Audit Reports
Kerala
Report No. 3 of 2012 - Performance Audit on Public Sector Undertakings of Kerala
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 Comptroller and Auditor General of India. These accounts are also subject to supplementary audit conducted by Comptroller and Auditor General of India. Audit of Statutory corporations is governed by their respective legislations. As on 31 March 2012, the State of Kerala had 99 working PSUs (94 companies and 5 Statutory corporations) and 17 non-working PSUs (all companies), which employed 1.25 lakh employees. The working PSUs registered a Turnover of Rs.16171.31crore as per their latest finalised accounts. This Turnover was equal to 4.95 per cent of State GDP indicating the important role played by State PSUs in the economy. The PSUs had Accumulated Profit of Rs.36.59 crore as per their latest finalised accounts.
As on 31 March 2012, the Investment (Capital and Long Term Loans) by the State Government in 116 PSUs was Rs.5880.68 crore. This has eroded over the years due to sustained losses and the present net worth of the PSUs as per their latest finalised accounts is only Rs.906.40 crore. The Government contributed Rs.1022.46 crore towards Equity, Loans and Grants / Subsidies during 2011-12.
Of the 76PSUs which had finalised their accounts during 2011-12, 44 PSUs earned profit of Rs.645.36 crore and 29 PSUs incurred loss of Rs.477.88 crore.The major chunk of profit was contributed by The Kerala Minerals and Metals Limited (Rs.115.45 crore), Kerala Financial Corporation (Rs.50.46 crore), Malabar Cements Limited (Rs.30.81 crore), Kerala State Financial Enterprises Limited (Rs.27.94crore) and Kerala State Industrial Development Corporation Limited (Rs.26.15 crore). Heavy loss makers were Kerala State Road Transport Corporation (Rs.376.89crore) and The Kerala State Cashew Development Corporation Limited (Rs.68.50 crore).
Though Kerala State Electricity Board showed a profit of Rs.240.71 crore in compliance with the requirements of Central Electricity Regulatory Commission, its operations actually resulted in a loss of Rs.1693.42 crore.