: ‘198 government companies incur accumulated losses of Rs 2,00,419 cr’ #FinanceIndia #StockMarketNEWS #Business Indo-Asian News Service New Delhi There were 198 government companies and corporations

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‘198 government companies incur accumulated losses of Rs 2,00,419 cr’ #FinanceIndia #StockMarketNEWS #Business
Indo-Asian News Service

New Delhi

There were 198 government companies and corporations with accumulated losses of Rs 2,00,419 crore, as on March 31, 2021, and of these, the net worth of 88 companies had been completely eroded by their accumulated losses, a CAG report said.

“As a result, the aggregate net worth of these companies had become negative to the extent of Rs 1,13,894 crore as on March 31, 2021. Only 20 out of these 88 companies earned a profit of Rs 973 crore during the year 2020-21,??? the General Purpose Financial Reports of Central Public Sector Enterprises (CPSEs) Union Government (Commercial) Report No. 27 of 2022, tabled in Parliament on Thursday, said.

The report deals with 453 government companies and corporations (including six statutory corporations) and 180 government-controlled other companies. As many as 84 CPSEs (including 23 government-controlled other companies) whose accounts were in arrears for three years or more or were under liquidation or first accounts were not due are not covered in thisreport.

On returns from government companies and corporations, the report said that 251 government companies and corporations earned profit of Rs 1,95,677 crore during 2020-21 of which, 72% (Rs 1,40,083 crore) was contributed by 97 government companies and corporations in three sectors power, petroleum, and financial services. Return on Equity (ROE) in these 251 CPSEs was 16. 34% in 2020-21 as compared to 13. 54% in 224 CPSEs in 2019-20.

On rate of real return (RORR) on government investment, CAG said that out of 633 CPSEs the Central government has direct investment in 195 CPSEs.

RORR in respect of 173 CPSEs (58 listed CPSEs and 115 unlisted CPSEs) has been computed since 2000-01 to compare the same with the conventional rate of return on historical cost.

“RORR was 17. 52% in comparison to conventional rate of return on historical cost of 46. 78% in 2019-20. RORR has shown an increasing trend till 2006-07 after which it started to decline and ranged between 10% and 23% during the preceding five years from 2016-17 to 2020-21,??? it said.

The report further said that 112 government companies and corporations declared a dividend of Rs 80,105 crore during the year 2020-21. Out of this, the dividend received/receivable by Central government amounted to Rs 36,982 crore which represented 7. 22% return on the total investment by the Central government (Rs 5,12,547 crore) in all government companies and corporations.

It said that 10 government companies under the Ministry of Petroleum and Natural Gas contributed Rs 28,388 crore representing 35. 44% of the total dividend declared by all government companies and corporations.