Report on Third Party Validation, Scrutiny, Financial and Operational Audits of Government grant

to Utility Stores Corporation for the period from 1 November 2019 to 30 September 2020

Submitted on: 16 December 2021 (revised)

[Report is draft subject to approval of the Board of Directors of Utility Stores Corporation]

Original report submitted on 15 October 2021

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants
Office 07, 3rd Floor, PakLand Square,
G-8 Markaz, Islamabad - Pakistan
T: +92 (051) 2340353
Email: [email protected]
www.bakertilly.pk
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

List of Abbreviations and Acronyms

List of Abbreviations and Acronyms

AFS Stock available for Sale
BCP Business Continuity Plan
BISP Benazir Income Support Programme
BoD Board of Directors
BTMIQ Baker Tilly Mehmood Idrees Qamar
CFO Chief Finance Officer
CIA Chief Internal Audit
ECC Economic Coordination Committee
GBMS Global Business Management Solution
GM General Manager
GoP Government of Pakistan
GRN Goods Received Note
IA Internal Audit
ISQC International Standard on Quality Control
ISRS International Standard on Related Services
IT Information Technology
MD Managing Director
MoIP Ministry of Industries and Production
PPRA Public Procurement Regulatory Authority
SOPs Standard Operating Procedures
USC Utility Stores Corporation of Pakistan (Private) Limited

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 2
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Contents
Executive Summary ...................................................................................................................................................................................................... 5

Introduction and Background ...................................................................................................................................................................................... 7

Scope of Work ............................................................................................................................................................................................................... 9

SECTION 1: ................................................................................................................................................................................................................. 11

VERIFICATION OF PROCUREMENT IN COMPLIANCE WITH PUBLIC PROCUREMENT RULES 2004 AND USC SOPS ___________________________ 11
P R O C E D U R E S P E R F O R M E D ________________________________________________________________________________________ 11
F I N D I N G S ________________________________________________________________________________________________________ 11
R E C O M M E N D A T I O N S _____________________________________________________________________________________________ 11
SECTION 2: ................................................................................................................................................................................................................. 13

IDENTIFY CASES OF COMPROMISE IN IMPARTIALITY IN PROCUREMENT PROCESS THROUGH REVIEW OF PROCUREMENTS IF ANY PROCUREMENT WAS
DONE AT THE TIME OF PRICE HIKE AND SAME ITEM LATER SOLD AT LOWER SALE PRICE ______________________________________________ 13
P R O C E D U R E S P E R F O R M E D ________________________________________________________________________________________ 13
F I N D I N G S ________________________________________________________________________________________________________ 13
RECOMMENDATION____________________________________________________________________________________________ 13
SECTION 3: ................................................................................................................................................................................................................. 14

WHETHER PURCHASES WERE MADE AS PER DEMAND GENERATED BY THE STORES OPERATIONS AND SALES (SOS) DEPARTMENT AND ON TIMELY
BASIS. 14
P R O C E D U R E S P E R F O R M E D ________________________________________________________________________________________ 14
F I N D I N G S ________________________________________________________________________________________________________ 14
R E C O M M E N D A T I O N _______________________________________________________________________________________________ 16
SECTION 4: ................................................................................................................................................................................................................. 17

ASCERTAIN THAT THE PRODUCTS SOLD WERE AT STANDARD PROFIT MARGINS (AS PER MANAGEMENT BENCHMARKS) AND QUOTED PRICES OF THE
SPECIFIED ITEMS WERE AS PER DIRECTIONS OF GOP AND USC BOD DECISIONS. __________________________________________________ 17
P R O C E D U R E S P E R F O R M E D ________________________________________________________________________________________ 17
F I N D I N G S ________________________________________________________________________________________________________ 17
RECOMMENDATION ______________________________________________________________________________________________ 17
SECTION 5: ................................................................................................................................................................................................................. 18

REVIEW AND GIVE OPINION ON SUPPLY CHAIN – WHETHER SUBSIDIZED ITEMS WERE MADE AVAILABLE ACROSS THE COUNTRY. ________________ 18
P R O C E D U R E S P E R F O R M E D ________________________________________________________________________________________ 18
F I N D I N G S ________________________________________________________________________________________________________ 18
R E C O M M E N D A T I O N _______________________________________________________________________________________________ 18
SECTION 6: ................................................................................................................................................................................................................. 19

INVESTIGATE ALLEGATIONS OF STOCK BEING SOLD IN BULK TO RETAILERS/ WHOLE SELLERS/ THIRD PARTY INSTEAD OF PROVISION OF STOCK AT
USC RETAIL OUTLETS _______________________________________________________________________________________________ 19
SCOPE LIMITATION ____________________________________________________________________________________________ 19
SECTION 7: ................................................................................................................................................................................................................. 20

PROCEDURES PERFORMED ____________________________________________________________________________________ 20

FINDINGS ______________________________________________________________________________________________________ 20
RECOMMENDATION____________________________________________________________________________________________ 22
SECTION 8: ................................................................................................................................................................................................................. 23

WHETHER THE FUNDS WERE UTILIZED FOR THE INTENDED PURPOSE OR NOT ______________________________________________________ 23
PROCEDURES PERFORMED ____________________________________________________________________________________ 23
FINDINGS ______________________________________________________________________________________________________ 23
RECOMMENDATION____________________________________________________________________________________________ 23
SECTION 9: ................................................................................................................................................................................................................. 24

VALIDATE AND REPORT ON THE ACCURACY AND CORRECTNESS OF THE AUDITED CLAIMS MADE AGAINST SUBSIDY PROVIDED BY GOP _________ 24
PROCEDURES PERFORMED ____________________________________________________________________________________ 24
FINDINGS ______________________________________________________________________________________________________ 24
RECOMMENDATION____________________________________________________________________________________________ 26
SECTION 10: ............................................................................................................................................................................................................... 27

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 3
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

REPORT ON THE AUTHENTICITY AND ACCURACY OF THE REPORTING MADE TO GOP AND BOD BY USC MANAGEMENT _____________________ 27
PROCEDURES PERFORMED ____________________________________________________________________________________ 27
FINDINGS ______________________________________________________________________________________________________ 27
RECOMMENDATION____________________________________________________________________________________________ 27
SECTION 11: ............................................................................................................................................................................................................... 29

THE CONSULTANT IS REQUIRED TO VALIDATE THAT ALL RELEVANT APPROPRIATE RECORD IS BEING MAINTAINED BY USC IN SUPPORT OF THE
GOVERNMENT GRANTS UTILIZED BY USC. ________________________________________________________________________________ 29
SECTION 12: ............................................................................................................................................................................................................... 30

IDENTIFY INTERNAL CONTROL GAPS IN HANDLING OF GOP GRANTS (FROM ALLOCATION OF BUDGET, TO END CONSUMER BENEFIT, TO PAYMENTS OF
RELEVANT VENDORS). _______________________________________________________________________________________________ 30
PROCEDURES PERFORMED ____________________________________________________________________________________ 30
FINDINGS ______________________________________________________________________________________________________ 30
SECTION 13: ............................................................................................................................................................................................................... 42

GIVE OPINION ON STATUS OF INTERNAL CONTROL ENVIRONMENT OF USC. ______________________________________________________ 42

P R O C E D U R E S P E R F O R M E D : _______________________________________________________________________________________ 42
F I N D I N G S ________________________________________________________________________________________________________ 42
SECTION 14: ............................................................................................................................................................................................................... 47

WHEREVER POSSIBLE, QUANTIFY LOSSES / IMPACT INCURRED DUE TO NON-COMPLIANCE OF POLICIES / NEGLIGENCE/ VIOLATION OF GOOD
PRACTICES. _______________________________________________________________________________________________________ 47
F I N D I N G S : _______________________________________________________________________________________________________ 47
SECTION 15: ............................................................................................................................................................................................................... 48

CONSULTANT TO PROVIDE DETAILED ANALYSIS, RECOMMENDATIONS AND SOLUTIONS ON THE AREAS SPECIFIED ABOVE. ___________________ 48
Annexures .................................................................................................................................................................................................................... 49

ANNEXURE A: EXECUTION METHODOLOGY _______________________________________________________________________________ 49

ANNEXURE B: PROCUREMENT TYPES AND PROCESSES ______________________________________________________________________ 52
ANNEXURE C ______________________________________________________________________________________________________ 61
ANNEXURE D ______________________________________________________________________________________________________ 83
ANNEXURE E _______________________________________________________________________________ 108
ANNEXURE F _______________________________________________________________________________ 113
ANNEXURE G ______________________________________________________________________________ 116

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 4
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Executive Summary

The executive summary intends to provide an overview of the report of ’Third party validation,
scrutiny, financial and operational audit of government grant received by Utility Stores Corporation
of Pakistan (Private) Limited (USC) for the period from November 2019 to September 2020’. We
carried out our work to meet the requirements, objectives/ procedures laid down as per Terms of
Reference (TOR) issued by USC.

ECC directed USC to link with BISP beneficiaries’ database for targeted provision of subsidy to under
privileged segments of society to ‘subsidize the citizen’ rather than ‘subsidize the commodity’.
Despite repeated meetings and directives from ECC and MoIP to USC to focus on targeted subsidy,
the matter remains unfulfilled. Primary reason is lack of PoS machine at outlets and automation
within USC.

USC’s lack of automation has been its single most significant deficiency that is holding its progress.
Nearly, all essential management functions are struggling to realize their optimal potential due to
lack of automation. USC needs POS machines at each shop/outlet, warehouse/inventory
management system, supported by a comprehensive ERP that integrates its Finance, Budgeting,
Accounting, Procurement, Logistics, Sales, Human Resource, and Asset Management. While we
noted that procurement and supply chain have requisite framework and skilled personnel in place,
they lack procurement management system and warehouse management system.

USC is the only retail sector company in Pakistan following PPRA rules for procurement, which may
have an impact quality, rates, delay in supply of items etc., and therefore, we would recommend
amendments to PPRA rules for USC for timely and effective decision making.

Findings: Summary of Key Findings

We have identified various findings as a result of procedures performed as were agreed with USC,
and summary of key findings is provided below:

► Deviations from procurement plan of sugar were noted resulting in shortfall of 33,763 mt of
non-branded sugar and 106,451 mt of branded sugar.

► USC revised the standard sale price of Hayat Ghee, which resulted in excess subsidy claim
of Rs. 13,021,675 from GoP and financial burden on consumers amounting to Rs.
20,834,680.

► Net overstatement in subsidy claim by USC amounting to Rs. 119,786,671, as a result of the
following:

- Difference of Rs. 70,899,941 between Goods Received Note (GRN) data as per
Global Business Management Solution (GBMS) system and GRN as per record of
subsidy claim.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 5
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

- Difference of Rs. 38,362,293 between Stock Debit Note (stock sent by one region to
another) and Stock Credit Note (stock received by one region from another).

- Difference of Rs. 10,524,437 between Opening stock of current month and closing
stock of previous month

► Excess grant amounting to Rs. 832,721,721 claimed due to overlapping in calculation of

utilization of procurement grant calculated based on the procurement of Rs. 10,002,764,303
made during the period from 08 January 2020 to 31 March 2020 (period during which
procurement grant of Rs. 10 billion was consumed by USC). The reason of overlapping was
difference between cost and subsidized price in those cases where subsidized price was
lower than cost.

As a result of review of the business processes, following risk ratings have been assigned to
critical functions of USC:
Core Function Risk Rating Reference

Accounting and Financial Management Moderate High 13.1.1

System

Procurement and Supply Chain Moderate 13.1.2

Internal Audit Function Moderate High 13.1.3

Sales Low 13.1.4

Grant and Subsidy Moderate 13.1.5

IT/Automation High 13.1.6

We are thankful for the cooperation extended by management during the course of this
engagement.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 6
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Introduction and Background

1.1 Operations of Utility Stores Corporation

The USC is committed to provide clean, graded, hygienically fit, unadulterated genuine food and
non-food items to the public and especially to the poorer segments of the society, at comparatively
cheaper rates than the market and to offer them a pleasant environment of mutual confidence while
making their purchases. It is also committed towards its obligation to provide economic relief to the
public by playing its role as a price moderator and deterrent to profiteering, hoarding and black-
marketing.

The USC is carrying out its operations through approximate 4200 stores (Regular and Franchised)
across Pakistan in sixty-four (64) Regions working under nine (9) Zones.

1.2 Objective of Engagement

The objective of the engagement is to conduct a third-party validation, scrutiny, financial and
operational audit of Rs 31 billion funds granted by GoP to USC. The assignment covers the period
starting on the 1 November 2019 till 30 September 2020.

The assignment was carried out in accordance with the International Standards on Related Services
(ISRS) 4400 (Revised), Agreed-Upon Procedures Engagements.

1.3 Purpose of this Agreed-Upon Procedures Report

Our report is solely for the purpose of assisting the Board of Directors of Utility Stores Corporation
of Pakistan (Private) Limited (USC) in determining whether the procurement by USC and subsidy
claim against government grant is compliant with applicable policies and procedures.

1.4 Responsibilities of USC and Baker Tilly MIQ

USC has acknowledged that the agreed-upon procedures are appropriate for the purposes of this
engagement. Objectives/ procedures have been provided in the Terms of Reference (TOR) issued
by USC. Baker Tilly Mehmood Idrees Qamar as appointed by USC, is responsible for the report on
third party validation, scrutiny, financial and operational audits of GoP grant to USC for the period
from 1 November 2019 till 30 September 2020 for which the agreed-upon procedures are performed.

1.5 Baker Tilly MIQ’s Responsibilities

We have conducted the agreed-upon procedures engagement in accordance with the International
Standard on Related Services (ISRS) 4400 (Revised), ‘Agreed-Upon Procedures Engagements’. An
agreed-upon procedures engagement involves performing the procedures that have been agreed
with USC, and reporting the findings, which are the factual results of the agreed-upon procedures
performed. We make no representation regarding the appropriateness of the agreed-upon
procedures. This agreed-upon procedures engagement is not an assurance engagement.
Accordingly, we do not express an opinion or an assurance conclusion. Had we performed additional
procedures, other matters might have come to our attention that would have been reported.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 7
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

1.6 Professional Ethics and Quality Control

We have complied with the ethical requirements as per the International Code of Ethics for
Professional Accountants issued by International Ethics Standards Board for Accountants as
adopted by the Institute of Chartered Accountants of Pakistan.

Our firm applies International Standard on Quality Control (ISQC) 1, ‘Quality Control for Firms that
Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services
Engagements’ and accordingly, maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 8
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Scope of Work

USC issued the Terms of Reference (TOR) which contains objectives/ procedures, as detailed
below, to be achieved/ applied. We have dedicated a section to each objective/ procedure to present
our findings along with other necessary supplementary procedures.

Objectives/ Procedures Reference

i. Ascertain that all procurements have been made as per Public Procurement Section 1
Rules 2004 and USC SOPs.
ii. Identify cases of compromise in impartiality in procurement process. This Section 2
can be done through a review of procurements to see if any procurement
was done at the time of price hike whereas the same item was later sold at
lower sale price.
iii. Whether purchases were made as per demand generated by the Stores Section 3
Operations and Sales (SOS) Department and on timely basis.
iv. Ascertain that the products sold were at standard profit margins (as per Section 4
management benchmarks) and quoted prices of the specified items were as
per directions of GoP and USC BoD decisions.
v. Review and give opinion on supply chain – whether subsidized items were Section 5
made available across the country.
vi. Investigate allegations of stock being sold in bulk to retailers/ whole sellers/ Section 6
third party instead of provision of stock at USC retail outlets. Bulk sales
incidences may be identified through sales data analysis.
vii. Provide detailed review and analysis on end use of subsidy i.e. whether Section 7
targeted poor segment of society was able to procure specified items at
subsidized rates or not. Consultant may achieve this through surveys / focus
group discussions/ or field level research and enquiry.
viii. Give an opinion on utilization of funds i.e. whether the funds were utilized for Section 8
the intended purpose or not.
ix. The bidder is required to validate and report on the accuracy and correctness Section 9
of the audited claims made against subsidy provided by GoP.
x. The Consultant is required to report on the authenticity and accuracy of the Section 10
reporting made to GoP and BoD by USC Management. The Consultant is
also required to report on the non-compliances made on account of non-
submission or delayed submission of periodic reports required to be
submitted to GoP.
xi. The Consultant is required to validate that all relevant appropriate record is Section 11
being maintained by USC in support of the Government grants utilized by
USC.
xii. Identify Internal Control Gaps in handling of GoP grants (from allocation of Section 12
budget, to end consumer benefit, to payments of relevant vendors)
xiii. Give opinion on Status of internal control environment of USC. Section 13

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 9
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

xiv. Where ever possible, quantify losses / impact incurred due to non- Section 14
compliance of policies / negligence/ violation of good practices.
xv. Recommendation: Consultant to provide detailed analysis, Section 15
recommendations and solutions on the areas specified above.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 10
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 1:
Verification of procurement in compliance with Public Procurement Rules 2004 and USC SOPs

PROCEDURES PERFORMED

► We have documented and carried out review of the procurement processes for essential items
which include sugar (branded and non-branded), rice, pulses, wheat, flour and ghee as
documented in Annex B to this document.

► Obtained the list of procurements made during the period under review from GBMS database.
Procurement record for flour is manually maintained by the regions and in addition to list of
procurement from GBMS database, we have taken the procurement of flour based on records
maintained by the regions.

► We have reviewed the compliance with PPRA Rules 2004 which included review of tendering/
bidding process (selection of procurement method, invitation to tenders/ bids, advertisements,
participation of bidders, receipt of earnest money, opening of bids, comparative statements
prepared by tender committe), selection of bidder, issuance of acceptance letter to successful
bidder and signing of contract/ agreement with successful bidder along with issuance of
purchase order.

PPRA Rules are not applicable in case of ghee since ghee is a specific item and it is sold with
brand names.

FINDINGS

1.1 Noncompliance of clause 3 of Rule 33

Rule 33 (3) of PPRA states that “notice of the rejection of all bids or proposals shall be given promptly
to all suppliers or contractors that submitted bids or proposals”. We observed non-compliance of the
aforementioned rule in the case of procurement of non-branded sugar.

1.2 Noncompliance of clause 4 of Rule 16

PPRA Rule 16 (4) states that “the procuring agency shall communicate to those suppliers or
contractors who have not been pre-qualified the reasons for not pre-qualifying them”. We observed
non-compliance of the aforementioned rule in the case of procurement of branded sugar.

USC is of the view that a letter written to a bidder for returning of earnest money serves the purpose
of such notice or communication.

RECOMMENDATIONS

We recommend that the notice to unsuccesful bidders should be sent along with reasons for
disqualification.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 11
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

RISK RATING: Low

1.3 Procurement of sugar at higher prices

In response of USC tender dated 24-11-2019 for procurement of 20,000 mt of sugar, FSM offered
supply of sugar at Rs. 71.1 per kg but later on backed out to enter into agreement with USC and
surrendered the earnest money which was 1% of the bid amount. Consequently, USC had to procure
sugar of 2,000 mt for Rs. 74 per kg and 18,000 mt at Rs. 79.5 per kg from other vendors, which
caused financial impact of Rs. 142,780,000 to USC after forfeiture of earnest money. Had the earnest
money being fixed at 5% of bid amount instead of 1%, FSM would have been compeled to supply
the required quantity. Financial impact is as explained in table below:
Description

Quantity offered by FSM as per tender 20,000 mt

Rate offered by FSM as per tender per kg Rs. 71.1

Total value of sugar as per tender Rs. 1,422,000,000
Actual cost incurred by USC to procure this quantity in subsequent
tenders (2,000 mt @ Rs 74 per kg and 18,000 mt @ Rs 79.5 per kg) Rs. 1,579,000,000
Additional cost incurred by USC Rs. 157,000,000
Earnest money forfeited (1% of bid value) Rs. 14,220,000
Net additional cost incurred by USC Rs. 142,780,000

RECOMMENDATION
USC should fix the earnest money at the maximum limit to minimize the risk of backingout by vendors
to ensure uninterepted supply of commodities and minimize financial risk. The allowed maximum
limit for earnest money as stated in Rule 25 of PPRA Rules 2004 is 5%.

RISK RATING: Moderate

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 12
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 2:
Identify cases of compromise in impartiality in procurement process through review of
procurements if any procurement was done at the time of price hike and same item later sold at
lower sale price

PROCEDURES PERFORMED
For procurement of essential items USC is required to follow PPRA rules which may have certain
drawbacks, however, procurement under PPRA rules provides USC to procure items at competitive
prices through fair, open and transparent process. Further, procurement by USC involves bulk
purchases which often at times result in procurement of items at discount as compared to the market.
USC is also required to meet the demand at multiple locations throughout Pakistan and in the
absence of demand forecasting mechanism, at time would be making adhoc purchases. We have
analyzed cost of procurement with the open market prices of essential items available at Business
Recorder to assess whether items were procured at higher prices or not.

FINDINGS
Supplemented with procedures performed under Section 1, we did not find instances meeting the
criteria provided in the TOR.

RECOMMENDATION
We recommend that USC should put in place an automated demand forecasting system linked with
all the utility stores to keep a check on the stock levels, establish minimum demand & order quantities
alongwith pricing data to ensure that items are procured as may be required with comparison
available for past prices to enable informed decision making.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 13
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 3:
Whether purchases were made as per demand generated by the Stores Operations and Sales
(SOS) Department and on timely basis.

PROCEDURES PERFORMED
► Obtained the list of procurements made during the period under review from GBMS database.
Procurement record for flour is manually maintained by the regions and in addition to list of
procurement from GBMS database, we have taken the procurement of flour based on records
maintained by the regions.

► Compared quantities purchased with demand generated by Stores Operations and Sales
department.

FINDINGS
3.1 Deviations from procurement plan of sugar

USC formulated Procurement Plans for branded and non-branded sugar keeping in view the monthly
demand generated by the SOS department. It was observed that the said procurement plan was not
completely followed during the period of this assignment, resulting in deviations from procurement
plan, which is detailed as follows:

Total
Quantity Actual
Required Purchases Shortfall
Type Period (mt) (mt) (mt)
Non-branded November 2019-September 2020 190,763 157,000 33,763
Branded November 2019-September 2020 166,451 60,000 106,451

3.2 Deviations from approved plan in respect of subsidy claim of Ramzan – 2020

The subsidy claims for Ramzan - 2020 prepared by USC covers the period from 17 April 2020 to 30
May 2020, which is more than the actual number of days of Ramzan - 2020. Ramzan-2020 started
on 25 April 2020 and ended on 23 May 2020. No stock take report is available on 25 April 2020 and
23 May 2020, therefore exact amount of sale and subsidy for Ramzan-2020 could not be determined.

Furthermore, a summary was presented by Industries & Production Division, Government of

Pakistan dated 08 April 2020 to Economic Coordination Committee (ECC), which was approved by
ECC as per notification of Ministry of Industries and Production dated 16 April 2020. The summary
contained a proposal submitted by USC regarding quantities and subsidy rate of 19 essential items
for Ramzan-2020, with total subsidy amount of Rs. 3 billion (Rs. 2.5 billion from subsidy grant of
GoP and Rs. 500 million from previous saving of USC). However, we have noticed following
deviations from the plan presented to ECC:

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 14
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

▪ Actual quantity of flour sold to the public was 40,221 metric tons offered at actual average
subsidy of 2.05 per kg as compared to the planned quantity of 70,000 metric tons at planned
subsidy of Rs. 4 per kg. The short supply was further substantiated by the fact that complaints
were received by USC Head Office regarding the shortage of flour during the same period at
USC outlets.
▪ Actual quantity of sugar sold to the public was 72,646 metric tons offered at actual average
subsidy of 22 per kg as compared to the planned quantity of 50,000 metric tons at planned
subsidy of Rs. 15 per kg. Excess selling of 22,646 metric tons had a monetary impact of Rs.
813 Million in case of sugar.
▪ Moreover, higher amount of subsidy (22 per kg) on sugar may be the reason of excess sale
of sugar by 45% as compared to the planned and simultaneously, such high sale also carries
risk of bulk sale of sugar.
▪ Actual quantity of ghee sold was 22,553 tons as compared to the planned quantity of 30,000
tons and actual average subsidy per kg was Rs. 20.13 as compared to planned subsidy of
Rs. 30.
▪ Actual quantity of oil sold was 7,972 tons as compared to the planned quantity of 15,000 tons
and actual subsidy per kg was Rs. 20 as compared to planned per kg subsidy of Rs. 30.
▪ No subsidy was provided against Dall Mong Washed which was initially part of the ECC
approved subsidy plan.
▪ Although, the actual Ramzan 2020 subsidy amount remained within approved limit, however
item wise impact due to deviation from ECC approved quantities and subsidy rates as follows:

Recalculated
As per Summary claim by us
for ECC of the keeping in view Difference
Cabinet for As per Ramzan quantity and with ECC
Ramzan Relief (17 April - 31st subsidy rates Summary
Package 2020 May) Claim approved by ECC Over/(Under)
Item Rs. Rs. Rs. Rs.
Atta 280,000,000 82,526,093 82,526,093 -
Sugar 750,000,000 1,563,523,975 750,000,000 813,523,975
Ghee 900,000,000 453,898,140 453,898,140 -
Oil 450,000,000 159,442,340 159,442,340 -
Dal Chana 20,000,000 25,000,245 16,666,830 8,333,415
Dal Mash 5,000,000 2,056,170 2,056,170 -
Dal Masoor 5,000,000 24,556,555 5,000,000 19,556,555
Dall Mong Washed 15,000,000 - - -
White Gram 30,000,000 29,472,962 29,213,490 259,472
Utility Super Basmati 27,000,000 30,669,880 20,384,256 10,285,624
Rice
Utility Sella Rice 9,000,000 12,948,045 7,216,049 5,731,996
(Kainat 1121)
Utility Tota Basmati 20,000,000 31,264,131 20,000,000 11,264,131
Rice
Baisan Chakki 50,000,000 26,484,260 26,484,260 -
Dates (Khajoor) 15,000,000 7,256,290 7,256,290 -

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 15
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Squashes & Syrups 20,000,000 42,157,800 16,000,000 26,157,800

(800 ml) Bottle
Squashes & Syrups 60,000,000 14,519,925 11,615,940 2,903,985
(1500 ml) Bottle
Black Tea 130,000,000 100,944,013 100,944,013 -
Milk (UHT) 64,000,000 65,476,494 62,425,258 3,051,236
Spices 50,000,000 16,387,307 16,219,876 167,431
Total 2,900,000,000 2,688,584,625 1,787,349,004 901,235,621

Refer to Annexure F for rate of subsidy and quantity as per actual sales as compared with ECC
approved plan.

