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

Music is universal. It has no language: Vani Jairam

Vani Jairam’s childhood dream of becoming a playback singer was realised when veteran film music composer Vasant Desai gave her the opportunity to sing Bole Re Papi Hara and two other songs in the movie Guddi. After that, the multilingual singer went on to sing for eminent music per

Should there be death penalty for those involved in lynching?

Should there be death penalty for those involved in lynching?

Battle over cattle, Delhi govt schools lead the way and, why we must return to Gandhi & Tagore

On May 23 this year, the ministry of environment issued ‘Rules on prevention of cruelty to animals (regulation of livestock market)’ with the purported aim of regulating animal markets. When one reads the rules – notwithstanding the lame efforts from union ministers to issue clarificati

BEML unveils 9 MW capacity windmill park

  BEML, a mini ratna category-1 enterprise of the defence ministry, has set a target of using 100 percent renewable energy for its own consumption.   In this connection, BEML’s 9 MW Windmill Park installed at Bagalkot District in Karnataka was recently

BHEL registers increase in intellectual capital

  Bharat Heavy Electricals Limited (BHEL), a Maharatna enterprise, has recorded nearly 14 percent growth in its intellectual capital in 2016-17 fiscal. During the year, a record 508 patents and copyrights were filed by the company, translating into filing of nearly two patents/copyrights

NALCO partners with CII, Odisha for outreach programmes on GST

  National Aluminium Company Limited (NALCO) has joined hands with the Confederation of Indian Industries (CII), Odisha, to organise outreach programmes for industries and other stakeholders on GST implementation.   Series of interactive programmes are being



Video

पाकिस्तानी सेना कैमरे में कैद करना चाहती थी ये हमला

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter