bmtc

BANGALORE METROPOLIAN TRANSPORT CORPRATION

Central Office Shanthinagar, Bangalore-560 027.

PART –A

Introduction to industry

1.1 Industry:

Industry refers to the production of an economic good or service within an economy.

Industry in simple is any activity by which you either create materials, alter materials to create

something else, or move materials around. Also, anything involving the usage of Blueprints in

any way is defined as an Industrial activity. Key activities defined as Industrial are: Mining,

Refining, Planetary Interaction, Hauling, Research and Development, and Manufacturing. Each

of these activities is complicated in and of itself, and contain their own sub-activates. I will

now give a brief overview of each of these activities, including a touch on some of the sub-

Activates that they have, as well as recommended uni-held classes that will give you more

information on topic.

1.2 Classification / Types of Industries:

There are various types of industries. These are mentioned as follows:-

1. Primary Industry

Community Institute Of Commerce and Management Studies. Page 2

http://en.wikipedia.org/wiki/Economy

http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Economic_good

http://en.wikipedia.org/wiki/Production_(economics)

2. Genetic Industry

3. Extractive Industry

4. Manufacturing Industry

5. Construction Industry

6. Service Industry etc…

1.3 SERVICE INDUSTRY:

The Service industries (More formally termed: 'tertiary sector of industry' by economists)

involve the provision of services to businesses as well as final consumers. Such, therefore,

include accounting, tradesman ship (like mechanic or plumber services), computer services,

restaurants, tourism, etc.

Service industries include everything else: banking, insurance, transportation,

communications, wholesale and retail trade, all professional services such as engineering and

medicine, all consumer services, and all government services.

1.4 Transportation Industry:

Transport Industry is one of the components of service industry. Transport or transportation

is the movement of people, cattle, animals and goods from one location to another through

various modes. Modes of transport include air, rail, road, water, cable, pipeline, and space. The

field can be divided into infrastructure, vehicles, and operations. Transport is important since it

enables trade between peoples, which in turn establishes civilizations.


http://en.wikipedia.org/wiki/Business_operations

http://en.wikipedia.org/wiki/Vehicle

http://en.wikipedia.org/wiki/Infrastructure

http://en.wikipedia.org/wiki/Space_transport

http://en.wikipedia.org/wiki/Pipeline_transport

http://en.wikipedia.org/wiki/Cable_transport

http://en.wikipedia.org/wiki/Ship_transport

http://en.wikipedia.org/wiki/Road_transport

http://en.wikipedia.org/wiki/Rail_transport

http://en.wikipedia.org/wiki/Aviation

http://en.wikipedia.org/wiki/Modes_of_transport

http://en.wikipedia.org/wiki/Cargo

http://en.wikipedia.org/wiki/Economist

http://en.wikipedia.org/wiki/Tertiary_sector_of_industry

1.5 Modes \ Means of Transport:

A mode of transport is a solution that makes use of a particular type of vehicle, infrastructure

and operation. They are:

1. Human and Animal-powered transport

2. Air transport.

3. Rail transport.

4. Water transport.

5. Road transport.


1.6 Road Transport:

Road transport is dominated by the automobiles. Motor cars and Motor coaches (Buses) is the

perfect means for providing door-to-door tourism service, providing views of the landscape

and a means of transporting recreational equipment

Development of automobiles allowed the freedom to travel. The provision of the good motor

roads and road services were important factors in the development of both domestic and

international tourism. Improvements in road transport facilities stimulated tourism in many

countries, especially European countries. Great progress has been made in many countries,

particularly USA by building highways, expressways and super highways.


1.7 : Road transport has a number of attractions for People

(1) To control of the route and the stops en route.

(2) The ability of carrying baggage’s and equipment easily.

(3) The ability to use the vehicle for accommodation.

(4) Privacy, and

(5) Low expenses.

1.8 Types Of road transport:

1. Traditional Means

Bullock carts and horse carriages.

Bicycles.

Trams.

2. Public transport

Taxi.

Auto Rickshaws.

Two-wheelers.

Busses.


