The Hindu Business Line : CAG faults accounting practices of many PSUs based in AP

Ten out of 18 non-working companies were under liquidation and the accounts of the remaining eight defunct or under closure companies were in arrears for periods ranging from three to 22 years.

Hyderabad April 1 The Comptroller and Auditor General of India (CAG), in the audit review (commercial) for 2005-06, has found that while 14 working Government companies and one statutory corporation had finalised accounts for 2005-06, 21 working Government companies and two corporations were in arrears for periods ranging from one to nine years.

Ten out of 18 non-working companies were under liquidation and the accounts of the remaining eight defunct or under closure companies were in arrears for periods ranging from three to 22 years.

As of March 31, 2006 the State had 56 public sector undertakings (PSUs) comprising 53 Government companies and three statutory corporations.

FALL IN INVESTMENT

The total investment in 38 working PSUs decreased from Rs 33,131 crore in 2004-05 to Rs 31,703 crore.

The total investment in non-working PSUs also decreased from Rs 782.85 core to Rs 263 crore.

Further, Budgetary support in the form of capital gains, grants and subsidies disbursed to working PSUs decreased from Rs 4,957 crore to Rs 4,045 crore.

The State Government guaranteed loans aggregating Rs 1,182 crore obtained by nine working PSUs in 2005.

The guarantees of Rs 19,480 crore were outstanding against 16 working PSUs as on March 31, 2006.

Twelve of 15 PSUs that finalised their accounts for 2005-06 earned an aggregate profit of Rs 825.97 crore, and one working company declared a dividend of Rs 86.66 crore.

Of the nine loss incurring working Government companies, two had accumulated losses aggregating Rs 922.64 crore, which exceeded their aggregate paid-up capital of Rs 7.5 crore.

STAGGERING LOSS

One loss-making statutory corporation had accumulated loss of Rs 1,243.69 crore, which exceeded its paid-up capital of Rs 201.27 crore.

In a related analysis of public enterprises, the CAG has faulted Singareni Collieries Company Ltd for excess expenditure during the year.

SINGARENI LAPSES

This was mainly due to lack of clear-cut policy for removal of overburden in open cast mines.The CAG also brought to the fore some other avoidable expenditure by Singareni in drilling and blasting related work.

After imposition of the service tax, the company accepted the rates of diesel component quoted by the contractors without verification, resulting in extra commitment of Rs 43.13 crore.

Southern Power Distribution Company of Andhra Pradesh suffered a loss of Rs 359.72 crore between 2001-02 and 2005-06 due to sale of power in excess of the quota fixed by the Andhra Pradesh Electricity Regulatory Commission in respect of the subsidised categories.

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