SFC suffers massive loss

The report placed by the Managing Director of the State Financial Corporation on the table in the Legislative Assembly shows a loss of over Rs 1 crore in the financial year of 2016 -17 incurred by the Corporation. The income has dropped this year in comparison to the income for the same period in the previous financial year.
In his report the AG has tried to show that the Corporation has been usually earning profits by citing elaborate figures to convince the members that the Corporation is not running on a loss as is the case with most of the PSUs. The report attributes the reason for the loss to industrialists, transporters and hoteliers remaining the main defaulters of the Corporation. It asserts that income dropped owing to lesser interest recoveries.
Of course, there is no denial of the fact that the long period of summer unrest in 2016 had a devastating effect on the financial activities of the Corporation. The report makes a mention of some savings during the financial year 2016-17 owing to reduction in salary expenses of manpower that reached superannuation or opted voluntary retirement from the service and no fresh recruitment was made. However, we would have appreciated if the Corporation had grown to capacity and more jobs were created for the unemployed youth in the State. The Corporation is an important organization that has a pivotal role in streamlining and strengthening financial position of the State and its industrial sector. It is a matter of regret that industrialists, transporters and hoteliers should become the defaulters as these are not small finance generating units. It is important that the Corporation authorities should conduct a study as to why the prime units like industrialists and transporters and hoteliers should become defaulters. However, essentially the Corporation has to expand its activity and contribute to the State’s economy in a big way. It can also think of bringing in some healthy reforms to make the Corporation more effective and result oriented.