RECOMMENDATION
We recommend that USC must comply with the approved procurement plan as the approved
procurement plan is based on demand generated by the SOS department and should devise
mechanism to ensure compliance with ECC directives.

RISK RATING: Moderate

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 16
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 4:
Ascertain that the products sold were at standard profit margins (as per management
benchmarks) and quoted prices of the specified items were as per directions of GoP and USC
BoD decisions.

PROCEDURES PERFORMED
► Obtained management calculation of normal sale price of subsidized items.
► Review of management calculation for adequacy and accuracy
► Compared profit margins applied by management with standard profit margins approved by the
Government of Pakistan.

FINDINGS
It was noted that USC procured 3,932 mt of Hayat ghee brand in the months of November-December
2019, at purchase price of Rs 153 per kg from IFFCO and its sale price was fixed at Rs 162 per kg
based on the profit percentage of 6% which is the standard profit percentage charged by USC in
case of other competitive subsidized ghee brands in the market.

The subsidy period started on January 8, 2020 and the government fixed subsidized price for ghee
at Rs 170 per kg. Since the sale price of Hayat Ghee brand wass Rs. 162 per kg which was less
than the subsidized price (Rs. 170 per kg), therefore this brand was not eligible for subsidy. However,
to make this brand eligible for subsidy USC revised the sale price from Rs. 162 per kg to Rs 175 per
kg resulting in an increase in profit margin from 6% to 14%. This price revision made the product
eligible for the subsidy of Rs. 5 per kg sold, whereas the profit margin on other competitive ghee
brands remained unchanged during this period.

Due to revision in sale price of Hayat Ghee brand, subsidy of Rs 13,021,675 was claimed based on
sale of 2,604,335 kgs at Rs. 5 per kg, which resulted in financial burden on consumers of Rs.
20,834,680 at Rs. 8 per kg (the difference between subsidized price of Rs. 170 and previous sale
price of Rs. 162 per kg).

Subsidy claimed due to

Quantity of Burden on consumer
price revision
Description Month sale
(Kgs) Per Kg (Rs. ) Per Kg (Rs.)
Stock sold Jan-20 2,604,335 5 13,021,675 8 20,834,680

RECOMMENDATION
USC should maintain the standard profit margin for all items in line with Government approved rates.

RISK RATING: Moderate

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 17
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 5:
Review and give opinion on supply chain – whether subsidized items were made available
across the country.

PROCEDURES PERFORMED
► We obtained and carried out analysis of the underlying monthly data used for calculation of
subsidy claims for the period from January 2020 to September 2020. The item-wise data was
available on regional basis.

► We carried out analysis for two datasets – stock available for sale and stock sold to ascertain
whether adequate stock was available.

FINDINGS
We performed the above procedures on the data provided to us by the management and verified
that during the scope period there was no instance of stock out at any region which indicates that
stock was available at all regions. However, due to unavailability of storewise data our analysis
was conducted on regional level and only indicates availability on regional level. There may be
cases of stock outs at some stores within a region but they cannot be identified due to non-
availability of storewise data.

However, as per survey carried out by us for which we have provided results in Section 7, 31% of
the customers claimed that stocks were not available at times or partially available. Refer 7.1 for
further details.

RECOMMENDATION
We recommend that storewise stock movement record should be maintained which will enable
management to identify stores having low stock levels or stock outs.

RISK RATING: Moderate

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 18
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 6:
Investigate allegations of stock being sold in bulk to retailers/ whole sellers/ third party
instead of provision of stock at USC retail outlets

SCOPE LIMITATION

The extent of data required for such investigation could not be made available to our team.
Therefore, the required procedures could not be performed to achieve the desired objective of TOR
No. 6. The matter of limitation of scope was also raised by the consultant with the Board Audit
Committee, in meeting dated 5 May 2021.

However, as an alternative approach, we reviewed and analyzed the subsidy claim database. As
per our analysis certain instances of unusual excessive sale of certain items in particular months in
some regions were noted (Refer to Annexure-G for abnormal trends). These instances may be
indicative of bulk sales of items. However, this analysis is not sufficient to confirm ‘bulk sales’
therefore this matter requires further probing and investigation.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 19
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 7:

Provide detailed review and analysis on end use of subsidy i.e. whether targeted poor segment
of society was able to procure specified items at subsidized rates or not. Consultant may achieve
this through surveys / focus group discu ssions/ or field level research and enquiry.

PROCEDURES PERFORMED
► Customer feedback survey performed through telephonic calls to selected USC outlets and
speaking to customers shopping at that moment.

► Asked customers regarding the availability of stock and prices.

► 600 Utility Stores were sampled based on 95% confidence level and 4% margin of error.

FINDINGS
7.1 Customer Feedback

As per the aforementioned procedures, we conducted customer feedback survey to assess the
availability of subsidized items at government notified prices at utility stores.

In order to assess whether the customers were indeed regular customers of USC, we asked
customers about the frequency of their purchases from USC. The results suggest that 45% of the
customers purchase from USC on monthly basis, 46% on weekly basis and the remaining 9% visit
utility stores occasionally.

Our customer feedback survey results suggest that sufficient stock of subsidized items was available
at 69% of the stores whereas 31% of the stores had partial availability (Partial availability is where
some items are not available all the time).

In addition to above, some customers complained that they were able to purchase subsidized items
only if they purchased unsubsidized items worth Rs. 2000 or more.

Subsidized Stock Availability

80%

60%

40%

20%

0%
Available Partially Available

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 20
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Furthermore, results suggest that subsidized items were available at government notified prices. We
also asked customers about their knowledge of government notified prices and source of that
information, 68% customers knew about subsidized prices through the price schedule displayed in
the utility stores, 25% customers through word of mouth, 3 % through media and the remaining 4%
through other sources.

Stock at Govt Notified Prices

120%
100%
80%
60%
40%
20%
0%
Yes No

7.2 Untargeted Subsidy due to inadequate IT infrastructure

As per the record made available by USC, it was required to provide targeted subsidy to beneficiaries
of Benazir Income Support Programme (BISP) as per the decision taken by ECC’s sub-committee
under the chairmanship of Advisor on Commerce, Textile, Industry & Production and Investment in
its meeting dated 13.11.2019. Furthermore, as per summary submitted to Economic Coordination
Committee (ECC) in its meeting dated 29 March 2020, USC was required to engage itself with BISP
to access BISP data for utilization of Rs. 50 billion.

Moreover, during 1st meeting of ECC’s committee under the chairmanship of Federal Minister for
Industries & Production dated 08.05.2020, following was decided:

“USC to work in collaboration with the relevant Government organizations for smooth implementation
of the Prime Minister’s Relief Package-2020, ensuring the targeted subsidy”.

During 2nd meeting of ECC’s committee under the chairmanship of Federal Minister for Industries
& Production dated 20.05.2020, Chairman BISP informed the committee that USC’s integration with
BISP in order to access household’s data is linked with USC’s ability on IT connectivity, for which
USC may develop the QR Coding Reliability.

During 3rd meeting dated 29.07.2020, the committee decided that “Based on USC’s inability to
launch ERP & IT deployment, till June 2021 the Committee agreed that USC should continue with
the un-targeted subsidy program”. As per minutes of the 3rd meeting, the continuation of un-targeted
subsidy was subject to approval of ECC, which was not provided to us.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 21
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

As per USC`s management response, a POS software has been developed and integrated with
EHSAAS database, however, implementation of the POS system across the organisation is still in
progress and the deadline for implementation is by the end of July 2021. During the period of this
audit no such system was in place.

In view of above, it was observed that one of the most important conditions of the subsidy grant
provided by Government of Pakistan to USC was provision of targeted subsidy by USC to
underprivileged households enlisted under BISP. However, due to absence of required
infrastructure, such provision of targeted subsidy was not possible.

RECOMMENDATION
USC should ensure stock availability at all stores as customer feedback suggests 31% partial
availability of subsidized items.

USC should ensure full compliance with all ECC directives. Organization should invest in installing
the requisite infrastructure (ERP, POS, automation) so that targeted subsidy to poor segments of
society can be routed via USC which will benefit the poor as well as give additional sales to USC.

RISK RATING: High

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 22
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 8:
Whether the funds were utilized for the intended purpose or not

PROCEDURES PERFORMED
► Reveiwed details of funds received from GoP and details of any subsequent changes.

► Verified the utilization of grant from available records of USC

► Reveiwed management calculation of fund utilization to assess the nature and extent of funds
utilized.

FINDINGS
As per the RFP document, funds provided by the Government of Pakistan to USC are as follows:

(Rs. In
Million) Funds for Funds for
Amount Funds for Procurement Funds for Ramzan Funds for IT related
Received on Procurement COVID-19 Subsidy Subsidy Tax Grant Total
26-Nov-19 5,000 - 1,000 - 6,000
25-Feb-20 5,000 - 6,500 2,500 1,000 15,000
9-Apr-20 - 10,000 - - - 10,000
Total 10,000 10,000 7,500 2,500 1,000 31,000
Note* (10,000) 7,668 2,332
10,000 - 15,168 2,500 1,000 2,332 31,000

*As per subsequent information provided by USC vide letter No. Fin-I/243/BT/2021/163 dated 15 April 2021,
COVID-19 funds of Rs. 10 billion were converted to subsidy and IT grant by GoP vide letter No. 1(2)/2020-
USC dated 24 March 2021 (Rs. 7.668 billion for subsidy and Rs. 2.332 billion for IT).

Keeping in view the conversion of COVID-19 procurement grant into subsidy grant, the actual utilization during
the period from January 08, 2020 to September 30, 2020 is as follows signifying that a significant portion of
grant remain unutilized (38%):

(Rs. In Million) Subsidy

Description (incl. I.T Related Turnover
Procurement Ramzan) Grant Tax Total
Total grant received from
10,000 17,668 2,332 1,000 31,000
GoP
Amount utilized by USC 10,000 8,413 - 771 19,184
Net Unutilized grant - 9,255 2,332 229 11,816

RECOMMENDATION
Management should ensure accurate and timely utilization of funds and should keep track of funds
utilized subsequent to the convertion.

RISK RATING: Low

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 23
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 9:
Validate and report on the accuracy and correctness of the audited claims made against
subsidy provided by GoP

PROCEDURES PERFORMED
► Reveiwed mothly subsidy claims submitted to GoP by the USC
► Reviewed underlying record and calculation of monthly subsidy claims
► Recalculated monthly subsidy claims
► Carried out analytical reviews using Benford Law-based Test, correlation analysis and
substantive testing was carried out for specific items as well as for the sample of randomly
selected items

FINDINGS
9.1 Errors in the subsidy claims resulting in net overstatement of Rs.
119,786,671

We recalculated the amount of subsidy based on the components used in the calculation of sales
on which subsidy is claimed by USC. While examining the authenticity of region wise sales quantity
of subsidized items provided by USC, we used different sources of information/data to determine the
accuracy of the quantity of sales as reported in the subsidy claims which are as follows:

a) Compared the Goods Received Notes (GRNs) extracted from GBMS (Global Business
Management Solutions) with the GRNs as reported in the subsidy claims. The former will be
referred hereinafter as GBMS GRNs and later Subsidy claim GRNs.

b) Matched the opening stock of each month with the closing stock of the previous month

c) Compared the stock movement from one region in the form of Stock Debit Note (SDN)1 with the
receipt of stock in the other region in the form of Store Credit Note (SCN)2.

9.1.1. Comparison of Subsidy claim GRN data with GBMS GRNs

Quantities of items sold during a claim period are derived by USC by following formula:

Opening stock (store and warehouse)

add: purchases (GRNs)

add: Stock Credit Note (SCN)

1
Issuance
2
Receipt
Baker Tilly Mehmood Idrees Qamar
Chartered Accountants 24
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

less: Stock Debit Note (SDN)

less: closing stock

In order to validate the quantities of items purchased given in subsidy claim data, these quantities
were compared with GBMS GRNs. As a result, we noted differences between GBMS GRNs and
subsidy claim GRNs with regard to quantities of items purchased by USC during the period form 08
January 2020 to 30 September 2020.

In certain cases, we observed over-statement of subsidy claim GRNs as compared to GBMS GRNs
amounted to Rs. 173,534,170, while in other cases, we observed under-statement of subsidy claim
GRN as compared to GBMS GRN data amounted to Rs. 102,634,229. The differences were
calculated by multiplying differential quantity between GBMS GRN and subsidy claim GRN with
average subsidy per unit prevailing at each month.

The net impact of above-mentioned differences shows over claim of subsidy amounted to Rs.
70,899,941 resulting into excess claim of subsidy by USC from GoP which needs to be rectified.

Refer to Annexure C for details.

9.1.2 Difference between SDN and SCN from one region to other region

We observed differences between items issued by sending region through SDN and same items
received by receiving region through SCN in the subsidy claim data of various regions against
different products, considering SDN as base document for assuming correct quantity of transferred
items for recording SCN:

In certain cases, we observed excess amount of SCNs over corresponding SDNs resulting in excess
subsidy claim of Rs. 120,150,466, while In other cases, we observed under statements of SDNs as
compared to corresponding SCNs which have impact of under claim of subsidy amounted to Rs.
81,788,173.

Therefore, net financial impact is over claim of subsidy by Rs. 38,362,293.

Refer to Annexure D for item-wise details of over/understatement.

9.1.3. Difference between opening and closing stock from one month to the next

We observed differences in closing stock of one month and opening stock of subsequent month in
the subsidy claim data of various regions. Assuming that the closing stock of the previous month is
correct, the overstatement/understatement in sales of subsequent month and resultant impact on
subsidy amount are explained below.
►
Opening stock in the subsidy claim was more than the closing stock of the previous month in
certain regions therefore resulting in the excess claim amounted to Rs. 12,303,709

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 25
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

►
Closing stock was more than the opening stock in certain regions therefore resulting in under
claim amounted to Rs. 1,779,272

Therefore, net financial impact is over claim of subsidy by Rs. 10,524,437.

Refer to Annexure E for item-wise details of over/understatement.

Net Impact on the subsidy claim:

The net impact of the discrepancies reported in the subsidy claims is quantified as follows:

Ref Particular Over claim Under claim Net Impact

. Rs. Rs. Rs.
No.
A Impact on subsidy claim due to the differences 173,534,170 (102,634,229) 70,899,941
between Subsidy claim GRNs and GBMS
GRNs
B Impact on claim due to the differences 120,150,466 (81,788,173) 38,362,293
between SCN and SDN
C Impact on claim due to the difference between 12,303,709 (1,779,272) 10,524,437
opening and closing stock
305,988,345 (186,201,674) 119,786,671
It is pertinent to mention here that the claims for the period from January to September 2020 have
already been audited.

RECOMMENDATION
We recommend that the subsidy claim calculation should be performed with professional due care
in order to avoid such errors in the future.

Stock taking process should be properly instituted on a store-wise and warehouse basis or actual
sales data should be captured to ensure that subsidy claims are processed

Once sales data is even captured – sales versus cash collected analysis should be performed on a
daily basis on storewise basis.

RISK RATING: High

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 26
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 10:
Report on the authenticity and accuracy of the reporting made to GoP and BoD by USC
Management

PROCEDURES PERFORMED
► Reveiwed mothly subsidy claims submitted to GoP by the USC
► Reviewed underlying record and calculation of monthly subsidy claims
► Recalculated monthly subsidy claims

FINDINGS
10.1 Subsidy claims late submission

USC submits monthly audited subsidy claims to GoP for claiming subsidy amount based on
subsidized items sold during the month, however, during the period of our assignment subsidy claims
for the month of July, August and Spetember 2020 were not audited and hence not submitted to
GoP on timely basis.

10.2 Overlapping in Amortization of Government Grant and Subsidy

USC amortizes the procurement grant as per the actual cost of the items purchased. The subsidy
claim in respect of items which were purchased through government grants for procurement contains
an element of overlapping, which is illustrated with the following example:

If the cost, normal sale price and subsidized sale price of an item was Rs. 71, Rs. 90, and Rs. 68
per kg respectively then the grant against procurement was claimed as Rs. 71 per kg, and subsidy
as Rs 22 (being the difference between normal sale price of Rs. 90 per kg and subsidized sale price
of Rs. 68 per kg) resulting into overlap of Rs. 3 per kg being the excess of cost price of Rs. 71 over
subsidized price of Rs. 68. This overlapping of claim occurred in respect of all such instances, where
subsidized price was lower than cost of the item.

Total financial impact of such overlapping is Rs. 832,721,721 calculated based on the procurement
of Rs. 10,002,764,303 (during the period from 08 January 2021 to 31 March 2021 in which
procurement grant of Rs. 10 billion was consumed by USC), which has been agreed and rectified
by the management in the amortization methodology of government grant on the basis of our
recommendation.

RECOMMENDATION
▪ USC should ensure timely submission of monthly audited subsidy claims.

▪ To overcome such discrepancy in the amortization methodology adopted by USC in the future,
it is recommended that the amount of amortization against procurement should be restricted to
the subsidized price of the item in case where cost is more than the subsidized price to avoid
overlapping of claiming the portion of each item against procurement grant as well as in subsidy
claim.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 27
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

RISK RATING: Moderate

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 28
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 11:

The Consultant is required to validate that all relevant appropriate record is being maintained
by USC in support of the Government grants utilized by USC.

Except for the matters described in section 1 to section 14, nothing has come to our attention that
cause us to believe that appropriate record has not been maintained by USC in support of utilization
of government grants.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 29
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 12:
Identify Internal Control Gaps in handling of GoP grants (from allocation of budget, to end
consumer benefit, to payments of relevant vendors).

PROCEDURES PERFORMED

► We conducted focused discussion, interviews of the process owners, gather information through
questionnaires together with detailed review of documents to gain understanding of business
processes relating to finance and accounting (record to report), procurement and supply chain
(procure to pay), sales (order to cash), grants and subsidy, Information Technology and Internal
Audit (our process documentation is provided in Annex B to this document)
► A standardized risk methodology was developed tailored to overall control environment of USC
and organizational design
► Risk matrix comprising of four components was developed: High, Moderate High, Moderate and
Low. Overall rating was assigned to business processes/ area using the risk matrix.

Refer next Section for the Risk Rating assigned to each area and Annex A for detailed methodology
used for risk methodology, assessment and rating.

FINDINGS

12.1 GOVERNANCE

12.1.1 Deficiencies in Monitoring Process

We have noted that there is no mechanism in place for benchmarking the organizational processes
with its competitors, to improve organizational operations, identifying value adding activities such as
business intelligence, eliminating non-value adding activities in the light of emerging trends and
demands of the market, improvement in IT Infrastructure, required skills set in terms of competency,
experience and training requirements of its Human Resources etc.

Similarly, essential documents are either obsolete, non-existent or not approved:

I. Board Audit Committee charter is not in place

II. Audit Policy is not comprehensive and separate audit manual does not exist
III. Business Continuity Plan (BCP) is not in place
IV. Policy regarding the amortization of grants is not in place
V. HR Service Rules and Disciplinary Powers is not updated
VI. Store Operational Manual is not updated
VII. Comprehensive financial powers matrix is non-existent.

Impact

Organization’s operations as well as strategic development is hampered by lack of above-mentioned

documents/ plans.
Baker Tilly Mehmood Idrees Qamar
Chartered Accountants 30
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Recommendation

USC must benchmark its performance and growth to industry best practices. It should ensure that
the above-mentioned documents/plans are developed and implemented.

Risk Rating: Moderate

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 31
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

12.2 FINANCE & ACCOUNTING

12.2.1 Vacancies and frequent transfers & posting of key positions

Issue
• As per Public Sector Rules 2013 (13) “The Board shall appoint a Chief Financial Officer, a
Company Secretary and a Chief Internal Auditor by whatever name called”. However, we noted
the positions of Chief Financial Officer has been filled with effect from 17th May 2021 after
remaining vacant for about 3 to 4 months.

• Frequent transfer and posting of key positions

Impact
Frequent transfer and posting of key positions may results in inefficiencies of systems, processes
and controls.

Recommendation
• The CFO position should be filled without significant delay.
• Transfer posting of all staff, particularly senior staff should be done on merit and should not be
frequent. This will allow senior staff time to understand their role which will lead to more efficient
staff performance.

Risk Rating: High

12.2.2 Outdated Accounting Manual

Issue

The accounting manual of USC was developed in 1981 and has not been updated to incorporate
latest pronouncements and changes in IFRS and other applicable regulatory requirements.

Impact

• Organization is depriving it self of the development introduced by changes in IFRS.

• Organization is in non-compliance with applicable regulatory requirements.

Recommendation

USC should draft a new accounting manual that is in accordance with IFRS as well as other
applicable regulatory frameworks.

Risk Rating: High

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 32
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

12.2.3 Lack of Skill and Knowledge in Finance and Internal Audit

Issue

• Staff in finance, accounts and internal audit departments are lacking requisite accounting,
auditing and reporting knowledge.
• The compilation of financial results by USC is not made on timely basis as a result statutory
audit for the FY 2020 could not be completed on timely basis to comply with the regulatory
requirements.

Impact

Finance, Accounting and Internal Audit Functions are working below par and are lagging in fulfilling
their primarily duties such as providing timely finance and audit reports to senior management and
the Board.

Recommendation
• Organization should conduct skill gap analysis of its employees i.e., it should evaluate what sort
of skills, qualification and knowledge do the staff of finance and internal audit department have.
Subsequently, it should
a) post staff to positions commensurate with their knowledge and skills
b) train its staff in areas they are found lacking in
c) hire new staff with requisite skills and knowledge.

Risk Rating: High

12.2.4 Tracking of Grants

Issue

Currently, there is no separate module for the automation of government grant/subsidy mentioned
in Requirement Specifications Document (RSD) of ERP, which may keep track of procurements
made against grants separately within the supply chain module of the ERP. Subsidy against the
grant may then be calculated automatically based on the subsidized items sold and to separate the
items which were procured against the government grant for the application of restricted
subsidy/grant there against.

Impact

Organization will not be able to report accurately on utilization of Grants as the sale of subsidy items
my get admixed with other sales.

Recommendation

ERP should have an independent module for Grant Utilization and Subsidy sale.

Risk Rating: Moderate

Baker Tilly Mehmood Idrees Qamar
Chartered Accountants 33
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

12.2.5 Lack of Integration of GRN with GBMS

Issue

• GRNs are recorded at each region in Fox-Pro based system, which is not integrated with Global
Business Management Solution (GBMS). As a result, the GRNs are manually posted in GBMS.
• It has also been observed that in case of flour, the GRNs are only recorded manually by the
regions and no record is available in GBMS.

Impact

There is a risk that certain GRNs may remain unrecorded in GBMS.

Recommendation

USC should have one integrated ERP that generates and posts GRNs in the accounting system.

Risk Rating: High

12.2.6 Lack of Automation

Issue

• It has also been observed that no POS system is installed at stores of USC to capture actual
sales made during the period. Instead, sales is determined as a balancing figure by using the
formula (Sales=Opening stock + Purchases (GRN) + Stock Credit Note (SCN) – Stock Debit
Note (SDN) - Closing stock). This practice is against the best practices of accounting and
reporting system.
• Management has not implemented ERP in the organization, in order to meet basic requirements
from purchase to payment processes. Global Business Management Solutions (GBMS) is
implemented which has several limitations.
• We noted that official domain is not used for the communication within the organization at all
levels of the organization, instead; open-source email like Gmail is used which is vulnerable to
many risks such as leakage of confidential information of the organization and is prone to
hacking.

Impact

Organization is at risk of over / understatement of its sales figures. Additionally, Organization is

exposed to the risk of its staff pocketing independent sales i.e., sale of products obtained from
outside sources.

Organization is depriving itself of the tremendous benefits of automation including i) better, real time
reporting of inventory, sales, purchases ii) smooth financial management and reporting iii)
transparent and water tight internal controls iv) personnel management and much more.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 34
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Recommendation

USC must deploy POS at each outlet and must deploy a fully integrated ERP across USC’s entire
operation.

Risk Rating: High

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 35
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

12.3 INTERNAL AUDIT FUNCTION

12.3.1 CIA Position Vacant

Issue

As per Public Sector Rules 2013 (13) “The Board shall appoint a chief financial officer, a company
secretary and a chief internal auditor by whatever name called”. However, we noted the positions of
Chief Internal Auditor is vacant for past few months.

Impact
CIA is critical position in an organization of the magnitude of USC. Without a qualified CIA,
organization’s internal audit function is weak.

Recommendation

Position CIA must be filled by hiring of competent and qualified individuals at the earliest.

Risk Rating: High

12.3.2 Deficiencies in Risk Assessment

Issue
• There is no risk management function in USC, therefore, there is no mechanism in place for
identification, measurement and mitigation of business risks, which might hinder the entity from
achievement of its business and operational objectives.
• Consequently, no reporting on risk management is made to the senior management and board
of directors.

Impact
Organization may be exposed to existential risks that the Board and Senior management of USC
may be unaware of.

Recommendation
• Organization should hire a Chief Risk Officer or give the task of risk evaluation to CIA.
• Organization must develop a risk framework and should evaluate its operations on that
framework at the earliest.

Risk Rating: Moderate

12.3.3 Internal Audit Framework

Issues

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 36
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

I. We noted that internal audit function has not determined its audit universe which may
encompass all the areas which are required to be audited by the internal audit function. Audit
universes include:
• Sales
• Procurement
• Human Resource
• Information system
• Supply chain management
• Finance & accounts
• Subsidy and grant
• Zonal and regional offices
• Stores
• Management committees

Existing internal audit is only confined to the audit of regions, pre-audits of payments, surprise
audit of sample of stores and HO departments as and when required.

II. As per point no. 7 of the USC Audit Policy and Manual "if the government provides any relief
to the Public the audit team of USC Head Office make surprise check of regional stores in
order to make the authentication of stock availability and its provision to the poor segment of
society at the reduced/subsidized rates". However, we have observed that the required
surprise checks are only performed during the month of Ramzan instead of random checks
throughout the year.

III. It has been noted that audit has been conducted after the lapse of significant time which has
increased the period of the audit without increasing the duration of the audit. We believe that
considering the number of stores in each region and the duration of the audit, time allocated
for audit is not sufficient to achieve the desired audit objective. As per the Public Sector Rules
of Corporate Governance. 21(6)(g) "review of the scope and extent of internal audit and
ensuring that the internal audit department has adequate resources and is appropriately
placed within the Public Sector Company". However, the below findings are not in line with
the instructions as laid down in Public Sector Rules.

