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Compliance Financial Performance
Madhya Pradesh

Report of 2009 - Report of the Comptroller and Auditor General of India for the year ended 31 March 2009 (Commercial) of Government of Madhya Pradesh

Date on which Report Tabled:
Tue 23 Mar, 2010
Date of sending the report to Government
Government Type
State
Sector Finance,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 Madhya Pradesh had 40 working PSUs (36 companies and 4 Statutory corporations) and 10 non-working PSUs (all companies), which employed 0.36 lakh employees. The working PSUs registered a turnover of Rs. 20,735.68 crore for 2008-09 as per their latest finalised accounts. This turnover was equal to 12.76 per cent of State GDP indicating an important role played by State PSUs in the economy.

As on 31 March 2009, the investment (Capital and long term loans) in 50 PSUs was Rs 17,447.93 crore. It grew by 239.81 per cent from Rs. 5,134.61crore in 2003-04. Power Sector accounted for 83.85 per cent of total investment in 2008-09. The State Government contributed Rs 2,940.55 crore towards equity, loans and grants/subsidies during 2008-09. During the year 2008-09, out of 40 working PSUs, 26 PSUs earned profit of Rs 113.70 crore and 10 PSUs incurred loss of Rs 3,233.83 crore for remaining four companies first accounts were not received. Working PSUs had accumulated losses of Rs. 6,497.80 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. 365.76 crore and inffuctuous investments of Rs. 22.41 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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