The accounts of the Government Companies (including Companies deemed to be Government Companies as per the provision of the Companies Act) are audited by the Comptroller and Auditor General of India (CAG) under the provisions of Section 619 of the Companies Act 1956 and Section 139 and 143 of the Companies Act 2013. The accounts certified by the Statutory Auditors (Chartered Accountants) appointed by the CAG under the Companies Act are subject to supplementary audit by officers of the CAG and the CAG gives his comments or supplements the reports of the Statutory Auditors. In addition, these companies are also subject to test audit by the CAG.
Reports in relation to the accounts of a Government Company or Statutory Corporation are submitted to the Government of Telangana by CAG for laying before State Legislature of Telangana under the provisions of Section 19-A of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971.
The AP Reorganization Act, 2014 came into effect from 2 June 2014 vide which erstwhile State of Andhra Pradesh was bifurcated and Telangana State was formed on the same day. In Telangana, the State PSUs occupy an important place in the State economy. The accounts of these PSUs are subject to supplementary audit conducted by CAG as per the provisions of Section 143 of the Companies Act, 2013. Audit of Statutory Corporations is governed by their respective legislations. As on 31 March 2015, there were 66 PSUs, falling under our audit purview. Out of these, 11 working PSUs pertain exclusively to Telangana, 33 PSUs are under demerger and remaining 22 are non-working PSUs (yet to be bifurcated). As on 31 March 2015, the investment (capital & long term loans) in 66 PSUs was Rs. 60,233.62 crore. The investment has grown by 56.23 per cent from Rs. 7,700.39 crore in 2010-11 to Rs. 17,594.84 crore in 2014-15 in respect of working PSUs and the thrust of investment was mainly in power sector.