Why some of organisation run by the Indian goverment are in gain and some in loss?

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  • sarayu
    Lv 7
    1 decade ago
    Favorite 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.

    VR

  • 1 decade ago

    There are three aspects of financial performance namely :

    a) Profit

    b) Loss

    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 A
    Lv 5
    1 decade ago

    Because not everyone can be in the "gain."

  • Anonymous
    1 decade ago

    coz of the slow system no doubt...

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