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Compliance Financial Performance
Haryana

Report of 2010 - Financial Audit on Commercial of Government of Haryana

Date on which Report Tabled:
Fri 04 Mar, 2011
Date of sending the report to Government
Government Type
State
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Sector Finance,Transport & Infrastructure,Power & Energy,Industry and Commerce,Information and Communication,Agriculture and Rural Development,Social Welfare

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 2010, the State of Haryana had 21 working PSUs, (19 companies and two Statutory corporations) and seven nonworking PSUs (all companies). The State working PSUs, which employed 0.35 lakh employees, had registered a turnover of Rs. 15,934.48 crore for 2009-10 as per their latest finalised accounts. This turnover was equal to 7.61 per cent of State GDP indicating an important role played by State PSUs in the economy. However, the working PSUs incurred a loss of Rs. 1,612.37 crore for 2009-10 while all the State PSUs had overall accumulated losses of Rs. 5,086.93 crore.

As on 31 March 2010, the investment (capital and long term loans) in 28 PSUs was Rs. 24,307.45 crore. It grew by 146.84 per cent from Rs. 9,847.38 crore in 2004-05. Power Sector accounted for nearly 95 per cent of total investment in 2009-10. The Government contributed Rs. 3,840.38 crore towards equity, loans and grants/subsidies during 2009-10.

During the year 2009-10, out of 21 working PSUs, 14 PSUs earned profit of Rs. 293.52 crore and seven PSUs incurred loss of Rs. 1,905.89 crore. The major contributors to profit were Haryana State Industrial and Infrastructure Development Corporation Limited (Rs. 60.70 crore), Haryana Power Generation Corporation Limited (Rs. 66.22 crore) and Haryana Vidyut Prasaran Nigam Limited (Rs. 127.30 crore). The heavy losses were incurred by Uttar Haryana Bijli Vitran Nigam Limited (Rs. 1,107.54 crore) and Dakshin Haryana Bijli Vitran Nigam Limited (Rs. 779.01 crore).

The losses are mainly 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. 821.66 crore and infructuous investments of Rs. 44.83 crore were controllable with better management. Thus, there is tremendous scope to improve the functioning and minimise/eliminate losses. The PSUs can discharge their role efficiently only if they are financially self-reliant. There is a need for professionalism and accountability in the functioning of PSUs.

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