Audit Reports
Gujarat
Report of 2011 - Performance Audit on Commercial of Government of Gujarat
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 2011, the State of Gujarat had 60 working PSUs (56 companies and four Statutory corporations) and 13 non-working PSUs (all companies). The working PSUs which employed 1.09 lakh employees, had registered a turnover of Rs. 63008.20 crore for 2010-11 as per their latest finalised accounts as on 30 September 011. This turnover was equal to 12.24 per cent of State GDP indicating an important role played by State PSUs in the State economy. During 2010-11, the working PSUs earned an overall aggregate profit of Rs. 2,662.94 crore as per their latest finalised accounts as on 30 September 2011. The aggregate accumulated profits of all PSUs were Rs. 169.34 crore as per their latest finalised accounts.
As on 31 March 2011, the investment (capital and long term loans) in 73 PSUs was Rs. 67,351.96 crore. It grew by 44.64 per cent from Rs. 46,563.67 crore in 2005-06. Besides the Miscellaneous sector, the thrust of PSU investment was mainly in Power sector in which percentage share of investment increased from 31.44 in 2005-06 to 31.88 in 2010-11. The Government contributed Rs.9,266.03 crore towards equity, loans and grants/ subsidies to State PSUs during 2010-11.
During the year 2010-11, out of 60 working PSUs, 41 PSUs earned profit of Rs. 3,145.83 crore and eight PSUs incurred loss of Rs. 482.89 crore as per their latest finalised accounts as on 30 September 2011. Major contributors to the profit were Gujarat State Petronet Limited (Rs. 765.00 crore), Gujarat Mineral Development Corporation Limited (Rs. 584.61 crore) and Gujarat State Petroleum Corporation Limited (Rs. 403.62 crore). The heavy losses were incurred by Gujarat State Road Transport Corporation (Rs. 159.74 crore), Gujarat State Financial Corporation (Rs. 156.91 crore) and Alcock Ashdown (Gujarat) Limited (Rs. 131.44 crore).
Though the PSUs were earning profits, there were instances of various deficiencies in the functioning of PSUs. A review of three years' Audit Reports of CAG shows that the State PSUs' losses of Rs. 4,216.53 crore and infructuous investment of Rs. 300.98 crore were controllable with better management. Thus, there is tremendous scope to improve the functioning and enhance profits/ minimise losses. The PSUs can discharge their role efficiently only if they are financially self reliant. There is a need for greater professionalism and accountability in the functioning of PSUs.