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1 Internal Audit Report of CO, Noida

Internal Audit Report – Corporate Office, Noida

Report No. IA/CO/2013-14/3

Period Covered – October’13 to December’13

Report date: 23.05.2014


GM (BD)/ GM(F&A) / CA(C&P) / Head (Finance) / All HoDs

Sub: Internal Audit Report for the period October’13 to December ’13 (Q3) of Corporate Office, Noida

1.0 The team IA of Internal Audit department, comprising the members from Duliajan as well as Corporate office, Noida

conducted the Internal Audit of the corporate office, Noida for the quarter October’13 to December,’13. The audit areas,

which have been covered during the audit, have been enclosed herewith (Chapter 2). The audit has been conducted on the

basis of generally accepted audit standards in India.

2.0 The audit observations, based on the records / documents produced and the explanations given to the audit, are shown in

Chapter 3 with the Management‘s views duly incorporated there against.

3.0 Implementation of the recommendations of the audit should be completed as early as possible but not beyond the

implementation timeline specified in Chapter-3.

4.0 The Internal Audit Team is pleased to acknowledge the co-operation received from the concerned sectional Heads & their

representatives in conducting the Internal Audit.

Rupam Barua

Date: 23.05.2014 Head-(Internal Audit) (i/c) For Director (Finance)

CC: CMD / D (E&D) / D (HR&BD) / D(O) / D(F) / GM(F&A) i/c , Duliajan/ Head(Admin), Noida


Report No. IA/Corporate office /2013-14/3

CONTENTS

Chapter 1 Introduction …………………………………………………… 4 Chapter 2 Scopes & Road Map of Audit……………………………… 6 Chapter 3(a) Executive Summary ………………………..................... 7

Chapter 3(b) Detailed Audit Observations.................................... 12 Chapter 4 Annexure................................................................ 40 Chapter 5 Follow up Status of Previous Internal Audit………… 61


Chapter 1

1.0 Introduction :

The Corporate Office of Oil India Limited (OIL) , currently situated at OIL House, Plot Number 19, Sector –

16A, Noida, Dist. Gautam Budh Nagar, Uttar Pradesh 201301. This office has been registered by the

Inspector of Shops in Uttar Pradesh under the Uttar Pradesh Shops and Commercial Establishments Act,

1962. The functional Directors of the Company comprises of 5 Executive Directors including Chairman &

Managing Director (CMD) and Chief Vigilance Officer (CVO) along with their various support staff use to

operate from this office. The process of shifting the office of CMD, Director (HR&BD), Director (Operation)

and their concerned Executive Officers and Management Service Group have started during October, 2013

to SB Towers, Sector 16A, Noida which is adjacent to the Corporate office. The office of the Company

Secretary also operates from this office. In addition to facilitate the functioning of the Executive Directors,

various departments viz. Exploration including CEMG, Contracts & Purchase, HR & Administration,

Finance & Accounts, Internal Audit, Legal, Corporate -Public Relation, Co-ordination, Official

Language(Hindi), Business Development & Global, Renewable Energy(Wind & Solar), Planning & Technical

Adviser , Operation and HS&E, Corporate Affairs, IT and Vigilance department are housed in this office.

The electronic data security & safety a separate centre was also opened in this office which is known as

Disaster Recovery Centre. The CEMG group had shifted to New Office building at 24, IT Infrastructure

Building, Film City, and Sector 16A because of the expansion of their activities from May, 2013 only.

2.0 Background of conducting Internal Audit:

The Internal Audit of Corporate Office, Noida for the period from Oct’13 to Dec’13 of financial year 2013-

14, has been conducted by Internal Audit Department. The Audit has been conducted based on the audit

areas as approved by competent authorities. A team comprised of Shri Jyotirmoy Bhattacharya, Sr.

Manager (IA), Sri Arvind Kumar Sinha, Dy Manager (IA) , Shri B.L. Das, Sr.IAO and Shri Ashish Pathak,

Sr. IAO conducted the audit.


The audit for the aforesaid period has been conducted during the period from 24.02.2014 to 28.02.2014.

The Audit Report includes observations and recommendation of Team Internal Audit, related risk, and the

corresponding management’s comments received against thereon.

3.0 Audit Objectives: The objective of the internal audit has been to review the overall adequacy and

effectiveness of the internal controls systems and procedures to safeguard the assets and expenses in

compliance with laid down operating policies & procedures.

4.0 Date of Management’s Comment received –

The last leg of management’s comment against the audit observations from the Office were received on

23.05.2014 respectively.


Chapter 2

Scopes & Road Map of Audit 2.01 Scope and Approach

2.01.1 Scopes: The internal audit was conducted for the period from Oct’13 to Dec’ 13 and restricted

to cover the following audit areas/ functions only, due to paucity of time and manpower:-

1) Review of NELP JV Blocks and two Overseas blocks

2) Review of Purchases & Contracts

3) Review of the Fixed Assets

4) Miscellaneous Review

2.01.2 Approach: It was a Risk based audit and accordingly the risks associated with the observations

made on the above audit areas are measured and quantified wherever found justifiable. Approach to the

internal audit commenced with an overview of activities and documentation of the existing systems and

procedures. The adequacy, efficiency and effectiveness of internal controls were evaluated & tested by checking

a sample of transactions for the period covered by the audit. Adherence to the laid down standard policies and

procedures (wherever applicable) for each of the audit areas were examined. The balances referred in audit

report were taken from SAP during the course of our audit.

2.02 Risk Based Internal Audit

The concept of Risk based audit has been followed considering the following areas of risks:

1) Financial Risk: An event is recognised as a financial risk if there be any possibility of occurrence of financial loss to the Company due to that event of transaction.

2) Compliance Risk: A risk is identified as compliance risk if there be any deviation in legal or procedural obligations.

3) Operation Risk: A risk is identified as operational risk if any technical operation of a system is not done as per the norms or standard rules of operation.


Chapter 3 (Part a) Executive Summary of Audit Observations

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Audit Observation Recommendation Responsibility /

Implementation Timeline

1 Review of Overseas Non –Operated Block

Block- OML-142 (Sunterra Nigeria-2005)

Charging of Affiliate cost by SUNTERA ENERGY (SERIVES) INDIA

LIMITED (SESIPL) to SUNTERA Nigeria 205 Ltd

i. Audit has observed that the service agreement between the SESIPL

and SN205 proposed to have a mark-up of 10% over cost for providing

affiliate services to SN205.Whereas As Per section-II of Accounting

Procedure exhibit (B) the JOA, the services normally provided by the

Operator and its affiliates shall reflect the cost of affiliates excluding

profit for performing such services except otherwise stated in the

section 2.5.1, 2.6 and section 2.7.1.

ii. The audit has neither found any separate board approval of the

Sunterra Nigeria 205 Ltd for entering into such affiliate service

agreement, nor was any prior approval taken in the OC meeting.

i. As per the JOA, only the cost of

Affiliates services should be charged

excluding the profit element.

Therefore, the department is

requested to ensure that no profit

element on the cost has been charged

to the block.

ii. Proposal for charging the affiliate

service should have been discussed

in the OC Meeting and approval

should have obtained from the Board,

instead of putting up the matter to

the board nearer the time of the

expiry of the said service agreement.

GM(BD)

Immediate

compliance

2 PETROCARABOBO (BLOCK 1 NORTH & BLOCK 1 CENTRAL)

Issue related to secondment and manpower cost-

The audit has observed that various agreements such as Master

Service Agreement, Secondment Agreement etc between the PCB

(Petro Carabobo) and MSHs (Minority Shareholder) has not been

finalised

Issue related to the early production

It was observed and explained to the audit that the revenue is not

been recognized in the books of accounts of PCB for the early

Effort should be initiated for

Secondment Agreement to be signed

in order to formalize the existing

assignment of Minority Shareholders’

employees to Petrocarabobo and to

recognize their corresponding cost.

Since the Financial Statement of the

PCB is not available with the audit,

the audit would review the booking in

GM(BD)

Immediate

compliance


Sl.

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production due to non availability of rate. As per the Information since

inception, 1,059,507 Barrels Oil have been produced, up to

04.03.2014 out of which 7,53,908 pertains the financial year 2013

(Jan-Dec).

the books of the PCB in the

subsequent audit.

3 Review of Forex and Interest rate risk management policy-

i. As per Forex and Interest rate risk management policy prepared by

the consultant M/S A.V Rajwade & co and the report submitted by

consultant, a MIS reporting needs to prepare on regular basis showing

the open position of Forex exposure in the format prescribed by the

consultant. However the same has not been prepared on regular basis

and submitted to the management.

ii. Few of the banks empanelled for foreign currency transactions were

failed to meet the one of the empanelment criteria of average Net

Exchange Gain of more than Rs. 10 crore in the previous years.

iii. Total 17 banks have been empanelled for the processing of foreign

exchange transactions out of which 3 banks are PSU Bank. There are

21 transactions processed and out 21 (twenty one) transactions

processed, the PSU banks were selected on 11 (eleven) times for

processing the payment since they were the lowest bidder.

iv. Recently Oil has taken a short term bridge loan of US $ 1.03 bn

payable in one year and long term loan of US $ 250 million payable in

Five years and for that company have to pay the interest on regular

interval basis.

i. MIS reports should be prepared on

regular basis and should be

submitted to management as

suggested by the consultant.

ii. Selection criteria of the banks

should be followed while selection of

the banks.

iii. The empanelment of the banks

needs to be reviewed and possibility

should be explored to include more

PSU banks in the list.

iv. Viewing the exposure of the

foreign currency of OIL, the Forex

and Interest Rate Risk Management

policy needs to be reviewed and

framing of hedging policy against

Principal and interest payment of

loan should be looked into.

GM(F&A)/

Head(Finance)

For Immediate

compliance


Sl.

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4 Purchase requisitions (PRs) value of Rs.291.91 crore are lying

open in the System-

It is observed that the PRs amounting to as much as Rs. 292 crore

(approx) are lying open in the SAP system against which no Purchases

orders /Contracts have been issued.

The respective user departments are

advised to review such PRs and

ensure that no PO or contract has

been awarded against such PRs and

close such open PRs created in the

system by deleting the line item of

each PR.

All HoDs

Immediate

compliance

5 Service Entry Sheets lying open in the system-

Service Entry Sheets created by the all user departments of Corporate

office, Noida in the SAP system since 1st Dec’ 2005 to 31st Dec’13 and

observed that SESs value of Rs.1.34 crore are lying open in the

system against which no payments were processed.

All such open SESs should be

blocked/deleted to avoid any

duplicate payment in future.

All HoDs

Immediate

compliance

6 Lead time (PR To PO) analysis for the PO awarded during Q1-Q3

of the financial year 2013-14

During April to Dec’13, a total of 80 Pos were awarded The average

lead time was 75 days from PR to awarding the Order. There are few

Pos where lead time was approximately one year. The range of lead

time is maximum 336 days to minimum of 0 days

Efforts should be made to analyse

such materials /cases where the lead

time period generally take are more

than normal and efforts should be

made reduce the lead time period for

such material/cases.

CA(C&P)

For future

compliance

7 Lead time (PR To WO) analysis for the WO awarded during Q1-Q3

of the financial year 2013-14

During April to Dec’13, a total of 68 WOs were awarded The average

lead time was 75 days from PR to awarding the Order. There are few

WOs where lead time was approximately one year. The range of lead

time is maximum 542 days to minimum of 1 day

Efforts should be made to analyse

such services where the lead time

period generally take are more than

normal and efforts should be made

reduce the lead time period for such

services /cases.

CA(C&P)

For future

compliance

8 Reconcilliation of Loans &Advanes

The audit has reviewed the reconciliation of GLs of Loans and advance

between the balance showing in the FI module and HR module as on

31.12.2013 and found that balances of GLs are not reconciled

between the FI and HR module.

