Lok Sabha Question No. 3433 (UNSTARRED), answered on 2020-03-13
Subject: Enterprise Resource Planning
Ministry: SCIENCE AND TECHNOLOGY
Asked by: Raja Amareshwara Naik, Sukanta Majumdar, Vinod Kumar Sonkar, Jayanta Kumar Roy, Sangeeta Kumari Singh Deo, Bhola Singh

## GOVERNMENT OF INDIA MINISTRY OF SCIENCE AND TECHNOLOGY DEPARTMENT OF SCIENTIFIC AND INDUSTRIAL RESEARCH

## LOK SABHA

UNSTARRED QUESTION NO. 3433

(TO BE ANSWERED ON 13.03.2020)

## ENTERPRISE RESOURCE PLANNING

3433.   SHRI RAJA AMARESHWARA NAIK:

DR. SUKANTA MAJUMDAR:

SHRI VINOD KUMAR SONKAR:

DR. JAYANTA KUMAR ROY:

SHRIMATI SANGEETA KUMARI SINGH DEO:

SHRI BHOLA SINGH:

Will  the  Minister  of  SCIENCE  AND  TECHNOLOGY विज्ञान एिं प्रौद्योविकी मंत्री be pleased to state:

- (a) whether  Council  of  Scientific  and  Industrial  Research  (CSIR)  has developed Enterprise Resource Planning (ERP) and if so, the details thereof along with the expenditure incurred on ERP since inception and project cost overrun;
- (b) whether ERP could not be implemented all across CSIR Labs even after nine years of development and if so, the reasons therefor;
- (c) the  details  of  actions  initiated  against  persons  responsible  for delayed implementation of ERP;
- (d) whether CAG certified CSIR Annual accounts 2012-13 with negative disclaimers  and  2013-14  with  negative  certification  and  if  so,  the details thereof;
- (e) the  details  of  the  students  whose  fellowship  is  pending  for  more than one month under DBT; and
- (f) the  status  of  the  accounting  software  developed  by  the  in-house team  and  the  steps  being  taken  by  the  Government  to  strengthen the accounting system in CSIR?

## ANSWER

MINISTER OF HEALTH AND FAMILY WELFARE; MINISTER OF SCIENCE AND TECHNOLOGY; AND MINISTER OF EARTH SCIENCES (DR. HARSH VARDHAN)

- (a) Yes Sir.
- (i) During  2009  CSIR  proposed  to  computerize  all  processes adopted in  Administration,  Stores  &  Purchase,  Finance,  R&D Projects, Office File System, etc. followed in CSIR HQ and in Labs,  in  accordance  with  the  Government  policy  in  bringing transparency and electronic governance co-terminus with CVC guidelines.
- (ii) The  implementation  of  above  idea  was  processed  as  per requirements and the plan funds under the National Laboratory Scheme  were  used  for  making  the  above  mentioned  facility functional.
- (iii) The  ERP  solution  is  a  bespoke  application  designed  and developed,  adapted  to  CSIR  needs  with  a  high  degree  of customization  and  involvement  of  the  domain  experts  and users.
- (iv) One CSIR project was undertaken to transform  the enterprise and  transition  to  electronic  modes  of  carrying  out  various operations and transactions minimizing paper work. Electronic workplaces and desktops enable users to perform their day to day tasks and carrying out various transactions in their  laboratories.  The  system  enables  enhanced  levels  of transparency, accountability and quality-of-service across the enterprise.

Expenditure  incurred  on  development  of  Software Portal/ Applications:

Development cost of the Software Modules  :  Rs. 12.51 Crores including Software Support cost for Four years There is no cost overrun.

