KOCHI: Contrary to the tall claims of the previous LDF Government on profit-making PSUs, a couple of major public sector undertakings (PSUs) in Kerala suffered a huge loss in 2009-10. The last CAG report has also found many irregularities where profit and loss are either overstated or understated. According to the last report by the Comptroller and Auditor-General, many PSUs in the state were not exactly profit-making during the period. Coming down heavily on the accounting system here, the CAG report clearly states that the quality of maintenance of accounts needs to be improved substantially.“Heavy losses were incurred by the Kerala State Road Transport Corporation (`136.39 crore), the Kerala State Cashew Development Corporation Ltd (`125.41 crore), Kerala State Development Corporation for Scheduled Castes and Scheduled Tribes Ltd (`31.52 crore) and the Kerala State Civil Supplies Corporation Ltd (`19.57 crore),” the CAG report said. During this period the number of non-working PSUs in the state was 27. The investment towards PSUs has declined by 26.84 per cent from `11,044.89 crore in 2004-05 to `8,080.69 crore in 2009-10. As per the CAG report, companies suffered a decrease in profit of `102.96 crore and increase in loss of `175.85 crore. In the case of the Kerala Agro Machinery Corporation Ltd, profit for 2009-10 (`13.33 crore) was overstated by `4.50 crore. Similarly for the Kerala State Beverages (Manufacturing & Marketing) Corporation net profit for the year 2007-08 (`166.77 crore) was overstated by `54.04 lakh. Loss for the year 2006-07 (`18.44 crore) was understated by `57.01 lakh for the Kerala State Civil Supplies Corporation while net loss for the year 2006-07 (`69.08 lakh) was understated by `18.01 lakh in the case of Kerala Ceramics Ltd. Another noticeable observation by the CAG is about the Kerala State Electronics Development Corporation. “Net profit for 2008-09 (`6.31 crore) was arrived at after erroneous adjustment,” the report observed. In 2008-09 operating profit (`19.62 crore) of the Kerala State Industrial Development Corporation was overstated by `0.54 crore due to erroneous accounting of provision. Net profit for 2007-08 (`24.27 crore) stood overstated by `0.43 crore for Transformer and Electricals Kerala Limited. In the case of the Kerala State Backward Classes Development Corporation profit for 2005-06 (`6.07 crore) was overstated by `4.41 crore, said the CAG report. The report further pointed out that five working statutory corporation had a decrease in profit of `1555.79 crore in 2009-10. The CAG report has severly criticised the government for not laying down any policy regarding disinvestment, privatisation and restructuring of PSUs
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