, Clause 3.1.9, it is the company’s policy 

not to offer any personal loan to its employees. 

However, we have noted cases in which personal loan has 

been provided to the staff during the years 2014-2015 

10 While going through the Interview Assessment Form, we 

observed that equal weight age has been given to all the 

parameters. For eg, equal weight age has been given to Job 

Knowledge and Business & Industry Understanding as has been 

given to Attitude, Poise and Energy levels. 

Therefore, a candidate who scores high on attitude poise and 

energy stands an equal chance to be selected against a 

candidate who scores high on Job Knowledge and Business & 

Industry Understanding and low on energy level and poise. 

11 While studying the tender for Job No. 642, we observed that 

some of the items have been quoted without inviting quotations 

to know the current price. 

- 5 - 

Q4, 2015, 

Point No. 4 

Q4, 2015, 

Point No. 5 

Q4, 2015, 

Point No. 8 


No. 10 


No. 8 


No. 12 


No. 14 

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For example, 2 transformers have been quoted in the tender 

at RO 25,000 each and no quotation is available to show 

where this price is arrived from. 

Similarly, 6 nos. 11 KV Auto Recloser have been quoted at RO 

5,500 each based on an LPO issued on 16.01.2013 (i.e. 

almost 2 years before the date of tender). 

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S. 

No 

IMPLEMENTATION IN PROCESS (PENDING AUDIT OBSERVATIONS) 

Recommendations 

1 We noted that the company is penalized by the 

electricity companies for non-compliance as per 

clauses of the contracts every month. There are 

penalties for delay in billing, wrong calculation and 

lower standard of performance rate which are 

beingcharged. 

We recommend that company enforce strict 

measures by defining processes in place to ensure 

effective billing and compliance with all provisions 

of the said contracts and avoid penalty. 

2 Negative Operational Cash Flow signifies a 

collections problem and also indicates that the 

current operational revenue is not sufficient to meet 

the current operational expenses of the Company. 

During the third quarter (July – Sept 2013), the 

company has a negative cash flow (from operations) 

of RO 3,396,059. 

As highlighted earlier also (Audit Report Q3, 2011, 

Point No. 4.1), this issue needs to be seriously 

addressed. 

3 We have noticed that the Electricity companies 

(Majan, Mazoon & RAECO) do not pay the full 

amount invoiced to them. 

As per the contract, they are entitled to make 

adjustments for non performance. 

Over the last 2 years (2013 & 2014), the 

deductions adds up to the following:- 

From Majan = RO 286,481.826 

From Mazoon = RO 543,847.870 

From RAECO = RO 72,693.915 

No explanation has been sought from them to 

ascertain and verify the clause under which it has 

been deducted. 

4 We observed that there is a difference in the 

value of stock between stock register and general 

ledger (as on 30.09.2014):- 

Stock Register = RO 1,673,217.710 

G. Ledger = RO 776,780.986 

5 Clause 4.6 of the Billing Policy states that “If the 

consumer fails in making payment within 15 days of 

the notice period, the branch In-charge shall instruct 

the concerned staff at the branch to commence the 

disconnection process” 

We observed that in case of Dhofar region, the 

above disconnection process is not being followed 

for Govt accounts. 

Relevant 

Point 

Reference 

Q1 & Q2, 

2012 

Point No 

3.3 

Q3, 2013, 

Point (a) 

Q4, 2014 

Point No. 

1 

Q4, 2014 

Point No. 

2 

Q4, 2015 

Point No. 

2 

Present status 

CEO has sent a 

letter to RAECO 

in April 2016 to 

resolve this issue 

at the earliest. 

The cash flow 

from operating 

activities as on 

31.03.2016 is 

negative at RO 

6.207 million. 

A dedicated 

staff to look into 

these matters is 

under process of 

being 

appointed. 

CEO has 

instructed the 

concerned 

departments to 

update the 

figures. 

Management is 

looking at 

alternate ways 

to handle this. 

Priority 

H 

H 

H 

H 

H 

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6 We observed conflict in the below mentioned 

clauses: 

Clause 2.2.4 (Policy number 2, page 7) of the 

Procurement policy states that “Any purchases 

above RO 20,000/- have to be made through the 

Tendering process as per the Company’s Tendering 

Policies and Procedures Manual. 

whereas Clause 2.1 (policy number 2,page 8) of the 

Procurement Tendering policy states that “It is the 

policy of the Company that any purchase of a value 

exceeding RO 15,000/- should be made through a 

tendering process” 

Q4, 2012 

Point No. 

3.3 

To be taken for 

BOD approval 

in the 

forthcoming 

meeting 

M 

7 We observed that the same item code is used for 

different items/ specification. 

For eg: Item code 2443 is used for cable tie 

6”,cable tie 8”,cable tie 10” and cable tie 12” also. 

To have a better internal control, it is important that 

each item is assigned a unique and separate item 

code. 

8 We have observed that No Limit has been fixed for 

the SMART cards issued to Staff members for 

Official work. The SMART card is reloaded as and 

when the request is received. 

Standard practice followed for SMART card is that 

a maximum amount is decided on the basis of the 

frequency and amount of day to day expenses from 

the card. 

Since a limit is not set and reloading done based on 

request, reconciliation of previous request and bills is 

not done while reloading. 

We also noted that PAID stamp was not put on 

SMART card slips. 

