The Comptroller and Auditor General (CAG) of India has expressed concern over non-submission of financial statements by a majority of State public sector undertakings. It said that irregularities and deficiencies in the financial reports, observed during supplementary audit that were not material, were communicated to the management of 10 PSUs through “management letters” for corrective action.
The CAG said of the total 66 working PSUs, financial statements for the year 2020-21 were received only from seven in time. As many as 59 PSUs defaulted on timely submission of accounts. Of these, accounts of 36 PSUs were due for more than three years and 16 PSUs had not even submitted their first accounts since inception.
As a result of the CAG audit, statutory auditors of seven PSUs revised their audit report. In addition, significant comments highlighting inaccuracies in financial statements impacting profitability by ₹302.03 crore and assets/liabilities by ₹6,047.46 crore were issued.
The total accumulated losses of 19 PSUs was ₹67,580.38 crore and after setting off accumulated profits of nine PSUs amounting to ₹7,723.78 crore, the net accumulated losses were at ₹59,856.6 crore as on March 31, 2021. As a result of losses, the combined net worth of 30 PSUs was completely eroded and it stood at (-) ₹38,741.14 crore at the end of the previous fiscal.
Out of the 30 PSUs which furnished their accounts/information for 2020-21, 12 PSUs earned profits (₹728.63 crore), 16 PSUs incurred losses (₹10,295.63 crore) and two PSUs had reported neither profit nor loss.
Major profit making PSUs during the year 2020-21 were Singareni Collieries Company Limited (₹272.64 crore), TS Power Generation Corporation (₹168.80 crore), Transmission Corporation of Telangana (₹206.77 crore) and Telangana State Forest Development Corporation (₹51.83 crore). Only one company, SCCL declared a dividend of ₹173.32 crore during the year.
However, profits of the 12 PSUs were offset by the losses incurred by Southern Power Distribution Company Limited (₹4,622.60 crore), Northern Power Distribution Company Limited (₹2,440.36 crore), Telangana State Road Transport Corporation (₹2,329.23 crore) and Telangana State Housing Corporation (₹733.15 crore). These huge losses during the period contributed to the overall losses of the PSUs.
