An aggregate loss of Rs 1,876.98 crore was suffered by 19 Public Sector Undertakings (PSUs) in Chhattisgarh during 2012-13, says the report on PSUs by the Comptroller and Auditor General of India (CAG) for the year ended March 31, 2013.The report was tabled in the Chhattisgarh Assembly on Tuesday.
The reason for the aggregate loss suffered by the PSUs was due to heavy loss incurred by Chhattisgarh State Power Distribution Company (CSPDCl) to the tune of Rs 2012.27 crore during 2012-13, it stated.
In Chhattisgarh, as of March 31, 2013, there were 18 Government companies and one Statutory Corporation. The PSUs registered a combined turnover of Rs 11,776.04 crore for 2012-13 as per the latest finalised accounts as of September 2013.
As per the latest accounts finalised as on September 30, 2013 out of the 19 working PSUs, 12 earned a total profit of Rs 14.53 crore and five PSUs incurred a total loss of Rs 2091.51 crore with another making ‘no profit no loss’, the report stated.
The major contributors to the profit were Chhattisgarh Rajya Van Vikas Nigam ltd (Rs 27.81 crore), Chhattisgarh State Power Transmission Company ltd (Rs 101.38 crore) and Chhattisgarh State Warehousing Corporation (Rs 29.05 crore).
The losses were mainly incurred by Chhattisgarh State Power Distribution Company ltd ( Rs 2012.27 crore) and Chhattisgarh State Civil Supplies Corporation ltd (Rs 78.88 crore), it stated.
The losses incurred by the PSUs were mainly attributable to deficiencies in financial management, planning, implementation of projects, running their operations and monitoring, the report observed.
The current Audit report of CAG shows that the State PSUs incurred losses to the tune of Rs 204.13 crore which were controllable with better management. The aforesaid losses pointed out in the Audit Reports of CAG were based on the test check of records of PSUs, it stated.
The report further observed that the actual controllable losses may be much more. It also observed that the PSUs can discharge their role efficiently only if they are financially self reliant. The above situation points towards the need for professionalism and accountability in the functioning of PSUs, the CAG report stated.
The report further observed that the ‘Return on Capital Employed’ decreased from 14.38 per cent in 2008-09 to minus 11.93 per cent in 2012-13 and though the accumulated profit of the State PSUs had increased from Rs 836.89 crore in 2008-09 to Rs 2002.78 crore in 2011-12, the same turned into an accumulated loss of Rs 3136.26 crore in 2012-13. This indicated deteriorating operational performance of PSUs.
The State Government had not formulated any dividend policy for payment of minimum return on paid-up share capital contributed by the State Government. As per their (State Government’s) latest finalised accounts, 12 PSUs earned profit aggregating to Rs 214.53 crore of which only two PSUs declared dividend of Rs 2.97 crore, the report stated.