1.9 BUSES:

Bus (as a public transport) in 1940 B.M.T.C Bus in 2011

A bus is a road vehicle designed to carry passengers. Buses can have a capacity as high as 300

passengers. The most common type of bus is the single-decker bus, with larger loads carried by

double-decker buses and articulated buses, and smaller loads carried by midi buses and

minibuses; coaches are used for longer distance services. Bus manufacturing is increasingly

globalised, with the same design appearing around the world. Buses may be used for scheduled

bus transport, scheduled coach transport, school transport, private hire, tourism; promotional

buses may be used for political campaigns and others are privately operated for a wide range of

purposes.


http://en.wikipedia.org/wiki/Political_campaign

http://en.wikipedia.org/wiki/Tour_bus

http://en.wikipedia.org/wiki/School_transport

http://en.wikipedia.org/wiki/Coach_(scheduled_transport)

http://en.wikipedia.org/wiki/Public_transport_bus_service

http://en.wikipedia.org/wiki/Public_transport_bus_service

http://en.wikipedia.org/wiki/Globalisation

http://en.wikipedia.org/wiki/Bus_manufacturing

http://en.wikipedia.org/wiki/Coach_(vehicle)

http://en.wikipedia.org/wiki/Minibus

http://en.wikipedia.org/wiki/Midibus

http://en.wikipedia.org/wiki/Articulated_bus

http://en.wikipedia.org/wiki/Double-decker_bus

http://en.wikipedia.org/wiki/Single-decker_bus

http://en.wikipedia.org/wiki/Passenger

http://en.wikipedia.org/wiki/Road_vehicle

1.10 Types of busses:

1. Electric bus.

2. Deluxe bus.

3. Mini bus.

4. L.H.D bus

5. Tourist bus.

PART –B

Introduction about subject

1.12 Comparative Financial statements.

Financial statements from different quarters or years that are set side-by-side to gauge how a

company has performed over time. This is useful when determining whether a company’s

earnings, revenue, or other items are considered "good." It also helps in predicting future


http://wiki.fool.com/Financial_statements

http://financial-dictionary.thefreedictionary.com/Revenue

http://financial-dictionary.thefreedictionary.com/Years

http://financial-dictionary.thefreedictionary.com/Quarters

http://financial-dictionary.thefreedictionary.com/Financial+Statements

performance.

1.13 Balance sheet:

The balance sheet is a financial statement. This shows the financial position of a company as of

the date issued. It includes the lists of company's assets (e.g . cash, inventory, etc.) and its

liabilities (e.g. debt, accounts payable, etc.) and shareholders' equity. Unlike the other financial

statements, it is accurate only at one moment in time, not a period of time.

1.14 Comparative Balance sheet:

A comparative balance sheet will include several different types of accounting data. First there

will be the income received and money spent. There will also be a list of credits

and debits to the company. A list of assets and liabilities is also included. All of these factors are

necessary to see what the total worth of the company is through the balance sheet. The

comparative balance sheet allows the company or business to see at a glance how its profits differ

from one year to another. These comparative balance sheets are aligned so that business people

can see at a glance the financial differences from year to year.


http://wiki.fool.com/Liabilities

http://wiki.fool.com/Assets

2.1 TITLE OF THE STUDY

COMPARATIVE STUDYOF BANGALORE METROPOLIAN TRANSPORT

CORPORATION FINANCIAL STATEMENT.

2.2 Research Design:

The study has been done through analytical type of research. In view of the

objective of the study listed above, i have tried to interpret already available











Blue and White: The old buses with ordinary fares. Buses introduced after 2001

have pneumatic doors. Parisara Vahini ordinary buses also sport the same color

and were introduced between 2002 and 2008 with pneumatic doors. Parisara

Vahini buses introduced from 2007 onwards have head rest seats.

Suvarna:


Silver colored with red lining. Earlier they had Re.1 higher fare than ordinary. Since the revision

of fares in June 2010, Suvarna and Ordinary bus tickets cost the same. Many Suvarna buses are

now being re-painted into the white and blue color similar to Parisara Vahini buses. Most

Suvarna buses have LED boards.

