AUDIT REPORT AND AUDITED STATEMENT OF ACCOUNTS FOR THE YEAR

Transcription

1 AUDIT REPORT AND AUDITED STATEMENT OF ACCOUNTS FOR THE YEAR Sr. No. Particulars Page No. 1. Audit Certificate (i-v) 2. Balance Sheet (1) 3. Income & Expenditure & Account (2) 4. Schedule 1 to 23 (3-32) 5. Receipt & Payment Account (33-37)

2 AUDIT CERTIFICATE 1. We have audited the Balance Sheet of National Institute of Technology, Kurukshetra as at 31 st March 2017, Income and Expenditure Account and Receipts and Payment Account for the year ended on that date under section 19(2) of the Comptroller and Auditor General s (Duties, Power & Conditions of Service) Act, 1971 read with Section 22 of the National Institute of Technology Act, These financial statements are the responsibility of the Institute s management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. This separate Audit Report contains the comments of the Comptroller and Auditor General of India (CAG) on the accounting treatment only with regard to classification, conformity with the best accounting practices, accounting standards and disclosure norms, etc. Audit observation on financial transactions with regard to compliance with the Law, Rules & Regulations (Propriety and Regularity) and efficiencycum-performance aspects, etc. if any, are reported through inception reports/ CAG s Audit Reports separately. 3. We have conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatements. An audit includes examining, on a test basis, evidences supporting the amounts and disclosure in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of financial statements. We believe that our audit provides a reasonable basis for our opinion. 4. Based on our audit, we report that: I. We have obtained all the information and explanations, except stated in Annexure of Audit report, which to the best of our knowledge and belief were necessary for the purpose of our audit. II. The Balance Sheet, Income and Expenditure Account / Receipt and Payment Account dealt with by this report have been drawn in the Format prescribed by Ministry of Human Resource Development, Government of India vide order No. 29-4/2012-FD dated 17 April III. In our opinion, proper books of accounts and other relevant records have been maintained by the National Institute of Technology, Kurukshetra in so far as it appears from our examination of such books. IV. We further report that: (i)

3 A. Balance Sheet Application of Funds Fixed Assets (Schedule 4) A.1. Intangible Assets: Nil (i) The above does not include Rs lakh on account of E-journals valuing Rs lakh purchased from main grant and Rs lakh purchased from TEQIP grant. As E-Journal are part of Intangible Assets, they should have been capitalized as Intangible assets (ASchedule-4). However, these have been treated as revenue expenditure (subscription Expenses Schedule 16) and Rs lakh was included in Magazine and Journal (Administrative and General Expenses Schedule 17). This has resulted in understatement of Fixed Assets/Intangible (Schedule 4) and overstatement of the expenditure/ Deficit by Rs lakh (Rs lakh less depreciation on main Current Assets Rs lakh) each. (ii) The NIT Kurukshetra had placed (28 October 2016) purchase order valuing Rs lakh for purchase of Bentley Academic Perpetual Offering Solution - 5 User pack (MX Road Suite) Computer software which received on 15 December and installed on 09 February As such it should have been capitalized and shown as intangible asset but the value of above software was not capitalized. This has resulted in understatement of the Fixed Assets as well as Current Liabilities to the extent of Rs lakh. A.2 Capital Work in Progress: Rs crores Above included 2 works wherein certain defects were pointed out (Febraury 2016) by the Inspection Committee of the Institute. These works were physically completed and final expenditure (Rs lakh and Rs lakh respectively) was firmed up in respect of these works in the year As such the cost of above completed works should have been capitalized under Fixed Assets during Non capitalization of above completed works has resulted in overstatement of CWIP by Rs lakh, understatement of the Fixed assets by Rs lakh ( lah less depreciation Rs lakh) and overstatement of Corpus/ Capital fund by Rs lakh each. Expenditure (depreciation) for the year has also been understated by Rs lakh. B General B.1 Net Impact of Audit Comments i. Liabilities are understated by Rs.5.76 lakh. ii. Assets are understated by Rs lakh. iii. Deficit for the year is overstated by Rs lakh and Corpus/capital Fund was understated by Rs lakh. (ii)