The balances of GLs of Loans and

advance between the FI module and

HR module should be reconciled on

quarterly basis

Head(Finance)

Future compliance


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9 Old outstanding Vendor Accounts-

(a) Income Tax: - An amount of Rs 12,08,658 for the claim against

excess tax deposited are lying open in the system from Jan’2006

onward

(b) Old Outstanding against vendor Accounts (OIL executive

deputed in various agencies)

Some of the vendor accounts have the outstanding balance the

amounts are outstanding against the Vendor since beginning of the

financial year

Efforts & follow up should be made

with the respective authorities to get

the refund of excess amount paid.

Efforts & follow up should be made

to recover the outstanding dues at

the earliest

Head(Finance)

Future compliance

10 Review of Parks documents created up to Feb’2014-

Some of the documents are parked in the system and lying open in

the system

The parks documents should be

reviewed the documents which are no

longer required should be deleted

from the system

Finance Dept

Future compliance

11 Review of Cash and Bank-

Cash in hand amounting to Rs.2,94,780/- was verified on

12.03.2014, Out of which Rs. 6,650 was in soiled Notes

Soil notes should be changed at

regular intervals

Finance Dept

Future compliance

12 Bank Reconciliation & Review of Bank Accounts-

1. Allahabad Bank, New Delhi A/c No.522010 Some of the cheques deposited from F.Y 2010 but not cleared till

Dec’’13.

2. Review of Banks operations-

Some Bank accounts are lying idle from last two years without having

any transaction

Old outstanding cheques need to be

reviewed and reconciled at regular

interval.

The requirement of operation of these

accounts needs to be reviewed and

decision may be taken to close such

inoperative accounts.

Finance Dept

Future compliance

13 Miscellaneous Observations-

TDS u/s 194J Professional Fees (G/L A/c 201003)-

An amount of Rs 189012/- is appearing as credit balance under the

G/L- 201003 u/s 194 J and the same is not matching with the tax

deposits made with the Govt Accounts

Necessary action should be taken to

reconcile the Statutory GL accounts

on monthly/quarterly basis

Finance Dept

Future compliance


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14 Reconciliation of GR/IR & SR/IR Account-

An amount of Rs.1.86 lakh is lying open under the GL- GR/IR –Stores

& Spares (GL-220000) as on 31.12.2013. In the above cases, GRNs

were raised but LIV against such document is still pending.

An amount of Rs. 1.27 crore is lying open under the GL- SR/IR –

Services (GL-221000) till 31.12.2013.

Necessary action should be taken to

reconcile GR/IR & SR/IR Accounts at

regular interval to avoid pilling up

such old items.

Head (Finance)/CA

(C&P)

Future compliance

15 Variance Analysis of GLs related to Austerity Measure-

IA has reviewed variance analysis of GLs related to Austerity Measure

for the period of April to Dec ’13 with the Budgeted amount as well as

the Actual of the corresponding previous year period.

Reason for abnormal variances more

than 20 % should be looked into and

corrective actions should be taken

wherever necessary to minimize such

expenditures.

GM(F&A)

Future compliance

16 Expenditure Management – Economy Measures and

Rationalization of Expenditure

Ministry of Petroleum and Natural Gas(MoP&NG) vide their office

Memo no. G-38011/80/2013-Fin.I dated 20/09/2013 enclosing an

Office Memorandum (OM) dated 18/09/2013 has advised All PSUs

including OIL under its administrative Ministry to ensure strict

compliance to the Economy instructions contained in the said OM.

Accordingly D(HR&BD) vide his letter no. OIL/70/5 dated

01/10/2013 advised all concerned to ensure strict compliance.

i. No circular / letter has been issued by Finance Department this

year for the similar instruction of MoP&NG/MOF ;

ii. No statements are being compiled by Corporate Finance for

Corporate Office on quarterly basis and put up to the top

management for compliance of earlier

The Finance department should

compile reports on austerity

measures on regular basis (Quarterly

basis) and submit the management

for their appraisal.

GM(F&A)

Future compliance


Chapter 3 (Part b)

Detailed Audit Observations Sl.

No.

Observations Risk Recommendations Management Comments

1 Review of Overseas Non –Operated Block Block- OML-142 (Sunterra Nigeria-2005)

Charging of Affiliate cost by SUNTERA ENERGY (SERIVES)

INDIA LIMITED (SESIPL) to SUNTERA Nigeria 205 Ltd The SUNTERA ENERGY (SERIVES) INDIA LIMITED an affiliate

of SRL 142 Holding Company has been providing

administrative support to Sunterra Nigeria 205 Ltd. A service

agreement was made between Suntera Nigeria 205 Limited

and Suntera Energy Services (India) Private Limited (SEISPL)

on 1st April 2010. As per the terms of the service agreement

the remuneration payable to SESIPL for the performance of

the Service shall comprise the costs incurred by SESIPL for

the provision of the services along with a mark-up of 10%. The

said agreement is effective from 1st April 2010 and will remain

in effect for a period of three (3) years. The validity of the

agreement was valid up to 31.03.2013.

As per the Audited Accounts (Note-16- e-related party

disclosure) of the SUNTERA Nigeria 205 Ltd for the financial

year 2011 and 2012 the affiliate company provided

administrative support to the company during 2012

amounting to $144,493, 2011 $245,438 & 2010 $ 41,452

Audit Observation:-

(1) Charging of cost plus a mark-up of 10% by affiliates:-

As Per section-II of Accounting Procedure exhibit (B) of the

JOA, the services normally provided by the Operator and its

1. As per the

JOA, only the

cost of Affilcates

services should

a) Management comment-

1. This issue was also raised

during the earlier audit of


Sl.

No.


affiliates shall reflect the cost of affiliates excluding profit for

performing such services except otherwise stated in the

section 2.5.1, 2.6 and section 2.7.1. However audit has

observed that the service agreement between the SESIPL and

SN205 proposed to have a mark-up of 10% over cost. The

audit has come across the reply of the SESIPL where it has

explained that the Indian tax law mandate under transfer

pricing rule that any provision of service to related or

associate party shall be at a reasonable profit margin as per

rule and as prevailing in the industry. Audit does not have

access of the documents of charging the affiliate services to

SN205 and this issue can only be taken at the time of Non-

Operator audit of SN205.

(2) The audit has neither found any separate board approval

of the Sunterra Nigeria 205 Ltd for entering into such affiliate

service agreement, nor was any prior approval taken in the

OC meeting. The audit was given to understand that the issue

was taken in the Board meeting of M/s Sunterra Nigeria 205

Ltd on dated 18th October’2012.

be charged

excluding the

profit element.

Therefore, the

department is

requested to

ensure that no

profit element on

the cost has been

charged to the

block.

2. The audit is of

the opinion that

before entering in

to the affiliate

Service contract,

the proposal

should have

discussed in the

OC Meeting and

approval should

have been

obtained in the

Board, instead

putting the

matter to the

board nearer the

time of the expiry

of the said service

SN205. After that this matter

was put up to the Board.

Board approved the Service

Agreement. In the Board

meeting Suntera had said that,

Mark-up has been kept in the

SA to avoid any tax & penalty

and Suntera is charging the

actual cost only. Whether

Suntera is charging the actual

cost or Actual cost + Mark-up,

can be checked during the

audit of SN205.

2. OC came into existence only

after the mentioned Board

meeting on Nov 18, 2012 and

since then all the matter comes

to OC first before putting up to

the Board.

3. Draft SA has been prepared by OIL in the same line as of executed between Suntera and

SN205 Limited and has been


Sl.

No.


(3) As per minute of Board meeting of M/s Sunterra Nigeria

205 Ltd on dated 18th October’2012 it was agreed that a

similar service agreement would be made between OIL & M/s

Sunterra Nigeria 205. Even though OIL has taken up the step

to formulate such agreement since November 2013, but still

the same has not been finalized. It was given to understand

that the said service agreement is under scrutiny. The audit is

of the view that the Oil India Limited is also providing affiliate

services to the SUNTERA Nigeria 205 Ltd. For example two of

the executives have already visited the Nigeria for 3D/2D

seismic QC/QA work for a substantial period of time (21 days

each) and in future as the activities would increase, more

number of executives would be required for such works. In OC

Meeting of SN205 held on 14th May 2013 it has already been

agreed that a 21 days roster would be made for deputing the

executive of each partner for 3D/2D seismic QC/QA work.

Accordingly OIL has already made roaster of various

executives to be posted for SUNTERA Nigeria 205 Ltd. This

cost incurred in this regard would be direct cost apart from

the other indirect cost being incurred for the aforesaid block.

(4) No time writing is being done for the personnel engaged in

handling the various project under Business Development.

Therefore, it would be difficult for charging any manpower cost

to SN 205 in absence of proper time writing of the various

executives.

agreement.

3. Service

agreement should

be made between

Sunterra Nigeria

205 and Oil India

Limited at the

earliest. It is to be

noted that OIL

has not been able

to charge the

affiliates cost as

done by SESIPL

since April 2010.

sent to IOC for their view. However, IOC unwillingness to

execute the SA and hence charging the manpower cost to

SN205 delaying the execution of SA. Discussion is going on with IOC for the same and If

IOC agrees, the same will be executed. Further, Since 2008 to 2012,

no physical activities was

carried out in the block and

decision for charging the

manpower cost was also taken

only in Nov, 2012. Therefore,

OIL can charge the Manpower

cost for the year 2013 and

onwards.

4. Time sheet for the personnel

involved in this particular

project are in place and will

share for charging once the SA

get executed with SN205.

b) Implementation Timeline:

Immediate compliance

c)Implementation

responsibility:

GM (BD)


Sl.

No.


2 PROJECT-PETROCARABOBO (BLOCK 1 NORTH & BLOCK 1

CENTRAL)

Master Service Agreement between Mixed Company PCB (Petro

Carabobo) and CICSA (Carabobo Ingenieria Y Construcciones

SA)-As per 4.2 of the mixed company contract-Annex K

(I) Issue related to secondment and manpower cost-

The audit discussed the issue related to Non finalisation of

various agreements such as Master Service Agreement,

Secondment Agreement etc between the PCB (Petro Carabobo)

and MSHs (Minority Shareholder). It was made to understand

to the audit that CICSA’s organizational structure and the

Organizational Structure of the Mixed Company and the basic

terms of the Agreement for the Minority Shareholders Staff

Assigned to Petrocarabobo has been finalized and confirmed

by the PCB Board.

View above, Audit has observed that all the aforesaid

agreements has not yet finalised in toto and are under vaious

stages of finalisation. Since the Agreement has not been

finalised billing for the secondment to the PCB/CICSA could

not be done in the absence of any agreement for rate of

charging the manpower cost.

Blockage of

Fund due to

payment of

executive

(I) Effort should

be initiated for

Secondment

Agreement to be

signed in order to

formalize the

existing

assignment of

Minority

Shareholders’

employees to

Petrocarabobo

and to recognize

their

corresponding

cost.


OIL has deputed its executives

through INDOIL Netherlands

BV to two companies in the

project, the Mixed Company

i.e. PetroCarabobo SA and the

Service Company, CICSA.

There are two secondment

agreements with these two

companies. Now, let us see the

status of these two agreements

from the two companies’s

perspective:

Mixed Company: The one

with Mixed Company has not

been signed yet. However,

Mixed Company has agreed

the organisational structure

and secondment by the MSHs.

Mixed Company has also

been regularising the

secondment through regular

board meetings. The minutes

could be arranged to you in

this regard.

CICSA: The secondment

agreement between the parters

has been agreed and signed.


Sl.

No.


(II) It was explained that due to more Manpower seconded by

Repsol to CICSA/PCB, the Repsol has claimed that it would be

(II) It is suggested

that OIL should

also do internal

This agreement has clause

(Clause 12) which says that

the agreement is subjected to

the approval of Mixed

Company. Though Mixed

Company has approved the

Secondment Agreement of

CICSA but in part. The rate

part has not been completely

agreed by the Mixed Company.

That is primarily main reason

why we have not started

invoicing.

The Master Service

Agreement: This is still under

discussion. However, for

solving the delegation problem,

Mixed Company has been

giving delegation time to time.

In return, CICSA prepares a

budget based on that

delegation and takes the

approval from Mixed Company

for performing the works as

per delegation.

(II) (a) and (b) It may be noted

that the Steering Committee

has not taken any stand so far


Sl.

