Several Bihar companies in red: CAG

Several state-run companies and statutory corporations have incurred huge losses successively and they are now in red, according to the Comptroller and Auditor General of India (CAG).    

The CAG in its report for the period ended on March 31, 2008 pointed out that as on March 31, 2008, the state had 54 public sector undertakings — 50 government companies and four statutory corporations. At the end of March 2007, the state had one more government company, making it 55 PSUs altogether.    

Of the 50 government companies, 16 were working while 34 were not, it said, adding all the four statutory corporations were functioning.

In addition, there were eight companies — two working and six non-working — as on March 31, 2008.    

None of the working government companies and statutory corporations have finalised their accounts for the year 2007-08 within the stipulated period.    

The CAG elaborated that accounts of 16 working companies and four working statutory corporations were in arrears for periods ranging from one to 19 years as on September 30, 2008.

The accounts of all the non-working companies were in arrears for periods ranging from 13 to 31 years as on September 30, 2008.

Quoting the latest finalised accounts, the CAG said six working PSUs (four government companies and two statutory corporations) earned an aggregate profit of Rs 38.24 crore. Against this, 13 working PSUs (11 government companies and two statutory corporations) incurred an aggregate loss of Rs 946.16 crore as per their latest finalised accounts.     

Of the loss incurring working companies, seven, whose accounts were finalised during October 2007 to September 2008, had accumulated losses aggregating Rs 226.55 crore, which exceeded their aggregate paid up capital of Rs 34.29 crore.      

"The two loss incurring statutory corporations have accumulated losses of Rs 2,149.14 crore," it pointed out.     

The total investment in the working PSUs, however, increased from Rs 7,929.91 crore as on March 31, 2007 to Rs 7,976.96 crore as on March 31, 2008, the report added.     

The budgetary support in the form of capital, loans and grants/subsidies disbursed to the working PSUs increased from Rs 264.84 crore in 2006-07 to Rs 320.16 crore in 2007-08.      

The total amount of outstanding loans guaranteed by the state government to PSUs as on March 31, 2008 was Rs 459.11 crore, the report said.