As many as 53 public sector undertakings in the State have incurred a loss of Rs.889.89 crore during the financial ended 2015.
As per the Comptroller and Auditor General (CAG) report for the year tabled in the Assembly on Tuesday, the Kerala State Road Transport Corporation (KSRTC) incurred a loss of Rs.508.22 crore, Kerala State Cashew Development Corporation suffered a loss of Rs.127.95 crore, and the Kerala State Civil Supplies Corporation made a loss of Rs.89.11 crore are the major PSUs in the red. During the period of audit, the State had 111 working and 15 non-functional PSUs that employed 1.28 lakh employees. Their total turnover has been pegged at Rs.19,194.06 crore.
As many as 50 PSUs earned a profit of Rs.498.47 crore and four had neither recorded profit or loss. Kerala State Electricity Board (KSEB) Limited earned a profit of Rs.140.42 crore, Kerala State Beverages Corporation Limited Rs.123.54 crore, Kerala State Financial Enterprises Limited Rs.69.90 crore and Kerala State Industrial Development Corporation Limited Rs.30.49 crore.
The State government had invested Rs.3,160.47 crore in 55 PSUs. Since the accounts have not been finalised and auditing not been completed, the auditors could not ensure whether the investment and expenditure incurred have been properly accounted and the purpose for which the investments have been made achieved or not. Hence, the investment in the PSUs remained outside the purview of the Legislature, the report said.
The delay in finalisation of accounts may lead to fraud and leakage of public funds.
Recommendations
The report recommended the government to set up a cell to oversee the clearance of arrears and set the target for individual companies and it should be monitored by the cell. The government should also consider outsourcing the work on preparation of accounts where the staff lack accounting skills.
Out of the 15 non-working PSUs, five had commenced liquidation process. “Since the non-working PSUs are not contributing to the State’s economy, they may be considered either to be closed down or revived,” the report said.
The government should make an early decision regarding winding up of nine non-working PSUs where closing orders have been issued but liquidation process has not yet begun, the report said.
