Better management and financial self-reliance can, however, improve their sustainability, the government auditor said in a report on PSUs.
As on March 31, 2012, the government of Assam had 41 working PSUs, including 37 companies and four statutory corporations and 10 non-working PSUs with a total employee strength of 36,069.
"During 2011-12, out of 41 working PSUs, 15 PSUs earned profit of Rs 78.57 crore and 22 PSUs incurred loss of Rs 654.25 crore," it said, adding, the losses were attributable to various deficiencies in the functioning of PSUs.
"The PSUs can discharge their role efficiently only if they are financially self-reliant," CAG said, adding that there is a need for professionalism and accountability in the functioning of PSUs.
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As per the report, among the major state PSUs which earned profits during 2011-12 were Assam Gas Company Ltd (Rs 49.77 crore) and Assam State Minor Irrigation Development Corporation Ltd (Rs 14.32 crore).
On the other hand, Assam Power Distribution Company Ltd incurred losses of Rs 495.43 crore during the fiscal, Assam Electricity Grid Corporation Ltd of 54.12 crore and Assam Power Generation Corporation Ltd of Rs 49.64 crore.
This turnover was equal to 2.49 per cent of the state GDP indicating an important role played by state PSUs in the economy, the CAG report said.
"The quality of account of PSUs needs to be improved ... There were 145 instances of non-compliance with accounting standards in 22 accounts. Reports of statutory auditors on internal control of the companies indicated several weak areas," it said.
CAG said the government should monitor and ensure timely finalisation of accounts in conformity with the provisions of the Companies Act, 1956.