Audit Reports
Kerala
Report No. 1 of 2015 - 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 Kerala State Financial Enterprise 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 2014, the State of Kerala had 109 working PSUs (104 companies and 5 Statutory corporations) and 16 non-working PSUs (including five under liquidation), which employed 1.25 lakh employees. The working PSUs registered a turnover of 7586.85 crore as per their latest finalised accounts. This turnover was equal to 4.36 per cent of State GDP indicating the important role played by State PSUs in the economy.
The working PSUs had accumulated loss of Rs. 284.62 crore as per their latest finalised accounts.As on 31 March 2014, the total investment (capital and long term loans) in 125 PSUs was Rs. 3897.60 crore.Of the 78 PSUs which hadfinalised their accounts during 2013-14, 43 PSUs earned profit of Rs. 545.32 crore and 34 PSUs incurred loss of Rs. 740.92 crore.
The major profit making PSUs were; Kerala State Beverages (Manufacturing and Marketing) Limited (Rs. 72.75 crore) Kerala Financial Corporation (Rs. 50.16 crore), Corporation Limited (Rs. 144.28 crore), Malabar Cements Limited (Rs. 21.37crore), The Kerala Minerals and Metals Limited (Rs. 14.11 crore) and Kerala State Industrial Development Corporation Limited (Rs. 18.97 crore). Though Kerala State Electricity Board showed a profit of Rs. 140.42 crore in compliance with the requirements of Central Electricity Regulatory Commission, its operations actuallyCommission, its operations actually resulted in a loss of Rs. 707.87 crore.