(ii)      The Committee shall advise or recommend on the incurrence of expenditure from the Fund in the minutes of its meetings to be held from time to time. The process relating to the disbursement shall commence after approval of such minutes by the Authority. The funds shall be released to the quarter concerned on issue of proper financial sanction.

(iii)     Budget and Accounts Division of the Authority shall be responsible to maintain accounts of CRF and keep up-to-date records of all the transactions made to or out of CRF in accordance with the rules or instructions applicable on the subject.

(iv)     The accounts of CRF shall be maintained on double entry system in accordance with the generally accepted accounting principles.

(8)  Surplus funds of CRF shall be invested in the Government securities as per investment policy placed at Annex-C.

(9)  (i) In order to meet day to day requirements of expenses, the Secretary may have petty cash which shall be operated by using imprest system. At regular intervals the fund shall be recouped to the extent of shortfall between the sanctioned amount and balance in hand. The shortfall must be evidenced by duly authorized expenditure documents offset by legitimate cash receipts or vouchers.

(ii)  Petty cash record shall contain the following details of payments:–

(a)      Date of Payment

(b)      Analysis of expense

(c)      Payee

(d)      Payment reference

(e)      Amount of payment

(f)       Approval for reimbursement.

(iii)     Petty cash flow shall record fully all receipts and contain of the source of all transfer.

(iv)     The Secretary shall ensure that:–

(a)      petty cash expenses are allocated correctly and are subject to review procedure in the same way as other cheques or payments; and

(b)      reimbursements of petty cash accounts are supported by properly authorized proof of payment.

(v)      In order to ensure proper recording of petty cash expenses, a petty cash voucher shall be prepared to which the necessary support shall be voucher shall be signed by the person receiving the payment. Each voucher shall then be recorded in the petty cash book.

(vi)     All payments made out of petty cash shall be recorded in the petty cash book and analyzed there. Then, by means of a general entry, the various accounts shall be dedicated.

(vii)    The necessary procedures for operating the imprest system shall include approval of the predetermined amount by the committee according to receipt of cash by the petty cashier, preparation of necessary vouchers for expenses and recoding of the same in the petty cash book.

(10)    In order to ensure that there is no ambiguity regarding the nature of an item of expenditure, the Authority shall distinguish between capital expenditure and revenue expenditure.

Explanation 1:–Capital expenditure is the expenditure resulting in the acquisition of an assent (tangible or intangible) or which results in an increase in the earning capacity of CRF. If the benefits of expenditure are expected to accrue for a long time, the expenditure shall be classified as capital expenditure.

Explanation 2:– Revenue expenditure is an item of expenditure whose benefit expires within the year of expenditure which merely seeks to maintain the activities of CRF or its assets in good working condition wages, fuel, utilizes, telephone, stationery etc.

(11)    The closing date of the year-end of CRF shall be the 30th June each year.

(12)    The Accounts of CRF shall be audited every year by the Auditor General of Pakistan.

(13)    A copy of the Audit Report shall be sent to the Chairman of the Committee for the comments and remedial action.

(14)    The Division of Budget and Accounts of the Authority shall carry out internal check and audit of accounts of CRF twice a year and submit report to the Chairman of the Committee.

(15)    A statement of annual accounts of CRF together with the internal audit report thereon shall be submitted by the Chairman of the Committee to the Policy Board of the Authority after close of every financial year but before 30th September of following year for onward submission to the concerned division of Federal Government.

20.  Closing of Books.–(1) Books of Accounts shall be closed at the end of every month and cash accounts with specified statements shall be sent to Budget and Accounts Division by 5th of every month directly by the concerned Director or Additional Director.

(2)      The Officers who are delegated the power of DDO by their Directors or Additional Directors shall also send a copy of the cash accounts to them for review and financial control.

21.  Steps Involved in opening and operating of the DDO's Account at Provincial Capitals and Laboratories level.–(1) Request for Opening of the DDO's Account– The concerned Directors or Additional Directors shall write to the Director (B & A) for opening of DDO's Account. They shall send the following documents with their request:

(i)       Specimen signature in two groups- Group 'A' shall contain specimen signature of the Director or Additional Director, Group 'B' shall contain specimen signature of Assistant Director (B & A) or Accounts Officer.

(ii)      Photo copies of CNIC of the signatories.

(iii)     Address of the nearest bank Branch.

