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Karnataka

Report No. 4 of 2013 - Performance Audit on Public Sector Undertakings of Government of Karnataka

Date on which Report Tabled:
Thu 14 Feb, 2013
Date of sending the report to Government:
Government Type:
State
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Sector -

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 the CAG. These accounts are also subject to supplementary audit conducted by the CAG. Audit of Statutory Corporations is governed by their respective legislations. As on 31 March 2012, the State of Karnataka had 76working Public Sector Undertakings - PSUs (70 Companies and 6 Statutory Corporations) and 14 non-working PSUs (all Companies), which employed 1.86 lakh employees. The State PSUs registered a turnover of Rs. 34,490.58 crore for 2011-12 as per their latest finalised accounts. This turnover was equal to 7.94 per cent of State Gross Domestic Product indicating the important role played by the PSUs in the economy. The PSUs had accumulated profit of Rs. 1,368.93 crore as per their latest finalised  accounts.

As on 31 March 2012, the investment (Capital and long term loans) in 90 PSUs was Rs. 66,712.87 crore. Infrastructure Sector accounted for about 52.41 per cent of total investment and Power Sector about 35.55 per cent in 2011-12. The Government contributed Rs. 11,853.81 crore towards equity, loans and grants / subsidies in 2011-12.

The working State PSUs earned a profit of Rs. 1,125.74 crore in the aggregate for 2011-12 as per their latest finalised accounts. The major contributors to profit were Hutti Gold Mines Company Limited (Rs. 294.95 crore), Karnataka Power Corporation Limited (Rs. 162.27 crore) and Mysore Minerals Limited (Rs. 122.84 crore). Heavy losses were incurred by Karnataka Neeravari Nigam Limited (Rs. 264.40 crore, The Mysore Paper Mills Limited (Rs. 84.78 crore), The Mysore Sugar Company Limited (Rs. 70.21 crore).
Audit noticed various deficiencies in the functioning of PSUs. A review of the latest Audit Report of the CAG shows that the there were controllable losses of Rs. 1,890.63 crore and infructuous investments of Rs. 112.95 crore were controllable with better management. Thus, there was tremendous scope to improve the functioning and enhance the profits. The PSUs can discharge their role efficiently only if they are financially self-reliant. There is a need for greater professionalism and accountability in the functioning of PSUs

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Last updated: 25 Nov 2024
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