A CHARTERED[ ACCOUNTANTS

UDIN: - 19 068385AAAABE1598Auditor's Report on Project Financial Statements for the Financial Year 2017-18

To

The Managing Director

Bihar State Educational Infrastructure Development Corporation, Patna

Report on the Audit of the Project Financial Statements

Opinion

We have audited the accompanying Project Financial Statements of Enhancing TeacherEffectiveness in Bihar Operation" financed by the International Development Association inaccordance with the Financing Agreement and Implementing Entity Agreement both dated10.01.2019 IDA Credit no. 5578 IN and implemented by Bihar State Educational InfrastructureDevelopment Corporation. These financial statements comprise of the Interim unauditedfinancial report (IFR) for the period under audit, and notes to the financial statements, includinga summary of significant accounting policies (collectively referred to as the "Project financialstatements" - PFS).In our opinion the accompanying PFS give a true and fair view of the cash receipts anddisbursements for the year ended on March 31, 2018 and the expenditure of the Project for theyear ended on March 31st 2018 and its cash flows for the year then ended in accordance with theFinancing Agreement and Implementing Entity Agreement stated as above.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) issued by Instituteof Chartered Accountants of India (ICAI). Our responsibilities under those standards are furtherdescribed in the Auditor ' Resp)onsibilities for the Audit of'the Financial Statements section ofour report. We are independent of the implementing agency in accordance with the Code ofEthics issued by the ICAI and the ethical requirements stated in our letter of appointment no 256dated 10.01.2019 for undertaking this assignment, that are relevant to our audit of the financialstatements, and we have fulfilled our other ethical responsibilities in accordance with theserequirements and-ICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.

Registered office: +91 78700 99007 +91 612 2973080 connect.patna@guptasachdevaJin103, 1st Floor, Jagat Trade Centre, +91 75649 00708 +91 612 2973081 fcbo.o19P scd%Fraser Road, Patna - 800 001 +91 75649 00710 +91 612 2973083 ~ 1CbO on utscdv

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Management's Responsibility for the Project Financial Statements

The Project Management & Board of Directors of BSEIDC are responsible with respect to thepreparation of these project financial statements in accordance with the Project FinancingAgreement and Implementing Entity Agreement, accounting principles generally accepted inIndia, including the applicable Accounting Standards. This responsibility also includesmaintenance of adequate accounting records for safeguarding the assets of the Fund and forpreventing and detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments that are reasonable and prudent; and design,implementation and maintenance of adequate internal financial controls, that were operatingeffectively for ensuring the accuracy and completeness of the accounting records, relevant to thepreparation and presentation of the project financial statements that give a true and fair view andare free from material misstatement, whether due to fraud or error.

Auditor's Responsibility for the Audit of the Financial Statements

Our responsibility is to express an opinion on these project financial statements based on ouraudit.

We have taken into account the provisions of the Project Financing Agreement andImplementing Entity Agreement, the accounting and auditing standards and matters which arerequired to be included in the audit report.

We conducted our audit in accordance with the Standards on Auditing issued by the Institute ofChartered Accountants of India. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and thedisclosures in the project financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the project financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considersinternal financial control relevant to the Management's preparation of the project financialstatements that give a true and fair view in order to design audit procedures that are appropriatein the circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the management, aswell as evaluating the overall presentation of the project financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion on the project financial statements.

Report on Other Legal and Regulatory Requirements

Further to our opinion on the Project Financial Statements we report that in our opinion and tothe best of our information and according to the explanations given to us, we believe that projectexpenditure during the period of audit has been correctly reported in the Project FinancialStatement. Further we also certify that:

a. Project funds were utilized for the purpose for which they were intended.

b. Project expenditure were exclusively financed through the project funds and no othersources of funds have been received for incurring those expenditures.

c. Proper books of accounts have been maintained and Project Financial Statement are inagreement with the books of account.

d. Project financial statement has been prepared on cash basis in accordance with theaccounting policies disclosed in the audited annual financial statements of BSEIDC andapplicable to the preparation of the Project financial statement.

e. Interim Financial Reports (IFR) submitted by the Project management can be relied uponto support applications for withdrawal of the Loan, and adequate supportingdocumentation has been maintained to support these claims;

f. The accounting and internal control systems underlying the project and oversight over theProject funds except for the possible effects reported in management letter from auditorwere adequate and maintained throughout the audit period, and

g. Procurements made by BSIEDC under the project had been undertaken in accordancewith agreed procedures.