4 B.2 Capital Work in Progress: Rs crores The Institute on release of capital advance, is booking the entire amount of advance on account of Capital works as Capital Work in Progress (CWIP); on the plea that according to AS-10 and generally accepted accounting principle (GAAP), any expenditure on acquisition or construction of any assets done before the commencement of commercial use should be depreciated. However, the CWIP is being booked by the Institute on release of advance without confirming the expenditure from the executing agency which is technically incorrect as it cannot be treated as expenditure at this stage in accordance with AS-10. The Institute should on release of advance, book the amount of advance under Loans, Advances and Deposits (Schedule 8), should book expenditure incurred up to the Balance Sheet date as Capital Work in Progress and should book Buildings amount transferred to Buildings (under Fixed Assets) to the extent of Building Capitalized by transfer out of the CWIP booked. Thus, correct amounts of Advances pending, expenditure incurred out of these advances and building capitalized thereof needed to be worked out for their correct depiction in the Balance Sheet. B.3 Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) had raised demand for Rs lakh on account of advance consumption deposit for the year The amount has neither been paid nor provided for in the accounts. C. Grant in Aid Out of available funds of Rs lakh (Plan-non-Recurring: crore and Non-Plan Recurring: Rs crore) including previous year unspent balance of Rs. Nil and grant received during the year Rs crore (Plan: crore, Non-Plan: Rs crore), the Institute could utilize a sum of Rs crore (Plan- non-recurring: crore, Non-Plan- Recurring: Rs crore) leaving an unspent balance of Rs.6.39 crore (Plan) at the end of the year. Besides, out of available funds of Rs.5.93 crore of project of Technical Education Quality Improvement Programme (TEQIP) including unspent balance of previous year Rs.3.64 crore, grant received during the year Rs.2.00 crore and internal income of Rs.0.29 crore, the Institute could utilize a sum of Rs.4.96 crore leaving an unspent balance of Rs.0.97 crore. v) subject to our observations in the preceding paragraphs, we report that the Balance Sheet, Income and Expenditure account and Receipt and Payments Account dealt with by this report are in agreement with the books of accounts. (iii)

5 vi) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements read together with the Accounting Policies and Notes on Accounts, and subject to the significant matters stated above and other matters mentioned in annexure to this Audit Report give a true and fair view in conformity with accounting principles generally accepted in India: a. In so far as it relates to the Balance Sheet, of the state of affairs of the national Institute of Technology, Kurukshetra (Haryana) as at 31 st March 2017; and b. In so far as it relates to Income & Expenditure Account, of the deficit for the year ended on that date. Place: Chandigarh Date: For and on behalf of the C&AG of India Sd/- Principal Director of Audit (Central), Chandigarh (iv)

6 Annexure to Audit Report 1. Adequacy on Internal Audit system Institute has got conducted its Internal Audit through a firm of Chartered Accountants. However, Internal Audit Manual has not been prepared by the Institute. 2. Adequacy on Internal control system Internal control system was found to be deficient in the following area: (i) The Institute has not obtained any security deposited/fidelity guarantees in respect of employees handling valuable such as cash and stock. Further, there is no plan of rotation of duties of such employees. (ii) Fixed Assets registers through have been maintained year wise by various departments of the Institute, however, in order to exercise control over inter-department transfer and depicting depreciation, a centralized consolidated Fixed Assets Register has not been maintained. (iii) Title deed of the land of 292 acres is in the name of Principal, Regional Engineering College, Kurukshetra not has been transferred in the name of Director, National Institute of Technology, Kurukshetra till date. 3. Physical verification of Fixed Assets As per information furnished by the National Institute of Technology, Kurukshetra the Physical verification of Fixed Assets was conducted. However, the repost of such verification have not been furnished to Audit. 4. Physical verification of Inventory As per information furnished by the National Institute of Technology, Kurukshetra the Physical verification of Inventory was conducted. However, the repost of such verification have not been furnished to Audit. 5. Regularity in payment of statutory dues The Institute was found regular in payment of statutory dues. (v) -Sd- Deputy Director

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8 NATIONAL INSTITUTE OF TECHNOLOGY, KURUKSHETRA BALANCE SHEET AS ON 31 ST MARCH 2017 SOURCES OF FUNDS Sch Current Year Previous Year MAIN SCHEME MCA TEQIP-II OTHER Total CORPUS/CAPITAL FUND 1 31, , , , DESIGNATED/EARMARKED/ ENDOWMENT FUNDS CURRENT LIABILITIES AND PROVISIONS 2 1, , , , , , TOTAL 40, , , , , APPLICATION OF FUNDS FIXED ASSETS 4 Tangible Assets 17, , , Intangible Assets Capital work-in-progress 9, , , INVESTMENTS FROM EARMARKED/ENDOWMENT 5 FUNDS INVESTMENTS - OTHERS 6 CURRENT ASSETS 7 12, , , , , LOANS, ADVANCES & DEPOSITS , , , TOTAL 40, , , , , SIGNIFICANT ACCOUNTING POLICIES 23 CONTINGENT LIABILITIES AND NOTES TO ACCOUNTS 24 (1) Sd/- Director National Institute of Technology Kurukshetra

