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This report contains major findings arising from the test audit of transactions of the Indian Navy and the Indian Coast Guard. The report includes the issues related with the Performance Audit on Construction of Indigenous Aircraft Carrier ,Non-delivery of sewage barges, Extra expenditure in procurement of Magnetrons, Avoidable procurement of Radio Receiver Beacons for naval ships, Non-levy of liquidated damages in the procurement of pumps, Under recovery of Rs.6.18 crore due to non-revision of rates of landing charges and Unfruitful expenditure of Rs.5.73 crore on acquisition of land for setting up an Air Enclave by Coast Guard.