9 While going through the Retention on Project 

Contracts, we observed that there are two cases in 

which the retention amount has been outstanding for 

more than 7 years. The two cases we observed are:- 

Job No. 455/MEW/2005 - Retention amount: RO 

18,469.091 

Job No. 464/OCC/2006 - Retention amount: RO 

10,768.250 

10 Following are our observations in Tendering cost 

estimation :- 

a) Cost under-estimation by Tendering. For 

example, in case of Tender No. 51/2012, 

55/2012, 56/2012 & 113/2012, the salary 

of Project Manager and Engineer has not been 

taken into consideration. 

b) The basis of arriving at a figure which is filled 

in the tender could not be explained to us. Also, 

the supporting papers were not sufficient to 

show the same. (e.g tender nos. 56/2012, 

55/2012, 113/2012, 138/2013, 51/2012) 

Q4, 2012 

Point No. 

3.6 

Q3, 2013 

Point No. 

(g) 

Q1, 2014 

Point No. 

8 

Q3, 2014 

Point No. 

5 

Coding of store 

items is still 

pending. 

HR will set up 

codes to identify 

loading with the 

respective 

expenses. 

Invoices have 

been raised and 

the amount is 

due to be 

received soon. 

Analysis 

between 

tendering cost 

and actual cost 

has been 

initiated and will 

be reviewed in 

the next quarter. 

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c) The basis of Capital Expenditure on Portacabin, 

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Vehicles, Computer, and Furniture & Fixture is 

not available (Tender 79/2013) 

d) No analysis is done of the actual cost vs 

tender cost after the project has been 

completed. 

e) Preferred supplier of the client is often not 

known at the tendering stage. Sometimes the 

client insists on a particular supplier at a later 

stage. 

11 We observed that the amount collected in bank on 

account of electricity and water from the 

consumers have not been credited to the 

respective consumers account and is lying 

unallocated. 

During the past 2 years we received RO 

405,233.564 from different consumers which are 

still unallocated. The breakup of this amount is as 

follows:- 

Q4, 2014 

Point No. 

6 

The status of 

unallocated 

amount is as 

follows:- 

‘12 = 55,879 

‘13 = 174,001 

’14 = 215,657 

(full year 2014) 

M 

For 2012 = 79,682.187 

For 2013 = 194,618.736 

For 2014 (first 6 mnths) = 130,932.641 

----------------- 

405,233.564 

========= 

The total unallocated amount as on 30-11-2014 

was RO 906,136/- 

12 On analyzing the old outstanding for projects and 

billing, we have noticed that there is a substantial 

amount which is outstanding for more than 5 

years. This amount is as follows:- 

A)Projects: 166,000.000 

B)Billing: 1,024,000.000 

No review of this amount has been done to 

identify the amount recoverable/ not recoverable. 

Q4, 2014 

Point No. 

7 

Team has been 

formed to 

ascertain 

demolished/un 

recoverable 

amount. 

M 

13 The Company Policy was framed in Oct 2011 and 

implemented after the same was approved by the 

BOD. After that, many amendments have been 

made in the Policy with the approval of the BOD 

taking into account the changing needs of the 

company. 

However, the said amendments are yet to be 

incorporated in the Company Policy and a 

revised/ updated version is yet to be compiled. 

14 As per HR Policy No. 1, Clause 3, the HR 

Department is required to conduct an annual 

manpower inventory audit in the month of 

December to identify the current skill level, profile, 

number of expatriates and Omanis, approved 

positions not filled in and attrition level during the 

Q2, 2015, 

Point No. 

7 

Q4, 2015, 

Point No. 

6 

HR is waiting for 

the policy 

updates of other 

departments to 

update the 

policy. 

The process of 

annual 

manpower 

inventory audit 

has been 

initiated by the 

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year. We could not find any document showing 

that this is being done. 

Also, as per HR Policy No. 1, the HR Department is 

required to prepare a Corporate Manpower Plan 

in consultation with the HODs. This plan has to 

contain the details of all the manpower 

requirements for the vacant, new positions and the 

temporary positions alongwith the cost of each 

position. The plan needs to be reviewed by the 

HRC before it is submitted for CEOs approval. 

This plan could not be shown to us. 

15 As per HR Policy No. 2, Clause 3, HR has to 

develop a Recruitment Action Plan specifying the 

various methods that shall be adopted for the 

recruitment process alongwith the time frame to 

complete all the recruitments and submit the same 

for the CEO’s approval through HRC. This could 

not be shown to us. 

Due to this, it is very difficult to analyse the 

performance of the HR Department as far as 

recruitment process is concerned. 

Q4, 2015, 

Point No. 

7 

HR department 

and will be 

reviewed during 

HR Audit. 

HR department 

is developing a 

Recruitment 

Action Plan. It 

will be reviewed 

during HR Audit. 

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16 As on 21.01.2016, the number of legal cases in 

process and the current outstanding in Dhofar 

region is as follows:- 

Acct Amt 

Water 2646 878,912.710 

Elec 983 288,318.420 

The total outstanding of Dhofar region as on 

31.12.2015 is as follows:- 

Water RO 2,796,573.000 

Elec RO 3,010,583.000 

Thus, it can be seen that only 31% in water and 

9.5% in Electricity have been taken up for legal 

action. 

17 We observed that presently there is no clause in 

the Billing Policy regarding the procedure to be 

followed for adjustments made in the daily cash 

register. 

In the absence of such a clause, there are no set 

guidelines for the staff for handling of such issues. 

For eg. The adjustments relate to the following 

issues:- 

• Refund made to consumers 

• Amount deposited in one account and later 

transferred to other account on consumer’s 

request 

• Bills scanned and amount not paid by the 

consumer etc. 

18 During our visit to Salalah branch, we observed 

that the daily cash collection of the branches is not 

being timely updated. 