No.


incurring more losses than the other minority shareholders in

case of lower rate agreed by the PCB. The Repsol has put up a

proposal to share such excess losses among the remaining

MSHs. The issue has been recorded in the steering committee

on the captioned subject.

In this regards the audit may kindly be appraised the

following:

(a) Details of Steering committee Report (CICSA) related

charging of the manpower cost to CICSA and PCB.

(b) The detail calculation of such losses if any, (If the same is

not in the steering committee Report) claimed by Repsol.

(c) Oil India Internal Calculation, if any, done for the

Manpower cost seconded for CICSA and PCB.

(d) Way forward to resolve the issue related to secondment.

calculation for its

manpower, taking

all the relevant

factors, after and

allocating all the

relevant overhead

cost.

as per the latest minutes of

Steering Committee.

Repsol has been proposing

various scenarios. However,

this has not been agreed so far

to honour those losses which

are considered to be

perceptional.

(c) So far OIL has not done any

calculation for the Manpower

cost.

(d) As a way forward, we would

have to do the followings

1. Agree on the secondment

agreement.

2. Get into a Technical Service

Agreement with INDOIL.

3. Start invoicing INDOIL as

per the agreed rate minus a

mark up to be charged by

INDOIL.

4. INDOIL would invoice

Mixed Company and CICSA

as per agreed rate.


Sl.

No.


(III) Issue related to the early production

It was observed and explained to the audit that the revenue is

not been recognized in the books of accounts of PCB for the

early production due to non availability of rate. As per the

Information since inception, 1,059,507 Barrels Oil have been

produced, up to 04.03.2014 out of which 7,53,908 pertains

the financial year 2013 (Jan-Dec).

(III) Since the

Financial

Statement of the

PCB is not

availalbe with the

audit, the audit

would review the

booking in the

books of the PCB

in the subsequnet

audit.

(III) As the price for the

Naphtha Diluted crude has not

been agreed so far, the exact

amount could not be

mentioned in the books.

However, in the latest financial

report Quantity of the same

was mentioned.



c) Implementation

responsibility:

GM (BD)

3 Review of Forex and Interest rate risk management

policy-

A policy for Forex and Interest rate risk management policy

prepared by the consultant M/S A.V Rajwade & co. for OIL

and put up at the 61st Audit committee meeting on 13.04.2012

to be implemented from 01.06.2012. The same was put up to

the Board on 14.09.2012 and approval was obtained for

following-

a. Implementation of the Risk Management policy

b. Constitution of the Forex Risk Management Committee

(FRMC) comprising of DF and D (HR&BD)

c. Approval was requested to authorize FRMC to nominate the


Sl.

No.


person to undertake foreign exchange currency transaction for

front office and back office.

d. To authorise FRMC to approve policy for procurement of

Foreign exchange for overseas remittances

e. Authorize the DF to nominate and authorize the office for

execution of Forex related transaction for purchasing foreign

currency in excess of US $1 mn and above.

f. Also recommend empanelment of Banks for foreign currency

transaction and limit the no. of banks while dealing in foreign

currency.

View above, a note was put up to the DF and D (HR &BD) on

02.05.2013 to convene a FRMC meeting on 07.05.2013.

However, the first FRMC meeting has been held on 31.01.2014

after a lapse of apprx. 15 months from the date of approval of

Board.

Also till the date of audit, payments are being made against

foreign transactions from May’13 for about of $73.7mn till

31.12.2013, without obtaining such approval of FRMC

authorizing the person to deal with the foreign currency

transaction for more than us $ 1 mn.

Observation-

1. First FRMC meeting was held on 31.01.2014, however till

the date of audit, the minutes of the same has not been signed

by the members.

Neccesary effort

should be made

to get the minutes

signed at the

earliest to

implement the

decision of FRMC

Management comment-

The minute of the FRMC

meeting held on 31.01.2014

has been finalised and

approved by FRMC.

Although formal FRMC

meetings could not be held


Sl.

No.


2. As per the report submitted by consultant, a MIS reporting

needs to prepare on regularly basis showing the open position

of Forex exposure in the format prescribed by the consultant.

However the same has not been prepared on regularly basis

and submitted to the management.

meeting.

MIS reports

should be

prepared on

regular basis and

should be

submitted to

management.

periodically, the foreign

currency transactions has

been under constant

monitoring and had been

apprised to management from

time to time for specific

approvals.

The forex exposures prior to

the recent long term

borrowings availed by OIL was

not very large and mostly

covered by natural hedge that

is available in the form of

inventory of crude oil and LPG.

Even on consideration of the

interest outgo on the forex

loans at present, the open

exposure are likely to remain

within the open position limit.

2. The foreign currency

exposure is being continuously

monitored. The net open

exposure of US$ 50 mn set as

per the policy is sufficient as of

now as compared to the forex

exposure of OIL and the same


Sl.

No.


3. It was also suggested by the Consultant to empanel the

banks for foreign currency transactions. One of the

empanelment criteria of the Bank was that the Bank should

have average Net Exchange Gain of more than Rs. 10 crore in

the previous years. However, it was observed that few of the

banks empanelled namely Barclays Bank PLC, BNP Paribas

has shown the negative foreign exchange revenue in the F.Y

Empanellement

criteria of the

banks should be

followed while

selection of the

banks.

has not been breached.

It may also be noted that as

per the policy, net open

exposure is calculated after

deduction of the inventory

from the total foreign currency

exposure, which acts as a

natural hedge against the

outstanding exposure in

relation to the foreign currency

payables.

With reference to the recent

foreign currency overseas

borrowings, the debt servicing

liability is also expected to be

within the overall net open

position limit. However, it is

noted to put up detailed MIS

to the Management on regular

basis.

3. Before finalisation of the

policy, OIL had floated enquiry

to the banks for availing

buyers’ credit and based on

the detailed scrutiny, the

panel had been fixed. Those

empanelled banks list is being

utilised for procurement of


Sl.

No.


2011-12, but the banks have been considered for transaction

for 2013-14. Further, the revenue figure for F.Y 2012-13 has

not been updated till date. This needs to check and

empanelment of bank needs to be reviewed on the basis of

updated result.

4. It has further been observed that total 17 banks have been

empanelled for the processing of foreign exchange transctions

out of which 3 banks are PSU Bank. There are 21 transactions

processed with Banks from May’13 to Dec’13 and the bank

who submitted the lowest conversion rate was selected for

foreign payment. The audit has noted that out 21 (twenty one)

transactions processed, the PSU banks were selected on 11

(eleven) times for processing the payment since they were the

lowest bidder.

5. Recently Oil has taken a short term bridge loan of US $

1.03 bn payable in one year and long term loan of US $ 250

million payable in Five years and for that company have to pay

the interest on regular interval basis. Hence, by looking the

exposure of foreign currency, the Forex and Interest Rate Risk

Management policy needs to be reviewed and framing of

The empanelment

of the banks

needs to be

reviewed and

possibility should

be explored to

include more PSU

banks in the list.

Viewing the

exposure of the

foreign currency

of OIL, the Forex

and Interest Rate

Risk Management

policy needs to be

foreign currency.

With regard to the observation

that few empanelled banks

have failed in meeting

minimum average exchange

profit criteria, it may be noted

that this is not an exclusion

criteria as per the policy.

These banks have been kept in

the panel based on the

remaining criteria for selection

of the banks

4. Noted. During the next

review for the empanelment of

banks, it will again be explored

if other PSU Banks express

their interest in the forex

transactions with OIL.

5. M/s. A.V. Rajwade & Co.

Pvt. Ltd. had reviewed the

policy with specific reference to

the hedging of ECB loan and

similar future forex

borrowings. The revised policy

has been approved by the


Sl.

No.


hedging policy against Principal and interest payment of loan

should be looked into. Further a regular MIS regarding

hedging cost, currency movement should be submitted to the

management for monitoring the exposure on ECB and the

bidge loan recently taken by OIL.

reviewed and

framing of

hedging policy

against Principal

and interest

payment of loan

should be looked

into .

Board in its 439th meeting

held on 28.01.2014.

As per the policy, monitoring

of the forex payables is being

done on a 12 months rolling

basis for which the net open

position is set. As the US$ 250

million exposure is a long term

exposure due for repayment

after five years, as per the

policy it need not be

considered for hedging

immediately but can be kept

under constant monitoring

and may be actively

considered for hedging in the

5th year when the exposure

will be due within one year.

As far as, the US$ 1.03 bn

bridge loan is concerned, the

same was of short term nature

and a major part of it has been

replaced with long term forex

loans raised through Bond

issue.

As mentioned in reply to point

no. 2, the foreign currency

exposures are being monitored


Sl.

No.


regularly. Considering the

interest outgo on the forex

loans, the open exposure on

12 months rolling basis are

likely to remain within the

open position limit. However

as suggested, the MIS on the

open forex exposure will be

circulated to FRMC on a

regular basis.



c)Implementation

responsibility:

Finance Department

4 Purchase requisitions (PRs) value of Rs.291.91 crore are

lying open in the System-

The audit has reviewed the Purchase requisitions created by

all the user departments of Corporate office, Noida in the SAP

system since 1st Dec’ 2005 (from the date of implementation of

SAP in Corporate office) to 31st Dec’13 and observed that the

PRs amounting to as much as Rs. 292 crore (approx) are lying

open in the SAP system against which no Purchases orders

/Contracts have been issued.

It has also been observed that in few of the cases, the PR has

been created by employees of other department on request of

the user departments. In such cases the person who has

Financial

Risk

Wrong MIS

Therefore, the

respective user departments are advised to review

such PRs and ensure that no

PO or contract has been awarded against such PRs

and close such open PRs created

in the system by deleting the line item of each PR.


Departments are in the

process of deleting open PRs in

the system and will be

completed shortly.



c)Implementation


Sl.

No.


created the PR appears to be from user department.

Therefore, it was very difficult to find out the actual user

department of the respective PRs.

Hence, the user department of PRs has been identified on the

basis of the ‘’Name or Dept’’ shown in the column ‘’ Requested

By’’ as generated from the SAP system as provided in the

Annexure ‘’A’’

A department wise list of PRs lying open in the SAP system is

given vide ‘’Annexure A’’.

Further, a detail list Purchase requisitions with department

-wise has been circulated to the department for their

necessary action.

The report has been compiled and prepared on the basis of

user department identified on the basis of ‘Request by’’ column

appearing in the Annexure.

A year wise breakup of the open PRs is given below-

F.Y Rs. (in lakh)

2005-06 4.38

2006-07 24.32

2007-08 383.87

2008-09 57.63

2009-10 2307.05

2010-11 1278.33

2011-12 1035.48

2012-13 21872.07

2013-14 2227.54

Grand Total 29190.67

It appears from the above table that out of Rs. 292 crore open

till Dec’13, PRs value of Rs. 269 crore were created in the

responsibility:

i. C & P Department

ii. Admin

iii. Civil

iv. PR

v. E&D

vi. BD

vii. CS

viii, IT

ix. CMC

x. Corporate Affairs

xi. Personnel

x. Audit

xi. F&A

xii. Vigilance

xiii. Planning

xiv. HSE

xv. Geosciences

xvi. DF’s Office

xvii. CMD’s Office

xviii. Legal


Sl.

No.


system till March’13 which appears to be no use.

Therefore, the respective user departments are advised to close

such open PRs created in the system by deleting the line item

of each PR.

5 Service Entry Sheets lying open in the system-

The audit has reviewed the Service Entry Sheets created by

the all user departments of Corporate office, Noida in the SAP

system since 1st Dec’ 2005 to 31st Dec’13 and observed that

SESs value of Rs.1.34 crore are lying open in the system

against which no payments were processed.

It has also further been observed that some of the SESs have

been created by the other employees instead of the user

departments to whom it actually pertains. In such cases it was

very difficult to find out the respective user departments of

SESs and therefore, the report has been generated and

prepared on the basis of Purchasing group as appeared

against each SES in the SAP system. Further some of SESs

are created with zero value also.

