'26 Tamil Nadu PSUs lost Rs 1.41 lakh crore in 2019-20', says CAG report

CHENNAI: Twenty-six State Public Sector Units (PSUs) accumulated a combined loss of Rs 1.41 lakh crore, a Comptroller and Auditor General (CAG) report tabled at the Assembly said. It also showed that the accumulated losses (as on March 31, 2020) of 18 companies pushed their aggregate net worth to negative Rs 1.08 lakh crore. The 18 PSUs reported a loss of Rs 18,458 crore in 2019-20.

Similarly, the rate of real return in government investment in 70 PSUs was negative. The report highlighted irregularities and deficiencies in the financial reports/reporting process of 34 PSUs. The management of these PSUs were asked to undertake corrective action.

Similarly, many of the 71 working public sector units in Tamil Nadu are not complying with relevant provisions of the Companies Act, the report stated.

It said many of the PSUs did not conduct the mandatory requirement of four meetings of board of directors a year. Similarly, the directors of five PSUs did not declare independent status while in 15 PSUs, the independent directors did not attend the meeting of the companies.

Similarly, no audit committee was constituted in six PSUs. The report also indicated that nominations and remunerative committees were not constituted by 28 PSUs and there was no whistle blower mechanism in 15 PSUs.