On an average the updation of a particular date 

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Q4, 2015, 

Point No. 

9 

Q4, 2015, 

Point No. 

10 

Q4, 2015, 

Point No. 

11 

Legal Advisor & 

DHOB to 

accompany 

Internal Audit 

team to Salalah 

to get the 

updated status. 

Billing is 

preparing a 

policy for the 

same and will 

be submitted to 

BOD for 

approval. 

Will be 

reviewed by the 

Internal Audit 

team during 

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is completed in 5 – 11 days. As a consequence:- 

• The total cash collection for a particular date is 

known only after approx 8 days 

• The consumer account is not updated on time 

• Any adjustments entry in the consumer account is 

also not timely updated. 

19 In case of Staff No. 8774, Sick Leave & Leave 

Without Pay entered for days which were official 

holidays:- 

Type of Leave Date Day 

Sick Leave 01.02.2013 Friday 


Without Pay 02.05.2013 Holiday 

Without Pay 03.05.2013 Friday 


In case of Staff No. 10270:- 

Type of Leave Date Day 

Without Pay 01.06.2013 Saturday 

In case of Staff No. 10094, two types of leave have 

been entered for the same days:- 

Type of Leave Date 

Marriage Leave 01.06.13 to 03.06.13 

Unpaid Leave 01.06.13 to 03.06.13 

20 We visited the Mavellah stores on 31.12.2014 

and observed the following:- 

• There is no independent check of material 

received thorough Transfer note. For example, 

there is no way to check that all the material 

received through transfer has been entered in 

the system. 

• There is no serial number on the Material 

Tracking Form (MTF) 

• While filling the MTF, item code is not 

mentioned 

• Items in the store are kept according to Job 

number. So, a particular item will be spread 

over a number of locations in the store which 

makes it difficult to count 

• Only one file is being maintained for material 

received and material issued from the stores 

• Same material has several items codes. For 

example a junction box has three item codes 

eg. Junction box is kept under item nos. 753, 

3630, 3631, 3599, 3629, 3603, 3633, 3632 

& 3597 

• Different items have same item codes. For 

example, pipes of various widths have been 

categorized under one item code. 

• Recording of scrap received from different 

sites is at the sole discretion of the stores in 

charge. 

He maintains a excel sheet to record it. 

There is no way to check whether he has 

Q3, 2013 

Point No. 

(h) 2 

Q4, 2014 

Point No. 

8 

Salalah visit. 

CEO has 

instructed Sr. 

Manager (IT) to 

address this 

issue. 

Visited the store 

on 18.04.16. 

Though 

improvements 

are there, but 

the following still 

remains:- 

Serial number on 

MTF being 

entered 

manually and is 

not auto 

generated. 

A standarised 

format for MTF 

is not being used 

in some cases. 

The identification 

of an item as 

scrap is at the 

sole discretion of 

the store 

incharge. 

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recorded all the scrap received through different 

sites. 

21 Presently, no record is being maintained of the 

PDC cheques received by the company. Currently 

there is no system to check whether all PDCs 

received have been deposited on time or not. 

22 As per HR Policy No. 3, Clause 3.3.3, for those 

positions which require assessing the candidate’s 

skills and abilities, the candidate’s shall undergo a 

written test. As per the policy, HRC has to review 

the results of the test before recommending the 

candidate for appointment to the CEO. We 

observed that the above is not being followed. 

Also, the policy is silent as far as selection of 

candidate based on his marks obtained in the 

written test is concerned. For eg, Staff No. 11282 

scored 48/100 and Staff No. 11635 scored 

85/100 in the written test and both were 

selected. 

Q1, 2015 

Point No. 

6 

Q4, 2015 

Point No. 

13 

Ticket No. 3635 

is pending with 

IT. 

HR is reviewing 

this. 

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CURRENT QUARTER AUDIT OBSERVATIONS 

S.No Observation & Impact Recommendation Priority 

1 Physical Verification of the Vehicle:- 

On our review of physical verification of Physical verification of vehicles on 

H 

vehicles process, it has been observed that yearly basis should be implemented 

there is no yearly verification of vehicles. and the follow-up action should be 

The last physical verification of vehicles has made for corrective action 

been carried out in December 2013. 

No physical verification has been carried The vehicles physically available but 

out in the last two and half years. 

not in running condition must be 

Further on our review of last physical disposed off in accordance with 

verification report, it has been observed company policy. 

that the vehicles have been physically 

verified as part of normal fixed assets 

verification. Considering the value of 

investment in vehicles, there should be a 

separate periodical vehicle verification 

process to ensure that the vehicle is 

physically available and maintained in 

good running condition. 

Impact:- 

• Non adherence to company policy 

Management’s Response:- 

HR:- 

We planned yearly twice Transport team visit each every branch for the physical verification of vehicles. 

Finance:- 

Physical verification of all assets being done every 2 years as per company policy. We shall be doing it in 

the next two weeks. 

Internal Audit Response:- 

As per Finance & Accounts Policy No. 1, Clause 2.2, the physical verification of the vehicles is done once in 

every two years. 

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2 Unassigned shares:- 

As per the latest Accounts for the period 

Unassigned shares to be allocated to 

the respective share holders so that the 

M 

ended 31.03.2016, the Company has a total number of shares as per the MSM 

paid-up Share Capital of RO 10,000,000 records matches with the company’s 

divided into 100,000,000 shares of 100 records. 

baiza each. 

However, on going through the list of 

shareholders as per MSM, we find that the 

total Share Capital has been mentioned as 

RO 9,999,976.100 and the total number of 

shares has been mentioned as 99,999,761, 

There is a shortage of 239 shares which 

are not registered in any name and are 

unassigned. 

