5 JUN 20 5 N WDELD. NHB (ND)/RMMD/WB/SCo/2015 June 3, (LIHF) Project for the financial year ended Yours faithfully, (K Chakravarthy)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized NHB (ND)/RMMD/WB/SCo/2015 June 3, 2015 Ms. Bertine Kamphuis, Private Sector Development Specialist, World Bank, 70, Lodhi state, New Delhi Madam, IDA Credit for Low Income Housing Finance Project by NHB (IDA Credit No IN) - PFS as on NATIONAL HOUSING BANK As per the Project Appraisal Document (PAD), the Bank has to submit Audit Report of the Project Financial Statements (PFS) for each financial year. In this regard, please find enclosed herewith the Audited Project Financial Statement (PFS) for the Low Income Housing Finance (LIHF) Project for the financial year ended Kindly acknowledge the receipt. Yours faithfully, (K Chakravarthy) Deputy General Manager Public Disclosure Authorized nd.: as above MANAG NTJ 5 JUN 20 5 N WDLD TRdu ftwr4 Ui #T4 *qicr 4 Wholly owned by Reserve Bank of India 5-1k, _qo, f tt tc;z, - 4, _ ft Core 5-A, 4th Floor, India Habitat Centre, Lodhi Road, New Delhi T ffl : , Phone : PBX Fax : , rta : 4-#F ho@nhb.org.in?ff fkrfm 4i Website: -mail : ho@nhb.org.in Gram : NIWAS Bank

2 V. V.K. VRMA & CO.,V R A O in reply please qut CHARTRD ACCOUNTANTS C-37, CONNAUGHT PLAC, NW DLHI TL. : , , , L FAX mail vkverma@vkvermaco.com pverma@vkvermaco.com Website : _ INDPNDNT AUDITOR'S RPORT Deputy General Manager, National Housing Bank, Core-5A, India Habitat Centre, Lodhi Road, New Delhi Report on the Project Financial Statements We have audited the accompanying financial statements of the National Housing Bank- Low Income Housing Finance Project financed under Credit No IN, which comprise the statement of Sources and Application of Funds and the Reconciliation of Claims to Total Applications of Funds for the period ended ( to ). These statements are the responsibility of the Project's Management. Our responsibility is to express an opinion on the accompanying financial Statements based on our audit. We conducted our audit in accordance with the Auditing Standards promulgated by the Institute of Chartered Accountants of India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Our Audit examines, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements present fairly, in all material respects, the sources and application of funds of National Housing Bank - Low Income Housing Finance Project for the year ended for the period ended ( to ) in accordance with Institute of Chartered Accountants of India Accounting Standards. In addition, as shown by records provided to us, and to the best of our information and according to the explanations given to us: (a) With respect of Internal Unaudited Financial Report, adequate supporting documentation has been maintained to support claims to the Government of India for the reimbursements of expenditure incurred; K=C_ Kreston International A Worldwide network of independent accountants

3 (b) We have verified the Statement of Sources and Application of Funds as well as the Statement of Reconciliation of Claims to Total Application of Funds. (c) xpenditures (including sub loans to PLIs) shown in the PFS are eligible for financing under the legal agreements, are recorded in the books of account of NHB and no other sources of funds have been received by NHB for these expenditures; (d) The bank funds claimed during the reported period shown in the Project Financial Statements are eligible under the agreements. However, they are not recorded in the books of accounts of NHB due to non receipt of funds from the Government of India. The same should be recorded in the books of accounts as assets & liability. Further necessary disclosures should also be made in the notes to accounts; (e) The accounting, and internal control systems underlying the project, including material compliance with the Project Operational Manual, and oversight over the Project funds were adequate and maintained throughout the audit period; (f) Project funds have been provided to PLIs that meet the eligibility criteria given in the Project Operational Manual and that the aggregate of the housing loans made to beneficiaries under each category (quadrant) is within the individual limits set forth in the Project Operations Manual; (g) Procurement done by NHB under the project had been undertaken in accordance with World Bank guidelines. For V. K. Verma & Co. Chartered Accountants Firm Registration No N (Vivek Kumar) PARTNR Date: 2 6 th May 2015 Place: New Delhi