9 INCOME & EXPENDITURE ACCOUNT

10 NATIONAL INSTITUTE OF TECHNOLOGY, KURUKSHETRA INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 ST MARCH 2017 Previous Current year INCOME Sch Year Main Scheme MCA TEQIP-II Others Total Academic Receipts 9 2, , , Grants / Subsidies 10 7, , , Income from Investments , , Interest Earned Other Incomes Prior Period Income TOTAL (A) 11, , , EXPENDITURE Staff Payments & Benefits 15 6, , , Academic expenses 16 1, , , Administrative & General Expenses Transportation Expenses Repairs & Maintenance Finance Cost Other Expenses Prior Period Expenses 22 3, , , Depreciation TOTAL (B) 12, , , Balance being excess of Income over Expenditure (A-B) (1,209.47) (810.93) 2, Transfer to Designated/Earmarked Fund (767.23) Others (Specify) BALANCE BEING SURPLUS (DEFICIT) CARRIED TO CAPITAL FUND Significant Accounting Policies 23 Contingent Liabilities and Notes to 24 Accounts (1,209.47) (810.93) 3, (2) Sd/- Director National Institute of Technology Kurukshetra

11 SCHEDULES

12 NATIONAL INSTITUTE OF TECHNOLOGY, KURUKSHETRA SCHEDULES FORMING PART OF BALANCE SHEET AS ON 31 ST MARCH 2017 SCHEDULE - 1 CORPUS / CAPITAL FUND Particulars Current year Previous Main A/c Scheme MCA TEQIP-II Total Year Total Balance as at the beginning of the year 30, , , , Add: Contribution towards Corpus/Capital Fund Add: Grants From UGC,GOI to the extent utilized for capital Expenditure 3, , , Add: Assets Purchased out of Earmarked Funds Add: Assets Purchased out of Sponsored Projects Add: Other Additions Add: Excess of Income over Expenditure from the I & E Account (1,209.47) (839.25) 3, Deduct: Deficit transferred from the Income & Expenditure Account Deduct: Grant unrecoverable adjusted Deduct: Amount t/fed to specified head adhering applicable forms BALANCE AT THE YEAR END 31, , , , Sd/- Director National Institute of Technology Kurukshetra (3)

13 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE- 2 DESIGNATED / EARMARKED / ENDOWMENT FUND (A) MAIN ACCOUNT Opening Balance as on Additions to the funds Other Income Total Utilization/Exp. Towards obj. of Fund during the Year Capital Revenue Refund/ Total Exp. Exp. Advance Closing Balance as on Institute Development Fund (Consultancy) - 2- Student Fund , Total (A) 1, , , (B) Other Accounts 1- Ex-Employee/ SWF etc CPF/GPF Account 8, , , Total (B) 8, , , Total ( A+B) 10, , , Sd/- Director National Institute of Technology Kurukshetra (4)

14 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE- 3 CURRENT LIABILITIES AND PROVISIONS Particulars Current Year Previous Main Scheme MCA TEQIP Other Total Year A. CURRENT LIABILITIES 1. Deposits from Staff Deposits from Students Sundry Creditors a) For Goods & Services b) Others Deposits from others Advances Received Statutory Liabilities (GPF,TDS,WC TAX, CPF,GIS,NPS): a) Overdue b) Others Other Current Liabilities a) Salaries and Pension payable b) Receipts against sponsored projects c) Receipts against sponsored fellowships & scholarships d) Unutilized Grants e) Grants in advance f) Consultancy g) Other Liabilities TOTAL (A) 2, , B. PROVISIONS 1. For Taxation Gratuity 1, , , Superannuation/ Pension Accumulated Leave Encashment 1, , , Expenses Payable TOTAL (B) 3, , , TOTAL (A+B) 6, , , (5) Sd/- Director National Institute of Technology Kurukshetra

15 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 3 (a) SPONSORED PROJECTS PARTICULARS Opening Balance as on Receipts during the year Total Capital Exp. Utilization/Exp. Towards obj. of Fund during the Year Revenue Refund/ Exp. Advances Closing Balances as on Total (A) MAIN ACCOUNT 1) UGC, CSIR etc ) Ministry ) Others (Specify) Total (A) (B) Scheme A/C DST,SERB,NBHM etc Total (B) Grand Total (A+B) (6) Sd/- Director National Institute of Technology Kurukshetra

16 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 Schedule 3 (b) SPONSORED FELLOWSHIP & SCHOLARSHIPS PARTICULARS Opening Balance as on Receipts during the year Total Utilized during the year Closing Balances as on (A) MAIN ACCOUNT 1) UGC,CSIR etc ) Ministry ) Others (Specify) Total (A) (B) Scheme Account - 1) UGC - - 2) DST,SERB,NBHM etc ) Others (Specify) Total (B) (C) TEQIP Account - II - 1) UGC - 2) Ministry.. - 3) Others (Specify) Total (C) Total ( A+B+C) Sd/- Director National Institute of Technology Kurukshetra (7)