Impact:- 

MSM & Company records do not match. 


No response received from the Management. 


Though there is no major financial impact, but the number of shares listed on MSM does not tally with 

the share capital of the company. However, the Legal Advisor has verbally agreed to take up the matter 

with MSM. 

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3 Delay in preparing GRV after delivery of 

the Vehicle:- 

Internal control mechanism should be M 

On our review of system records for more stringent to ensure that the GRV is 

capitalization of vehicles from 2006, it has prepared and vehicle is capitalized 

been noted that 24 instances of delay of within minimum days after the receipt of 

more than 100 days in making GRV from the vehicle. 

the date of the delivery. Out of total 24 

instances 2 cases are delayed over 300 The vehicle handover to the user 

days. As per the established process, the department should be made through 

vehicle shall be handed over to the user system controls. 

department after GRV is made in the 

system. 

On our verification of documents at Logistic 

department, it has been observed that 

there is no system GRV option to the logistic 

department. The GRV at logistic 

department is made manually in the book 

and follows manual serial numbering. 

Further it has been noticed that the date 

mentioned in the manual GRV document is 

not the date of actual receipt of the 

vehicle. The date mentioned on the manual 

GRV document is the date of original order 

placed to the supplier which makes the 

process more cumbersome that the actual 

delay is not possible to identify. The details 

of the instances with delay in GRV as per 

system records have been given as 

Annexure 1 

Impact:- 

• Delay in preparing GRV affects 

capitalization of the vehicle and 

charging of the depreciation 


HR:- 

GRV it is under procurement department, We recommend GRV it is to be control in the Vehicle Transport 

department so that delay and affects capitalization of the vehicles and charging of the depreciation can 

be stop in future. 

Finance:- 

Finance is involved in process of journalisation and issuance, we process the same as soon as we get the 

documents. 

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4 Insurance coverage for disposed 

Vehicles:- 

A detailed reconciliation should be 

M 

On our review of the insured vehicles as carried out along with physical 

per the details provided by the HR verification to make the master list of 

department, following irregularities have vehicles actually exist to ensure the 

been observed. 

correctness of the insurance cover. 

Noted 3 instances of vehicles insured while 

those were disposed off as per the 

disposal order document raised in the 

system. One instance is disposed off in the 

year 2010, however the same has valid 

registration for the 2013-2014. The details 

of the instance have been provided as 

Annexure 2 

Insurance has been renewed for 8 vehicles 

those are beyond economical repair and 

physically available Ghala workshop. On 

our direct enquiry to the workshop in 

charge, it has been explained that those 

vehicles are to be disposed off and cannot 

be repaired economically. The details of 

the vehicles have been given as Annexure 

3 

Impact:- 

• Additional cost of insurance to the extent 

of insurance for vehicles not physically 

available 

• Additional cost of insurance for vehicles 

that cannot be economically repaired 


HR:- 

We strongly recommended to implement company policy with complete rules and regulations regarding 

vehicles disposed 

Finance:- 

3(A) Vehicle Vehicle Vehicle Purchase COMMENTS 

2827/DS 

TOYOTA HILUX D/C 

PICKUP 

2002 8000.000 NOT INSURED 

1129/WK 

HYUNDAI COUNTY 

BUS 

2001 9700.000 NOT INSURED 

2826/DS 


Money for insurance on hold, as 

2002 8000.000 

PICKUP 

wrongly issued policy. 

Vehicles with valid registration should have insurance, else fine will be imposed. 

3(B) 


Supporting papers could not be provided by Finance to justify their statement in 3 (A). 

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5 Vehicles lying at Ghala workshop:- 

On our visit to Ghala workshop to A detailed standard operating 

physically review the status of the vehicles procedure to be implemented to give 

M 

available at the workshop as on the guidelines to handles such issues and 

brought to our notice. 

30.09.2015, the following issues have been 

periodical basis. 

all exceptions must be reported on 

‣ There are eight vehicles lying in the 

yard as total loss vehicle after the accident. 

These vehicles have been lying for years 

though the actual date is not available as 

per the workshop personnel. The details of 

the insurance claim and the status of the 

recovery are not available. The details of 

the vehicles have been provided as 

Annexure 4. However during the 

finalization of the audit report, the 

concerned personnel from the logistic 

department has made necessary follow ups 

with the insurance companies and other 

departments to complete the formalities to 

recover the claim of OMR 38,512. 

Necessary system modification must be 

made to update the status of the 

vehicles in the system such as vehicle at 

workshop but not in use, vehicles cannot 

be used and ready for disposal, 

Vehicles under accident and total loss 

etc. This system modification will help to 

make the insurance renewal for the 

vehicles in use. 

‣ The insurance premium also paid 

for all the total loss vehicles though which is 

quite sure that these vehicles cannot be 

used anymore. 

There are 12 vehicles in working conditions 

returned from various sites as not required 

for the use are available in the workshop. 

However these vehicles have not been 

allotted to any station. The details of the 

vehicles have been provided as Annexure 

5 

Impact:- 

• Accident vehicles lying for years without 

any action on insurance claim follow up 

and disposal shall amount to the loss to 

the company to the extent of the 

possible recovery 

• Loss to the extent of insurance cost 

incurred for the accident vehicles. 


HR:- 

All the 8 No’s Vehicles auction and received credit note. Already this 12 Vehicles transferred to different 

sites. 

Finance:- 

• Logistics department is taking care of above points. 

