CAG raps HLL for poor market practices -Governance Now

CAG raps HLL for poor market practices

The healthcare PSU has repeatedly failed to meet turnover targets and sale of some of its popular products has also come down in the past few years

GN Bureau | August 6, 2016

#CAG #HLL #PSU

The Comptroller and Auditor General (CAG) of India has heavily criticised the central public sector undertaking (PSU) HLL Lifecare Limited, which makes and markets a range of health care products. In its latest report to the health ministry, it said that the company has been making poor marketing policies, repeated failure in meeting turnover targets, loss in sales of its popular products over the past few years, according to report by DNA.

CAG has also criticised the company for being heavily dependent on a single buyer – the central government, where it faces long pending subsidy claims and supplies products in a negative margin.

The report also notes that there is a steep decline in sales of some of its products including popular condom brand Moods, calcium tablet HILCAL 500 and the antifungal medication HILZOL.

It said all this happened while HLL offered cash and quantity discounts to its clients in a bid to increase its turnover and that the company carried on the sales of the products without a proper pricing policy.

The report states that all domestic divisions of HLL failed to achieve respective targets in the past two years. Also the PSU has not evolved any “distinct, separate and documented marketing policy”, it did not charge any interest for delayed payments and had an outstanding of Rs 86.39 crore as on March 31, 2015, from clients under direct marketing and exports.

CAG also criticised the company’s decision to finance the export of iron ore from Bellary to China, where it made advance payments without obtaining adequate security.

Comments

Other News

‘Oral cancer deaths in India cause productivity loss of 0.18% GDP’

A first-of-its-kind study on the economic loss due to premature death from oral cancer in India by the Tata Memorial Centre has found that this form of cancer has a premature mortality rate of 75.6% (34 premature events / 45 total events) resulting in productivity loss of approximately $5.6 billion in 2022

Days of Reading: Upendra Baxi recalls works that shaped his youth

Of Law and Life Upendra Baxi in Conversation with Arvind Narrain, Lawrence Liang, Sitharamam Kakarala, and Sruti Chaganti Orient BlackSwan, Rs 2,310

Voting by tribal communities blossoms as ECI’s efforts bear fruit

The efforts made by the Election Commission of India (ECI), over last two years, for inclusion of Particularly Vulnerable Tribal Groups (PVTG) communities and other tribal groups in the electoral process have borne fruit with scenes of tribal groups in various states/UTs participating enthusiastically in t

GST revenue for April 2024 at a new high

The gross Goods and Services Tax (GST) collections hit a record high in April 2024 at ₹2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%). After accounting for refunds, the net GST

First Magahi novel presents a glimpse of Bihar bureaucracy a century ago

Fool Bahadur By Jayanath Pati (Translated by Abhay K.) Penguin Modern Classics, 112 pages, Rs 250 “Bab

Are EVs empowering India`s Green Transition?

Against the backdrop of the $3.5 billion Production-Linked Incentive (PLI) scheme launched by the Government of India, sales of Electric Vehicles (EVs) are expected to grow at a CAGR of 35% by 2032. It is crucial to take into account the fact that 86% of EV sales in India were under the price bracket of $2