Audit Reports

Kerala

Overview

In our assessment, the operations of the State Excise Department did not rank high in terms of financial materiality of the revenue generated and financial risk. However, the Department emerged with high priority in terms of significance and visibility of its operations, operational risks and  estimated audit impact. In our view as only limited effort is needed from the Excise Department to generate and collect revenue, the Department activities are more geared towards regulation and

Our audit was conducted between January and May 2011 with focus on identification of key risks by the Department, efficacy in enforcement of provision of Acts and Rules relating to production, transportation and consumption of illicit/harmful spirituous preparations, and effective implementation of annual Abkari policies of the Government. The Report has been prepared by using the COSO frame work of internal controls.
    
In this report we present several lapses such as non-imposition of import fee, non-levy of permit fee, etc. with financial impact of Rs. 253.75 crore. We noticed that the Government adopted inconsistent policies and that the Department had not effectively implemented the Government policies. Waiver of import fee on rectified spirit.
 
We consider that the Government and the top management of the Department did not follow transparent procedures to get an amendment to the Abkari Act enacted to waive import fee on rectified spirit which involves an annual revenue loss of about Rs. 77 core.

Download Audit Report

• Report of 2011 - Full Report
  _{(15.70 MB) Download}

• Preface
  _{(0.07 MB) Download}
• Executive Summary
  _{(0.38 MB) Download}
• Chapter 1 - Backdrop for Audit
  _{(0.71 MB) Download}
• Chapter 2 - Background Information
  _{(0.56 MB) Download}
• Chapter 3 - Control Environment
  _{(1.45 MB) Download}
• Chapter 4 - Risk Assessment
  _{(1.03 MB) Download}
• Chapter 5 - Control Activities
  _{(6.92 MB) Download}
• Chapter 6 - Information and Communications
  _{(0.48 MB) Download}
• Chapter 7 - Monitoring
  _{(0.64 MB) Download}
• Chapter 8 - Conclusion and Summary of Recommendations
  _{(0.51 MB) Download}
• Appendices
  _{(0.16 MB) Download}