P.K. Jain, Seema Gupta, Surendra S. Yadav - Public Sector Enterprises in India: The Impact of Disinvestment & Self Obligation on Financial Performance
Published: 2014-06-06 | ISBN: 8132217616 | PDF | 365 pages | 6 MB
The book examines the various aspects of non-financial central public sector enterprises (PSEs) in India, for a period from 1986-87 to 2010-11. The analysis is based on all the key financial ratios; namely, profitability, efficiency, liquidity, leverage & productivity.
Liberalization & globalization have caused competition in India & have lowered the profit margins. At the same time, Indian government has reduced subsidies & budgetary support for PSEs to curtail their own fiscal deficit. Strategic & economic reforms were also introduced in PSEs to make their operations commercially profitable so that they are not dependent on the government to meet their financial requirements on the one h&, & have their own earnings to finance their expansion/modernization requirements as well as their social obligations, on the other. To what extent, the PSEs have succeeded in this objective constitutes one major aspect of the present research work. The other equally important aspect examined is financial performance of the PSEs which have opted for disinvestment & have signed memor&um of underst&ing (MoU)/ self obligations. The Indian Government has desired the central PSEs to be profitable in their operations in post-liberation era of 1990s. For this purpose, two major instruments, namely, disinvestment & MoUs, were introduced. This book examines, in detail, financial performance of PSEs which had opted for disinvestment & have signed MoU. Based on analysis/ findings & literature on the subject, the book contains some concrete suggestions that would prove extremely helpful to Indian Government to further improve their financial performance.