Audit Reports
Kerala
Report No. 3 of 2014 - Performance Audit on Public Sector Undertakings of Government of Kerala
Overview
The State Public Sector Undertakings (PSUs), consisting of State Government companies and Statutory corporations, are established to carry out activities of a commercial nature, while keeping in view the welfare of the people. Audit of Government companies is governed by Section 619 of the Companies Act, 1956. The accounts of the State Government Companies are audited by Statutory Auditors, who are appointed by CAG as per the provisions of Section 619(2) of the Companies Act, 1956. These accounts are also subject to supplementary audit conducted by CAG, as per the provisions of Section 619 of the Companies Act, 1956. Audit of Statutory corporations is governed by their respective legislations. As on 31 March 2013, the State of Kerala had 101 working PSUs (96 companies and 5 Statutory corporations)and 16 non-working PSUs (including four under liquidation), which employed 1.27 lakh employees. The working PSUs registered a turnover of Rs. l8486.21 crore as per their latest finalised accounts. This turnover was equal to 5.09 per cent of State GDP indicating the important role played by State PSUs in the economy. The PSUs had accumulated profit of Rs. 289.81 crore as per their latestfinalised accounts.
As on 31 March 2013, the total investment (capital and long term loans) in 117 PSUs was Rs. 10863.25 crore.
Of the 78 PSUs which hadfinalised their accounts during 2012-13, 45 PSUs earned profit of Rs. 666.86 crore and 31 PSUs incurred loss of Rs. 607.34 crore. The major profit making PSUs were; Kerala State Beverages(Manufacturing and Marketing) Corporation Limited (Rs. 149.79 crore), Kerala Financial Corporation (Rs. 67.73 crore), The Kerala Minerals and Metals Limited (Rs. 35.89 crore) Malabar Cements Limited (Rs. 34.59 crore) and Kerala State Industrial Development Corporation Limited Though Kerala State Electricity Board(Rs. 18.97crore). showed a profit of Rs. 240.72 crore in compliance with the requirements Central Electricity Regulatory of Commission, its operations actually resulted in a loss of Rs. 3758.17 crore.