Kerala - Thiruvananthapuram   

35 out of 88 working PSUs earn profit

Special Correspondent

CAG report says 10 of these companies earned an aggregate profit of Rs.69.86 crores

THIRUVANANTHAPURAM: Thirty-five out of 88 functional State public sector undertakings (PSUs) are earning profits while 37 companies have losses far exceeding their aggregate paid up capital, the report of the Comptroller and Auditor General (CAG) says.

According to the CAG's report pertaining to the period up to March 31, 2005, tabled in the Assembly on Monday, 10 out of the profit-making companies had earned an aggregate profit of Rs.69.86 crores during 2004-'05 while the aggregate losses of the loss-making 37 companies touched Rs.1,914.42 crores during the year, far above their aggregate paid up capital of Rs.575.16 crores. As many as 21 of the 114 public sector units are non-functional.

Under liquidation

Thirteen of these companies are under liquidation and the accounts of the remaining eight defunct companies are in arrears for periods ranging from three to 15 years.

According to the report, the Kerala State Civil Supplies Corporation (Supplyco) has suffered heavy losses on account of purchase of pulses and spices at rates higher than open market rates, the extra expenditure on this count being Rs.42.04 crores, and fixing of Maveli store prices far below the open market retail prices, the loss on this count being Rs.42.73 crores.

The Corporation also incurred avoidable expenditure of Rs.2.97 crores during the report period on account of transportation of commodities to primary depots and subsequent retransfer to secondary depots.

The CAG has also found that the Kerala State Road Transport Corporation's decision to purchase minibuses made by Eicher Motors adopting faulty evaluation methods had resulted in avoidable loss of Rs.47 lakhs besides additional operating cost of Rs.0.73 paise a kilometre for five years for 100 buses.

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