(2)      Approval of the Director (B & A)–If request for opening of new bank account is agreed by Director (B & A) as per policy, he shall attest photo copies of the CNIC and specimen signature of the signatories and get approval from Chief Executive Officer. The approval of the Chief Executive Officer shall be conveyed to the concerned bank through a resolution for opening of the bank Account with intimation to the concerned Director or Additional Director.

(3)      DDO's Subsidiary Bank Account.–For Provincial Office, DDO Account shall be opened in the same manner and shall also be operated jointly with at least one signatory from each group.

(4)      Approval of Voucher.–Approval of vouchers shall be given as per delegation of Administrative and Financial Powers.

(5)      Flow chart of the steps to open and operate DDO's account is as specified at Annex-E.

22.  Capital and Revenue Expenditure.–(1) In order to ensure that there is no ambiguity regarding the nature of an item of expenditure, the Authority shall distinguish between capital expenditure and revenue expenditure.

(2)      Capital expenditure is the expenditure resulting in the acquisition of an asset (tangible or intangible) or an item which results in an increase in the earning capacity of the Fund. If the benefits of expenditure are expected to accrue for a long time, the expenditure shall be classified as capital expenditure.

(3)      Revenue expenditure is an item of expenditure whose benefit expires within the year of expenditure which merely seeks to maintain the activities of the Fund or its assets in good working condition wages, fuel, utilizes, telephone, stationery etc.

23.  Internal Check and Audit.–Budget and Accounts Division of the Authority shall carry out internal check and audit of accounts twice a year and submit report to the Chairman of the Policy Board of the Authority.

24.  Audit.–(1) The Authority shall cause to be carried out audit of its accounts by one or more auditors registered as chartered accountants within the meaning of the Chartered Accountants Act, 1961 (X of 1961).

(2)      The Auditor General shall have the power to audit or cause to be audited the accounts of the Authority. A copy of the audit report shall be sent to the Federal Government along with the comments of the Authority.

(3)      The Authority shall take the requisite steps for the rectification of any objection raised by the Auditor General of Pakistan.

Annexure-A

[see Rule 3(2)]

DRUG REGULATORY AUTHORITY OF PAKISTAN BALANCE SHEET

AS ON.________________

DESCRIPTION

AS ON

AS ON

 

JUNE 30, B

JUNE 30, A

FUNDS AND LIABILITIES

……………….

……………….

Drug Regulatory Authority Fund

……………….

……………….

Excess of revenues over 

expenditure carried forward

……………….

……………….

G.P Fund

……………….

……………….

Pension Endowment Fund

……………….

……………….

Central Research Fund

……………….

……………….

LONG TERM LOANS

……………….

……………….

CURRENT LIABILITIES

……………….

……………….

Current portion of long terms loans

……………….

……………….

Creditors, accrued and other liabilities

……………….

……………….

Contingencies and commitments

……………….

……………….

TOTAL

……………….

……………….

ASSETS

……………….

……………….

LONG TERM ASSETS

……………….

……………….

Fixed Assets

……………….

……………….

Long term investments

……………….

……………….

Long term loans and advances

……………….

……………….

Long term deposits, pre-payments 

and deferred costs

……………….

……………….

 

CURRENT ASSETS

……………….

……………….

Stores and supplies

……………….

……………….

Fees/Income receivable

……………….

……………….

Advances, pre-payments and 

other receivables

……………….

……………….

 

Short term investments

……………….

……………….

Cash and bank balances

……………….

……………….

TOTAL

……………….

……………….

DRUG REGULATORY AUTHORITY OF PAKISTAN STATEMENT OF INCOME AND EXPENDITURE

FOR THE YEAR ENDED JUNE 30, ________________

DESCRIPTION

YEAR ENDED

YEAR ENDED

 

JUNE 30, B

JUNE 30, A

REVENUE

………………..

………………..

Grant in Aid by the Federal Government

………………..

………………..

Charges and fees collected

………………..

………………..

Contribution to the Central Research Fund

………………..

………………..

Grants from National/International Agencies

………………..

………………..

Proceeds on investments

………………..

………………..

Other/Miscellaneous

………………..

………………..

OPERATING EXPENDITURE

………………..

………………..

Salaries, Allowances and Benefits

………………..

………………..

Rent

………………..

………………..

Utilities

………………..

………………..

Communication

………………..

………………..

Travel

………………..

