INSPECTION REPORT ON THE ACCOUNTS OF THE DEPUTY DIRECTOR (PUBLICATIONS), TAMILARASU PRESS, TARAMANI, -113 FOR THE PERIOD FROM DECEMBER 2011 TO MAY 2017.

DATES OF AUDIT: 21.06.2017 To 27.06.2017.

PART I: INTRODUCTION a. Overview of the audit unit The Tamilarasu Press is a printing press and serves as a print medium of the Government, disseminating information about various schemes, welfare activities and achievements of the Government of Tamilnadu. The Tamilarasu Press engaged in Printing of Tamilarasu Magazine in Tamil and English editions and other books as required by the Government. b. Function / Geographical jurisdiction The geographical jurisdiction of the Auditee Unit extends to the length and breadth of the State of . c. Budget, Financial Performance The month wise expenditure of the auditee unit for the period from April 2011 to March 2017 is given as under:

Year Salary Non-Salary Total Expenditure 2011-2012 15706585 10274772 25981357 2012-2013 15772177 9723749 25495926 2013-2014 15353649 18913406 34267055 2014-2015 18701573 25479537 44181110 2015-2016 21784416 17698792 39483208 2016-2017 24278012 11048410 35326422 d. Overall hierarchy of the Audittee Unit The Audittee Unit is headed by the Deputy Director (Publications) Tamilarasu Press, Chennai. e. Scope of audit The compliance audit covering the period from April 2014 to March 2017 and local audit for the period from December 2011 to May 2017 subject matter viz., Expenditure incurred on advertisement. f. Sampling procedure and sample selected (including implementing units) No sampling procedure adopted since the office of the Deputy Director (Publications), Tamilarasu Press is under Director of Information and Public relations. g. Subject matter and criteria The subject matter selected is Expenditure Incurred on advertisement. The sources of audit criteria are:

(i) Policies and Guidelines issued by the government (ii) GOs issued by Government of Tamil Nadu. (iii) Orders, instructions on rates issued by government of Tamil Nadu (iv) Tamil Nadu Tender Transparency Act 1998 and Rules 2000 (V) Guidelines issued by the Government of Tamil Nadu and DIPR h. Conduct of Audit The compliance audit is conducted by the following officials under Section 13 of Comptroller and Auditor General’s (Duties, Powers and Conditions of Services) Act 1971 and as per the Auditing Standards issued by CAG of and in accordance with the provisions contained in Regulations of Audit & Accounts 2007.

1. Shri. K. Haridasan, Senior Audit Officer 2. Shri. R. Poyyamozhi, Assistant audit Officer 3. Shri. R. Thirumalai, Assistant Audit Officer

PART II: AUDIT FINDINGS:

SECTION - A:-

1. AVOIDABLE EXPENDITURE OF Rs.72,98,550/- TOWARDS PRINTING IN PRIVATE PRESSES

2. AVOIDABLE EXPENDITURE Rs.50,24,658/- ON PRIVATE PRINTING

3. PINNING AND BINDING WORK OF TAMILARASU MAGAZINE DONE THROUGH PRIVATE AGENCIES – AVOIDABLE EXPENDITURE OF Rs.2,16,000/- (Approx) ANNUALLY.

SECTION - B:-

4. CONSTRUCTION OF TAMILARASU PRESS AND BUILDING BELONGING TO THE LAND OF M.G.R GOVERNMENT FILM AND TELEVISION INSTITUTE, – AUDIT REMARKS