Further, a detail list SESs with Purchasing group & creator

name-wise has been circulated to the department for their

necessary action A break up of total value of SESs lying open

Department wise is given below-

The list of Opens SESs lying open is given vide Annexure B.

Purchasing Group

Description Amount (Rs.)

Del- Expl. & Dev. 383

Financial

Risk

All such open

SESs should be

blocked /deleted

to avoid any

duplicate

payment in

future.


Departments are in the

process of deleting open SES

in the system and will be

completed shortly.

b)Implementation Timeline:


c)Implementation

responsibility:

i. E&D

ii. Admin

iii. Civil

iv. C&P

v. IT

vi. PR

vii. Audit


Sl.

No.


Del-Administration 2988348.98

Del-Audit & Co.Sec 0

Del-Civil 513530.22

Delhi-Cont & Purch 9091928.23

Del-Inf.Technology 825981.99

Del-Pub. Relation 0

Grand Total 13420172.42

View above, the user departments are requested to review

such open SESs lying in the SAP system and ensure that no

payment has been made against such SES before deleting the

SES in the system.

6 Lead time (PR To PO) analysis for the PO awarded during

Q1-Q3 of the financial year 2013-14

The Internal Audit has done the lead time analysis for PR to

PO for the purchase order awarded during the Q1 to Q3 of the

financial year 2013-14. During the aforesaid period a total of

80 POs were awarded The average lead time was 75 days from

PR to awarding the Order. There are few POs where lead time

was approximately one year. The range of lead time is

maximum 336 days to minimum of 0 days. A detail of extreme

cases is given below.

Purch.

Req. PR Date PO PO Date-2

Lead

Time

1611232 13-Aug-12 7508563 15-Jul-13 336

1612554 25-Apr-13 7508347 25-Apr-13 0

Information audit has also done the lead time analysis for

other spheres during the financial year 2013-14. A brief of the

Operational

Risk

Efforts should be

made to analyse

such materials

/cases where the

lead time period

generally take are

more than normal

and efforts should

be made reduce

the lead time

period for such

material/cases.

a) Management comment

Reply yet to receive


For future compliance

c)Implementation

responsibility:

C&P Department


Sl.

No.


same is attached for ready reference.

Sphere Period of audit

No of POs

taken for

sample

Lead Time

(Days)

RP Q1-Q4- (2012-13) 99 146

PL Q1-Q3- (2012-13) 399 92

KOL Q1-Q3- (2012-13) 503 185

BEP&KG Q3- (2012-13) 25 69

CO Q1-Q3- (2013-14) 80 75

A detailed list of lead time analysis is given vide Annexure-C

7 Lead time (PR To WO) analysis for the WO awarded during

Q1-Q3 of the financial year 2013-14

The Internal Audit has done the lead time analysis for PR to

WO for the work orders awarded during the Q1 to Q3 of the

financial year 2013-14. During the aforesaid period a total of

68 WOs were awarded The average lead time was 75 days from

PR to awarding the Order. There are few WOs where lead time

was approximately one year. The range of lead time is

maximum 542 days to minimum of 1 day. A detail of extreme

cases is given below.

Purch. Req. PR Date WO WO Date-2

Lead

Time

2211127 20-Jan-12 8111812 15-Jul-13 542

2214374 26-Jun-13 8111749 27-Jun-13 1

a) Management comment

Reply yet to receive


For future compliance

c) Implementation

responsibility:

C&P Department


Sl.

No.


8 Reconciliation of Loans and advances-

The audit has reviewed the reconciliation of GLs of Loans and

advance between the balance showing in the FI module and

HR module as on 31.12.2013 and found that balances of GLs

are not reconciled between the FI and HR module. The

reconciliation statement is given below-

Reconciliation of Loans and Advances (Corporate office)

Balance as on 31.12.2013

Sl

N

o Type Of Loan

Loan

Type

GL

Head As per GL

As per payroll

(PC00_M99_CLO

G Diff

1 CAR Loan

3003 &

3004 560402 34,820,590.87 32,340,111.87 2,480,479.00

2 HBA(Old & new)

3000 &

3001 560400 9,408,071.46 83,030,161.46 -73,622,090.00

3

Second Advance

HBL 3002 560401 1,510,586.29 733,588.29 776,998.00

4 Furniture Loan 3007 560406 1,809,581.99 1,589,482.00 220,099.99

5 Computer Loan 3008 560405 299,750.00 299,750.00 0.00

6

Children

Education loan 3330 560411 5,103,641.00 4,528,141.00 575,500.00

7

Adv To Emp -

Festival Advance 3011 560303 566,081.00 506,081.00 60,000.00

8

Loan To Emp -

Scooter/Motor

Cycle Loan

(brand new) 3005 560404 175,695.00 158,195.00 17,500.00

9 Multi purpose 3022 560325 3,474,648.00 3,118,481.00 356,167.00

Total 57,168,645.61 126,303,991.62 -6,91,35,346.01

Compliance

Risk

Wrong MIS

The balances of

GLs of Loans and

advance between

the FI module

and HR module

should be

reconciled on

quarterly basis

.


The actual difference as on

31.12.13 is only Rs.17,30,

354.99 instead of Rs.6,

91,35,346.01 reported by

Audit.

The detail reply is given Vide

Annexure-F


Future compliance

c)Implementation

responsibility:

Finance Department


Sl.

No.


9 Old outstanding Vendor Accounts-

(a) Income Tax: - An amount of Rs 12,08,658 for the claim

against excess tax deposited are lying open in the system from

Jan’2006 onward. Almost 8 years have passed since the

excess payment was made, The details of the correspondence

with the Income Tax Department regarding recovery of the

said amount could not be available as the case is very old. The

details of the GL are as follow.

Assignme

nt Doc-No Type

Posting

Date Amount Text

095/064 2605001854 SA 01.01.2006 906,233.00

Claim against

excess deposit to

Income Tax Dept.

20060331 2605002502 SA 31.03.2006 302,425.56

excess tax

deposited against

sec.192 to be

claimed

Total 1,208,658.56

(b) Old Outstanding against vendor Accounts (OIL executive

deputed in various agencies)

In most of the cases the vendor accounts have the outstanding

balance for the Oct’13 to Dec’13 except the following four

cases where the amounts are outstanding against the Vendor

since beginning of the financial year.

Financial

Risk

Wring MIS

Efforts & follow

up should be

made with the

respective

authorities to get

the refund of

execss amount

paid

Efforts & follow

up should be

made to recover

the outstanding

dues at the

earliest


These cases are very old. Sufficient documents are not

available at this stage for claiming the refund. Accordingly write off action is

being proposed.



c)Implementation

responsibility:

Finance Department


Sl.

No.


Sl

No

Name Vendor

No

Deputation

on

Amounts

(Rs)

Remarks

1 Pawan Kumar 501090 MoP&G 30,27,318 Debit Note for

the Period

Apr’13 to Dec’13

2 Chabin Chetia 503003 PCRA 16,03,154 Debit Note for

the Period


3 Kanti Lal Tak 503526 PCRA 31,18,084 Debit Note for

the Period


4 Prashanta K

Purukaysatha

503628 DGH 23,47,724 Debit Note for

the Period


Total 1,00,96,280

The reasons for non-receipt of the above mentioned amount

and also action taken towards realisation of the same may

please be furnished to the audit.

10 Review of Parks documents created up to Feb’2014-

Sl.

No

Doc. No Fiscal

Year

Posting

Date

User Entry Date

1 1213000387 2013 2-Aug-13 99490 6-Oct-13

2 8613009996 2013 23-Sep-13 99490 23-Sep-13

3 8613013908 2013 8-Nov-13 99490 8-Nov-13

4 2613006706 2013 30-Nov-13 99490 5-Dec-13

5 8613017433 2013 19-Dec-13 99490 19-Dec-13

6 8313015081 2013 6-Jan-14 99968 6-Jan-14

7 8613018955 2013 7-Jan-14 99968 7-Jan-14

The parks

documents

should be

reviewed the

documents which

are no longer

required should

be deleted from

the system


We have already posted or

deleted the parked items

mentioned above


For Future compliance


Sl.

No.


8 1213000732 2013 8-Jan-14 99490 6-Feb-14

9 1213000828 2013 10-Feb-14 99490 9-Mar-14

10 2613009375 2013 10-Feb-14 99968 10-Feb-14

11 2613009376 2013 10-Feb-14 99968 10-Feb-14

12 2613009454 2013 13-Feb-14 99968 13-Feb-14

13 2613009744 2013 25-Feb-14 99968 25-Feb-14

It appears that the parks documents up to December’2013 are

no longer required and few of the cases have already been

settled through the other documents.It is also pertinent to

mention that the provision is required to be taken in the

Quarterly accounts for the documents remains parked on the

closing of the concerned Quarter.

c)Implementation

responsibility:

Finance Department

11 Review of Cash and Bank-

Cash in hand amounting to Rs.2,94,780/- was verified on

12.03.2014 (date of Audit) and found to be comprised of the

following denominations:

Sl.No Currency No Value

1 1,000 103 1,03,000

2 500 205 1,02,500

3 100 600 60,000

4 50 3 150

5 20 1246 24,920

6 10 420 4200

7 5 Rup Coin

2 10

Total 2,94,780

Out of the above, Rs. 6,650 was in soiled Notes comprising 3

Notes of the denomination of Rs.1000,5 Notes of the

denomination of Rs.500, 10 Notes of Rs.100 ,3 Notes of Rs.50 .

Soil notes should

be change at

regular intervals


We are in the process of changing the soil notes

received from the executives/employees of OIL.


Future compliance

c)Implementation

responsibility:

Finance Department


Sl.

No.


12 Bank Reconciliation & Review of Bank Accounts-

On checking BRS of the following Banks , the Audit observed

the following:

1. Allahabad Bank, New Delhi A/c No.522010

Cheques deposited for Rs.1,22,779/- in a/c no 522012 but

not cleared within 31.12.2013.The following old Cheques are

to be reviewd and checked:

Document

No Doc. Date Amount Text

1410010813 13.07.2010 4,500.00

Check withdrawal totals

posting

1410036590 23.03.2011 4,599.00


posting

1411031639 12.01.2012 1,600.00


posting

1413021160 11.10.2013 20,000.00


posting

1413024691 14.11.2013 20,000.00


posting

1413027657 10.12.2013 500 Check withdrawal totals postng

2. Review of Banks operations-

It was observed that no transactions were made in the

following Banks and the same was raised in last Qtr Audit-

A/C NO Bank Name Amount Remarks

520010 SBI-New Delhi-A/C No.

1000578087-Main

70,374.58 No transaction

was made after

06.03.2010

521010 UBI-New Delhi-A/C No. 1,96,745.58 No transaction

Financial

Risk

Old outstanding

cheques need to

be reviewed and

reconciled at

regular interval.

Existence

/Operation of

such bank

accounts needs to

be reviewed and if

not required the

such banks


We have already initiated the action for reconciliation of old

items lying open.

As on date we do not have

much transaction with above banks. However, these current accounts may be required for

company’s business in future.


Sl.

No.


15476-Main was made after

March,13

523200 Punjab National Bank-New

Delhi-A/C No.

51,23,681.01 No transaction

was made after

July,13

523300 IOB-New Delhi-Golf Links-A/C

No. CC No

2,32,953.41 No transaction

was made after

28.05.2012

523500 Standard Chartered Bank-

Delhi- 522-0-57


was made

(very old)

523900 Syndicate Bank , New Delhi –

Main


was made after

01.10.2012

524050

IDBI New Delhi A/C

127103000001465

2,23,102.00 No

transactions

was made after

31.07.2013

An entry for Commission charged of Rs.26/- to be passed for

UBI New Delhi A/c 521010

accounts should

be closed.


Future compliance

c)Implementation

responsibility:

Finance Department

13 Miscellaneous Observations-

1. Review of One Time Vendor Account-

One Time Vendor A/c -OTAAA25

Audit observed the amounts Credited against following

documents are yet to be cleared under the above mentioned

G/L :

1. Doc No.8712002125 dated 10.02.2012 for Rs.5,00,000/-

2. Doc No.8712002644 dated 31.03.2013 for Rs. 7,000/-


1. The payment of vendor was not released in absence of E-

payment details from the vendor. However, Rs.5,00,000/- already

released after receipt of e-payment details.


