4 turnaround PSUs report profits for 3 yrs in a row

Four state-owned firms including Bharat Coaking Coal and NFDC that turned-around following the revival packages for sick companies have shown profits for three years in a row, the Board for Reconstruction of Public Sector Enterprises said today.

"Four CPSEs - Bharat Coking Coal, National Film Development Corporation, National Project Construction Corporation and SAIL Refractory Unit - have made profits consecutively for three years till 2012-13," BRPSE Chairman Nitish Sengupta said at an event here.

Besides, their networth has become positive after receiving financial assistance from the government on the Board's recommendation, he added.

These companies were awarded for making profits during the last three years.

"Our emphasis has been more on empowerment rather than on mere cash infusion," Sengupta said, adding that the Board will recommend all necessary assistance to ailing PSUs in its endeavour to turnaround.

Bharat Coking Coal Ltd, a subsidiary of Coal India Ltd, clocked net profit of Rs 1,093 crore in 2010-11, followed by Rs 822 crore in 2011-12 and Rs 1,498 crore in 2012-13.

The government had infused cash worth over Rs 4,300 crore to revive the sick company which includes both cash and non-cash assistance in 2008.

Similarly, the government injected cash of Rs 3 crore in NFDC, besides conversion of outstanding working capital loan of Rs 19.77 crore and accumulated interest there on of Rs 8.63 crore into equity.

The company, engaged in production, distribution and promotion of Indian cinema at various film festivals, had registered a net loss of Rs 7.13 crore in 2009-10 turned to net profit of Rs 6.34 crore in 2012-13.

As for the National Projects Construction Corporation, the government approved the revival plan envisaging the conversion of government's principal amount of Rs 219 crore and the cumulative interest due and accrued to it, Rs 427 crore to equity capital and further written down to 10 per cent of value. But no cash infusion was made.

The company registered a net profit of Rs 72 crore in 2010-11, followed by Rs 42.18 crore in 2011-12 and Rs 50.97 crore in 2012-13.

In case of SAIL Refractory Unit, government approved the merger along with a revival package of envisaging waiver of government loans and interest of Rs 216 crore; conversion of loan of Rs 16.50 crore into equity; redeeming preference share capital of Rs 12.05 crore from fresh equity infusion, and setting off accumulated loss of Rs 226 crore against equity.

Envisaging total assistance of Rs 39,200 crore, the BRPSE has till date considered 68 cases and recommended revival of 58 CPSEs and closure of 6 CPSEs.

The government has approved revival of 44 CPSEs and closure of 3 such units envisaging total assistance of Rs 28,354 crore and benefiting 2.16 lakh employees.

The Board has declared 19 sick Central Public Sector Enterprises (CPSEs) as having turnaround after they received the revival package from the government.

The BRPSE, which was set up in 2004, is an advisory body to the government on revival and restructuring of sick PSUs.