One positive feature of the State reorganisation work is that it has made all the 89 companies and corporations get their audit reports updated to project accurate assets and liabilities for distribution between Telangana and the residuary State of Andhra Pradesh before the appointed day, June 2.
Audit reportsThe government has given a mandate to all the State-owned corporations to be ready with their latest audit reports or at least with trial balance sheets by the month-end and list out assets and liabilities for distribution between the two States. A few like the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) have the latest audit report for 2012-13. It is common for a majority of corporations to submit delayed audited reports of four to five years old.
Sources said the list of 89 corporations included in the Ninth Schedule of the Reorganisation Act is not final and more corporations are being added to the list. So far, the number has touched 125 and the data will be sent to the Union government. Senior officials dismissed reports that some defunct corporations would be excluded. “Our job is to include all the corporations as they exist now. It is for the political establishments to take a call,” a senior official said.
The corporations have been directed to prepare a file inventory and photo copies of files, organisational charts for the two States, allocation of employees as per C.R. Kamalnathan’s guidelines to be announced soon. They also should complete de-merger of the companies and corporations by following the due procedure under the relevant act ie Companies Act, Societies Act, Statutory law etc., by March 29.
One thumb rule for distribution of assets is all assets located in particular region will go to that State and assets of common nature will be distributed between the two States in the ratio of 58:42.
Contingent liabilitiesThe APIIC for instance has 44,500 files and assets worth Rs.8,910 crore and residuary Andhra Pradesh share will be about Rs. 5,212 crore and Telangana’s share Rs. 3,698 crore. However, of investments worth Rs. 1,237 crore involved in court cases related to Emaar etc., Rs. 916 crore will go to Telangana and Rs. 321 crore to Andhra Pradesh.
One should also factor in anticipated contingent liabilities like farmers going to court on land, loans to be recovered from employees, taxes to be paid and ongoing disputes.
Sources said that before the appointed date, the corporations headed by one chairman or Managing Director would get a Joint MD or Chairman for Telangana State. Then it is for the elected governments to create respective boards. The Reorganisation Act provided an outer limit of one year for creating two new corporations, sources said.