BIG 10:


BIG10 services deploy (Suvarna class of) buses branded in green and bottle green on 12 major

corridors coming in from surrounding sub-urbs in the city - Hosur road, Bannerghatta road,

Sarjpura road, Kanakapura road, Mysore road etc. These buses are run on a direction based

concept where the commuter takes the next (high frequency, every 15 minutes) bus in his/her

direction of travel, and if need be, makes a changeover to another bus to reach the destination.

The service terminates on different points on the radius of the city core, to avoid congesting the

city centre. These buses are numbered with a G prefix.

Pushpak:


Pushpak Launched in the late 90's. Single door bus with/without conductors. Driver acts as

conductor when there is no conductor (Janapriya Vahini). These are coffee colored buses with

fares similar to Suvarna. Generally provided on contract to IT companies and schools.


Vajra:

Vajra: Hi-tech buses from Volvo running on routes serving the IT companies' locations and

various residential routes as well. Higher fares about 1.5 to 3 times that of ordinary depending on

the route. LED boards.

Vayu Vajra: Volvo buses to airport operated from 12 routes. Free Wi-Fi access is provided to

the commuters in these buses.


Atal Sarige:

Low-cost buses with single seats along the windows and LED display. Have a tri-colour outside.

On 1 June 2009, to celebrate their first anniversary, the Karnataka and the Bangalore

Metropolitan Transport Corporation sold off a pro-poor bus service called the Atal Sarige.

The service aims at providing low-cost connectivity for the economically backward sections of

the society to the nearest major bus station.


Marco polo AC:

Buses from Tata-Marco polo collaboration introduced under the JnNURM scheme. Their fare is

costlier by Rs. 2 as compared to ordinary buses. Usually ply on routes where Volvo is not

popular.



3.7 Major Bus Stations:

1. Kempegowda Bus Station : This is right opposite the city railway station. Bus services are

available to the entire city from here. A depot is present here within the station.

2. K. R. Market : Another important bus station located in an area with many private bus

services. Buses are available to all parts of Bengaluru besides far off Anekal and Hosur.

3. Shivajinagar : Located in one of Bangalore’s commercial areas and about 2 km from

Bangalore Cantonment Railway Station.

4. Shantinagar: Near the Central office of KSRTC and BMTC. BMTC Depot 2 and Depot 3 are

located here. It is well connected to South and South East Bangalore and the Majestic and

Shivajinagar areas.

5. MCTC : Located on Mysore road. Well connected to Mysore road, Vijayanagar and

Chamrajpet apart from Market and Majestic.

6. Banashankari Bus Station: This is another important bus station located on Kanakapura

Road, close to the Outer Ring Road. It is well connected to all the areas on the inner and outer

ring road. 201, 205, 500, 600 are the important routes which start/pass through Banashankari.

From market, all buses between 211 and 217B pass through Banashankari. The TTMC was

inaugurated on 4 December 2011.


http://en.wikipedia.org/wiki/Banashankari

http://en.wikipedia.org/wiki/Mysore_Road_Satellite_Bus_Station

http://en.wikipedia.org/wiki/Shivajinagar,_Bangalore

http://en.wikipedia.org/wiki/K.R_Market

http://en.wikipedia.org/wiki/Kempegowda_Bus_Station

3.8 Records:

BMTC was the first in the country to introduce intra-city Volvo buses. Earlier, they were well

received on the IT sector routes but are now patronized on all routes in the city.

It has the record for making profits consistently for years.

It has the youngest fleet of buses in the country due to which the KMPL is also higher

compared to other undertakings.

BMTC is one of the few undertakings to introduce pneumatic doors in India even in its fleet

of ordinary buses to provide safety for passengers. Currently, buses in Chennai and

Hyderabad also have adopted this system.

Operates the longest city bus route in India: Route no. 600 (circular bus route) which starts

from Banashankari and covers 117 kilometres (73 mi) round trip to reach Banashankari,

covering BTM layout 100 feet road, Hosur Road, NH-207 (Attibelle to Varthur), ITPL, K. R.