- 17 -





6 Disposal of Vehicles:- 

On our review of the existing vehicle A third party certification on vehicle 

disposal process, we have observed status may be obtained before the 

M 

following process weaknesses in the system. disposal of the vehicle 

‣ As per the existing practice, the 

vehicles may be disposed after 6 years of 

use with the recommendation of the 

workshop in charge as the vehicle is beyond 

A written policy duly approved by the 

Board must be in place to provide 

detail guidelines on the disposal of 

economical repair. However there is no vehicles. 

policy of getting a third party certification 

on the vehicle status to decide the vehicle is 

beyond economical repair and the vehicle 

has to be disposed off. 

‣ The disposal approval in the 

system is with the Finance department and 

there is no system of workflow document 

approval by Logistic and Legal. In short, a 

vehicle may be written off in the system by 

the finance department without getting any 

system approval from any other 

departments. 

‣ On our review vehicle disposal 

documents since 2013, it has been 

observed that the Company follows the 

practice of vehicle disposal to staff at a 

rate book value plus 10%. However there 

is no written approved policy to support the 

practice followed. 

‣ No records of vehicle disposal to 

the staff for the previous period have been 

provided to check the number of 

procurement made by each staff for a 

particular period. As a matter of fairness 

the purchase option may be exercised by 

any of the company staff with equal 

privilege. 

‣ As per the process explained by 

the logistic department, the vehicles ready 

for the disposal shall be finalized by the 

logistic department and displayed in the 

notice board for staff sale. The staff may 

select the vehicle from the details provided 

in the list and request for the purchase. 

However from the review of disposal 

records, there is no such reference made in 

the staff request letter and the request 

have been made directly to the CEO office. 

All the staff request should have the 

reference number of the logistic 

departments vehicle disposal 

advertisement. 

‣ The open auction is carried out 

Ghala workshop under the supervision of 

- 18 -




representatives from various departments. 

However there is no summary report with 

following details to ensure the compliance 

of the company policy. 

o The details of the vehicle available 

for the auction. 

o The details of public 

advertisements. 

o The details of the representatives 

from various departments present with their 

signature. 

o The last three prices quoted from 

the highest. 

The details of the buyer and the final price. 

Impact:- 

• Vehicle disposal without an external 

report on status of the vehicle may cause 

a biased vehicle disposal for personal 

favour 

• Adequate internal control measures 

cannot be implemented in the absence 

of a written policy on vehicle disposal 

duly approved by the BOD 


HR:- 

Noted, good point, however we think now it cost, as some vehicles requires towing charges up to their 

inspection yard in addition to certification charges, to have evaluated by the third party, also it will delay 

the actions. 

Finance:- 

The process followed is as per company policy. Finance looks after disposals and ensures proper 

documentation. All disposals are made through proper approvals. 

- 19 -





7 Fuel expense review:- 

We have observed following 

irregularities; 

M 

‣ There is no monthly reporting of the 

mileage status. Lack of proper reporting of 

the mileage and purpose of the use may 

cause unauthorized use and additional fuel 

expenses for the purpose not for the 

business. 

‣ On our review of monthly fuel 

expenses we have identified 16 vehicles 

with abnormal fuel consumption pattern. 

The one to be noted separately is the card 

number 24610200470000413 issued to a 

double cabin pickup has been used for 

OMR.584.111 and OMR. 584.768 in the 

months of August and September 2015. 

The details of the vehicles have been 

provided as Annexure 6 

‣ During our audit, the logistic 

department had replied that the invoice 

values for the above vehicle are correct, 

however the procurement was under two 

fuel cards. One set of procurement through 

the card allotted to the vehicle and the 

balance through the open fuel card. The 

open fuel card consumption against any 

vehicle shall affect the internal control as 

the consumption vs mileage analysis is not 

possible. 

‣ There is no periodical consumption 

report for the open fuel card to monitor the 

consumption and procurement through the 

open cards. 

‣ On our review of monthly fuel 

expenses, we have observed that around 

32 fuel cards have not been used in last 9 

months. The monthly charges of 300 baiza 

are being charged by the company. The 

details of the instances have been given as 

Annexure 7 

Impact:- 

• Revenue loss to the company 

• Absence of proper internal controls of 

the monthly consumption and mileage 

reporting of the open fuel cards leading 

to possibility of unauthorized use of the 

card for purpose other than official 

work. 

A monthly report from the department 

must be implemented with details of 

kilometer driven, fuel filled and the 

confirmation that the vehicle has been 

used for the business purpose. This 

statement should be prepared for open 

cards as well as dedicated cards 

A detailed fuel expense review must be 

carried out and the responsibility for all 

the irregularity must be fixed and 

necessary corrective action such as 

recovery of loss to the company must 

be made from those who are 

responsible 

- 20 -





HR:- 

We have planned and prepared to monitor every vehicle fuel expensive report in monthly and as when 

required we will inform to concerned department details report for their routine bussing daily wise. 

Fuel cards cancellation respectively 

IVMS already we installed some of the vehicles and also we going to installed soon some more vehicles 

which is needed to monitor tracking the vehicles not to misuse. 

Finance:- 

Logistics department is taking care of this issue. 

- 21 -





8 Credit period on Marketing sales:- 

We observed that there is no policy 

defining the credit period to be allowed to 

customers. 

M 

On our review of the credit period allowed 

on Marketing sales, we found many 

instances where the credit period allowed 

to customers was in the range of 0 to 120 

days 

However, the payment on these sales has 

been received in a span of 25 to 300 

days. (Annexure-8). 

Such long credit periods allowed to 

customers negatively affects the working 

capital of the company. 

Impact:- 

• Negatively affecting the working capital 

of the company 


A Credit Policy needs to be prepared 

which provides guidelines for fixing 

credit period. 