5. AVOIDABLE ANNUAL EXPENDITURTE OF Rs.6.70 LAKH ON PAYMENT TO POSTAL SORTING ASSISTANTS

6. DEVIATION FROM THE PROCEDURE - PERMISSION NOT OBTAINED FROM THE GOVERNEMNT – RATIFICATION TO BE OBTAINED.

7. NON PROVISION FOR POWER BACK UP FACILITY IN TAMIL ARASU PRESS

8. NON ENTERING INTO AGREEMENT BETWEEN THE GOVERNMENT AND THE AGENCY WHO SUPPLIED MACHINERIES

9. NON INSURANCE OF BUILDING AND MACHINERY

SECTION - A

1. AVOIDABLE EXPENDITURE OF Rs.72,98,550/- TOWARDS PRINTING IN PRIVATE PRESSES. The Tamil Arasu press prints Tamil Arasu magazine, which is a media taking various government schemes, welfare measures, welfare assistance, Govt. achievements and plans to the public. The press was modernised at a cost of Rs. 4,90,00,000 (at Rs. 4 crore towards purchase of a Four Colour Offset Press, during 2015 and Rs.90 lakh towards purchase of Computer to the Plate(CTP) machine during 2014). The following publications were printed using outside agencies. Sl. Invoice No.and Particulars Amount Printing and No. Date supply done by 1. 9357 dt 5/11/15 Inspiring Speeches of Hon’ble 6,45,000 Excellent 2 CM (2011-2014) 3000 copies publicities 2. 9356 dt 5/11/15 Inspiring Speeches of Hon’ble 6,40,000 Excellent 2 CM (2013-2014) 5000 publicities copies(volume 3) 3 9355 dt 5/11/15 Inspiring Speeches of Hon’ble 6,60,000 - Do- CM (2012-2013) 5000 copies 4 97 dt 4/11/15 Inspiring Speeches of Hon’ble 6,00,000 Efficient Litho CM 4th year achievements(tamil) Press, Chennai 2 5000 copies 5. 98 dt 4/11/15 Four achievements of the 4,80,000 -do- government headed by the Hon’ble CM, TN ( 3000 copies) 6 466 dt 4/11/2015 Tamil Nadu in the Forefront 6,20,550 1st Print, Chennai 2 7. 459 dt 4/11/15 Letters from Hon’ble CM to 5,70,000 Hon’ble PM 2011-15 Hon’ble CM’s Stories during Speech 3,40,000 8 460 dt 4/11/15 Hon’ble CMs Welfare Measures 3,30,000 1st Print success stories(5000 copies) Inspiring Speeches of Hon’ble 650000 CM (2011-2012) 5000 copies(volume 1)

9. 458 dt 4/11/15 Hon’ble CM’s 4 year 7,20,000 -do- achievements in 16 districts -do- Hon’ble CMs speeches 165000 -do- 10 457/4/11/15 Hon’ble CM’s 4th year 7,38,000 -do- achievements in 16 districts -do- Awards and accolades of TN 140000 -do Government

Audit scrutiny of the purchase files of the CTP machine and Four Colour Offset Press revealed that the purchases were made in 2014 and 2015. It may be stated to audit why the above books were printed in private publications and not utilising the resources of men and material available in Tamil Arasu Press. The avoidable expenditure of Rs. 72,98,550 towards printing of the Hon’ble CMs speeches/achievements through advertising agencies of private institutions is brought to notice.

On this being pointed out it was stated that, due to non availability of machinery, lack of time and high-tech quality of printing the achievements issue given to private agencies as per approval of DIPR. The reply is not accepted. Para remains.

2. AVOIDABLE EXPENDITURE OF Rs.50,24,658/- ON PRIVATE PRINTING It was proposed to publish 7 special books in connection with the completion of 3 years of the then Chief Minister in office. The expenditure was proposed to be incurred under the HOA 2220-60-110-AC. In this connection, it is pointed out that only Rs.80 lakh was allocated in this HOA. The expenditure as shown in annexure was incurred in printing the special books in private presses through private advertising agencies. In this connection it is pointed out that Papers for printing these books were procured for Rs.11,51,126 and the total expenditure incurred was Rs.50,24,658.

Audit scrutiny revealed that the total sanction by the Government under HOA 2220-6—110-AC was Rs.80 lakh only, and excess expenditure incurred for the above work was Rs.5024658(Printing of books plus cost incurred towards supplying paper). It may be stated to audit as to why the printing of books were made outside Tamilarasu press and the printers and human resource of the press were not utilised. It is brought to notice that had the Books were printed in Tamilarsu press, the excess expenditure could have been avoided, thereby avoidance of excess expenditure over budget sanction. In this connection it is also pointed that similar avoidable expenditure of Rs 72,98,550 /- was made during the year 2014-15. Recurrence of such avoidable expenditures may be avoided in future.

In reply it was stated that, private printing was carried out after getting permission from DIPR. The reply is not tenable. Para remains. 3. PINNING AND BINDING WORK OF TAMILARASU MAGAZINE DONE THROUGH PRIVATE AGENCIES – AVOIDABLE EXPENDITURE OF Rs.2,16,000/- (Approx)ANNUALLY. It was seen from the contingent bills (CB.No.12/16-17) for the year 2016-17 and relevant records of the O/O Dy. Director(Publications), Tamilarasu Press that payment of an amount of Rs.18,900/- towards Tamilarasu March 2016 issues 36000 Nos. for Binding & Pinning work done by M/S. Nagaraj and Company Pvt. Ltd., Chennai-96. It was also noticed that while shifting from the earlier office, i.e., Tamilnadu Printing Press., the Pinning Machine which is used to pin the magazines was handed over to the Printing Press, Stationery Department. As the pinning machinery not available in the Tamilarasu press the pinning work is done through outside private agency by incurring Rs.18,000/- approximately per month.