Sl.

No.


2. Stale Cheques Account A/c 200501

It is observed an amount of Rs.98232/- are lying in the stale

cheque account as on 31.12.2013 and needs to be written

off:

1. Doc No.3312004826 dated 30.06.2012for Rs.2,404/-

2. Doc No.3312009230 dated 30.09.2012 for Rs.1,800/-

3. Doc No.3312009230 dated 30.09.2012 for Rs.2,094/-

4. Doc No.3312009230 dated 30.09.2012 for

Rs.20,230/-

3. Prov- Wealth Tax A/c 211210

The Provision taken for Rs.1,00,000/- vide Doc

No.2610013341 dated 31.03.2011 is yet to be reversed.

4. Outstanding Liability A/c 200500

Provision taken for Rs. 20,00,000/- against vides Doc

No.2612010272 dated 31.03.2013 is yet to be reversed.

5. TDS (JVC)

TDS u/s 194J Professional Fees (G/L A/c 201003)-

An amount of Rs 1,89,012/- is appearing as credit balance

under the G/L- 201003 u/s 194 J and the same is not

matching with the tax deposits made with the Govt Accounts

2. Usually balances of stale cheques are written off after

completion of 2 years.

3. Already reconciled the A/c.211210 and as on 31.3.14 balance is NIL

4. Already reversed.

5. We have already initiated reconciliation of the same.


Future compliance

c)Implementation

responsibility:

Finance Department


Sl.

No.


14 Reconciliation of GR/IR & SR/IR Account-

i. GR/IR –Stores & Spares –

Audit observed an amount of Rs.1.86 lakh is lying open under

the GL- GR/IR –Stores & Spares (GL-220000) as on

31.12.2013. It was found that GRNs were raised against the

POs but LIV against such document is still pending.

A list of such POs is given vide Annexure D(i)

The same observation was pointed out in last Qtr Audit, but

no action has been taken till the date of audit

ii. GL- SR/IR –Services (GL-221000)-

Audit observed that an amount of Rs. 1.27 crore is lying

open under the GL- SR/IR –Services (GL-221000) till

31.12.2013.

It was found that SESs were raised against the POs but LIV

against such document is still pending.

A list of such WOs is given vide Annexure D(ii)

Necessary action

should be taken

to reconcile

GR/IR & SR/IR

Accounts at

regular interval to

avoid pilling up

such old items.


We have already initiated the reconciliation of the same and

in regard to observation no.9(i), almost all the old items corrected by 31.03.14. In

respect of 9(ii) action being initiated to clear the open

items.


Future compliance

c) Implementation

responsibility:

Finance Department

15 Variance Analysis of GLs related to Austerity Measure-

IA has reviewed variance analysis of GLs related to Austerity

Measure for the period of April to Dec ’13 with the Budgeted

amount as well as the Actual of the corresponding previous

year period.

Actual Vs Budgeted and Corresponding previous year

expenditure-

There has been an increase of 120% in total expenditures

incurred against the GLs related to Austerity measure as

compared to budget amount for the period April to Dec’13.

Financial &

Compliance

Risk

Further, Reason

for abnormal

variances more

than 15% should

be looked into

and corrective

actions should be

taken wherever

necessary to

minimize such

expenditures.


The concerned departments

which have made higher spending are being advised to

ensure taking special revenue budget approvals in future for any specific expenditure not

budgeted.


Sl.

No.


The abnormal variances which are categorized as under:-

a) Overutilization is more than 20% of the Budget

b) Expenses were incurred without Budget heads

c) GLs wherein underutilization is more than 30%

The detail list of such variances is given in Annexure-E.

Reasons for such abnormal variances should be looked into

and corrective actions should be taken wherever necessary.

Examples of Abnormal Variances:-

i. G/L- 731051 Cont-Ser-Tech Stds& Services- Increase by

of 10387% -

Actual expenditure is Rs.6.55 crore against the budget of Rs.

6.24 lakh which is mainly due to expenditure of Rs. 6.30

crore incurred towards the Subscription of Services of

Upstream Services and Global Economic Model (GEM) for

2013.

ii. G/L- 731050 Cont-Ser-Mgt Cons Services Increase by

1274%


1.93 core which is mainly due to expenditure of Rs. 8.65

crore (approx) incurred towards the appointment of Technical

consultants for due diligence of different projects like project

Clove, Tulip, Cinnamon etc.

iii. G/L- 780076 Sund Exp-Donations Increase by 1051%


33.67 lakh which is mainly because of an amount of Rs. 4.00

Further, all the

user departments’

needs to analyse

the future plans

and a revenue or

normal budget

should be taken

against the such

expenditures

accordingly.



c)Implementation

responsibility:

Finance Department


Sl.

No.


crore paid towards Contribution for Petroleum Conv Mega

Campaign Under Mop&Ng

iv. G/L - 780041 Data Docket & Data Increase by 958%

Actual expenditure is Rs. 85 lakh against the budget of Rs.

8.05 lakh , which is mainly due to expenditure of Rs. 65 lakh

incurred towards the LECENSE FEES FOR COMM TO THE

MYNMAR REG PROS STUDY.

v. G/L -731080 Cont-Ser-Advertisement Increase by 465%

Actual expenditure is Rs. 3.54 crore against the budget of Rs.

62.6 lakh .

16 Expenditure Management – Economy Measures and

Rationalization of Expenditure

Ministry of Petroleum and Natural Gas (MoP&NG) vide their

office Memo no. G-38011/80/2013-Fin.I dated 20/09/2013

enclosing an Office Memorandum (OM) dated 18/09/2013 has

advised All PSUs including OIL under its administrative

Ministry to ensure strict compliance to the Economy

instructions contained in the said OM.

Accordingly D (HR&BD) vide his letter no. OIL/70/5 dated

01/10/2013 advised all concerned to ensure strict

compliance. In this regard it may be noted that similar type of

circular was also published by MoP&NG and MoF during the

year 2012 vide their OM No.G-38011/8/2011-Fin.I dated June

4, 2012. Thereafter Finance department has published a

circular vide no. OIL/44/1/3172 dated 13/06/2012 wherein

DF has specifically mentioned about the strict compliance of

Financial &

Complaince

Risk

The Finance

department

should compile

reports on

austerity

measures on

regular basis

(Quarterly basis)

and submit the

management for

their appraisal.


Since the instructions to ensure strict compliance of the

austerity measures advised by MoP&NG were issued by D(HR&BD) vide his letter no.

OIL/70/5 dated 01/10/2013, no separate instructions were issued by Finance

Department.

The austerity measures issued by the Ministry for a year expire with the end of the

financial year. Hence compilation of any report was not required for the first 2

quarters of the financial year 2013-14. Consequent to issue


Sl.

No.


the circular issued by MoP&NG. Accordingly a letter has been

issued by DF to RCE and all project heads for strict

compliance of the same. It is also observed a letter was also

issued by GGM(F&A) vide no. OIL/44/1/3188 dated July 9,

2012 in this regard to all Finance Heads. In the said letter it

was also advised to all Finance heads of all the spheres to

compile a quarterly statement of actual expenses against the

Budget for information to top management. However, no such

instruction/circular was issued this time on receipt of the

same from the MoP&NG. Audit therefore observes the

following :-

i. No circular / letter has been issued by Finance

Department this year for the similar instruction of

MoP&NG/MOF ;

ii. No statements are being compiled by Corporate Finance for

Corporate Office on quarterly basis and put up to the top

management for compliance of earlier circular issued by them

iii. No statements have been compiled by the Corporate

Finance towards compliance of their own circular for the entire

company as a whole and submitted to the Top management

for strict compliance.

of austerity measures instructions for 2013-14 in

October 2013, the details of actual quarter wise

expenditure will be submitted to the management for review after finalization of annual

accounts for 2013-14.



c)Implementation

responsibility:

Finance Department


Annexure -A

List of Departments against which PRs are lying open in the System with year –wise-

DEPARTMENT F.Y Total Value of PR (Rs.)

ADMIN 2005-06 4,25,000.00

2006-07 5,30,270.50

2007-08 96,41,332.84

2008-09 12,59,075.72

2009-10 1376,78,497.82

2010-11 506,40,247.93

2011-12 25,37,338.00

2012-13 60,67,742.10

2013-14 51,87,102.76

ADMIN Total 2139,66,607.67

ADMIN-OFFICIAL LANGUAGE 2010-11 180.00

2011-12 2,800.00

ADMIN-OFFICIAL LANGUAGE Total 2,980.00

AUDIT 2008-09 8,000.00

2013-14 8,65,000.00

AUDIT Total 8,73,000.00

BD 2006-07 1,93,800.00

2008-09 2,56,756.00

2009-10 2,208.00

2010-11 8,980.00

2011-12 81,79,200.00

2013-14 1184,75,762.00

BD Total 1271,16,706.00

C & P 2005-06 10,000.00

2006-07 11,175.00

2007-08 7,647.70

2008-09 19,495.00

2009-10 34,98,955.42


2010-11 2,020.52

2011-12 21,225.60

2012-13 20000,28,990.50

2013-14 9,76,803.75

C & P Total 20045,76,313.49

C S 2006-07 440.00

2007-08 6,27,530.48

2008-09 15,02,651.02

2009-10 809,06,621.00

2010-11 33,88,688.25

2012-13 27,47,515.40

2013-14 580.00

C S Total 891,74,026.15

CIVIL 2006-07 5,50,500.00

2007-08 251,93,560.42

2008-09 24,45,636.77

2009-10 47,49,318.59

2010-11 624,28,575.11

2011-12 170,82,902.07

2012-13 75,98,276.39

2013-14 702,34,501.92

CIVIL Total 1902,83,271.27

CMC 2013-14 33,00,020.00

CMC Total 33,00,020.00

CMD OFFICE 2006-07 1,040.00

2007-08 4,499.16

2008-09 621.00

2010-11 3,200.00

CMD OFFICE Total 9,360.16

CORPORATE AFFAIRS 2007-08 1,28,000.00

2009-10 17,85,000.00

2010-11 288.75

CORPORATE AFFAIRS Total 19,13,288.75


DF OFFICE 2006-07 2,848.00

2007-08 3,050.00

2010-11 900.00

2011-12 3,900.00

2013-14 90.00

DF OFFICE Total 10,788.00

E & D 2007-08 1,69,784.30

2008-09 59,696.00

2009-10 885.00

2010-11 2,76,711.00

2011-12 12,67,000.00

2012-13 1243,83,158.22

2013-14 88,20,240.00

E & D Total 1349,77,474.52

F & A 2006-07 5,127.12

2007-08 12,301.00

2008-09 7,121.00

2009-10 4,32,594.32

2010-11 19,709.58

2013-14 150.00

F & A Total 4,77,003.02

GEOSCIENCES 2006-07 68,000.00

GEOSCIENCES Total 68,000.00

HSE 2010-11 18,75,100.00

2011-12 70,500.00

2013-14 1,575.00

HSE Total 19,47,175.00

I T 2006-07 8,63,157.00

2007-08 23,75,744.00

2008-09 1,32,183.00

2009-10 16,35,951.67

2010-11 65,018.98

2011-12 11,24,300.00


2012-13 6,83,410.00

2013-14 36,85,650.40

I T Total 105,65,415.05

P R 2007-08 1,27,256.00

2010-11 90,22,693.44

2011-12 732,03,000.00

2012-13 456,85,000.00

2013-14 112,02,159.36

P R Total 1392,40,108.80

PERSONNEL 2006-07 70,000.00

2007-08 340.00

PERSONNEL Total 70,340.00

TECHNICAL & PLANNING 2005-06 2,500.00

2006-07 1,27,820.00

2007-08 600.00

2009-10 5,814.70

2010-11 1,230.60

2011-12 18,500.00

2013-14 1,400.00

TECHNICAL & PLANNING Total 1,57,865.30

VIGILANCE 2006-07 7,970.00

2007-08 95,384.18

2008-09 72,100.00

2009-10 8,741.06

2010-11 99,354.20

2011-12 37,617.00

2012-13 12,642.50

2013-14 3,115.60

VIGILANCE Total 3,36,924.54

Grand Total 29190,66,667.72


Annexure-B

List of purchasing group against which SESs lying open in the system – Purchasing Group Created on Entry Sh. Work. Order Item Short Text Amount (Rs.)