Credit period allowed to the customers, 

needs to be negotiated keeping in mind 

the credit period availed from the 

suppliers so that the company’s funds 

are not blocked. 

From finance prospective, we recommend minimum credit period, or at least back to back so that ONEIC 

cash flow does not get affected. 

On recommendation of Head of Marketing, credit period are approved on case to case basis by finance 

and CEO based on credibility of customer, business quantum and relationship with customer to make bid 

competitive. 

Head of Marketing is responsible to ensure recoverability of outstanding from customers. 

- 22 -





9 Accounts Receivables Write-Offs 

We observed the growing trend in accounts 

receivable’s provision without writing off the 

uncollectible accounts. 

When all efforts to collect an accounts 

receivable has been exhausted, such 

accounts should be identified and 

promptly written off (with BOD’s 

M 

Year 2012 2013 2014 2015 approval). 

Provision 3.180 3.158 3.546 4.095 

(in 

millions) 

Presently accounts receivable are neither 

reviewed for collectability nor written off 

when accounts are deemed to be 

uncollectible. 

Impact:- 

Actual recoverable cannot be ascertained. 


We strongly agree with your suggestion, and we are consistently writing to HOD’s to arrange relevant 

approvals for write off since long. 

Till the time we do not get relevant approvals/ documents, we cannot write off the amounts. 

- 23 -




Annexure – 1 

Sl.No Vehicle No Item Description 

Delay in GRV after the delivery from the dealer 

Unit Price 

(RO) 

GRV 

No 

GRV 

Date 

Delivery Date 

Delay 

Days 

1 280/WK TRUCK 41000 91318561 29/09/2013 14/06/2013 107 

2 9580/YD JCB ROLLER 11400 91417009 17/08/2014 27/02/2014 171 

3 4459/HM LOADER 8700 91419199 30/10/2014 26/05/2014 157 

4 9582/BA PICK UP DOUBLE CABIN 4 X 4 8200 91515242 21/06/2015 26/02/2015 115 

5 4118/DS BUCKET 1500 91515338 24/06/2015 02/07/2014 357 

in 

- 24 -





Insurance renewed for disposed vehicles 

S 

No Vehicle Vehicle Vehicle Registration Registration Purchase Disposal 


1 2827/DS PICKUP 2002 28-APR-13 24-APR-14 8000.000 914227 

2 1129/WK HYUNDAI COUNTY BUS 2001 04-AUG-13 17-JUL-14 9700.000 910214 


3 2826/DS PICKUP 2002 05-DEC-13 04-DEC-14 8000.000 914228 

- 25 -




S No 

Vehicle 

Reg No. 