4 V. K. VRMA & CO. Fr In reply please quote - - CHARTRD ACCOUNTANTS C-37, CONNAUGHT PLAC, NW DLHI TL. : , , , FAX : mail : vkverma@vkvermaco.com pverma@vkvermaco.com Website: Deputy General Manager, National Housing Bank, Core-5A, India Habitat Centre, Lodhi Road, New Delhi Date: 26 h May 2015 Respected Sir, Management Letter This management letter is provided in connection with your audit of the Project Financial Statements of the Low Income Housing Finance Project under Credit No IN (the Project) for the year ended on ( to ) for the purpose of expressing an opinion on the findings of the audit and recommendations for improvement in Internal Control and other matters coming to attention of the auditor during the audit. Our audit plan was prepared using a risk-based methodology that includes an assessment of the systems, records & control of the Bank. The following methodology was adopted for the purpose of our review: * Review of the agreements entered by the IDA, Government of India & National Housing Bank provided to us. * Verification of the quarterly Internal Unaudited Financial Report along with the refinance disbursement sheet provided by the PLI to the concerned Department. * Verification of compliance of the project with the Operation Manual, identification of key risk/weaknesses, methods for mitigation of these key risks/weaknesses. * Selection of a sample of Procurement cases and checking of procurement documents & assets created in order to ascertain the soundness of the procurement system. * Discussion of the same with the personnel responsible for its maintenance. The bank funds claimed during the reported period shown in the Project Financial Statements are eligible under the agreements; however they are not recorded in the books of accounts of NHB due to non receipt of funds from the Government of India. The same should be recorded in the books of accounts as assets & liability. Further necessary disclosures should also be made in the notes to accounts. For V. K. Verma & Co. Chartered Accountants Firm Registration No N (V ek Kumar) PARTNR Place: New Delhi a Kreston International A Worldwide network of independent accountants

5 Tool for Post Reviews of Contracts India: Low Income Housing Finance Project (Credit No IN) Date of Audit: Contract For: Awarding con tract to Procunrement Specialist/lxpert Name o Agency: National Housing Bank Contract No. and Date: 01/2014 and 26 June 2014 Contract Amount: Z 15,00, Contractor/Supplier's Name and Address: Mr. Ketan Mandani, A-33, Pranik Garden, Mahanvirnagar, Dlahanukarwadi, Kandiwali (W), Muimbai (M.S.) Description of Items procured and Quantity: Not Applicable PROCURMNT MTHOD: Goods-9heppifng/NCB/Pkieet Contracting Services- QC:1LS/F/CQSSS/IC Aspects Comments and Findings Quality and completeness of Procurement Documentation (Filing) Details of Advertising A. Published advertisement inviting ol and ToR on NI ll3's website. Nofbd/pooss6. ol/ Pre/post qualification carried out as required. Pan India Advertisement published on Feb 24-25, 2014 in 6 Newspapers viz. I. [he s conomic Times 2. Financial xpress 3. Blusiniess Line 4. Business Standard 5. limes of India and NavbharatTimes (Hindi) Yes Time allowed for submission of bids/proposals. 16 days (till March 12, 2014) Availability and quality of Bid opening & minutes of bid N t Applicale 'valiation process explained opening i6wlsere. Bid security records (for goods procurement) N Applicable Tt No. of bids sold (for goods procurement) No. of bids/proposals submitted 08 N t ApplicaNle No. of bids/proposals found responsive 0)4 Bid/Proposal valuation process- verify bids/proposals- An valuation Committee comprised of 3 Officers Names of bidders; evaluation comimittee, quality of evaluation of NI-Ill along with 2 PIU members have reviewed minutes. 8 (light only) CVs received and conducted preliminary screening and has shortlisted 04 candidates who met eligible criteria. Out of 100 mark, 70 marks was awarded on technical merits. Names of the shortlisted candidates are: i. Mr. Sanjay Lialdhar Bhirud ii. Mr. Ketan Mandani iii. Mr. Girdhar Lal Gandecha iv. Mr. 1 4rakash. +tesotise Further, a I ligh Level committee comprised of 04 high level NIlIB's Officers had undertaken the interviwsl of (4 shortlisted candidates. Balance 30 marks were awarded in the interview. The marks Nae4 addtsae are based on " Knowledge Domain A Familiarity with the Low Income I lousing sector in India and the related social and environmental safeguards.

