Public Enterprises net profit Rs 10.55 billion
KATHMADNU, July 7:
Three-dozen public enterprises (PEs) that have long been plauged by low productivity posted a rise in profit by Rs 8.3 million in the last fiscal year. Their total profit touched Rs 10.55 billion, according to Ministry of Finance (MoF).
The annual report on PEs that the finance minister presented at the parliament on Thursday disclosed that a total of 22 PEs reported net profit in 2009/10, whereas 14 PEs suffered a net loss during the year 2009/10.
The total operating income of the PEs shot up by whopping 21.43 percent to Rs 130.98 billion during the year.
Among all PEs, service sector entities recorded the highest growth in income during the year. The service sector entities posted impressive 70.2 percent growth in income during the year, compared to the previous year.
However, industrial sector entities -- one of the vital sectors of the economy -- saw the lowest growth in income by 4.2 percent during the period.
Total fixed capital of PEs has increased to Rs 139.36 billion during the year compared to earlier year.
"PEs enhancing net fixed capital during the review period are trade, service and finance. However, net assets of industrial, social and public utility didn´t increase over the period," states the report.
The share investment by the government in the PEs has declined by 3.9 percent to Rs 82.75 billion whereas loan investment rose double digit by 13.8 percent to Rs 84.91 billion respectively during the year 2009/10.
Despite double digit rise in government´s loan investment in PEs during the fiscal year 2009/10, contribution of operating income of PEs in Gross Domestic Product (GDP) has been recorded at 11.2 percent.
"Contribution of dividend from PEs in government revenue has stood at 2.7 per cent during fiscal year 2009/10 which is 5.8 percent return on the total investment by the government in PEs -- far lower than the prevalent interest rate," states the report.
Similarly, contribution of total operating income from PEs contributed by 11.2 percent in total GDP with trading group contributing the highest 5.2 percent. During the review period, the government issued loan to PEs worth 4 percent of total government expenditure and 11.9 percent of total capital expenditure.
Efficiency of employees of the trading sector of PEs has been found the highest compared to those employed in other sectors.
"While analyzing the contribution on the basis of operating profit earned by PEs, contribution of employees in the trading sector is the highest while industrial sector employees contributed the lowest," the report further states.
According to sector-wise analysis, total operating income of industrial sector that includes seven PEs, has increased to Rs 4.72 billion despite the fact that PEs under this sector suffered a total loss of Rs 467.4 million during the year.
Though trading sector, which comprises six PEs, suffered a collective loss of Rs 556.9 billion, total earning of this sector went up by 20.3 percent to Rs 60.93 billion.
Similarly, total income earned by service sector rose to Rs 8.1 billion with Nepal Airlines Corporation becoming the biggest earner. Total net profit earned by service sector PEs stood at Rs 360 million during the year -- a significant improvement compared to the loss of Rs 593 million during previous year.
Social sector which includes five PEs saw its operating income decline by 13. 8 percent to Rs 1.28 billion leading to a loss of Rs 152.2 million, down from Rs 283.2 billion a year earlier.
Similarly public utility, under which fall three PEs, also earned total operating income of Rs 20.3 percent to Rs 42.48 billion during the review year 2009/10.
The survey has indicated that the government´s is lacking effective monitoring of the conditions of the PEs after their privatization.
"Some of the PEs have been closed after the privatization. Even those operating have been witnessing decline in investment, production and productivity leading to cut in employment," the report added.
Source: Republica
Three-dozen public enterprises (PEs) that have long been plauged by low productivity posted a rise in profit by Rs 8.3 million in the last fiscal year. Their total profit touched Rs 10.55 billion, according to Ministry of Finance (MoF).
The annual report on PEs that the finance minister presented at the parliament on Thursday disclosed that a total of 22 PEs reported net profit in 2009/10, whereas 14 PEs suffered a net loss during the year 2009/10.
The total operating income of the PEs shot up by whopping 21.43 percent to Rs 130.98 billion during the year.
Among all PEs, service sector entities recorded the highest growth in income during the year. The service sector entities posted impressive 70.2 percent growth in income during the year, compared to the previous year.
However, industrial sector entities -- one of the vital sectors of the economy -- saw the lowest growth in income by 4.2 percent during the period.
Total fixed capital of PEs has increased to Rs 139.36 billion during the year compared to earlier year.
"PEs enhancing net fixed capital during the review period are trade, service and finance. However, net assets of industrial, social and public utility didn´t increase over the period," states the report.
The share investment by the government in the PEs has declined by 3.9 percent to Rs 82.75 billion whereas loan investment rose double digit by 13.8 percent to Rs 84.91 billion respectively during the year 2009/10.
Despite double digit rise in government´s loan investment in PEs during the fiscal year 2009/10, contribution of operating income of PEs in Gross Domestic Product (GDP) has been recorded at 11.2 percent.
"Contribution of dividend from PEs in government revenue has stood at 2.7 per cent during fiscal year 2009/10 which is 5.8 percent return on the total investment by the government in PEs -- far lower than the prevalent interest rate," states the report.
Similarly, contribution of total operating income from PEs contributed by 11.2 percent in total GDP with trading group contributing the highest 5.2 percent. During the review period, the government issued loan to PEs worth 4 percent of total government expenditure and 11.9 percent of total capital expenditure.
Efficiency of employees of the trading sector of PEs has been found the highest compared to those employed in other sectors.
"While analyzing the contribution on the basis of operating profit earned by PEs, contribution of employees in the trading sector is the highest while industrial sector employees contributed the lowest," the report further states.
According to sector-wise analysis, total operating income of industrial sector that includes seven PEs, has increased to Rs 4.72 billion despite the fact that PEs under this sector suffered a total loss of Rs 467.4 million during the year.
Though trading sector, which comprises six PEs, suffered a collective loss of Rs 556.9 billion, total earning of this sector went up by 20.3 percent to Rs 60.93 billion.
Similarly, total income earned by service sector rose to Rs 8.1 billion with Nepal Airlines Corporation becoming the biggest earner. Total net profit earned by service sector PEs stood at Rs 360 million during the year -- a significant improvement compared to the loss of Rs 593 million during previous year.
Social sector which includes five PEs saw its operating income decline by 13. 8 percent to Rs 1.28 billion leading to a loss of Rs 152.2 million, down from Rs 283.2 billion a year earlier.
Similarly public utility, under which fall three PEs, also earned total operating income of Rs 20.3 percent to Rs 42.48 billion during the review year 2009/10.
The survey has indicated that the government´s is lacking effective monitoring of the conditions of the PEs after their privatization.
"Some of the PEs have been closed after the privatization. Even those operating have been witnessing decline in investment, production and productivity leading to cut in employment," the report added.
Source: Republica
