CAG audit finds non-compliance with accounting standards in CPSE financial reports

This audit examined the General Purpose Financial Reports, corporate governance, and compliance of Central Public Sector Enterprises (CPSEs) for the period ended March 2024. It also reviewed specific areas such as Research and Development expenditure, Corporate Social Responsibility (CSR) activities, disinvestment processes, and sustainability status.

Central Public Sector Enterprises (CPSEs), including Government companies, Government controlled other companies, and Statutory Corporations under the Union Government.

• The report covers the financial performance, investment, and returns of CPSEs.
• It details CAG's oversight role, including the appointment of statutory auditors and the submission of financial statements.
• The audit identifies non-compliance with Accounting Standards/Ind AS by CPSEs.
• It reviews corporate governance aspects such as Board of Directors meetings, Audit Committees, and Vigil Mechanisms for listed and unlisted CPSEs.
• The report analyzes expenditure on Research and Development (R&D) by CPSEs.
• It examines Corporate Social Responsibility (CSR) planning, financial components, project implementation, and reporting inconsistencies.
• The audit includes an analysis of Memoranda of Understanding (MoU) between Administrative Ministries and Navratna CPSEs.
• It reviews the disinvestment process, including targets, achievements, and mode-wise realization.
• The report assesses the sustainability status of CPSEs.
• Annexures list companies with zero or negative net worth, accounts in arrears, and those under liquidation.

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