Though Government had sanctioned crores of rupees for modernisation of the Press and printing, work had been all the outsourced and monthly magazine sent to a private company for Binding & Pinning work every month is brought to notice.

On this being pointed out it was replied that, action is being taken to bring back the stitching machine from stationery and printing department, Chennai-2. Further action awaited.

4. CONSTRUCTION OF TAMIL ARASU PRESS AND BUILDING BELONGING TO THE LAND OF M.G.R. GOVERNMENT FILM AND TELEVISION INSTITUTE, VELACHERY – AUDIT REMARKS Vide G.O. (Ms) No.454, Revenue (LD4) Department, dated 13.10.2014, orders were issued for transferring 664973 Square Feet (6 Hectares 17 Ares and 77.5 Sq. Meters) land, as detailed below, to Information and Public Relation Department, for the construction of office of the M.G.R. Government Film and Television Institute, in Kaanagam Village, Velachery Taluk, . Total Extent Extent proposed T.S. Village Block Sq. Sq. No. Hec Ares Hec. Ares Metres Metres Kaana-gam 4 3 part 03 53 00.0 03 33 63.0 5 5 part 02 89 30.0 02 47 87.5 6 2 part 16 04 56.0 00 29 71.0 00 06 56.0 T O T A L 06 17 77.5 OR 664973 SQ. FT

The guidelines value of Rs.3,500 per Sq. Ft. was taken up for valuation purpose and thus the cost of the land works out to Rs.232,74,05,500 (Rupees 232.74 crore).

Tamil Arasu Press and buildings, which were functioning in a separate building in the Omandarur Estate, was temporarily shifted to Stationery and Printing Department building at since the Tamil Arasu Press and buildings were demolished in 2008. Considering the requests of the Joint Director (Publications), for the construction of the new building and Press,Rs. 5,83,00,000 was financially sanctioned by the Government , vide G.O. Ms. No. 247, Tamil Development, Endowments and Information (Admn 4) department, dated 13.7.2012.

Further, considering the excess cost of Rs.39,27,298) (Rs.5,83,00,000plus Rs.39,27,298) Revised Financial Sanction of Rs. 6,22,27,298 was approved in G.O. Ms. No. 44, Tamil Development, Endowments and Information (Admn.4) department, dated 04.03.2015, by the Government. Utilisation Certificate to the effect that an amount of Rs.6,02,82,248 was spent for the purposes, had been submitted by the PWD. The balance amount of Rs.19,45,050 requires reconciliation. (Tamil Arasu Office cum Printing Press is constructed in T.S. No.5 (part) Block No. 5 of Kanagam Village, Chennai) (Ref. CMDA letter No C4/14234/2014, dated 20.01.2015).

It was seen from the records of the Tamil Arasu Press, Taramani, Chennai-113, that the area, where the Tamil Arasu office cum printing press got constructed, was actually lying in the grounds of the M.G.R. Government Film and Television Institute, in Kaanagam Village, Velachery Taluk, Chennai District (G.O. (Ms) No.454, Revenue (LD4) Department, dated 13.10.2014) belonging to that Institute. It may be elucidated to Audit how the Government allowed sanction and approval for construction of Office cum Printing Press, at a place belonging to MGR Film Institute.

In reply the department agreed to send necessary proposals. Further remarks awaited.

5. AVOIDABLE ANNUAL EXPENDITURE OF Rs.6.70 LAKH ON PAYMENT OF POSTAL SORTING ASSISTANTS It was seen from the contingent bills for the year 2016-17 and relevant records of the O/O Dy. Director(Publications), Tamilarasu Press that payment of an amount of Rs.41,000/- was made to Postal Department for engagement of postal sorting assistants to sort and dispatch the issues of Tamilarasu for the issue 16.06.2016 to 30.6.2016. As per records, Tamilarasu magazine having membership of 34,800 (June 2017) and required to be dispatched to the subscribers all over Tamilnadu, every month. At present 2 post of despatch clerks sanctioned and filled in this press. By engaging postal staff to dispatch the magazines, Tamilarasu Press is spending a recurring expenditure of Rs.6.70 lakh (Approx) annually which is avoidable. This is brought to notice.

It was replied that, sorting work into district and zone wise are being done by postal assistants since the commencement of the Tamilarasu Press. The reply is not tenable as the work was to be done by despatch clerks.

