NAC, DDC And NOC Among 15 Public Companies That Are Losing Money

Fifteen public enterprises including the Nepal Airlines Corporation (NAC) have been operating at a loss for a couple of years or more. This has been stated in an annual review report of the status of public enterprises presented in the parliament on Sunday.

The review report shows that of 44 public enterprises that were in existence till the fiscal year 2079-80 BS (2022-23), 26 were at a profit, 15 were at a loss, and the business transactions of three organizations were nil.

According to the report, in the fiscal year 2079-80 BS (2022-23), the NAC incurred the highest loss among all public enterprises, and this trend was followed by Nepal Water Supply Corporation, Daily Development Corporation (DDC), Udaypur Cement Industry Ltd, and the Nepal Television.

During the last fiscal year, NAC's net loss amounted to over Rs 650 million while the accumulated loss of the corporation exceeded Rs 16 billion. The NAC has been continuously operating at a loss since the fiscal year 2076/77 (2019-20).

"Although the net loss of NAC last fiscal year reduced compared to the fiscal year 2078/79 (2021-22), the financial status of the organization is not satisfactory," the report states.

Challenges in the payment of loans and interests, high administrative expenditures, low business, delayed flights, and the lack of the effective implementation of a corporate plan are cited as reasons behind the NAC facing continued loss.

Nepal Water Supply Corporation and Nepal Television have been at a net loss since the fiscal year 2075-76 BS while the Udaypur Cement Industry continues to report a loss since the fiscal year 2076-77 BS (2019-20) and DCC since the fiscal year 2077-78 BS (2020-21).

Last year, the Water Supply Corporation incurred a net loss of over Rs 546 million, and the accumulated loss amounted to Rs three billion 30 million.

The net loss reported by DDC is over Rs 484 million while the accumulated loss is Rs one billion 850 million Udaypur cement incurred a loss of over Rs 362 billion and the accumulated loss amounted to Rs five billion Rs 788 million.

Hetauda Cement incurred a loss of Rs 254 million and the accumulated loss amounted to Rs one billion 158 million while Nepal Aushadhi (Drugs) Limited suffered a loss of Rs 155 million and the company's accumulated loss amounted to Rs two billion 135 million.

Nepal Orind Magnesite Pvt reported a net loss of Rs 165 million and the accumulated loss was Rs five billion 37 million. Similarly, Butwal Spinning Mill had a net loss of 34.03 million, with an accumulated loss of Rs two billion 1.2 million.

When Food Management and Trading Company Limited earned a net profit of Rs 129. 02 million in the given time, its accumulated loss so far has amounted to Rs 782.02 million.

Although Nepal Oil Corporation Limited is one of the institutions reporting the highest net profits, it still incurs an accumulated loss of Rs four billion 850 million.

When Nepal Ban Nigam Limited incurred a net loss of Rs 74.03 million, it presented the accumulated profits of Rs 70 million.

The National Productivity and Economic Development Center Limited incurred a net loss of Rs 4.33 million while the accumulated loss was worth Rs 112.09 million. Nepal Railway Company Limited presented a net loss of Rs 199.06 million, with an accumulated loss of Rs 559.06 million, while the Cultural Corporation incurred a net loss of Rs 14.08 million with an accumulated loss of Rs 284.02 million.

Although Janak Education Materials Center Limited made a net profit of Rs 193.06 million last fiscal year, it still had an accumulated loss of Rs one billion 198.07 million. Nepal Television had incurred a net loss of Rs 351.02 million with an accumulated loss of Rs two billion 408 million.

National Housing Company Limited was operating with a net loss of Rs 10.04 million and an accumulated loss of Rs 118.05 million last fiscal year.