Other Matter

We have not audited the financial statements/information of Financial Statement of BSEIDC forthe year ended 3 1st March 2018 which has been audited by another auditor and whose reportshave been furnished to us.

For Gupta Sachdeva & Co.(Chartered Accountants)(Firm Reg. No.. 006706N)

Gourav Gunjan(Partner)

(M. No.: 068385)

Date:20.08.20 19Place: Patna

Quarter ended 31.03 2018 IFR 1

Enhancing Teachers effectiveness in Bihar - TA componentBSEIDC

Interim Unaudited Financial Report DateSummary SheetFor the period 01.01.2018 to 31.03.2018

Amount ( RS.)

Category Description Gross Eligilb e Re-imbursment % Net Eligible expenditure Source of Fundexpenditure

1 Consultants services, Training and 1,10,20,731.GO 100% 1,10,20,731.00Workshops and Incremental opertaingcosts for the project,

Government ofBihar (I08 A/C -JTotal 1,10,20,731.00 -_______ 11,0710 70146)

Note Th is to certify that the expenditure is in agreement with the project books of accounts maintained at BSEIOCand supporting documents Including confirmation of delivery of output along with timesheet In case ofAl individual consultants by D (R&T) and SCERT are available in office of BSEIDC.

lHea i ce, BSEID MD 85EIDC

Eeded 31.03.2018IFR2

Particulars Quarter Ended 31.03.18 IN/ues NR up s(INR/Rupees) INR/Rupees INR/Rupees

For 01.01.18 to 31.03.18 FY 2017-18 CumulativeAOPemraBance inrs r d a 5ccount ) (3,26,48,674.70 1,6484,573.00 2,50,32,000.00Additions t8)(nterest received from SB Account) 2,10,504.00 6,71,887.00 12,69,797.00Recrpt fromen PD account

2,00,25,600.00 2,00,25,600.00other Income (if any)Total Receipts (C)

3,28,59,178.70 3,71,82,060.00 4,63,27,39700Less: Expenditure against TA activity(Add rows as applicable)

1. Consultant ServicesPMU support 25,36,934,00 91,21,447,00ICT hardware and media content 4,75,540.00 2,75,540.00 4,75,5400Non conventional energy resource

Enhancement on procurement and FM system and ToR for consultancy of ERPSCERT FM strentheningSCERT Program managementSCERT ICT and continuous professional development (CPD)SCERT Leadership TrainingSCERT midline and endline studies on Teacher performanceImpact evaluation studies

Human resource management information system----- -sruvey of SMC*sverification agencies

1,02,2,3 .00 1,18,17,44.00 1,18,17,44.0

2. Training and workshop costs3. incremental operating costs (Centage by B5EIDC) 00 463130 2,19,43004. Reconciliation for the Interim fund arrangement (Bank)5. Reconciliation for the interim fund arrangement (Bank )----- -6. Audit Fees300U3,000

6,0.0Less; Expenditure other than TA activity ( bank charges) 4130 00401000.0300000

Tota Exendiure(D)1,10,20,731.00 1,53,43,612.30 2,44,88,949.30

Closing Balance (C-D) 21,8477 ,83,4,0 21,8477Closing balance as per bank statement Difference (if any) 2718 78,447.021 8477

Working Notes 17,4 0 7,79901. The bank account statement should be provided along with IUFR.2. Any difference between closing balance as per IUFR and as per bank statement should be reconciled and staterment provided alongwith. The differencearises due to T which Is duly paid on April'18( TOS 3.46,957 &Re imbursement of Rs 68,10,992 )& Rs. 20,000/- from Administrative account)

Head of Fi ance, BS D MD BSEIDC

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