Why some of organisation run by the Indian goverment are in gain and some in loss?
- sarayuLv 71 decade agoFavorite Answer
Profit or loss of an organisation is dependent on the break even point. THe investments by the Govt. of India were all on large projects with long term benefits to the country. Certain basic and infrastructural facilities were lacking and after Independence these were given importance like giant hydro-electric projects, steel making, heavy electricals etc., Naturally their break even points could be crossed only after 30 years of production. Transfer of technology in these areas were also slow affecting the final result. Some have overcome the initial difficulties and started making profits. You would have heard of 'Navarathnas' of Government owned companies. The day is not far off, for these to figure in list of fortune 500
companies of the world.
- 1 decade ago
There are three aspects of financial performance namely :
c) break even (no profit no loss).
Whatever be the organization, whosoever may be owner, the financial result has to be one of the three above. Thus some will show profit, some loss and a few will have zero result with no profit no loss.Source(s): simple logic
- NA ALv 51 decade ago
Because not everyone can be in the "gain."
- Anonymous1 decade ago
coz of the slow system no doubt...