18 out of 51 PSUs in Raj failed to commence activities: CAG

Almost every third public sector undertaking (PSU) which was incorporated in Rajasthan between 2006-07 and 2015-16 failed to commence business activities, according to a Comptroller and Auditor General (CAG) report.
18 of the total 51 PSUs incorporated in Rajasthan from 2006-07 to 2015-16 did not commence their business activities, stated the CAG report which was tabled in state assembly yesterday.
"The purpose of incorporation of these PSUs was therefore defeated. The government should take appropriate action to commence business activities of these PSUs," it said.
The CAG audit report for the year ended on March 31, 2016 also highlighted that of the total 51 working PSUs during the year 2015-16, 19 incurred loss of Rs 13,217.17 crore while 23 earned profit of Rs 843.83 crore.

Five PSUs had no profit or loss for the year 2015-16, while two did not submit annual accounts since inception and accounts of two others were not due, the report stated.
Further the report noted that the quality of accounts of PSUs "needs improvement".

According to the report, out of 55 accounts finalised during October 2015 to September 30, 2016, the statutory auditors gave qualified certificates on 22 accounts and adverse certificate on one account.
There were 47 instances of non-compliance with the accounting standards by the PSUs.
The report, however, highlighted that the working PSUs registered a turnover of Rs 54,834.65 crore during 2015-16 as per their latest finalised accounts.

This turnover was equal to 8.13 per cent of the state gross domestic product indicating an important role played by the state PSUs in the economy of the state.
The report's compliance audit observations highlighted deficiencies in the management of public sector undertakings, which resulted in serious financial implications.
The irregularities were reported in Jodhpur Vidyut Vitran Nigam Limited, Rajasthan State Industrial Development and Investment Corporation Limited, Rajasthan Rajya Vidyut Utpadan Nigam Limited and Rajasthan State Road Development and Construction Corporation Limited.