Audit Reports
Madhya Pradesh
Report of 2010 - Report of the Comptroller and Auditor General of India Commercial for the year ended 31 March 2010 - Government of Madhya Pradesh
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 Statutory corporations is overned by their respective legislations. As on 31 March 2010, the State of Madhya Pradesh had 47 working PSUs (43 companies and four Statutory corporations) and 10 non-working PSUs (all companies), which employed 0.47 lakh employees. The working PSUs registered a turnover of Rs. 26,067.37 crore for 2009-10 as per their latest finalised accounts as on 30 September 2010. This turnover was equal to 13.41 per cent of State GDP indicating an important role played by State PSUs in the state economy.
As on 31 March 2010, the investment (Capital and long term loans) in 57 PSUs was Rs. 20,979.65 crore. It grew by 272.14 per cent from Rs. 5,637.59 crore in 2004-05. Power Sector accounted for 86.46 per cent of total investment in 2009-10. The State Government contributed Rs. 4,576.33 crore towards equity, loans and grants/subsidies to State PSUs during 2009-10.Out of 47 working PSUs, 27 PSUs earned profit of Rs. 147.82 crore and 11 PSUs incurred loss of Rs. 3,633.82 crore as per their latest finalised accounts as on 30 September 2010. Six companies did not submit their first accounts and two companies had not started their commercial operation while one company capitalised the expenditure in Investments in PSUs Performance of PSUs balance sheet. The State PSUs had accumulated losses of Rs. 11,492.22 crore.
The losses are attributable to various deficiencies in the functioning of PSUs. A review of three years Audit Reports of CAG shows that the State PSUs' losses of Rs. 425.41 crore and infructuous investments of Rs. 44.54 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.