Pura,Hebbal, NH-4 (Tumkur Road), SH-17 (Mysore Road), Banashankari Ring Road. It

traverses an entire circle covering these places to reach Banashankari.

BMTC buses crossed nearly 4.5 Million passenger ticket sales everyday, which is a record by

itself.


3.9 GROWTH and PROPSPETS:

An article about EXPANTION PLAN of public transport (B.M.T.C)

published in Times of India daily newspaper.

Dated on: 21\12\2011 (Wednesday)


3.10 VISION:

Vision: To provide world-class transport services to the citizens of Bangalore

Metropolitan Area

The Bangalore Metropolitan Transport Corporation came into existence in 1997 with

the sole aim of providing public transportation to the city and sub-urban areas of

Bangalore. The mission of the organization is to provide safe, reliable, clean and

affordable travel to everyone.

BMTC leads by example in being the only Bus Corporation within the city of

Bangalore to ferry more than 4.2 million commuters. The organization comprises a

fleet of over 6092 buses covering an area encompassed with a radius of 36 kilometers

from the city centre. In a day BMTC operates on 583 city and 1785 sub urban routes,

running 13 lakhs kilometers and making 79445 trips. BMTC has a 32000 strong labour

force to carry out different aspects of BMTC bus operations.

BMTC services the transport needs of the urban and sub-urban population in and

around Bangalore. And, despite the differentiated base of the commuting population,

BMTC reaches far and wide, in every nook and corner of the city making public

transport an attractive travel choice for everyone. BMTC's strong hold in the area of

public transportation in Bangalore is a testimony to its adoption of sound Management,


HR, Quality and Environmental policies.

The corporation also strives to bring about increased passenger comfort by integrating

Intelligent Transport Systems (ITS) and Passenger Information system (PIS) in its

daily operations. This helps to monitor its services better and provide quality services.

Public feedback is also an important input in BMTC operations; a state of the art

control centre is envisioned for the near future which will be a one point contact for

addressing customer queries and feedback.

3.17 SWOT ANALYSYSStrengths:

B.M.T.C IS one of the oldest, strongly, established firm, well versed in providing

Service to the public.

It is certified by Indian government on Services has strengthened B.M.T.C.

It has the most efficient infrastructural facilities-capable of providing

Customized services for its customers.

B.M.T.C has paid great interest to quality from many years which helps

Achieve improved productivity.

Weaknesses:

B.M.T.C does not have an effective advertisement strategy.

As B.M.T.C is a public company, formation of new policies is a

Complicated procedure.

B.M.T.C is a public sector organization and hence profit making is not the

Motive. In such a condition, private sectors make benefit.

Decision-making power doesn’t vests completely in B.M.T.C


Management people but Government interference is to a great extent.

Opportunities:

In the years to come, more recent technologies are expected to show

up and make way for more business opportunities.

More diversification in its service range is another path open for B.M.T.C.

A positive growth in the profits made by B.M.T.C indicates a bright

Future.

Threats:

An imbalance created because of increasing raw materials costs and low

Prices of B.M.T.C services.

In recent competitive world private sectors are also coming in to existence,

there is a competator.

3.11 Composition of the Board of Directors.

The Bangalore Metropolitan Transport Corporation Board is comprised of 11 Directors as on 31.3.2011.

The Hon”ble Transport Minister, for home and Transport is the Chairman of the Board. And remaining is

Directors of the Board are Official Director.


