M/s A M A A & ASSOCIATES AUDIT REPORT To, The Board of Directors, Bhopal City Link Limited, Bhopal Report on the Project Financial Statements We have audited the accompanying financial statements of the M/s Bhopal City Link Limited, ESCBS Project, Bhopal financed under the World Bank Loan/Grant No. TF018577/IDA, which comprises the Statement of Sources and Applications of Funds and the Reconciliation of Claims to Total Applications of Funds for the year ended 31-03-2020. In our opinion, the aforesaid special purpose Project Financial Statements give a true and fair view of the Project for the year ended on March 31, 2020 and the expenditure of the Project for the year ended on March 31, 2020, Except to the extent covered in our letter (copy enclosed) in accordance with the financial reporting provisions of Section 5.09 of the General Conditions of the World Bank read with the Financing /Loan Agreement and Project Agreement both. Basis for Opinion We conducted our audit in accordance with the Standards on Auditing issued by Institute of Chartered Accountants of India (ICAI). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter These PFS are prepared on cash basis of accounting. The PFS are prepared to assist the M/s Bhopal City Link Limited, ESCBS Project, Bhopal and M/s Bhopal City Link Limited, ESCBS Project, Bhopal meet the financial reporting requirements of the Project’s Loan/grant. Responsibilities of Management and those charged with Governance for the Project Financial Statements The Management of the implementing agency is responsible for the preparation and fair presentation of the Project Financial Statements in accordance with the financial reporting framework described in these financial statements, and for such internal control as management determines is necessary to enable the preparation of Project Financial Statements that are free from material misstatement, whether due to fraud or error. The Management and those charged with governance are responsible for overseeing the implementing agency’s financial reporting process. ----------------------------------------------------------------------------------------------------------------- ADDRESS: UG-2, 17A/56, TRIVENI PLAZA, WEA, KAROL BAGH, NEW DELHI-110 005 PHONE: 011-47057628, 09212327628, e-mail: mukesh@amaa.in M/s A M A A & ASSOCIATES Auditor’s Responsibilities for the Audit of the Project Financial Statements Our objectives are to obtain reasonable assurance about whether the Project Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Standards of Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Standard of Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We report as under  The project financial statements are free from material misstatements, including omission.  Project funds have been used for the purpose for which they are provided.  Project expenditures are eligible for financing under the ESCBS project.  There have been no irregularities involving management and employees who have a significant role in internal control or that have a material effect on the project financial statements.  All books of account and supporting documents relating to the project are available. Other Matter  The project has complied with the conditions of all relevant legal agreements, including the Financing Agreements, the Project Appraisal Documents, the Minutes of Negotiations, and the Borrower’s Project Implementation Plan. Further to our opinion on the Project Financial Statements we further report that: a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; b) in our opinion, proper books of accounts have been kept by the implementing agency for Project purposes so far as appears from our examination of those books; c) the Project Financial Statements dealt with by this report is in agreement with the books of accounts; d) expenditures, including assets created under the Project, shown in the PFS are eligible for financing under the Project Financing Agreements; e) Interim Financial Reports (IFR) submitted by the Project management can be relied upon to support applications for withdrawal of the Grant, and adequate supporting documentation has been maintained to support these claims; ----------------------------------------------------------------------------------------------------------------- Type text here ADDRESS: UG-2, 17A/56, TRIVENI PLAZA, WEA, KAROL BAGH, NEW DELHI-110 005 PHONE: 011-47057628, 09212327628, e-mail: mukesh@amaa.in M/s A M A A & ASSOCIATES f) Procurement has been carried out in line with the agreed procedures as detailed in the Operations Manual/Procurement Manual/Project Implementation Plan/Legal Agreements; and g) The Project has an adequate internal financial control system (including IT controls) and such controls were operating effectively as at March 31, 2020 except reported separately and the Project complies with the provisions on financial management contained in the Operations Manual/ Project Implementation Plan/ Financial Management Manual, in all material aspects. In addition, in our opinion, (a) with respect to IUFRs, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred; and (b) except for ineligible expenditures as detailed in the audit observations, if any, appended to this audit report, expenditures are eligible for financing under the ESCBS Project/Loan/Credit Agreement. During the course of the audit, IUFRs as per Annexure-2 and the connected documents were examined and these can be relied upon to support reimbursement under the ESCBS Project/Loan/Credit Agreement. For M/s A.M.A.A & Associates Chartered Accountants FRN – 013066C FCA Mukesh Sharma Partner FRN - 505453 UDIN: 20505453AAAAND5273 Date: 16-12-2020 ----------------------------------------------------------------------------------------------------------------- ADDRESS: UG-2, 17A/56, TRIVENI PLAZA, WEA, KAROL BAGH, NEW DELHI-110 005 PHONE: 011-47057628, 09212327628, e-mail: mukesh@amaa.in