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Kerala

Report No. 1 of 2025 - Audit Report on State Public Sector Enterprises for the period ended March 2023, Government of Kerala

Date on which Report Tabled:

Tue 25 Mar, 2025

Date of sending the report to Government

Tue 11 Mar, 2025

Government Type

State

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Sector Finance

Overview

Chapter I: Financial Performance of SPSEs

This chapter deals with the analysis of the financial position and performance of 131 working SPSEs under the audit jurisdiction of the Comptroller and Auditor General of India as on 31 March 2023. It covers the investment by the State Government, financial performance of SPSEs, erosion of net worth, accumulated losses, dividend payout of SPSEs and return on investment

Chapter II: Oversight Role of CAG

This chapter deals with the oversight role of the Comptroller and Auditor General (CAG) in SPSEs. It discusses the submission status of accounts for audit, delays in submission and pendancy of accounts.

Chapter III: Corporate Governance

This chapter deals with the corporate governance practices in SPSEs. It presents an overview of compliance with governance requirements, including the submission of governance details by companies and statutory corporations. The chapter also discusses the role and effectiveness of Audit Committees, highlighting issues such as the absence of committees in several SPSEs and lapses in internal financial control evaluations

Chapter IV: Corporate Social Responsibility

This chapter reviews the Corporate Social Responsibility (CSR) activities of SPSEs. It focuses on the constitution of CSR Committees and the formulation of CSR policies. The assessment identifies gaps, such as the absence of annual CSR plans in some companies and variations in CSR fund utilization.

Chapter V: Compliance Audit Paragraphs

This chapter presents significant compliance audit findings of SPSEs. It discusses deviations in the procurement process, deficiencies in bid evaluations, and circumvention of tendering procedures in certain enterprises, leading to extra expenditures and financial losses in Kerala Minerals and Metals Limited. The chapter also highlights lapses in credit appraisals and policy deviations in the non-banking financial activities of Kerala State Industrial Development Corporation Limited, resulting in revenue losses and the sanctioning of ineligible loans. It covers avoidable expenditure due to delayed GST payments and discusses extra expenditure on the procurement of white clinker by Travancore Cements Limited. Additionally, it highlights the undue benefit earned by Handicrafts Development Corporation of Kerala Limited and details avoidable GST payments by Kerala State Road Transport Corporation due to the non-availing of exemptions.

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Report No. 1 of 2025 - Audit Report on State Public Sector Enterprises for the period ended March 2023, Government of Kerala
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