Major Audit Comments on PSUs' Accounts

Audit Report 2006-07

EDC Limited (2005-06)

 1)                  Non-provision towards bills pending for payment in respect of civil/maintenance works completed as on 31 March 2006 resulted in understatement of current liabilities as well as revenue expenses and overstatement of profit by Rs 8.16 lakh.

 2)                  Short-provision of depreciation for each scrip as per NBFC Prudential norms resulted in overstatement of profit for the year by Rs 3.50 crore.

Goa Antibiotics and Pharmaceuticals Limited (2005-06)

Accounting of Rs 18.69 lakh being the value of expired stock held by        C & F agent at Indore as loss even though it was decided to raise a debit note, resulted in understatement of receivables and overstatement of loss by                Rs 18.69 lakh.

Goa Meat Complex Limited (2005-06)

 1)                  Accounting of non- refundable grants of revenue nature, received from the State Government during the year 2005-06 for meeting the expenditure towards ‘salaries and contingencies’, under ‘reserves’ instead of ‘income’ (to the extent grants utilised) resulted in overstatement of ‘Reserves and Surplus’ and understatement of  profit for the year by Rs 77 lakh.

 2)            Inadequate provision for gratuity resulted in understatement of expenditure and overstatement of profit for the year by Rs 31.16 lakh.

Kadamba Transport Corporation Limited (2005-06)

Non-provision for doubtful advances of Rs 10.38 lakh resulted in overstatement of loans and advances and understatement of loss.

Goa State Infrastructure Development Corporation Limited (2005-06)

 Non-provision of Rs 5.46 crore being the value of unsettled bills relating to works completed and put to use before 31 March 2006 resulted in understatement of Current Liabilities - Sundry Creditors.

Errors and omissions noticed in case of Statutory Corporation

Goa Industrial Development Corporation (2004-05)

 1)                  Non-accounting of unutilised grants, received from the Central/State Government, and interest earned thereon, resulted in understatement of Sundry Creditors as well as Cash at Bank by Rs 5.06 crore.

 2)                  Delayed payment charges received from the allottees towards rent and water was credited to Sundry Creditors Account instead of crediting to income which resulted in overstatement of deficit by Rs 8.67 lakh.

3)                  Non-capitalisation of the construction cost of Head Office Building completed and put to use resulted in overstatement of work-in-progress and understatement of office buildings under Fixed Assets by Rs 2.62 crore.  Further, as depreciation was not charged, deficit for the year was understated by Rs 26.16 lakh.

Audit Report 2005-06

 Goa Tourism Development Corporation Limited (2004-05)

Non-accounting of liabilities towards completed capital works, for which bills were received, had resulted in understatement of liabilities by Rs.79.74 lakh.

Goa State Infrastructure Development Corporation Limited (2004-05)

Non-accounting of liabilities, though bills were received, had resulted in understatement of liabilities by Rs.15.90 crore with consequent understatement of capital work-in-progress by Rs.0.18 crore and expenditure by Rs.15.72 crore.

 Goa Electronics Limited (2002-03)

Fixed assets include an amount of Rs.22.94 lakh being the interest and arbitration cost paid in respect of a disputed case. As these expenses did not increase the value of assets, capitalisation thereof had resulted in overstatement of assets and understatement of expenditure as well as loss for the year by Rs.22.94 lakh.

Kadamba Transport Corporation Limited (2004-05)

Non-refundable grant received from Government was accounted as liability instead of as income for the year resulting in understatement of income and overstatement of loss by Rs.97.59 lakh.

Goa Forest Development Corporation Limited (2004-05)

7.1.21    Non-accounting of moveable and immoveable assets, transferred by the Government in 1998-99, for want of revaluation report resulted in understatement of Gross Block of Fixed Assets and Share Capital by Rs.18.91 lakh.

Errors and omissions noticed in case of Statutory Corporation

Goa Industrial Development Corporation (2003-04)

Depiction of Rs.14.88 lakh being the expenditure incurred, Rs.1.34 lakh being debtors outstanding for more than three years and which were doubtful of recovery and Rs.4.50 lakh being the expenditure incurred towards study and not recoverable, as recoverable resulted in overstatement of amounts recoverable by Rs.20.72 lakh with consequent understatement of expenditure as well as deficit.

Audit Report 2004-05

 EDC Limited (2003-04)

1) Non-provision for doubtful investments in two loss making subsidiaries had resulted in overstatement of investments and understatement of loss for the year by Rs.19.95 crore.

2) Inclusion of subsidy amounts receivable from the State Government without preferring any claim had resulted in overstatement of receivables by Rs.81.41 lakh.

Goa Tourism Development Corporation Limited (2003-04)

Non-accounting of liabilities towards completed capital works for which bills were received had resulted in understatement of fixed assets and Current liabilities & provisions by Rs.35.79 lakh.

Goa Antibiotics and Pharmaceuticals Limited (2003-04)

Non-provision of Sales Tax / Penalty demanded by the Commercial Tax Officer, Hyderabad in respect of sales made in Andhra Pradesh had resulted in understatement of liabilities and loss for the year by Rs.10.83 lakh.

 Kadamba Transport Corporation Limited (2003-04)

Accounting of subsidy as income for the year instead of deducting from the cost of fixed assets had resulted in overstatement of income and fixed assets by Rs.31.50 lakh, depreciation by Rs.2.49 lakh and understatement of loss by Rs.29.01 lakh.