9 Odisha PSUs post Rs 807 cr loss in 2014-15: CAG

CAG report stated one PSU prepared its accounts on no-profit, no-loss basis while 9 PSUs are yet to start commercial production

Nine working public sector undertakings (PSUs) have incurred a combined loss of Rs 806.78 crore in 2014-15, says a latest report on PSUs by the Comptroller & Auditor General of India (CAG) for the year ended March 2015.

Odisha has 47 working PSUs of which 28 made profit of Rs 2006.48 crore in FY15. Major contributors to profit were Odisha Mining Corporation- OMC (Rs 1487.10 crore), Odisha Power Generation Corporation- OPGC (Rs 229.63 crore), Odisha Power Transmission Corporation Ltd- OPTCL (Rs 52.30 crore) and Odisha State Beverages Corporation- OSBC (Rs 49.56 crore).

According to the CAG report, one PSU prepared its accounts on no-profit, no-loss basis while nine PSUs are yet to start commercial production.

There were PSUs which bled heavy losses. State controlled power trading firm Gridco closed 2014-15 with a steep loss of Rs 679.80 crore. Odisha State Financial Corporation- OSFC and Odisha Rural Housing & Development Corporation- ORHDC suffered losses of Rs 77.40 crore and Rs 31.71 crore respectively. The losses are attributed to the various deficiencies in the functioning of PSUs.

As on March 31, 2015 investments (capital and long-term loans) in 75 PSUs was Rs 12928.02 crore. The investment increased by 26.44 per cent from Rs 10224.98 crore to Rs 12928.02 crore in 2014-15. Rise in investment was mainly due to increase in capital and loan in service sector. Share of investment in service sector increased from 2.14 per cent in 2010-11 to 30.92 per cent in 2014-15.

The CAG report has pointed out that the quality of account of PSUs needs improvement. Out of 43 accounts finalised during October 2014 to September 2015, 42 accounts received qualified certificates and one account (of Gridco) received adverse certificate from the statutory auditors. There were 43 instances of non-compliance with accounting standards in 21 accounts. Reports of statutory auditors on internal control of companies indicated several weak areas, said the report by the central auditor.

As many as 29 working PSUs had arrears of 54 accounts (as of September 30, 2015) of which 25 accounts pertained to earlier years and the remaining were 2014-15 accounts. There were 28 non-working PSUs including 17 under liquidation.