Days to
Period conduct
Audit period covered Audit duration audit
Region From To From To
Khanewal 18 Dec 2018 13 Sep 2020 1 Year 8 Months 17 Sep 2020 28 Sep 2020 8
Badin 16 Sep 2018 15 Mar 2020 1 Year 5 Months 04 Jun 2020 11 Jun 2020 6
Vehari 01 Jul 2018 15 Dec 2019 1 Year 5 Months 09 Feb 2020 22 Feb 2020 10
Bahawalpur 17 Dec 2018 30 Jun 2020 1 Year 6 Months 16 Aug 2020 28 Aug 2020 10

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 37
 Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

IV. Significant delays were observed in the final submission of audit reports to the respective regions
in case of Badin and Vehari. For instances, audit report of Vehari for the period ended December
2019, which was audited in February 2020, however, the report was shared with the respective
region on 08 May 2020, wherein auditee was requested for provision of responses. A reminder
in this regard was sent to the auditee on 01 September 2020. However, no further
correspondence was found during the course of this assignment in the audit file as of 01 April
2021. We believe that retail industry carries huge inherent risk of cash and liquid assets,
therefore management should consider adopting concurrent auditing techniques by monitoring
off-site daily cash & stock movements of each store and selecting samples for surprise audits
wherever significant unusual trends are identified during off-site analysis.

V. During 156th meeting of the board of directors dated 23rd April 2020, it was suggested to improve
the audit frequency at stores or to outsource the said function. However, no progress has been
noted in this regard as of the date of this audit report.

VI. We noted that as per the current format of the internal audit reports, there is no mechanism in
place to classify the nature and magnitude of the risk behind each observation. In order to
address the seriousness of the observation, categorizing of each observation is prerequisite
based on the risk grading of the organization, classifying each observation under respective
category, which needs to be resolved on the priority basis to separate them from the low-risk
observations.

VII. We noted that there is no follow-up of the recurring nature of prior year audit observations in the
audit reports.

VIII. We noted that there is no risk rating mechanism assigned to each region/store based on the
severity and repetition of the audit observations, and settlement status thereof, which may assist
in determining the frequency and the scope of internal audits in the respective regions. For
example, based on severity of audit observations, internal audit may classify each region in to
high, medium or low risk categories. Frequency of the audit of the high-risk region may be more
than the low-risk regions and the scope of the audit procedures for the high-risk regions may be
more comprehensive (full scope audit) than the audit procedures applied for the low-risk regions
(limited scope audit). This will help the internal audit department to direct its limited audit
resources in best possible direction by adopting the risk-based approach to audit and utilize the
existing internal audit department in more efficient and effective manner.

IX. We noted that although the matter of audit plan transformation to Risk Based Audit/Methodology
(RBIA) was discussed during 24th meeting of the Board Audit Committee held on 2nd March
2020. The then CIA was required to submit updates on RBIA implementation in subsequent BAC
meeting, however no progress has been reported to Board Audit Committee as of the date of
this report.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 38
 Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

X. We noted that the compliance of the audit observations rest with the internal audit department
which is a conflict of interest and often the performance of the internal audit department is judged
based on the settlement status of audit paras. This may restrict auditors’ ability to raise the audit
observations which are less likely to be settled and/or encourage auditors to settle audit
observations without ensuring the sufficiency and appropriateness of the supporting evidence.
Therefore, compliance function responsible for the settlement of audit paras may be independent
from the audit.

XI. We noted that internal audit department has not covered audit of IT System and software. There
is a need of IT system-based audit of application controls of GBMS and other software used by
USC.

XII. While reviewing the Internal audit report of Khanewal Region for the period from 18.12.2018 to
13.09.2020 we noted that subsidy related observations were detected by the Internal Audit as
per Para No. 10 "Debit/Credit PV less/excess posted in ICL of relevant stores as compared to
subsidy claim of Ramzan 2019 & 2020 submitted by region-Recovery of Rs. 35,368". However,
we noted that there is no mechanism of consolidating all paras which has any direct or indirect
impact on the amount of subsidy claim across all regions to determine the monetary impact of
the irregularities on subsidy claims and for the purpose of investigation of root cause analysis of
control deficiencies/malpractices to strengthen the internal controls over financial reporting of
subsidy claims in future as there is a significant timing difference/delay in the monthly audit of
subsidy claims and the conduct of internal audit at regional level of the figures reported in the
monthly subsidy claims.

XIII. As part of the TORs of the audit committee as laid down in Public Sector Rules of Corporate
Governance. 21(6)(o), audit committee is responsible for "overseeing whistle-blowing policy and
protection mechanism". However as per the discussion with vigilance, disciplinary, HR and audit
departments, whistle blowing policy does not exist at Utility Stores Corporation.

XIV. Public Sector Rules 22(4) states that "the internal audit department shall have an audit charter,
duly approved by the audit committee and shall work, as far as practicable, in accordance with
the standards for the professional practice of internal auditors issued by the Institute of Internal
Auditors Inc., (the global professional organization of internal audit profession)". However, we
noted that the internal audit policy/charter is not comprehensive and its approval from audit
committee was not shared with us.

XV. We noted that as per the best practices, external quality review of Internal Audit department is
required once every five years from external firm. However, no such quality review has been
carried out by USC.
Recommendation
Internal audit department needs to determine an overall audit strategy and framework which may
encompass all the areas required to be audited by the internal audit department. Audit strategy and
framework includes, but is not limited to, the audit of activities/processes (across organization), audit

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 39
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

of the HO departments, zonal offices, audit of management committees against its TORs,
Information system audit of the software(s) implemented across the organization, and the periodic
audit of region and stores.

USC needs to develop a comprehensive internal audit manual, outlining the overall scope and
objectives of the internal audit function, and providing guidelines on overall audit strategy, internal
audit framework, procedures, roles & responsibilities of the internal audit department and reporting
requirements.

Risk Rating: High

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 40
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

12.4 VIGILANCE

Complaint Handling

Issues
i. We noted that internal controls embedded by the vigilance system is not robust enough to resolve
the complaints in a timely manner. Complaints are not classified based on severity, and turn-
around time in resolution of each complaint based on the date of complaint lodged and the date
at which complaint is resolved, could not be determined, due to the lack of availability of required
information.

ii. We also noted that there is no mechanism in place to identify recurring complaints of a particular
nature, a particular store, from a particular customer, against a particular employee or item in
specific time period. Therefore, employees involved in multiple complaints of same nature issues
may remain undetected.

iii. We noted that the complaints received through UAN number is only between the timing from
9AM to 5PM. Calls received after the office timings or weekends remain unattended.

iv. We noted that there is only one person assigned to attend customer calls across Pakistan and
the telephone lines are not recorded. Therefore, insufficient resources are deployed in such a
core function.

v. We noted that USC has its own online portal on its website, where a customer can lodge a
complaint. However, we observed that the portal is not being used by Vigilance Department. We
have also noted certain complaints lodged on USC website, which remained unattended.

vi. The existing complaints portal is not integrated with PM Portal which may be required from
government in the near future, therefore; all these requirements may be kept under perspective
as part of the implementation of complaints module within ERP.

Recommendation
We recommend since complaints handling is a critical function, it may either be strengthened or
outsourced so that it is fully equipped with latest technology to resolve customer complaints in a
timely manner.

Risk Rating: High

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 41
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 13:
Give opinion on Status of internal control environment of USC.

Procedures performed:

► We conducted focused discussion, interviews of the process owners, gather information through
questionnaires together with detailed review of documents to gain understanding of business
processes relating to finance and accounting (record to report), procurement and supply chain
(procure to pay), sales (order to cash), grants and subsidy, Information Technology and Internal
Audit (our process documentation is provided in Annex B to this document)
► A standardized risk methodology was developed tailored to overall control environment of USC
and organizational design
► Risk matrix comprising of four components was developed: High, Moderate High, Moderate and
Low. Overall rating was assigned to business processes/ area using the risk matrix.

Refer previous Section 12 for internal controls findings relating to each area and Annex A for detailed
methodology used for risk methodology, assessment and rating.

Findings
The table below provides overview of risk rating assigned at departmental/ functional levels.

No. Core Function Risk Rating Reference

1. Accounting and Financial Management Moderate High 13.1.1

System

2. Procurement and Supply Chain Moderate 13.1.2

3. Internal Audit Function Moderate High 13.1.3

4. Sales Low 13.1.4

5 Grant and Subsidy Moderate 13.1.5

6. IT/Automation High 13.1.6

13.1 Risk Rating Basis

The section covers the basis for assigning risk ratings to each of the individual critical area assessed.

13.1.1 Finance & Accounting Function

Finance and Accounting Manual is outdated as it was developed in 1981 and has not been updated.
Most of the finance department personnel are not qualified accountants therefore they lack requisite
knowledge. GRNs are recorded at regions in Fox-Pro-based system, which is not integrated with the
accounting system deployed at finance department (GBMS), as a result, the GRNs are manually

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 42
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

posted in GBMS. Therefore, the current accounting system is insufficient for the needs of such a
large finance and accounting function. Moreover, senior management seems to be in the dark with
respect to the operations of finance department as there has been no internal or third-party
evaluation of finance function to identify or evaluate skills gap, process mapping and improvements
etc.

However, the finance staff do understand and follow its undocumented SOPs. They have been able
to maintain a moderate level of financial reporting despite the lack of infrastructure. Therefore, based
on the above-mentioned observations the Financial and Accounting Function is considered as a
Moderate High-Risk area.

Sr.
No. Criteria Description Risk
Overall Risk of the Moderately
Component High
1 Is the system in place and Accounting Manual is outdated High
documented accordingly?
2 Is the existing system in line Organization has certain SOPs evolved over the Moderate
with Industry Best Practices? years, but they are not at par with retail industry
practices.
3 Are there any control Numerous deviations, material and / or High
deviations found in the area significant were found in recording of GRN,
during transaction testing/ amortization of grants, and tracking of grants
walk through?

13.1.2 Procurement & Supply Chain

USC strictly adheres to PPRA rules policies, whereever applicable. USC has its own procurement
SOPs, evolved over time while keeping in view industry practices for cases where PPRA rules do
not provide sufficient guidance. Current staff of USC have adequate knowledgeable and skills with
respect to PPRA as well as USC’s SOPs.

USC had a network of 136 warehouses at the start of the period that has now increased to 170 to
cope with larger volumes of sales witnessed in the period under review.

While procurement and supply chain have requisite framework and skilled personnel in place, they
lack procurement management system and warehouse management system. Due to this lack of
automation organization lacks in operational optimization and struggles in establishing desired
controls that expose the organization to risk of financial and operational leakages. Therefore, some
material deviations were observed within the procurement function. Individually, these deviations
were material, significant and should be a cause of concern for the management, however, in the
context of volume and magnitude of procurements undertaken in this period the overall financial
impact of these deviations remains minimal.

Therefore, based on the strengths and weaknesses we have assigned Moderate Risk Rating to the
procurement and supply chain function.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 43
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Sr.
No. Criteria Description Risk
Overall Risk of the Component Moderate
1 Is the system in place and documented GoP Procurement Rules (PPRA) and USC Low
accordingly? internal SOPs
2 Is the existing system in line with Internal SOPs have been developed to Low
Industry Best Practices? cater retail business needs
3 Are there any control deviations found Some significant but not material Moderate
in the area during transaction testing/ deviations were observed. Financial impact
walk through? of deviations was 1% of annual
procurement for the year

We observed that USC is the only retail sector company in Pakistan following PPRA rules for
procurement, which may have an impact on the following:

• Quality
• Rates
• Delay in supply of items
• Lengthy process of advertisement
• Tender rejections and lengthy rebidding process.

Considering the above factors, we recommend amendments with respect to PPRA rules for USC for
timely and effective decision making and smooth operations.

13.1.3 Internal Audit Function

Internal Audit (IA) department is lagging behind in audit coverage of regions. IA does not have audit
stores, Head Office, management committees and IT system. Chief Internal Auditor (CIA) position
is currently vacant, except for few the staff of IA department lacks requisite knowledge and skills.
There is no Audit framework in place. There was an effort to introduce Risk Based Internal Audit
Methodology (RBIA), but processes seem to have halted. Similarly, various directives of Board
Internal Audit Committee remain unfulfilled.

Based on the above mentioned we have assigned Moderate High-Risk Rating to Internal Audit
Function.

Sr.
No. Criteria Description Risk
Overall Risk of the Component Moderate
High
1 Is the system in place and No High
documented accordingly?
2 Is the existing system in line with No High
Industry Best Practices?
3 Are there any control deviations Some Moderate
found in the area during transaction
testing/ walk through?

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 44
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

13.1.4 Sales

Sales is an area USC has shown significant improvement in. USC achieved a significant benchmark
of Rs 100 billion sale in 2019-20 considering it was in severe losses and had low volume of sales in
preceding years. USC’s sale in 2018-19 was as low as Rs 9.58 billion. USC’s staff have decent
industry understanding and knowledge especially in the domain of essential food items.

With USC’s current capacity of 4,800 stores and a nationwide network, it should now push its Gross
Profit margins beyond 9% by introducing higher margin products and SKUs especially in non-food
category.

USC still struggles with the risk of bulk sales of subsidy items, which can easily be resolved with
introduction of controls that can be deployed through automation and ERP.

Based on the above we have assigned Low-Risk Rating to Sales Department.

Sr.
No.
Criteria Description Risk
Overall Risk of the Low
Component
1 Is the system in place and No, but staff are well aware of internal Moderate
documented accordingly? procedures and practices
2 Is the existing system in line Yes Low
with Industry Best Practices?
3 Are there any control deviations Sale and Subsidy figures are inaccurately Moderate
found in the area during reported. This is more of financial reporting
transaction testing/ walk issue than sales.
through? Bulk Sales, although not proven, seems to
take place at times.

13.1.5 Grant & Subsidy

USC has been receiving and disseminating grants and subsidy since its inception. Therefore, its
management and organizational structure is familiar and capable to handle larger volumes of grants
such as the ones granted in the period under review. USC’s entire operational apparatus is quite
used to getting into motion once such grants are approved and allocated, but this level of operational
comfort is primarily in offering subsidy on essential commodities.

However, ECC has directed USC to provide targeted subsidy to identified poor strata of society, in
an effort to ‘subsidize the citizen’ rather than ‘subsidize the commodity’. Despite repeated meetings
and directives from ECC and MoIP to USC to focus on targeted subsidy, the matter remains
unfulfilled. Primary reason is lack of PoS machine at outlets and automation within USC.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 45
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

USC will have to build its infrastructure if it is to continue to be governments essential vessel of
targeted subsidy distribution. Similarly, it needs to incorporate grant spending and tracking module
in its ERP to provide much needed transparency.

Based on the above we have assigned Moderate-Risk Rating to Grant and Subsidy Function at
USC.

Sr. Criteria Description Risk

No.
Overall Risk of the Moderate
Component
1 Is the system in place and ECC decisions provide adequate Low
documented accordingly? parameters of grant utilization
2 Is the existing system in line with No. USC needs Grant Management & Moderate - High
Industry Best Practices? Tracking System
3 Are there any control deviations There were deviations in item wise Moderate
found in the area during spending from the ECC approved
transaction testing/ walk schedule. However, overall subsidy
through? amount/budget remined within limits.

13.1.6 Information Technology

USC’s lack of automation has been its single most significant deficiency that is holding its progress.
Nearly, all essential management functions are struggling to realize their optimal potential due to
lack of automation. USC needs POS machines at each shop/outlet, warehouse/inventory
management system, supported by a comprehensive ERP that integrates its Finance, Budgeting,
Accounting, Procurement, Logistics, Sales, Human Resource, and Asset Management.

Automation is a High-Risk area for USC.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 46
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 14:
Wherever possible, quantify losses / impact incurred due to non -compliance of policies /
negligence/ violation of good practices.

Findings:
With reference to observations stated in the aforementioned sections, the summary of financial impact of the
observations is as follows:

Financial Impact Additional

Observation # Description of observation (Rs.) remarks
1.3 Financial impact of Faran Sugar Mills Backing out. 142,780,000
4.1 Excess subsidy claimed by USC from GoP as a Financial burden
result of revision of standard sale price of Hayat on consumers of
Ghee. 13,021,675 Rs. 20,834,680.
9.1 Net overstatement in subsidy claimed by USC as a N/A
result of difference between:
▪ The GRN data in GBMS system & the
GRN data in subsidy claim statement;
▪ Stock Debit Note & Stock Credit Note;
▪ Opening stock of current month & closing
stock of previous month. 119,786,671
10.2 Overlapping in amortization of grant 832,721,721
Total Financial impact 1,108,310,067

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 47
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

SECTION 15:

Consultant to provide detailed analysis, recommendations and solutions on the areas specified
above.
This is an overarching principle which we have followed in structuring our report to provide detailed analysis
of each objective/ procedure and provided recommendations along with possible alternatives. Relevant details
have been included in each section, therefore have not been reproduced in this section to avoid duplication.

BAKER TILLY MEHMOOD IDREES QAMAR

CHARTERED ACCOUNTANTS

PLACE: ISLAMABAD
DATE:

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 48
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Annexures
Annexure A: Execution Methodology

Our methodology for conducting this assignment is based on the specific requirements of the TORs. The
elements of our methodology are briefly described below:

Focus Meetings and Questionnaire Based Auditing:

We conducted meetings with the personnel involved in the processes of accounting, procurement, sale, grant
& subsidy and information technology to get an overall insight and in-depth understanding of these processes.
The objective of these meetings was to get an overall view and develop a strategy to carry out the requirements
of the TORs. We also conducted meetings and made queries for clarifications and obtained response from the
management about the issues identified.

We developed specific questionnaire on the basis of terms of reference in order to get first-hand information
from different management personnel about the affairs pertaining to procurement, grant, sale, subsidy, and
supply chain. The questionnaire was circulated to relevant personnel for getting their responses, which
enabled us to obtain in-depth understanding of procurement, grant, sale and subsidy.

In Depth Review of Documents:

We reviewed relevant and significant tenders, purchase orders, contracts, notifications, internal & external
audit reports, minutes of board meetings, audit committee meetings, and relevant economic co-ordination
committee meetings, and other related documents in order to:

- Obtain understanding of the affairs of USC.

- Comprehend terms and conditions encapsulated in various documents
- Check compliance of activities and transactions with underlying documents
- Check accuracy and authenticity of different activities and transactions

Analytical Procedures:
We compiled financial data related to procurement, sale, grant & subsidy using various tools and applied
various analytical procedures on the financial information to identify the risky areas and any unusual
relationship between different financial items and ensure completeness of the data.

Application of Benford Law-Based Test:

We performed various digit(s) tests and summation test based on the Benford’s Law. In accordance with the
Benford’s Law the distribution of digits in multi-digit natural numbers is not random; instead, it follows a
predictable pattern. In other words, the Benford’s law gives expected frequencies of the digit(s) in any dataset.
Therefore, any deviation of actual occurred frequencies of digit(s) in a dataset from the expected frequencies
based on the Benford’s law indicates abnormal duplication and resultantly increased risk of fraud or error. It is
important to mention that non-conformity with Benford’s Law does not signal fraud or error with certainty but
warrant further analysis and detail working on a dataset showing non-conformity. The tests which were
performed are as follow:

- First Digit Test

- Second Digit Test
- First-Two Digits test
Baker Tilly Mehmood Idrees Qamar
Chartered Accountants 49
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

- Summation Test

Any unusual trends in data observed through Benford’s Law were further probed during the conduct of
assignment.

Correlation Testing:
Correlation measures how well two sets of data relate with each other. Correlation between different related
and unrelated sets of data also helps us in identifying anomalies and irregularities between data sets. We
worked out correlation using advanced tools, PYTHON, between following items for identifying any unusual
relationship between them;

- Closing stock of the previous month with the opening stock of the subsequent month,
- Goods Receive Note (GRN) with Sales,
- Stock available for Sale (AFS) with Sales
- Store Debit Note vs Store Credit Note
- The relationship of one month with the other month
- The relationship of one region with the other regions

The results of correlation tests enabled us to identify various anomalies in the data, on the basis of which,
observations have been identified and included in this report

Test of Details:
Substantive audit procedures were applied on specific identified issues and the selected sample to identify
any irregularities and gather facts and evidence about committed or alleged fraud. During the performance of
test of detail, we carried in depth review of the supporting documents of each specific and randomly selected
item. The extent of procedures performed varied according to the relevant risk assessment and the nature of
item.

Risk Methodology, Assessment and Rating

To facilitate the process of risk analysis, a standardized risk methodology has been developed keeping in view
the overall environment of USC and its organizational setup. Critical departments have been analyzed on a
standard risk matrix as risk analysis identified and applied is on an organizational basis. The section below
describes in detail, the risk methodology used to assess USC’s overall risk grading.

Risk Methodology

Third party validation was carried out with the objective to evaluate the accountability environment in USC
considering the factors internal and external to the entity.

To achieve these objectives, we have carried out a review of each of the critical areas including finance &
accounting, procurement, sales, grant & subsidy and information technology to identify any system
weaknesses or control deviations at the transaction level. To carry out the assessment we have relied upon
our overall system understanding, findings of transaction testing and walkthrough tests. We have also
considered some internal reports to analyze the overall effectiveness of the internal control system.

Subseuent to the identification of weaknesses in the system and controls, we have assigned a risk rating to
each of the instance to reach the overall level of risk at the entity level. A risk methodology was designed as a

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 50
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

benchmark to standardize the process of determining the risk levels associated to each deviation. Key factors
which were scrutinized to reach a corroborative risk methodology include:

1) Risks Inherent to the Organization: include the probability of loss arising out of circumstances or risk
factors present in the existing structure or environment of an organization.

2) Existence of the System: include the risks arising from the non-existence of a documented system in a
certain component of the organization.

3) Control Deviations: include the risks identified during the transaction and walkthrough testing. These may
indicate a control weakness in the internal control system or a deviation from the system etc.

The following factors were also considered before allocating risk rating to a specific area.

▪ Significance and sensitivity;

▪ Susceptibility of failure to attain organizational goals, noncompliance with laws and regulations, inaccurate
reporting, or illegal or inappropriate use of assets or resources;
▪ Management actions to mitigate risk;
▪ Competence and adequacy of the number of personnel; and
▪ Relevant internal controls;

Each of the above factors has been given a rating based on the significance of the problem and its implications
on the overall control environment. Furthermore, we have developed a risk matrix to determine the final rating
of each section which is as follows:

Level of risk Definition of levels

High High risk was allocated to the areas where documented system and compensating
controls do not exist and our review highlights certain material weaknesses. Or the
documented system is in existence, however, material weaknesses were observed.

Moderate High Moderate High was allocated to the areas where documented system and
compensating controls do not exist however certain significant but not material
weaknesses were observed.
Moderate Moderate risk rating was assigned to the areas where documented system may
exist however certain significant but not material weaknesses were observed.
However, compensating controls generally exist to reduce likelihood of loss.
Low Low risk rating was assigned to the areas where documented system may or may
not be present but controls are in place and applied consistently. During the review
only certain procedural weaknesses were observed.

To reach the final conclusions at entity level, we have consolidated the risk ratings of each critical area and
used our professional judgment.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 51
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Annexure B: Procurement types and processes

Procurement processes of essential items:

Non branded sugar:

• The non-branded sugar is procured vide Open competitive bidding in accordance with PPRA Rules 2004.
• The bids are invited as per rule 36 (a) “Single Stage-One Envelope Procedure” of the said rules, by giving
an advertisement in two widely circulated newspapers (one in English and one in Urdu) as well on the
website of USC.
• The bidding documents are provided to the interested bidders.
• The response time is mentioned clearly in the advertisement and no bid is entertained after deadline as
mentioned in the advertisement.
• The bids are opened within half an hour of the closing date of bids in the presence of tender committee.
• A comparative statement is made by the committee keeping in view the quantity and rate offered by the
bidders.
• The bidder who offers the least rate for the quantity is accepted whereas for the balance quantity the other
bidders are requested to match their rates with the low-cost bidder.
• The successful bidder is given acceptance letter and an agreement is signed by the entity.
• The Purchase Order is issue by the entity to the successful bidder.
• The bidder supplies the offered quantity and after successful completion of order the earnest money is
released.
• In case no bidder offers a rate competitive to the market rate, USC rejects the bids and tender is scrapped.