6 * Familiarity with World Bank's procurement guidelines. * lands - on experience of having worked in procurement on project/s funded by W13. * Their availability and flexibility for the proposed assignment. * fficiency/expertise and * xpected remuneration. Bid/Proposal/Quotation validity period Not Applicable It's an IC and no bids were submitted. Applicants had submitted their CVs and interviews were held to select the final candidate. Contract document Reference to Bank and "no objection," if any (not required under Agreement) Advance payment guarantee details and records Performance security details and records. Complaints & other matters Contractual completion date Actual completion date Delivery receipt or similar instrument. Liquidated damages, details and enforcement for delays. Timeliness of payments Other matters Compliance with agreed provisions- Yes or No (xplain) Observations: Deviations and Comments: No deviations observed. Available No Objection from World Bank was obtained with respect to appointment of Mr. Ketan Mandani as Procurement xpert. Not Applicable Not Applicable No such issues observed. 25-June-2017 Not Applicable Not Applicable Monthly billing based on man days worked. Yes Si ature of the CA Firm Note: Fill the checklist separately for each of the Contracts audited.

7 India: Low Income Housing Finance Project (Credit No IN) Statement of Reconciliation of Claims to Total Applications of Funds Report for the year ended Sch (Amount in Z) Particulars edu les Current Year Previous Year Project to date (July to June) Bank Funds claimed during the reporting period (A) I 491,658, Nil 491,658, Total xpenditure made during the year (13) 184,821, ,325, ,147, Less: Ineligible expenditures (C) Nil Nil Nil xpenditures not claimed (D) Nil Nil Shortfall Amount received due to Forex Fluctuation 18,896, Nil 18,896, and Capping on Quadrant 1 xpenditure incurred but not claimed till June 30, ,925,327.00^ Nil 165,925, Total ligible xpenditures Claimed (' (B)-(C)-(D) 302,325, Nil 302,325, World Bank 100% of (F) above (F) 302,325, Nil 302,325, (A) - (F)* 189,333, Nil 189,333, Component Wise xpenses are given as under: Particulars Claim in INR submitted under Claim in INR submitted Claim in INR submitted -- Component I under Component II _ under Component III Nlenses 487,147, Nil Retroactive claim submitted by NI H1 vide IlUFR contained xpenses, Forecast of cash requirement for next two quarters vis-i-vis claim amount settled by World Bank are given as under: Particulars Claim in INR submitted by Amount Settled NI HB- xpenses 321,221, ,325, Cash Forecast next Quarters 186,000, ,333, TOTAL 507,221, ,658, ^The Claim Details are given as under: IUFR for the eriod Claim in INR submitted b NHB ,499, ,425, TOTAL 165,925, Notes: The Project follows forecast based advance. The difference calculated above represents the amount received against the forecast expense of INR 186 million. Deputy General Manager N113 General Manager NHB Dated: May 21, 2015

8 Schedule I Bank Funds claimed during the reporting period (As on June 30, 2014) Date of Receipt by SDR lxch Rate Govt. of USD F'xch Rate (US)-INR) INR India 25-Mar-14 3,206, ,954, ,325, A r-14 2,012, ,119, ,333,357 TOTAL 5,218, ,074, ,658,453 Deputy General Manager NHf General Manager NIIB Dated: May 21, 2015

