Kerala PSUs incurred loss of Rs 1,222 crore, 53 PSUs earned profit: C&AG report

The loss incurred by Public Sector Undertakings (PSUs) in Kerala has increased to Rs 1,222.06 crore in 2018-19 from Rs 536.37 crore in 2014-15, according to the Comptroller and Auditor General of India (C&AG) report tabled in State Assembly on Thursday.

According to the latest finalised accounts of the State PSUs ending March 2019, 53 PSUs earned a profit of Rs 574.49 crore, 58 PSUs incurred a loss of Rs 1796.55 crore and two PSUs had no profit no loss. Eight working PSUs did not finalise, as of September 2019, their first accounts.

"The major PSUs which incurred loss were Kerala State Road Transport Corporation (Rs 1,431.29 crore), Kerala State Textiles Corporation Limited (Rs 53.17 crore ), the Kerala State Civil Supplies Corporation Limited (Rs 25.91 crore ), and Travancore Titanium Products Limited (Rs 23.63 crore )," C&AG report said.

The C&AG observed that the quality of accounts of State PSUs, other than the Power sector, needs to be improved substantially.

Compliance with the accounting standards by the PSUs remained poor as the Statutory Auditors pointed out 141 instances of non-compliance to the Accounting Standards in 61 accounts. Timeliness in the preparation of accounts by the working state PSUs was also poor. "Out of 121 PSUs, 106 PSUs had arrears of 271 accounts as of 30 September 2019. The 16 non-working State PSUs had 183 accounts in arrears," the auditor pointed out.

Major contributors to profit were the Kerala State Financial Enterprises Limited (Rs 144.41 crore ), the Kerala Minerals and Metals Limited ( Rs104.46 crore ), Kerala State Beverages Corporation Limited ( Rs 85.93 crore), and the Kerala State Cashew Development Corporation Limited ( Rs 61.59 crore in 2013-14).

The working PSUs together registered a turnover of Rs 19,122.57 crore during 2018-19, as per their latest finalised accounts. This turnover was equal to 2.47 per cent of the Gross State Domestic Product (GSDP), indicating the role played by these State PSUs in the economy of Kerala.

"Stake of Government of Kerala, as on 31 March 2019, in the total investment (equity and long term loans) in these 137 PSUs was Rs 20,368.36 crore. The investment consisted of 33.34 per cent towards equity and 66.66 per cent in long-term loans. The long-term loans consisted of 48.83 per cent ( Rs 6,629.35 crore) from the State Government, 0.31 per cent ( Rs 42.49 crore) from the Central Government, and 50.86 per cent ( Rs 6905.47 crore) from financial institutions," the report said.

( With inputs from ANI )