CAG finds 14 J&K PSEs' net worth erased by ₹252.53 crore losses

This audit examined the financial performance, corporate governance, and operational efficiency of Public Sector Enterprises (PSEs) in the Union Territory of Jammu and Kashmir, as well as the execution of works under the NABARD-RIDF scheme and the IT systems of the Finance Department for the period ended March 2023.

Who it concerns: Government of Union Territory of Jammu and Kashmir, specifically its Public Sector Enterprises (PSEs), Public Works Department, Jal Shakti Department, and Finance Department.

What the auditor found

• 20 UTPSEs reported losses totaling ₹252.53 crore in 2022-23.
• Net worth of 14 out of 19 PSEs was completely eroded by accumulated losses.
• Only 4 out of 34 UTPSEs submitted financial statements for CAG audit by 30 September 2023.
• 19 UTPSEs had accounts in arrears for three years or more.
• CAG recommended the UT Government initiate liquidation for inactive PSEs and take remedial action for loss-making entities.
• CAG recommended the Government direct PSEs with account arrears to finalize financial statements to ensure legislative oversight.

Also in the document

• CAG found that 19 Public Sector Enterprises had not submitted their accounts for audit for three years or more, leaving government investments outside legislative oversight.
• CAG reported that the net worth of 14 PSEs was completely eroded by accumulated losses, with total losses of ₹252.53 crore reported by 20 entities in 2022-23.