6. DEVIATION FROM THE PROCEDURE – PERMISSSION NOT OBTAINED FROM THE GOVERNMENT - RATIFICATION TO BE OBTAINED A scrutiny of File No. 146/P1/TAP/2010, revealed that 13 machines as detailed in the annexure, along with accessories, were transferred on non payment basis to Stationery and Printing Department, Chennai-2, vide proceedings of the Director No. 4274/Nir.4/2016, dated 23.03.2016, without getting prior permission of the Government.

Before the machinery were transferred, the concurrence of the Government should have been sought for. In the instant case, from the records produced to Audit, it was seen that such a procedure was not resorted to, which is not correct. Necessary ratification may be obtained from the Government for the deviation made and concurrence report submitted to Audit.

On this being pointed out it was replied that, as per proceeding of Director, Information and Public Relations Officer only were transferred and that Government will be addressed for ratification orders. Para remains.

7. NON PROVISION FOR POWER BACK UP FACILITY IN TAMIL ARASU PRESS Tamil Arasu magazines serve as a print medium of the Government, disseminating information about schemes, welfare activities and achievements of the Government of Tamil Nadu. Excerpts from speeches of Hon’ble Chief Minister, announcements of the Hon’ble minister, detailed write ups on development of the schemes in the districts, success stories of the beneficiaries and Government Orders of Public importance are published in Tamilarasu magazines. A new building for Tamilarasu was constructed at a cost of 6.23 crore in Taramani, Chennai 113. A Computer to Plate (CTP) Machine at a cost of Rs.90 lakh, and also a Four colour web offset machine for Tamilarasu press was purchased at a cost of 4.00 crore and installed in the Press for issue of colour magazine to VIP subscribers. Though lump sum provision for Electrification arrangements to the tune of Rs. 77 lakh had been provided in the Detailed Estimate for construction of Tamilarasu press audit scrutiny revealed that there were no provision done for power backup(Generator) the Tamilarasu premises. One generator used for the old machine of the Tamil Arasu press was condemned and in the absence of a suitable power back up facility the valuable machines purchased for Rs.4.90 crore remain un-utilised during power cut.

In reply it was stated that, the matter will be taken up with the government for necessary power back up facility, and proposal will be sent to government. Further report awaited.

8. NON ENTERING INTO AGREEMENT BETWEEN THE GOVERNMENT AND THE AGENCY WHO SUPPLIED MACHINERIES A scrutiny of the documents of the Tamil Arasu Press, revealed that no agreement was entered into upon, between the Agent i.e., M/s Technova IMAGING Systems (Pvt.) Ltd., and the Government, while the machinery for the Press were supplied. Even though, it was mentioned in the Tender document that there would be Guarantee of 2 years and then Warrantee of 2 years, the same cannot be enforced unless an agreement is signed by both the parties. The same has not been done till now. This is brought to notice

In this connection, audit scrutiny revealed that as the machinery is a specialized one, spares would be available only from the manufacturing company, AMC should have been entered into before lapsing Guarantee and warranty period. As seen from the budget no allocation have been found to have provided for AMC. As the machinery is a costly one (Rs.4 Crore), omission to take necessary steps in entering into AMC to safeguard Government interest is brought to notice.

It was replied that, action would be taken to enter in to AMC. Compliance is awaited.

9. NON INSURANCE OF BUILDING AND MACHINERIES Tamil Arasu Press cum Office Buildings contains Machinery worth crores of Rupees and Buildings. When the policies of the insurance were called for by Audit, the same were not produced for the reason that the same were not insured till today. If any exigency arises, it would be the responsibility of the person(s) in the Press & building to meet the expenses. Steps may be taken to insure the press, machineries etc, early and a compliance report may be sent to Audit.

Sl. No. Nature of the Item Value (Rupees) 01 Machinery 4,89,70,000 02 Buildings 6,02,82,248 T O T A L 10,92,52,248

On this being pointed out, Tamilarasu Press and office agreed to insure the building after sending necessary proposals to government. Further report is awaited.

PART III –

Follow up on findings outstanding from previous Reports - Nil

PART IV – Best Practices

Good Practices or innovations noticed during the course of audit - Nil

PART V – Acknowledgement a. Extent of audit units cooperation Audit acknowledges the cooperation extended by the Deputy Director (Publications), Tamilarasu Press and his officers & staff in conduct of current compliance audit. b. Details of persons holding the leadership position in the audit unit: Following officers held the charge of the post of Deputy Director (Publications), Tamilarasu Press, Chennai-113.

