Further, the total negative net worth of these 31 SPSUs was Rs 9,887.19 crore against the paid-up capital of Rs 7,551.83 crore as on March 31, 2023.
The CAG report on state finances for the year ending March 31, 2023 was presented in the state Assembly on Friday.
According to the report, maximum net worth erosion was observed in Maharashtra State Road Development Corporation Limited (Rs 2,948.11 crore), Maharashtra State Road Transport Corporation (Rs 2,610.86 crore), Maharashtra Power Development Corporation Limited (Rs 1,013.63 crore) and the state of Maharashtra. Textile Corporation Limited (Rs 1,006.74 crore).
Of the total loss of Rs 3,623.40 crore incurred by 45 SPSUs during 2022-23, four SPSUs contributed a loss of Rs 3,355.13 crore, incurring losses of over Rs 200 crore. These include Maharashtra Power Generation Company Limited (Rs 1,644.34 crore), Maharashtra State Road Transport Corporation (Rs 1,145.57 crore), MSRDC Sea Link Limited (Rs 297.67 crore) and Mumbai Pune Expressway Limited (Rs 266. 55 crores).
Additionally, 39 government-controlled companies reported net loss after tax of Rs 3,623.40 crore for Rs 2,322.19 crore, three statutory companies (SCs) for Rs 1,223.14 crore and three other government-controlled companies government (GCOC) for Rs 78.07 million.
As on March 31, 2023, there were 110 SPSUs of which 91 are functional and 19 are inactive in the state under the audit jurisdiction of CAG.
Out of 110 SPSUs, 39 functioning SPSUs and five inactive SPSUs did not provide any financial statement (FS) as on September 30, 2023. As a result of non-submission of FS, there is no certainty whether the investment and expenditure had been made properly. accounted for and the purpose for which the amount was invested by the state government was achieved, the report said.
During 2022-23, a total of 52 SPSUs recorded an annual turnover of Rs 1,22,154.70 crore, which is equivalent to 3.46 per cent of Maharashtra's GSDP.
The state government's investment in equity and long-term loans in these SPSUs was Rs 2,33,626.89 crore, against the total investment of Rs 4,90,595.02 crore as at the end of March 31, 2023, according to the CAG report.
Of the 110 SPSUs, 47 SPSUs made profits (Rs 1,833.29 crore), while 45 SPSUs incurred losses (Rs 3,623.40 crore) and 10 SPSUs reported neither profit nor loss.
The financial statements for the year 2022-23 were received from only 14 SPSUs within the stipulated time (September 30, 2023). Eight SPSUs have not filed their first returns since their inception.
The silver lining was that 49 SPSUs had accumulated a surplus of Rs 9,717.76 crore and 12 SPSUs had accumulated neither loss nor surplus, the report said.
CAG has suggested that the state government may review the functioning of all loss-making SPSUs and take necessary steps to improve their financial performance. The government may issue necessary directions to the administrative departments to set targets for each SPSU to provide financial statements on time and strictly monitor the clearance of arrears.
Further, the CAG has recommended that the government review dormant government undertakings and take appropriate decisions on their revival or liquidation. The government may urge the management of for-profit SPSUs to declare dividends as per the Government of Maharashtra Resolution 2012.
The CAG report on state finances for the year ending March 31, 2023 was presented in the state Assembly on Friday.
According to the report, maximum net worth erosion was observed in Maharashtra State Road Development Corporation Limited (Rs 2,948.11 crore), Maharashtra State Road Transport Corporation (Rs 2,610.86 crore), Maharashtra Power Development Corporation Limited (Rs 1,013.63 crore) and the state of Maharashtra. Textile Corporation Limited (Rs 1,006.74 crore).
Of the total loss of Rs 3,623.40 crore incurred by 45 SPSUs during 2022-23, four SPSUs contributed a loss of Rs 3,355.13 crore, incurring losses of over Rs 200 crore. These include Maharashtra Power Generation Company Limited (Rs 1,644.34 crore), Maharashtra State Road Transport Corporation (Rs 1,145.57 crore), MSRDC Sea Link Limited (Rs 297.67 crore) and Mumbai Pune Expressway Limited (Rs 266. 55 crores).
Additionally, 39 government-controlled companies reported net loss after tax of Rs 3,623.40 crore for Rs 2,322.19 crore, three statutory companies (SCs) for Rs 1,223.14 crore and three other government-controlled companies government (GCOC) for Rs 78.07 million.
As on March 31, 2023, there were 110 SPSUs of which 91 are functional and 19 are inactive in the state under the audit jurisdiction of CAG.
Out of 110 SPSUs, 39 functioning SPSUs and five inactive SPSUs did not provide any financial statement (FS) as on September 30, 2023. As a result of non-submission of FS, there is no certainty whether the investment and expenditure had been made properly. accounted for and the purpose for which the amount was invested by the state government was achieved, the report said.
During 2022-23, a total of 52 SPSUs recorded an annual turnover of Rs 1,22,154.70 crore, which is equivalent to 3.46 per cent of Maharashtra's GSDP.
The state government's investment in equity and long-term loans in these SPSUs was Rs 2,33,626.89 crore, against the total investment of Rs 4,90,595.02 crore as at the end of March 31, 2023, according to the CAG report.
Of the 110 SPSUs, 47 SPSUs made profits (Rs 1,833.29 crore), while 45 SPSUs incurred losses (Rs 3,623.40 crore) and 10 SPSUs reported neither profit nor loss.
The financial statements for the year 2022-23 were received from only 14 SPSUs within the stipulated time (September 30, 2023). Eight SPSUs have not filed their first returns since their inception.
The silver lining was that 49 SPSUs had accumulated a surplus of Rs 9,717.76 crore and 12 SPSUs had accumulated neither loss nor surplus, the report said.
CAG has suggested that the state government may review the functioning of all loss-making SPSUs and take necessary steps to improve their financial performance. The government may issue necessary directions to the administrative departments to set targets for each SPSU to provide financial statements on time and strictly monitor the clearance of arrears.
Further, the CAG has recommended that the government review dormant government undertakings and take appropriate decisions on their revival or liquidation. The government may urge the management of for-profit SPSUs to declare dividends as per the Government of Maharashtra Resolution 2012.
