Report on the Financial Statements

We have audited the accompanying financial statements of KARNATAKA STATEUNORGANISED WORKERS SOCIAL SECURITY BOARD, which comprise theBalance Sheet as at 31 March 2014, and the Statement of Income & Expenditure for theyear ended, and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position & financial performance of the BOARD inaccordance with the Generally Accepted accounting principles in India. Thisresponsibility includes the design, implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued bythe Institute of Chartered Accountants of India. Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the Board's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accounting

VINDEPENDENT AUDITOR'S REPORT

Poojari & AssociatesChartered Accountants

No. 12,1st Floor, Temple Court Apartments,3rd Temple Road, 15th Cross, Malleswaram,

Bangalore - 560 003Phone : 23469928, Fax : 23469929

E-mail: poojariassociates@gmail.commanjuinchara@yahoo.co. inwww.poojariassociates.com

U.K. Ramesh, B.com. f.ca

C.N. Regie, B.com, f.ca

G. Manjunatha, B.com.. f.ca

H.C. Shyam, b.cooi.aca

Place: BangaloreDate: 19 June 2014

For Poojari & AssociatesChartered AccountantsF.R.N.: 005457S

policies used and the reasonableness of the 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 toprovide a basis for our audit opinion.

OpinionIn our opinion and to the best of our information and according to the explanations givento us, the financial statements give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:

i. In the case of the balance sheet, of the state of affairs of the Board as at31 March 2014;

ii. In the case of the Income & Expenditure, of the excess of income over expenditure

for the year ended 31 March 2014;

Joint Secretary

for KARNATAKA STATE UNORGANISEDWORKERS SOCIAL SECURITY BOARD

6,38,26,23126,21,78838,50,032

1

6,68,149

678

5

DepositsLoans and Advances

Cash at Bank

Cuirent Assets

Fixed Assets (as per Schedule)

~*:.i*:*- ^,5^i-

1,45,9162,30,9866,77,060

6,99,12,238

Date: 19 June 2014Place: Bangalore

(G.Manjunatha) {3f ^.RoasSlAwAPartner S ^^^)f\

M.No.: 207154 TO^ JMi

for POOJARI AND ASSOCIATESChartered Accountants

RUN.: 005457S

234

1

As per our report of even date.

Sundry Creditors

Provisions

Other Liabilities

Current Liabilities & Provisions:

Capital Fund

P" "^o^* . , .^filBALANCE SHEET AS AT 31ST MARCH 2014

KARNATAKA STATE UNORGANISED WORKERS SOCIAL SECURITY BOARD

Karmika Bhavan, Bannerughatto Road, Bangalore-560029

for KARNATAKA STATE UNORGANISEDWORKERS SOCIAL SECURITY BOARD

Place: Bangalore

for POOJARI AND ASSOCIATESChartered AccountantsF.R.N.: 00S4S7S

As per our report of even date.

627.00

1,53,708.49

32,680.00

1,18,104.00

71,45,000.00

By Interest on Saving Bank Account

By Interest on FD Account

By Incentive Income

By Application Fees

By Administrative Grants

35,41,551.65

1,23,025.00950.00

2,51,879.0015,533.00

1,80,111.0044,917.0021,769.0086,539.00

30,42,173.002,597.00

43,891.006,030.002,921.00

19,822.0015,146.00

998.8433,708.0016,558 00

Transferred to CapitalTo Excess of Income Over Expenditure

To DepreciationTo Water ExpensesTo Vehicle ExpensesTo Vehicle InsuranceTo Travelling & AllowancesTo Telephone ExpensesTo Medical ReimbursementTo Leave EncashmentTo SalariesTo Rates & TaxesTo Printing and StationeryTo Postage and CourierTo Office ExpensesTo Meeting ExpensesTo Computer MaintenancesTo Bank ChargesTo Audit FeesTo Advertisement Expenses

INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2014

KARNATAKA STATE UNORGANISED WORKERS SOCIAL SECURITY BOARDKarmikaBhavan, Bannerughatto Road, Bangalore-560029

