Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: cpt :: VAT RATES :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: VAT Audit :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: empanelment :: ACCOUNTING STANDARDS
 
 
« Auditing »
 Time Limit For Completion Of Assessment From The Date Of Special Auditor’s Report Under Income Tax Act, 1961
 Provisioning pertaining to Fraud Accounts
 Tax Audit Report (TAR) Certain exceptions and increased limits according to number of partners and considering nature of activity are desirable
 Cost Auditing Standards [ Cost Audit Documentation (102)] – Part-II
 Conference on Companies Act gets under way
 New bureau to dissolve state-run banks' power to choose auditors
 Foreign Exchange Management (Permissible Capital Account Transactions) (Fourth Amendment) Regulations, 2015
 ICAI forms 'prima facie' view on NSEL auditor
 Firms appoint new auditors in shift to meet new standards
 Cadre restructuring in I-T dept may open scrutiny of closed cases
 RBI issues new guidelines on concurrent auditing at branches

CAG raps PMT operators over rig deals
September, 20th 2010

The operators of Panna-Mukta-Tapti (PMT) oilfields have paid unnecessarily high rates to rig service contractors, the audit and accounts department under the Comptroller and Auditor General of India (CAG) has found.

The operating consortium of the PMT oilfield has RIL (30%), British Gas (30%) and ONGC (40%) as partners.

The auditor has raised objections over the consortiums failure to advertise for inviting companies to pre-qualify for the third-party drilling services contracts valued at more than $3 million.
The consortium awarded 17 such contracts during 2003-04 and 2004-05.

The CAG has said in its report that such discretionary awarding of contracts without inviting pre-qualification bids was detrimental to competition.

The audit department has also said that the consortium procured more than required inventory for operations at the fields by not accounting for reusable items in the inventory stock. The excess pile of inventory might have adversely impacted the profits of the government from these fields, it said in the report.

The consortium has been asked to prepare a report that specifically mentions reusable material deployed in the field.

According to the report, the consortium agreed to pay higher amount to rig and drilling service contractors after these contracts were extended beyond their expiry period of 20 months. According to the auditor, the market rates were found to be lower than the rate paid by the consortium owners.
The audit department has also alleged that the consortium paid higher than the market rate for awarding oil country tubular goods contracts.

Extension of these contracts was made in 2006 for an additional $14.5 million at the same rate at which they were previously awarded. However, according to the auditor, the market rate at the time of re-warding these contracts was lower.

The report has also raised objection for not awarding the execution of new revised plan of development (NRPOD) project to the lowest bidding company, J Ray McDermott, which had quoted a price of $300.77 million.

The NRPOD project was planned to maintain the plateau of South Tapti and development of the Mid-Tapti field. By not awarding the contract to the lowest bidder, the consortium incurred extra expenditure of $28.41 million, the report said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions