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Financial
Himachal Pradesh

Report of 2011 - Financial Audit on Commercial of Government of Himachal Pradesh

Date on which Report Tabled:
Date of sending the report to Government
Government Type
State
Sector -

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 2011, the State of Himachal Pradesh had 19 working PSUs (17 companies and two Statutory corporations) and three non-working PSUs (all companies), which employed 36,580 employees. The working PSUs registered a turnover of Rs. 4,964.59 crore for 2010-11 as per their latest finalised accounts. This turnover was equal to 9.47 per cent of State GDP indicating an important role played by the State PSUs in the economy. However, the working PSUs incurred overall loss of Rs.189.15 crore in 2010-11 and had accumulated losses of Rs. 1,199.80 crore.

As on 31 March 2011, the investment (Capital and long term loans) in 22 PSUs was Rs. 5,737.15 crore which increased by over 28.46 per cent from Rs. 4,465.96 crore in 2005-06. Power sector accounted for over 80 per cent of the total investment in 2010-11. The Government contributed Rs. 685.40 crore towards equity, loans and grants/subsidies during 2010-11.

Himachal Pradesh Tourism Development Corporation Limited (Rs. 3.08 crore). Heavy losses were incurred by Himachal Pradesh State Electricity Board (Rs. 152.62 crore), Himachal Road Transport Corporation (Rs. 23.07 crore) and Himachal Pradesh Financial Corporation (Rs. 14.64 crore). The losses were 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. 1,691.03 crore and infructuous investment of Rs. 3.69 crore were management. Thus, there is tremendous controllable with better 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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