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Compliance Financial Performance
Maharashtra

Report of 2010 - Financial Audit on Commercial of Government of Maharashtra

Date on which Report Tabled:
Thu 21 Apr, 2011
Date of sending the report to Government
Government Type
State
Sector Finance,Transport & Infrastructure,Power & Energy,Industry and Commerce,Social Infrastructure

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 (CAG). These accounts are also subject to supplementary audit conducted by CAG. Audit of Statutory corporations is governed by their respective Legislation. As on 31 March 2010, the State of Maharashtra had 62 working Public Sector Undertakings (PSUs) (58 Companies and four Statutory corporations) and 23 non-working PSUs (all Companies), which employed 1.99 lakh employees. The working PSUs registered a turnover of Rs.40,872.98 crore in 2009-10 as per their latest finalised accounts. This turnover was equal to 4.91 per cent of the State GDP indicating an important role played by the State PSUs in the economy. The working PSUs incurred overall loss of Rs.1,360 crore in 2009-10 and had accumulated losses of Rs. 7,368.66 crore as on 31 March 2010.

As on 31 March 2010, the investment (Capital and long term loans) in 85 PSUs was Rs. 50,550.20 crore It grew by 132.08 percent from Rs.21,781.64 crore in 2004-05 mainly because of increase in investment in power sector. Power Sector accounted for 80 per cent of the total investment in 2009-10.The Government contributed Rs.5,509.86 crore towards equity, loans and grants/subsidies during 2009-10.

During the year 2009-10, out of 62 working PSUs, 36 PSUs earned profit of Rs.741.56 crore and 21 PSUs incurred loss of Rs.2,101.56 crore Four PSUs prepared their accounts on no profit no loss basis and one PSU was under construction and had not prepared profit and loss account The major contributors to profit were Maharashtra State Electricity Transmission Company Limited (Rs.368.03 crore), Maharashtra State Road Transport Corporation (Rs. 117.98 crore) and Maharashtra State Power Generation Company Limited (Rs.72.75 crore). Heavy losses were incurred by Maharashtra State 2,259.25 crore and infructuous of Rs.68.05 crore were controllable with better investments 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.

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