- (b) Currently, the application is being used in all the CSIR Laboratories in a progressive manner since it was launched in 2012.
- (c) The  software  was  implemented  in  all  the  labs  in  a  progressive manner, immediately after development, testing and acceptance and was launched in 2012. As such there is no delay in implementation.
- (d) Information is at Annexure-I.
- (e) The fellowship payment to CSIR research fellows is directly credited into the individual beneficiary account by the CSIR using a software developed by software team of CSIR-National Chemical Laboratory

(NCL),  Pune.  The  monthly  fellowship  payment  to  CSIR  research scholars  is  linked  with  timely  submission  of  fellowship  claim  bill along  with  the  attendance  by  the  host  institutes  of  the  CSIR research fellows. Regular instructions are issued by CSIR to the host institutes to submit the monthly fellowship claim bills latest by 10th day of every month in respect of the preceding month by email. On receipt  of  the  monthly  fellowship  claim  bills/  extension  tenure /progress report, etc. from the host institutes, CSIR process the bills for  release  of  stipend  to  the  individual  beneficiary.  Further,  as  per fellowship rules, no payment can be released to the research fellows without  receiving  the  attendance  and  the  claim  bill  from  the  host institute. There is a delay in case of about 5% cases in the absence of claim bills from host institutes/extension tenure papers/ progress reports, etc.

(f) CSIR is presently using an in house developed accounting software i.e.  IMPACT.  CSIR  is  in  the  process  of  implementing  ERP  for strengthening the accounting system.

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## Annexure-I

Information  with  regard  to  para  (d)  of  the  Lok  Sabha  Unstarred  Q. No.3433 for answer on 13.03.2020.

Extract /concluding comments in the Audit Report (SAR 2012-13) in respect of CSIR are reproduced as under:

- '(v) Based on our observation in preceding paragraphs, we report that Balance sheet and Income & Expenditure accounts/Receipt  and  payment  accounts  dealt  with  by  this report are in agreement with the books of accounts, except for the areas stated in this report.
- (vi)      We are unable to form an opinion about correctness of the valuation of the following line items as reported in the Financial Statements:
- (a) Capital Fund :

Other  adjustment  Entries  of  Rs.  30418.72  lakh  in  other adjustment-LC (refer to Para 1.1)

- (b) Current Assets :
-  Deposits  in  margin  money  difference  of  Rs  3922.26 lakh (refer to Para 2.2.1(a); and
-  Saving Bank Account with difference of Rs. 2849.25 lakh (refer to Para 2.2.1(b)
- (c) Prior period adjustments :

Adjustment made for prior period items for Rs. 345.59 lakh (refer to Para 3)

due to insufficient information, absence of records, inadequate explanations and discrepancies in the independent third party confirmation.

- (i) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements read  together  with  the  Accounting  Policies  and  Notes  on Accounts,  and  subject  to  significant  matters  stated  above [specifically in para (ii) above] and other matters mentioned in Annexure  to  this  Audit  Report,  gives  a  true  and  fair  view  in conformity with the accounting principles generally accepted in India.
- (a)  In so far as it relates to the Balance Sheet and the state of affairs of the Council of Scientific and Industrial Research as at 31 March 2013.
- (b)  In so far as it relates to Income and Expenditure account of the deficit for the year ended on that day'.

## Extract /concluding comments in the Audit Report (SAR 2013-14) in r/o CSIR are reproduced as under:

- '(v)   Based  to  our  observations  in  the  preceding  paragraphs,  we  report that the Balance Sheet and Income & Expenditure accounts/ Receipt & Payment account dealt with by this report are in agreement with the books of accounts, except for the areas stated in this report.
- (vi)     In our opinion and to the best of our information and according to the explanations given to us, because of the effects of the observations discussed in the preceeding paragraph and other matters  mentioned  in  Annexure  to  this  Audit  Report,  the financial  statements  read  together  with  accounting  policies and  Notes  on  accounts  do  not  give  a  true  and  fair  view  in conformity with the accounting principles generally accepted in India.
- (a) In so far as it relates to the Balance Sheet and the state of affairs of the Council of Scientific and Industrial Research as at 31 March 2014.
- (b) In so far as it relates to Income and Expenditure account of the deficit for the year ended on that day.

Remedial Actions Taken by CSIR :

CSIR  has  taken  various  corrective  steps  with  respect  to  Audit observations,  like  issuance  of  necessary  instructions  to  the  labs., revision in formats of records, constitution of committee of experts and appropriate training of officers of Finance & Accounts Cadre. As a  result  of  the  efforts,  the  Audit  Reports  of  the  years  2014-15  to 2017-18 do not contain negative comments.

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