SFC suffers income loss of over Rs 1 cr
Avtar Bhat
JAMMU, Feb 11: Jammu & Kashmir State Finance Corporation (JKSFC) has suffered an income loss of over Rs 1 crore in the financial year of 2016 -17, while the industrialists, transporters and hoteliers remained the main defaulters of the Corporation.
In its annual report presented in the State Assembly here recently, the Corporation said it had earned an income of Rs 556.24 lakh during the year 2016-17 while the income earned by it during the previous year was Rs 682.30 lakh.
As per the report, the income during the year has dropped as compared to the corresponding period due to lesser interest recoveries.
Besides, the Corporation during the financial year 2016-17 also witnessed a huge drop in recoveries, the report added.
Ascribing disturbances in the Kashmir valley during July to November 2016 as well as demonetization as the major causes that affected recoveries, the report said, the Corporation has during the year incurred expenditure to the extent of Rs 891.62 lakh against Rs 938.64 lakh incurred during the previous year. The Corporation witnessed a saving in expenditure during the financial year 2016-17 as against the corresponding year which was mainly due to the saving in employees benefit expenses as a result of decrease in number of employees on account of superannuation and VRS, the report added.
The Corporation has paid Rs 25.12 lakh as exgratia to the employees who have opted for VRS during the period, the report said.
It said that industrial Sector was the main defaulter of the SFC as total outstanding against the industrialists accounted for major portion of default of Rs 203.55 crore followed by Transporters with Rs 9.50 crore and hoteliers with Rs 4.60 crore.
The aggregate over dues of Rs 217.66 crore as on March 31, last year of the Corporation comprises default on account of principal, Rs 31.65 crore, interest and other amount Rs 186.01 crore.
The report said that the over dues during the year have decreased to Rs 242.74 crore over total over dues of Rs 460.40 crore which were on March 31, 2016. A considerable decrease of Rs 5.42 crore in recovery of the Corporation was witnessed in Financial year 2016-17 as compared to the corresponding period which is assigned to disturbances and complete shutdown in the Valley from July to November in 2016, the report added.
As the major investment of the Corporation is in Kashmir Division, therefore it has huge impact on its recoveries also due to disturbances there, the report said.
The Corporation during the year 2016-17 has sanctioned 280 units aggregated to Rs 1123.74 lakh as against Rs 865.17 lakh sanctioned for 176 units in 2015-16. However the aggregate disbursement of loan was Rs 974 .51 lakh paid to 277 units as against the disbursement of Rs 886.64 lakh paid to 168 units during previous year.
The aggregate outstanding of loans at the end of the year 2016-17 was at Rs 254.50 crore against the loan outstanding of Rs 509.35 crore as on March 31, 2016. Out of it the total outstanding of Rs 254.50 crore was in respect of industries with Rs 214.79 crore with Hotels, Rs 9.70 crore with houseboats and Rs 29.97 crore with Transport.
Commenting on the shortcomings, the M D of the Corporation in his note has mentioned that a prospect of good and productive year appeared to be looming. However, unfortunately the disturbances that erupted in July 2016 lasted beyond November that year virtually brought the whole economic activity to a grinding halt which derailed the entire process yet again when the quarter first of the fiscal had started off well and the post flood recovery was in the process.
The MD also mentioned that JKSFC was passing through strained circumstances for many years and went eventually through stress and turmoil during the year. The recoveries dipped so the income, whereas the expenditure being committed in nature go unabated besides huge accumulated committed liabilities.
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