17 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE 3 (c) UNUTILIZED GRANTS FROM UGC, GOVERNMENT OF INDIA AND STATE GOVERNMENT Particulars Opening Balance as on Additions to the funds Other Income Total Capital Exp. Utilization/Exp. Towards obj. of Fund during the Year Refund/ Advances/ Revenue Transfer to Exp. Capital fund Total Closing Balances as on (A) MAIN ACCOUNT 1- Non Recurring Grant GOI) (a) Capital Assets - 3, , , , (b) General Recurring Grant (GOI) (a) Salary - 4, , , , (b) General - 1, , , , Total (A) - 10, , , , , (B) TEQIP Account - II NPIU Total ( A+B) , , , , , Sd/- Director National Institute of Technology Kurukshetra

18 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 4 FIXED ASSETS & DEPRICIATION FIXED ASSETS Opening Balance (8) Gross Block Depreciation for the year Net Block Dep Dep for Total Add Ded Rate Opening the Year Ded. Amount Balance Total dep (A) MAIN ACCOUNT 1- Land Freehold % Building 15, , % , , Plant, Machinery & % Equipment s 4- Vehicle- Bus & Motor Van % Vehicle - Cycle Rickshaw % Furniture & Fixture % Computer/Peripherals % Electrical Appliances 1, , % , , Library Books % Tube well & Water % Supply 11- Other Fixed Assets % TOTAL - (1) 17, , , , , Capital Work-inprogress 7, , , , , Transfer to Assets (2) Net Work-inprogress 7, , , , , TOTAL (A) = (1+2) 24, , , , , , (B) Scheme a) Plant, Machinery & % Equipment b) Computer & Peripheral % c) Library Books % d) Civil Work % e) Furniture & Fixture % TOTAL -B (09)

19 (C) TEQIP-II a) Computer & Peripheral b) Books & LRs c) Plant, Machinery & Equipment d) Furniture e) Civil Work TOTAL - C (D) MCA A/c - a) Building % b) Computer & % 6.41 Peripheral c) Electrical Appliances % d) Furniture & Fixture % e) Library Books % TOTAL D GRAND , , , , TOTAL(A+B+C+D) 27, , Sd/- Director National Institute of Technology Kurukshetra (10)

20 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 7 CURRENT ASSETS SCHEDULE 7 - CURRENT ASSETS Current Year MAIN SCHEME MCA TEQIP-II OTHERS TOTAL 1. Stock a) Stores & Spares b) Loose Tools c) Publications Sundry Debtors a) Debts Outstanding exceeding six months b) Others Cash balance in hand (including cheques/ drafts & Imprest) Bank Balances (to be further classified as pertaining to earmarked fund or otherwise Previous Year With Scheduled Banks - - a) SBI Current A/c (640.62) (640.62) (347.40) b) SBI Saving A/c - (2.00) 0.14 (139.48) 9.82 (131.52) c) IDBI Saving A/c d) IDBI TDS Saving A/c e) SBI Saving A/c (CPF/GPF A/c) f) Term Deposit Accounts 13, , , , g) Term Deposit Accounts (CPF/GPF , , , A/c) 5. Post Office- Saving Accounts Gratuity Assets , Accumulated Leave Encashment Assets , TOTAL 12, , , , , (11) Sd/- Director National Institute of Technology Kurukshetra

21 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 8 LOANS / ADVANCE AND DEPOSITS SCHDULE 08 - LOANS, ADVANCES & DEPOSITS MAIN SCHEME MCA Current Year TEQIP- II OTHERS TOTAL Previous Year 1. Advances to employees: (Non- interest bearing) a) Salary - - b) Festival - - c) LTC - - d) Medical Advance - - e) Other (CPF) - 1, , , Long Term Advances to employees: - - (interest bearing) a) Vehicle Loan - - b) Home Loan - - c) Others (CPF) - 3. Advances and other amounts recoverable in cash or in kind or for value to be received Prepaid Expenses - - a) Insurance b) Other expenses Deposits - - a) Telephone - - b) Lease Rent - - c) Electricity d) AICTE, if applicable - - e) MCI, if applicable Income Accrued a) On Investments from Earmarked/ - - Endowment Funds b) On Investments- Others - - c) On Loans & advances - - d) Term Deposit Accounts (12)

22 d-a) Term Deposit Accounts (CPF/GPF) e) Others (includes income due unrealized-..) Other Receivable a) Debit balances in Sponsored Projects b) Debit balances in Fellowship & Scholarship c) Grant Recoverable d) Other receivables Claims Receivables TOTAL , , , Sd/- Director National Institute of Technology Kurukshetra (13)