5.2.1 Branded sugar

• The branded sugar is procured vide Pre-Qualification of vendors in accordance with PPRA Rules 2004.
• A notice for pre-qualification is advertised in the widely circulated newspapers and on website of USC.
a. The pre-qualification documents are evaluated by the tender committee in accordance with the
following factors mentioned in rule 15 of PPRA Rules 2004:
b. relevant experience and past performance;
c. capabilities with respect to personnel, equipment, and plant;
d. financial position;
e. appropriate managerial capability; and
f. any other factor that a procuring agency may deem relevant, not inconsistent with these rules.
• The vendor who fulfills the above criteria is selected for the supply of branded sugar.
• A Proforma is prepared by the tender committee showing all the details of pre-qualification process.
• The rates offered by the pre-qualified vendor are compared with the market rates and the most
advantageous rate is accepted by USC.
• The purchase order is issued to the vendor.
• The earnest money is released to the vendor after completion of purchase order.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 52
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and
operational audits of government grant to Utility Stores Corporation (USC)

Demand Procurement Bidding Tendering Contract award/ Transportation Delivery Payment

Generation Planning Process Process scrap process
in-charge
Store

Prepares Delivered to store

Demand as per demand
Manager

Collects & Validates

Area

Demand based on
stock take/
Inventory Control
Ledger
Manager
Regional

Forwards Purchase
Demand order

Verifies
Market Survey /
Zonal
Head

Demand based
Business
on trends &
Recorder rates
sales targets
Quarters

Goods
Various

Submits Received
Demand Note (GRN)
Manager

Pre-qualified
Sugar

Procurement Awarded to Branded Pre-qualified

transportor vendors
Plan Sugar transportors
(lowest bid) (lowest bid)
Managing
Director

Approval

Yes
Department

Approval for
Finance

Payment /
No
Release of
Earnest Money

Payment release
after adjustment
GBMS

of actual GRN
(as per quantity
and quality)
Committee
Tender

Non-
Is bid price lower
Branded
than market price?
Sugar

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 53
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Rice and Pulses:

• The rice and pulses are procured vide open competitive bidding in accordance with PPRA Rules 2004.
• The bids are invited as per rule 36 (a) “Single Stage-One Envelope Procedure” of the said rules by
giving an advertisement in two widely circulated newspapers (one in English and one in Urdu) as well
on the website of USC.
• The bidding documents are provided to the interested bidders.
• The response time is mentioned clearly in the advertisement and no bid is entertained after the deadline
as mentioned in the advertisement.
• The bids are opened within half an hour of the closing date of bids in the presence of tender committee.
• A comparative statement is made by the committee keeping in view the quantity and rate offered by
the bidders.
• The bidder who offers the least rate for the quantity is accepted whereas for the balance quantity the
other bidders are requested to match their rates with the low-cost bidder.
• The successful bidder is given acceptance letter and an agreement is signed by the entity.
• The Purchase Order is issued by USC to the successful bidder.
• The bidder supplies the offered quantity and after successful completion of order the earnest money is
released.
• In case no bidder offers a rate competitive to the market rate, the entity rejects the bids and tender is
scrapped.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 54
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Demand Procurement Bidding Tendering Contract award/ Delivery Payment

Generation Planning Process Process scrap process
in-charge

Delivered to
Store

Prepares
store as per
Demand
demand

Collects &
Manager

Validates
Area

Demand based
on stock take/
Inventory
Control Ledger
Manager
Regional

Forwards Purchase
Demand order

Verifies
Market Survey /
Zonal
Head

Demand based
Market
on trends & Intelligence Unit
sales targets

Goods
Quarters
Various

Submits Yes
Received
Demand Note (GRN)
Procurement

Pre-qualified
Procurement Rice &
GM

vendors
Plan Pulses (lowest bid)
Managing
Director

Approval
Committee
Tender

Is bid price lower

than market price?
Department

Approval for
Finance

Payment /
No Release of Earnest
Money

Payment release
after adjustment of
GBMS

actual GRN
(as per quantity
and quality)

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 55
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Wheat/Flour:

• The government of Pakistan allocated 400,000 M. Tons wheat to USC during the period.
• For this purpose, the entity pre-qualified flour mills from all over Pakistan to supply flour to its stores.
• A notice for pre-qualification is advertised in the widely circulated newspapers and on website of USC.
• The pre-qualification documents are evaluated by the tender committee in accordance with the
following factors mentioned in rule 15 of PPRA Rules 2004:
a) relevant experience and past performance;
b) capabilities with respect to personnel, equipment, and plant;
c) financial position;
d) appropriate managerial capability; and
e) any other factor that a procuring agency may deem relevant, not inconsistent with these rules.
• The vendor who fulfills the above criteria is selected for the supply of flour.
• The list of pre-qualified mills is shared with regions. The regional office enters into agreements with the
mills operating in their area.
• The pre-qualified flour mills are allocated wheat by the regional offices on the basis of their capability.
• The mills deposit amount against wheat with USC which transfers such amounts to PASSCO for lifting
of wheat.
• The wheat is lifted by the mills on their own in the first allocation of 200,000 tons. The allocation for the
balance quantity is lifted by MBMC.
• The Dispatch Order is signed by a mill/MBMC at the time of lifting of wheat from godowns of PASSCO.
• MBMC ensure that the wheat is as per the standard specifications mentioned by the PASSCO in
accordance with the contract with USC.
• The wheat is grinded by a flour mill and flour are supplied by the mill to the stores of USC.
• The warehouse in charge at each region prepares GRNs of the flour received.
• Payment is made by the regional office to a mill.

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 56
 Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and
operational audits of government grant to Utility Stores Corporation (USC)

Wheat Assigning Receipt of Collection of Payment to Release of Transportation, quantity and Granding & Deliery
Allocation quota deposit receipts PASSCO Delivery Order quality inspection Packing
Government of
Pakistan

Allocation of
wheat to USC

Flour mills
deposits Granding
Flour Mills

Assign quota to pre- Delivery of

amount to of wheat
aqualified flour mills wheat flour to
USC collection into wheat
wharehouses
account flour
Project Manager

Project Manager
Release of
sends receipts to
Delivery
Finance
Order
Department
Department

Payment
Finance

to PASSCO
by USC

Outsourcing of
inspection and
MBMC

transportation of
wheat from PASSCO
to Flour Mills

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 57
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Ghee:

• USC procures subsidized ghee brands from different vendors.

• USC has entered into contracts with the ghee vendors.
• Purchase Order is issued to the vendors for the required quantity.
• The vendor supplies ghee on delivered-at-place basis to USC.
• PPRA Rules are not applicable in case of ghee since ghee is a specific item and it is sold with brand
names.
• Payment is made by head office to the vendors in case of subsidized ghee.

Demand Procurement Bidding Delivery Payment

Generation Planning Process process
in-charge

Delivered to
Store

Prepares
store as per
Demand
demand

Collects & Validates

Manager

Demand based on
Area

stock take/
Inventory Control
Ledger
Manager
Regional

Forwards Purchase
Demand order

Verifies
Zonal
Head

Demand based
on trends &
sales targets

Goods
Quarters
Various

Submits Received Note

Demand (GRN)
Procurement

Procurement of
M&B

Procurement
branded items
Plan
(i.e. Ghee)
Managing
Director

Approval
Department
Finance

Approval for
Payment

Payment release
after adjustment
GBMS

of actual GRN
(as per quantity
and quality)

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 58
Utility Stores Corporation of Pakistan
Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Subsidy and Sales

We have evaluated the mechanism of preparation of the subsidy claims and the sources used in the
calculation of the subsidy amount. A Price Variation (PV) is issued from USC as soon as the government
announces the subsidy against basic commodities, while a stock take is conducted by the area managers
of the respective regions to determine the quantity of stock available at the time of launch of subsidy.
Thereafter, a consolidated report in a prescribed format is received by Head Office on monthly basis from
all the regions, for the purpose of preparing the consolidated subsidy claim at Head Office level based on
the quantity of subsidized items sold.

The quantity of subsidized items sold is computed as the addition of opening stock and new purchases and
deduction of closing stock, and after making necessary adjustments with respect to stock movement from
one region to the other region in the form of Stock Credit Note (SCN) and Stock Debit Note (SDN).

Baker Tilly Mehmood Idrees Qamar

Chartered Accountants 59
 Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Progress Report
Launch of subscidy Stock take Issuance of PV by USC Consolidating stock take Calculation of sales of Calculation of subscidy Audit of subscidy claim
of Stores subsidized item based on sales
Government of

Submittion of
Pakistan

Issuance of letter for the claim to the

the launch of subscidy Ministry
Regional Manager

Stock take of stores is

consolidated at
Closing Stock take regions in a
Opening Stock take
conducted by the predefined format
conducted by the
regional managers regional shared by the Head
managers Office
Concerned procurement

Issuance of Price
department

Variation (PV)
from USC for the
change in
subscidized price

Subscidized item wise Rate of subscidy

Department

Sales are calculated applied against

Finance

based on the opening each item based

stock at stores & on the
Wharehouses, GRN, applicable
SCN, SDN issued subscidy as per
during the period PV

Monthly claim
Audit Firm

audited by the
Chartered
Accountanting
Firm

60
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Annexure C

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Feb-20 Abbottabad Dastak Ghee 100,776 110,776 - (10,000) 30 - (300,000)

May-20 Abbottabad Dastak Ghee 49,701 85,000 - (35,299) 20 - (705,980)
Apr-20 Abbottabad Dil Dil Banaspati 15,653 - 15,653 29 456,224 -
Feb-20 Abbottabad Hayat Banaspati 199,400 266,360 - (66,960) 30 - (2,008,800)
May-20 Abbottabad Maan Banaspati 38,568 67,200 - (28,632) 20 - (583,455)
May-20 Abbottabad Manpasand Ghee 13,906 - 13,906 20 278,120 -
Mar-20 Abbottabad Sugar 64,000 206,808 - (142,808) 16 - (2,255,223)
May-20 Abbottabad Utility Sella Rice (Kainat 1121) 40,825 39,760 - 1,065 12 12,808 -
Apr-20 Abbottabad Utility Sella Rice (Kainat 1121) 4,723 - 4,723 10 47,230 -
Apr-20 Abbottabad Utility Super Basmati Rice 5,026 - 5,026 10 50,260 -
Apr-20 Abbottabad Utility Tota Basmati Rice 46,726 39,880 - 6,846 12 82,152 -
May-20 Abbottabad White Gram 65,115 84,775 (29,697) 10,037 15 151,892 -
Jun-20 Abbottabad White Gram 21,660 - 21,660 15 324,900 -
Jan-20 Attock Dal Masoor - 5,955 - (5,955) - - -
Jan-20 Badin Dal Masoor - 11,906 - (11,906) - - -
Sep-20 Badin Sugar 180,089 235,000 (54,981) 70 21 1,470 -
Jan-20 Bahawalnager Dal Masoor - 5,900 - (5,900) - - -
May-20 Bahawalnager Dal Masoor 11,800 23,630 - (11,830) 42 - (494,948)
May-20 Bahawalnager Dastak Ghee 230,100 260,100 - (30,000) 20 - (600,000)
Mar-20 Bahawalnager Handi Banaspati 24,925 24,997 - (72) 30 - (2,160)

61
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Jan-20 Bahawalnager Malta Banaspati 5,520 - 5,520 20 110,400 -

Apr-20 Bahawalnager Nayab Banaspati 5,500 - 5,500 29 161,266 -
Aug-20 Bahawalnager Sugar 466,218 465,871 - 347 11 3,798 -
Apr-20 Bahawalnager Utility Sella Rice (Kainat 1121) 2,000 - 2,000 10 20,000 -
Apr-20 Bahawalnager Utility Super Basmati Rice 6,000 - 6,000 10 60,000 -
Apr-20 Bahawalnager Utility Tota Basmati Rice 25,760 23,840 - 1,920 12 23,040 -
Apr-20 Bahawalpur Dal Chana - 11,860 - (11,860) 15 - (177,900)
May-20 Bahawalpur Dal Chana 41,490 29,630 - 11,860 15 177,900 -
Feb-20 Bahawalpur Dal Masoor - 5,935 - (5,935) 10 - (59,350)
Mar-20 Bahawalpur Sugar 173,580 283,980 - (110,400) 16 - (1,743,436)
Apr-20 Bahawalpur Sugar 469,889 509,889 - (40,000) 22 - (870,607)
Jul-20 Bahawalpur Sugar 998,825 998,595 - 230 21 4,826 -
Jan-20 Bannu Dal Masoor - 5,930 - (5,930) - - -
May-20 Bannu Dastak Ghee 128,000 128,200 - (200) 20 - (4,000)
Mar-20 Bannu Sugar - 160,000 - (160,000) 16 - (2,526,719)
Apr-20 Bannu Sugar 437,872 327,872 - 110,000 22 2,394,169 -
Sep-20 Bannu Sugar 276,730 276,732 - (2) 21 - (42)
Mar-20 Bannu Utility Sella Rice (Kainat 1121) 11,880 5,945 - 5,935 10 59,350 -
Apr-20 Bannu Utility Sella Rice (Kainat 1121) 5,000 - 5,000 10 50,000 -
Mar-20 Bannu Utility Super Basmati Rice 11,920 - 11,920 10 119,200 -
May-20 Bannu Utility Tota Basmati Rice 2,845 20,000 - (17,155) 13 - (214,786)
Mar-20 Bannu Utility Tota Basmati Rice 20,000 - 20,000 12 240,000 -
Apr-20 Bannu White Gram 23,530 11,675 - 11,855 10 118,550 -

62
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Jan-20 Chakwal Dal Masoor - 5,953 - (5,953) - - -

Jul-20 Chakwal Sugar 670,163 669,954 - 209 21 4,386 -
Jan-20 Chitral Dal Chana - 9,880 - (9,880) - - -
Feb-20 Dadu Barkat Banaspati - 40,000 - (40,000) 30 - (1,200,000)
Mar-20 Dadu Barkat Banaspati 20,000 10,000 - 10,000 27 265,723 -
Jan-20 Dadu Dal Masoor - 5,933 - (5,933) - - -
Mar-20 Dadu Dal Masoor 993 - 993 10 9,930 -
Apr-20 Dadu Handi Banaspati 39,964 29,964 - 10,000 20 200,523 -
May-20 Dadu Malta Banaspati - 62 - (62) 30 - (1,860)
Jan-20 Dadu Sugar 140,012 70,020 - 69,992 7 489,944 -
May-20 Dadu Sugar 329,220 328,965 - 255 22 5,488 -
May-20 DGKhan Dal Chana 34,656 17,272 - 17,384 15 260,760 -
Jan-20 DGKhan Dal Chana 5,920 - 5,920 - - -
Feb-20 DGKhan Dal Masoor - 14,673 - (14,673) 10 - (146,730)
May-20 DGKhan Hafeez Ghee 30,000 - 30,000 20 600,000 -
May-20 DGKhan Handi Banaspati 10,000 - 10,000 20 200,000 -
Apr-20 DGKhan Hayat Banaspati 512,352 512,352 (365,550) 365,550 23 8,262,361 -
May-20 DGKhan Hayat Banaspati 515,302 2,950 - 512,352 20 10,247,040 -
Jun-20 DGKhan Hayat Banaspati 10,000 10,000 (10,000) 10,000 20 200,000 -
Feb-20 DGKhan Maan Banaspati 120,099 64,548 - 55,551 26 1,433,962 -
Mar-20 DGKhan Manpasand Ghee - 28,000 - (28,000) 28 - (788,505)
Jan-20 DGKhan Manpasand Ghee 1,121 - 1,121 20 22,420 -
May-20 DGKhan Manpasand Ghee 84,000 - 84,000 20 1,680,000 -

63
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

May-20 DGKhan Nayab Banaspati 2,000 - 2,000 20 40,000 -

Jan-20 DGKhan Sugar 75,000 70,000 - 5,000 7 35,000 -
Feb-20 DGKhan Sugar 139,854 149,750 - (9,896) 10 - (101,560)
Mar-20 DGKhan Sugar 149,940 236,940 - (87,000) 16 - (1,373,903)
Apr-20 DGKhan Sugar 239,707 407,707 - (168,000) 22 - (3,656,548)
May-20 DGKhan Sugar 577,713 780,940 - (203,227) 22 - (4,373,939)
Jun-20 DGKhan Sugar 61 58,061 - (58,000) 16 - (928,258)
Apr-20 DGKhan Utility Sella Rice (Kainat 1121) 29,840 17,960 - 11,880 10 118,800 -
May-20 DGKhan Utility Sella Rice (Kainat 1121) 29,840 11,880 - 17,960 12 216,000 -
Jan-20 DGKhan Utility Sella Rice (Kainat 1121) 30 - 30 10 300 -
Apr-20 DGKhan Utility Super Basmati Rice 35,560 23,680 - 11,880 10 118,800 -
May-20 DGKhan Utility Super Basmati Rice 59,360 35,680 (11,880) 35,560 11 402,702 -
Jul-20 DGKhan Utility Super Basmati Rice 21,000 21,000 (9,000) 9,000 15 135,000 -
May-20 DGKhan Utility Tota Basmati Rice 47,840 12,000 - 35,840 13 448,727 -
Jul-20 DGKhan Utility Tota Basmati Rice 1,200 1,200 (1,200) 1,200 15 18,000 -
Jan-20 DIKhan Dal Chana - 5,888 - (5,888) - - -
Feb-20 DIKhan Dal Masoor - 5,908 - (5,908) 10 - (59,080)
Feb-20 DIKhan Hayat Banaspati 88,700 57,400 - 31,300 30 939,000 -
Mar-20 DIKhan Manpasand Ghee 2,800 28,000 - (25,200) 28 - (709,654)
Jan-20 Dir Dal Chana - 11,840 - (11,840) - - -
Apr-20 Dir Dal Chana 11,790 - 11,790 15 176,850 -
Jan-20 Dir Dal Masoor - 5,920 - (5,920) - - -
Apr-20 Dir Maan Banaspati 36,840 3,240 - 33,600 30 1,008,000 -

64
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Apr-20 Dir Sugar 203,822 239,796 - (35,974) 22 - (782,980)

May-20 Dir Sugar 731,005 658,008 - 72,997 22 1,571,073 -
Aug-20 Dir Sugar 516,206 515,912 - 294 11 3,218 -
Feb-20 Dir Utility Sella Rice (Kainat 1121) 4,040 2,840 - 1,200 10 12,000 -
Apr-20 Faisalabad Atif Premium Ghee 28,000 28,000 (28,000) 28,000 20 560,000 -
Jan-20 Faisalabad Dal Chana 11,872 17,782 - (5,910) - - -
Feb-20 Faisalabad Dal Masoor 13 11,882 - (11,869) 10 - (118,690)
Apr-20 Faisalabad Dastak Ghee 19,092 19,092 (19,092) 19,092 30 570,649 -
Mar-20 Faisalabad Maan Banaspati 33,000 65,400 - (32,400) 30 - (972,000)
Mar-20 Faisalabad Nayab Banaspati - 6,000 - (6,000) 30 - (180,000)
May-20 Faisalabad Nayab Banaspati - 10,000 - (10,000) 20 - (200,000)
Apr-20 Gawadar Hayat Banaspati 35,000 25,000 - 10,000 23 226,025 -
Apr-20 Gawadar Sugar 162,500 160,000 - 2,500 22 54,413 -
Jul-20 Gawadar Sugar 105,050 105,005 - 45 21 944 -
Apr-20 Gawadar Utility Tota Basmati Rice 18,000 12,000 - 6,000 12 72,000 -
May-20 Gawadar Utility Tota Basmati Rice - 6,000 - (6,000) 13 - (75,122)
Feb-20 Ghotki Dal Chana 11,950 5,960 - 5,990 15 89,850 -
Mar-20 Ghotki Malta Banaspati - 24 - (24) 50 - (1,200)
Jan-20 Ghotki Sugar - 40,022 - (40,022) 7 - (280,154)
Feb-20 Ghotki Sugar 89,892 79,892 - 10,000 10 102,627 -
Mar-20 Ghotki Sugar 190,010 145,000 - 45,010 16 710,798 -
Feb-20 Gilgit Dil Dil Banaspati - 10,000 (5,000) (5,000) 30 - (150,000)
Jan-20 Gilgit Maan Banaspati 3,352 - 3,352 20 67,040 -

65
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Jan-20 Gilgit Sugar 156,955 96,947 - 60,008 7 420,056 -

Apr-20 Gilgit Sugar 125,000 200,000 - (75,000) 22 - (1,632,388)
Jul-20 Gilgit Sugar 127,812 127,842 - (30) 21 - (630)
Jan-20 Gilgit Utility Sella Rice (Kainat 1121) 47,790 23,900 - 23,890 10 238,900 -
Apr-20 Gilgit Utility Sella Rice (Kainat 1121) 33,500 - 33,500 10 335,000 -
Apr-20 Gilgit Utility Super Basmati Rice 36,724 41,880 - (5,156) 10 - (51,560)
May-20 Gilgit Utility Super Basmati Rice 124,650 119,650 - 5,000 11 56,623 -
Apr-20 Gilgit Utility Tota Basmati Rice 20,500 - 20,500 12 246,000 -
Jan-20 Gilgit White Gram 20,773 - 20,773 10 207,730 -
Jan-20 Gujranwala Dal Masoor - 5,953 - (5,953) - - -
Jan-20 Gujranwala Dastak Ghee - 43,464 - (43,464) 30 - (1,303,920)
Aug-20 Gujranwala Sugar 195,990 195,761 - 229 11 2,507 -
Jan-20 Gujrat Dal Masoor - 5,943 - (5,943) - - -
Feb-20 Gujrat Dal Masoor - 9,930 - (9,930) 10 - (99,300)
Jun-20 Gujrat Sugar - 220,000 - (220,000) 16 - (3,520,977)
Apr-20 Gujrat Utility Super Basmati Rice 12,000 11,960 - 40 10 400 -
Jun-20 Haripur Dal Masoor 16,003 8,803 - 7,200 45 324,000 -
Feb-20 Haripur Hayat Banaspati 166,350 166,395 - (45) 30 - (1,350)
Jan-20 Haripur Maan Banaspati - 65,160 - (65,160) 20 - (1,303,200)
Jun-20 Haripur Manpasand Ghee 361 - 361 20 7,220 -
Apr-20 Haripur Sugar 1,095,502 395,502 - 700,000 22 15,235,618 -
Jun-20 Haripur Sugar 164,000 260,000 (68,000) (28,000) 16 - (448,124)
Sep-20 Haripur Sugar - 68,000 - (68,000) 21 - (1,428,357)

66
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Jan-20 Haripur Utility Sella Rice (Kainat 1121) 17,918 12,000 - 5,918 10 59,180 -
May-20 Haripur Utility Sella Rice (Kainat 1121) 53,760 41,760 - 12,000 12 144,321 -
Jan-20 Haripur Utility Super Basmati Rice 5,000 26,000 - (21,000) 10 - (210,000)
Jan-20 Haripur Utility Tota Basmati Rice 47,920 35,920 - 12,000 12 144,000 -
Apr-20 Haripur White Gram 17,779 17,789 - (10) 10 - (100)
Jan-20 Hyderabad Dal Masoor - 11,940 - (11,940) - - -
May-20 Hyderabad Dastak Ghee 31,800 21,000 - 10,800 20 216,000 -
Feb-20 Hyderabad Dil Dil Banaspati 17,500 37,500 - (20,000) 30 - (600,000)
May-20 Hyderabad Handi Banaspati 10,000 10,000 (5,000) 5,000 20 100,000 -
May-20 Hyderabad Maan Banaspati - 19,200 (8,400) (10,800) 20 - (220,079)
Jan-20 Islamabad Dal Masoor - 11,801 - (11,801) - - -
Feb-20 Islamabad Dal Masoor 5,938 23,672 - (17,734) 10 - (177,340)
May-20 Jhang Barkat Banaspati - 30,000 - (30,000) 20 - (600,000)
Jan-20 Jhang Dal Chana 5,905 11,880 - (5,975) - - -
Feb-20 Jhang Dal Chana 29,610 17,730 - 11,880 15 178,200 -
May-20 Jhang Dal Chana 23,506 29,406 - (5,900) 15 - (88,500)
Feb-20 Jhang Dal Masoor - 11,830 - (11,830) 10 - (118,300)
May-20 Jhang Handi Banaspati - 10,000 - (10,000) 20 - (200,000)
Mar-20 Jhang Hayat Banaspati 198,905 167,055 - 31,850 30 955,500 -
May-20 Jhang Hayat Banaspati 30,000 - 30,000 20 600,000 -
Jan-20 Jhang Sugar 200,031 135,047 - 64,984 7 454,888 -
Mar-20 Jhang Sugar 100,965 140,965 - (40,000) 16 - (631,680)
Aug-20 Jhang Sugar 264,939 264,593 - 346 11 3,787 -

67
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Jul-20 Jhang Utility Sella Rice (Kainat 1121) 5,980 5,960 - 20 15 300 -
Apr-20 Jhang Utility Tota Basmati Rice 9,920 11,920 - (2,000) 12 - (24,000)
May-20 Jhang Utility Tota Basmati Rice 29,840 23,860 (5,980) 11,960 13 149,743 -
Jan-20 Jhelum Dal Masoor - 5,934 - (5,934) - - -
Jan-20 Jhelum Dil Dil Banaspati - 12,000 - (12,000) - - -
Mar-20 Jhelum Nayab Banaspati - 8,000 - (8,000) 30 - (240,000)
Jul-20 Jhelum Sugar 1,015,015 1,014,735 - 280 21 5,876 -
Mar-20 KarachiN Barkat Banaspati 50,000 50,000 (10,000) 10,000 27 265,723 -
Jan-20 KarachiN Dal Masoor - 11,896 - (11,896) - - -
Sep-20 KarachiN Sugar 452,687 421,536 (28,783) 59,934 21 1,258,929 -
May-20 KarachiN Utility Tota Basmati Rice 92,000 108,000 (24,000) 8,000 13 100,162 -
May-20 KarachiS Andaz - 10,000 - (10,000) 20 - (200,000)
May-20 KarachiS Atif Premium Ghee 20,000 - 20,000 20 400,000 -
Mar-20 KarachiS Barkat Banaspati - 50,000 - (50,000) 27 - (1,328,613)
Jan-20 KarachiS Dal Chana 11,866 19,800 - (7,934) - - -
Jan-20 KarachiS Dal Masoor - 11,910 - (11,910) - - -
Feb-20 KarachiS Dal Masoor - 11,866 - (11,866) 10 - (118,660)
Mar-20 KarachiS Dastak Ghee - 4,800 - (4,800) 30 - (144,000)
Jan-20 KarachiS Malta Banaspati 31,620 20,820 - 10,800 20 216,000 -
Mar-20 KarachiS Malta Banaspati - 19,992 - (19,992) 50 - (999,600)
Sep-20 KarachiS Malta Banaspati 20,052 25,200 (12,360) 7,212 20 144,240 -
Jun-20 KarachiS Nayab Banaspati 19,915 19,985 - (70) 20 - (1,400)
Mar-20 KarachiS Sugar 531,733 411,733 - 120,000 16 1,895,039 -

68
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

May-20 KarachiS Sugar 764,473 1,234,473 - (470,000) 22 - (10,115,543)

Sep-20 KarachiS Sugar 470,709 470,614 - 95 21 1,995 -
Apr-20 KarachiS Utility Super Basmati Rice 54,080 54,000 - 80 10 800 -
May-20 KarachiS White Gram 43,787 38,587 - 5,200 15 78,693 -
Jan-20 Khanewal Dal Chana 11,694 17,617 - (5,923) - - -
Mar-20 Khanewal Dal Masoor 2,820 5,820 - (3,000) 10 - (30,000)
Feb-20 Khanewal Hafeez Ghee 20,000 30,000 - (10,000) 30 - (300,000)
Jan-20 Khanewal Hayat Banaspati 62,000 35,000 - 27,000 12 324,761 -
May-20 Khanewal Platinum Ghee 80,000 70,000 - 10,000 20 200,000 -
Jan-20 Khanewal Sugar 96,000 48,000 - 48,000 7 336,000 -
Jul-20 Khanewal Sugar 999,617 999,277 - 340 21 7,135 -
Jan-20 Khushab Dal Chana - 5,870 - (5,870) - - -
Jan-20 Khushab Dal Masoor - 5,950 - (5,950) - - -
Feb-20 Khushab Dal Masoor 5,925 17,610 - (11,685) 10 - (116,850)
Jul-20 Khushab Sugar 834,880 834,679 - 201 21 4,218 -
Mar-20 Khuzdar Hayat Banaspati 30,000 10,000 - 20,000 30 600,000 -
Apr-20 Khuzdar Hayat Banaspati 20,000 40,000 - (20,000) 23 - (452,051)
May-20 Khuzdar Sugar 168,841 208,757 - (39,916) 22 - (859,089)
Jun-20 Khuzdar Sugar 64,170 64,000 - 170 16 2,721 -
Sep-20 Khuzdar Sugar 100,055 99,790 - 265 21 5,566 -
Sep-20 Khuzdar Utility Super Basmati Rice 8,475 11,800 - (3,325) 15 - (49,875)
Jan-20 Khuzdar Utility Super Basmati Rice 3,000 - 3,000 10 30,000 -
Feb-20 Khuzdar Utility Tota Basmati Rice 120,000 24,000 - 96,000 12 1,152,000 -

