New Delhi, Aug 17: The Comptroller and Auditor General (CAG) has pulled up public sector coal companies for overstating their profits to the tune of Rs 489.86 crores for the financial year 1995-96.The overstatement of profits has been due to non-provision for various liabilities in contravention of the accounting standards, by Bharat Coking Coal Ltd, Eastern Coalfields Ltd, Mahanadi Coalfields Ltd, Northern Coalfields Ltd and Western Coalfields Ltd, the CAG report for 1996-97 said.The Eastern Coalfields Ltd (ECL), a subsdiary of Coal India Ltd, overstated its profits by Rs 152.23 crore in 1995-96. Out of this Rs 150.40 crore has been due to non-provision of full liability of gratuity in line with the accounting standard 15 issued by the ICAI.The accounting standard 15, issued by Institute of Chartered Accountants of India , says full provision for gratuity need to be made on acturial valuation basis. This standard has become mandatory from April one, 1995.The management of ECL has stated that if full liabilty of gratuity on actuarial valuation for the past and current period have been charged, it would have been disproportionate to the current year's revenue and expenditure.Bharat Cocking Coal Limited (BCCL) has also over stated its profits by Rs 149 crore, due to non-provision of full liabilty of gratutity and over statement of sundry debtors, the report said. The CAG Report said had BCCL made provision for these, the company's profit of Rs 102.26 crore would turn into loss of Rs 46.80 crore.BCCL excluded Rs 138.16 crore in 1995-96 on account of full liabilty of grtuity and ovestating sundry debtors by Rs.10.90 crore.Other public sector coal companies to overstate their profits were Western Coalfields ltd (WCL), Northern Coalfields Ltd (NCL) and Mahanadi Coalfields Ltd (MCL), the report said.
