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21 State PSUs incurred loss of Rs 484 crore: CAG

By Staff Reporter

GUWAHATI, March 2 � Out of the 40 working State PSUs in Assam, 21 have incurred losses totalling Rs 484.87 crore during 2013-14 and such losses can be removed with better management, the Comptroller and Auditor General of India (CAG) said in a report.

�During the year 2013-14, out of 40 working State PSUs, 16 earned profit of Rs 215.72 crore and 21 State PSUs incurred loss of Rs 484.87 crore as per their latest finalised accounts as on September 30, 2014,� the CAG said in its latest report on Public Sector Undertakings for the year ended March 31, 2014.

It said heavy losses were incurred by the Assam Power Distribution Company Ltd (Rs 418.14 crore), Assam State Transport Corporation (Rs 33.43 crore) and Assam Industrial Development Corporation Ltd (Rs 7.46 crore).

�The losses are attributable to various deficiencies observed in the functioning of the State PSUs. A review of three years� audit reports of CAG shows that the State PSUs incurred losses of Rs 258.65 crore and made infructuous investments of Rs 28.79 crore, which were controllable with better management,� it said.

The report added, ��with better management, losses can be minimised/profits can be enhanced substantially. The State PSUs can discharge their role efficiently only if they are financially self-reliant. There is a need for improving professionalism and accountability in the functioning of the State PSUs.�

The CAG said the quality of accounts of State PSUs needs to be improved.

�Out of 64 accounts finalised by 24 working State PSUs (including four accounts of three statutory corporations) during October 2013 to September 2013, 63 accounts received qualified certificates. There are instances of non-compliance with accounting standards in 21 accounts. Reports of statutory auditors on internal control of the companies revealed several weak areas,� it said, adding that 34 working State PSUs had arrears of 292 accounts as of September 2014 ranging between one and 26 years.

Regarding APDCL, the report said that the capital employed of the company was completely eroded by accumulated losses and it had been negative throughout the five-year period from 2009-10 to 2013-14.

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21 State PSUs incurred loss of Rs 484 crore: CAG

GUWAHATI, March 2 � Out of the 40 working State PSUs in Assam, 21 have incurred losses totalling Rs 484.87 crore during 2013-14 and such losses can be removed with better management, the Comptroller and Auditor General of India (CAG) said in a report.

�During the year 2013-14, out of 40 working State PSUs, 16 earned profit of Rs 215.72 crore and 21 State PSUs incurred loss of Rs 484.87 crore as per their latest finalised accounts as on September 30, 2014,� the CAG said in its latest report on Public Sector Undertakings for the year ended March 31, 2014.

It said heavy losses were incurred by the Assam Power Distribution Company Ltd (Rs 418.14 crore), Assam State Transport Corporation (Rs 33.43 crore) and Assam Industrial Development Corporation Ltd (Rs 7.46 crore).

�The losses are attributable to various deficiencies observed in the functioning of the State PSUs. A review of three years� audit reports of CAG shows that the State PSUs incurred losses of Rs 258.65 crore and made infructuous investments of Rs 28.79 crore, which were controllable with better management,� it said.

The report added, ��with better management, losses can be minimised/profits can be enhanced substantially. The State PSUs can discharge their role efficiently only if they are financially self-reliant. There is a need for improving professionalism and accountability in the functioning of the State PSUs.�

The CAG said the quality of accounts of State PSUs needs to be improved.

�Out of 64 accounts finalised by 24 working State PSUs (including four accounts of three statutory corporations) during October 2013 to September 2013, 63 accounts received qualified certificates. There are instances of non-compliance with accounting standards in 21 accounts. Reports of statutory auditors on internal control of the companies revealed several weak areas,� it said, adding that 34 working State PSUs had arrears of 292 accounts as of September 2014 ranging between one and 26 years.

Regarding APDCL, the report said that the capital employed of the company was completely eroded by accumulated losses and it had been negative throughout the five-year period from 2009-10 to 2013-14.