………………..

Meeting and Entertainment

………………..

………………..

Depreciation

………………..

………………..

Vehicle Running Expenses

………………..

………………..

Inspection Expenses

………………..

………………..

Consultancy and Services

………………..

………………..

Legal fee/Law charges

………………..

………………..

Advertising & Publicity

………………..

………………..

Financial Charges

………………..

………………..

Others

………………..

………………..

SURPLUS OF REVENUE OVER 

EXPENDITURE

………………..

………………..

Prior year(s) adjustment(s)

………………..

………………..

Surplus/(Deficit) after adjustment(s)

………………..

………………..

Provision for Taxes

………………..

………………..

NET SURPLUS (DEFICIT) AFTER TAX

………………..

………………..

(CARRIED TO STATEMENT OF 

CHANGES IN FUNDS)

………………..

………………..

DRUG REGULATORY AUTHORITY OF PAKISTAN CASH FLOW STATEMENT

FOR THE YEAR ENDED JUNE 30, _________________

DESCRIPTION

YEAR ENDED JUNE 30, B

YEAR ENDED JUNE 30, A

CASH FLOW FROM OPERATING ACTIVITIES

……………….

……………….

Net surplus after tax

……………….

……………….

Adjustment for:

……………….

……………….

                Depreciation

……………….

……………….

                Amortization

……………….

……………….

                Miscellaneous write offs and adjustments

……………….

……………….

WORKING CAPITAL CHANGES

……………….

……………….

Stores and spares

……………….

……………….

Fees/Income receivable

……………….

……………….

Loans, advances, deposits, pre-payments & other receivables

……………….

……………….

Creditors, accrued and other liabilities

……………….

……………….

NET CASH FLOW FROM OPERATING ACTIVITIES

……………….

……………….

CASH FLOW FROM INVESTING ACTIVITIES

……………….

……………….

Fixed capital expenditure

……………….

……………….

Long term investments

……………….

……………….

NET CASH FLOW FROM INVESTING ACTIVITIES

……………….

……………….

CASH FLOW FROM FINANCING ACTIVITIES

……………….

……………….

Long term loans–borrowing

……………….

……………….

Long term loans–repayments

……………….

……………….

NET CASH FLOW FROM FINANCING ACTIVITIES

……………….

……………….

NET INCREASE (DECREASE) IN CASH

……………….

……………….

CASH & CASH EQUIVALENT AT THE BEGINNING OF THE YEAR

……………….

……………….

CASH & CASH EQUIVALENT AT THE END OF THE YEAR

……………….

……………….

DRUG REGULATORY AUTHORITY OF PAKISTAN STATEMENT OF CHANGES IN FUNDS

FOR THE YEAR ENDED JUNE 30,_______________

 

Drug regulatory Authority of Pakistan Fund

Pension Endowment Fund

GP Fund

Central Research Fund

Opening balance

…………….

…………….

…………….

…………….

Add: Surplus / 

receipts during the 

year

 

…………….

 

 

…………….

 

 

…………….

 

 

…………….

 

Transfer to/from 

appropriations

…………….

 

…………….

 

…………….

 

…………….

 

Investment income

…………….

…………….

…………….

…………….

Less: payments 

during the year

…………….

 

…………….

 

…………….

 

…………….

 

Closing balance

…………….

…………….

…………….

…………….

Annex-B

[see Rule 3(3)]

DRUG REGULATORY AUTHORITY OF PAKISTAN CHART OF ACCOUNTS

S#

Account

Description of Account Head

DEBIT

CREDIT

 

Code

 

Amount in Rs.

Amount in Rs.

1.

10100

DRAP Fund

…………….

…………….

2.

10200

GP Fund

…………….

…………….

3.

10300

Benevolent Fund

…………….

…………….

4.

10400

Pension Endowment Fund

…………….

…………….

5.

10500

Central Research Fund

…………….

…………….

6.

20101

Loan from International Agencies

…………….

…………….

7.

20102

Loan from National Agencies

…………….

…………….

8.

20201

Salaries payable

…………….

…………….

9.

20202

Utility bills payable

…………….

…………….

10.

20203

Tax deducted at source

…………….

…………….

11.

20204

Taxes payable

…………….

…………….

12.

20205

Accrued expenses

…………….

…………….

13.

20206

Payable to suppliers

…………….

…………….

14.

30101

Land

…………….

