The Comptroller and Auditor General has pulled up leading public sector undertakings for glaring lapses in balance sheets, saying assets were overstated by Rs 377.43 crore (Rs 3.77 billion) in four Navratna companies including Steel Authority of India, while Indian Oil Corporation alone understated assets by Rs 312 crore (Rs 3.12 billion) during 2001-02.

In its report on public sector undertakings, presented on Thursday in Parliament, CAG said if 26 PSUs had not revised their accounts following test audits, the losses in 11 companies would have increased by Rs 328.28 crore (Rs 3.28 billion) and come down by Rs 15.29 crore (Rs 153 million) in one PSU.

Noting that accounts of all nine Navratna PSUs were checked, the report said CAG's comments had "brought out understatement of profits by Rs 243.22 crore (Rs 2.43 billion) in eight PSUs and understatement of loss by Rs 392.55 crore (Rs 3.92 billion) in SAIL.

The report said Indian Oil Corporation understated profits by Rs 312 crore and Bharat Heavy Electricals, Gas Authority of India, Hindustan Petroleum, Mahanagar Telecom Nigam Ltd and Oil and Natural Gas Corporation overstated profits ranging between Rs 1.47 crore (Rs 14.7 million) to Rs 28.71 crore (Rs 287.1 million).

SAIL also understated its liabilities by Rs 59.84 crore (Rs 594 million), followed by MTNL with Rs 13.07 crore (Rs 130.7 million) and HPCL with Rs 1.47 crore (Rs 14.7 million).

Citing lapses in non-Navratna PSUs, CAG said as much as Rs 402.83 crore (Rs 4.03 billion) was understated in liabilities by 14 PSUs, topped by Mecon Ltd (Rs 158 crore or Rs 1.58 billion).

Airport Authority of India was number two with Rs 75.29 crore (Rs 752.9 million) followed by Hindustan Steelworks Construction Ltd's Rs 70.76 crore (Rs 707.6 million) and Indian Airlines' Rs 56.69 crore (Rs 566.9 million).

Liabilities were overstated by just two PSUs -- NTC (South Maharashtra) Rs 15.29 crore (Rs 152.9 million) and New India Assurance Company Rs 7.50 crore (Rs 75 million).

The report said as many as 11 PSUs including Shipping Corporation of India and National Fertiliser Ltd overstated profits by about Rs 85 crore (Rs 850 million).

However, Airport Authority of India overstated profits by Rs 104.80 crore (Rs 1.04 billion) followed by overstatement of Rs 9.57 crore (Rs 95.7 million) by New India Assurance Company.

On the other hand, as many as 11 PSUs understated their losses by Rs 328.28 crore (Rs 3.28 billion), of which Hindustan Steelworks Construction alone accounted for Rs 114.93 crore (Rs 1.15 billion) followed by Mecon with Rs 73.5 crore (Rs 735 million) and Indian Airlines with Rs 56.69 crore (Rs 566.9 million).