Print Edition - 2014-07-11 | MONEY
PEs earn Rs 11b net profit; 17 of them still in red
Jul 10, 2014-
Public Enterprises (PEs) earned a net profit of Rs 11.40 billion in fiscal year 2012-13 after suffering a net loss of Rs 3.49 billion a year ago, thanks to a massive decline in losses incurred by Nepal Electricity Authority (NEA) and Nepal Oil Corporation (NOC).
According to the Annual Performance Review of the Public Enterprises 2014, other major contributors to the PE profits were Nepal Airline Corporation, Agriculture Development Bank Limited (ADBL), Agriculture Tools Company and Deposit and Credit Guarantee Corporation, which saw their profits rise.
However, 17 of the 37 PEs are still losing money.
NEA’s net loss more than halved to Rs 4.63 billion in 2012-13 from Rs 9.95 billion
a year ago, thanks to a 20 percent hike in electricity tariff.
Another loss-making PE, the NOC, was able to cut its lasses Rs 2.05 billion from the previous year’s Rs 9.53 billion.
The top profit-making PEs were Nepal Telecom
(Rs 11.40 billion), Agriculture Development Bank (Rs 2.29 billion), Rastriya Banijya Bank (Rs 1.31 billion) and Civil Aviation Authority of Nepal (Rs 1.09 billion).
“PEs are facing serious problems, but based on net profits, there have been some improvements in PE operation,” states the report.
However, the PEs are operating in cumulative loss of Rs 20.61 billion as of the last fiscal year, according to the report.
The government has made huge investment in PEs in the form of shares and loans, but returns have been stood low. The report says the government received dividends worth Rs 6.99 billion in 2012-13, 6.49 percent of the investment. In the previous fiscal year, the government had received Rs 6.26 billion.
The government invested a total of Rs 214 billion in PEs. In the last fiscal year, the government’s share investment in PEs rose by 5.13 percent points and loans increased by 5.2 percent points.
Nepal Telecom, Nepal Stock Exchange, Industrial Estate Management Limited and Hydroelectricity Investment and Development Company provided dividend to the government in the last fiscal year.
On the other hand, the PEs owe Rs 26.96 billion to their employees in terms of retirement benefits as of fiscal 2012-13, but they have not managed necessary fund for the same.
The size of the liabilities was Rs 21.20 billion in the previous fiscal.
Published: 11-07-2014 09:33