Despite rise in revenue, Tasmac incurring losses: CAG
A CAG report, tabled in the TN Assembly, stated that the company was incurring minor losses despite the increase in revenue, during all the financial years under audit coverage.
Tasmac (File)
CHENNAI: Despite crossing Rs 40,000 crore in sales this year, the Tamil Nadu State Marketing Corporation (Tasmac), the monopoly agency in selling liquor in the State, is still incurring minor losses.
A CAG report, tabled in the TN Assembly, stated that the company was incurring minor losses despite the increase in revenue, during all the financial years under audit coverage. For 2019-20, the losses were mainly due to the payment of the difference of VAT of Rs 126.25 crore based on a revision of assessment by the Commercial Tax Department.
In 2020-21, the CAG said, the government imposed a lockdown of Tasmac retail shops due to COVID-19. This resulted in losses compared to the previous year. The report further said that since administrative expenses had to be incurred despite the partial closedown, the company incurred losses for 2021-22 also.
The audit said though Tasmac was ordered to place indents to all manufacturers equitably without bias, it has noticed non-transparency in orders placed with manufacturers. The CAG also recommended that it is therefore essential that Tasmac adopts a consistent and unbiased procurement policy.
In its recommendations, the CAG said the inventory policy such as the procurement and retail vending policy is very old and not transparent. Tasmac, being entrusted with a sheer monopoly in both procuring and vending liquor in the State, should adopt an equitable purchase policy from all manufacturers without favouring or disfavouring any brand or manufacturer.
The CAG recommendation further said the end-to-end computerisation project has already been delayed. The management should, realising the importance of the project, find ways to finalise it expeditiously to have in place an efficient 'goods monitoring system'.