There are several Government owned companies, whose annual accounts are pending finalization for last 49 years and have been declared as “Non Working”.
Glaring examples of cases of violations of Companies Act have come to fore as the Principal Accountant General of Odisha has pointed out it to the State Government.
little known Government companies such as Manufacture Electro limited, Premier Bolts and Nuts limited which were Pilot Project Companies and are now under liquidation, their accounts have not been finalized for last 49 years, pointed out the Principal AG.\
Orissa Electrical Manufacturing Company limited, which is under liquidation, has not finalized its accounts for last 48 years. Gajapati Steel Industries limited also under liquidation has its accounts pending for last 46 years.
Mayurbhanj Textiles limited, which was producing quality fabric and hosiery products and known of its durability is now defunct and its accounts have not been finalized for last 44 years.
Similarly the New Mayurbhanj Textiles limited is a non working company and its accounts are pending finalization for last 32 years.
The Principal AG has pointed out that the accounts of 22 non working companies, which are under various stages of liquidation, including seven pilot project companies, are in arrear for the period ranging from 42 to 49 years.
The remaining 15 non working companies have arrears in accounts for period ranging from 5 to 44 years.
In fact non-updating the accounts by these non working companies are one of the reasons for delay in
winding up of these institutions, besides violation of the provisions of the Companies Act.
Principal AG Devika has written to the State Government that some of the working companies of the State Government are also failing to update their annual accounts.
Out of 39 State Government owned companies and corporations only 22 working companies and two corporations have finalized their accounts up to 2014-15.
While two working companies have three years of arrear, seven working companies have two years arrear and seven working companies have arrear accounts for one year.
So she has asked the State Government to take up an action plan for the both working and non working companies to finalize the accounts, which is fundamental to good corporate governance.
Unless the accounts of the non working companies will be finalized, their winding up will not be possible, the Principal AG said.