Audit Reports
Rajasthan
Report No. 6 of 2014 -Performance and Compliance Audit on Public Sector Undertakings of Government of Rajasthan
Overview
Audit of Government Companies is governed by Section 619 of the Companies Act, 1956. The accounts of Government Companies are audited by the Statutory Auditors appointed by the Comptroller and Auditor General of India (CAG). These accounts are also subject to supplementary audit conducted by the CAG. The Audit of Statutory Corporations is governed by their respective legislations. As on 31 March 2014, Rajasthan had 48 working PSUs (45 Companies and three Statutory Corporations) and three non-working PSUs (all Companies), which employed around 1.03 lakh employees. The working PSUs registered a turnover of ^ 38953.84 crore during 2013-14 as per their latest finalised accounts. This turnover was equal to 7.58 per cent of the State Gross Domestic Product indicating an important role played by the State PSUs in the economy of the State.
As on 31 March 2014, the investment (Capital and long term loans) in 51 PSUs was RS 86903.73 crore. It grew by over 205.08 per cent from RS 28485.12 crore in 2008-09. Power Sector accounted for 90.53 per cent of the total investment in 2013-14. The Government contributed RS 10883.72 crore towards equity, loans and grants/subsidies during 2013-14. During the year 2013-14, out of 48 working PSUs, 21 PSUs earned profit of RS 943.61 crore and 21 PSUs incurred loss of RS 13173.95 crore. Out of the remaining PSUs, three PSUs had no profit and loss for the year 2013-14 while three PSUs did not submit annual accounts since inception. Further, out of 48 PSUs, 18 PSUs incorporated during 2006-07 to 2013-14 did not commence their business activities till 2013-14. The purpose of incorporation of these PSUs was therefore defeated. The Government should take appropriate action to commence business activities of these PSUs. The major contributors to profit were Rajasthan State Mines and Minerals Limited (RS 615.83 crore) and Rajasthan State Industrial Development and Investment Corporation Limited (RS 132.64 crore).
The heavy losses were incurred by the three power distribution companies (Jodhpur Vidyut Vitran Nigam Limited - RS 4285.26 crore, Jaipur Vidyut Vitran Nigam Limited - RS 4161.23 crore and Ajmer Vidyut Vitran Nigam Limited - RS 3904.73 crore). The losses were attributable to various deficiencies in the functioning of PSUs. A review of the present Audit Report of the CAG shows that the State PSUs incurred losses to the tune of RS 367.91 crore which were controllable with better management. Thus, there is tremendous scope to improve the functioning and enhance profits. 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.