Audit Reports
Madhya Pradesh
Report No. 4 of 2011 - 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 governed by their respective legislations. As on 31 March 2011, the State of Madhya Pradesh had 51 working PSUs (47 Companies and 4 Statutory Corporations) and 10 non-working PSUs (all Companies), which employed 0.47 lakh employees. The working PSUs registered a turnover of Rs. 31637.50 crore in 2010-11 as per their latest finalised accounts as on 30 September 2011.
This turnover was equal to 11.65 per cent of State GDP indicating an important role played by State PSUs in the economy.As on 31 March 2011, the Investment (Capital and Long Term Loans) in 61 PSUs was Rs. 24400.17 crore. It grew by 28.26per cent from Rs. 19023.31 crore in 2005-06. Power Sector accounted for 87.76 per cent of total investment in 2010-11. The State Government contributed Rs. 4517.79 crore towards Equity, Loans and Grants/Subsidies to State PSUs during 2010-11.
During the year 2010-11, out of 51 working PSUs, 25 PSUs earned profit of Rs. 176.21 crore while two PSUs were in the situation of no profit and no loss and 14 PSUs incurred loss of Rs. 2175.36 crore as per their latest finalised accounts as on 30 September 2011. Five Companies did not submit their first accounts and four Companies had not started their commercial operation while one company capitalized the expenditure in balance sheet. The State PSUs had Accumulated Losses of Rs. 13923.97 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. 1173.31 crore and infructuous investments of Rs. 42.83 crore could have been controlled 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.