Del- Expl. & Dev. 06.02.2012 1000255878 8107283 Photocopy charges 383.00

08.05.2013 1000315780 8104687 Maintenance of Geoframe Softwate 0

10.05.2011 1000221815 8107173 PEAK centre software maintenance(PETREL) 0

11.10.2010 1000195011 8107517 consultancy services for OIL E&P Project 0

15.09.2011 1000237773 8104687 Maintenance of Geoframe Softwate 0

19.03.2013 1000308934 8111371 AMC for Geoframe Sofware 0

26.11.2010 1000200000 8107173 PEAK centre software maintenance(PETREL) 0

1000200005 8107173 PEAK centre software maintenance(PETREL) 0

Del- Expl. & Dev. Total 383.00

Del-Administration 07.02.2011 1000209298 8104756 Security Services 7,85,716.65

05.11.2012 1000290694 8110124 Providing watch and ward surveillance se 5,91,990.00

07.03.2011 1000212405 8106373 Engagement of Skilled/Unskilled labour 5,65,998.00

03.10.2011 1000240094 8104756 Security Services 5,16,676.87

25.10.2010 1000195853 8104756 Security Services 1,51,281.97

09.08.2012 1000280004 8109835 House Keeping Services at OIL House 1,34,313.00

09.11.2011 1000244173 8109094 Providing the services of photocopy 1,21,091.34

04.04.2011 1000216102 8107929 CARETAKER S 393 GK II ND 33,000.00

09.06.2011 1000225355 8104704 Care taking services 33,000.00

22.05.2007 1000051049 8101554 Maintenence of OIL complex at Noida 15A 24,650.00

09.07.2009 1000133035 8105335 Supply of flowers and flower arrangement 13,000.00

1000051053 8101554 Maintenence of OIL complex at Noida 15A 7,250.00

14.02.2007 1000041380 8101554 Maintenence of OIL complex at Noida 15A 5,800.00

12.10.2011 1000240854 8108800 AMC for EPABX in guest houses in NCR 3,531.15

29.04.2009 1000125799 8104285 SCHEDULE OF RATES 1,050.00

02.04.2013 1000310811 8109883 Providing Courier Service at OIL House 0

02.05.2013 1000314742 8110124 Providing watch and ward surveillance se 0

02.08.2010 1000184037 8104705 Care taking services 0

03.05.2012 1000267463 8106373 Engagement of Skilled/Unskilled labour 0

04.07.2006 1000017467 8101587 Operationa and Maintenance of OIL House 0


05.04.2011 1000216257 8107928 CARETAKER-522/523 Asiad Village GH 0

1000216259 8107928 CARETAKER-522/523 Asiad Village GH 0

07.12.2010 1000202148 8107424 AMC EPABX (in 4 guest houses) 0

08.09.2011 1000236651 8109116 Repair of safa/change of upholstry etc. 0

09.04.2012 1000265689 8109512 Horticulture Developement Work 0

09.09.2011 1000236751 8107951 Courier services 0

1000236754 8107951 Courier services 0

10.09.2007 1000061865 8101535 Housekeeping Service 0

10.09.2012 1000283446 8109883 Providing Courier Service at OIL House 0

15.05.2008 1000089361 8101554 Maintenence of OIL complex at Noida 15A 0

15.10.2011 1000241566 8108597 Hiring Services of Passenger Vehicles 0

24.07.2012 1000277863 8107928 CARETAKER-522/523 Asiad Village GH 0

29.06.2011 1000227535 8108596 Hiring Services of Passenger Vehicles 0

Del-Administration Total 29,88,348.98

Del-Audit & Co.Sec 26.08.2010 1000187737 8107158 Publ. of AFR Financial Year 31.03.2010 0

Del-Audit & Co.Sec Total 0

Del-Civil 29.08.2008 1000100052 8103946 Maintenance of offices & houses 1,36,179.65

19.05.2008 1000089510 8103945 Maintenance of offices & houses 1,17,616.18

27.06.2008 1000093261 8103943 Maintenance of offices & houses 1,07,172.75

15.04.2009 1000125150 8103943 Maintenance of offices & houses 86,115.95

25.09.2009 1000143553 8105805 Services for Operation & Maint. 39,704.69

25.03.2013 1000309605 8110559 Appointment of Structural Engineer 26,741.00

21.09.2011 1000238461 8109138 Payment to M/s DeGolyer and MacNaughton 0

Del-Civil Total 513530

Delhi-Cont & Purch 29.01.2010 1000160755 8106432 Sharing of cost by OIL-carabobo project 82,07,861.00

05.05.2008 1000088084 8102338 Interior works for Attrium, Ground floor 3,04,182.85

20.02.2009 1000118705 8102936 CLIMATE CHANGE ADVISORY 2,52,540.00

11.09.2006 1000025068 8101547 Hire of Tea/Coffe Vending M/c (Four opt) 83,074.00

1000079880 8103772 Hiring photocopier 73,365.26

06.02.2008 1000077078 8103523 Caretaker services 41,573.00

08.03.2011 1000212633 8104216 Care taking services 34,499.00

19.02.2007 1000042140 8102665 Renovation of VIP Rooms and Suit 31,432.00

19.01.2010 1000159820 8105300 Horticulture Development 25,998.00


26.07.2007 1000057601 8101567 Security Services 20,266.06

23.02.2010 1000164006 8105300 Horticulture Development 6,500.00

04.06.2009 1000129111 8104279 Hiring photocopier 5,036.06

23.02.2006 1000005020 8101571 Maintenance of DG set at 12 Asian Villag 3,500.00

15.07.2008 1000095821 8103773 Hiring photocopier 2,101.00

04.02.2008 1000076848 7069888 Office Stationery 0

1000076855 7069888 Office Stationery 0


04.04.2008 1000085310 7073043 Customs and Cenral Excise books 0

04.06.2008 1000090895 7902878 installation of ACs 0

04.09.2006 1000023795 7056528 repairing of comp. parts 0

04.09.2009 1000140437 8105726 Pmt of Professional Fees to M/s. Ashurst 0

05.03.2008 1000079723 8103705 HIRE OF VEHICLES 0

1000079730 8103705 HIRE OF VEHICLES 0


08.11.2013 1000340293 7508786 Pritinting of vigilance handbook 0

1000340297 7508786 Pritinting of vigilance handbook 0


11.08.2008 1000098723 8104207 AMC FAX Panasonic make 0

11.12.2007 1000071393 8103523 Caretaker services 0

14.07.2012 1000276960 7507542 Giveaways for Dignitaries 0

15.05.2012 1000269225 7507168 Printing of In-house Journal 'Synergy' 0

19.12.2007 1000072102 8103520 Hiring photocopier 0

20.01.2010 1000159916 8106407 Credit Rating Services 0

24.04.2006 1000010599 7501983 printing of magazine 0

24.07.2008 1000096564 8103965 out of pocket expenses 0

25.03.2008 1000082719 7072120 Stationery 0

27.03.2008 1000083216 8103822 Consultancy Service 0



30.09.2008 1000103917 8103267 Modiofification of Director's Rooms 0

31.08.2006 1000023214 7056323 REPAIR OF 15" MONITOR 0

Delhi-Cont & Purch Total 90,91,928.23


Del-Inf.Technology 07.12.2010 1000202099 8107780 IMPLEMENTATION OF FTS. 7,52,563.00

14.06.2011 1000225932 8104376 ANNUAL BANDWIDTH CHARGES FOR 1MBPS(1:1I) 73,418.99

04.08.2011 1000232511 8108361 INTERNET BANDWIDTH 0

20.09.2010 1000191044 8104376 ANNUAL BANDWIDTH CHARGES FOR 1MBPS(1:1I) 0

Del-Inf.Technology Total 825982

Del-Pub. Relation 02.11.2012 1000290312 8110659 Publication of CMD's 53rd AGM Speech 0

09.08.2011 1000233499 8108958 Board Meeting Advertisement 0

30.12.2010 1000204829 8107717 Publication of UFR 0

Del-Pub. Relation Total 0

Grand Total 134,20,172.42


Annexure-C

Lead time analysis for the PO awarded during Q1 to Q3 of the financial year 2013-14

Sl. No PR No PR Date PO PO Date

Lead Time Short Text Total Value

1 1611232 13-Aug-12 7508563 15-Jul-13 336 RUBBER MAT, 2M x 1 M 115,000.00

2 1409413 22-Aug-12 7906053 24-May-13 275 PRINTER 144,000.00

3 1410058 23-Jan-13 7906291 25-Oct-13 275 LAPTOP COMPUTER 80,000.00

4 1410059 23-Jan-13 7906291 25-Oct-13 275 LAPTOP COMPUTER 80,000.00

5 1612102 15-Feb-13 7508802 1-Nov-13 259 PRINTING AND BINDING OF BOOK. 400,000.00

6 1410105 12-Feb-13 7906291 25-Oct-13 255 LAPTOP COMPUTER 80,000.00

7 1410172 27-Feb-13 7906291 25-Oct-13 240 LAPTOP COMPUTER 80,000.00

8 1410462 23-Apr-13 7906359 6-Dec-13 227 FILING CABINET 1,000,000.00

9 1409754 8-Nov-12 7906053 24-May-13 197 COMPUTER 55,000.00

10 1409973 8-Jan-13 7906171 22-Jul-13 195 PRINTER 1,200,000.00

11 1409822 19-Nov-12 7906053 24-May-13 186 PRINTER 35,000.00

12 1410516 9-May-13 7906291 25-Oct-13 169 LAPTOP COMPUTER 80,000.00

13 1611782 1-Dec-12 7508397 13-May-13 163 Supply of spare parts for fire fighting 120,015.22

14 1409931 21-Dec-12 7906053 24-May-13 154 COMPUTER 180,000.00

15 1410483 26-Apr-13 7906249 9-Sep-13 136 Security Access Control System 350,000.00

16 1410421 17-Apr-13 7906239 30-Aug-13 135 COMPUTER 660,000.00

17 1410443 22-Apr-13 7906239 30-Aug-13 130 COMPUTER 55,000.00

18 1410781 4-Jul-13 7906308 6-Nov-13 125 Split Airconditioner 102,000.00

19 1410043 23-Jan-13 7906053 24-May-13 121 COMPUTER 55,000.00

20 1410060 23-Jan-13 7906053 24-May-13 121 COMPUTER 55,000.00

21 1410322 26-Mar-13 7906171 22-Jul-13 118 Heavy Duty Color Printer 600,000.00

22 1612833 5-Jun-13 7508737 1-Oct-13 118 Toner Cartridge TN240BK Black 22,260.00

23 1612833 5-Jun-13 7508737 1-Oct-13 118 Toner Cartridge TN240C Cyan 10,500.00

24 1410515 9-May-13 7906239 30-Aug-13 113 COMPUTER 55,000.00

25 1612857 7-Jun-13 7508726 26-Sep-13 111

LEATHERIER FOLDER (GIFT

ITEM) 60,000.00


Sl.

