Hyderabad: An audit snapshot has laid bare the fragile state of Telangana’s public sector, with mounting losses, eroded net worth and persistent delays in financial reporting across several state-run firms.A report tabled in the assembly by the Comptroller and Auditor General of India on state public sector enterprises (SPSEs) showed that as of March 31, 2023, 18 SPSEs covered in audit reported a combined turnover of ₹95,204.74 crore — equal to 7.25% of the state’s GSDP. Of these, 11 incurred losses totalling ₹11,969.66 crore. The CAG had audit jurisdiction over 83 SPSEs in Telangana, including eight in the power sector and 75 in the non-power sector. Of these, 16 were defunct, under liquidation or undergoing demerger. Among the remaining 67 working SPSEs, 49 were excluded from the report as their accounts were in arrears for three or more years as on Sept 30, 2023, or they did not furnish information for audit.The 18 SPSEs covered comprised seven power sector entities and 11 non-power entities. Their total investment from the Centre, state govt and others in equity and long-term loans stood at ₹98,572.08 crore as of March 31, 2023. Of these, six earned profits of ₹3,857.48 crore, 11 posted losses of ₹11,969.66 crore, and one reported neither profit nor loss. The report flagged a weak financial position in several enterprises. The net worth of nine out of the 18 SPSEs has been completely eroded due to accumulated losses. Together, they reported a negative net worth of ₹50,930.63 crore against an equity investment of ₹17,921.33 crore. Accounts submissionDelays in financial reporting remain widespread. A total of 71 SPSEs, including 16 inactive companies, failed to submit accounts on time. Of the 47 accounts reviewed and finalised between Oct 1, 2022, and Sept 30, 2023, the CAG issued comments on 35. These had a financial impact of ₹757.21 crore on profitability and ₹31,989.68 crore on assets and liabilities. The audit recommended that the state govt review the functioning of all loss-making SPSEs and take steps to improve performance, ensure timely finalisation of accounts and clearance of arrears, and assess inactive companies for revival or closure.
