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Profit earning J&K Cements, suffers loss of Rs 26.28 crore during 2014-15: CAG 7/5/2016 10:59:40 PM Early Times Report Srinagar, July 5 : Profit earning Jammu and Kashmir Cements (J&KC) limited has suffered a lost off Rs 26.28 crore during 2014-15 mainly due to no definite procurement policy, failure to procure coal under e-auction and grade slippage. According to audit report of Comptroller and Auditor General (CAG) of India for the year ended March 31, 2015, the J&KC Company was in arrear since 2008-09. However, the company which earned profit of Rs 4.35 crore during the year 2011-12, again suffered a loss of Rs 26.26 crore during 2014-15. The report said that capacity utilization installed capacity for clinker and cement production ranged between 25 per cent to 48 per cent. Raw mills, kilns and cement mills of old pant were under-utilized. Low operation of kilns led to the loss of production of cement valuing Rs 187.21 crore, it said. The CAG said excess consumption of 582778 MTs of coal and the power to the extent 658.04 lakh KWh I cement plants caused extra burden of Rs 80.17 crore to the company. The report said that company had not formulated a definite procurement policy. Failure of the Company to procure coal under E-auction form ECL, Kolkata, resulted in extra expenditure of Rs 87.50 lakh. Grade slipping of 75179 MTs of Grade "A" coal resulted in variation of cost of Rs 26.02 crore which was not recovered from the defaulting contractors by the company. The report said that shortfall of production of 5.30 lakh MTs of clinker due to low capacity utilization of new cement plant at Khrew resulted in loss of production of cement valuing Rs 388.19 crore. Delay in setting up of cement unit at Samba resulted in loss of production of 1.57 lakh MTs of cement valuing Rs 113.40 crore.   Share This News with Your Friends on Social Network     Comment on this Story

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