69
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Apr-20 Khuzdar Utility Tota Basmati Rice 22,400 11,840 - 10,560 12 126,720 -
May-20 Khuzdar Utility Tota Basmati Rice - 11,920 - (11,920) 13 - (149,242)
Sep-20 Khuzdar Utility Tota Basmati Rice 15,800 19,800 - (4,000) 12 - (48,000)
May-20 Khuzdar White Gram 3,930 3,900 - 30 15 454 -
Jan-20 Kohat Dal Masoor - 5,953 - (5,953) - - -
Jan-20 Kohat Hayat Banaspati 33,500 62,450 - (28,950) 12 - (348,216)
Feb-20 Kohat Hayat Banaspati 62,500 33,550 - 28,950 30 868,500 -
May-20 Kohat Sugar 634,995 634,996 - (1) 22 - (22)
Sep-20 KSUllah Dal Chana 1,000 - 1,000 15 15,000 -
Jun-20 KSUllah Dal Masoor - 2,979 - (2,979) 45 - (134,055)
May-20 KSUllah Dal Masoor 2,979 - 2,979 42 124,636 -
Feb-20 KSUllah Dastak Ghee 19,696 - 19,696 30 590,880 -
Jan-20 KSUllah Hayat Banaspati - 20,000 - (20,000) 12 - (240,564)
Mar-20 KSUllah Hayat Banaspati 30,000 50,000 - (20,000) 30 - (600,000)
May-20 KSUllah Hayat Banaspati 50,000 - 50,000 20 1,000,000 -
Feb-20 KSUllah Nayab Banaspati 14,000 - 14,000 30 420,000 -
May-20 KSUllah Sugar 377,467 428,656 - (51,189) 22 - (1,101,712)
Jun-20 KSUllah Sugar 19,200 96,000 (32,000) (44,800) 16 - (716,999)
May-20 KSUllah Utility Sella Rice (Kainat 1121) 14,000 12,000 - 2,000 12 24,053 -
Mar-20 KSUllah Utility Sella Rice (Kainat 1121) 1,500 - 1,500 10 15,000 -
May-20 KSUllah Utility Super Basmati Rice 15,000 12,000 - 3,000 11 33,974 -
Apr-20 KSUllah Utility Super Basmati Rice 8,200 - 8,200 10 82,000 -
Jun-20 KSUllah Utility Super Basmati Rice 23,370 - 23,370 15 350,550 -

70
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

May-20 KSUllah Utility Tota Basmati Rice 24,000 12,000 - 12,000 13 150,243 -
Feb-20 KSUllah Utility Tota Basmati Rice 2,000 - 2,000 12 24,000 -
Mar-20 KSUllah Utility Tota Basmati Rice 2,000 - 2,000 12 24,000 -
Jan-20 LahoreN Dal Masoor - 5,918 - (5,918) - - -
Feb-20 LahoreN Dastak Ghee 239,464 315,964 - (76,500) 30 - (2,295,000)
Jan-20 LahoreN Dil Dil Banaspati - 67,200 - (67,200) - - -
Mar-20 LahoreN Handi Banaspati 76,800 70,800 - 6,000 30 180,000 -
May-20 LahoreN Platinum Ghee 30,000 30,000 (30,000) 30,000 20 600,000 -
May-20 LahoreN Utility Super Basmati Rice 112,140 124,340 (23,760) 11,560 11 130,912 -
Mar-20 LahoreS Atif Premium Ghee 27,000 27,000 (27,000) 27,000 20 540,000 -
May-20 LahoreS Atif Premium Ghee 33,000 33,000 (33,000) 33,000 20 660,000 -
Jan-20 LahoreS Dal Masoor - 11,841 - (11,841) - - -
Jan-20 LahoreS Dil Dil Banaspati - 67,200 - (67,200) - - -
Mar-20 LahoreS Dil Dil Banaspati 71,230 71,230 (10,000) 10,000 30 300,000 -
May-20 LahoreS Jumeriah Banaspati 10,000 10,000 (10,000) 10,000 20 200,000 -
Mar-20 LahoreS Platinum Ghee 20,000 20,000 (20,000) 20,000 20 400,000 -
Apr-20 LahoreS Platinum Ghee 20,000 20,000 (20,000) 20,000 20 400,000 -
Jan-20 LahoreS Sugar 521,105 461,067 - 60,038 7 420,266 -
Aug-20 LahoreS Sugar 477,946 477,864 - 82 11 898 -
Jan-20 LahoreS Utility Super Basmati Rice 36,000 28,000 - 8,000 10 80,000 -
Jan-20 Larkana Dal Masoor - 5,948 - (5,948) - - -
Jan-20 Larkana Sugar 43,000 42,966 - 34 7 238 -
Aug-20 Larkana Sugar 380,253 380,000 - 253 11 2,769 -

71
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Apr-20 Layyah Barkat Banaspati 10,000 - 10,000 20 200,000 -

Jan-20 Layyah Dal Masoor - 5,947 - (5,947) - - -
May-20 Layyah Dastak Ghee 120,000 189,600 - (69,600) 20 - (1,392,000)
Mar-20 Layyah Sugar 164,010 164,000 - 10 16 158 -
Jul-20 Layyah Sugar 745,146 744,836 - 310 21 6,505 -
May-20 Layyah Utility Sella Rice (Kainat 1121) 24,000 35,960 - (11,960) 12 - (143,840)
Jul-20 Layyah White Gram 5,885 5,875 - 10 15 150 -
Feb-20 Loralai Dastak Ghee - 34,992 - (34,992) 30 - (1,049,760)
Mar-20 Loralai Handi Banaspati 1,932 - 1,932 30 57,960 -
Jun-20 Loralai Hayat Banaspati 20,000 - 20,000 20 400,000 -
Mar-20 Loralai Nayab Banaspati 10,000 - 10,000 30 300,000 -
May-20 Loralai Sugar 367,052 367,030 - 22 22 473 -
Jun-20 Loralai Sugar 64,000 65,000 - (1,000) 16 - (16,004)
Sep-20 Loralai Sugar 115,162 114,956 - 206 21 4,327 -
Apr-20 Loralai Utility Super Basmati Rice 3,000 - 3,000 10 30,000 -
Jan-20 Mansehra Dal Chana - 11,883 - (11,883) - - -
Feb-20 Mansehra Dal Chana 51,316 41,426 - 9,890 15 148,350 -
Jan-20 Mansehra Dal Masoor - 13,874 - (13,874) - - -
Feb-20 Mansehra Dal Masoor - 11,876 - (11,876) 10 - (118,760)
May-20 Mansehra Dastak Ghee 83,500 125,720 - (42,220) 20 - (844,400)
Jun-20 Mansehra Dastak Ghee 42,220 - 42,220 20 844,400 -
Jan-20 Mansehra Sugar 602,776 602,776 (65,931) 65,931 7 461,517 -
Jun-20 Mansehra Sugar 560,600 560,600 (31,600) 31,600 16 505,740 -

72
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Jan-20 Mansehra Utility Super Basmati Rice 43,940 43,940 (8,000) 8,000 10 80,000 -
Apr-20 Mansehra Utility Super Basmati Rice 25,840 25,840 (13,920) 13,920 10 139,200 -
May-20 Mansehra Utility Super Basmati Rice 157,520 157,520 (31,880) 31,880 11 361,028 -
Jan-20 Mansehra White Gram 37,617 61,367 - (23,750) 10 - (237,500)
May-20 Mardan Dastak Ghee 159,977 159,979 - (2) 20 - (40)
Mar-20 Mardan Sugar 107,842 237,842 - (130,000) 16 - (2,052,959)
Jul-20 Mardan Sugar 419,841 419,806 - 35 21 734 -
Aug-20 Mardan Sugar 409,155 408,791 - 364 11 3,984 -
Feb-20 MBDin Dal Chana 29,074 29,026 - 48 15 720 -
Feb-20 MBDin Dal Masoor - 16,681 - (16,681) 10 - (166,810)
Feb-20 MBDin Dil Dil Banaspati - 33,750 - (33,750) 30 - (1,012,500)
Feb-20 MBDin Hayat Banaspati 92,875 44,000 - 48,875 30 1,466,250 -
Mar-20 MBDin Hayat Banaspati 173,025 149,975 - 23,050 30 691,500 -
Feb-20 MBDin Maan Banaspati 98,116 129,432 - (31,316) 26 - (808,373)
Feb-20 MBDin Manpasand Ghee 28,424 28,000 - 424 29 12,085 -
Feb-20 MBDin Sugar 50,625 49,975 - 650 10 6,671 -
Mar-20 MBDin Sugar 242,172 241,767 - 405 16 6,396 -
Feb-20 MBDin Utility Sella Rice (Kainat 1121) 6,750 3,000 - 3,750 10 37,500 -
Feb-20 MBDin White Gram 5,970 5,890 - 80 10 800 -
Mar-20 MBDin White Gram 8,991 - 8,991 10 89,910 -
May-20 Mianwali Dal Chana 59,035 59,035 (11,816) 11,816 15 177,240 -
Feb-20 Mianwali Dal Masoor 9,820 14,735 - (4,915) 10 - (49,150)
Feb-20 Mianwali Hayat Banaspati 101,850 101,850 (150) 150 30 4,500 -

73
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Apr-20 Mianwali Utility Tota Basmati Rice 24,090 23,840 - 250 12 3,000 -
Jun-20 MPKhas Barkat Banaspati - 10,000 - (10,000) 20 - (200,000)
Jan-20 MPKhas Dal Masoor - 11,906 - (11,906) - - -
May-20 MPKhas Dastak Ghee 40,000 40,000 (20,000) 20,000 20 400,000 -
Feb-20 MPKhas Hayat Banaspati 18,000 18,000 (18,000) 18,000 30 540,000 -
Jun-20 MPKhas Maan Banaspati - 18,400 - (18,400) 20 - (368,000)
Jan-20 MPKhas Malta Banaspati 7,020 14,616 - (7,596) 20 - (151,920)
Jul-20 MPKhas Malta Banaspati - 11,004 - (11,004) 20 - (220,080)
Jun-20 MPKhas Sugar - 168,000 - (168,000) 16 - (2,688,746)
Sep-20 MPKhas Sugar 130,006 129,994 - 12 21 252 -
Feb-20 MPKhas Sugar 30,000 - 30,000 10 307,882 -
Feb-20 MPKhas Utility Tota Basmati Rice 12,000 6,000 - 6,000 12 72,000 -
Apr-20 Multan Dal Chana 33,500 33,500 (4,914) 4,914 15 73,710 -
Jan-20 Multan Dal Masoor - 3,933 - (3,933) - - -
Apr-20 Multan Dal Masoor 35,500 - 35,500 10 355,000 -
Mar-20 Multan Sugar 456,040 456,000 - 40 16 632 -
May-20 Multan Sugar 1,694,760 1,694,660 - 100 22 2,152 -
Aug-20 Multan Sugar 391,741 391,640 - 101 11 1,106 -
Jan-20 Muzaffarabad Dal Chana - 11,840 - (11,840) - - -
Jan-20 Muzaffarabad Dal Masoor - 5,910 - (5,910) - - -
Feb-20 Muzaffarabad Dal Masoor - 8,874 - (8,874) 10 - (88,740)
May-20 Muzaffarabad Dal Masoor 28,740 22,835 (6,000) 11,905 42 498,085 -
Mar-20 Muzaffarabad Dal Masoor 8,814 - 8,814 10 88,140 -

74
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Jul-20 Muzaffarabad Dastak Ghee 30,000 30,000 (15,000) 15,000 20 300,000 -

Jan-20 Muzaffarabad Sugar 217,679 152,675 - 65,004 7 455,028 -
May-20 Muzaffarabad Sugar 2,298,886 746,886 (64,009) 1,616,009 22 34,780,445 -
Jan-20 Muzaffarabad Utility Sella Rice (Kainat 1121) 11,960 - 11,960 10 119,600 -
Jan-20 Nawabshah Dal Chana - 5,940 - (5,940) - - -
Jan-20 Nawabshah Dal Masoor - 11,940 - (11,940) - - -
May-20 Nawabshah Maan Banaspati - 3,600 - (3,600) 20 - (73,360)
Jan-20 Nawabshah Sugar 99,900 70,031 - 29,869 7 209,083 -
May-20 Nawabshah Sugar 1,299,324 1,349,329 - (50,005) 22 - (1,076,229)
Jun-20 Nawabshah Sugar 90,051 130,051 - (40,000) 16 - (640,178)
Jul-20 Nawabshah Sugar 179,973 179,884 - 89 21 1,868 -
Jan-20 Nawabshah Utility Sella Rice (Kainat 1121) - 6,000 - (6,000) 10 - (60,000)
Jan-20 Nawabshah Utility Super Basmati Rice 18,500 - 18,500 10 185,000 -
Jan-20 Nawabshah Utility Tota Basmati Rice 74,000 12,000 - 62,000 12 744,000 -
May-20 Nawabshah White Gram 11,614 17,549 - (5,935) 15 - (89,816)
Jan-20 Nawabshah White Gram 5,938 - 5,938 10 59,380 -
Feb-20 Nushki Dal Chana - 2,910 - (2,910) 15 - (43,650)
Mar-20 Nushki Dal Chana 2,910 - 2,910 15 43,650 -
Feb-20 Nushki Handi Banaspati - 8,064 - (8,064) 30 - (241,920)
Mar-20 Nushki Handi Banaspati 8,064 - 8,064 30 241,920 -
Feb-20 Nushki Hayat Banaspati - 10,000 - (10,000) 30 - (300,000)
Mar-20 Nushki Hayat Banaspati 40,000 30,000 - 10,000 30 300,000 -
Jun-20 Nushki Sugar 47,000 64,000 - (17,000) 16 - (272,075)

75
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Feb-20 Nushki Utility Sella Rice (Kainat 1121) - 10,000 - (10,000) 10 - (100,000)
Mar-20 Nushki Utility Sella Rice (Kainat 1121) 10,000 - 10,000 10 100,000 -
Feb-20 Nushki Utility Tota Basmati Rice - 10,000 - (10,000) 12 - (120,000)
Mar-20 Nushki Utility Tota Basmati Rice 10,000 - 10,000 12 120,000 -
May-20 Okara Atif Premium Ghee 20,000 20,000 (20,000) 20,000 20 400,000 -
Jan-20 Okara Dal Masoor - 5,963 - (5,963) - - -
Jul-20 Okara Dastak Ghee 89,535 89,535 (30,000) 30,000 20 600,000 -
Mar-20 Okara Platinum Ghee 20,000 20,000 (20,000) 20,000 20 400,000 -
Sep-20 Okara Sugar 251,724 251,734 - (10) 21 - (210)
May-20 Okara Utility Tota Basmati Rice 36,000 36,000 (6,000) 6,000 13 75,122 -
Jan-20 PeshawarN Dal Masoor - 11,850 - (11,850) - - -
May-20 PeshawarN Dastak Ghee 95,500 130,300 - (34,800) 20 - (696,000)
Apr-20 PeshawarN Dastak Ghee 34,800 - 34,800 30 1,040,153 -
Feb-20 PeshawarN Handi Banaspati - 5,004 - (5,004) 30 - (150,120)
Mar-20 PeshawarN Handi Banaspati 5,004 - 5,004 30 150,120 -
Mar-20 PeshawarN Hayat Banaspati - 64,000 - (64,000) 30 - (1,920,000)
Jan-20 PeshawarN Maan Banaspati 32,400 65,160 - (32,760) 20 - (655,200)
Apr-20 PeshawarN Nayab Banaspati - 19,955 - (19,955) 29 - (585,101)
Jun-20 PeshawarN Sugar - 224,000 - (224,000) 16 - (3,584,995)
Feb-20 PeshawarN Utility Super Basmati Rice 14,880 9,880 - 5,000 10 50,000 -
Jul-20 PeshawarN Utility Super Basmati Rice 6,120 6,000 - 120 15 1,800 -
Feb-20 PeshawarS Dastak Ghee 346,900 359,400 - (12,500) 30 - (375,000)
Jan-20 PeshawarS Dil Dil Banaspati - 5,000 - (5,000) - - -

76
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Feb-20 PeshawarS Nayab Banaspati - 10,000 - (10,000) 30 - (300,000)

Feb-20 Pishin Sugar 68,749 38,740 - 30,009 10 307,974 -
Jul-20 Pishin Sugar 195,147 195,000 - 147 21 3,085 -
Jan-20 Pishin White Gram 11,840 - 11,840 10 118,400 -
Apr-20 Quetta Dal Chana 9,860 - 9,860 15 147,900 -
Feb-20 Quetta Dal Masoor - 7,874 - (7,874) 10 - (78,740)
Apr-20 Quetta Dastak Ghee 20,585 - 20,585 30 615,274 -
Jan-20 Quetta Hayat Banaspati 30,000 20,000 - 10,000 12 120,282 -
Feb-20 Quetta Hayat Banaspati - 10,000 - (10,000) 30 - (300,000)
Jun-20 Quetta Hayat Banaspati 47,470 - 47,470 20 949,400 -
Apr-20 Quetta Nayab Banaspati 25,000 - 25,000 29 733,025 -
Apr-20 Quetta Sugar 596,169 126,000 - 470,169 22 10,233,308 -
Apr-20 Quetta Utility Sella Rice (Kainat 1121) 5,000 12,000 - (7,000) 10 - (70,000)
Apr-20 Quetta Utility Tota Basmati Rice 35,000 42,000 - (7,000) 12 - (84,000)
Jun-20 Quetta White Gram 19,368 19,004 - 364 15 5,460 -
Jan-20 RawalpindiN Dal Chana 11,216 23,117 - (11,901) - - -
Jan-20 RawalpindiN Dal Masoor - 5,886 - (5,886) - - -
Apr-20 RawalpindiN Hayat Banaspati 99,705 35,080 - 64,625 23 1,460,690 -
May-20 RawalpindiN Hayat Banaspati - 64,625 - (64,625) 20 - (1,292,500)
Jan-20 RawalpindiN White Gram 44,161 32,617 - 11,544 10 115,440 -
Jan-20 RawalpindiS Dal Masoor - 9,897 - (9,897) - - -
Jan-20 RYKhan Dal Chana - 5,868 - (5,868) - - -
Jan-20 RYKhan Dal Masoor - 6,000 - (6,000) - - -

77
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Mar-20 RYKhan Sugar 459,758 419,738 - 40,020 16 631,996 -

Jul-20 RYKhan Sugar 438,030 437,860 - 170 21 3,567 -
Jan-20 RYKhan White Gram 11,891 - 11,891 10 118,910 -
Apr-20 Sahiwal Barkat Banaspati 60,000 60,000 (30,000) 30,000 20 600,000 -
Jan-20 Sahiwal Dal Masoor - 5,943 - (5,943) - - -
Jan-20 Sahiwal Dil Dil Banaspati - 67,200 - (67,200) - - -
Apr-20 Sahiwal Nayab Banaspati - 10,000 - (10,000) 29 - (293,210)
Mar-20 Sahiwal Sugar - 128,000 - (128,000) 16 - (2,021,375)
Apr-20 Sahiwal Sugar 269,755 333,755 - (64,000) 22 - (1,392,971)
Jan-20 Sahiwal Utility Sella Rice (Kainat 1121) 5,000 - 5,000 10 50,000 -
Jan-20 Sahiwal Utility Tota Basmati Rice 84,000 48,000 - 36,000 12 432,000 -
Mar-20 Sahiwal Utility Tota Basmati Rice 35,750 35,714 - 36 12 432 -
Apr-20 Sahiwal White Gram 29,717 29,719 - (2) 10 - (20)
Jan-20 Sargodha Dal Chana 5,866 - 5,866 - - -
Feb-20 Sargodha Dal Masoor 17,694 23,614 - (5,920) 10 - (59,200)
Mar-20 Sargodha Hayat Banaspati 249,945 217,945 - 32,000 30 960,000 -
Mar-20 Sargodha Sugar 836,874 256,874 - 580,000 16 9,159,355 -
Jul-20 Sargodha Sugar 819,280 819,029 - 251 21 5,267 -
Aug-20 Sargodha Sugar 60,014 59,905 - 109 11 1,193 -
May-20 Sargodha Utility Tota Basmati Rice 24,000 24,000 (6,000) 6,000 13 75,122 -
May-20 Sargodha White Gram 15,788 23,654 - (7,866) 15 - (119,038)
Jun-20 Sargodha White Gram 13,760 5,894 - 7,866 15 117,990 -
Jan-20 Sheikhupura Dal Masoor - 5,900 - (5,900) - - -

78
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Mar-20 Sheikhupura Dil Dil Banaspati 33,950 35,950 - (2,000) 30 - (60,000)

Feb-20 Shikarpur Barkat Banaspati - 30,000 - (30,000) 30 - (900,000)
Apr-20 Shikarpur Dal Chana - 11,926 - (11,926) 15 - (178,890)
May-20 Shikarpur Dal Chana 11,926 - 11,926 15 178,890 -
Jan-20 Shikarpur Dal Masoor - 5,953 - (5,953) - - -
Mar-20 Shikarpur Sugar 380,060 379,995 - 65 16 1,026 -
May-20 Shikarpur Sugar 402,996 445,996 - (43,000) 22 - (925,465)
Jun-20 Shikarpur Sugar 720,000 144,000 - 576,000 16 9,218,557 -
Jan-20 Shikarpur White Gram 6,023 6,000 - 23 10 230 -
Mar-20 Sialkot Barkat Banaspati 9,679 30,000 - (20,321) 27 - (539,975)
Jan-20 Sialkot Dal Masoor - 5,880 - (5,880) - - -
Jun-20 Sialkot Dil Dil Banaspati 30,000 38,000 - (8,000) 20 - (160,000)
Mar-20 Sialkot Nayab Banaspati - 6,000 - (6,000) 30 - (180,000)
Jan-20 Sialkot Sugar 265,036 265,000 - 36 7 252 -
Aug-20 Sialkot Sugar 260,863 260,673 - 190 11 2,080 -
Sep-20 Sialkot Sugar 219,768 209,812 (30,000) 39,956 21 839,286 -
Feb-20 Sialkot Utility Super Basmati Rice 23,920 23,920 (11,960) 11,960 10 119,600 -
May-20 Sibbi Sugar 407,984 543,884 - (135,900) 22 - (2,924,899)
Jun-20 Sibbi Utility Sella Rice (Kainat 1121) 11,960 - 11,960 15 179,400 -
Mar-20 Sibbi Utility Super Basmati Rice 9,000 11,920 - (2,920) 10 - (29,200)
Feb-20 Sukkur Barkat Banaspati - 30,000 - (30,000) 30 - (900,000)
Apr-20 Sukkur Barkat Banaspati 30,000 - 30,000 20 600,000 -
Jan-20 Sukkur Dal Chana - 5,933 - (5,933) - - -

79
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Jan-20 Sukkur Dal Masoor - 11,916 - (11,916) - - -

Feb-20 Sukkur Malta Banaspati - 19,662 - (19,662) 50 - (983,100)
Mar-20 Sukkur Sugar 359,729 359,719 - 10 16 158 -
Jan-20 Sukkur Utility Super Basmati Rice 25,500 36,000 (18,000) 7,500 10 75,000 -
Jan-20 Swabi Dal Masoor - 5,908 - (5,908) - - -
Mar-20 Swabi Handi Banaspati - 7,500 - (7,500) 30 - (225,000)
May-20 Swabi Hayat Banaspati 66,480 99,965 - (33,485) 20 - (669,700)
Apr-20 Swabi Hayat Banaspati 33,485 - 33,485 23 756,846 -
Mar-20 Swabi Nayab Banaspati 25,000 17,500 - 7,500 30 225,000 -
Jan-20 Swat Dal Chana - 5,908 - (5,908) - - -
Jan-20 Swat Dal Masoor - 5,923 - (5,923) - - -
Feb-20 Swat Dal Masoor 11,848 5,920 - 5,928 10 59,280 -
Apr-20 Swat Dastak Ghee 32,004 32,000 - 4 30 120 -
Jan-20 TTSingh Dal Chana - 5,884 - (5,884) - - -
Mar-20 TTSingh Dal Chana 13,860 - 13,860 15 207,900 -
Jan-20 TTSingh Dal Masoor - 5,940 - (5,940) - - -
Feb-20 TTSingh Dal Masoor 11,833 16,737 - (4,904) 10 - (49,040)
May-20 TTSingh Dal Masoor 17,622 17,682 - (60) 42 - (2,510)
Mar-20 TTSingh Dal Masoor 11,000 - 11,000 10 110,000 -
Mar-20 TTSingh Dastak Ghee 70,879 42,500 - 28,379 30 851,370 -
May-20 TTSingh Dastak Ghee 216,678 216,675 - 3 20 60 -
Mar-20 TTSingh Dil Dil Banaspati 24,700 33,950 - (9,250) 30 - (277,500)
Mar-20 TTSingh Handi Banaspati 17,800 10,000 - 7,800 30 234,000 -

80
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Month wise
Difference
KGs as per Month Prevailing
in quantity Over-
GBMS wise average Under-
Month wise KGs excluding statement
Claim Brand/ (Including Contra/ subsidy statement of
Region as per claim contra/ of subsidy
Month type of item Contra/ cancel per subsidy Rs.
(A) cancelled Rs.
Cancelled KGs month (D*E)
GRN (D*E)
GRN) (C) (E)
D=(A-B-C)
(B)

Mar-20 TTSingh Hayat Banaspati 147,710 199,950 - (52,240) 30 - (1,567,200)

