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

Stories to read over the weekend

At one time these pale rooms of the Delhi commission for women looked like sleepy corners of officialdom; they are now best described as a bustling sarkari office. The woman who transformed this moribund organisation hardly looks like a powerful leader. Dressed in casual blue jeans and loose deni

Tata Trusts, PFA to build state-of-the-art veterinary hospital

Tata Trusts and People For Animals (PFA) announced their collaboration to build a state-of-the-art, multi-specialty veterinary hospital and emergency clinic at Navi Mumbai to serve the needs of all domestic and farm animals at affordable rates.   The hospital will be built in Kala

The shot just got smarter

A long queue of women, infants in their arms, extends outside the immunisation room at the community health centre (CHC) in Bhangel village, Noida, a pink double-storey building beside a bustling market. Unmindful of the chit-chatting and baby babble, Mariamma Samuel, an auxiliary nurse-cum-midwi

Do you think fugitive industrialist Vijay Mallya will be extradited from Britain to India?

Do you think fugitive industrialist Vijay Mallya will be extradited from Britain to India?

Reform first, privatise later: Bibek Debroy to railways

Before privatisation and corporatisation, the Indian Railways need to undertake major reforms including commercial accounting, decentralisation and human resource among others, said Bibek Debroy, economist and member, NITI Aayog at Railways Reforms and Governance Conclave organised by Governance Now on Fri

NTPC plans for 32 GW installed capacity via renewable sources

NTPC Ltd has raised Rs 2,000 crore through green masala bonds in overseas market under its $4 billion medium term note programme, union minister Piyush Goyal informed the Lok Sabha. The proceeds of these bonds will be used for financing renewable energy projects in accordance with applicable

Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter