Audit Reports
Andhra Pradesh
Report No. 2 of 2013 - Performance and Compliance Audit on Public sector of Government of Andhra Pradesh
Overview
The State Public Sector Undertakings (PSUs), consisting of State Government Companies and Statutory Corporations, are established to carry out activities of a commercial nature, while keeping in view the welfare of the people. Audit of Government Companies is governed by Section 619 of the Companies Act, 1956. The accounts of the State Government Companies are audited by Statutory Auditors, who are appointed by CAG as per the provisions of Section 619(2) of the Companies Act, 1956. These accounts are also subject to supplementary audit conducted by CAG, as per the provisions of Section 619 of the Companies Act, 1956. Audit of Statutory Corporations is governed by their respective legislations.
As on 31 March 2012, the State of Andhra Pradesh had 50 working PSUs (47 companies and three Statutory Corporations) and 24 non-working PSUs (all companies). As of the same date, the investment (capital and long-term loans) in these 74 PSUs was Rs.57,982.25 crore. This investment has grown by 74.37 per cent from 2006-07 to 2011-12. The thrust of the investment was mainly in the power sector.
During 2011-12, the total outgo from the budget of the Government of Andhra Pradesh (GoAP) was Rs.10,027.27 crore, of which equity capital outgo was Rs.46.67 crore, loans outgo Rs.3,035.07 and grants/ subsidies Rs.6,945.53 crore. Notwithstanding this budgetary outgo, there was a total outstanding receivable amount from GoAP of Rs.13,129.00 crore as of March 2012 towards subsidy for high cost power in respect of the four power distribution companies.
There was a difference of Rs.2,953.92 crore in equity, Rs.2,563.87 crore in loans and Rs.4,842.94 crore in guarantees as per the Finance Accounts and the records of PSUs, which needs to be reconciled.