Mar-20 TTSingh Maan Banaspati 40,848 32,400 - 8,448 30 253,440 -
Mar-20 TTSingh Manpasand Ghee 33,173 28,000 - 5,173 28 145,676 -
Feb-20 TTSingh Sugar 171,955 171,949 - 6 10 62 -
Mar-20 TTSingh Sugar 195,125 71,888 - 123,237 16 1,946,158 -
Apr-20 TTSingh Sugar 680,667 392,565 - 288,102 22 6,270,589 -
Jun-20 TTSingh Sugar 300,000 300,000 (40,000) 40,000 16 640,178 -
Mar-20 TTSingh Utility Super Basmati Rice 43,439 47,840 - (4,401) 10 - (44,010)
Mar-20 TTSingh Utility Tota Basmati Rice 14,430 11,940 - 2,490 12 29,880 -
Mar-20 TTSingh White Gram 8,297 - 8,297 10 82,970 -
Mar-20 Vehari Barkat Banaspati - 30,000 - (30,000) 27 - (797,168)
Feb-20 Vehari Hafeez Ghee 10,000 30,000 - (20,000) 30 - (600,000)
Jul-20 Vehari Sugar 1,000,464 999,784 - 680 21 14,269 -
Apr-20 Vehari Utility Sella Rice (Kainat 1121) - 11,920 - (11,920) 10 - (119,200)
Jan-20 Muzaffargahar Dal Masoor - 5,910 - (5,910) - - -
Feb-20 Muzaffargahar Dastak Ghee 17,600 5,500 - 12,100 30 363,000 -
Mar-20 Muzaffargahar Handi Banaspati 20,000 10,000 - 10,000 30 300,000 -
Apr-20 Muzaffargahar Nayab Banaspati 20,000 2,000 - 18,000 29 527,778 -
Jun-20 Muzaffargahar Sugar 160,000 32,000 - 128,000 16 2,048,568 -
Jul-20 Muzaffargahar Sugar 818,990 818,610 - 380 21 7,974 -
Mar-20 Muzaffargahar White Gram 11,844 - 11,844 10 118,440 -
Total 326,094,642 325,131,973 (2,514,420) 3,477,089 173,534,170 (102,634,229)

81
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

82
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Annexure D
Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
31-Jan-
Sukkur Dal Chana 1,485 1,485 - - -
20
31-Jan-
TTSingh Hayat Banaspati 6,000 (6,000) 12.03 - (72,169)
20
31-Jan-
Faisalabad Hayat Banaspati 7,000 7,000 12.03 84,197 -
20
31-Jan-
Jhang Maan Banaspati 5,000 (5,000) 20.00 - (100,000)
20
31-Jan-
Faisalabad Maan Banaspati 11,000 11,000 20.00 220,000 -
20
31-Jan-
Sahiwal Sugar 10,021 (10,021) 7.00 - (70,147)
20
31-Jan-
Nawabshah Sugar 29,869 29,869 7.00 209,083 -
20
31-Jan-
Okara Sugar 35,089 35,089 7.00 245,623 -
20
31-Jan-
Sheikhupura Sugar 50,000 50,000 7.00 350,000 -
20
31-Jan-
KarachiS Sugar 60,428 (60,428) 7.00 - (422,996)
20
31-Jan-
LahoreN Sugar 75,068 (75,068) 7.00 - (525,476)
20
31-Jan-
KarachiS Utility Sella Rice (Kainat 1121) 960 (960) 10.00 - (9,600)
20
31-Jan-
KSUllah Utility Super Basmati Rice 2,984 2,984 10.00 29,840 -
20
31-Jan-
Nushki Utility Super Basmati Rice 3,000 3,000 10.00 30,000 -
20
31-Jan-
Pishin Utility Super Basmati Rice 3,000 3,000 10.00 30,000 -
20
31-Jan-
Sibbi Utility Super Basmati Rice 3,000 3,000 10.00 30,000 -
20
31-Jan-
Quetta Utility Super Basmati Rice 21,980 (21,980) 10.00 - (219,800)
20
31-Jan-
KarachiS Utility Tota Basmati Rice 720 (720) 12.00 - (8,640)
20
31-Jan-
KarachiS White Gram 80 (80) 10.00 - (800)
20

83
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
31-Jan-
Dadu White Gram 1,000 1,000 10.00 10,000 -
20
31-Jan-
Badin White Gram 5,938 (5,938) 10.00 - (59,380)
20
29-Feb-
Nawabshah Barkat Banaspati 7,000 7,000 30.00 210,000 -
20
29-Feb-
Larkana Dal Chana 5,990 (5,990) 15.00 - (89,850)
20
29-Feb-
KarachiS Dal Masoor 11,866 11,866 10.00 118,660 -
20
29-Feb-
LahoreN Dastak Ghee 9,600 (9,600) 30.00 - (288,000)
20
29-Feb-
Sheikhupura Dastak Ghee 9,600 (9,600) 30.00 - (288,000)
20
29-Feb-
Hyderabad Dastak Ghee 15,000 15,000 30.00 450,000 -
20
29-Feb-
Nawabshah Dastak Ghee 29,994 29,994 30.00 899,820 -
20
29-Feb-
KarachiN Dastak Ghee 40,200 (40,200) 30.00 - (1,206,000)
20
29-Feb-
Khushab Hayat Banaspati 7,000 (7,000) 30.00 - (210,000)
20
29-Feb-
Sahiwal Hayat Banaspati 12,000 (12,000) 30.00 - (360,000)
20
29-Feb-
Badin Hayat Banaspati 17,000 17,000 30.00 510,000 -
20
29-Feb-
MPKhas Hayat Banaspati 18,000 18,000 30.00 540,000 -
20
29-Feb-
Kohat Hayat Banaspati 20,000 20,000 30.00 600,000 -
20
29-Feb-
Okara Hayat Banaspati 22,000 22,000 30.00 660,000 -
20
29-Feb-
KarachiN Hayat Banaspati 24,000 (24,000) 30.00 - (720,000)
20
29-Feb-
Sargodha Hayat Banaspati 47,000 47,000 30.00 1,410,000 -
20
29-Feb-
KarachiS Hayat Banaspati 48,000 (48,000) 30.00 - (1,440,000)
20
29-Feb-
Jhang Hayat Banaspati 50,000 50,000 30.00 1,500,000 -
20

84
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
29-Feb-
MBDin Hayat Banaspati 80,200 80,200 30.00 2,406,000 -
20
29-Feb-
Islamabad Hayat Banaspati 165,675 (165,675) 30.00 - (4,970,250)
20
29-Feb-
PeshawarN Hayat Banaspati 200,100 200,100 30.00 6,003,000 -
20
29-Feb-
RawalpindiS Hayat Banaspati 280,000 (280,000) 30.00 - (8,400,000)
20
29-Feb-
Ghotki Malta Banaspati 3,000 3,000 50.00 150,000 -
20
29-Feb-
Hyderabad Sugar 30,059 30,059 10.26 308,487 -
20
29-Feb-
Multan Utility Tota Basmati Rice 3,000 (3,000) 12.00 - (36,000)
20
29-Feb-
Nawabshah Utility Tota Basmati Rice 6,000 6,000 12.00 72,000 -
20
29-Feb-
RYKhan White Gram 2,974 2,974 10.00 29,740 -
20
31-Mar-
KarachiS Barkat Banaspati 50,000 50,000 26.57 1,328,613 -
20
31-Mar-
KarachiS Dal Chana 955 (955) 15.00 - (14,325)
20
31-Mar-
Gawadar Dal Chana 995 995 15.00 14,925 -
20
31-Mar-
KarachiS Dastak Ghee 4,800 4,800 - 30.00 - -
20
31-Mar-
Swat Dastak Ghee 20,000 20,000 30.00 600,000 -
20
31-Mar-
Sargodha Hayat Banaspati 10,000 10,000 30.00 300,000 -
20
31-Mar-
Islamabad Hayat Banaspati 16,000 (16,000) 30.00 - (480,000)
20
31-Mar-
Mardan Hayat Banaspati 90,000 90,000 30.00 2,700,000 -
20
31-Mar-
KarachiS Malta Banaspati 19,992 19,992 50.00 999,600 -
20
31-Mar-
RawalpindiN Sugar 6,000 6,000 - 15.79 - -
20
31-Mar-
KarachiN Sugar 4,990 5,000 (10) 15.79 - (158)
20

85
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
31-Mar-
KarachiS Sugar 5,000 4,990 10 15.79 158 -
20
31-Mar-
Attock Sugar 6,000 (6,000) 15.79 - (94,752)
20
31-Mar-
RawalpindiS Sugar 15,979 (15,979) 15.79 - (252,340)
20
31-Mar-
Islamabad Sugar 21,979 5,000 16,979 15.79 268,132 -
20
31-Mar-
Khanewal Utility Super Basmati Rice 5,880 5,880 10.00 58,800 -
20
31-Mar-
Attock Utility Super Basmati Rice 6,000 6,000 10.00 60,000 -
20
31-Mar-
Gujranwala Utility Super Basmati Rice 6,000 6,000 10.00 60,000 -
20
31-Mar-
Okara Utility Super Basmati Rice 6,000 6,000 10.00 60,000 -
20
31-Mar-
Sahiwal Utility Super Basmati Rice 6,000 6,000 10.00 60,000 -
20
31-Mar-
Sheikhupura Utility Super Basmati Rice 6,000 6,000 10.00 60,000 -
20
31-Mar-
Vehari Utility Super Basmati Rice 6,000 6,000 10.00 60,000 -
20
31-Mar- Muzaffargah
Utility Super Basmati Rice 6,000 6,000 10.00 60,000 -
20 ar
31-Mar-
RawalpindiN Utility Super Basmati Rice 12,000 12,000 10.00 120,000 -
20
31-Mar-
RawalpindiS Utility Super Basmati Rice 12,000 12,000 10.00 120,000 -
20
31-Mar-
Sargodha Utility Super Basmati Rice 12,000 12,000 10.00 120,000 -
20
31-Mar-
Islamabad Utility Super Basmati Rice 24,000 24,000 10.00 240,000 -
20
31-Mar-
LahoreN Utility Super Basmati Rice 24,000 24,000 10.00 240,000 -
20
31-Mar-
LahoreS Utility Super Basmati Rice 24,000 24,000 10.00 240,000 -
20
31-Mar-
KarachiN Utility Tota Basmati Rice 10,000 12,000 (2,000) 12.00 - (24,000)
20
31-Mar-
KarachiS Utility Tota Basmati Rice 12,000 9,000 3,000 12.00 36,000 -
20

86
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
31-Mar-
Badin White Gram 60 60 10.00 600 -
20
31-Mar-
Hyderabad White Gram 500 (500) 10.00 - (5,000)
20
31-Mar-
RawalpindiN White Gram 600 (600) 10.00 - (6,000)
20
31-Mar-
RawalpindiS White Gram 800 (800) 10.00 - (8,000)
20
31-Mar-
Islamabad White Gram 1,400 1,400 10.00 14,000 -
20
31-Mar-
Sukkur White Gram 5,858 5,858 10.00 58,580 -
20
16-Apr-
Okara Barkat Banaspati 28,047 28,047 20.00 560,940 -
20
16-Apr-
Pishin Dal Chana 3,000 (3,000) 15.00 - (45,000)
20
16-Apr-
KarachiS Dal Chana 17,881 17,881 15.00 268,215 -
20
16-Apr-
KarachiN Dal Chana 18,000 (18,000) 15.00 - (270,000)
20
16-Apr-
Badin Dal Masoor 120 120 10.00 1,200 -
20
16-Apr-
Faisalabad Dastak Ghee 19,092 19,092 29.89 570,649 -
20
16-Apr-
Okara Handi Banaspati 5,602 5,602 20.05 112,333 -
20
16-Apr-
Jhelum Hayat Banaspati 32,500 (32,500) 22.60 - (734,583)
20
16-Apr-
PeshawarN Nayab Banaspati 19,955 19,955 29.32 585,101 -
20
16-Apr-
Okara Platinum Ghee 4,716 4,716 20.00 94,320 -
20
16-Apr-
Badin Sugar 500 500 21.77 10,883 -
20
16-Apr-
RawalpindiS Sugar 5,000 5,000 21.77 108,826 -
20
16-Apr-
Badin Utility Sella Rice (Kainat 1121) 360 360 10.00 3,600 -
20
16-Apr-
Vehari Utility Sella Rice (Kainat 1121) 11,920 11,920 10.00 119,200 -
20

87
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
16-Apr-
Badin Utility Super Basmati Rice 3,000 3,000 10.00 30,000 -
20
16-Apr-
Hyderabad Utility Super Basmati Rice 16,000 6,000 10,000 10.00 100,000 -
20
16-Apr-
Nawabshah Utility Super Basmati Rice 12,000 (12,000) 10.00 - (120,000)
20
16-Apr-
MPKhas Utility Super Basmati Rice 23,970 3,000 20,970 10.00 209,700 -
20
16-Apr-
KarachiN Utility Super Basmati Rice 22,000 (22,000) 10.00 - (220,000)
20
16-Apr-
MPKhas Utility Tota Basmati Rice 3,000 (3,000) 12.00 - (36,000)
20
16-Apr-
RYKhan Utility Tota Basmati Rice 6,000 (6,000) 12.00 - (72,000)
20
16-Apr-
Sukkur Utility Tota Basmati Rice 6,000 6,000 12.00 72,000 -
20
16-Apr-
Badin Utility Tota Basmati Rice 8,240 520 7,720 12.00 92,640 -
20
16-Apr-
KarachiN Utility Tota Basmati Rice 16,000 30,000 (14,000) 12.00 - (168,000)
20
16-Apr-
Hyderabad Utility Tota Basmati Rice 21,000 (21,000) 12.00 - (252,000)
20
16-Apr-
KarachiS Utility Tota Basmati Rice 30,506 30,506 12.00 366,072 -
20
16-Apr-
KarachiN White Gram 5,923 4,000 1,923 10.00 19,230 -
20
16-Apr-
Shikarpur White Gram 2,974 2,974 10.00 29,740 -
20
16-Apr-
Pishin White Gram 3,000 (3,000) 10.00 - (30,000)
20
16-Apr-
Badin White Gram 80 3,945 (3,865) 10.00 - (38,650)
20
16-Apr-
Sialkot White Gram 5,878 5,878 10.00 58,780 -
20
16-Apr-
MPKhas White Gram 5,923 (5,923) 10.00 - (59,230)
20
16-Apr-
KarachiS White Gram 7,945 7,945 10.00 79,450 -
20
30-May- Bahawalnag
Baisan Chakki 2,510 2,510 20.00 50,200 -
20 er

88
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-May-
Dadu Baisan Chakki 2,860 2,860 20.00 57,200 -
20
30-May-
Multan Baisan Chakki 3,325 3,325 20.00 66,500 -
20
30-May-
Larkana Baisan Chakki 3,500 3,500 20.00 70,000 -
20
30-May-
Shikarpur Baisan Chakki 3,500 3,500 20.00 70,000 -
20
30-May-
Ghotki Baisan Chakki 5,000 720 4,280 20.00 85,600 -
20
30-May-
Gujranwala Baisan Chakki 4,376 4,376 20.00 87,520 -
20
30-May-
Jhang Baisan Chakki 5,371 5,371 20.00 107,420 -
20
30-May-
Badin Baisan Chakki 5,930 5,930 20.00 118,600 -
20
30-May-
Layyah Baisan Chakki 6,000 6,000 20.00 120,000 -
20
30-May-
Bahawalpur Baisan Chakki 6,048 6,048 20.00 120,960 -
20
30-May-
Attock Baisan Chakki 6,080 6,080 20.00 121,600 -
20
30-May-
Khanewal Baisan Chakki 6,335 6,335 20.00 126,700 -
20
30-May-
Kohat Baisan Chakki 6,895 6,895 20.00 137,900 -
20
30-May-
MPKhas Baisan Chakki 6,965 6,965 20.00 139,300 -
20
30-May-
Gilgit Baisan Chakki 7,000 7,000 20.00 140,000 -
20
30-May-
Sialkot Baisan Chakki 7,804 7,804 20.00 156,080 -
20
30-May-
Dir Baisan Chakki 7,940 7,940 20.00 158,800 -
20
30-May-
Sahiwal Baisan Chakki 8,010 8,010 20.00 160,200 -
20
30-May-
Vehari Baisan Chakki 8,268 8,268 20.00 165,360 -
20
30-May-
Khushab Baisan Chakki 9,923 9,923 20.00 198,460 -
20

89
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-May-
Bannu Baisan Chakki 10,140 10,140 20.00 202,800 -
20
30-May-
MBDin Baisan Chakki 10,557 10,557 20.00 211,140 -
20
30-May-
Hyderabad Baisan Chakki 64,388 53,708 10,680 20.00 213,600 -
20
30-May-
DIKhan Baisan Chakki 10,850 10,850 20.00 217,000 -
20
30-May-
Nawabshah Baisan Chakki 11,016 11,016 20.00 220,320 -
20
30-May-
TTSingh Baisan Chakki 11,163 11,163 20.00 223,260 -
20
30-May-
Chakwal Baisan Chakki 11,860 11,860 20.00 237,200 -
20
30-May-
KarachiN Baisan Chakki 11,916 11,916 20.00 238,320 -
20
30-May-
KarachiS Baisan Chakki 11,923 11,923 20.00 238,460 -
20
30-May-
Swabi Baisan Chakki 15,714 15,714 20.00 314,280 -
20
30-May-
Faisalabad Baisan Chakki 16,534 (16,534) 20.00 - (330,680)
20
30-May-
RYKhan Baisan Chakki 16,710 16,710 20.00 334,200 -
20
30-May- Muzaffaraba
Baisan Chakki 18,690 18,690 20.00 373,800 -
20 d
30-May-
Mianwali Baisan Chakki 22,425 22,425 20.00 448,500 -
20
30-May-
RawalpindiS Baisan Chakki 22,604 22,604 20.00 452,080 -
20
30-May-
RawalpindiN Baisan Chakki 25,987 25,987 20.00 519,740 -
20
30-May-
Jhelum Baisan Chakki 29,900 29,900 20.00 598,000 -
20
30-May-
LahoreN Baisan Chakki 30,413 (30,413) 20.00 - (608,260)
20
30-May-
Sukkur Baisan Chakki 30,850 (30,850) 20.00 - (617,000)
20
30-May-
PeshawarS Baisan Chakki 78,417 43,630 34,787 20.00 695,740 -
20

90
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-May-
Sargodha Baisan Chakki 42,905 (42,905) 20.00 - (858,100)
20
30-May-
Mansehra Baisan Chakki 48,834 48,834 20.00 976,680 -
20
30-May-
LahoreS Baisan Chakki 62,977 62,977 20.00 1,259,540 -
20
30-May-
Islamabad Baisan Chakki 106,439 (106,439) 20.00 - (2,128,780)
20
30-May-
Mardan Black Tea 23 23 48.34 1,102 -
20
30-May-
Swabi Black Tea 582 582 48.34 28,147 -
20
30-May-
LahoreN Black Tea 684 (684) 48.34 - (33,067)
20
30-May-
Sheikhupura Black Tea 734 734 48.34 35,465 -
20
30-May-
Gawadar Black Tea 798 798 48.34 38,578 -
20
30-May-
RYKhan Black Tea 798 798 48.34 38,578 -
20
30-May-
Multan Black Tea 1,140 1,140 48.34 55,112 -
20
30-May-
Shikarpur Black Tea 1,235 (1,235) 48.34 - (59,706)
20
30-May-
Mansehra Black Tea 1,482 1,482 48.34 71,645 -
20
30-May- Muzaffaraba
Black Tea 2,280 2,280 48.34 110,223 -
20 d
30-May-
Larkana Black Tea 2,489 2,489 48.34 120,329 -
20
30-May-
RawalpindiS Black Tea 2,850 (2,850) 48.34 - (137,779)
20
30-May-
Gujrat Black Tea 3,876 570 3,306 48.34 159,824 -
20
30-May-
Jhelum Black Tea 11,637 2,736 8,901 48.34 430,287 -
20
30-May-
RawalpindiN Black Tea 570 11,332 (10,762) 48.34 - (520,254)
20
30-May-
Ghotki Dal Chana 3,962 9,855 (5,893) 15.00 - (88,395)
20

91
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-May-
Sukkur Dal Chana 11,856 2,960 8,896 15.00 133,440 -
20
30-May-
Mardan Dal Chana 9,850 156 9,694 15.00 145,410 -
20
30-May-
Shikarpur Dal Chana 9,827 9,827 15.00 147,405 -
20
30-May-
Sialkot Dal Chana 9,840 9,840 15.00 147,600 -
20
30-May-
Larkana Dal Chana 10,864 10,864 15.00 162,960 -
20
30-May-
Sahiwal Dal Chana 11,800 11,800 15.00 177,000 -
20
30-May-
Khanewal Dal Chana 11,846 11,846 15.00 177,690 -
20
30-May- Muzaffargah
Dal Chana 11,846 11,846 15.00 177,690 -
20 ar
30-May-
Vehari Dal Chana 11,856 11,856 15.00 177,840 -
20
30-May-
Swabi Dal Chana 14,790 14,790 15.00 221,850 -
20
30-May-
LahoreN Dal Chana 21,640 (21,640) 15.00 - (324,600)
20
30-May-
Multan Dal Chana 23,682 23,682 15.00 355,230 -
20
30-May-
Gilgit Dal Chana 29,790 29,790 15.00 446,850 -
20
30-May-
Islamabad Dal Chana 41,496 (41,496) 15.00 - (622,440)
20
30-May-
Bannu Dal Mash - - 10.00 - -
20
30-May-
Dir Dal Mash - - 10.00 - -
20
30-May-
Kohat Dal Mash - - 10.00 - -
20
30-May-
Mardan Dal Mash - - 10.00 - -
20
30-May-
PeshawarS Dal Mash - - 10.00 - -
20
30-May-
Swat Dal Mash - - 10.00 - -
20

92
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-May-
Vehari Dal Mash - - 10.00 - -
20
30-May-
RYKhan Dal Masoor 5,690 5,968 (278) 41.84 - (11,631)
20
30-May-
Gawadar Dal Masoor 993 993 41.84 41,545 -
20
30-May-
KarachiS Dal Masoor 993 993 41.84 41,545 -
20
30-May-
Sheikhupura Dal Masoor 993 993 41.84 41,545 -
20
30-May-
Mansehra Dal Masoor 3,933 (3,933) 41.84 - (164,550)
20
30-May-
Ghotki Dal Masoor 5,690 (5,690) 41.84 - (238,060)
20
30-May-
Sukkur Dal Masoor 5,968 5,968 41.84 249,691 -
20
30-May-
RYKhan Dastak Ghee 3,500 3,500 20.00 70,000 -
20
30-May-
Jhelum Dastak Ghee 13,000 (13,000) 20.00 - (260,000)
20
30-May-
Dir Dastak Ghee 20,000 (20,000) 20.00 - (400,000)
20
30-May- Muzaffargah
Dastak Ghee 35,000 35,000 20.00 700,000 -
20 ar
30-May-
Sheikhupura Dastak Ghee 40,000 40,000 20.00 800,000 -
20
30-May- Bahawalnag
Destak Oil 5,000 5,000 20.00 100,000 -
20 er
30-May-
Jhelum Dil Dil Banaspati 7,000 (7,000) 20.00 - (140,000)
20
30-May-
Sheikhupura Handi Banaspati 4,909 4,909 20.00 98,180 -
20
30-May-
RawalpindiS Handi Banaspati 9,600 9,600 20.00 192,000 -
20
30-May-
MBDin Hayat Banaspati 10,000 10,000 20.00 200,000 -
20
30-May-
Ghotki Hayat Banaspati 12,000 (12,000) 20.00 - (240,000)
20
30-May-
RYKhan Hayat Banaspati 16,000 16,000 20.00 320,000 -
20

93
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-May-
Jhelum Hayat Banaspati 43,200 60,000 (16,800) 20.00 - (336,000)
20
30-May-
Vehari Hayat Banaspati 25,000 (25,000) 20.00 - (500,000)
20
30-May-
Sheikhupura Hayat Banaspati 25,327 25,327 20.00 506,540 -
20
30-May-
RawalpindiS Hayat Banaspati 30,000 30,000 20.00 600,000 -
20
30-May-
Mianwali Hayat Banaspati 40,000 (40,000) 20.00 - (800,000)
20
30-May-
Sargodha Hayat Banaspati 40,000 (40,000) 20.00 - (800,000)
20
30-May-
Islamabad Hayat Banaspati 43,200 (43,200) 20.00 - (864,000)
20
30-May-
TTSingh Hayat Banaspati 60,000 60,000 20.00 1,200,000 -
20
30-May-
Mardan Hayat Banaspati 80,000 468 79,532 20.00 1,590,640 -
20
30-May-
Swat Hayat Banaspati 80,000 80,000 20.00 1,600,000 -
20
30-May-
Faisalabad Hayat Banaspati 92,000 92,000 20.00 1,840,000 -
20
30-May-
Vehari Hayat Oil 10,000 (10,000) 20.00 - (200,000)
20
30-May-
PeshawarS Hayat Oil 30,000 (30,000) 20.00 - (600,000)
20
30-May-
Multan Hayat Oil 33,250 33,250 20.00 665,000 -
20
30-May-
Gilgit Hayat Oil 63,250 63,250 20.00 1,265,000 -
20
30-May-
Khanewal Maan Banaspati 1,102 (1,102) 20.38 - (22,456)
20
30-May-
Sheikhupura Maan Banaspati 15,497 15,497 20.38 315,793 -
20
30-May-
Dir Maan Banaspati 20,016 (20,016) 20.38 - (407,880)
20
30-May-
Khanewal Maan Oil 117 (117) 20.00 - (2,340)
20
30-May-
RYKhan Malta Banaspati 6,600 6,600 30.00 198,000 -
20

94
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-May- Muzaffaraba
Mezan Oil 1,000 1,000 20.00 20,000 -
20 d
30-May-
Nawabshah Mezan Oil 6,000 6,000 20.00 120,000 -
20
30-May-
RawalpindiN Mezan Oil 20,000 20,000 20.00 400,000 -
20
30-May-
LahoreN Milk (UHT) 108 108 19.51 2,107 -
20
30-May-
RawalpindiN Milk (UHT) 1,200 1,200 19.51 23,409 -
20
30-May-
Multan Milk (UHT) 2,205 2,205 19.51 43,015 -
20
30-May-
Swat Milk (UHT) 2,550 (2,550) 19.51 - (49,745)
20
30-May-
Sargodha Milk (UHT) 4,200 4,200 19.51 81,933 -
20
30-May-
Gujranwala Milk (UHT) 4,800 (4,800) 19.51 - (93,638)
20
30-May-
RYKhan Milk (UHT) 4,800 (4,800) 19.51 - (93,638)
20
30-May-
Sheikhupura Milk (UHT) 5,064 (5,064) 19.51 - (98,788)
20
30-May-
Gawadar Milk (UHT) 6,600 6,600 19.51 128,752 -
20
30-May- Muzaffaraba
Milk (UHT) 7,464 7,464 19.51 145,607 -
20 d
30-May-
Khushab Milk (UHT) 7,500 7,500 19.51 146,309 -
20
30-May-
Faisalabad Milk (UHT) 11,700 (11,700) 19.51 - (228,242)
20
30-May-
RawalpindiS Milk (UHT) 15,600 15,600 19.51 304,323 -
20
30-May-
Jhelum Milk (UHT) 16,800 (16,800) 19.51 - (327,733)
20
30-May-
LahoreS Milk (UHT) 17,816 17,816 19.51 347,543 -
20
30-May-
Mansehra Milk (UHT) 18,000 18,000 19.51 351,142 -
20
30-May-
Ghotki Nayab Banaspati 12,000 (12,000) 20.00 - (240,000)
20