Vehicle Make 


Insurance Renewed for Vehicles which cannot be repaired 

Model 

Year 

Registration 

Date 

Registration 

End Date 

Chasis Number 

Purchase 

Value 

Received at 

workshop 

1 8661/WB MAZDA D/C PICKUP 2007 21-Nov-13 13-Nov-14 MM7UN34698W659680 6300.000 27.10.2013 

ISUZU TROOPER 4WD 

2 4102/DS S/W 2002 17-Jun-14 22-May-15 JACDH58W727G00798 6800.000 29.06.2014 

3 5106/DS FORD RANGER PICKUP 2005 15-May-13 3-Mar-14 MNCBS32795W453139 4900.000 10.09.2012 

4 5577/MD MITSUBISHI (NATIVA) 2006 20-May-14 23-Apr-15 JMYORK9606J711463 8400.000 19.01.2013 

5 4064/WB MAZDA PICKUP 2007 22-Oct-13 28-Sep-14 MM7UN34628W655941 6300.000 06.11.2012 

6 8360/HW FORD RANGER PICKUP 2005 23-Oct-13 27-Sep-14 454705 4900.000 03.11.2014 

7 5584/RK FORD DC PICK-UP 2005 12-Dec-13 3-Dec-14 MNCBS32835W409128 5000.000 25.11.2014 

TOYOTA SALOON 

8 3915/HS ECHO 2001 19-Aug-14 3-Aug-15 JTDBW133510023424 4160.000 9.2.2015 

- 26 -





Details of Accident vehicles available at Ghala Workshop 

Vehicle Item Description GRV No Purchase Value Book Value Acc Depr Insurance 

4356/DK NISSAN PICKUP 90811293/2/4 7700 769.992 6,930.01 Yes 

9154/YR PICK UP 91112378/1/2 6800 2440.9266 4,359.07 Yes 

5393/RK MITSUBISHI PAJERO S/W 90113063/6/3 5000 499.99936 4,500.00 Yes 

5929/MA TOYOTA BUS 90314014/1/5 6700 669.99562 6,030.00 Yes 

5853/HK NISSAN PICKUP 90811991/1/3 7700 769.992 6,930.01 Yes 

2241/YD SUV 4X4 VEHICLE 90911892/1/3 7000 699.99472 6,300.01 Yes 

6812/RK TOYOTA LAND CRUISER 91011678/1/6 20800 3010.86755 17,789.13 Yes 

1593/YR SUV 4X4 VEHICLE 91111139/1/3 6999 2262.46187 4,736.54 Yes 

- 27 -




Annexure- 5 

Details of idle Vehicles lying at workshop 

Vehicle No. Item Description GRV No Purchase Value Book Value Accu. Depr 

4571/RK ASHOK LEYLAND BUS 90112878/1/4 11950 1194.9958 10,755.00 

8868/WB FORD RANGER D/C PICKUP 90712725/2/4 5700 570.00282 5,130.00 

9070/HW TOYOTA DYNA TRUCK 99912019/1/3 6450 644.99742 5,805.00 

371/HM TOYOTA BUS 99911791/1/5 6500 649.99706 5,850.00 

1086/BK MAZDA PICKUP D/CABIN 90811051/1/3 6453 645.296 5,807.70 

4996/RK FORD-THAI RANGER 4X4 PICK UP 90112865/1/4 6700 670.00528 6,030.00 

8121/MA HEILA TRUCK CRANE 90314089/1/4 23900 2390.0034 21,510.00 

4543/HM TOYOTA COASTER BUS 26 SEATER 99811161/1/4 12600 1259.9949 11,340.01 

1403/RK TOYOTA MINI BUS 99911979/1/4 6500 649.99706 5,850.00 

1055/YS BUS 91214064/1/2 17950 9157.6139 8,792.39 

3710/MR MITSUBISHI TRUCK 90618480/1/4 7150 714.99238 6,435.01 

3111/MA TATA BUS 90314003/1/7 12450 1244.9981 11,205.00 

- 28 -


FUEL EXPENSES DETAILS (JANUARY to SEPTEMBER 2015) 

S. No Fuel Card Item Desc Issue Dt 

Unit 

Price A01 A02 A03 A04 A05 A06 A07 A08 A09 Total Amount 

PICK UP 22-Sep-07 5700 192.418 96.391 111.583 128.217 49.661 34.467 113.032 91.981 35.802 853.552 

1 7002481 84562 46685 PICK UP DOUBLE CABIN 27-Feb-14 8000 98.885 101.17 116.364 86.167 126.257 154.762 113.094 138.748 47.15 982.597 

2 7002481 80277 61626 PICK UP DOUBLE CABIN 13-Jun-10 7000 16.282 163.546 137.061 129.73 109.474 73.379 79.91 122.298 117.944 949.624 

3 24610200470000397 SUV 4X4 VEHICLE 29-Jan-11 7100 69.384 73.513 30.202 33.914 42.267 102.048 0 88.928 259.923 700.179 

4 24610200470000413 PICK UP DOUBLE CABIN 29-Jan-11 7100 46.477 8.57 31.738 59.002 125.721 35.598 0 584.111 584.768 1475.985 

5 7002481 84562 11200 FORD RANGER D/C DIES 28-Oct-04 6150 8.885 18.693 21.241 17.036 0 17.787 17.909 18.364 452.68 572.595 

6 7002481 84562 22041 PICK UP 13-Sep-12 7800 129.14 160.034 98.369 87.899 81.822 108.918 87.991 86.867 123.326 964.366 

7 7002481 84562 12083 PICK UP 2-Aug-12 7800 21.008 48.553 33.574 52.842 75.888 56.748 83.341 184.7 124.195 680.849 

8 7002481 80277 46304 FORD RANGER D/C DIES 19-Oct-05 4900 0.3 0.3 32.079 146.699 146.665 146.699 146.698 114.667 131.16 865.267 

9 7002481 80277 34995 PICK UP 22-Sep-07 5700 102.298 95.108 121.558 99.048 98.823 153.317 123.731 37.015 43.485 874.383 

10 7002481 84562 11135 MAZDA BT-50 20-Jan-08 6300 158.626 176.737 180.075 172.998 149.721 109.853 113.623 46.175 109.526 1217.334 

11 7002481 84562 12653 CRANE 30-Sep-13 30820 0.3 175.16 379.65 284.349 249.043 459.631 369.56 56.541 404.491 2378.725 

12 7002481 84562 12653 TRUCK 14-Jun-13 41000 0.3 175.16 379.65 284.349 249.043 459.631 369.56 56.541 404.491 2378.725 

27-Mar- 

13 7002481 84562 12331 SUV 4X4 VEHICLE 

13 10700 167.247 49.033 64.797 65.241 71.909 57.719 56.228 69.207 83.157 684.538 

14 24610200470000603 MITSUBISHI ROSA BUS 1-Jul-03 11500 7.7 82.682 159.139 147.032 75.546 106.903 0 62.085 51.506 692.593 

15 7002481 80277 29102 CAR STATION WEGON 16-Jun-09 5350 0.3 0.3 0.3 9.695 9.46 4.824 5.302 43.332 70.551 144.064




Sl 

No Fuel Card Item Desc Issue Dt 


FUEL EXPENSES FOR THE YEAR 2015 

Unit 

Price January A02 A03 A04 A05 A06 A07 A08 A09 Total Amount 

1 7002481 80277 28120 PICK UP 29-APR-08 6550 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

2 7002481 84562 11218 TOYOTA DYNA(D) TRUC 13-MAR-99 6275 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

3 7002481 80277 19467 TATA BUS 66 SEATER 01-JUL-03 12450 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

4 7002481 84562 11390 PICK UP DOUBLE CABIN 29-AUG-12 7800 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 


6 7002481 80277 29672 CAR 19-APR-06 8400 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

7 7002481 80277 38236 PICK UP DOUBLE CABIN 31-MAY-08 7700 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

8 7002481 80277 24848 CHEVROLET EPICA LS M 31-OCT-05 4500 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

9 7002481 80277 37949 FORD RANGER D/C DIES 19-OCT-05 4900 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

10 7002481 84562 88182 SUV 4X4 VEHICLE 09-AUG-10 5595 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

11 7002481 84562 20359 SUV 4X4 VEHICLE 29-JAN-11 7100 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 


13 7002481 80277 29029 PICK UP DOUBLE CABIN 26-APR-09 5530.67 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