Sl. Name of the Officer From To No. Shri/ Smt 1 D.R.Jayashree 08.11.2011 19.11.2013 2 K.Shanthi 20.11.2013 15.07.2014 3 T.Maruthapillai 16.07.2014 24.11.2015 4 S.S.Saravanan 25.11.2015 02.06.2016 5 D.S.Subramaniam 03.06.2016 23.08.2016 6 K.Kannadasan 24.08.2016 31.08.2016 7 D.S.Subramaniam 01.09.2016 29.09.2016

8 C.Selvaraj 30.09.2016 13.06.2017 9 P.Balasubramanian 14.06.2017 Till date

For Sr. Deputy Accountant General/ GS

ANNEXURE TO PARA 6

Sl. Year of Make Value in Rupees Machine Name No Purchase M/s (Original cost) 01 Double Head Wire Stitching Machine 2008 Printgraph 1,14,400.00 02 Feeder Wire Stitching Machine 1972 Polygraph 4,44,047.82 Bremmer, Germany 03 Perfecta Cutting Machine 1973 - Do - 82,623.37 04 Folding Machine 1973 Germany 79,186.40 05 Dominant Two Colour Machinery 1996 Mahaveer & 28,90,993 Model 725 P/A Co. Pvt. Ltd.

15 KVA Capacity 3 Phase Stabilizer 1996 Electronic 36,800.00 Corporation Ltd 06 Mark 62 Web Offset Machine with 1999 Manu 32,92,848.00 power pack controller Enterprises 4,63,005.00 07 Protech – Plate Exposer & Processor 2007 Protech 8,83,300 Systems Ltd 08 Plate Exposure Autolux 6095 1992 Protech 27,918.00 Circuts & Systems Pvt. Ltd 09 Damper Roller Cleaning Machine 1994 31,729.20 (Indian Make) 10 Vertical Process Camera 1997 Memory 1,28,960.00 Image Maker 11 Contact Printer Accessories 1997 Refrographics 30,680.00 Supplies & Supplies 12 Film Processor 2007 Protech 4,39,857.27 Circuts & Stems Pvt. Ltd 13 Standard Calendar Rimming Machine 1975 Standard 1,473.50.00 Machinery & Co. TOTAL

ANNEXURE TO PARA 2

Sl Invoice No. and Particulars of Books Printed Amount of Remarks No. Date Expenditure Incurred 1 Inv 93 dt 30-6-14 Hon’ble CMsSpeech Vol 350850 Efficient litho Works 3(3000 nos) Chennai 2 2 -do- Hon’ble CMs 3 year 316200 -do- achievements(3000nos) 3. Inv 121 dt 30-6- Hon’ble CMsSpeech Tami vol 600750 Ist print , Ch 2 14 5(5000 nos) 4 Inv 122 dt Hon’ble CMsSpeech Vol 653250 -do- 30/6//14 6(5000 nos) 5 Inv 123 dt Letter from Hon’ble CM to 564525 -do- 30/6/2014 Hon’ble PM(2011-2014)(3000 nos) 6 Inv 6086 dt Ammavin Amudhu 373950 Excellent 2 Publicities 9/7/2014 Mozhigal(5000 nos) 7 -do- Hon’ble CMs 3 year 522000 -do- achievements(Tamil)(5000nos) 8 Inv 83 dt 2/6/14 Hon’ble CMsSpeech Vol 6 93200 1st Print, Ch 2 Hard Case & Perfect Binding(21 Nos) 9 -do- Hon’ble CMsSpeech (Eng)Vol 62700 -do- 3 Hard Case & Perfect Binding 21 Nos VAT at 5% 7795 10 Inv 84 dt 2/6/14 Ammavin Amudhu 75100 -do- Mozhigal(25 Nos) Hard Case and Perfect Bi nding 11 -do- Hon’ble CMs 3 year 56700 -do- achievements(Eng) Perfect Binding VAT 5% 6590 12 Inv 85 dt 2/6/14 Hon’ble CMs 3 year 56700 1st pring , ch 2 achievements(Tamil) Perfect Binding(21 nos) 13 -do- Letters from Hon’ble CM to 62000 -do- Hon’ble PM (May 2011 to March 2014)(20 nos) VAT 5% 5935 14 Inv 91 dt 2/6/14 Hon’ble CMs speech Vol 5 81530 Efficient Litho Works Hard case & perfect binding Ch 2 25 Nos VAT 5% 4076 TOTAL 3893851