CAG Report Unveils Financial Missteps Across Major Companies

The CAG report highlights financial mismanagement by Oriental Insurance, SBI Cards, and UTI Infrastructure. Losses resulted from improper bidding rates and imprudent underwriting, alongside policy violations in credit enhancement. UTI's tender mishandling led to unnecessary expenditure. Recommendations for improved internal controls were made.

The latest CAG report reveals financial missteps by several prominent companies, including the state-owned Oriental Insurance Company Ltd. The report states a loss of Rs 194 crore in FY20 due to misjudged bidding rates for the Pradhan Mantri Fasal Bima Yojna.

Failing to adjust pricing components per treaty terms, Oriental Insurance suffered under the Loss Corridor clause. In another case, flawed underwriting of the Group Janta Personal Accident Policy caused a loss of Rs 14.92 crore. Additionally, SBI Cards breached its credit policy by raising a client's credit limit to Rs 90 crore despite red flags, leading to a Rs 19.65 crore loss.

Separately, UTI Infrastructure Technology and Services Ltd incurred an avoidable cost of Rs 5.71 crore after scrapping a tender for PAN card printing and introducing restrictive criteria. CAG recommends stricter adherence to internal controls and credit policies across the board.

(With inputs from agencies.)