Audit Reports
Gujarat
Report No. 1 of 2013 - Financial and Performance Audit on Public Sector Undertakings of Government of Gujarat
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 Comptroller and Auditor General of India (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 Gujarat had 66 working PSUs (62 companies and four Statutory Corporations) and 12 nonworking PSUs (all companies). The working PSUs, which employed 1.12 lakh employees, registered a turnover of Rs. 79,641.86 crore for 2011-12, as per their latest finalised accounts as of 30 September 2012. This turnover was equal to 13.47 per cent of State GDP indicating an important role played by State PSUs in the State economy. During 2011-12, the working PSUs earned an overall aggregate profit of Rs. 3,928.69 crore as per their latest finalised accounts as of 30 September 2012. The aggregate accumulated profits of all PSUs were Rs. 1,693.73 crore as per their latest finalised accounts.
As on 31 March 2012, the investment(capital and long-term loans) in 78 PSUs was Rs. 74,452.30 crore. It grew by 51.89 per cent from Rs. 49,018.22 crore in 2006-07. Besides the miscellaneous sector, the thrust of PSU investment was mainly in power sector, in which percentage share of investment increased from 31.97 in 2006-07 to 32.40 in 2011-12. The Government contributed Rs. 9,617.58 crore towards equity, loans and grants /subsidies to State PSUs during 2011-12.
During the year 2011-12, out of 66 working PSUs, 41 PSUs earned profit of Rs. 4,326.53 crore and ten PSUs incurred loss of Rs. 397.84 crore. Major contributors to the profit were Gujarat State Petroleum Corporation Limited (Rs. 941.71 crore), Gujarat State Petronet Limited (Rs. 769.02 crore) and Gujarat Mineral Development Corporation Limited (Rs. 717.72 crore). Heavy losses were incurred by Gujarat State Financial Corporation (Rs. 208.68 crore) and Gujarat State Road Transport Corporation (Rs. 159.74 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 the CAG shows that in the State PSUs' losses of Rs. 4,052.37 crore and infructuous investment of Rs. 166.77 crore were controllable 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.