Irfan Tramboo
SRINAGAR, Oct 7: J&K’s public sector enterprises spent only Rs 3.05 crore on corporate social responsibility (CSR) activities in 2022-23 against Rs 27.42 crore they were required to spend, leaving Rs 24.37 crore unspent, with the bulk of the shortfall stemming from the Jammu and Kashmir State Power Development Corporation Limited (JKPDC), according to the Comptroller and Auditor General of India (CAG).
The finding is contained in CAG Report No. 3 of 2026 on the Government of the Union Territory of Jammu and Kashmir, titled “Composite Audit Report-Civil and PSEs”, which covers the period ended March 2023.
The report examined compliance by Union Territory public sector enterprises (UTPSEs) with CSR provisions under the Companies Act, 2013.
Of the nine UTPSEs that met the eligibility criteria for CSR, seven were required to incur CSR expenditure of Rs 12.64 crore during 2022-23, calculated at two per cent of their average net profit for the preceding three financial years.
The remaining two-Kashmir Power Distribution Corporation Limited (KPDCL) and Jammu Power Distribution Corporation Limited (JPDCL)-were not required to spend on CSR as they had incurred losses during all three preceding financial years.
However, only three of the seven UTPSEs actually incurred CSR expenditure during the year-J&K Bank Limited, JKPDC and Chenab Valley Power Projects Private Limited (CVPPPL).
Together, the three had Rs 27.42 crore available for CSR spending, including Rs 16.34 crore carried forward from previous years, but spent only Rs 3.05 crore.
JKPDC accounted for almost the entire shortfall. Against Rs 25.80 crore allocated for CSR, the corporation spent only Rs 1.57 crore, leaving Rs 24.23 crore unspent-a shortfall of 94 percent.
CVPPPL spent Rs 0.30 crore against Rs 0.44 crore, leaving Rs 0.14 crore unspent, while J&K Bank utilised its entire Rs 1.18-crore allocation.
The audit also flagged prolonged delays in transferring JKPDC’s unspent CSR funds to the prescribed fund.
Of the Rs 24.23 crore unspent, Rs 7.60 crore relating to 2020-21 and Rs 8.54 crore relating to 2021-22 were transferred to the Swachh Bharat Kosh in October 2024, while Rs 8.09 crore relating to 2022-23 was transferred in June 2025.
The transfers were delayed by about three years, two years, and one year and nine months, respectively.
The CAG noted that Section 135(5) of the Companies Act requires unspent CSR amounts, except those relating to an ongoing project, to be transferred to a fund specified in Schedule VII within six months of the expiry of the financial year.
The audit also found that CSR spending was heavily concentrated towards the end of the financial year.
Of the Rs 3.05 crore spent by the three UTPSEs, Rs 2.73 crore, or 89 per cent, was incurred during the fourth quarter of 2022-23.
The CAG described spending evenly through the year as a best practice to avoid a rush to exhaust funds at the end of the financial year.
The institutional framework for CSR was also found deficient.
Although nine UTPSEs met the eligibility criteria, only four-J&K Bank, JKPDC, CVPPPL and J&K Police Housing Corporation Limited-had constituted CSR committees and framed CSR policies.
The other five-J&K Cable Car Corporation Limited, J&K Forest Development Corporation Limited, J&K Medical Supplies Corporation Limited, KPDCL and JPDCL-did not have CSR policies in place.
The CAG further found that only two of the three UTPSEs that carried out CSR activities-J&K Bank and CVPPPL-complied with the prescribed CSR disclosure requirements. JKPDC did not fully comply with the reporting requirements.
Appendix 5.2 of the report shows that JKPDC had the highest statutory CSR obligation among the nine eligible enterprises, at Rs 9.68 crore based on its three-year average profit.
J&K Bank’s obligation was Rs 1.18 crore, followed by J&K Medical Supplies Corporation at Rs 0.85 crore, J&K Police Housing Corporation at Rs 0.38 crore, CVPPPL at Rs 0.22 crore, J&K Cable Car Corporation at Rs 0.18 crore and J&K Forest Development Corporation at Rs 0.15 crore.
The report recommended that all eligible UTPSEs frame CSR policies and constitute CSR committees in accordance with the Companies Act and CSR Rules, while enterprises required to undertake CSR activities ensure that the prescribed funds are allocated and utilised as mandated.
Leave a Reply