Public Sector Companies and Value Creation (Erosion)

This is from the ICAI journal- The Chartered Accountant, (Dec -09 issue) "According to the latest report of C&AG of India for the year 2009-10, 103 government companies and corporations (including 11 listed companies) had accumulated losses of Rs. 96,992.49 crore. Equity capital of 72 government companies (out of 103) had been completely eroded. The accumulated losses in these 72 companies were Rs.94,428.27 crore against equity investment of Rs. 15,762.83 crore, making their combined net worth negative at Rs. 78,665.44 crore. At the state level, the position is even more alarming. Most of these had not prepared their financial statements for more than 10 years."

Available at - http://www.ejournal.icai.org/CA/CA/2009/12/01/index.shtml