95
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-May-
RYKhan Nayab Banaspati 14,500 14,500 20.00 290,000 -
20
30-May-
Mardan Spices 660 660 79.61 52,542 -
20
30-May- Squashes & Syrups (1500 ml)
Khanewal 120 (120) 25.00 - (3,000)
20 Bottle
30-May- Squashes & Syrups (1500 ml)
Swabi 360 360 25.00 9,000 -
20 Bottle
30-May- Squashes & Syrups (800 ml)
Larkana 240 240 20.00 4,800 -
20 Bottle
30-May- Squashes & Syrups (800 ml)
RYKhan 600 600 20.00 12,000 -
20 Bottle
30-May- Squashes & Syrups (800 ml)
Swabi 1,320 1,320 20.00 26,400 -
20 Bottle
30-May- Squashes & Syrups (800 ml)
Gawadar 4,800 4,800 20.00 96,000 -
20 Bottle
30-May-
Mardan Sugar 312 (312) 21.52 - (6,715)
20
30-May-
Ghotki Sugar 12,019 12,019 21.52 258,678 -
20
30-May-
Sialkot Sugar 14,989 14,989 21.52 322,600 -
20
30-May-
RYKhan Sugar 19,999 19,999 21.52 430,427 -
20
30-May-
Gujranwala Sugar 20,982 (20,982) 21.52 - (451,584)
20
30-May-
Larkana Sugar 24,019 24,019 21.52 516,947 -
20
30-May-
Shikarpur Sugar 24,038 (24,038) 21.52 - (517,356)
20
30-May-
Swabi Sugar 29,937 29,937 21.52 644,317 -
20
30-May-
Islamabad Sugar 30,000 30,000 21.52 645,673 -
20
30-May-
Sukkur Sugar 31,999 (31,999) 21.52 - (688,696)
20
30-May-
Sheikhupura Sugar 32,000 (32,000) 21.52 - (688,718)
20
30-May-
LahoreN Sugar 35,007 35,007 21.52 753,436 -
20

96
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-May-
MPKhas Sugar 60,000 60,000 21.52 1,291,346 -
20
30-May-
Jhelum Sugar 79,792 79,792 21.52 1,717,318 -
20
30-May-
Hyderabad Sugar 89,985 89,985 21.52 1,936,696 -
20
30-May-
Okara Sugar 98,002 (98,002) 21.52 - (2,109,241)
20
30-May-
RawalpindiS Sugar 99,792 (99,792) 21.52 - (2,147,767)
20
30-May-
Sahiwal Sugar 130,002 130,002 21.52 2,797,959 -
20
30-May-
KarachiN Sugar 150,000 (150,000) 21.52 - (3,228,365)
20
30-May-
Larkana Utility Sella Rice (Kainat 1121) 3,960 3,960 12.03 47,626 -
20
30-May-
RYKhan Utility Sella Rice (Kainat 1121) 4,000 (4,000) 12.03 - (48,107)
20
30-May-
LahoreN Utility Sella Rice (Kainat 1121) 30,800 30,800 12.03 370,424 -
20
30-May-
PeshawarS Utility Sella Rice (Kainat 1121) 48,000 48,000 12.03 577,284 -
20
30-May-
Attock Utility Sella Rice (Kainat 1121) 60,000 (60,000) 12.03 - (721,605)
20
30-May-
Mardan Utility Super Basmati Rice 468 (468) 11.32 - (5,300)
20
30-May-
Dadu Utility Super Basmati Rice 8,000 8,000 11.32 90,597 -
20
30-May-
Ghotki Utility Super Basmati Rice 8,000 8,000 11.32 90,597 -
20
30-May-
Nawabshah Utility Super Basmati Rice 12,000 (12,000) 11.32 - (135,895)
20
30-May-
Larkana Utility Super Basmati Rice 18,000 18,000 11.32 203,843 -
20
30-May-
Sukkur Utility Super Basmati Rice 18,000 18,000 11.32 203,843 -
20
30-May-
RYKhan Utility Super Basmati Rice 52,000 (52,000) 11.32 - (588,879)
20
30-May-
Hyderabad Utility Tota Basmati Rice 6,000 6,000 12.52 75,122 -
20

97
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-May-
Larkana Utility Tota Basmati Rice 6,000 6,000 12.52 75,122 -
20
30-May-
MPKhas Utility Tota Basmati Rice 6,000 6,000 12.52 75,122 -
20
30-May-
RawalpindiN Utility Tota Basmati Rice 8,000 (8,000) 12.52 - (100,162)
20
30-May-
Nawabshah Utility Tota Basmati Rice 12,000 (12,000) 12.52 - (150,243)
20
30-May-
Shikarpur Utility Tota Basmati Rice 14,000 14,000 12.52 175,284 -
20
30-May-
Bannu Utility Tota Basmati Rice 20,000 20,000 12.52 250,406 -
20
30-May-
Sukkur Utility Tota Basmati Rice 30,000 30,000 12.52 375,609 -
20
30-May-
RYKhan Utility Tota Basmati Rice 16,000 61,000 (45,000) 12.52 - (563,413)
20
30-May-
Mardan White Gram 156 (156) 15.13 - (2,361)
20
30-May-
PeshawarS White Gram 990 (990) 15.13 - (14,982)
20
30-May-
Shikarpur White Gram 1,986 1,986 15.13 30,055 -
20
30-May-
Sheikhupura White Gram 1,990 1,990 15.13 30,115 -
20
30-May-
Larkana White Gram 3,922 3,922 15.13 59,353 -
20
30-May-
Bannu White Gram 3,970 (3,970) 15.13 - (60,079)
20
30-May-
Swabi White Gram 4,945 4,945 15.13 74,834 -
20
30-May-
Kohat White Gram 4,960 4,960 15.13 75,061 -
20
30-May-
Ghotki White Gram 6,000 (6,000) 15.13 - (90,799)
20
30-May-
LahoreS White Gram 10,000 10,000 15.13 151,332 -
20
30-May-
Okara White Gram 11,745 11,745 15.13 177,740 -
20
30-May-
Multan White Gram 11,874 (11,874) 15.13 - (179,692)
20

98
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-May-
RYKhan White Gram 13,742 (13,742) 15.13 - (207,961)
20
30-May-
Sukkur White Gram 13,820 13,820 15.13 209,141 -
20
30-May-
Vehari White Gram 19,782 19,782 15.13 299,366 -
20
30-May-
LahoreN White Gram 21,745 (21,745) 15.13 - (329,072)
20
30-Jun-
TTSingh Barkat Banaspati 161,194 161,194 20.00 3,223,880 -
20
30-Jun-
Nawabshah Dal Chana 3,418 3,418 15.00 51,270 -
20
30-Jun-
Jhelum Dal Chana 4,890 (4,890) 15.00 - (73,350)
20
30-Jun-
Chakwal Dal Chana 5,090 5,090 15.00 76,350 -
20
30-Jun-
Khushab Dal Chana 5,845 (5,845) 15.00 - (87,675)
20
30-Jun-
Vehari Dal Chana 5,862 (5,862) 15.00 - (87,930)
20
30-Jun-
Mianwali Dal Chana 5,883 (5,883) 15.00 - (88,245)
20
30-Jun-
Sargodha Dal Chana 11,728 11,728 15.00 175,920 -
20
30-Jun-
Hyderabad Dal Chana 24,572 3,418 21,154 15.00 317,310 -
20
30-Jun-
KarachiN Dal Masoor 2,000 2,000 - 45.00 - -
20
30-Jun-
Hyderabad Dal Masoor 17,146 17,146 45.00 771,570 -
20
30-Jun-
Sheikhupura Dastak Ghee 10,000 10,000 20.00 200,000 -
20
30-Jun-
Shikarpur Dastak Ghee 12,000 (12,000) 20.00 - (240,000)
20
30-Jun-
Sukkur Dastak Ghee 30,000 (30,000) 20.00 - (600,000)
20
30-Jun-
Faisalabad Dastak Ghee 40,000 40,000 20.00 800,000 -
20
30-Jun-
RYKhan Dastak Ghee 42,000 42,000 20.00 840,000 -
20

99
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-Jun-
Khushab Dastak Ghee 50,000 (50,000) 20.00 - (1,000,000)
20
30-Jun-
Sargodha Dastak Ghee 90,000 90,000 20.00 1,800,000 -
20
30-Jun-
Mianwali Dastak Ghee 100,000 (100,000) 20.00 - (2,000,000)
20
30-Jun-
TTSingh Dastak Ghee 108,303 108,303 20.00 2,166,060 -
20
30-Jun-
TTSingh Dil Dil Banaspati 1,500 1,500 20.00 30,000 -
20
30-Jun-
Chakwal Dil Dil Banaspati 5,000 5,000 20.00 100,000 -
20
30-Jun-
TTSingh Handi Banaspati 1,524 1,524 20.00 30,480 -
20
30-Jun-
RawalpindiS Hayat Banaspati 10,000 10,000 20.00 200,000 -
20
30-Jun-
Larkana Hayat Banaspati 12,000 12,000 20.00 240,000 -
20
30-Jun-
Pishin Hayat Banaspati 25,500 (25,500) 20.00 - (510,000)
20
30-Jun-
Nushki Hayat Banaspati 32,000 (32,000) 20.00 - (640,000)
20
30-Jun-
Shikarpur Hayat Banaspati 36,000 (36,000) 20.00 - (720,000)
20
30-Jun-
Haripur Hayat Banaspati 40,000 (40,000) 20.00 - (800,000)
20
30-Jun-
RYKhan Hayat Banaspati 54,000 54,000 20.00 1,080,000 -
20
30-Jun-
TTSingh Hayat Banaspati 57,809 57,809 20.00 1,156,180 -
20
30-Jun-
Swabi Hayat Banaspati 70,000 70,000 20.00 1,400,000 -
20
30-Jun-
TTSingh Maan Banaspati 15,998 15,998 20.00 319,960 -
20
30-Jun-
LahoreN Maan Banaspati 131,976 131,976 20.00 2,639,520 -
20
30-Jun-
TTSingh Manpasand Ghee 5,144 5,144 20.00 102,880 -
20
30-Jun-
TTSingh Nayab Banaspati 5,693 5,693 20.00 113,860 -
20

100
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-Jun-
RawalpindiS Sugar 11,500 19,000 (7,500) 16.00 - (120,033)
20
30-Jun-
LahoreN Sugar 10,009 10,009 16.00 160,188 -
20
30-Jun-
Shikarpur Sugar 12,000 (12,000) 16.00 - (192,053)
20
30-Jun-
MPKhas Sugar 15,000 15,000 16.00 240,067 -
20
30-Jun-
RYKhan Sugar 20,000 20,000 16.00 320,089 -
20
30-Jun-
LahoreS Sugar 20,018 20,018 16.00 320,377 -
20
30-Jun-
Jhelum Sugar 25,007 25,007 16.00 400,223 -
20
30-Jun-
Sialkot Sugar 26,016 26,016 16.00 416,372 -
20
30-Jun-
KarachiS Sugar 30,000 30,000 16.00 480,133 -
20
30-Jun-
Larkana Sugar 32,000 32,000 16.00 512,142 -
20
30-Jun-
Sukkur Sugar 40,000 (40,000) 16.00 - (640,178)
20
30-Jun-
Chakwal Sugar 44,988 44,988 16.00 720,008 -
20
30-Jun-
Gujranwala Sugar 56,043 (56,043) 16.00 - (896,937)
20
30-Jun-
RawalpindiN Sugar 69,987 1,500 68,487 16.00 1,096,096 -
20
30-Jun-
Badin Sugar 81,000 (81,000) 16.00 - (1,296,360)
20
30-Jun-
Attock Sugar 84,988 84,988 16.00 1,360,185 -
20
30-Jun-
KarachiN Sugar 120,000 (120,000) 16.00 - (1,920,533)
20
30-Jun-
Hyderabad Sugar 156,000 156,000 16.00 2,496,693 -
20
30-Jun-
Islamabad Sugar 215,970 (215,970) 16.00 - (3,456,479)
20
30-Jun-
Swabi Utility Sella Rice (Kainat 1121) 24,000 24,000 15.00 360,000 -
20

101
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-Jun-
Larkana Utility Super Basmati Rice 6,000 6,000 15.00 90,000 -
20
30-Jun-
Dir Utility Tota Basmati Rice 450 450 15.00 6,750 -
20
30-Jun-
Ghotki Utility Tota Basmati Rice 1,700 1,700 15.00 25,500 -
20
30-Jun-
Hyderabad Utility Tota Basmati Rice 12,000 12,000 15.00 180,000 -
20
30-Jun-
KarachiS Utility Tota Basmati Rice 18,000 (18,000) 15.00 - (270,000)
20
30-Jun-
KarachiN White Gram 2,000 2,000 - 15.00 - -
20
30-Jun-
Jhang White Gram 5,881 5,881 15.00 88,215 -
20
30-Jun-
Hyderabad White Gram 8,232 8,232 15.00 123,480 -
20
31-Jul-20 Nawabshah Dal Chana 1,000 1,000 15.00 15,000 -
31-Jul-20 LahoreS Dal Chana 1,489 1,489 15.00 22,335 -
31-Jul-20 Okara Dal Chana 2,954 (2,954) 15.00 - (44,310)
31-Jul-20 LahoreN Dal Chana 4,464 1,489 2,975 15.00 44,625 -
31-Jul-20 Loralai Dal Chana 3,800 3,800 15.00 57,000 -
31-Jul-20 Jhelum Dal Chana 4,879 (4,879) 15.00 - (73,185)
31-Jul-20 Sukkur Dal Chana 5,825 (5,825) 15.00 - (87,375)
31-Jul-20 RYKhan Dal Chana 5,878 (5,878) 15.00 - (88,170)
31-Jul-20 Multan Dal Chana 5,882 (5,882) 15.00 - (88,230)
31-Jul-20 Gujrat Dal Chana 5,905 5,905 15.00 88,575 -
31-Jul-20 RawalpindiN Dal Chana 6,335 6,335 15.00 95,025 -
31-Jul-20 Khushab Dal Chana 7,790 (7,790) 15.00 - (116,850)
31-Jul-20 Attock Dal Chana 8,000 (8,000) 15.00 - (120,000)
31-Jul-20 Sibbi Dal Chana 9,880 9,880 15.00 148,200 -
31-Jul-20 RawalpindiS Dal Chana 11,680 (11,680) 15.00 - (175,200)

102
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
31-Jul-20 Chakwal Dal Chana 12,879 12,879 15.00 193,185 -
31-Jul-20 Shikarpur Dal Chana 13,013 13,013 15.00 195,195 -
Muzaffargah
31-Jul-20 Dastak Ghee 3,000 (3,000) 20.00 - (60,000)
ar
31-Jul-20 Mansehra Dastak Ghee 10,000 (10,000) 20.00 - (200,000)
31-Jul-20 Swat Dastak Ghee 12,000 12,000 20.00 240,000 -
31-Jul-20 LahoreN Dastak Ghee 20,400 (20,400) 20.00 - (408,000)
31-Jul-20 Kohat Dastak Ghee 24,000 (24,000) 20.00 - (480,000)
31-Jul-20 Okara Dastak Ghee 30,000 (30,000) 20.00 - (600,000)
31-Jul-20 Sheikhupura Dastak Ghee 204,000 204,000 20.00 4,080,000 -
31-Jul-20 Mardan Dil Dil Banaspati 18,000 (18,000) 20.00 - (360,000)
31-Jul-20 Okara Dil Dil Banaspati 20,000 20,000 20.00 400,000 -
31-Jul-20 Gujranwala Dil Dil Banaspati 30,000 (30,000) 20.00 - (600,000)
31-Jul-20 LahoreN Dil Dil Banaspati 30,000 (30,000) 20.00 - (600,000)
31-Jul-20 Sheikhupura Dil Dil Banaspati 30,000 30,000 20.00 600,000 -
31-Jul-20 Dadu Handi Banaspati 12,000 (12,000) 20.00 - (240,000)
31-Jul-20 Shikarpur Handi Banaspati 12,100 12,100 20.00 242,000 -
31-Jul-20 Okara Hayat Banaspati 30,335 30,000 335 20.00 6,700 -
31-Jul-20 Quetta Hayat Banaspati 10,000 10,000 20.00 200,000 -
31-Jul-20 Mardan Hayat Banaspati 18,000 (18,000) 20.00 - (360,000)
31-Jul-20 Pishin Hayat Banaspati 18,000 (18,000) 20.00 - (360,000)
31-Jul-20 Khanewal Hayat Banaspati 20,000 20,000 20.00 400,000 -
31-Jul-20 Multan Hayat Banaspati 20,000 20,000 20.00 400,000 -
31-Jul-20 Sheikhupura Hayat Banaspati 30,335 (30,335) 20.00 - (606,700)
31-Jul-20 Mardan Maan Banaspati 9,000 (9,000) 20.00 - (180,000)
31-Jul-20 Badin Sugar 45,000 41,000 4,000 20.98 83,938 -
31-Jul-20 KarachiS Sugar 12,000 6,000 6,000 20.98 125,907 -

103
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
31-Jul-20 Shikarpur Sugar 6,008 (6,008) 20.98 - (126,075)
31-Jul-20 PeshawarS Sugar 8,993 8,993 20.98 188,714 -
31-Jul-20 PeshawarN Sugar 9,992 9,992 20.98 209,677 -
31-Jul-20 Islamabad Sugar 50,085 39,996 10,089 20.98 211,713 -
31-Jul-20 RawalpindiN Sugar 50,165 39,876 10,289 20.98 215,910 -
31-Jul-20 Sukkur Sugar 11,975 (11,975) 20.98 - (251,289)
31-Jul-20 RawalpindiS Sugar 50,195 37,980 12,215 20.98 256,326 -
31-Jul-20 Kohat Sugar 18,985 (18,985) 20.98 - (398,391)
31-Jul-20 LahoreN Sugar 19,948 (19,948) 20.98 - (418,599)
31-Jul-20 Attock Sugar 20,128 20,128 20.98 422,376 -
31-Jul-20 Gujranwala Sugar 30,002 (30,002) 20.98 - (629,577)
31-Jul-20 Larkana Sugar 30,038 30,038 20.98 630,333 -
31-Jul-20 Sheikhupura Sugar 49,950 49,950 20.98 1,048,176 -
31-Jul-20 MPKhas Sugar 60,000 120,000 (60,000) 20.98 - (1,259,070)
31-Jul-20 Jhelum Sugar 65,298 65,298 20.98 1,370,246 -
31-Jul-20 KarachiN Sugar 66,000 (66,000) 20.98 - (1,384,977)
31-Jul-20 Hyderabad Sugar 116,000 116,000 20.98 2,434,203 -
31-Jul-20 Chakwal Sugar 118,212 (118,212) 20.98 - (2,480,620)
Muzaffargah
31-Jul-20 Utility Sella Rice (Kainat 1121) 12,000 (12,000) 15.00 - (180,000)
ar
31-Jul-20 Khanewal Utility Sella Rice (Kainat 1121) 14,000 14,000 15.00 210,000 -
31-Jul-20 Mansehra Utility Sella Rice (Kainat 1121) 24,000 24,000 15.00 360,000 -
31-Jul-20 Swabi Utility Sella Rice (Kainat 1121) 32,400 (32,400) 15.00 - (486,000)
31-Jul-20 Sukkur Utility Super Basmati Rice 56 (56) 15.00 - (840)
31-Jul-20 Bahawalpur Utility Super Basmati Rice 4,000 4,000 15.00 60,000 -
31-Jul-20 Nawabshah Utility Super Basmati Rice 5,000 5,000 15.00 75,000 -

104
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
Muzaffargah
31-Jul-20 Utility Super Basmati Rice 6,000 (6,000) 15.00 - (90,000)
ar
31-Jul-20 Nushki Utility Super Basmati Rice 10,000 10,000 15.00 150,000 -
31-Jul-20 Multan Utility Super Basmati Rice 19,500 (19,500) 15.00 - (292,500)
31-Jul-20 Sukkur Utility Tota Basmati Rice 3,000 3,000 15.00 45,000 -
31-Jul-20 Nawabshah Utility Tota Basmati Rice 3,500 3,500 15.00 52,500 -
31-Jul-20 MPKhas Utility Tota Basmati Rice 6,000 (6,000) 15.00 - (90,000)
31-Jul-20 Dadu Utility Tota Basmati Rice 10,000 10,000 15.00 150,000 -
31-Jul-20 Multan Utility Tota Basmati Rice 10,000 10,000 15.00 150,000 -
31-Jul-20 Sibbi Utility Tota Basmati Rice 10,000 10,000 15.00 150,000 -
31-Jul-20 Kohat White Gram 2,000 2,000 15.00 30,000 -
31-Jul-20 Mansehra White Gram 2,480 2,480 15.00 37,200 -
31-Aug-
Gujranwala Dil Dil Banaspati 10,000 10,000 20.00 200,000 -
20
31-Aug-
PeshawarN Dil Dil Banaspati 18,000 18,000 20.00 360,000 -
20
31-Aug-
Khuzdar Handi Banaspati 20 20 20.00 400 -
20
31-Aug-
Larkana Sugar 11,975 12,000 (25) 10.95 - (274)
20
31-Aug-
LahoreS Sugar 8,000 (8,000) 10.95 - (87,569)
20
31-Aug-
Gujranwala Sugar 30,007 (30,007) 10.95 - (328,462)
20
31-Aug-
Vehari Sugar 35,964 35,964 10.95 393,668 -
20
31-Aug- Bahawalnag
Sugar 36,000 (36,000) 10.95 - (394,062)
20 er
31-Aug-
Sheikhupura Sugar 38,007 38,007 10.95 416,031 -
20
31-Aug-
TTSingh Sugar 50,034 (50,034) 10.95 - (547,680)
20
31-Aug-
Abbottabad Utility Sella Rice (Kainat 1121) 6,000 6,000 15.00 90,000 -
20

105
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
31-Aug-
Swabi Utility Sella Rice (Kainat 1121) 16,000 (16,000) 15.00 - (240,000)
20
31-Aug-
Multan Utility Super Basmati Rice 2,000 (2,000) 15.00 - (30,000)
20
31-Aug- Bahawalnag
Utility Super Basmati Rice 6,000 6,000 15.00 90,000 -
20 er
31-Aug-
Swabi Utility Super Basmati Rice 8,000 (8,000) 15.00 - (120,000)
20
31-Aug-
Badin Utility Tota Basmati Rice 5,000 5,000 12.81 64,038 -
20
31-Aug-
Larkana Utility Tota Basmati Rice 10,000 10,000 12.81 128,076 -
20
31-Aug-
KarachiS Utility Tota Basmati Rice 15,000 (15,000) 12.81 - (192,113)
20
30-Sep-
Gujranwala Barkat Banaspati 14,992 14,992 20.00 299,840 -
20
30-Sep-
PeshawarS Dal Chana 450 450 15.00 6,750 -
20
30-Sep-
Hyderabad Dal Masoor 400 (400) 20.00 - (8,000)
20
30-Sep-
Hyderabad Dastak Ghee 100 (100) 20.00 - (2,000)
20
30-Sep-
Gujrat Dastak Ghee 3,140 (3,140) 20.00 - (62,800)
20
30-Sep-
Gujrat Hayat Banaspati 860 (860) 20.00 - (17,200)
20
30-Sep-
Larkana Hayat Banaspati 10,000 10,000 20.00 200,000 -
20
30-Sep-
Quetta Hayat Banaspati 10,000 10,000 20.00 200,000 -
20
30-Sep-
Gujrat Maan Banaspati 2,040 (2,040) 20.00 - (40,800)
20
30-Sep-
Badin Maan Banaspati 7,008 (7,008) 20.00 - (140,160)
20
30-Sep-
Sukkur Sugar 320 320 21.01 6,722 -
20
30-Sep-
Dadu Sugar 24,000 (24,000) 21.01 - (504,126)
20
30-Sep-
Shikarpur Sugar 24,345 (24,345) 21.01 - (511,373)
20

106
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Prevailing
Under
average Over claim
SCN issued during the SDN issued during Net impact of claim of
Claim Brand/ Subsidy of Subsidy
Region month the month quantity subsidy
Month type of item Rs. Per Rs.
(A) (B) (C=A-B) Rs.
Unit (C*D)
(C*D)
(D)
30-Sep-
Larkana Sugar 48,025 48,025 21.01 1,008,777 -
20
30-Sep-
Hyderabad Utility Sella Rice (Kainat 1121) 2,000 2,000 15.00 30,000 -
20
30-Sep-
MPKhas Utility Sella Rice (Kainat 1121) 2,000 2,000 15.00 30,000 -
20
30-Sep-
Mansehra Utility Sella Rice (Kainat 1121) 10,000 10,000 15.00 150,000 -
20
30-Sep-
Haripur Utility Super Basmati Rice 15,000 15,000 15.00 225,000 -
20
30-Sep-
KSUllah Utility Tota Basmati Rice 7,160 7,160 - 12.00 - -
20
30-Sep-
Swabi White Gram 4,728 (4,728) 15.00 - (70,920)
20
30-Sep-
LahoreS White Gram 5,948 5,948 15.00 89,220 -
20
30-Sep-
LahoreN White Gram 5,963 5,963 15.00 89,445 -
20
120,150,46 (81,788,173
Total 8,909,709 6,980,842 1,928,866
6 )

