Net worth

7 SPSE in red, Gridco has highest negative net worth of Rs 4,135 crore – The New Indian Express

Express press service

BHUBANESWAR: Even though profits earned by 24 State Public Sector Enterprises (SPSEs) rose to Rs 1,686.08 crore in 2019-20 from Rs 1,174.30 crore by 22 state-owned enterprises in 2018-19, seven’s net worth has been completely eroded. The negative net worth of Grid Corporation of Odisha Limited (Gridco), the state’s wholesale electricity supplier, is the largest. With a negative net worth of Rs 4134.8 crore, the company suffered a loss of Rs 281 crore in 2019-20.

The state government paid capital of Rs 576.71 crore to Gridco and the closing balance of the guarantee at the end of 2019-20 was Rs 4,913.5 crore. -19 to Rs 4,913.50 crore in 2019-20 as Gridco applied for additional guarantee commitment to avail loans from banks/financial institutions,” said the performance audit report for the year ending in March 2020.

The report further states that Gridco failed to pay guarantee fee of Rs 32.16 crore to the government in 2019-20. Of the 33 SPSEs audited, 11 had accumulated losses of Rs 5,778.34 crore. Of the 11 companies, six incurred losses amounting to Rs 296.09 crore in 2019-20. Although five did not suffer losses in the same financial year, they had accumulated a loss of Rs 785.45 crore.

“The net worth of seven out of 11 SPSEs had been completely eroded by accumulated losses and their net worth was negative. The negative net worth of these seven SPSEs was Rs 4,301.47 crore against a total equity investment of Rs 1,216.11 crore as of March 31, 2020,” the audit states.

While the seven companies reported a total loss of Rs 304.52 crore, a loss of Rs 281.05 crore was contributed by Gridco alone. The net worth of Odisha State Road Transport Corporation (OSRTC) and Water Corporation of Odisha Limited was less than half of their paid-up capital during the same period, indicating their potential financial illness.

The aggregate net worth of all 33 enterprises and state-owned companies under audit was Rs 9,621.32 crore against their total paid up capital of Rs 5,519.79 crore. The outstanding long-term loan of 10 SPSE was Rs 13,182.57 crore from all sources, of which the state government loan was Rs 1,277.29 crore.

BHUBANESWAR: Even though profits earned by 24 State Public Sector Enterprises (SPSEs) rose to Rs 1,686.08 crore in 2019-20 from Rs 1,174.30 crore by 22 state-owned enterprises in 2018-19, seven’s net worth has been completely eroded. The negative net worth of Grid Corporation of Odisha Limited (Gridco), the state’s wholesale electricity supplier, is the largest. With a negative net worth of Rs 4134.8 crore, the company suffered a loss of Rs 281 crore in 2019-20. The state government paid capital of Rs 576.71 crore to Gridco and the closing balance of the guarantee at the end of 2019-20 was Rs 4,913.5 crore. -19 to Rs 4,913.50 crore in 2019-20 as Gridco applied for additional guarantee commitment to avail loans from banks/financial institutions,” said the performance audit report for the year ending in March 2020. The report further states that Gridco did not pay any guarantee commission. of Rs 32.16 crore to the government in 2019-20. Of the 33 SPSEs audited, 11 had accumulated losses of Rs 5,778.34 crore. Of the 11 companies, six suffered losses amounting to Rs 296.09 crore in 2019-20. Although five did not suffer losses in the same financial year, they had accumulated a loss of Rs 785.45 crore. “The net worth of seven out of 11 SPSEs had been completely eroded by accumulated losses and their net worth was negative. The negative net worth of these seven SPSEs was Rs 4,301.47 crore against a total equity investment of Rs 1,216.11 crore as of March 31, 2020,” the audit states. While the seven companies reported a total loss of Rs 304.52 crore, a loss of Rs 281.05 crore was contributed by Gridco alone. The net worth of Odisha State Road Transport Corporation (OSRTC) and Water Corporation of Odisha Limited was less than half of their paid-up capital during the same period, indicating their potential financial illness. The aggregate net worth of all 33 enterprises and state-owned companies under audit was Rs 9,621.32 crore against their total paid up capital of Rs 5,519.79 crore. The outstanding long-term loan of 10 SPSE was Rs 13,182.57 crore from all sources, of which the state government loan was Rs 1,277.29 crore.