Audit Reports
Tamil Nadu
Report of 2010 - Performance Audit on Commercial of Government of Tamilnadu
Overview
Audit of Government companies is governed by Section 619 of the Companies Act, 1956. The accounts of Government companies are audited by Statutory Auditors appointed by CAG. These accounts are also subject to supplementary audit conducted by CAG. Audit of Statutory corporations is governed by their respective legislations. As on 31 March 2010, the State of Tamil Nadu had 66 working PSUs (64 companies and 2 Statutory corporations) and 11 non-working PSUs (all companies), which employed 2.79 lakh employees. The State PSUs registered a turnover of RS 47,578.39 crore as per their latest finalised accounts. This turnover was equal to 19.73 per cent of State's GDP indicating the important role played by State PSUs in the economy. The PSUs had accumulated loss of RS 21,297.39 crore as per their latest finalised accounts.
As on 31 March 2010, the investment (Capital and long term loans) in 77 PSUs was RS 36,408.15 crore. Power Sector accounted for 80.57 per cent of total investment and Service Sector 9.72 per cent in 2009-10. The Government contributed RS 7,729.58 crore towards equity, loans and grants/subsidies during 2009-10. As per latest finalised accounts, out of 66 working PSUs, 40 PSUs earned a profit of RS 511.96 crore and 20 PSUs incurred a loss of RS 8,547.73 crore.
The major contributors to profit were Tamil Nadu Newsprint and Papers Limited (RS 126.06 crore), State Industries Promotion Corporation of Tamil Nadu Limited (RS 62.32 crore), Tamil Nadu Industrial Investment Corporation Limited (RS 44.84 crore), Tamil Nadu Power Finance and Infrastructure Development Corporation Limited (RS 41.30 crore) and TIDEL Park, Chennai (RS 38.05 crore). Heavy losses were incurred by Tamil Nadu Electricity Board (RS 7,771.39 crore), Tamil Nadu State Transport Corporation (Madurai) Limited (RS 166.47 crore), Tamil Nadu State Transport Corporation (Coimbatore) Limited (RS 141.42 crore) and State Express Transport Corporation Limited (RS 100.82 crore). Audit noticed various deficiencies in the functioning of PSUs. A review of three years Audit Reports of CAG shows that the State PSUs losses of RS 4035.35 crore and infructuous investments of RS 632.60 crore were controllable with better management. Thus, there is tremendous scope to improve the functioning and enhance profits. The PSUs can discharge their role efficiently only if they are financially self-reliant. There is a need for greater professionalism and accountability in the functioning of PSUs.