…………….

15.

30102

Building

…………….

…………….

16.

30103

Computer and IT Equipment

…………….

…………….

17.

30104

Furniture and Fixture

…………….

…………….

18.

30105

Air-conditioners

…………….

…………….

19.

30106

Laboratory Equipment

…………….

…………….

20.

30107

Generators

…………….

…………….

21.

30108

Vehicles

…………….

…………….

22.

30109

Accumulated Depreciation

…………….

…………….

23.

30201

Softwares

…………….

…………….

24.

30202

Accumulated Amortization

…………….

…………….

25.

40101

Stocks (consumable items)

…………….

…………….

26.

40102

Stocks (Laboratory Chemicals and Glassware)

…………….

…………….

27.

40201

Advances to employee-House Building

…………….

…………….

28.

40202

Advances to employee-Car/M. cycle

…………….

…………….

29.

40203

Advances to employees- T.A/D.A

…………….

…………….

30.

40204

Advances to employees- Others

…………….

…………….

31.

40211

Advances to suppliers

…………….

…………….

32.

40301

Fees/Income recoverable

…………….

…………….

33.

40302

Accrued profit on investments

…………….

…………….

34.

40401

Cash in hand

…………….

…………….

35.

40501

Cash at Bank

…………….

…………….

36.

50101

Grant in aid by the Federal Government

…………….

…………….

37.

50102

Grant by the Provincial Governments

…………….

…………….

38.

50103

Grant by the International Agencies

…………….

…………….

39.

50104

Grant by National Agencies

…………….

…………….

40.

60101

Drug Manufacturing License fee

…………….

…………….

41.

60202

Drug Manufacturing License Renewal fee

…………….

…………….

42.

60203

Site verification and layout fee

…………….

…………….

43.

60204

Repacking

…………….

…………….

44.

60205

Drug Registration fee

…………….

…………….

45.

60206

Drug Registration renewal fee

…………….

…………….

46.

60207

Variance to Registration

…………….

…………….

47.

60208

Grant of Additional Pack (Price fixation)

…………….

…………….

48.

60209

Fee for Price Increase

…………….

…………….

49.

60210

Fee for Advertisement

…………….

…………….

50.

60211

Fee for application for price increase

…………….

…………….

51.

60212

Inspection services-International

…………….

…………….

52.

60213

Inspection services-National

…………….

…………….

53.

60214

Fee for clinical trials

…………….

…………….

54.

60215

Fee for appeal

…………….

…………….

55.

60216

Drug Import license fee

…………….

…………….

56.

60217

Testing fee-Central Drug Laboratory

…………….

…………….

57.

60218

Lot release fee/Testing fee-NCLB

…………….

…………….

58.

60219

Testing fee-Surveillance Laboratory

…………….

…………….

59.

60220

Fee for duplicate copy

…………….

…………….

60.

60221

Sale of publications

…………….

…………….

61.

60301

Miscellaneous application fee

…………….

…………….

62.

60501

Income on investments

…………….

…………….

63.

60601

Others

…………….

…………….

64.

70101

Pay of officers

…………….

…………….

65.

70102

Personal Pay

…………….

…………….

66.

70103

Qualification Pay

…………….

…………….

67.

70104

Basic pay of Staff

…………….

…………….

68.

70105

Special pay of staff

…………….

…………….

69.

70106

Senior post Allowance

…………….

…………….

70.

70107

House Rent Allowance

…………….

…………….

71.

70108

Conveyance Allowance

…………….

…………….

72.

70109

Washing Allowance

…………….

…………….

73.

70110

Dress Allowance

…………….

…………….

74.

70111

Qualification Allowance

…………….

…………….

75.

70112

Medical Allowance

…………….

…………….

76.

70113

Entertainment Allowance

…………….

…………….

77.

70114

Computer Allowance

…………….

…………….

78.

70115

Orderly Allowance

…………….

…………….

79.

70116

Over time

…………….

…………….

80.

70117

Honorarium

…………….

…………….

81.

70118

Deputation Allowance

…………….

…………….

82.

70119

Health Allowance

…………….

…………….

83.

70120

Monetization of Transport

…………….

…………….

84.

70121

Rent-Residential Buildings

…………….

…………….

85.

70122

Group Insurance Premia

…………….

…………….

86.

70123

Reimbursement of Medical Charges to Pensioners

…………….

…………….

