There were delays in finalisation of rate contracts and consequent delay/ non-procurement of medicines/ drugs, instruments, machinery, equipment; thereby defeating the purpose of creation of the Company. Audit came across instances of non-levy of liquidated damages of INR 7.92 crore for delayed supplies, undue favour to a supplier by rejecting the seven bidders and procuring suture items at negotiated rates for INR 25.48 crore from the eighth bidder, non-operationalisation of 102 Ambulance Service in the State over a period of more than three years despite receiving INR 3.18 crore and non-observance of prescribed procedure for empanelment of testing laboratories leading to extra-expenditure of INR 9.47 lakh.