Audit Reports
Chhattisgarh
Report No 2 of 2015 - Public Sector Undertakings Government of Chhattisgarh
Overview
The Report deals with the results of audit of Government Companies and Statutory Corporation of Chhattisgarh for the year ended 31 March 2015.
Chapter-I of the Report gives functioning of State Public Sector Undertakings of Government of Chhattisgarh. As on 31 March 2015, the total investment in 21 PSUs was Rs.25947.51 crore, of which 95.50 per cent was in Power Sector. 12 PSUs earned aggregate profit of Rs.111.55 crore and six PSUs incurred aggregate loss of Rs.1344.19 crore as per their latest audited accounts. One PSU earned no profit no loss. The remaining two PSUs did not finalise their first accounts. Out of 24 accounts finalised by working PSUs during October 2014 to September 2015 the Statutory Auditors had given unqualified certificates for four accounts, qualified certificates for 19 accounts and adverse certificate for one account. This Report contains 12 paragraphs, one long paragraph and one Performance Audit involving financial effect of Rs.605.79 crore.
Chapter –II includes findings of Performance Audit on ‘Working of Chhattisgarh State Industrial Development Corporation Limited’. The main activity of the Chhattisgarh State Industrial Development Corporation Limited is to develop and maintain industrial areas and allot land to industrial units in and outside industrial areas for development of industries in the State. In respect of financial management due to delay in finalisation of annual accounts and short deposit of advance tax resulted in payment of penal interest of Rs.4.70 crore to Income Tax Department. In respect of development and maintenance of Industrial Areas the Company had fixed land premium and maintenance charges for allotment of land in industrial areas on abnormally lower side without considering actual cost of development and maintenance as was required under GoCG instructions. This has resulted in loss of Rs.171.70 crore to the Company. In respect of allotment of land during the period 2010-15, the Company had made 71 allotments for 3367 hectare land outside the industrial areas. In seven cases of allotment of land measuring 446.112 hectare the land premium was assessed at rates lower than the rates applicable as per GoCG guidelines. As a result, there was short recovery of Rs.262.64 crore. In six cases of allotment of land measuring 16.715 hectare in industrial areas for auxiliary/ commercial purpose the Company did not recover land premium at commercial rates as per Land Allotment Rules, 1974 as well as decision of Board of Directors of the Company resulting in loss of Rs.52.49 crore. As on 31 March 2015, user charges amounting to Rs.26.27 crore were outstanding from 1112 allottees for the period ranging upto five years. The Company had not taken action against the defaulting allottees for recovery of user charges as per provisions of lease deed. In respect of Internal control and monitoring the Company did not have Management Information System and internal audit wing. The internal audit conducted by hired chartered accountants was not comprehensive as it was limited to preliminary checking of accounts. The Company had also not conducted physical verification of assets during 2010 -15.
Chapter-III includes one Long Paragraph on “Irregularities in awarding of contracts at thermal power stations of Chhattisgarh State Power Generation Company Limited”. The irregularities pointed out are broadly resulted in loss of Rs.66.94 crore in 10 cases due to non-compliance with rules, directives, procedures, terms and conditions of contracts and loss of Rs.5.98 crore was incurred in one case due to defective/ deficient planning.