87.

70124

Financial Assistance to the Families of Employees Who Expired during service

…………….

…………….

88.

70201

Meeting Expenses

…………….

…………….

89.

70202

Foreign inspection expenses

…………….

…………….

90.

70203

Local inspection expenses

…………….

…………….

91.

70204

P.O.L Charges, Staff Cars, Motor Cycles

…………….

…………….

92.

70205

Conveyance charges

…………….

…………….

93.

70206

CNG Charges

…………….

…………….

94.

70207

Training-Domestic

…………….

…………….

95.

70208

Traning-Foreign

…………….

…………….

96.

70209

Travelling Allowance

…………….

…………….

97.

70210

Rent-Office Buildings

…………….

…………….

98.

70211

Stationery

…………….

…………….

99.

70212

Printing & Publications

…………….

…………….

100.

70213

Conference/Seminar/Work Shops

…………….

…………….

101.

70214

Newspapers, Periodicals & Books

…………….

…………….

102.

70215

Uniform & Protective

…………….

…………….

103.

70216

Adverting and Publicity

…………….

…………….

104.

70217

Law Charges/Legal Fee

…………….

…………….

105.

70218

Payment to others for Services Rendered

…………….

…………….

106.

70219

Purchases of Drugs & Medicine

…………….

…………….

107.

70220

Other Stores-Computer Stationary

…………….

…………….

108.

70221

Others

…………….

…………….

109.

70222

Entertainment & Gifts

…………….

…………….

110.

70223

Laboratory Chemicals and Glassware-CDL

…………….

…………….

111.

70224

Laboratory Chemicals and Glassware-NCLB

…………….

…………….

112.

70225

Laboratory Chemicals and Glassware-Surveillance Lab

…………….

…………….

113.

80101

Interest on International Loans

…………….

…………….

114.

80102

Interest on local loans

…………….

…………….

115.

80103

Bank Charges

…………….

…………….

Annex-C

[see Rule 4 (9) and Rule 19 (9)]

INVESTMENT POLICY

1.     OVER VIEW

The purpose of Investment Policy of Drug Regulatory Authority of Pakistan (the Authority) would be to invest its surplus funds and to streamline the procedure for different heads of investment accounts. Investment Committee (IC) would be responsible for making recommendations regarding investments to the Policy Board of the Authority for its approval and thereafter supervise implementation of the decisions.

2.     INVESTMENT SCOPE

The policy shall be applicable to all investment/divestments to be made by the Authority with reference to its surplus funds and the account of working capital.

3.     INVESTMENT COMMITTEE

The Committee shall comprise of:

1.       Chief Executive Officer, Chairman

2.       Director Budget & Accounts, Convener

3.       Director Costing & Pricing

4.     FUNCTIONS OF COMMITTEE

1.       To hold regular periodic meetings to review the investment requirements/opportunities.

2.       To review legal implications and financial strategies.

3.       To ensure timely collection of returns and reinvestments.

4.       To maintain record of the committee proceedings.

5.       To assess Working Capital requirement of the Authority.

6.       To prepare comparative statement of rates of profit offered by different schemes of the National Savings and Government securities such as treasury bills, PIB's, etc. and make recommendation for long term investments of the surplus fund.

5.     WORKING CAPITAL

Working capital limit of the Authority shall be worked out quarterly on the basis of estimated capital and revenue expenditures of the Authority for next three months.

6.     INVESTMENT OF SURPLUS FUNDS

All surplus funds shall be worked out quarterly. Total funds available as reduced by the working capital limit shall be considered surplus and invested as follows:–

1.       Surplus funds considered to be available for up to one year shall be invested in short term schemes of national savings /Government securities.

2.       Surplus funds considered to be available for more than one year shall be invested in short term in schemes of National Savings, Government Securities/PIB's/treasury bills etc.

Annex-D

[see Rule 18(2)]

LOANS AND ADVANCES

1.     Loans and advances.–Subject to availability of the funds for this purpose and subject to such conditions as it may consider proper, the competent authority may grant any one or more of the following categories of loans to an employee or a civil servant or a Director appointed on regular basis having more than 10 years service on his application in writing for the grant of such loan:–

i.        Loans for purchase of a motor cycle/scooter / Motor Car (Maximum for two time in entire service).

ii.       Loan for purchase of a house / flat / apartment or for house building advance (Maximum for two time in entire service).

