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Compliance Performance
Gujarat

Report of 2009 - Financial Audit on Commercial of Government of Gujarat

Date on which Report Tabled:
Tue 30 Mar, 2010
Date of sending the report to Government
Government Type
State
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Sector Transport & Infrastructure,Power & Energy,Industry and Commerce,Agriculture and Rural Development

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 CAG. These accounts are also subject to supplementary audit conducted by CAG. Audit of Statutory corporations is governed by their respective legislations. As on 31 March 2009, the State of Gujarat had 57 working PSUs(53 companies and 4 Statutory corporations) and 13 non-working PSUs (all companies), which employed 1.16 lakh employees. The working PSUs registered a turnover of Rs. 50,289.48 crore for 2008-09 as per their latest finalised accounts. This turnover was equal to 13.90 per cent of State GDP indicating an important role played by State PSUs in the economy. The working PSUs earned profit of Rs. 2,404.89 crore for 2008-09 and had aggregate accumulated profit of Rs. 2,176.11 crore.

As on 31 March 2009, the investment(Capital and long term loans) in 70 PSUs was Rs. 48,137.78 crore. It grew by 24.82 per cent from Rs. 38,565.15 crore in 2003-04. Power, Finance and Manufacturing Sectors together accounted for 35.73 per cent of total investment in 2008-09 whereas other Sectors accounted for 64.27 per cent. The Government contributed Rs. 9,201.10 crore towards equity, loans and grants/subsidies during 2008-09.

During the year 2008-09, out of 57working PSUs, 40 PSUs earned profit of Rs. 2,586.06 crore and seven PSUs incurred loss of Rs. 181.17 crore. Major contributors to the profit were Gujarat State Fertilizers and Chemicals Limited (Rs. 739.18 crore), Gujarat State Petroleum Corporation Limited (Rs. 628 crore) and Gujarat Mineral Development Corporation Limited (Rs. 369.90 crore). The heavy losses were incurred by Gujarat State Financial Corporation (Rs. 109.13 crore) and Gujarat State Road Transport Corporation (Rs. 66.10 crore).

Though the PSUs were earning profits, there were instances of various deficiencies in the functioning of PSUs. A review of three years' Audit Reports of CAG shows that the State PSUs' losses of Rs. 1,723.63 crore and infructuous investments of Rs. 204.91 crore were controllable with better management.

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