Audit Reports
Haryana
Report of 2009 - Financial Audit on Commercial of Government of Haryana
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 Haryana had 22 working PSUs, (20 companies and 2 Statutory corporations) and 6 non-working PSUs (all companies), which employed 0.38 lakh employees. The working PSUs registered a turnover of Rs. 18,424.04 crore for 2008-09 as per their latest finalised accounts. This turnover was equal to 10.21 per cent of State GDP indicating an important role played by State PSUs in the economy. However, the PSUs incurred a loss of Rs. 1,279.61 crore for 2008-09 and had accumulated losses of Rs. 4,543.71 crore.
As on 31 March 2009, the investment(Capital and long term loans) in 28 PSUs was Rs. 20,408.28 crore. It grew by over 116.16 per cent from Rs. 9,441.42 crore in 2003-04. Power Sector accounted for nearly 94 per cent of total investment in 2008-09. The Government contributed Rs. 3,927.33 crore towards equity, loans and grants/subsidies during 2008-09.
During the year 2008-09, out of 22 working PSUs, 15 PSUs earned profit of Rs. 152.48 crore and six PSUs incurred loss of Rs. 1,399.87 crore. The major contributors to profit were Haryana State Industrial and Infrastructure Development Corporation Limited (Rs. 60.70 crore) and Haryana Vidyut Prasaran Nigam Limited (Rs. 60.51 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. 265.69 crore).
The losses are 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. 635.84 crore and infructuous investments of Rs. 132.68 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 selfreliant. There is a need for professionalism and accountability in the functioning of PSUs.