No PR No PR Date PO PO Date

Lead

Time Short Text Total Value

26 1410352 8-Apr-13 7906171 22-Jul-13 105 Heavy Duty Printer 600,000.00

27 1410090 12-Feb-13 7906053 24-May-13 101 PRINTER 20,000.00

28 1410283 18-Mar-13 7906108 17-Jun-13 91 Split Air conditioner - 1. 5 ton 252,000.00

29 1612902 13-Jun-13 7508661 27-Aug-13 75 ENVELOP WITH BILINGUAL PRINTING 78,750.00

30 1410295 21-Mar-13 7906053 24-May-13 64 PRINTER 20,000.00

31 1410442 22-Apr-13 7906123 24-Jun-13 63 TELEPHONE INSTRUMENT 120,000.00

32 1410922 6-Aug-13 7906273 4-Oct-13 59 APPLIANCE 850,000.00

33 1410762 4-Jul-13 7906239 30-Aug-13 57 COMPUTER 55,000.00

34 1410763 4-Jul-13 7906239 30-Aug-13 57 COMPUTER 55,000.00

35 1612408 10-Apr-13 7508442 4-Jun-13 55 BAGS, GUNNY (INSIDE POLYTHENE COATED) 32,500.00

36 1410517 10-May-13 7906131 26-Jun-13 47 T.V. [TELEVISION] 180,000.00

37 1612296 15-Mar-13 7508354 30-Apr-13 46 BATTERY 42AH 12V EXIDE OR EQUIVALENT 178,320.00

38 1411214 14-Oct-13 7906349 28-Nov-13 45 T.V. [TELEVISION] 24,000.00

39 1410331 25-Mar-13 7906021 7-May-13 43 AIR CONDITIONER 64,000.00

40 1410501 24-Apr-13 7906083 5-Jun-13 42 AIR CONDITIONER 32,000.00

41 1410921 6-Aug-13 7906259 17-Sep-13 42 SWITCH 250,000.00

42 1410294 19-Mar-13 7905990 25-Apr-13 37 Split Air conditioner 1.5 ton 35,000.00

43 1410513 29-Apr-13 7906083 5-Jun-13 37 AIR CONDITIONER 32,000.00

44 1216941 25-Jul-13 7114218 27-Aug-13 33 Cartridge, HP Laser Jet 1160, Black 122,130.00

45 1612165 1-Mar-13 7600670 3-Apr-13 33

Geo-scientific software -

KINGDOM 8,884,832.00

46 1410332 25-Mar-13 7905994 26-Apr-13 32

1 KVA INVERTOR WITH TWO

TUBULAR BATTERIE 56,000.00

47 1410353 8-Apr-13 7906025 10-May-13 32 LCD/LED Monitor 100,000.00

48 1612402 2-Apr-13 7508362 1-May-13 29 TYRE FOR HONDA CITY CAR 30,000.00

49 1410801 9-Jul-13 7906202 6-Aug-13 28 IPHONE5 MOBILE HANDSET 240,000.00

50 1411243 31-Oct-13 7906347 27-Nov-13 27 LAPTOP COMPUTER 170,000.00

51 1216327 8-Apr-13 7113744 26-Apr-13 18 Cartridge,HP Laser Jet 1160, 42,147.00


Sl.


Lead


Black

52 1411106 25-Sep-13 7906278 10-Oct-13 15 IPHONE5 MOBILE HANDSET 50,000.00

53 1612922 20-Jun-13 7508541 5-Jul-13 15 NECK TIE WITH CUFF LINK & POCHETTE 128,850.00

54 1410765 5-Jul-13 7906170 19-Jul-13 14 T.V. [TELEVISION] 480,000.00

55 1103982 21-May-13 7002516 3-Jun-13 13 Photocopy Paper, A4 6,821.50

56 1103982 21-May-13 7002516 3-Jun-13 13 Photocopy Paper, Double Foolscap (A3), 1,068.50

57 1217571 5-Dec-13 7114597 17-Dec-13 12 Cartridge, HP Laser Jet 1160, Black 73,278.00

58 1103882 1-Apr-13 7002494 12-Apr-13 11 Cartridge, HP Laser Jet 1160, Black 16,860.00

59 1612895 24-Jun-13 7508542 5-Jul-13 11 HARD DISK RECOVERY 31,350.00

60 1104111 18-Jul-13 7002559 26-Jul-13 8 Photocopy Paper, A4 11,133.60

61 1612486 22-Apr-13 7508355 30-Apr-13 8 Summer Uniform 30,600.00

62 1612930 11-Dec-13 7508990 19-Dec-13 8

BOOK ON ENERGY

INFRASTRUCTURE IN INDIA 60,000.00

63 1103981 17-May-13 7002509 24-May-13 7 Photocopy Paper, A4 4,500.00

64 1411373 26-Nov-13 7906353 3-Dec-13 7

UPDATING OIL CORPORATE

MOVIE 490,000.00

65 1411374 26-Nov-13 7906354 3-Dec-13 7 Design & Printing of Brochures 363,480.00

66 1411142 13-Sep-13 7906265 19-Sep-13 6

1 KVA INVERTOR WITH TWO

TUBULAR BATTERIE 30,000.00

67 1103961 8-May-13 7002507 13-May-13 5 Photocopy Paper, A4 10,650.00

68 1104211 6-Sep-13 7002589 11-Sep-13 5 Photocopy Paper, A4 5,640.00



71 1410854 26-Jul-13 7906183 29-Jul-13 3 TELEPHONE INSTRUMENT 225,000.00

72 1411482 17-Dec-13 7906386 20-Dec-13 3 LAPTOP COMPUTER 230,000.00

73 1103881 1-Apr-13 7002485 3-Apr-13 2 Photocopy Paper, A4 700

74 1104018 3-Jun-13 7002518 5-Jun-13 2 Photocopy Paper, A4 10,232.25

75 1409600 1-May-13 7906010 2-May-13 1 CCTV( FIxed Dome)-indoor 21,093.75


Sl.


Lead


76 1411236 24-Oct-13 7906292 25-Oct-13 1 SAMSNUNG NOTE 3 50,000.00


78 1411302 8-Nov-13 7906314 8-Nov-13 0 CHAIR 484,785.00

79 1612554 25-Apr-13 7508347 25-Apr-13 0 BED COVER, SIZE-70" X 100" 13,200.00

80 1411307 18-Nov-13 7906314 8-Nov-13 -10 CHAIR 52,650.00

Total Time for 80 PRs 6026

Average Lead Time 75

Lead time (PRs to WOs) analysis for the Work-Order awarded during Q1 to Q3 of the financial year 2013-14

Sl. No

Work Order

Work order date PR No PR date Short Text Lead Time

1 8111812 15-Jul-13 2211127 20-Jan-12 LED sign board on the top of OIL House 542

2 8111958 27-Aug-13 2212407 31-Aug-12 Misc. works at basement 361

3 8111583 2-May-13 2212176 30-Jul-12 Miscellaneous works 276

4 8112189 30-Oct-13 2213434 27-Feb-13 Eng of Const Tax & acctt Project TULIP 245

5 8111736 21-Jun-13 2212749 1-Nov-12 Renovation of S-393, GK-II, 232

6 8112204 1-Nov-13 2213591 14-Mar-13 AMC for Air-conditioners 232

7 8112199 1-Nov-13 2213591 14-Mar-13 AMC for Air-conditioners 232

8 8111981 6-Sep-13 2213434 27-Feb-13 Eng of Const Tax & acctt Project TULIP 191

9 8111444 2-Apr-13 2212759 26-Oct-12 Eng of Consultant " Cinnamon" 158

10 8111959 27-Aug-13 2213675 25-Mar-13 Servicing of Fire Engine of OIL House. 155

11 8111445 2-Apr-13 2212811 5-Nov-12 Technical Due Diligence 148

12 8111943 22-Aug-13 2213946 25-Apr-13 Making OIL's vision statement board 119

13 8112159 22-Oct-13 2214444 9-Jul-13 Preparation of due diligence 105

14 8112179 28-Oct-13 2214497 22-Jul-13 Providing and fixing new awnings 98

15 8111826 18-Jul-13 2213886 19-Apr-13 RENOVATION OF 2NOS. TOILETS AT 1ST FLOOR 90

16 8112198 1-Nov-13 2214642 5-Aug-13 CIVIL & ELECT. WORKS FLAT NO.04-03 88

17 8111756 28-Jun-13 2213775 2-Apr-13 Publication of NIT in Newspapers 87

18 8111555 25-Apr-13 2213319 7-Feb-13 Testing of two nos. 630KVA, 11/433 KV Tr 77


Sl. No

Work Order


19 8111810 15-Jul-13 2214004 30-Apr-13 Water Tank cleaning 76

20 8112158 22-Oct-13 2214722 19-Aug-13 Subscription of Upstream Ser 64

21 8111754 28-Jun-13 2214001 29-Apr-13 Publication of Du[plicate share certific 60

22 8111818 16-Jul-13 2214096 17-May-13 Publication of NIT 60

23 8112217 6-Nov-13 2214820 10-Sep-13 Publication of Chairman's Speech - 54th 57




27 8112247 18-Nov-13 2214907 25-Sep-13 Publication of advertisement for Hindi T 54

28 8111755 28-Jun-13 2214043 6-May-13 Publication of Board Meeting Notice 53

29 8111589 3-May-13 2213561 13-Mar-13 Publication of Notice 51

30 8111952 23-Aug-13 2214439 9-Jul-13 Repairing/servicing of Uniline Make 45

31 8111794 10-Jul-13 2214193 29-May-13 Results Announcement - Corrigendum 42

32 8111946 23-Aug-13 2214481 15-Jul-13 Publication of NIT for Engagement of PMC 39

33 8111945 23-Aug-13 2214481 15-Jul-13 Publication of NIT for Engagement of PMC 39

34 8112008 18-Sep-13 2214672 12-Aug-13 Publication of 54th AGM Notice 37

35 8111700 7-Jun-13 2214023 3-May-13 Publication of Notification 35

36 8111949 23-Aug-13 2214492 19-Jul-13 Publication of Notice before Board Meeti 35

37 8111947 23-Aug-13 2214493 19-Jul-13 Publication of UFR (1st Qtr) 35

38 8111948 23-Aug-13 2214493 19-Jul-13 Publication of UFR (1st Qtr) 35

39 8112120 17-Oct-13 2214870 13-Sep-13 Publication of Expression of Interest 34



42 8111783 8-Jul-13 2214262 7-Jun-13 Publication of AFR 2-12 -13 in magazines 31

43 8112360 12-Dec-13 2215159 11-Nov-13 Publication of EOI in News papers 31

44 8112363 12-Dec-13 2215189 11-Nov-13 Publication of Global Expression of Inte 31



47 8111490 18-Apr-13 2213661 21-Mar-13 Engg of Tax & Acc Conslt 28

48 8112010 18-Sep-13 2214740 21-Aug-13 Publication of NIT for Data Centre 28

49 8112264 25-Nov-13 2215118 31-Oct-13 Publication of Expression of Interest 25


Sl. No

Work Order


50 8111676 31-May-13 2214043 6-May-13 Publication of Board Meeting Notice 25

51 8111801 12-Jul-13 2214334 18-Jun-13 Energy Audit 24

52 8111486 16-Apr-13 2213664 25-Mar-13 Out of Pocket Exp. 22

53 8111713 12-Jun-13 2214147 21-May-13 Consultant for Interpretation 22

54 8112367 13-Dec-13 2215284 22-Nov-13 Notice for Duplicate Share Certificates 21

55 8112050 24-Sep-13 2214815 3-Sep-13 Techno Economic Evaluation 21

56 8112011 18-Sep-13 2214748 29-Aug-13 Publication of NIT for Passenger Vehicle 20

57 8112109 11-Oct-13 2214912 21-Sep-13 Excel Files - IEPF 2012 20

58 8112370 13-Dec-13 2215286 23-Nov-13 Notice for Seismic Data Interpretation 20

59 8112369 13-Dec-13 2215286 23-Nov-13 Notice for Seismic Data Interpretation 20

60 8111833 22-Jul-13 2214428 5-Jul-13 Public Notification in Newspapers 17

61 8112038 20-Sep-13 2214815 3-Sep-13 Techno Economic Evaluation 17

62 8111832 22-Jul-13 2214428 5-Jul-13 Public Notification in Newspapers 17

63 8112009 18-Sep-13 2214821 3-Sep-13 Legal Service 15

64 8112250 18-Nov-13 2215138 5-Nov-13 Publication of 2nd Qtr UFR 13

65 8112249 18-Nov-13 2215138 5-Nov-13 Publication of 2nd Qtr UFR 13

66 8112348 11-Dec-13 2215398 6-Dec-13 Energy Audit (Corp Office) 5

67 8111978 4-Sep-13 2214796 2-Sep-13 EIA Study Block MB-OSN-2010/2 2

68 8111749 27-Jun-13 2214374 26-Jun-13 Engagement of Consultant 1

Total 5073

Lead Time 74.60


Annexure-D (i)

GR/IR –Stores & Spares (GL-220000)

PO Amount (Rs.)