3.12 List Showing the Board of Directors of BMTC as on 31.03.2011

1. Sri R. Ashoka

Chairman. Hon’ble Minister, Home and Transport Minister,

Government of Karnataka,

2. Sri.M.Krishnappa, Vice-ChairmanMLA, Bangalore South

3. Sri. Syed Zameer Pasha, IAS

Official Director

Managing Director, BMTC,

4. Sri.M.K.Shankarlingegowda, IAS

Official DirectorPrincipal Secretary, Transport Department,


5. Sri. Anilkumar Jha, IAS,

Official DirectorSecretary to Government, Finance ( Expenditure),

6. Sri. Gaurav Gupta, IAS

Official Director.Managing Director, KSRTC,

7. Sri. B.G. Nandakumar, IAS,

Official Director.Joint Secretary, Hon’ble Chief Ministers Office,

8. Sri. J. Arun Chakravarthy, I.P.S.,

Official DirectorDirector ( S, V & P), BMTC,

9. Sri. Maaz Ahamed Sharief, KAS (Super Time Scale) Official

Director,Director (P & E) KSRTC,

10. Sri. Shankar Patil, KAS(Sr.Scale)

Official DirectorManaging Director, NEKRTC,

11. Sri. Hemaraju,

Official Director,Managing Director, NWKRTC,


3.13 Organization Structure of Depots:


3.14 Organization Structure of Divisional Office:



BMTC

COMPARATIVE INCOME STATEMENT FOR THE YEAR ENDED 2007-2008

(Rs in thousands)

Particulars Years Changes in (RS)

EXPENDITURETO Operating Expenses A. Traffic (a)Employee cost (b)Other cost (c)Hired vehicles chargesB.Repairs and

Maintains

C. Fuel, oil

D. Taxes on passenger vehicles

E.Welfare expenses

F.Adminstrative Expenses

G.Deprecationof vehicle

Total operating expensesTO operating profit c/d

TOTAL:

2007 2008 Amount %

14082663471

338413

568916

25554259

392654

257912

440707

530808

6495406578953

187131439232215660

757732

2954103

443138

365709

550370

631279

7828535186357

46304835761

(-)122753

188816

399844

50484

107797

109663

100471

1333129(-)392556

32.81030.2(-)36.2

33.1

15.6

12.8

41.7

24.8

18.9

20.5(-)67.8

578953 8014893


To operation loss b/d

Tonon-operating expenses

To profit for the year(c/f`to`net`revenue appropriation a/c)

TOTAL:

INCOME

By Operating Revenue Traffic Revenue Operating Loss c/d

TOTAL:

By Operating Profit b/d

By`Non-operating Revenue

Non-traffic Revenue

Net`Prior`Period Income

TOTAL:

_

137249

2243239

2380488

7074359

_

_

167248

1402265

1569512

8014893

_

_

29999

840974

940534

_

_

21.8

(-)37.4

13.2

_

7074359 8014893

578953

1801535

_

186357

1383155

_

(-)392596

(-)418380

_

(-)67.8

(-)23.2

_

2380488 1569512


BMTC

COMPARATIVE INCOME STATEMENT FOR THE YEAR ENDED 2008-2009 (Rs in thousands)


EXPENDITURETOÒperating

Expenses A. Traffic (a)Employee cost (b)Other cost (c)Hired vehicles chargesB.Repairsànd maintains

C. Fuel, oil

D.Taxesòn passenger vehicles

E.Welfare expenses

F.Adminstrative Expenses

G.Deprecationòf vehicle

Totalòperating expensesTOòperating`profit c/d

TOTAL:

2008 2009 Amount %

187131439232215660

757732

2954103

443138

365709

550370

631279

7828535

186357

222062111146103631

963729

3657522

502772

371444

543535

923803

9298203

0

349307(-)28086(-)112029

205997

703419

59634

5735

(-)6835

292524

1469668

(-)186357

18.6(-)71.5(-)51.9

7.1

23.8

13.4

1.5

1.2

46.3

18.7

(-)100

8014893 929803


To operation loss b/d

To`non-operating expenses


TOTAL:

INCOMEBy Operating

RevenueTraffic Revenue Operating Loss c/d

TOTAL:

By Operating Profit b/d

By ̀ Non-operating Revenue

Non-traffic Revenue


TOTAL:

_

167248

1402265

1569512

8014893

_

223216

156288

551778

931282

9074987

223216

223216

(-)10960

(-)850487

106094

223216

100

(-)6.5

(-)60.6

13.2

100

8014893 9298203

186357

1383155

_

0

931282

_

(-)186357

(-)451873

_

(-)100

(-)32.6

_

1569512 931282


BMTC

COMPARATIVE INCOME STATEMENT FOR THE YEAR 2008-09

(Rs in thousands)