2.  Loan for purchase of a Motor Car/Motor Cycle/Scooter.–(1) Loan for purchase of motor car/motor cycle/scooter shall be admissible up to the following maximum limits:–

S.No.

Type of Adv.

Eligibility

Amount of Adv.

1.

Motor Cycle//Scooter Advance

On pay between Rs.75,000/- to Rs. 19,999/- p.m

Rs. 75,000/-

2.

Motor Car Advance.

On pay between Rs.75,000/- to 

Rs. 19,999/-p.m.a

Rs.450,000/-

Provided that loan for purchase of a motor car shall not be admissible to an employee or a civil servant below the level of an officer in BS-17 or equivalent thereof.

(2)      Before payment of the amount of loan granted to an employee, the employee shall execute a letter of authority, authorizing the Authority to adjust, at any time, the balance of loan amount together with the mark up and surcharge from the dues, if any, payable to him including the amount payable to him as pension, gratuity or provident fund. He shall also submit two sureties acceptable to the Federal Government or the Authority, as the case may be, guaranteeing the repayment of the loan amount. The vehicle and the documents pertaining to the vehicle shall be examined by the Authority and approved by the Officer authorized in this behalf by the competent authority:

Provided that where the competent authority is satisfied that comprehensive insurance was not possible in respect of the said motor car/motor cycle/scooter, the condition of comprehensive insurance may be waived by it.

(3)      At the time of drawing the advance the civil servant or employee would be required to execute an agreement in Form 1 of this Annexure and, on completing the purchase, he should further be required to execute a mortgage bond in Form-2 of this Annexture hypothecating the car to the President or the Authority, as the case may be, as security for the advance. The cost price of the car should be entered in the schedule of specification attached to the mortgage bond.

(4)      In the case of advances drawn outside Pakistan a similar agreement and a personal security bond in the prescribed form will be executed at the time of drawing the advance and at the time of purchase respectively.

(5)      Mark-up at interest rate allowed on G.P. Fund by the Government from time to time is charged on amount of loan sanctioned. Moreover, if any civil servant is not obtaining interest upon GPF, no mark-up is loan of any kind sanctioned to him. The DRAP may amend its rules accordingly.

(6)      In case, an employee is/or becomes entitled to loan for purchase of motor car but has already availed himself of loan for purchase of motor cycle/scooter, then he may avail himself of loan for purchase of motor car only when he adjusts the loan taken for purchase of motor cycle/scooter in full with mark up accrued thereon.

(7)      Loan for purchase of Motorcycle/Scooter/Motor Car is recoverable along-with mark-up (if due) in 60 equal monthly installments).

(8)      In case of the employee leaving the service of the Authority, for any reason whatsoever, the balance of loan amount outstanding against him shall become payable forthwith.

3.  (1) No advance shall exceed 36th months pay of a former superior service Government servant and 36 months pay of a former class IV Government servant.

(2)      The amount of loan sanctioned for purchase of a house/flat/apartment shall be paid by the Authority to the employee concerned on production of a duly executed sale agreement and on an undertaking by the employee. The employee shall mortgage the said property with the Authority by an equitable mortgage deed within two months of the payment of loan, failing which he shall refund the full amount of loan with mark up.

(3)      Advances for the construction of new houses may be drawn in two equal instalments. The first instalment will be paid on the production of documents establishing proprietary rights in the land and the second instalment will be paid only when the house reaches plinth level. Advances granted for reconstruction, purchase extension or renovation of houses may, however, be drawn in one instalment, provided all other conditions governing the execution and registration of mortgage deed, etc., are duly fulfilled and the Government / the Authority interest is fully secured. The repayment shall commence from the month immediately after the grant of the second instalment or six months after the drawal of the first instalment whichever is earlier. The repayment shall be completed in 10 years in the case of a former superior service Government servant and in 20 years in the case of a former class IV Government servant, provided that the age of the Government servant concerned at the time of repayment of first instalment is below 47 years in the former case and below 38 years in the latter case. In the case of those who would at the time of such repayment be attaining the age of 47 years or 38 years, the case may be, the number of instalments by which recovery is effected, shall be so regulated as to enable the recovery of the total amount advanced, including interest, possible before the date on which the civil servant or employee or Director would be reaching the age of 60 years.

