E-Paper
Audit flags PunCom’s failure to recover ₹21-crore debt
In its latest audit report, the principal accountant general of Punjab has once again found glaring financial irregularities at Punjab Communication Limited (PunCom), Mohali
In its latest audit report, the principal accountant general of Punjab has once again found glaring financial irregularities at Punjab Communication Limited (PunCom), Phase 7.
The report that was forwarded to the PunCom managing director a month ago lists at least 20 areas where the company did not comply with norms.
Set up in 1981, PunCom is a premier telecom and IT equipment and solutions provider company, supplying and implementing a host of state-of-the-art telecommunications software and integrated solutions.
Yet, it has a history of adverse audit reports and observations since 2006-07.
Its tardy recovery rate from debtors is the first issue flagged by the latest audit report. It states that PunCom’s project and sales divisions have failed to recover debt worth ₹21 crore, some of which has been pending for over 23 years. The audit also states that the management’s inability to dispose of finished goods led to the loss of around ₹14 crore.
Another major finding of the audit is irregular contribution to the Employees Provident Fund (EPF) scheme, which led it to make imprudent payments worth ₹4.4 crore to high-ranking officials. The audit report also points that PunCom overpaid railways ₹1 crore in GST due to an incorrect consolidated amount. Besides, an employee, who was overpaid ₹1.8 lakh 15 years ago, has yet to return the money.
The report adds that the company indulged in disproportionate leave encashment by considering 26 days as a working month. The 26-day formula caused losses and violated the law governing the employees’ terms of service.
In another wrong business practice flagged by the audit, PunCom failed to clearly disclose salaries of top employees. The audit also found that employees’ bills were cleared without adequate checks, and two invoices were issued for the same product.
The report says that the company is not complying with the Punjab Scheduled Castes and Backward Classes (Reservation in Service) Act, 2006, and has also not implemented the Punjab government’s orders on providing reservations to the economically weaker section (EWS) of society.
Despite being caught on the wrong side of rules, the audit report notes that the PunCom management failed to respond to any of its queries.
When contacted, PunCom managing director Neelima said they were in the process of filing replies to the objections raised in the audit report.