2,58,69,671.00

2,58,69,671.00

2,50,00,000.008,69,671.00

1,19,68,335.40

3,38,52,619.00. 16,45,000.00

4,74,65,954.40

1,34,15,885.003,29,00,000.00

5,91,475.00

5,57,690.40904.00

5,43,99,555.781,10,03,945.00

6,54,03,500.78

2,90,32,889.003,37,50,000.00

26,19,935.78676.00

9,01,381.00

5,88,16,856.0012,56,945.00

6,09,75,182.00

5,87,45,305.00

9,88,489.0012,41,388.00

(c)

(c)

CO

00

MARCH 2014

Unutilized Grants Fund as on 31.03.2014Less: Grants Refund to Govt(with interest)

Opening BalanceAdd: Interest on FD

JANASHREE BIMA YOJANA SCHEME GRANT ACCOUNT

Unutilized Grants Fund as on 31.03.2014

Less: Utilized during the yearLess: 5% on Grants Transferred to Administrative Purpose

Opening BalanceAdd: Grants Received FromGOKAdd: Registration FeesAdd: Interest on FDAdd: Interest on SB

ACCIDENT SCHEME GRANTS FUND ACCOUNT

Unutilized Grants Fund as on 31.03.2014Less: Utilized during the year

Opening BalanceAdd: Grants Received FromGOKAdd: Interest on FDAdd: Interest on SB

PENSION SCHEME GRANTS FUND ACCOUNT

Unutilized Grants Fund as on 31.03.2014

Less: Grants Refiind to Govt(with interest)Less: General Fund Account

Opening BalanceAdd: Grants Received During the yearAdd: Interest on FDAdd: Interest on SB

KSUWSSBSOCIAL SECURITY SCHEME GRANTS FUND ACCOUNT

Note:l Capital Fund:

^p ,,1,-b;, ; „, ll^^M^l- *t*^^ .• ^^^*^ • • -*^ ff~*^--

SCHEDULES TO BALANCESHEET AS AT 31

KARMATAKA STATE UNORGANISED WORKERS SOCIAL SECURITY BOARDKarmika Bhavan, Bannerughatto Road, Bangalore-560029

38,50,032.00

9,01,381.0017,880.38

29,24,703.05

6,067.70

26,21,788.0024,57,824.00

1,63,964.00

638,26,231.00

35,91,719.035,46,37,012.29

55,97,499.33

6,77,060.00420.00

15,000.004,500.00

800.0071,162.00

5,85,178.00

230,986.00

33,708.003,845.008,733.00

1,84,700.00

1,45,916.0042,621.0031,895.0071,400.00

6,99,12,237.83

34,27,429.78(2,03,844.89)12,56,945.009,88,309.02

35,41,551.65(21,55,531.00)

TOTALCorporation Bank A/c - 4040-Social Security Scheme

Corporation Bank A/c - 120005-Pension Scheme

Corporation Bank A/c - 120004- Accident scheme

Corporation Bank A/c - 110003- GeneralNote; 8 Bank Account:

TOTALTata AigTDS ReceivableNote: 7 Loans and Advances:

TOTAL

Fixed Deposit at Corporation Bank-110003- General FundFixed Deposit at Corporation Bank- 120005-Pension SchemeFixed Deposit at Corporation Bank- 120004- Accident Scheme FundNote: 6 Deposit

TOTALGIS PayableGPF PayableKGID Payable

Others:PT PayableTDS Payables

Duties and Taxes:EMD DepositNote: 4 Other Liabilities:

TOTAL

Audit Fees PayableTelephone Charges PayableFuel Expenses PayableSalary PayableNote: 3 Provisions:

TOTALCAMSAlankit AssignmentPFRDA

Note: 2 Sundry Creditor

TOTAL (aH(b)+( c) +(d)+fe)

Closing Balance as on 31.03.2014Less: Pension SchemeAdd: Social Security SchemeAdd: Accidental SchemeAdd: Excess of Income over ExpenditureOpening BalanceGENERAL FUND ACCOUNT

A.SIGNIFICANT ACCOUNTING POLICIES:

1.These financial statements have been prepared in accordance with the applicable

accounting standards and in accordance with the relevant discloser's requirements.

2.These financial statements have been prepared in accordance with the historical cost

convention method and on accrual basis.

