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CAG glare over account arrears of non-working PSUs

Source : BUSINESS_STANDARD
Last Updated: Wed, Aug 08, 2012 19:34 hrs

Four PSUs have account arrears for 45 years

The Comptroller & Auditor General of India (CAG) has raised serious concern over the arrears in accounts ranging from 4-45 years (as on June 30, 2012) of non-working PSUs in the state.

CAG has identified 17 such non-functional public enterprises saddled with arrears under the administrative control of industries department.

The Central auditor has emphasized on initiating proper action for clearance of the arrears so that action for winding up process of such PSUs can be initiated.

"You are requested to kindly instruct the management of the working companies for updating their accounts. The management of the non-working companies may be instructed to prepare a single account for the entire period of arrears while going for winding up and move the CAG for appointment of statutory auditors for the single accounts”, B C Mandal, deputy accountant general, Bhubaneswar, wrote to industries secretary Parag Gupta.

Four non-working PSUs, which currently exist only on paper, have pendency in accounts for 45 years- Premiere Bolts and Nuts Ltd, Manufacture Electro Ltd, Modern Electronics Ltd and Odisha Board Mills Ltd.

Other non-working PSUs with arrears in accounts include Kalinga Studios Ltd, Konark Jute Ltd, Odisha Small Industries Corporation Ltd, Gajapati Steel Industries Ltd, Modern Malleable Casting, Eastern Aquatic Products Ltd, Odisha Boat Builders Ltd, ABS Spinning Odisha Ltd, Heera Steel & Alloys Ltd, K S Refractories Ltd, Konark Detergent and Soaps Ltd, Odisha Tool and Engineering Company Ltd, Odisha Instrument Company Ltd, Odisha State Leather Corporation Ltd, Odisha Leather Industries Ltd and Odisha Electrical Manufacturing Company Ltd.

Meanwhile, the state government has decided to get the names of 20 non-working PSUs struck off from the list of Registrar of Companies (RoC).

The decision was taken since defunct enterprises were not taking interest to strike off their names from the RoC under Ministry of Corporate Affairs despite several reminders.

Among the 20 companies, nine companies were under voluntary liquidation- Odisha Electrical Manufacturing Company Ltd, Gajapati Steel Industries Ltd, Modern Malleable Casting, Eastern Aquatic Products Ltd, Premier Bolts and Nuts Ltd, Manufacturer Electro Ltd, Modern Electronics Ltd, Odisha Boat Builders Ltd and Odisha Board Mills Ltd.

The other 11 companies whose names are set to be deleted from RoC are Mayurbhanj Textiles Ltd, New Mayurbhanj Textiles Ltd, Konark Detergent & Soaps Ltd, Odisha Fishery Development Corporation, Odisha Tools & Engineering Company Ltd, Odisha Instrument Company Ltd, Odisha State Leather Corporation Ltd, Odisha Leather Industries Ltd, Odisha State Textiles Corporation Ltd, Odisha State Commercial Transport Corporation Ltd and El Mark Ltd.

RoC has the power to strike off the name of the defunct company from the register under Section 560 of Companies Act-1956.



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