Accumulated losses of 77 state PSUs exceed Rs 18,000 crore claims audit report

Of the 77 PSUs, the net worth of 44 PSUs has completely eroded by accumulated loss and their net worth was negative.
Comptroller and Auditor General of India building is used for representational purposes.
Comptroller and Auditor General of India building is used for representational purposes. (Photo | PTI)
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THIRUVANANTHAPURAM: As many as 77 of 131 working public sector units (PSUs) in the state had an aggregate accumulated loss of over Rs 18,000 crore, the audit report of the Comptroller and Auditor General (CAG) on state finances for the year ended March 31, 2023, has found. The CAG report recommended to the government that a committee be set up to assess the viability of loss-making PSUs, so that further strain on the public exchequer can be avoided.

Of the 77 PSUs, the net worth of 44 PSUs has completely eroded by accumulated loss and their net worth was negative. The net worth of these 44 PSUs was (-) Rs 11,227.04 crore against an equity investment of Rs 5,954.33 crore.

A review of financial statements received during 2017-18 to 2022- 23 from 44 PSUs with negative net worth revealed that 19 PSUs sustained negative net worth for periods ranging from one to 13 years and two recently formed PSUs reported negative net worth right from the commencement of their operations. The remaining 23 PSUs had continuous negative net worth throughout the review period.

A total of 16 PSUs, including a statutory corporation, submitted their accounts for the financial year 2022-23 for audit within the stipulated period representing 12.21% of the total number of working PSUs. Age-wise analysis of the PSUs from which accounts were pending showed that in 115 PSUs, 270 accounts were pending up to the financial year 2022-23.

Besides the proposal to set up a committee to assess the viability of PSUs, the CAG report recommended that state government and the respective PSUs should reconcile the differences relating to equity, loan and guarantees in a time-bound manner. “The government should establish a robust monitoring and accountability mechanism to ensure that all PSUs comply with the statutory time limit for finalisation and submission of accounts, thereby promoting transparency and financial discipline within these organisations,” the report recommended.

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