Thursday, April 30, 2015

Certification of Repair & Maintenance Expenses (R&M) and Administration and General Expenses (A&G)

Dated 27th April, 2015

Secy, 
DERC,
Malviya nagar,
New Delhi

Subject : Advertisement by DERC says : Engagement of a Chartered Accountant (CAG Empanelled) for Certification of Repair & Maintenance Expenses (R&M) and Administration and General Expenses (A&G) for BRPL and BYPL for FY 2004-05 and FY 2005-06 

Dear Sir, 

We understand very well that a CAG Empanelled Chartered Accountant does not mean that its the certification by CAG. Anyhow, i would like to ask a few questions as below :

1. Why DERC requires such Certification of Repair & Maintenance expenses as well the Administration & General expenses for the years 2004 - 05  &  2005 - 06 and that too in April 2015 i.e. after 10 years ?

2. Does it mean that the Statutory Auditors have not checked above heads ?

3. In such a case how DERC has relied upon the rest of the expense heads and why DERC has not asked for the Certification of Purchases, Sales, Surplus sales, AT&C Losses as well the Distribution losses for all these years ?

4. If the above figures are yet to be certified, does it mean that the True Up is not done till date for various heads of expenses ? 

5. In such a case, how we can rely upon the Statutory books of accounts of BRPL & BYPL & how the DISCOMs can ask for the review of Power Tariff regularly since 2004 - 05 onwards while even the last Audit report clearly states that : Managements responsibility for the financial statements : Management is responsible for the preparation of their financial statement that give a True & Fair view of the Financial position, financial performance and cash flow....

Sir, Awaiting your most valued reply.

Thanks,

B S Vohra
President
East Delhi RWAs Joint Front - Federation
www.RWABhagidari.com
www.RWABhagidari.blogspot.in

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