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There are many enquiry / inspection / preliminary reports upon the
irregularities occurred in the society lying unattended in fossil condition. All
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the files pending in the office should be reviewed to sort out the irregular
issues.

II. Joint Vigilance Enquiry Report on TTD ECCS Ltd., submitted by Smt. B.H.
Vimala Kumari, V&SO(Vigilance Wing), TTD, Tirupati vide
Roc.No.S6/6992/CV&SO/2016, dt.12.7.2016.

Despite the fact that the Bye-laws provide for raising of funds by means of Fixed
Deposits, Savings Deposit and Recurring Deposits by its members, no action was

found to have been taken in this regard.
No action is also found to have been taken to secure Loans from Dist. Co-op. Central
Bank and the State Co-op. Central Bank.
An amount of Rs.2,59,390/- was incurred in excess of the Budget Provision as
detailed hereunder.
Budget Actual
Sl Expenditure Head Provision expense Excess incurred
No
2015-16 incurred
1 Audit Fees 60,000 94,300 34,300
2 Printing Charges 30,000 67,500 37,500
Outsourcing Personnel
3 0 1,87,590 1,87,590
charges
Total 90,000 3,49,390 2,59,390
The Assets side of the Audited Balance Sheets of the society for the years from
2010-11 to 2014-15 indicate that an amount of Rs.7,300/- was invested long back, in
the DCCB Bank, Chittoor. The Share Certificate issued by the DCCB, Chittoor was
not produced for verification. Since invested long back, details of dividend earned by
the society are not forthcoming. No action was taken to ascertain No. of shares
invested, liability of the share holders, present value of Shares, Annual Dividends
earned so far, etc.
The Register of Investments was found to have not been maintained properly in the
proforma prescribed. Several over-writings and corrections are noticed in the
Register.
Several defects were pointed out in the Special Report dt.19.1.2015 on the society
submitted by M/s. Uma Maheswara Rao & Co., C.A, Tirupati. Almost all the defects

pointed out therein have been allowed to continue, without any action having been
taken to rectify the same.
The EPF amounts instead of depositing in exclusive Bank Account were allowed to
be retained in the business of the society which is highly irregular. While the balance
in EPF of society as on 31.3.2016 stands at Rs.2,04,42,199/-, the amount of EPF in
the Banks including interest accrued upto 31.3.2016 works out to Rs.1,21,57,901/- as
per the Audited Balance Sheet for the year 2014-15 and the Receipts & Payments
statement for 2015-16. Thus, Rs.82,84,298/- has been with the society (without
depositing in Bank and used for business) and remained unaccounted.
121 no. of loans having balance of Rs.39,75,429/- (principle) is noticed as Bad Debts
and their Sureties were stated to have been identified but the connected file was not
made available for verification.

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