Audit Reports
Jharkhand
Report No. 2 of 2013 - Report of the Comptroller and Auditor General of India on Public Sector Undertakings (General, Social, Economic and Revenue Sectors) for the year ended 31 March 2012 of Government of Jharkhand
Overview
Audit of Government companies is governed by Section 619 of the Companies Act, 1956. The accounts of Government companies are audited by Statutory Auditors appointed by CAG. These accounts are also subject to supplementary audit conducted by CAG. Audit of the Statutory corporation (Jharkhand State Electricity Board) is governed by the Electricity Act, 2003. As on 31 March 2012, the State of Jharkhand had 13 working Public Sector Undertakings (PSUs) (12 companies and one Statutory corporation), which employed 7,588 employees. The working PSUs registered a turnover of Rs. 2,139.72 crore for 2011-12 as per their latest finalised accounts. This turnover was equal to 1.72 per cent of State GDP.
As on 31 March 2012, the investment (Capital and long term loans) in 13 PSUs cent from P 2,550.95 crore in 2006-07. Power Sector accounted for nearly 91.19 per cent of the total investment in 2011-12. The Government contributed Rs. 1,179.41 crore towards equity, loans and grants/subsidies during 2011-12.
During the year 2011-12, out of 13 PSUs, five PSUs earned aggregate profit of Rs. 22.94 crore and four PSUs incurred aggregate loss of Rs. 809.62 crore. The remaining four PSUs did not submit their first accounts. Heavy losses were incurred by the Jharkhand State Electricity Board and Tenughat Vidyut Nigam Limited to the extent of Rs. 722.82 crore and Rs. 86.59 crore as per their latest finalised accounts for the years 2010-11 and 1995-96 respectively. The losses of working PSUs were mainly attributable to deficiencies in financial management, planning,implementation of projects, operations and monitoring. A review of the latest Audit Reports of CAG shows that the State PSUs incurred losses to the tune of Rs. 4,280.54 crore and infructuous investment of Audit Report on Public Sector Undertakings (General, Social, Economic and Revenue Sectors) for the year ended 31 March 2012 P57.19 crore which were controllable with better management. Thus, there is tremendous scope to improve the functioning of PSUs and minimise losses.