CHENNAI:
A total of 26 state public sector units have accumulated losses of Rs 1.41 lakh crore and the net worth of 18 companies have been completely eroded by their accumulated losses as on March 31, 2020, according to a Comptroller and Auditor General (CAG) report tabled at the Tamil Nadu Assembly.
The report said due to this the aggregate net worth of these companies have become negative to the extent of Rs 1.08 lakh crore. It also stated that all the 18 PSUs whose capital has been eroded had reported a loss of Rs 18,458 crore during 2019-20.
Similarly, the rate of real return in government investment in 70 PSUs, where the state has direct investment, was negative. "The present value of government investment was Rs 1.03 lakh crore as compared to the historical cost of investment worth Rs Rs 3.83 lakh crore The rate of real return of government investment of historical cost as well as present value was negative at 4.54pc and 16.79 pc respectively," the report stated.
The report also highlighted irregularities and deficiencies in the financial reports or in the reporting process by 34 PSUs. The management of 34 PSUs were asked to undertake corrective action.
Similarly, many of the 71 working public sector units (PSUs) in Tamil Nadu are not complying with relevant provisions of the Companies Act, the report stated.
The report stated that many of the PSUs did not conduct the mandatory requirement of four meetings of board of directors in a year. Similarly, the directors of five PSUs did not declare independent status while in 15 PSUs, the independent directors did not attend the meeting of the companies. Similarly, no audit committee was constituted in six PSUs.
The report also indicated that nominations and remunerative committees were not constituted by 28 PSUs and there was no whistle blower mechanism in 15 PSUs.
A total of 26 state public sector units have accumulated losses of Rs 1.41 lakh crore and the net worth of 18 companies have been completely eroded by their accumulated losses as on March 31, 2020, according to a Comptroller and Auditor General (CAG) report tabled at the Tamil Nadu Assembly.
The report said due to this the aggregate net worth of these companies have become negative to the extent of Rs 1.08 lakh crore. It also stated that all the 18 PSUs whose capital has been eroded had reported a loss of Rs 18,458 crore during 2019-20.
Similarly, the rate of real return in government investment in 70 PSUs, where the state has direct investment, was negative. "The present value of government investment was Rs 1.03 lakh crore as compared to the historical cost of investment worth Rs Rs 3.83 lakh crore The rate of real return of government investment of historical cost as well as present value was negative at 4.54pc and 16.79 pc respectively," the report stated.
The report also highlighted irregularities and deficiencies in the financial reports or in the reporting process by 34 PSUs. The management of 34 PSUs were asked to undertake corrective action.
Similarly, many of the 71 working public sector units (PSUs) in Tamil Nadu are not complying with relevant provisions of the Companies Act, the report stated.
The report stated that many of the PSUs did not conduct the mandatory requirement of four meetings of board of directors in a year. Similarly, the directors of five PSUs did not declare independent status while in 15 PSUs, the independent directors did not attend the meeting of the companies. Similarly, no audit committee was constituted in six PSUs.
The report also indicated that nominations and remunerative committees were not constituted by 28 PSUs and there was no whistle blower mechanism in 15 PSUs.
No comments:
Post a Comment