Audit Reports
Odisha
Report No. 1 of 2014 - Performance Audit on Public Sector Undertakings of Government of Odisha
Overview
Audit of Government Companies is governed by Section 619 of the Companies Act, 1956. 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 2013, the State of Odisha had 37 working PSUs (34 Companies and 3 Statutory Corporations) and 28 non-working PSUs (all Companies), of which working PSUs employed 0.21 lakh employees. Working PSUs registered a turnover of RS 11,294.70 crore for 2012-13 as per their latest finalised accounts as on 30 September 2013. This turnover was equal to 4.37 per cent of State GDP indicating an important role played by State PSUs in the economy. Working PSUs earned an aggregate profit of RS 890 crore for 2012-13 and had accumulated profits of RS 1,764.14 crore as on 31 March 2013.
As on 31 March 2013, investment (capital and long term loans) in 65 PSUs was RS 10,471.51 crore. It increased by 26.69 per cent from RS 8,265.25 crore in 2007-08 to RS 10,471.51 crore in 2012-13. Increase in investment was mainly due to increase in capital and loan in power sector. Share of investment in power sector marginally increased from 76.55 per cent in 2007-08 to 81.18 per cent in 2012-13. During 2012-13, out of 37 working PSUs, 23 PSUs earned profit of RS 1,888.39 crore and seven PSUs incurred loss of RS 998.39 crore as per their latest finalised accounts as on 30 September 2013. One PSU prepared its accounts on 'no profit no loss' basis while six PSUs have not yet started their operation/commercial production.
Major contributors to profit were The Odisha Mining Corporation Limited (RS 1,383.46 crore), Odisha Power Generation Corporation Limited (RS 250.24 crore), Odisha State Beverages Corporation Limited (RS 72.32 crore) and Odisha Hydro Power Corporation Limited (RS 58.92 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 27.54 crore). Losses are attributable to various deficiencies in the functioning of PSUs. A review of three years' (2010-13) Audit Reports of the CAG reflect losses to the extent of RS 12,493.70 crore and infructuous investments of RS 15.04 crore by State PSUs.