7001002 -129

7001239 -2,789.47

7001641 -1,200.00

7053557 -1,750.00

7053683 -7,950.00

7053790 -2,450.00

7055585 -7,801.74

7061849 -95

7065757 -125

7068520 -153

7069312 -100

7069371 -440

7070187 -35

7071116 -180

7073916 -300

7077853 -565

7079286 -100

7082424 -2,340.00

7093476 -420

7095885 -3,900.00

7110809 -5,334.00

7114075 -13,230.00

7300085 -1,800.00

7502068 -84,487.50

7503494 -196.87

7504555 -270

7050006293 -180


7050024030 -11,341.80

7050024451 -1,930.00

7050024485 -3,000.00

7050024697 -2,146.50

7050024987 -2,650.00

7050024990 -1,743.00

7050025060 -5,520.90

7050025063 -3,675.00

7050025066 -6,270.00

7050025068 -6,270.00

7050025185 -3,150.00

-186018.78

Annexure-D (i)

GL- SR/IR –Services (GL-221000)-

WOs Amount(Rs.)

7508784 -68,248.00

8102466 -6,500.00

8103943 -67,025.83

8105087 -3,920.90

8105088 -2,205.50

8105120 -6,735.46

8105121 -10,169.92

8105674 -2,241.55

8106820 -46,528.28

8106984 -12,564.00

8106993 -99,278.96

8107077 -6,500.00

8107312 -4,595.35

8107799 -475

8108529 -8,003.98


8108601 -11,587.22

8108656 -84,935.92

8108752 -6,727.91

8108909 -1,909.58

8109266 -20,655.00

8109485 -30,851.00

8109651 -37,081.37

8109705 -846,990.54

8109947 -450,608.00

8109978 32,595.60

8110124 -648,348.00

8110190 -5,046.00

8110506 -2,384.04

8110515 -85,229.09

8110519 -224,720.00

8110744 -23,635.00

8110823 -823,123.00

8110856 -1,787.88

8110999 -422,978.00

8111126 -140,114.65

8111371 -2,278,438.86

8111452 -7,536.16

8111471 -5,126.02

8111684 -1,274,361.00

8111820 -79,839.00

8111990 -30,700.00

8112054 -36,228.50

8112061 -8,941.52

8112074 -70,566.50

8112086 -24,720.00

8112113 -67,416.00

8112119 -190,670.69

8112120 -202,990.95


8112121 -14,089.92

8112149 -4,873.20

8112151 -9,050.40

8112174 -89,035.06

8112196 -6,321.66

8112201 -698,760.23

8112205 -206,519.50

8112361 -468,169.87

8112367 -110,002.32

8112369 -364,132.12

8112371 -78,293.00

8112488 -17,720.00

8112489 -33,560.00

8112492 -486,920.92

8112508 -1,693,302.38

Total -127,39,394.11

The following List of Old Items of SRIR are:

Assignment Document No Doc. Date Amount

8103943 7308016705 20.08.2008 -67,025.83

Maintenance of garden at OIL

Complex

8107077 7310012258 22.07.2010 -6,500.00 Misc. Maintenance job

8107312 8411900006 01.03.2011 -4,595.35 Bill for the month of June 2010

8110124 7313006272 07.06.2013 -648,348.00 Bill for May 2013


Annexure-E

Variance Analysis of the Various Controllable Expenditures shown under Austerity Measure-

a. Overutilization more than 20% of Budget

Cost Elements APRIL TO

DEC'13 (Actual)

APRIL TO

DEC'13 (PLAN)

VARIANCES

(ACTUAL Vs BUDGET)

VARIANCES

(in %)

APRIL TO

DEC'12 (Actual Prev.Year)

VARIANCES

(Current Year

Vs Previous Year)

VARIANCES

(in %)

731051 Cont-Ser-Tech Stds& 65,480,943.76 624,406.50 64,856,537.26 10,386.91 726,822.00 64,754,121.76 8,909.21

712600 Consptn-Lab Eqp&Chem 11,533.44 601.5 10,931.94 1,817.45 20,860.00 -9,326.56 -44.71

780080 Social Welfare Exp 268,892.00 14,949.75 253,942.25 1,698.64 12,402.00 256,490.00 2,068.13

731050 Cont-Ser-Mgt Cons Se 265,501,736.23 19,317,763.50 246,183,972.73 1,274.39 184,856,318.43 80,645,417.80 43.63

780076 Sund Exp-Donations 38,765,000.00 3,367,629.75 35,397,370.25 1,051.11 117,960,000.00 -79,195,000.00 -67.14

780041 Data Docket & Data V 8,523,046.52 805,528.50 7,717,518.02 958.07 8,523,046.52 #DIV/0!

733001 Contract-Civil-Maint. 612,836.24 96,521.25 516,314.99 534.92 71,500.00 541,336.24 757.11

731080 Cont-Ser-Advertiseme 35,428,524.52 6,263,984.25 29,164,540.27 465.59 22,084,775.24 13,343,749.28 60.42

731090 Contract-Services Printing 26,940,199.38 5,503,076.25 21,437,123.13 389.55 2,482,015.00 24,458,184.38 985.42

714100 Other General Stores 4,555,284.29 934,673.25 3,620,611.04 387.37 1,045,854.78 3,509,429.51 335.56

714200 Off Eqpt & Accs 980,698.18 269,035.50 711,662.68 264.52 296,265.57 684,432.61 231.02

703011 Training Exps-India 5,946,738.00 2,293,465.50 3,653,272.50 159.29 1,466,840.00 4,479,898.00 305.41

703018 Emp Costs-Hotel Exp 13,466,095.43 6,658,953.00 6,807,142.43 102.23 6,334,264.17 7,131,831.26 112.59

731031 Cont-Ser -Off Eqp Ma 287,444.94 155,495.25 131,949.69 84.86 181,000.00 106,444.94 58.81

714300 Consumption-Stationery 3,531,774.84 2,048,524.50 1,483,250.34 72.41 2,232,344.16 1,299,430.68 58.21

703012 Training Exps-Abroad 1,082,483.26 645,852.75 436,630.51 67.61 751,785.84 330,697.42 43.99

703009 Trav Exps- India 33,292,832.09 20,381,978.25 12,910,853.84 63.34 24,949,042.26 8,343,789.83 33.44

700105 Emp Costs-Staff-Overtime 10,855,042.55 6,780,735.00 4,074,307.55 60.09 5,965,288.70 4,889,753.85 81.97

780003 Sund Exp-Certificatio Fee 325,715.00 206,278.50 119,436.50 57.90 194,185.00 131,530.00 67.73

703010 Trav Exps-Abroad 30,957,842.20 19,825,967.25 11,131,874.95 56.15 27,960,751.88 2,997,090.32 10.72

780030 Pstge & Courer Ser 1,647,658.00 1,098,288.00 549,370.00 50.02 1,259,018.00 388,640.00 30.87

721000 Mat Con-F&Lube Oil 2,204,813.00 1,501,214.25 703,598.75 46.87 1,380,439.00 824,374.00 59.72

714501 Food Stuff - Man Pos 13,653,715.00 9,667,931.25 3,985,783.75 41.23 9,030,863.00 4,622,852.00 51.19

712300 Consumption-Electrical

Items 331,952.55 236,967.00 94,985.55 40.08 202,720.50 129,232.05 63.75

732000 Cont-Hiring-L M V 29,705,251.03 22,030,488.00 7,674,763.03 34.84 22,233,067.12 7,472,183.91 33.61


b. Expenses were incurred without Budget heads

Cost Elements

APRIL TO

DEC'13 (Actual)

APRIL TO

DEC'13 (PLAN)

VARIANCES

(ACTUAL Vs BUDGET)

VARIANCES

(in %)

APRIL TO

DEC'12

(Actual Prev.Year)

VARIANCES

(Current Year

Vs Previous Year)

VARIANCES

(in %)

714500 Med,Surg&Path Cons 200,000.00 200,000.00 200,000.00

711800 Consptn-Bldg Materls 441,675.01 441,675.01 441,675.01

703017 Emp Costs-

Conference Expenses 1,822,363.37 1,822,363.37 1,822,363.37

713300 Consumption-Spares-

Transport 109,400.00 109,400.00 3,990.00 105,410.00 2,641.85

712800 Consumption-Tools 6,030.08 6,030.08 2,126.00 3,904.08 183.63

703002 Amentities & Welfare 71,300.00 71,300.00 468,504.00 -397,204.00 -84.78

c. GLs wherein underutilization is more than 30%

Cost Elements

APRIL TO

DEC'13

(Actual)

APRIL TO

DEC'13 (PLAN)

VARIANCES

(ACTUAL Vs

BUDGET)

VARIANCES

(in %)

APRIL TO

DEC'12

(Actual Prev.

Year)

VARIANCES

(Current Year

Vs Previous

Year)

VARIANCES

(in %)

731032 Cont-Ser-Other Maint 43,085,918.30 64,884,746.25 -21,798,827.95 -33.60 48,842,790.21 -5,756,871.91 -11.79

731070 Contract-Services-

Security 6,844,148.00 10,416,937.50 -3,572,789.50 -34.30 7,491,465.61 -647,317.61 -8.64

780011 Sund Exp-Professional

Fees 9,012,108.00 14,869,482.75 -5,857,374.75 -39.39 17,308,711.99 -8,296,603.99 -47.93

751000 Rent, Rates & Taxes 28,328,297.00 52,508,943.75 -24,180,646.75 -46.05 12,907,749.00 15,420,548.00 119.47

712400 Consptn-Elec&Instrum 39,255.55 73,018.50 -33,762.95 -46.24 6,149.70 33,105.85 538.33

714302 Stationery-Man Entr 224,290.00 418,047.75 -193,757.75 -46.35 427,142.00 -202,852.00 -47.49

780075 Sund Exp-Courtesy

Expenses 2,650,778.00 8,321,684.25 -5,670,906.25 -68.15 2,037,794.23 612,983.77 30.08

780016 Sund Exp-Advertisement 20,000.00 1,727,581.50 -1,707,581.50 -98.84 2,010,941.00 -1,990,941.00 -99.01

780006 Sund Exp-Internal Audit

Fees 1,169.85 259,826.25 -258,656.40 -99.55 273,957.52 -272,787.67 -99.57


Annexure-F

Reconciliation of Loans and Advances (Corporate office) Balance as on 31.12.2013

Annexure to the reply-

Sl.

No Type Of Loan Loan Type GL Head As per GL

As per payroll

(PC00_M99_CLOG

Out of the

system Balance

(Mr.SK Biswas) Diff

1 CAR Loan

3003 and 3004

(New & Old) 560402 34,820,590.87 34,813,924.87

-6666.00

2 HBA(Old & new) 3000 (old 3001) 560400 94,048,071.46 93,306,803.46

1,48,546.00

-592,722.00

3 Second Advance HBL 3002 560401 1,510,586.29 1,035,645.29

-474941.00

4 Furniture Loan 3007 560406 1,809,581.99 1805,782.00

-3799.99

5 Computer Loan 3008 560405 299,750.00 299,750.00

0.00

6 Children Education loan 3330 560411 5,103,641.00 4,528,141.00

-575,500.00

7

Adv To Emp - Festival

Advance 3011 560303 566,081.00 506,081.00

-60,000.00

8

Loan To Emp -

Scooter/Motor Cycle

Loan (brand new) 3005 560404 175,695.00 175,695.00

0.00

9 Multi purpose 3022 560325 3,474,648.00 3,118,481.00

3,39,441.00

-16,726.00

Total 14,18,08,645.61 13,95,90,303.62 4,87,987.00 -1,730,354.99

As of March 2014, most of the differences have been reconciled.


Chapter 5 Follow up Status of Previous Internal Audit

The follow up report with the respective user department will be provided in 4th Qtr

Audit Report.

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