Compliance Financial Performance
Punjab

Report No. -5 of 2014 Government of Punjab - Report of the Comptroller and Auditor General of India on Social, General and Economic Sectors (Public Sector Undertakings)

Date on which Report Tabled:
Fri 20 Mar, 2015
Date of sending the report to Government
Government Type
State
Sector Transport & Infrastructure,Power & Energy,Social Infrastructure

Overview

This Report contains 17 paragraphs and two performance audits i.e., 'Working of Punjab State Warehousing Corporation' and 'Micro Hydel Projects in Punjab' involving controllable losses/ avoidable expenditure to the extent of RS 1,906.28 crore due to non-compliance with rules, directives and procedures; non safeguarding their financial interests; defective/ deficient planning and inadequate/ deficient monitoring etc. As on 31 March 2014, the investment in 52 Public Sector Undertakings (PSUs) was RS 21,551.05 crore consisting of RS 7,867.47 crore as capital and RS 13,683.58 crore as long term loans. The capital investment has grown by 104.70 per cent from RS 3,843.37 crore in 2009-10 to RS 7,867.47 crore in 2013-14 whereas the loan investment has grown by 6.78 per cent from RS 12,814.83 crore in 2009-10 to RS 13,683.58 crore in 2013-14. The thrust of investment in the State was mainly in power sector. Power Sector accounted for 84.73per cent of the total investment in 2013-14. The Government contributed RS 3,167.17 crore towards equity/loans and grants/subsidies during 2013-14.

Out of 29 working PSUs for which the accounts were received upto 30 September 2014, 12 PSUs earned profit of RS 498.42 crore and 12 PSUs incurred loss of RS 758.92 crore. Three working PSUs prepared their accounts on 'no profit no loss' basis and two working PSUs are yet to start commercial activities. The major contributors to profit were seven PSUs viz. Punjab State Power Corporation Limited (RS 260.55 crore), Punjab State Transmission Corporation Limited (RS 158.66 crore), Punjab Financial Corporation (RS 16.69 crore), Punjab State Forest Development Corporation Limited (RS 16.99 crore), Punjab State Container and Warehousing Corporation Limited (RS 13.24 crore), Punjab Small Industries and Export Corporation Limited (RS 15.08 crore) and Punjab Genco Limited (RS 12.07 crore). Heavy losses were incurred by four PSUs viz. Punjab State Grains Procurement Corporation Limited (RS 413.86 crore), Punjab State Warehousing Corporation (RS 267.86 crore), Punjab State Industrial Development Corporation Limited (RS 43.27 crore) and Pepsu Road Transport Corporation (RS 10.97 crore).

The quality of accounts of PSUs needs improvement. Of the 22 accounts of working companies forwarded to Audit during 2013-14, the statutory auditors had given unqualified certificates for seven accounts, qualified certificates for fourteen accounts, adverse certificate for one account. Two accounts of Statutory corporations finalised during October 2013 to 30 September 2014 received qualified certificates. The reports of the statutory auditors on internal control of the companies indicated several weak areas.

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