3.Fixed assets are disclosed in the accounts at historical cost together with all costsdirectly attributable to their acquisition.

4.Depreciation is provided on the written down value method and as per the ratesspecified under the Income Tax Act, 1961.

5.Grants in Aid:

i) All Government grants are accounted on actual receipt basis though theaccounts are prepared on accrual basis.

ii) Grants received from Government of Karnataka for Implementing SocialSecurity Schemes are treated as capital fund and kept under Govt. grants fundaccount. The un-utilized Govt. grant at the end of the year is kept under un

spent grants amount pending for utilization.

iii) Govt Grants received towards Karnataka State Private Commercial VehicleDriver Accident Benefit Scheme is treated as capital grants and interest earnedon unutilized grant from saving Account & fixed deposit accounts are treatedas part of grant and have been shown under un-spent Accident Benefit GrantsAccount

iv) Govt Grants received towards NPS Lite Swavalambana Scheme is treated ascapital grants and interest earned on unutilized grant from saving Account &

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTSFOR THE YEAR 2013-14

KARNATAKA UNORGANISED WORKERS SOCIAL SECURITY BOARD:

B.NOTES ON ACCOUNTS*^.

1)The board has released an amount of Rs.l, 10,03,945/- from NFS LiteSwavalambana Grants accounts towards state government matching contributionfor eligible Swavalambana subscriber & promotional expenditure out of iota!grants of Rs.6,54,03,500.78 available(includmg the amount received in the currentyear of Rs.3,3 7,50,000/- from Govt of Kamataka)

2)The board has released an amount of Rs. 3,54,97,619/- from Accident BenefitGrants Account towards insurance payment & Promotional expenditure out oftotal grants of Rs.4,74,65,954.40/- available(including the amount received in thecurrent year of Rs.3,29,00,000/- from Govt of Kamataka).

3)The board has refunded unspent Grant of social security scheme along withinterest thereon to concerned authority an amount of Rs.5,88,16,856/- due to non-implementation of social security scheme as per Govt order.

The board has received interest amounting fo Rs. Rs.9,01,381/-'during the current

year from Saving Bank Account (Corporation Bank A/C - 4040) from the fundsunder social security scheme. Hence same need to be refunded to Govt ofKamataka as per Govt order.

4)The board has refunded unspent Gant of Janashree Bima Yojana Scheme alongwith interest thereon to concerned authority an amount of Rs. 2,58,69,671/- due tonon-implementation of Janashree Bima Yojana Scheme as per Govt order.

5)The board has received an amount of Rs.8,04,180/- from PFRDA during the yeartowards incentive payment to facilitator & spent an amount Rs.7,00, i 00/- towardsincentive payment & recognized Rs.32,680/- as income to board on new

enrolment of 1634 Subscriber at Rs.20 each.

fixed deposit account are treated as part of grant and has been shown under

un-spent Lite Swavalambana Grants Account.

v) Grants Received towards administrative expenses is treated as revenue receipt

and has been credited to income and expenditure account.

vi) Application fees received from drivers towards Kamataka State PrivateCommercial Vehicle Driver Accident Benefit Scheme are accounted on

receipt basis.

vii) Interest earned on fixed deposit is accounted on receipts basis.

Place: Bangalore

For KARNATAKA STATE UNORGANISEDWORKER SOCIAL SCURITY BOARD

For Poojari & AssociatesChartered Accountants

F.R.N.: 005457S

Rs. 17,545/-Rs.30,000/-Rs.33,123/-

TdsDeductable

Rs.8,77,279/-Rs.3,00,000/-Rs.16,56,130/-

Amount Paid

ContractConsultantContract

Nature ofPayment

Yakshi CommunicationShanmukappaMysore IT Solution Pvt Ltd

Name of Party

8) The Board has not complied with provision of section 194J & 194C of IncomeTax Act 1961 for non deduction of Tax Deducted at Sources (TDS) in belowmentioned cases.

7) The board has given Bank Guarantee of Rs. 20,00,000/- during the year toPFRDA towards NPS scheme to act as an Aggregator.

6) Previous year figure have been regrouped and arranged wherever necessary.