23 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 9 ACADEMIC RECEIPTS ACADEMIC RECEIPTS Current Year Previous MAIN SCHEME MCA TEQIP-II OTHERS TOTAL Year FEE FROM STUDENTS Academic 1. Tuition fee 2, , , Admission fee Enrolments fee Library Admission fee Laboratory fee Art & Craft fee Registration fee Syllabus fee TOTAL (A) 2, , , Examinations 1. Admission test fee Annual Examination fee Mark sheet, certificate fee TOTAL (B) Other fees 1. Identity card fee fine/ Misc. fee Transportation fee Institute Development Fee TOTAL (C ) Sale of Publications 1. Sale of prospectus including admission forms TOTAL (D) GRAND TOTAL (A+B+C+D) 2, , , (14) Sd/- Director National Institute of Technology Kurukshetra

24 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 10 GRANT / SUBSIDIES GRANT/SUBSIDIES Current Year Previous MAIN SCHEME MCA TEQIP-II OTHERS TOTAL Year 1. Central Government 7, , , State Government (s) Government Agencies Institutions/ Welfare Bodies International Organizations Others TOTAL 7, , , SCHEDULE 11 INCOME FROM INVESTMENT Particulars Current Year Previous MAIN SCHEME MCA TEQIP-II OTHERS TOTAL Year 1. Interest a) On Government Securities b) Other Bonds/ Debentures Interest on Term Deposits , , (a). Interest on Term Deposits (CPF/GPF) Income accrued but not due on Term Deposits/Interest bearing advances to employees 4. Interest on Saving Bank Accounts (a). Interest on Saving Bank Accounts (CPF/GPF) Other (Specify) TOTAL , , Sd/- Director National Institute of Technology Kurukshetra (15)

25 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 12 INTEREST EARNED Particulars Current Year MAIN SCHEME MCA TEQIP-II OTHERS TOTAL 1. On Loans a) Employees/ Staff b) Others On Debtors and Other Receivables TOTAL Previous Year SCHEDULE 13 OTHER INCOME Particulars Current Year Previous MAIN SCHEME MCA TEQIP-II OTHERS TOTAL Year A. Income from Land & Building 1. Lease of Land/Khikha License Fee Shop etc Seat Rent Electricity & water charges Total (A) B. Sale of Institute's publications C. Income from holding events 1. Gross Receipts form annual function /sports carnival Less: Direct expenditure incurred on the annual function/sports carnival Gross receipts from fetes Less: Direct expenditure incurred on the fetes Gross Receipts for educational tours Less: Direct expenditure incurred on tours Others (to be specified and separately disclosed) TOTAL ('C) Continued Next Page (16)

26 D. Others a) Income from Consultancy b) RTI fees c) Xerox Machine Rent d) College Contribution Received e) Guest House Charges f) Income from Application forms (recruitments) g) Misc. receipts (Tender form etc.) h) Watch & Ward i) Profit on sale/ disposal of assets a) Owned Assets b) Assets acquired out of grants, or received free of cost j) Others (specify) TOTAL (D) ,93.27 TOTAL (A+B+C+D) SCHEDULE 14 PRIOR PERIOD INCOME Particulars Current Year MAIN SCHEME MCA TEQIP-II OTHERS TOTAL 1. Academic Receipts Income from Investments Interest earned Other Income Previous Year TOTAL (17) Sd/- Director National Institute of Technology Kurukshetra

27 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 15 STAFF PAYMENT & BENEFITS Particulars a) Salaries & Wages Current Year MAIN SCHEME MCA TEQIP-II OTHERS GRAND TOTAL Previous Year i) Pay & DA of Faculty Staff , , ii) Pay & DA of Non-Faculty Staff iii) Leave Salary Contribution iv) Pension 1, , , v) Salary of Contractual Staff vi) Wages For Outsourcing Services vii) Salary and Wages MBA b) Allowances & Bonus c) Contribution to Provident Fund/NPS d) Staff Welfare Expenses e) Retirement & Terminal Benefits f) LTC Facility g) Medical Facility h) Children Education Allowance i)ta/da expenses j) Other (Liveries) TOTAL 6, , , (18) Sd/- Director National Institute of Technology Kurukshetra

28 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE 15 A EMPLOYEES RETIREMENT & TERMINAL BENEFITS Current Year Previous Particulars GRATUITY Leave TOTAL Year Encashment Opening Balance as on Add: Capitalized Value of Contribution Received from Other Organization - Add: Value of Provision Equivalent to Prior Period Expenses 1, , , Total (a) 1, , , Less: Actual Payment during the year (b) Balance Available on (c=a-b) 1, , , Provision Required on as per Institute Valuation (d) 1, , , (A) Provision to be made in the Current Year (d-c) Sd/- Director National Institute of Technology Kurukshetra (19)

29 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 16 ACADEMIC EXPENSES Particulars Current Year MAIN SCHEME MCA TEQIP-II OTHERS GRAND TOTAL Previous Year a) Library Expenses b) Field work/ Participation c) Seminar/ Workshop d) Payment to visiting faculty e) Examination f) Student Welfare Expenses g) Admission Expenses h)convocation Expenses i) Publication j) Stipend/ means-cum-merit scholarship , , k)subscription Expenses l) Other (Specify) TOTAL 1, , , Sd/- Director National Institute of Technology Kurukshetra (20)