14 7002481 80277 37220 FORD RANGER D/C DIES 10-MAR-05 5000 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

15 7002481 84562 10848 PICK UP DOUBLE CABIN 18-APR-11 6800 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 


17 7002481 80277 45553 PJ NO 1426 REALTED WT 11-OCT-97 9750 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 


19 7002481 80277 37311 VEHICLE A/C 10-OCT-06 4900 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

20 7002481 80277 35984 PICK UP 01-OCT-07 6300 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 


22 7002481 80277 35737 FUSO TRUCK CARGO 10-SEP-03 23900 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

23 7002481 80277 37360 HYUNDAI H-100 (DIESAL 26-APR-01 9700 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

- 30 -





25 7002481 80277 25381 PAJERO 10,5-DOOR,LWB 29-DEC-03 5850 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

26 7002481 80277 28260 FORD SINGLE CABIN PIC 19-MAR-01 6700 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

27 7002481 80277 26405 TOYOTA HICE 15 SEATO 21-JUL-03 6700 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

28 7002481 84562 10301 SUV 4X4 VEHICLE 29-JAN-11 7100 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

29 7002481 84562 20938 APV VEHICLE 21-AUG-11 4900 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

30 7002481 84562 12125 CAR 11-DEC-12 7900 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

31 7002481 80277 29490 BOB CAT STEEL LOADE 12-FEB-01 6650 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 2.7 

32 7002481 84562 11374 JCB /BACKHOLE LOADER 30-OCT-05 24600 0.3 0.3 0.3 0.3 0.3 0.3 0 0.3 0.3 2.4 

- 31 -





Delay in Receipt of Payment for Marketing Sales 

SJ No SJ Date Credit allowed (days) Pyt Recd after (days) 

9143377 19/03/2014 30 96 

9143378 19/03/2014 30 285 

9143455 06/04/2014 N.A 309 

91431213 13/08/2014 N.A 88 

91421214 13/08/2014 N.A 124 

91431215 13/08/2014 N.A 124 

91431295 20/08/2014 N.A 62 

91431297 20/08/2014 N.A 62 

91431567 30/09/2014 N.A 31 

91431589 16/10/2014 N.A 62 

91431590 16/10/2014 N.A 62 

9153281 28/02/2015 30 50 

9153299 28/02/2015 60 60 

9153459 25/03/2015 30 25 

9153482 31/03/2015 N.A 70 

9153599 22/04/2015 30 48 

9153778 25/05/2015 30 98 

9153880 11/06/2015 30 32 

9153950 17/06/2015 30 85 

91531018 30/06/2015 30 120 

91531228 06/08/2015 IMMEDIATE 55 

91531293 24/08/2015 30 68 

91531321 31/08/2015 30 38 

91531324 31/08/2015 60 83 

91531409 15/09/2015 30 54 

91531522 29/09/2015 120 152 

91531654 21/10/2015 120 131 

91531655 21/10/2015 IMMEDIATE 40 

91531692 31/10/2015 120 121 

91531917 08/12/2015 30 82 

91531918 08/12/2015 30 82 

Note:- Payment received days calculated as RV Date minus SJ Date. 

- 32 -




ANNEXURE – 9 

RECEIVABLES AGEING ANALYSIS (as on 31-03-2016) 

MONTHS 

0-3 4-6 7-9 10-12 13-24 25-36 Above 36 TOTAL 

BILLING 

RECEIVABLES 9,346,727.000 5,660,103.000 2,951,245.000 1,685,672.000 4,236,107.000 2,158,428.000 3,494,858.000 29,533,140.000 

PROJECT 

RECEIVABLES 10,893,218.502 1,943,621.322 948,475.250 376,812.652 2,334,216.829 2,704,224.912 1,639,461.795 20,840,031.262 

TOTAL 20,239,945.502 7,603,724.322 3,899,720.250 2,062,484.652 6,570,323.829 4,862,652.912 5,134,319.795 50,373,171.262 

(%) 40.18 15.10 7.74 4.10 13.04 9.65 10.19 100.00 

Billing Receivables 

Project Receivables 

0-3 

4-6 

7-9 

10-12 

13-24 

25-36 

Ab 36 

0-3 

4-6 

7-9 

10-12 

13-24 

25-36 

Ab 36 

- 33 -




ANNEXURE – 10 

COLLECTION ANALYSIS 

PERIOD 

0- 3 

MONTHS 

4-6 

MONTHS 

7-9 

MONTHS 

10-12 

MONTHS 

13-24 

MONTHS 

25-35 

MONTHS 

36 MONTH & 

ABOVE 

TOTAL 

APR-JUN 2015 3,723,925.00 3,282,826.00 409,811.00 171,961.00 719,288.00 ---- ---- 8,307,861.00 

% 44.82 39.52 4.93 2.07 8.66 0.00 0.00 100.00 

JUL-SEPT 2015 4,548,195.72 1,893,278.98 553,377.69 899,900.08 113,509.91 ---- 45,439.73 8,053,702.11 

% 56.47 23.51 6.87 11.17 1.42 0.00 0.56 100.00 

OCT-DEC 2015 3,732,998.97 1,400,643.03 1,714,428.52 125,035.93 147,431.79 5,905.00 92,676.79 7,219,120.03 

% 51.71 19.40 23.75 1.73 2.04 0.08 1.29 100.00 

JAN-MAR 2016 2,672,922.00 2,900,403.00 708,587.00 126,722.00 89,738.00 30,708.00 12,296.00 6,541,376.00 

% 40.86 44.34 10.83 1.94 1.37 0.47 0.19 100.00 

- 34 -

Audit Report (Q1 2016)

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