Audit Reports
Gujarat
Report No. 3 of 2014 - Financial 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 2013, the State of Gujarat had 69 working PSUs (65 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. 91,309.63 crore during 2012-13, as per their latest finalised accounts as of 30 September 2013. This turnover was equal to 13.09 per cent of State GDP indicating an important role played by State PSUs in the State economy. During 2012-13, the working PSUs earned an overall aggregate profit of Rs. 4,041.06 crore as per their latest finalised accounts as of 30 September 2013. The aggregate accumulated profits of all PSUs were Rs. 2,865.09 crore as per their latest finalised accounts.
As on 31 March 2013, the investment (capital and long-term loans) in 81 PSUs was Rs. 97,472.56 crore. It grew by 91.90 per cent from Rs. 50,793.35 crore in 2007-08. Besides the other sector, the thrust of PSU investment was mainly in power sector in which share of investment increased from 30.34 per cent in 2007-08 to 31.12 per cent in 2012-13. The Government contributed Rs. 15,340.87 crore towards equity, loans and grants/subsidies to State PSUs during 2012-13.
During the year 2012-13, out of 69 working PSUs, 42 PSUs earned profit of Rs. 4,468.00 crore and 19 PSUs incurred loss of Rs. 426.94 crore. Major contributors to the profit were Gujarat State Petroleum Corporation Limited (Rs. 1,247.14 crore), Gujarat Mineral Development Corporation Limited (Rs. 924.07 crore) and Gujarat State Petronet Limited (Rs. 825.72 crore). Heavy losses were incurred by Gujarat State Road Transport Corporation (Rs. 141.99 crore) and Gujarat State Financial Corporation (Rs. 113.17 crore) and Alcock Ashdown (Gujarat) Limited (Rs. 76.48 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 in the State PSUs'losses of Rs. 4,891.92 crore and infructuous investment of Rs. 24.52 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.