CAG flags governance issues among central public sector enterprises

The CAG has flagged concerns over corporate governance issues among the central public sector enterprises (CPSEs), saying that out of the 71 listed CPSEs, 26 had inadequate board composition, 55 lacked the required number of independent directors and 20 did not have a woman director on their boards.

The CAG submitted a report on the financial performance of CPSEs in Parliament on Monday, reviewing the finance and corporate governance of government entities for 2021-22. The report also said that many CPSEs failed to meet corporate social responsibility (CSR) spending targets, with 14 CPSEs allocating less than 2% of their net profit towards CSR activities. A total 121 central public sector enterprises and corporations declared a dividend of ₹1.11 lakh crore for 2021-22, out of which the Centre received Rs₹54,381 crore, according to the report.

The losses incurred by government companies and corporations decreased to Rs 31,347 crore in 2021-22.