Government of Nepal Ministry of Industry, Commerce and Supplies Website: htps://moics.gov.np E-mail : info@moics.gov.np Ref:No. 2o781O79-2-77 Date: _ 12rn July 2022 ,/ 16e World Bank '/NepalCountry office and Yeti Hotel Complex ' Yak Kathmandu. Sub: - Nepal India Regional Trade and Transport Proiect (NIRTTP) (IDA Grant No.: HB63-NEP and IDA Credit No.: 5273-NEP) Audited ProiectAccount. Fiscal Year - 2020/2021 (2077-078) Dear Sir, Please find enclosed herewith a copy of Audited Project Account of Nepal India Regional Trade and Transport Project (NIRTTP, MoICS) for the fiscal year 202012021, (2077 /078) under the IDA Grant No. H8630-NEP and IDA Credit No.: 52730-NEP. Thanking You. Yours Sincerely, 6man Singh Khatri) Under Secretary (Accounts) Cc: Office of Auditor General, Babarmahal. Ministry of Industry, Commerce & Supplies, Singhadurbar, Financial Comptroller General 0ffice, Anamnagar. Phone: OL4L757 9,42LL446, Singha d u rba r, Kathma nd u, Nepal Phone: e'rfifri +.rqf"u i:.:.::l 4255707 A.G. Fax : 977 -1-4268309 Fax : 977 -1-4262798 Post Box :13328 EEl-(rr(EI, +'fAqrd, iqfd{ Ref. No.: - 2078/079- Babar Mahal, Kathmandu, Nepal ctrnq ,rao,6i Date:July 12,2022 INDEPENDENT AUDITOR'S REPORT The Secretary Ministry o/'Finance Singha Durbar, Kathma.ndu. Report on the Financial Statements We have audited the accompanying Project Financial Statement including the Statement of Designated Account and Statement of Expenditure (SOEs) of the "Nepal India Regional Trade and Transport Project (NIRTTP)" financed by IDA Grant No. H863-NP and IDA Credit No. 5273-NP as of l5 July 2021 (31 Ashad 2078) and for the year then ended and a summary of accounting policies and other explanatory notes. Management's Responsibility for Financial Statements: Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with the Government of Nepal (GON) accounting policies and relevant practices. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of project financial statements that are free from material misstatement. whether due to fraud or error. Auditor's Responsibility: Our responsibility is to express an opinion on these Project Financial Statements based on our audit. We conducted our audit in accordance with the INTOSAI (lnternational Organization of Supreme Audit Institutions) Fundamental Auditing Principles. Those principles require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or eror. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion: A management letter highlighting areas for improving financial management is attached herewith. In our opinion, the Project Financial Statements including the Statement of Designated Account, in all material respects, give a true and fair view of the financial position of the "Nepal India Regional Trade and Transport Project (NIRTTP)" as of l5 luly 2021 (31't Ashad 2078) and of the results of its operations and its cash flows for the year then ended in accordance with GON accounting policies. We also report that funds provided under IDA Grant No. H863-Np and IDA Credit No. 5273-NP have been utilized for the intended purpose. In addition, with respect to SOE a) adequate supporting documentation has been maintained to support claims to donors for reimbursement of expenditures incurred, and b) expenditures are eligible for financing under the above- mentioned Loans/Grants. n V"4 (Bamdev Sharma Adhikari) Deputy Auditor General email : oagnep@ntc. n et. np, inJb@pag.gov.np ! 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