ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Rajasthan s Minerals-Exploited with Strategy

sometimes with justification, of financial manipulation and window-dressing to mislead shareholders. The annual report of the Bureau of Public Enterprises on the performance of Central Government undertakings for 1969-70 shows that in this respect at least the public sector is fast catching up. The official summary of the Report says: "The profit made by the 81 [Central Government] undertakings amounted to Rs 139 crores only, which gives an overall return of 4.2 per cent on the capital employed. .. After taking into account interest charges amounting to Rs 124 crores and provision for taxation Rs 18 crores in respect of undertakings which made profit, the profit is turned into a net loss of Rs 3.40 crores" (italics added). Not content with this blatant misuse of accounting terminology and application of tax paid by profit-making companies to loss-making companies, the Bureau winds up the press note with a public relations soft-sell: "In order to appreciate the performance of these undertakings in the proper perspective, it may be mentioned that these results have been arrived at after allowing the township administration and maintenance costs and other social overheads which amount to about Rs 29 crores." It is not Central Government undertakings which alone provide housing to their staff. The Bureau's own reports show that in the case of Hindustan Steel or the Heavy Engineering Corporation for instance, the cost of townships and overheads is far lower than the losses. Moreover, if public sector units are to be given credit for their expenditure on these overheads, they should also be debited for obtaining subsidised loans at 5% to 6% per cent against the 8 to 10 per cent charged to private sector units.

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