9 xample of a Statement of Sources and Application of Funds (projects implemented by core government departments) Name of the Project India: Low Income Housing Finance Project Loan/Credit/Grant No. Credit No IN Statement of Sources and Applications of Funds Report for the year ended June30, 2014 Annexure 1 In Z Particulars Current Previous Project to Year Year date Opening Balance, (if cash balances are controlled by the entity) A) Receipts National Housing Bank 487,147, Nil 487,147, Funds received from Government through Budget (These will include external assistance received by Government for the project.) Nil Nil Nil Funds received directly by Project Implementing Authority through external assistance Nil Nil Nil Beneficiary Contribution (if any) Nil Nil Nil Total Receipts (B) - 487,147, Nil 487,147, Total Sources (C = A + B) 487,147, Nil 487, xpenditures by Component Component - I Comonent - II 184,821, ,325, ,147, Component - Ill Total xpenditures (I)) 184,821, ,325, ,147, Closing Balance, (if cash balances are controlled by the enti (C-Derlange ngn Deputy General.M afl,:er I111B General Manager N1113 Dated: May 21, 2015 al

10 rn en a) o r1 N]4 Nn IN o (N L 0 Ln - ri 0 o6 cfl oo m w 0 m a el r04 Ci -i '-4 Oo.n -- > e ", u e z zn Ln Ln Ln 044 c cc <4 OJ oo ca 0 0 cc =m uj 0 > M -Q O u o 08 < o o u _a w,u a co- O a, c.o - c - a- 3 renr c _4 e c -S c c o3 coo c ~<4Jc 0 OJ u tj c.- O - -o <'> 0..c m n cc : ze 2 ~ en c 0z 0 OJ. -a) zi : 4 0 -o 0z -1m o 1. o Ln o Mw w -- oo OJ z o r - ) o wa - o 0-2 O o -a ~ -w o c> 0> fl0fo = fl 0... O= u - c 1 - c < y a o w - 0 o.c a 00o In~ 0 '4 0 = : o O 4 ocl 0-o x- -o z ~~~.. z w. w o.1 <04 Z 0 OJ 4.. ro al 0..0 j OJ J u > til å CO (n4 -o -oujr cc z a. a

11 又 _? 价

12 rm w.9.2! < w CA. c: T2 C Cr LLI cy iki U ø cy c 0 c M t CO M Z = z m 3 x ri uj 0 w 0 1:3 = c c z en CD m 00 c 4 Ln Z w ø z 6 ' - z > 0 r ce Gi bn C) r u u w z w 0 -i -c cm 0 CL cu u 2 0 0J Qj r '0 CL 0 ý.j 0 -ri J3 Z 0 z, uo.ý: < 0 cl ci CC ur CL x 0 u uj 0 > 0 G) c en 0 in CO CL LU x C) cl LU u Qj Qj :133 -F - vi cl o 0 r= ý= ri Uc r G) o 0 t5 > C) u ýý C- Q) o TTF r 0 ID 0 0 i : ý Cdl -d L4. o 0 CL 0 i

13 含, :/-

14 z 0) aý ra Ln 12 (Cc = 2D ca rn oo r CY tr Qj r er to o rn F,, o r4 4(, c3 t; r4 06 aj cd a c: Ln Ln Lo -o ÅL rn 2 en -o r o Dc w m n Ln o. 2 - rý 12 r4 x w aý aý q, cc U) Ln 1ý (D 4D j Z rn.2 oo w Q r4 =, i Ln z a) <n z Ci crý Ln Ln r4 0 m w 12 t m tu tko oo oo z M rn aj 13 rn c3 + cn en + rn to t4 r rl rj o_ 5 cl tr 0 Q1 M jo c m.2 nc to ro il o m å cýl r o o c 0 Ln a. 0 r3

15 ;, 心 4