´The Review on Financial Position of PEs 2010´ released by the Ministry of Finance (MoF) on Sunday shows that 18 of the 36 PEs earned profit in 2008/09, pushing up the total profit volume to Rs 10.55 billion. Only 17 of the 36 PEs had made profit in 2007/08 when PEs had earned a total profit of Rs 4.94 billion. [break]
The PEs earning remarkable profit during the review period are -- Nepal Telecom (NT) and Nepal Oil Corporation (NOC) with profits of Rs 10.18 billion and Rs 3.31 billion respectively.
Similarly, Rastriya Banijya Bank (Rs 2.06 billion) and Agricultural Development Bank (Rs 1.05 billion) were the third and fourth largest PEs respectively in terms of profit earning.
The review also shows that net fixed asset of total government undertakings have increased to Rs 133.74 billion at the end of the review year, up from Rs 124.89 billion recorded a year earlier.
However, some PEs saw their total fixed capital decline in 2008/09. Nepal Ausadhi Ltd, Nepal Orient Magnesite, Herb Production and Processing Company Ltd, Hetauda Cement Industry and Udaypur Cement saw their total fixed capital go down during the review period.
Fixed capital of Nepal Electricity Authority (NEA) and Nepal Telecom, however, increased by Rs 6.94 billion and Rs 1.86 billion respectively, pushing up the aggregate fixed capital of the total PEs.
Total shareholders´ fund in PEs increased to Rs 61.10 billion in 2008/09, up from Rs 48.11 billion recorded in 2007/08. “The substantial rise in the shareholder´s fund indicates the improvement in the reserve fund of state-owned entities,” the review stated.
Total government investment in PEs has increased to Rs 86.13 billion as of 2008/09, up from Rs 81.92 billion recorded a year earlier. Total capital erosion in PEs has been reported at 30 percent in proportion to the government investment in the state-owned enterprises.
Total loan disbursement by the government in state-owned enterprises has dropped to Rs 79.4 billion from Rs 83.52 billion. The loan includes short term and long term loan issued by the government and international agencies as well as banks and financial institutions.
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