NTPC overstated profit by Rs 938 cr

State-run power firm NTPC overstated its profits by Rs 938 crore (R 9.38 billion) in 2007-08, the Comptroller and Auditor General of India said in a report, but categorically stated that chances of Satyam like frauds in PSUs are very remote.

The report, which was tabled in Parliament on Thursday, said PSUs Bharat Electronics Ltd and BEML also overstated their profits by about Rs 61 crore (Rs 610 million) and Rs 3.06 crore (Rs 30.6 million) respectively in 2007-08 financial year.

On NTPC's overstated profits, CAG Principal Director Pramode K Mishra said, "This is on account of sales, there was a case going on in the Supreme Court and according to the accounting standards, disputed receipts cannot be presented in the court."

When asked if Satyam like incidence could happen in PSUs, Mishra said, "Public sector companies accounts confirm to the accounting standards, once there are statutory auditors and than the government do the auditing ... chances of a Satyam like account fudging are very remote in PSUs."

The founder of IT firm Satyam Computer, B Ramalinga Raju, earlier this year admitted to inflating accounts of the company to crores of rupees.

Another state-fun firm Engineering Projects India also overstated its profits by Rs 6.81 crore (Rs 68.1 million) in 2007-08, the report said.