Audit Reports
Punjab
Audit Report (Commercial), Punjab for the Year 2009-10
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 Punjab had 31 working PSUs (26 companies and 5 Statutory corporations) and 19 non-working PSUs (all companies), which employed 0.77lakh employees. The working PSUs registered a turnover of RS 22,399.29 crore for 2009-10 as per their latest jinalised accounts. This turnover was equal to 11.64 per cent of the State GDP indicating an unportant role played by the State PSUs in the economy. However, the working PSUs incurred overall loss of RS 1,202.88 crore in 2009-10 and had accumulated losses of RS 10,387.87 crore.
As on 31 March 2010, the investment (Capital and long term loam) in 50 PSUs was RS 16,658.20 crore. It grew by over 18 per cent from RS 14,023.58 crore in 2004-05 mainly became of increase in investment in power sector. Power Sector accounted for nearly 87 per cent of the total investment in 2009-10. The Government contributed RS 3,317.98 crore towards equity and grants/subsidies during 2009-10. During the year 2009-10, out of 31 working PSUs, 15 PSUs earned profit of RS 80.17 crore and 11 PSUs incurred loss of RS 1,283.05 crore. Three working PSUs prepared their accounts on "no profit no loss basis" while other two working PSUs had not started their commercial activities. The major contributors to profit were Punjab Tourism Development Corporation Limited (RS 27.50 crore) and Punjab State Container and Warehousing Corporation Limited (RS 12.66 crore).
The heavy losses were incurred by Punjab State Electricity Board (RS 1,041.10 crore) and Punjab State Grains Procurement Corporation Limited (RS 85.96 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 2,567.57 crore and infructuous investments of RS 5.15 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.