Report 7 of 2025 - Compliance Audit (Commercial) Report of the Comptroller and Auditor General of India for the period ended March 2023 pertaining to Government of Andhra Pradesh

What did the audit examine?

This audit examined the functioning of State Public Sector Enterprises (SPSEs) in Andhra Pradesh and compliance with infrastructure development and maintenance by Andhra Pradesh Tourism Development Corporation Limited (APTDCL) for the period ended March 2023.

Who / what it concerns

Government of Andhra Pradesh

What the auditor found

• 103 working SPSEs and 21 inactive SPSEs as of March 31, 2023
• 13 SPSEs had backlog of 342 accounts with arrears ranging from 1 to 17 years as of September 30, 2023
• 20 SPSEs registered ₹88,176.83 crore turnover (6.69% of Andhra Pradesh's GSDP)
• 14 SPSEs earned profits (₹2,786.83 crore), 5 incurred losses (₹1,251.63 crore)
• Accumulated losses in 5 loss-making SPSEs: ₹4,039.91 crore
• 12 SPSEs did not conduct required 4 board meetings
• Only 4 out of 13 SPSEs appointed required Independent Directors
• APTDCL had assets worth ₹33.68 crore under Swadesh Darshan Scheme not operational
• APTDCL did not realise ₹38.46 crore in dues
• APTDCL did not conduct feasibility studies before asset creation
• APTDCL's assets deteriorated due to lack of maintenance
• APSRTC sold midi buses prematurely causing loss of ₹4.27 crore

Points worth noting

• ₹33.68 crore in assets under Swadesh Darshan Scheme not operational
• ₹38.46 crore in dues not realised by APTDCL
• ₹4.27 crore loss from premature sale of midi buses