107
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Annexure E
Quantity Over/
Quantity
Closing Opening of (Under) Over claim Under claim
of closing Subsidy
Brand/ Stock for stock for opening Stock of subsidy of subsidy
Region stock in Rs. Per KG
type of item the the Month stock in brought Rs. Rs.
KG (D)
Month of of KG forward (C*D) (C*D)
(A)
(B) (C=B-A)
Abbottabad Dil Dil Banaspati Mar-20 Apr-20 15,367 14 (15,353) 29 - (447,480)
Abbottabad Manpasand Ghee Mar-20 Apr-20 10,387 10,347 (40) 20 - (800)
Abbottabad Handi Banaspati Apr-20 May-20 462 3,977 3,515 20 70,300 -
Attock Utility Tota Basmati Rice Mar-20 Apr-20 22,720 22,820 100 12 1,200 -
Badin Malta Banaspati Jan-20 Feb-20 8,925 14,115 5,190 50 259,500 -
Chitral Dal Masoor Feb-20 Mar-20 4,699 4,859 160 10 1,600 -
Chitral Sugar Mar-20 Apr-20 63,956 63,955 (1) 22 - (22)
Chitral Utility Sella Rice (Kainat 1121) Mar-20 Apr-20 12,162 12,106 (56) 10 - (560)
Chitral Utility Super Basmati Rice Mar-20 Apr-20 4,479 4,499 20 10 200 -
Chitral Utility Tota Basmati Rice Mar-20 Apr-20 3,125 3,095 (30) 12 - (360)
Dadu Malta Banaspati Jan-20 Feb-20 49,930 49,515 (415) 50 - (20,750)
DIKhan Dal Chana Feb-20 Mar-20 13,873 29,477 15,604 15 234,060 -
DIKhan Utility Tota Basmati Rice Mar-20 Apr-20 4,209 4,409 200 12 2,400 -
Dir Utility Super Basmati Rice Apr-20 May-20 4 6,633 6,629 11 75,071 -
Dir Utility Tota Basmati Rice Apr-20 May-20 1,305 1,305 13 16,339 -
Faisalabad Dal Masoor Feb-20 Mar-20 11 10,589 10,578 10 105,780 -
Ghotki Malta Banaspati Jan-20 Feb-20 4 4 50 200 -
Ghotki Malta Banaspati Feb-20 Mar-20 4 - (4) 50 - (200)
Ghotki Dal Masoor Apr-20 May-20 146 146 42 6,108 -
Ghotki Dastak Ghee Apr-20 May-20 7,183 32,830 25,647 20 512,940 -
Ghotki Barkat Banaspati May-20 Jun-20 5,889 10,675 4,786 20 95,720 -
Ghotki Dastak Ghee May-20 Jun-20 4,786 - (4,786) 20 - (95,720)
Ghotki Dal Masoor Aug-20 Sep-20 5,176 8,088 2,912 20 58,240 -
Ghotki White Gram Aug-20 Sep-20 9,334 6,422 (2,912) 15 - (43,680)
Gujrat Dal Masoor Feb-20 Mar-20 8,400 8,400 10 84,000 -

108
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Quantity Over/
Quantity
Closing Opening of (Under) Over claim Under claim
of closing Subsidy
Brand/ Stock for stock for opening Stock of subsidy of subsidy
Region stock in Rs. Per KG
type of item the the Month stock in brought Rs. Rs.
KG (D)
Month of of KG forward (C*D) (C*D)
(A)
(B) (C=B-A)
Gujrat Sugar Mar-20 Apr-20 10,702 11,702 1,000 22 21,765 -
Gujrat White Gram Mar-20 Apr-20 3,600 3,400 (200) 10 - (2,000)
Islamabad Handi Banaspati Feb-20 Mar-20 2,069 2,093 24 30 720 -
Islamabad Nayab Banaspati Apr-20 May-20 4,631 4,660 29 20 580 -
Islamabad Utility Sella Rice (Kainat 1121) Apr-20 May-20 17,061 30,236 13,175 12 158,452 -
Islamabad Utility Super Basmati Rice Apr-20 May-20 52,561 147,719 95,158 11 1,077,625 -
Islamabad Utility Tota Basmati Rice Apr-20 May-20 44,042 136,725 92,683 13 1,160,418 -
Jhang Sugar Mar-20 Apr-20 54,210 54,213 3 22 65 -
Jhang Utility Sella Rice (Kainat 1121) Mar-20 Apr-20 11,672 10,690 (982) 10 - (9,820)
Jhelum Nayab Banaspati Mar-20 Apr-20 5,145 5,145 29 150,857 -
Jhelum Utility Sella Rice (Kainat 1121) Apr-20 May-20 8,898 15,236 6,338 12 76,226 -
Jhelum Utility Super Basmati Rice Apr-20 May-20 30,832 54,234 23,402 11 265,018 -
Jhelum Utility Tota Basmati Rice Apr-20 May-20 19,166 41,973 22,807 13 285,550 -
KarachiN Malta Banaspati Jan-20 Feb-20 41,062 48,605 7,543 50 377,150 -
KarachiN Utility Super Basmati Rice Apr-20 May-20 56,183 55,433 (750) 11 - (8,493)
KarachiS Dastak Ghee Jan-20 Feb-20 29,806 81,142 51,336 30 1,540,080 -
KarachiS Malta Banaspati Jan-20 Feb-20 42,561 39,500 (3,061) 50 - (153,050)
Khanewal Barkat Banaspati Feb-20 Mar-20 61 61 27 1,621 -
Khanewal Handi Banaspati Feb-20 Mar-20 46 46 30 1,380 -
Khanewal Nayab Banaspati Feb-20 Mar-20 23 23 30 690 -
Khushab Barkat Banaspati Feb-20 Mar-20 12 12 27 319 -
Khuzdar Dal Masoor Feb-20 Mar-20 1,830 1,880 50 10 500 -
Khuzdar Nayab Banaspati Mar-20 Apr-20 8,640 8,610 (30) 29 - (880)
Khuzdar Handi Banaspati Aug-20 Sep-20 20 170 150 20 3,000 -
Khuzdar Nayab Banaspati Aug-20 Sep-20 150 - (150) 20 - (3,000)
KSUllah Barkat Banaspati Feb-20 Mar-20 25 25 27 664 -

109
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Quantity Over/
Quantity
Closing Opening of (Under) Over claim Under claim
of closing Subsidy
Brand/ Stock for stock for opening Stock of subsidy of subsidy
Region stock in Rs. Per KG
type of item the the Month stock in brought Rs. Rs.
KG (D)
Month of of KG forward (C*D) (C*D)
(A)
(B) (C=B-A)
KSUllah Utility Super Basmati Rice Feb-20 Mar-20 4 - (4) 10 - (40)
KSUllah Barkat Banaspati Mar-20 Apr-20 25 - (25) 20 - (500)
KSUllah Dastak Ghee Jul-20 Aug-20 4 4 20 80 -
KSUllah Dastak Ghee Aug-20 Sep-20 4 - (4) 20 - (80)
LahoreN Dal Chana Mar-20 Apr-20 4,421 4,424 3 15 45 -
LahoreN Sugar May-20 Jun-20 56,576 56,577 1 16 16 -
Larkana Malta Banaspati Jan-20 Feb-20 5,900 5,900 50 295,000 -
Layyah Barkat Banaspati Mar-20 Apr-20 8,830 6,910 (1,920) 20 - (38,400)
Layyah Dastak Ghee Mar-20 Apr-20 10,240 - (10,240) 30 - (306,068)
Layyah Hayat Banaspati Mar-20 Apr-20 91,625 101,865 10,240 23 231,450 -
Layyah Marva Ghee Mar-20 Apr-20 4,340 4,320 (20) 20 - (400)
Layyah Dastak Ghee Apr-20 May-20 2,100 2,100 20 42,000 -
Layyah Hayat Banaspati Apr-20 May-20 151,195 154,095 2,900 20 58,000 -
Layyah Maan Banaspati Apr-20 May-20 90 57,941 57,851 20 1,178,871 -
Layyah Utility Sella Rice (Kainat 1121) Apr-20 May-20 4,355 5,310 955 12 11,486 -
Layyah Utility Super Basmati Rice Apr-20 May-20 14,412 14,391 (21) 11 - (238)
Loralai Dal Chana Jan-20 Feb-20 610 305 (305) 20 - (6,100)
Loralai Dal Masoor Apr-20 May-20 155 - (155) 42 - (6,485)
Loralai Utility Sella Rice (Kainat 1121) Apr-20 May-20 1,770 2,857 1,087 12 13,073 -
Loralai Utility Tota Basmati Rice Apr-20 May-20 3,981 5,406 1,425 13 17,841 -
MBDin Dal Masoor Apr-20 May-20 1,877 1,877 42 78,531 -
MPKhas Dal Chana Jan-20 Feb-20 4,941 4,158 (783) 20 - (15,660)
MPKhas Malta Banaspati Jan-20 Feb-20 2,076 1,663 (413) 50 - (20,650)
MPKhas Andaz Jul-20 Aug-20 335 335 20 6,700 -
MPKhas Dal Chana Jul-20 Aug-20 9,657 9,657 15 144,855 -
MPKhas Dal Masoor Jul-20 Aug-20 9,307 9,307 20 186,140 -

110
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Quantity Over/
Quantity
Closing Opening of (Under) Over claim Under claim
of closing Subsidy
Brand/ Stock for stock for opening Stock of subsidy of subsidy
Region stock in Rs. Per KG
type of item the the Month stock in brought Rs. Rs.
KG (D)
Month of of KG forward (C*D) (C*D)
(A)
(B) (C=B-A)
MPKhas Dastak Ghee Jul-20 Aug-20 9,898 10,498 600 20 12,000 -
MPKhas Dil Dil Banaspati Jul-20 Aug-20 8,602 9,675 1,073 20 21,460 -
MPKhas Handi Banaspati Jul-20 Aug-20 3,324 3,324 20 66,480 -
MPKhas Hayat Banaspati Jul-20 Aug-20 9,909 12,009 2,100 20 42,000 -
MPKhas Moulvi Ghee Jul-20 Aug-20 879 879 20 17,580 -
MPKhas Nayab Banaspati Jul-20 Aug-20 821 821 20 16,420 -
MPKhas White Gram Jul-20 Aug-20 17,904 17,904 15 268,560 -
Multan Malta Banaspati Jan-20 Feb-20 590 590 50 29,500 -
Multan Dal Chana Apr-20 May-20 25,704 27,510 1,806 15 27,090 -
Nawabshah Malta Banaspati Jan-20 Feb-20 28,001 21,705 (6,296) 50 - (314,800)
Nawabshah Utility Sella Rice (Kainat 1121) Jan-20 Feb-20 4,615 4,615 10 46,150 -
Nawabshah Utility Super Basmati Rice Jan-20 Feb-20 4,615 - (4,615) 10 - (46,150)
Nushki Utility Tota Basmati Rice Mar-20 Apr-20 7,660 7,731 71 12 852 -
Pishin Dal Masoor Aug-20 Sep-20 8,920 9,080 160 20 3,200 -
Pishin White Gram Aug-20 Sep-20 4,796 5,146 350 15 5,250 -
Quetta Dal Masoor Feb-20 Mar-20 7,874 7,874 10 78,740 -
Quetta Dastak Ghee Feb-20 Mar-20 8,411 8,411 30 252,330 -
RawalpindiN Dal Chana Feb-20 Mar-20 42,305 56,145 13,840 15 207,600 -
RawalpindiS Barkat Banaspati Apr-20 May-20 159 159 20 3,180 -
RawalpindiS Dil Dil Banaspati Apr-20 May-20 12,070 11,829 (241) 20 - (4,820)
RawalpindiS Handi Banaspati Apr-20 May-20 14,599 14,580 (19) 20 - (380)
RawalpindiS Hayat Banaspati Apr-20 May-20 124,584 124,385 (199) 20 - (3,980)
RawalpindiS Maan Banaspati Apr-20 May-20 61,586 61,569 (17) 20 - (346)
RawalpindiS Manpasand Ghee Apr-20 May-20 116,086 115,998 (88) 20 - (1,760)
RawalpindiS Utility Super Basmati Rice Apr-20 May-20 81,260 95,259 13,999 11 158,533 -
RawalpindiS Utility Tota Basmati Rice Apr-20 May-20 162,968 170,684 7,716 13 96,607 -

111
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Quantity Over/
Quantity
Closing Opening of (Under) Over claim Under claim
of closing Subsidy
Brand/ Stock for stock for opening Stock of subsidy of subsidy
Region stock in Rs. Per KG
type of item the the Month stock in brought Rs. Rs.
KG (D)
Month of of KG forward (C*D) (C*D)
(A)
(B) (C=B-A)
RawalpindiS Handi Banaspati Jun-20 Jul-20 231 250 19 20 380 -
RYKhan Malta Banaspati Jan-20 Feb-20 10,008 10,008 50 500,400 -
Shikarpur Barkat Banaspati Feb-20 Mar-20 12,140 12,140 27 322,587 -
Sibbi Utility Sella Rice (Kainat 1121) Aug-20 Sep-20 13,373 12,873 (500) 15 - (7,500)
Sukkur Malta Banaspati Jan-20 Feb-20 24,528 31,196 6,668 50 333,400 -
Sukkur Utility Sella Rice (Kainat 1121) Apr-20 May-20 6,000 9,832 3,832 12 46,086 -
Swabi Utility Tota Basmati Rice Feb-20 Mar-20 4,065 4,625 560 12 6,720 -
Swabi Handi Banaspati May-20 Jun-20 800 800 20 16,000 -
Swabi Nayab Banaspati May-20 Jun-20 800 - (800) 20 - (16,000)
Vehari Hayat Banaspati Jan-20 Feb-20 37,530 38,044 514 30 15,420 -
Vehari Malta Banaspati Jan-20 Feb-20 658 - (658) 50 - (32,900)
Vehari Utility Sella Rice (Kainat 1121) Jan-20 Feb-20 11,210 11,369 159 10 1,590 -
Vehari Barkat Banaspati Feb-20 Mar-20 30,000 30,000 27 797,168 -
Muzaffargahar Malta Banaspati Jan-20 Feb-20 3,386 2 (3,384) 50 - (169,200)
Total 12,303,709 (1,779,272)

112
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Annexure F
As per Summary for ECC of the Cabinet for Ramzan As per Ramzan (17 April - 31st May)
Recalculation
Relief Package 2020 Audited Claim
May Subsidy
Ramzan
average Quantity per unit
ECC Total quantity Sold May actual Difference
Type of item/ ECC Subsidy subsidy Sold Rs. Recalculated
Summary allocated as per subsidy as with ECC
Brand Summary Per KG per unit KGs (J=C or F subsidy
(Metric subsidy as per audited per claim Summary
KGs Rs. as per (I=B or E which- Rs.
Kons) ECC (Rs.) claim (Rs.) Rs.
(B=A*1000) (C) claim whichever ever is (K=I*J)
(A) (D=B*C) KGs (G=E*F) (L=G-K)
Rs. is lower) lower)
(E)
(F)
Atta 70,000 70,000,000 4 280,000,000 40,221,253 2.05 82,526,093 40,221,253 2 82,526,093 -
Sugar 50,000 50,000,000 15 750,000,000 72,646,247 22 1,563,523,975 50,000,000 15 750,000,000 813,523,975
Ghee:
Andaz 30 41,837 20.00 836,740 41,837 20 836,740 -
Atif Premium
30 - 168,772 20.00 3,375,440 168,772 20 3,375,440 -
Ghee
Barkat
30 - 1,293,350 20.00 25,867,000 1,293,350 20 25,867,000 -
Banaspati
Dil Dil
30 - 753,339 20.00 15,066,780 753,339 20 15,066,780 -
Banaspati
Maan
30 - 4,091,674 20.38 83,378,950 4,091,674 20 83,378,950 -
Banaspati
Malta
30 - 127,695 30.00 3,830,850 127,695 30 3,830,850 -
Banaspati
Manpasand
30 - 2,443,527 20.00 48,870,540 2,443,527 20 48,870,540 -
Ghee
Marva Ghee 30 - 3,455 20.00 69,100 3,455 20 69,100 -

Hafeez Ghee 30 - 194,898 20.00 3,897,960 194,898 20 3,897,960 -

Handi
30 - 1,107,574 20.00 22,151,480 1,107,574 20 22,151,480 -
Banaspati
Hayat
30 - 6,531,307 20.00 130,626,140 6,531,307 20 130,626,140 -
Banaspati
Jumeriah
30 - 10,000 20.00 200,000 10,000 20 200,000 -
Banaspati
Kushboo
30 - 102,170 20.00 2,043,400 102,170 20 2,043,400 -
Banaspati
Moulvi Ghee 30 - 28,577 20.00 571,540 28,577 20 571,540 -
Nayab
30 - 679,263 20.00 13,585,260 679,263 20 13,585,260 -
Banaspati
Platinum
30 - 224,926 20.00 4,498,520 224,926 20 4,498,520 -
Ghee

113
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

As per Summary for ECC of the Cabinet for Ramzan As per Ramzan (17 April - 31st May)
Recalculation
Relief Package 2020 Audited Claim
May Subsidy
Ramzan
average Quantity per unit
ECC Total quantity Sold May actual Difference
Type of item/ ECC Subsidy subsidy Sold Rs. Recalculated
Summary allocated as per subsidy as with ECC
Brand Summary Per KG per unit KGs (J=C or F subsidy
(Metric subsidy as per audited per claim Summary
KGs Rs. as per (I=B or E which- Rs.
Kons) ECC (Rs.) claim (Rs.) Rs.
(B=A*1000) (C) claim whichever ever is (K=I*J)
(A) (D=B*C) KGs (G=E*F) (L=G-K)
Rs. is lower) lower)
(E)
(F)
Dastak Ghee 30 - 4,751,422 20.00 95,028,440 4,751,422 20 95,028,440 -

Ghee Total 30,000 30,000,000 30 900,000,000 22,553,786 453,898,140 22,553,786 453,898,140

Oil:

Platinum Oil 30 2,692 20.00 53,840 2,692 20 53,840 -

Handi Oil 30 - 961,001 20.00 19,220,020 961,001 20 19,220,020 -

Hayat Oil 30 - 3,087,955 20.00 61,759,100 3,087,955 20 61,759,100 -

Kushboo Oil 30 - 32,262 20.00 645,240 32,262 20 645,240 -

Atif Premium
30 - 41,786 20.00 835,720 41,786 20 835,720 -
Oil
Destak Oil 30 - 798,844 20.00 15,976,880 798,844 20 15,976,880 -

Maan Oil 30 - 1,617,951 20.00 32,359,020 1,617,951 20 32,359,020 -

Nayyab Oil 30 408,681 20.00 8,173,620 408,681 20 8,173,620 -

Mezan Oil 30 837,380 20.00 16,747,600 837,380 20 16,747,600 -

Mujahid Oil 30 30,581 20.00 611,620 30,581 20 611,620 -

Barkat Oil 30 152,984 20.00 3,059,680 152,984 20 3,059,680 -

Oil Total 15,000 15,000,000 30 450,000,000 7,972,117 159,442,340 7,972,117 159,442,340

Pulses:

Dal Chana 2,000 2,000,000 10 20,000,000 1,666,683 15.00 25,000,245 1,666,683 10 16,666,830 8,333,415

Dal Mash 500 500,000 10 5,000,000 205,617 10.00 2,056,170 205,617 10 2,056,170 -

Dal Masoor 500 500,000 10 5,000,000 586,939 41.84 24,556,555 500,000 10 5,000,000 19,556,555
Dall Mong
1,000 1,000,000 15 15,000,000 -
Washed
White Gram 2,000 2,000,000 15 30,000,000 1,947,566 15.13 29,472,962 1,947,566 15 29,213,490 259,472

114
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

As per Summary for ECC of the Cabinet for Ramzan As per Ramzan (17 April - 31st May)
Recalculation
Relief Package 2020 Audited Claim
May Subsidy
Ramzan
average Quantity per unit
ECC Total quantity Sold May actual Difference
Type of item/ ECC Subsidy subsidy Sold Rs. Recalculated
Summary allocated as per subsidy as with ECC
Brand Summary Per KG per unit KGs (J=C or F subsidy
(Metric subsidy as per audited per claim Summary
KGs Rs. as per (I=B or E which- Rs.
Kons) ECC (Rs.) claim (Rs.) Rs.
(B=A*1000) (C) claim whichever ever is (K=I*J)
(A) (D=B*C) KGs (G=E*F) (L=G-K)
Rs. is lower) lower)
(E)
(F)
Utility Super
1,800 1,800,000 15 27,000,000 2,708,256 11 30,669,880 1,800,000 11 20,384,256 10,285,624
Basmati Rice
Utility Sella
Rice (Kainat 600 600,000 15 9,000,000 1,076,604 12 12,948,045 600,000 12 7,216,049 5,731,996
1121)
Utility Tota
2,000 2,000,000 10 20,000,000 2,497,077 13 31,264,131 2,000,000 10 20,000,000 11,264,131
Basmati Rice
Baisan Chakki 2,500 2,500,000 20 50,000,000 1,324,213 20 26,484,260 1,324,213 20 26,484,260 -
Dates
750 750,000 20 15,000,000 362,815 20 7,256,290 362,815 20 7,256,290 -
(Khajoor)
Squashes &
Syrups (800 800,000 800,000 25 20,000,000 2,107,890 20 42,157,800 800,000 20 16,000,000 26,157,800
ml) Bottle
Squashes &
Syrups (1500 3,000,000 3,000,000 20 60,000,000 580,797 25 14,519,925 580,797 20 11,615,940 2,903,985
ml) Bottle
Black Tea 2,600 2,600,000 50 130,000,000 2,088,054 48 100,944,013 2,088,054 48 100,944,013 -
Milk (UHT) 3,200 3,200,000 20 64,000,000 3,356,410 20 65,476,494 3,200,000 20 62,425,258 3,051,236
Spices 500 500,000 10% 50,000,000 205,848 80 16,387,307 16,219,876 167,431
137,822,90
Grand Total 3,984,950 188,750,000 2,900,000,000 194,634,074 2,688,584,625 1,787,349,004 901,235,621
1

115
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Annexure G
Quantity in Month in which highest
Regions with high recorded Quantity sold in KGs in Average Sale per
Type of item/ Brand KGs sold in sale is recorded in that
sale that month month KGs
that region region

Atta DGKhan 53,207,220 Jun 38,915,780 6,650,903

Atta DGKhan 53,207,220 Jul 11,964,800 6,650,903
Atta Muzaffargahar 15,268,520 Jul 7,554,800 1,908,565
Atta Islamabad 11,227,240 May 2,402,160 1,403,405
Sugar Islamabad 8,225,934 May 2,383,318 913,993
Sugar LahoreN 7,183,011 May 2,083,004 798,112
Sugar LahoreS 6,982,800 May 2,386,738 775,867
Hayat Banaspati DGKhan 1,366,251 May 576,739 151,806
Dastak Ghee LahoreS 922,867 May 280,595 102,541
Hayat Banaspati Multan 859,680 May 273,870 95,520
Maan Banaspati LahoreN 819,471 Jun 232,199 102,434
Hayat Banaspati LahoreN 782,960 Feb 175,280 86,996
Dastak Ghee Sahiwal 756,648 May 155,493 84,072
Dastak Ghee LahoreN 739,470 May 135,150 82,163
Dil Dil Banaspati LahoreS 739,057 Jun 160,515 92,382
Maan Banaspati Jhang 663,290 Mar 119,820 73,699
Maan Banaspati Mansehra 658,371 May 145,000 73,152
Utility Tota Basmati Rice Mansehra 639,382 May 238,563 71,042
Utility Super Basmati Rice Islamabad 569,089 May 196,238 63,232
Manpasand Ghee Chakwal 554,063 May 156,170 61,563
Manpasand Ghee Islamabad 546,168 May 113,849 60,685
Barkat Banaspati LahoreS 540,000 Jul 161,856 77,143
Manpasand Ghee Jhelum 531,043 May 132,569 59,005
Utility Tota Basmati Rice Islamabad 487,591 May 149,811 54,177
Barkat Banaspati Faisalabad 453,966 May 118,342 56,746
Barkat Banaspati Multan 419,989 May 114,756 59,998

116
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Dil Dil Banaspati LahoreN 360,146 Jul 77,274 45,018

Utility Tota Basmati Rice Abbottabad 358,252 May 109,255 39,806
White Gram Islamabad 357,877 May 114,792 39,764
Utility Super Basmati Rice LahoreS 327,951 May 113,147 36,439
Utility Super Basmati Rice Haripur 321,502 Mar 175,330 35,722
White Gram Mansehra 297,139 May 83,023 33,015
Dal Chana Islamabad 288,057 May 103,596 32,006
Dal Chana LahoreS 269,678 May 84,014 29,964
White Gram LahoreS 247,698 May 81,218 27,522
Handi Banaspati RawalpindiN 242,483 Mar 110,235 34,640
Dal Chana LahoreN 223,604 May 66,581 24,845
Dil Dil Banaspati Sheikhupura 205,532 Jul 70,580 25,692
Utility Sella Rice (Kainat 1121) PeshawarS 203,017 May 85,064 22,557
Handi Banaspati Quetta 191,332 May 64,993 38,266
Utility Sella Rice (Kainat 1121) Gilgit 186,127 May 62,359 20,681
Handi Banaspati Islamabad 183,833 Mar 59,693 36,767
Malta Banaspati KarachiN 173,195 Jan 69,689 19,244
Utility Sella Rice (Kainat 1121) PeshawarN 163,382 May 58,944 18,154
Malta Banaspati Hyderabad 160,791 Jan 56,799 17,866
Atif Premium Ghee LahoreS 160,000 Sep 100,000 26,667
Malta Banaspati KarachiS 140,038 Jan 48,370 15,560
Nayab Banaspati RYKhan 128,524 May 50,323 18,361
Nayab Banaspati KarachiN 108,880 Mar 27,669 13,610
Nayab Banaspati Quetta 104,776 May 60,879 26,194
Hafeez Ghee Bahawalnager 100,000 May 37,617 12,500
Atif Premium Ghee Faisalabad 97,049 Sep 69,119 16,175
Dal Masoor Multan 94,314 Apr 38,618 11,789
Hafeez Ghee DGKhan 90,000 May 50,953 15,000
Platinum Ghee Muzaffargahar 89,962 May 36,210 17,992
Platinum Ghee Khanewal 89,696 May 35,463 17,939

117
Utility Stores Corporation of Pakistan Third party validation, scrutiny, financial and operational audits of government grant to Utility Stores Corporation (USC)

Dal Masoor Islamabad 87,706 May 29,978 10,963

Hafeez Ghee Multan 80,000 Feb 37,597 10,000
Dal Masoor Mansehra 69,806 May 21,027 8,726
Kushboo Banaspati PeshawarN 60,000 May 35,565 12,000
Kushboo Banaspati Mardan 50,000 May 13,216 7,143
Kushboo Banaspati PeshawarS 49,967 Apr 20,751 8,328
Platinum Ghee Multan 45,000 May 23,714 9,000
Andaz MPKhas 25,297 May 25,000 8,432
Moulvi Ghee MPKhas 16,692 May 15,900 5,564
Andaz Gawadar 10,000 May 5,240 2,000
Marva Ghee Khanewal 10,000 Mar 7,150 2,000
Marva Ghee Khanewal 10,000 Mar 7,150 2,000
Marva Ghee Khanewal 10,000 Mar 7,150 2,000
Andaz Badin 9,975 May 9,660 3,325
Moulvi Ghee Badin 9,900 May 8,257 3,300
Moulvi Ghee KarachiN 4,990 May 4,420 1,248

118