Note 1.–The bills for the drawal of the advances when presented to audit should be accompanied be a certificate in the following form from the Controlling Officer in the case of gazetted officers and the drawing officer in respect of non-gazetted civil servants or employees.

Certified that Mr. ……………… who has been granted a House-Building Advance of Rs ………………… has produced documents stating proprietary right in the land on which the house is proposed to be build *satisfied me that the house has reached the plinth level.

Signature of Controlling / Drawing Officer.

*This portion may be deleted if the bill is drawn for the second instalment.

Note 2.–Utilization certificate shall be furnished in the following manner:–

(i)       Where the house building advantage is drawn in instalments,–At the end of six months of each instalment.

(ii)      Where full advance is drawn in one instalment.–At the end of one year from the drawal of advance.

(4)      Mark-up at interest rate allowed on GP Fund of DRAP employees from time to time. Moreover, if any employee is not obtaining interest upon GPF, no mark-up is required to be paid by him on the amount of loan of any kind sanction to him. The DRAP may amend its rules accordingly.

(5)      In case of the employee leaving the service of the Authority for any reason whatsoever, the balance of loan amount outstanding against him together with the amount of mark up shall become payable forthwith and the Authority shall, the agreed rate with monthly rests from the date of his leaving the service of the Authority till its full adjustment / repayment.

4.  General Conditions.–Notwithstanding anything to the contrary herein before contained, all loan grants shall be subject to the following conditions:–

(1)      Loan under different provisions of this annexure may be granted simultaneously to an employee subject to the condition that the aggregate of the installments for repayment of the said loans and all other deductions under this annexure from the salary of the employee concerned shall not exceed 50% of his pay.

(2)      In the case of those employees who become members of the provident fund trust, loans/advances may first be applied for under the regulations of that trust and they may get the loan under this annexure to the extent of the difference, if any, between the advance drawn under the provident fund trust regulations and the maximum limits prescribed in this chapter.

(3)      In the case of those employees who are due to retire before the period over which the installments for repayment of loan are spread as per this annexure, the entitlement for such loan shall be reduced to such extent as may be fully repaid before his retirement.

(4)      Loans shall be granted subject to allocation of funds by the Policy Board.

(5)      Mark up and surcharge shall be calculated on the monthly diminishing balance of the loan and shall be recovered in monthly installments equal to the installments of principal amount, after the full recovery of the loan.

FORM I

[See Para 2 (3) of Annex-D]

FORM OF 'AGREEMENT TO BE' EXECUTED AT THE

TIME .OF DRAWING 'AN ADVANCE FOR THE

PURCHASE OF MOTOR VEHICLE

AN AGREEMENT made _____________ day of _____ one thousand nine hundred and ______ BETWEEN       of (hereinafter called the Borrower, which expression shall include his legal representatives and assignees) of the one part and THE PRESIDENT of the other part WHEREAS the Borrower has under the provisions of the General Financial Rules (hereinafter referred to as the said Rule which expression shall include any amendments thereof for the time being in force) applied to the President for a loan of Rs _____________ for the purchases of a motor vehicle and President has agreed to lend the said amount to the Borrower on the terms and conditions hereinafter contained NOW IT IS HEREBY AGREED between the parties hereto that in consideration of the sum of Rs ________________paid by the President to the Borrower (the receipt of which the Borrower hereby acknowledges) the Borrower hereby agress with the President (1) to pay the President the said amount with interest calculated according to the said Rules by monthly deductions from his salary as provided for by the said Rules and hereby authorises the President to make such deductions and (2) within one month from the date of these presents to expend the full amount of the said loan in the purchase of a motor vehicle or if the actual price paid is less than the loan to repay the difference to the President forthwith and (3) to execute a document hypothecating the said motor vehicle to the President as security for the amount lent to the Borrower as aforesaid and interest in the form provided by the said Rules AND IT IS HEREBY LASTLY AGREED AND DECLARED that if the motor vehicle has not been purchased and hypothecated as aforesaid within one month from the date of these presents or if the Borrower within that period becomes insolvent or quits the service of Government or dies the whole amount of the loan and interest accrued thereon shall immediately become due and payable.

IN WITNESS whereof the Borrower has hereunto set his hand the day and year first before written.

