Of 21 state PSUs, 6 in green, 13 red
‘Losses because of mismanagement, not due to workers/employees’
Jammu, Apr 6: Out of 21 Public Sector Undertakings (PSUs) in J&K, only six are profit-making, while 13 have incurred losses in 2010-11.
Contrary to the general perception that ‘careless approach of workers/employees is responsible for the losses’, the Comptroller and Auditor General of India has put the blame at the doors of the management of PSUs.
“The losses are mainly attributable to deficiencies in financial management, planning, implementation of projects, running their operations and monitoring,” the latest CAG report reads.
It says: “A review of latest Audit reports of CAG showed that the state PSUs incurred losses to the tune of Rs 226.11 crore which were controllable with better management.”
Most of the working PSUs, it says, have failed to finalize even one account in each year causing accumulation of the arrears. “The main reasons for non finalization of the accounts by the PSUs noticed during audit were non-constitution of the Boards, non-holding of regular Board meetings, delay in audit of accounts by the Statutory Auditors and lack of trained staff,” the report states.
It says that during 2010-11 out of 21 working PSUs, six earned profit of Rs. 654.31 crore and 13 incurred losses worth Rs. 153.94 crore.
The J&K State Cable Car Corporation Limited had not prepared the profit and loss account while J&K State Forest Corporation had not submitted its accounts since 1996-97 when its audit was entrusted to CAG, the report notes.
J&K Bank topped the list of PSUs in profit making at Rs 615.20 crore while J&K State Power Development Corporation occupied second place by earning Rs. 37.17 crore profit.
The heavy losses were incurred by SRTC (52.52 Crore), JKI (Rs. 42.31 crore) and J&K State Financial Corporation (Rs. 26.22 Crore).
Lastupdate on : Fri, 6 Apr 2012 21:30:00 Makkah time
Lastupdate on : Fri, 6 Apr 2012 18:30:00 GMT
Lastupdate on : Sat, 7 Apr 2012 00:00:00 IST
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