72 govt cos accumulated losses of Rs 94,428 cr by FY'08-end

Equity investment in 72 state-run entities has been completely eroded as they accumulated losses of Rs 94,428 crore by the end of 2007-08, more than five times their paid up capital, the Comptroller and Auditor General of India said in a report.

Equity investment in 72 state-run entities has been completely eroded as they accumulated losses of Rs 94,428 crore by the end of 2007-08, more than five times their paid up capital, the Comptroller and Auditor General of India said in a report.

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The report, tabled in Parliament on Thursday, said that as on March 2008 "the accumulated losses in these 72 companies were Rs 94,428 crore against equity investment of Rs 15,762 crore as on March 2008, making their combined net worth negative at Rs 78,665 crore".

This included six listed companies, whose accumulated losses were Rs 11,349 crore against equity investment of Rs 1,451 crore, making their combined net worth negative at Rs 9,898 crore, the report said.

During 2007-08, the total outstanding government loans in 46 firms, out of those 72, amounted to Rs 49,926 crore, it added.

The principal amount of government loans remaining unpaid on the due dates amounted to Rs 11,973 crore, it said.
As the capital of 46 companies was fully eroded, the recovery loans amounting to Rs 49,926 crore became doubtful.

Besides, it said that recovery of loans of Rs 2,755 crore given by government companies to their 14 subsidiaries (included in the 72 companies the equity capital of which had fully eroded) has also became doubtful, the report added.