Audit Reports
Gujarat
Report of 2010 - Financial Audit on Commercial of Government of Gujarat
Overview
Audit of Government companies is governed by Section 619 of the Companies Act, 1956. The accounts of Governmentcompanies 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 2010, the State of Gujarat had 58 working PSUs (54 companies and four Statutory corporations) and 13 non-working PSUs (all companies). The working PSUs which employed 1.13 lakh employees, had registered a turnover of Rs. 58,451.76 crore for 2009-10 as per their latest finalised accounts as on 30 September 2010. This turnover was equal to 15.34 percent of State GDP indicating an important role played by State PSUs in the State economy. The working PSUs earned an overall aggregate profit of Rs. 2,404.22 crore for 2009-10 and had aggregate accumulated loss of Rs. 262.16 crore.
As on 31 March 2010, the investment (capital and long term loans) in 71 PSUs was Rs. 60,396.37 crore. It grew by 46.42 per cent from Rs. 41,248.53 crore in 2004-05. The thrust of PSU investment was mainly in power sector, in which percentage share of investment increased from 26.87 in 2004-05 to 30.31 in 2009-10. The Government contributed Rs. 8,078.91 crore towards equity, loans and grants/ subsidies to State PSUs during 2009-10.
During the year 2009-10, out of 58 working PSUs, 40 PSUs earned profit of Rs.2,672.93 crore and nine PSUs incurred loss of Rs. 268.71 crore. Major contributors to the profit were Gujarat State Petronet Limited (Rs. 626.89 crore),Gujarat Mineral Development Corporation Limited (Rs. 406.08 crore), Gujarat State Petroleum Corporation Limited (Rs. 403.02 crore) and Gujarat
State Fertilizers and Chemicals Limited (Rs. 389.12 crore). The heavy losses were incurred by Gujarat State Financial Corporation (Rs. 129.38 crore) and Gujarat State Road Transport Corporation (Rs. 94.57 crore).Though the PSUs were earning profits, there were instances of various deficiencies in the functioning of PSUs. A review of three years Audit Reports of CAG shows that the State PSUs losses of Rs. 2,266.59 crore and infructuous investment of Rs. 317.90 crore were ontrollable with better management. Thus, there is tremendous scope to improve the functioning and enhance profits/ minimise losses. 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.