30 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 17 ADMINISTRATIVE & GENERAL EXPENSES Particulars A) Infrastructure Current Year MAIN SCHEME MCA TEQIP-II OTHERS TOTAL Previous Year a)electricity & Power Expenses b) Water Charges c) Insurance d) Rent, Rates & Taxes (including property tax) B) Communication e) Postage & Telegram f) Telephone & Internet Charges C) Others g) Printing & Stationery h) Departmental Operating Cost i) Auditor Remuneration j) Hospitality k) Professional Charges l) Advertisement & Publicity m) Magazine & Journals n) Other (NCC, Other Admin Expenses) TOTAL (21) Sd/- Director National Institute of Technology Kurukshetra

31 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 18 TRANSPORTATION EXPENSES Particulars Current Year Previous MAIN SCHEME MCA TEQIP-II OTHERS TOTAL Year 1. Vehicles (owned by educational institution) a) Running Expenses b) Repair & Maintenance c) Insurance Expenses Vehicles taken on rent or lease a) Rent/ Lease Expenses Vehicle (Taxi) hiring expenses TOTAL SCHEDULE 19 REPAIR MAINTENANCE Particulars Current Year Previous MAIN SCHEME MCA TEQIP-II OTHERS TOTAL Year a) Building b) Furniture & Fixtures c) Plant & Machinery d) Office Equipment e) Computers f) Laboratory & Scientific equipment g) Audio Visual equipment h) Cleaning Material & Services i) Book binding charges j) Gardening k) Estate Maintenance l) Other (Water Supply & Disposal) TOTAL (22) Sd/- Director National Institute of Technology Kurukshetra

32 NATIONAL INSTITUTE OF TECHNOLOGY KURUKSHETRA SCHEDULE FORMING PART OF BALANCE SHEET FOR THE YEAR ENEDED 31 ST MARCH 2017 SCHEDULE - 20 FINANCE COST Particulars Current Year Previous MAIN SCHEME MCA TEQIP-II OTHERS TOTAL Year a) Bank Charges b) Other (CPF) TOTAL SCHEDULE - 21 OTHER EXPENSES Particulars Current Year MAIN SCHEME MCA TEQIP-II OTHERS TOTAL Previous Year a) Provision for Bad & Doubtful Debts and Advances b) Irrecoverable balances write-off c) Other (Miscellaneous Expenses) TOTAL SCHEDULE - 22 PRIOR PERIOD EXPENSES Particulars Current Year Previous MAIN SCHEME MCA TEQIP-II OTHERS TOTAL Year a) Retirement & Terminal Benefits 3, , b) Academic expenses c) Other Expenses , TOTAL 3, , , (23) Sd/- Director National Institute of Technology Kurukshetra

33 NATIONAL INSTITUTE OF TECHNOLOGY, KURUKSHETRA SCHEDULE - 23 STATEMENT ON SIGNIFICANT ACCOUNTING POLICIES: 1. BASIS OF ACCOUNTING: The Financial statements are prepared on the basis of historical cost convention, unless otherwise stated and on accrual method of accounting. CPF/GPF Accounts shifted in Other Accounts from Main accounts. Balance Sheet, Income & Expenditure Account and Receipt & Payments accounts of Provident Fund are separately attached with Accounts of the Institute as Annexure No. A. 2. REVENUE RECOGNITION: Fees from students (expect tuition fees), sale of admission Forms, Royalty and interest on Saving Bank account are accounted on cash basis. Tuition Fees collected separately for each semester is accounted on accrual basis. Income from Land, Building and Other Property and Interest on Investment are accounted on accrual basis. Interest on interest bearing advances to staff for House Building, Purchases of vehicles and Computer is accounted on accrual basis every year, though the actual recovery of interest starts after the full repayment of the full repayment of the Principle. 3. RETIREMENT BENEFITS: a. Short term employee benefits are charged off in the year in which the related service is rendered. b. Provision has been made for Post-employment (i.e. Gratuity) and other long term employee benefits (i.e. Leave Encashment) paid at the time of retirement of the employee c. Retirement benefit in the form of Provident Fund is a Defined Contribution Scheme and administered through account department of the National Institute of Technology itself. Contributions to the department are charged to the Income and Expenditure Account when the contribution is due. d. Provision for liability towards pension payable on death/retirement of the employees has not been made. (24)

