Compliance Financial Performance
Punjab

Audit Report (Commercial), Punjab For the Year 2008-09

Date on which Report Tabled:
Mon 15 Mar, 2010
Date of sending the report to Government
Government Type
State
Sector Transport & Infrastructure,Power & Energy,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 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 2009, the State of Punjab had 33 working PSUs (28 companies and 5 Statutory corporations) and 17 non-working PSUs (all companies), which employed 0.80 lakh employees. The working PSUs registered a turnover of Rs. 19,138.60 crore for 2008-09 as per their latest finalised accounts. This turnover was equal to 12.04 per cent of the State GDP indicating an important role played by the State PSUs in the economy. However, the working PSUs incurred overall loss of Rs. 1,590.59 crore in 2008-09 and had accumulated losses of Rs. 9,181.22 crore.

As on 31 March 2009, the investment (Capital and long term loans) in 50 PSUs was Rs. 15,587.54 crore. It grew by over 12 per cent from Rs. 13,824.64 crore in 2003-04 mainly because of increase in investment in power sector. Power Sector accounted for nearly 86 per cent of the total investment in 2008-09. The Government contributed Rs. 2,720.94 crore towards equity and grants/subsidies during 2008-09. During the year 2008-09, out of 33 working PSUs, 15 PSUs earned profit of Rs. 40.24 crore and 13 PSUs incurred loss of Rs. 1,630.83 crore. Two working PSUs prepared their accounts on 'no profit no loss basis' while other two working PSUs were under construction. Besides, first accounts of one working PSU had not been received.

The major contributors to profit were Punjab Genco Limited (Rs. 11.30 crore) and Punjab State Container and Warehousing Corporation Limited (Rs. 10.12 crore). The heavy losses were incurred by Punjab State Electricity Board (Rs. 1,389.60 crore) and Punjab State Warehousing Corporation (Rs. 79.67 crore). The losses are attributable to various deficiencies in the functioning of PSUs. A review of three years Audit Reports of CAG shows that the state PSUs losses of Rs. 1,358.50 crore and infructuous investments of Rs. 21.56 crore were controllable with better 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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