Rounded Rectangle: TABLE OF CONTENTS

                                                                        

Commercial Audit Report for 2003-04

SUBJECT

 

Reference to

Paragraph

Page(s)

Preface

vii

Overview

 

ix – xiii

CHAPTER- I

OVERVIEW OF GOVERNMENT COMPANIES AND STATUTORY CORPORATIONS:

1

1

Introduction                  

1.1

1

Working Public Sector Undertakings (PSUs)

1.2 –1.8

2 – 7

Working Government companies

1.9-1.10

7 – 8

Working Statutory corporations

1.11 – 1.14

8 – 9

Reforms in Power Sector

1.15– 1.16

9

Non-working PSUs

1.17 – 1.22

9 – 12

Status of placement of Separate Audit Reports of Statutory corporations in Legislature

1.23

13

Disinvestment, privatisation and restructuring of
Public Sector Undertakings

1.24 -1.25

13 – 14

Results of audit by Comptroller and Auditor General of India

1.26 – 1.38

14 – 16

Recoveries at the instance of audit

1.39

16

Internal audit/internal control

1.40

16 – 17

Recommendations for closure of PSUs

1.41

17

Position of discussion of Audit Reports (Commercial) by the Committee on Public Undertakings (COPU)

1.42

17 – 18 

619-B Companies

1.43

18

CHAPTER- 2

REVIEWS RELATING TO GOVERNMENT COMPANIES

2

 

1.  Fuel (coal) management in thermal power stations - Andhra Pradesh Power Generation Corporation Limited

2.1

 

Highlights

21 – 22

Introduction

2.1.1

22

Organisational set-up

2.1.2

22

Scope of audit

2.1.3 – 2.1.4

23

Procurement of coal

2.1.5 – 2.1.16

23 – 29

Consumption of coal

2.1.17 – 2.1.19

29 – 31

Transport

2.1.20 – 2.1.21

31 – 32

Conclusion

32

2.      Funds management in power sector companies

2.2

 

Highlights

33 – 34

Introduction

2.2.1

34

Organisational set-up

2.2.2

34

Scope of audit

2.2.3 – 2.2.4

35

Sources and utilisation of funds

2.2.5

35 – 36

Revenue realisation

2.2.6 – 2.2.9

36 – 37

Borrowings

2.2.10 – 2.2.17

37 – 40

Cash management

2.2.18 – 2.2.20

41 – 42

Investment of borrowed funds in short term deposits

2.2.21

42

Collection and remittance of revenue

2.2.22 – 2.2.26

42 – 44

Locking up of funds due to over-stocking of spares

2.2.27 – 2.2.30

44 – 45

Dues from Government

2.2.31 – 2.2.33

45 – 46

Miscellaneous

2.2.34 – 2.2.36

46 – 47

Internal control

2.2.37

48

Conclusion

48

CHAPTER- 3

Transaction Audit Observations

3

 

 

Government Companies

 

 

 

The Singareni Collieries Company Limited

 

 

 

Loss of interest income due to premature sale of bonds

3.1

51 – 52

 

Central Power Distribution Company of Andhra Pradesh Limited

 

 

 

Avoidable expenditure on procurement of energy meters

3.2

52 – 53

 

Northern Power Distribution Company of Andhra Pradesh Limited

 

 

 

Extra expenditure on purchase of three phase meters

3.3

53 – 54

 

Loss of revenue due to incorrect application of tariff

3.4

54 – 57

 

Transmission Corporation of Andhra Pradesh Limited

 

 

 

Purchase of power from co-generation plants

3.5

57 – 59

 

Andhra Pradesh State Housing Corporation Limited

 

 

 

Borrowing for construction of Individual Sanitary Latrines

3.6

59 – 60

 

Construction of housing colony

3.7

60 – 61

 

Extension of one time settlement scheme benefit to ineligible beneficiaries

3.8

61

 

Idle investment on construction of a model block at Bhimavaram

3.9

62

 

Andhra Pradesh State Film, Television and Theatre Development Corporation Limited

 

 

 

Sale of land to an entrepreneur at a rate less than the market rate

3.10

63 – 64

 

Andhra Pradesh Beverages Corporation Limited

 

 

 

Wasteful expenditure on application software

3.11

64 – 65

 

Non-recovery of funds

3.12

65 – 66

 

Andhra Pradesh State Seeds Development Corporation Limited

 

 

 

Avoidable expenditure on purchase of packing material

3.13

66 – 67

 

Andhra Pradesh State Road Transport Corporation

 

 

 

Hiring out of shops/stalls/space in commercial and bus station complexes

3.14

67 – 70

 

Andhra Pradesh State Financial Corporation

 

 

 

Acceptance of non-existent collateral security

3.15

70 – 71

 

Doubtful recovery of a term loan

3.16

72

 

General

 

 

 

Implementation of Voluntary Retirement Scheme

3.17

72 – 75

 

Extension of financial support for State sponsored games

3.18

76

 

Follow up action on Audit Reports

3.19

77 – 79

 

 

Annexure

 

Annexure 1

Statement showing particulars of up-to-date paid-up capital, budgetary outgo, loans given out of budget and loans outstanding as on
31 March 2004 in respect of Government companies and Statutory corporations

1.4,1.5,1.6,
1.19 and 1.24

83 – 90

Annexure 2

Summarised financial results of Government companies and Statutory corporations for the latest year for which accounts were finalised

1.7,1.8,1.9,
1.10,1.11,
1.14,1.21,
1.22, and 1.41

91 – 99

Annexure 3

Statement showing subsidy received, guarantees received, waiver of dues, loans on which moratorium allowed and loans converted into equity during the year and subsidy receivable and guarantees outstanding at the end of 31 March 2004

1.6 and 1.12

100 – 104

Annexure 4

Statement showing financial position of Statutory corporations

1.8

105 – 107

Annexure 5

Statement showing working results of Statutory corporations

1.8

108 – 110

Annexure 6

Statement showing operational performance of Statutory corporations

1.13

111 – 113

Annexure 7

Statement showing status of implementation of reform programme against each commitment made in the MOU

1.15

114

Annexure 8

Statement showing paid-up capital, investment and summarised working results of 619-B companies as per their latest finalised accounts

1.43

115

Annexure 9

Statement showing installed capacity and power generated by the thermal power stations during 1999-2000 to 2003-04

2.1.1

116

Annexure 10

Statement of excess consumption of coal

2.1.17

117 – 122

Annexure 11

Statement showing details of demand, collection and balance of power dues in respect of power distribution companies (DISCOMS).

2.2.9

123

Annexure 12

Statement showing cause-wise outstanding dues of power distribution companies (DISCOMS) for 2001-02 and 2002-03

2.2.9

124

Annexure 13

Statement showing incorrect write off of sundry debtors

3.4.5

125 – 126

Annexure 14

Statement showing paragraphs/reviews for which explanatory notes were not received (as on 30 September 2004)

3.19.1

127

Annexure 15

Statement showing Department-wise break-up of outstanding Inspection Reports (IRs)

3.19.3

128

Annexure 16

Statement showing the department-wise draft paragraphs/reviews to which replies are awaited

3.19.3

129

 

GLOSSARY

130 – 132