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Tamil Nadu

Report No. 2 of 2013 - Performance Audit on Public Sector Undertakings of Government of Tamilnadu

Date on which Report Tabled:
Wed 15 May, 2013
Date of sending the report to Government:
Government Type:
State
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Sector -

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 die CAG. These accounts are also subject to supplementary audit conducted by the CAG. Audit of Statutory Corporations is governed by their respective legislations. As on 31 March 2012, the State of Tamil Nadu had 64 working PSUs (63 companies and one Statutory Corporation) and 13 non-working PSUs (all companies), which employed 2.72 lakh employees. The State PSUs registered a turnover of RS 65,805 crore as per their latest finalised accounts. This turnover was equal to 10.30 per cent of State's GDP indicating the important role played by State PSUs in the economy. The PSUs had accumulated loss of RS 59,636.87crore as per their latest finalised accounts.

As on 31 March 2012, the investment (capital and long term loans) in 77 PSUs was RS 61,438.83 crore. Power sector accounted for 89.28 per cent of total investment and Service sector 4.29 per cent in 2011-12. The Government contributed RS 5,559.96 crore towards equity, loans and grants/subsidies during 2011-12. As per latest finalised accounts, out of 64 working PSUs, 37 PSUs earned a profit of RS 493.36 crore and 25 PSUs incurred a loss of RS 14,504.02 crore. The major contributors to profit were Tamil Nadu Newsprint and Papers Limited (RS 108.94 crore), Tamil Nadu Industrial Investment Corporation Limited (RS48.40 crore), Tamil Nadu Power Finance and Infrastructure Development Corporation limited (RS 53.97 crore) and TIDEL Park Limited, Chennai (RS 35.75 crore).

In respect of Tamil Nadu Civil Supplies Corporation Limited and Tamil Nadu Transmission Corporation Limited, the loss is compensated by the State Government and Tamil Nadu Generation and Distribution Corporation Limited, respectively. Heavy losses were incurred by Tamil Nadu Electricity Board (RS 7,032.79 crore), Tamil Nadu Generation and Distribution Corporation Limited (RS 5,633.46 crore) and all the eight State Transport Corporations (RS 1,791.64 crore). Audit noticed various deficiencies in the functioning of PSUs. A review of three years Audit Reports of the CAG shows that the State PSUs losses of RS 5,826.49 crore and infructuous investments of RS 635.51 crore were controllable with better management Thus, there is tremendous need and scope to improve the functioning and thereby enhance profits. The PSUs can discharge their role better if they are financially self-reliant Greater professionalism and accountability in the functioning of PSUs is also calledfor.

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Last updated: 18 Apr 2024
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