The Comptroller and Auditor General (CAG) of India 2017-18 report, which was tabled in the state legislative assembly on Friday, has pointed out that state government’s four public sector undertakings (PSUs) – Goa Handicrafts Rural and Small Scale Industries Development Corporation (GHRSSIDC), Kadamba Transport Corporation (KTC), Goa Electronics Limited (GEL) and Goa Auto Accessories Limited (GAAL) – have plunged into a financial crisis and turned out to be white elephants, accumulating year-over-year losses.
The CAG report states that these four PSUs have shown a higher quantum of accumulated losses than the capital investment, resulting in negative net worth of Rs 154.32 crore.
The CAG has further audited that of these four PSUs, the maximum net worth erosion is in the KTC, pegged at Rs 118.16 crore, followed by GEL where the net worth erosion is Rs 19.06 crore.
According to the CAG report, despite fund infusion in these PSUs in the form of interest-free loans, their entire capital investment has been eroded, resulting in the negative growth. Out of 17 PSUs, the state government has infused funds in the form of equity, long-term loans and grants or subsidies in 15, to the tune of Rs 303.95 crore.
The CAG report further states that as per the latest finalised accounts of three working PSUs, GHRSSIDC, KTC and GEL, and one inactive PSU (GAAL), higher quantum of accumulated losses than the capital investment shows that the overall capital has eroded entirely resulting in negative net worth of Rs 154.32 crore.
The report mentions that the negative net worth indicates that the entire investment by the owners (government) has been wiped out by the accumulated losses and deferred revenue expenditure.