Audit Reports
Maharashtra
Report of 2011 - Financial Audit on Commercial of Government of Maharashtra
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 Comptroller and Auditor General of India (CAG). These accounts are also subject to supplementary audit conducted by CAG. Audit of Statutory corporations is governed by their respective Legislation. As on 31 March 2011, the State of Maharashtra had 64 working Public Sector Undertakings (PSUs) (60 Companies and four Statutory corporations) and 22 non-working PSUs (all Companies), which employed 2.08 lakh employees. The working PSUs registered a turnover of Rs.49,058.92 crore in 2010-11 as per their latest finalised accounts. This turnover was equal to 4.76 per cent of the State GDP indicating an important role played by the State PSUs in the economy. The working PSUs earned an overall profit of Rs.213.64 crore in 2010-11 and had accumulated losses of Rs.8,401.88 crore as on 31 March 2011.
As on 31 March 2011, the investment (Capital and long term loans) in 86 PSUs was Rs.58,389.55 crore. It grew by 54.48 per cent from Rs.37,796.91 crore in 2006-07 mainly because of increase in investment in power sector. Power Sector accounted for 81 per cent of the total investment in 2010-11. The Government contributed Rs.2,313.58 crore towards equity, loans and grants/subsidies during 2010-11.
During the year 2010-11, out of 64 working PSUs, 37 PSUs earned profit of Rs.1,722.87 crore and 18 PSUs incurred loss of Rs.1,509.23 crore. Four PSUs prepared their accounts on no profit no loss basis and five PSUs were under construction and had not prepared profit and loss account. The major contributors to profit were Maharashtra State Power Generation Company Limited (Rs.800.02 crore) and Maharashtra State Electricity Transmission Company Limited (Rs.520.19 crore). Heavy losses were incurred by Maharashtra State Electricity Distribution Company Limited (Rs.782.77 crore), Maharashtra State Road Development Corporation Limited (Rs.422.55 crore) and MSEB Holding Company Limited (Rs.248.23 crore).The losses are attributable to various deficiencies in the functioning of PSUs. A audit of three years Audit Reports of CAG shows that the State PSUs losses of Rs.2,160.19 crore and infructuous investments of Rs.53.36 crore were controllable with better management. Thus, there is tremendous scope to improve the functioning and minimise/ eliminate losses. The PSUs can discharge their role efficiently only if they are financially self-reliant. There is a need for professionalism and accountability in the functioning of PSUs.