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    Question

    Which of the following sets of financial criteria must a

    Navratna company meet over the last three years to be eligible for the grant of Maharatna status?
    A Average annual net profit of more than ₹2,500 crore; Average annual net worth of more than ₹10,000 crore; Average annual turnover of more than ₹20,000 crore. Correct Answer Incorrect Answer
    B Average annual net profit of more than ₹5,000 crore; Average annual net worth of more than ₹15,000 crore; Average annual turnover of more than ₹25,000 crore. Correct Answer Incorrect Answer
    C Average annual net profit of more than ₹2,500 crore; Average annual net worth of more than ₹15,000 crore; Average annual turnover of more than ₹25,000 crore. Correct Answer Incorrect Answer
    D Average annual net profit of more than ₹5,000 crore; Average annual net worth of more than ₹10,000 crore; Average annual turnover of more than ₹20,000 crore. Correct Answer Incorrect Answer

    Solution

    To be eligible for Maharatna status, a company does not simply "open" as one; it must be an existing Central Public Sector Enterprise (CPSE) that climbs the regulatory ladder. The Department of Public Enterprises lays out specific quantitative and qualitative benchmarks. Note: Option C correctly identifies these specific thresholds.   Other Essential Criteria Financials alone aren't enough. The company must also meet these institutional requirements:

    • Existing Status: It must already hold Navratna status.
    • Stock Exchange Listing: It must be listed on the Indian stock exchange with the prescribed public shareholding under SEBI regulations.
    • Global Presence: It should have a significant global presence or international operations.
    Why does Maharatna status matter? Once a company is designated as a Maharatna, its Board gains enhanced financial autonomy. For instance, they can invest up to ₹5,000 crore in a single project (or 15% of their net worth) without needing prior government approval. This allows large-scale PSUs like ONGC, NTPC, or Indian Oil to compete more effectively on a global stage.

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