Signed by the said

in the presence of

FORM 2

[See Para 2(3) of Annex-D]

THIS INDENTURE made this………….. day of……………..one thousand nine hundred and ……………….BETWEEN ………….(here-in after called “the Borrower” of the one part and the PRESIDENT of the other part,

WHEREAS the Borrower has applied/applied for and has been granted an advance of Rupees …………….. to purchase a Motor vehicle on the terms of Paragraph 255 or 262 of the General Financial Rules of the Federal Government (hereinafter referred to as “the said Rules” which expression shall include any amendment thereof or addition thereto for the time being in force) AND WHEREAS one of the conditions upon which the said advance has been/was granted to the Borrower is was that the Borrower will/would hypothecate the said Motor vehicle to the President as security for the amount lent to the Borrower AND WHEREAS the Borrower has purchased with or 

partly with the amount so advanced as aforesaid the Motor 

vehicle particulars whereof are set out in the Schedule hereunder written.

NOW THIS INDENTURE WITNESSETH that in pursuance of the said agreement and for the consideration aforesaid the Borrower doth hereby covenant to pay to the President the sum of Rs ………… aforesaid or the balance thereof remaining unpaid at the date of these presents by equal payments of Rs …………….. each on the first day of every month and will pay interest on the sum for the time being remaining due and owing calculated according to the said Rules and the Borrower doth agree that such payments may be recovered by monthly deductions from his salary in the manner provided by the said Rules, and further pursuance of the said agreement the Borrower doth hereby assign and transfer unto the President the Motor vehicle the particulars whereof are set out in the Schedule hereunto written by way of security for the said advance and the interest thereon as required by the said Rules.

And the Borrower doth hereby agree and declare that he has paid in full the purchase price of the said Motor vehicle and that the same is his absolute property and that he has not pledged and so long as any money remain payable to the President in respect of the paid advance will not sell, pledge or part with the property in or possession of the said Motor vehicle. PROVIDED ALWAYS and it is hereby agreed and declared that if any of the said installments of principal or interest shall not be paid or recovered in manner aforesaid within ten days after the same are due or if the Borrower shall die or at any time ceases to be in Government service or if the Borrower shall sell or pledge or part with the property in or possession of the said Motor vehicle or become insolvent or make any composition or arrangement with his creditors or if any person shall take proceedings in execution of any decree or judgment against the Borrower the whole of the said principal sum which shall then be remaining due and unpaid together with interest thereon calculated as aforesaid shall forthwith become payable AND IT IS HEREBY AGREED and declared that the President may on the happening of any of the events hereinbefore mentioned seize and take possession of the said Motor vehicle and either remain in possession thereof without removing the same or else may remove and sell the said Motor vehicle either by public auction or private contract and may out of the sale money retain the balance of the said advance than remaining unpaid and any interest due thereon calculated as aforesaid and all costs, charges, expenses and payment properly incurred or made in maintaining, detending or reausing his agents hereunder and shall pay over the surplus if any, to the Borrower, his executors, administrators or personal representative PROVIDED FURTHER that the aforesaid power of taking possession or sewing of the said Motor vehicle shall not prejudice the right of the President, to use the Borrower or his personal representatives for the said balance remaining due and interest or in the case of the Motor vehicle being sold the amount by which the net sale proceeds fall short of the amount owing AND the Borrower hereby further agrees that so long as any moneys are remaining due and owing to the President be, the Borrower will ensure and keep insured the said Motor vehicle against loss or damage by fire theft, or accident with an Insurance Company to be approved by the Accountant-General, concerned and will produce evidence to the satisfaction of the Accountant-General, that the Motor Insurance Company with whom the said Motor vehicle is insured have received notice that the President is interested in the Policy AND the Borrower hereby further agrees that he will not permit or suffer the said Motor vehicle to be destroyed or injured or to deteriorate in a degree than it would deteriorate by reasonable wear and tear thereof AND further that in the event of any damage or accident happening to the said Motor vehicle the Borrower will forthwith have the same repaired and made good.

IN WITNESS whereof the said ……………… (Borrower) hath hereunto set his hand the day and the year first above written.

THE SCHEDULE

Description of Motor vehicle.

Maker's Name.

Description.

No. of Cylinders.

Engine Number.

Chassis No.          Cost price.

SIGNED by the Borrower,

in the presence of……………

Annex-E

[See Rule 21 (5)]

FLOW CHART SHOWLNG STEPS INVOLVED IN OPENING AND OPERATION OF THE DDO's A/C AT PROVINCIAL CAPITALS/LABORATORY LEVEL

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