Audit Reports
Odisha
Report No. 2 of 2013 - Report of the Comptroller and Auditor General of India on Public Sector Undertakings for the year ended March 2012, Government of Odisha
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 the CAG. These accounts are also subject to supplementary audit conducted by the CAG. Audit of Statutory Corporations is governed by their respective legislations. As on 31 March 2012, the State of Odisha had 36 working PSUs (33 Companies and 3 Statutory Corporations) and 28 non-working PSUs (all Companies), of which working PSUs employed 0.23 lakh employees. The working PSUs registered a turnover of RS 11,450.16 crore for 2011-12 as per their latest finalised accounts as on 30 September 2012. This turnover was equal to 5.06 per cent of State GDP indicating an important role played by State PSUs in the economy. The working PSUs earned an aggregate profit of RS 1,296.02 crore for 2011-12 and had accumulated profits of RS 2,439.63 crore as on 31 March 2012.
As on 31 March 2012, the investment (capital and long term loans) in 64 PSUs was RS 10,058.34 crore. It increased by 5.29 per cent from RS 9,553.38 crore in 2006-07 to RS 10058.34 crore in 2011-12. The increase in investment was mainly due to increase in capital and loan in the power sector. The share of investment in the power sector marginally increased from 79.60 per cent in 2006-07 to 81.30 per cent in 2011-12. During the year 2011-12, out of 36 working PSUs, 23 PSUs earned profit of RS 2,305.81 crore and seven PSUs incurred loss of RS 1,009.79 crore as per their latest finalised accounts as on 30 September 2012. The major contributors to profit were The Odisha Mining Corporation Limited (RS 1,880.59 crore), Odisha Power Generation Corporation Limited (RS 206.29 crore), Odisha Hydro Power Corporation Limited (RS 95.61 crore) and Odisha State Beverages Corporation Limited (RS 40.02 crore).
Heavy losses were incurred by GRIDCO Limited (RS 936.81 crore), Orissa Rural Housing and Development Corporation Limited (RS 31.71 crore), IDCOL Kalinga Iron Works Limited (RS 27.03 crore) and Odisha Power Transmission Corporation Limited (RS 12.73 crore). The losses are attributable to various deficiencies in the functioning of PSUs. A review of three years' Audit Reports of CAG shows that the State PSUs' losses of RS 6485.01 crore and infructuous investments of RS 7.59 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.