Off 34 PSUs only three Govt companies have submitted their accounts for audit
JAMMU EXPRESS CORRESPONDENT
Jammu, April 13: In a major revelation, an audit of Public Sector Undertaking (PSUs) in Jammu and Kashmir has exposed the poor financial management of these organisations, which have turned into a ‘white elephant’, due to decades of management and lack of accountability.
As per the audit carried out by Comptroller and Auditor General of India (CAG), mandated by the Constitution of India, to promote accountability, transparency and good governance has revealed ‘shocking details’ of the utter failure of the PSUs.
As per the report, as of March 31, 2021, there were 40 Companies under the purview of CAG’s audit. Of these, accounts for the year 2020-21 were due from 34 Government Companies. However, only three Government Companies submitted their accounts for the financial year 2020-21 for audit by CAG on or before November 30, 2021.
“As on 31 March 2021, there were 42 PSUs in Jammu and Kashmir under the audit jurisdiction of the CAG. These include 39 Government Companies (including six inactive Government Companies with delay in accounts ranging between four years to 31 years), two Statutory Corporations and one Government Controlled Other Company”, reveals Audit report.
One PSU (Jammu and Kashmir Bank Limited) is listed on the stock exchange. There are six inactive PSUs (including four under liquidation) having investment of ₹ 57.57 crore towards capital (GoJ&K: ₹ 56.59 crore and others: ₹ 0.98 crore) and long term loans of ₹ 0.83 crore (GoJ&K: ₹ 0.83 crore and others: Nil).
As of March 31, 2021, there were two Statutory Corporations under the purview of CAG’s audit. The accounts of Jammu & Kashmir State Road Transport Corporation and Jammu & Kashmir Financial Corporation for the years 2019-20 and 2020-21 were awaited as on 30 November 2021.
“PSUs are established to carry out activities of commercial nature keeping in view the welfare of people and occupy an important place in the economy of J&K. According to Section 395 of the Companies Act 2013, Annual Report on the working and affairs of a Government Company is to be prepared within three months of its Annual General Meeting (AGM) and as soon as may be after such preparation laid before both the Houses of State Legislature together with a copy of the Audit Report and any comments upon or supplement to the Audit Report, made by the CAG.
Almost similar provisions exist in the respective Acts regulating statutory corporations. This mechanism provides the necessary legislative control over the utilisation of public funds invested in the companies from the Consolidated Fund of State.
