Audit Reports

Overview

 This Report contains a Compliance Audit on Loss incurring Agro based Public Sector Undertakings of Tamil Nadu and eight Compliance Audit Paragraphs.

Compliance Audit on Loss incurring Agro based Public Sector Undertakings of Tamil Nadu

Compliance Audit on Loss incurring Agro based Public Sector Undertakings of Tamil Nadu revealed that the area registered for growing sugarcane has been declining for both Tamil Nadu Sugar Corporation Limited (TASCO) and Perambalur Sugar Mills (PSM). The capacity utilisation of the sugar mills was in the range of 54 to 75 per cent of the maximum crushing capacity during the Audit period. The actual recovery rate of sugar in respect of TASCO and PSM, ranged between 7.8 per cent and 8.97 per cent as against the budgeted recovery rate of 8.5 per cent to 9.5 per cent. Sugarcane received by the mills of TASCO and PSM included extraneous material of 11,030 MT and 3,526 MT respectively which was over and above the norm of one per cent. It was seen that there was an abnormal delay in establishing ethanol project in TASCO which has resulted in postponement of envisaged benefits. Further, the re-introduction (June 2018) of Sugar Release Mechanism has resulted in piling up of sugar stock at godowns of TASCO and PSM for up to two years which ultimately led to higher carrying cost and interest loss.

In respect of Tamil Nadu Tea Plantation Corporation Limited (TANTEA), delay in completion of modernisation of factories postponed the realisation of envisaged benefits such as increase in sales quantity and reduction in tea waste, fuel consumption and manpower cost. The per hectare yield of Green tea leaves (GTL) of TANTEA was lesser than the district average yield to the extent of 6,846, 12,535 and 18,806 kg per hectare in Nilgiris, Wayanad and Anamalai regions respectively during the five-year period ending 2020-21. Despite complaints from field office, TANTEA procured (2019-22) 44.85 lakh kg of poor quality GTL, amounting to ₹9.61 crore, from a private party. It was seen that as against the company’s own norm of application of fertilizer (four times a year), TANTEA applied fertilizer zero to one time in a year, despite availability of sufficient funds. As against the norm of two per cent, TANTEA produced tea waste ranging from 7.82 to 14.73 per cent during the Audit period mainly due to delay in modernisation of factories. Above all, the non-implementation of committee recommendation regarding reduction of lease rent by Government of Tamil Nadu resulted in additional liability of ₹17.70 crore.

The declining trend in production of rubber, in Arasu Rubber Corporation Limited, from 2018 onwards was due to non-felling of old, sick and cyclone affected trees. Replanting also has not been achieved except for one year (2018-19). Non-compliance of the approved latex harvesting policy which interalia required adoption of intensive tapping, tapping of newly opened coupes only added to its poor performance.

(Paragraph No. 2.2)

 

Compliance Audit Paragraphs of PSUs

• Tamil Nadu Generation and Distribution Corporation Limited failed to:

• assess the availability of investment at higher rate in Fixed Deposits and inadequate marketing of Fixed Deposits resulted in loss of opportunity of earning higher interest of 58.54 crore.

     (Paragraph No. 2.3)

• terminate the Power Purchase Agreement which had resulted in avoidable payment to the tune of 453.04 crore and an additional liability of ₹360.20 crore.

      (Paragraph No. 2.4)

• levy cross-subsidy charges on Captive Generating Plants for non-fulfilment of the conditions prescribed under Electricity Rules, 2005 resulted in loss of revenue to TANGEDCO amounting to ₹82.80 crore.

      (Paragraph No. 2.5)

• levy liquidated damages for delayed commissioning of solar power plant resulted in undue favour to a solar power generator to the extent of ₹68.65 crore.

       (Paragraph No. 2.6)

• Absence of agreement and non-traceable LCOs led to non-realisation of dues of ₹226.28 crore in Tamil Nadu Arasu Cable TV Corporation Limited.

(Paragraph No. 2.7)

Compliance Audit Paragraphs of Environment, Climate Change and Forests Department

• Adoption of lease rent at the rate of one per cent applicable for welfare activities instead of the correct rate of 12.5 per cent meant for commercial activity in respect of land leased to M/s.Reliance Jio Infocomm Limited for 20 years had resulted in short levy of lease rent of ₹2.67 crore.

(Paragraph No. 3.1)

Compliance Audit Paragraphs of Highways and Minor ports and Home, Prohibition and Excise Departments

• Wasteful expenditure of ₹15.50 crore due to delay in execution of Road Over Bridge works

(Paragraph No. 4.1)

• Delay in implementation of projects for modernisation of police force resulted in wasteful expenditure of ₹14.37 crore. Further, funds amounting to ₹74.83 crore received from Government of India was also not utilised.

(Paragraph No. 4.2)

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• Report No. 9 of 2022- Compliance Audit for the year ended March 2021, Government of Tamil Nadu
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