34 4. FIXED ASSETS, DEPRECIATION AND AMORTISATION: i) Tangible Assets: Tangible assets are stated at cost less depreciation and impairment losses (if any). The cost of an assets includes the purchase cost of materials, including import duties and non-refundable taxes and any directly attributable costs of bringing an asset to the location and condition of its intended use. Free hold land is stated at cost. Leasehold land is stated at the amount paid for acquiring the lease rights. The amount so paid for the lease is amortized over the lease period. Depreciation is provided under Straight Line Method at the following rates. However, no depreciation has been provided on the assets created out of Grant of World Bank Project (i.e. Technical Education Quality Improvement Program) as per instruction of the MHRD & NPIU. Tangible Assets: 1. Land 0% 2. Site Development 0% 3. Building 2% 4. Roads &Bridges 2% 5. Tube wells & Water Supply 2% 6. Sewerage & Drainage 2% 7. Electrical installation and equipment 5% 8. Plant & Machinery 5% 9. Scientific & Laboratory equipment 8% 10. Office Equipment 7.5% 11. Audio Visual Equipment 7.5% 12. Computer & Peripherals 20% 13. Furniture, Fixtures & Fittings 7.5% 14. Vehicles 10% 15. Lib. Books & Scientific Journals 10% (25)

35 (ii) Intangible Assets (amortization): 1. E-Journals 40% 2. Computer Software 40% 3. Patents and Copyrights 9 Years Depreciation is provided for the whole year on additions during the year. Where an asset is fully depreciated, it will be carried at a residual value of Re. 1 in the Balance Sheet and will not be further depreciated. Thereafter, depreciation is calculated on the additional of each year separately at the rate of depreciation applicable for that asset head. Assets created out of Earmarked Funds and funds of Sponsored Projects, where the ownership of such assets vests in the Institution, are setup by credit to Capital Fund and merged with the Fixed Assets of the Institution. Depreciation is charged at the respective assets. Assets created out of sponsored project fund, where the ownership is retained by the sponsors but held and used buy the institution are separately disclosed in the Notes on accounts. Assets, the individual value of each of which is 2000 or less (except Library Books) are treated as small value Assets, 100% depreciation is provided in respect of such assets at the time of their acquisition. However Physical accounting and control are continued by the holders of such assets. iii) Assets. iv) Intangible Assets: patents and copy rights, E journals and Computer Software are grouped under Intangible Capital Work in Progress: Expenditure incurred on construction of assets which are not ready for their intended use are carried at cost less impairment (if any), under Capital work-in-progress. The cost includes the purchase cost of materials, including import duties and nonrefundable taxes and any directly attributable costs. (26)

36 5. INVENTORIES: Expenditure on purchase of chemicals, glassware, publications and other stores is accounted as revenue expenditure, except that the value of closing stocks held on 31 st March is set up as inventories by reducing the corresponding revenue expenditure on the basis of information obtained from department. They are valued of cost. 6. INVESTMENTS a) Long term investments are carried at their cost or face value whichever is lower. However, any permanent diminution in their value as on the date of the Balance Sheet is provided. b) Short Term investment are carried at their cost or market value (if quoted) whichever is lower. 7. LOAN AND ADVANCES: These are classified as current assets. For more details on loans and advances, refer Schedule No IMPAIRMENT OF ASSETS a. The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is higher of asset s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value at the weighted cost of capital. life. b. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful 9. EARMARKED/ENDOWMENT FUNDS The long terms funds are earmarked for specific purposes refer Schedule No. 02. Each of the funds has a separate bank account. Those with large balances also have investments in Government Securities, Debentures and Bonds and Term Deposits with Banks. The income from investments / advances (House Building Conveyance and computer) on accrued basis and interest on saving Bank Accounts are credited to the respective Funds. The expenditure and advances (in the case of House building & conveyance/ computer) are debited to the fund. The assets created out of Earmarked Funds where the (27)

37 ownership Vests in the Institution, are merged with the assets of the institution by crediting an equal amount to the Capital Fund. The balance in the respective funds is carried forward and is represented on the assets side by the balance at bank, Investments and accrued interest. 9.1 CORPUS FUND This fund was established and matching contribution from University Grants Commission, recognition/ Affiliation fee received from colleges and other academic institution and contribution from research Projects are treated as additions to corpus fund. Income from investments of the fund is added to the fund. The corpus Fund is utilized for both Revenue and Capital expenditure based on the guidelines by the University Grants commission and Executive council of the Institution by crediting an equal amount to the Capital Fund. The Balance in the Corpus Fund are merged with the assets of the Institution by the balance in a separate Bank account, investment in RBI Bonds and Fixed Deposits with the Bank and Accrued interest on investments. 9.2 ENDOWMENT FUNDS Endowments are funds received from various individual donors, Trusts and other organizations, for establishing Chairs and for medals & prizes, as specified by the Donors. While each of the Endowment funds has its own investment there is one saving Bank Account for all the Endowment funds, as the un-invested balance against them are negligible. The income from investment of each Endowment Fund is added to the Fund. The interest on saving Bank a/c is allocated to all the Endowment funds in the ratio of the year end closing balances in each fund. The expenditure on Medals & Prizes is met from the interest earned on investment of the Endowment Funds and the balance is carried forward. In respect of Chairs, however, the corpus of the Endowment is also used. The balances are represented by Investment in RBI bonds and Fixed Deposits and balance in the saving Bank Account common for all Endowments, and Accrued Interest on Investments. 10. INCOME TAX The income of the Institution is exempt from Income Tax under Section 10(23C) (iiiab) of the Income Tax Act. No provision for tax is therefore made in the accounts. (28)

38 11. GOVT. GRANTS/SUBSIDIES: Government Grants and UGC grants are accounted on realization basis. However, where a sanction for release of grant pertaining to the financial year is received before 31 st March and the grant is actually received in the next financial year, the grant is accounted on accrual basis and an equal amount is shown as recoverable from the Grantor. To the extent utilized towards capital expenditure, (on accrual basis) government grants and grants from UGC are transferred to the Capital Fund. Government and IGC grants for meeting Revenue Expenditure (on accrual basis) are treated, to the extent utilized, as income of the year in which they are realized. Unutilized grants (including advances paid out of such grants) are carried forward and exhibited as a liability in the Balance Sheet. Negative Balance of recoverable grant in respect of previous years have been adjusted from Corpus fund. 12. INVESTMENT OF EARMARKED FUNDS AND INTREST INCOME ACCRUED ON SUCH INVESTMENTS: To the extent not immediately required for expenditure, the amounts available against such funds are invested in approved Securities & Bonds or deposited for fixed term with Banks, leaving the balance in Savings Bank Accounts. Interest received, interest accrued and due and interest accrued but not due on such investments are added to the respective funds and not treated as income of the Institution. 13. PRIOR PERIOD ADJUSTMENTS: The Institute has transferred the expenses accrued for gratuity & leave encashment through the income & expenditure account, earlier booked under the schedule 7 of current assets, in compliance with the Audit Para No. A2 of the C&AG Audit Letter No. SAR/NITK/ / /1549 dated to give the effect of this policy all the expenses pertaining to prior to are being booked as prior period expenses under specified schedule. 14. SPONSORED PROJECTS In respect of ongoing Sponsored Projects, the amounts received from sponsors are credited to the head Current Liabilities and Provision- Current Liabilities Other Liabilities _Receipts against ongoing sponsored projects. As and when expenditure is incurred/ advances are paid against such projects, or the concerned project account is debited with allocated overhead charges, the liability account is debited. In addition to Earmarked Fund for the Junior Research Fellowship funded by the University Grant Commission, Fellowship and Scholarships are also sponsored by various organizations. These are accounted (29)

39 in the same way as Sponsored Projects except that expenditure generally is only on disbursement of Fellowships and Scholarships, which may include allowances for contingent expenditure by the Fellows and scholars. The Institution itself also awards Fellowships and Scholarships, which are accounted as Academic expenses. 15. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS: (i) Provision: A provision is recognized when an enterprise has a present obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimates required to settle the obligations at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. (ii) Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one are more uncertain future events not wholly within the control of the university, or is a present obligation that arises from past events but is not recognised because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made. Contingent liabilities are disclosed and not recognised. Contingent assets are neither recognised not disclosed. (30)

40 NATIONAL INSTITUTE OF TECHNOLOGY, KURUKSHETRA SCHEDULE 24 NOTES FORMING PART OF THE ACCOUNTS 1. CONTINGENT LIABILITIES: ( in Lakhs) i) Court Case filed against the Institution, by former / present employees etc ii) Letters of credit established by the Bank on behalf of the Institution and outstanding iii) Disputed demands in respect of Municipal Taxes etc CAPITAL COMMITMENTS The Value of contracts remaining to be executed on Capital Account and not provided for (not of Advances) amounted to Rs. NIL as on (Previous year Rs NIL Crores). 3. FIXED ASSETS: Addition in the year to Fixed Assets in Schedule 4 of Rs. 3, (Rs. in Lakh) include Assets purchased out of Plan Funds Rs. 3, (Rs in Lakh), Non-Plan Funds (Rs Nil) and Library Books and other assets of the value of Rs 5.75 (Rs in Lakh) gifted to the Institution. The Assets have been set up by credit to Capital fund. In the Balance sheet as at and the Balance Sheets of earlier years, Fixed Assets created out of Plan funds and Fixed Assets created out of non-plan funds were not exhibited distinctly. The additions during the years from Rs. 3, (Rs. in Lakh), from plan, non- plan funds, and other funds, and the depreciation on those additions respectively have been exhibited distinctly in Sub Schedules A, B, C and D to the main schedule of Fixed Assets (Schedule 4) Fixed assets as set out in Schedule 4 do not include assets purchased out of funds of sponsored projects, held and used by the institution, as project contracts include stipulations that all such assets purchased out of projects funds will remain the property of the sponsors. (31)