EXPENDITURETO Operating ExpensesA. Traffic (a)Employee cost (b)Other cost (c)Hired vehicles chargesB.Repairsànd maintains

C. Fuel, oil

D.Taxesòn passenger vehicles

E.Welfare expenses

F.Adminstrative ExpensesG.Deprecationòf vehicle

Totalòperating expenses

operating profit c/d

TOTAL:

2008 2009 Amount %

222062111146103631

963729

3657522

502772

371444

543535

923803

9298203

0

29963796600365758

865410

4173587

562384

574456

203883

971661

10479521

0

77575854857

(-)37873

(-)98319

516065

59612

203012

(-)339652

47858

1181318

0

34.983.1

(-)36.5

(-)10.2

14.1

11.8

54.6

(-)62.4

5.1

12.7

0

9298203 10479521


To operation loss b/dTo`non-operating expenses


TOTAL:

INCOMEByÒperating RevenueTraffic Revenue Operating Loss c/d

TOTAL:

By Operating Profit b/dBy ̀ Non-operating RevenueNon-traffic Revenue


TOTAL:

223216

156288

551778

931282

9074987

223216

356612

172483

651262

1180357

10122909

356612

133396

16195

99484

1047922

133396

59.7

10.3

18.0

11.5

59.7

9298203 10479521

0

931282

0

0

1173251

7106

0

241969

7106

0

25.9

100

1569512 931282


BMTC

COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED 2007-2008

(Rs in thousands)


LABILITIES

1. Sources of fund Equity share capital

State Govt Central Govt

2. Capital contribution

3.Internal resources

4.Loans Secured Unsecured

5.Reserves and Funds

6.Labilities

7.Net profit

TOTAL:

2007 2008 Amount %

10459480

535672

0

2264920

3018091

613690

4601207

10459480

689388

0

1445240

3648467

735082

5600152

00

153716

0

(-)819680

630376

121392

998945

00

28.6

0

(-)36.10

20.8

19.7

21.7

10041100 11863561



ASSETS

1. Fixed Assets

2. Other`fixed assets

3. Investments

4. Current assets

5. Deffered revenue expenses

6. Net loss

TOTAL:

2007 2008 Amount %

5824269

915650

1940200

1357224

3757

0

6999327

1610652

1940200

1281455

1356

0

1175058

695002

0

(-)75769

(-)2401

0

20.1

75.9

0

(-)5.58

(-)63.9

0

1004110 11863561


BMTC


(Rs in thousands)


LABILITIES




3. Internal resources

4. Loans Secured

Unsecured

5. Reserves and Funds

6. Labilities

7. Net profit

TOTAL:

2008 2009 Amount %

10459480

689388

0

1445240

3648467

735082

5600152

10459480

531225

3248455

4965820

1820555

1609435

5875457

00

(-)158163

3248455

3520580

(-)1827912

874353

275305

00

(-)22.9

100

2.40

(-)50.1

118.9

4.9

11863561 14627657



ASSETS

1. Fixed Assets

a. Other fixed assets

2. Investments

3. Current assets

4. Deferred`revenue expenses

5. Net loss

TOTAL:

2008 2009 Amount %

6999327

1610652

1940200

1281455

1356

0

10713963

2432013

200162

1581519

0

0

3714636

821361

(-)1740038

300064

(-)1356

0

53.0

50.9

(-)89.6

23.4

(-)100

0

11863561 14627657


BMTC


(Rs in thousands)


LABILITIES




3. Internal resources

4. Loans Secured Unsecured

5. Reserves and Funds

6. Labilities

7. Net profit

TOTAL:

2009 2010 Amount %

10459480

531225

3248455

4965820

1820555

1609435

5875457

10459480

531225

4223454

27612423015

1788958

243791

6252066

00

0

974999

22646603015

(-)31597

828556

376609

00

0

30.0

456.0100

(-)1.7

51.48

6.4

14627657 19043899



ASSETS

1. Fixed Assets

a. Other`fixed assets

2. Investments

3. Current assets

4. Deferred revenue expenses

5. Net loss

TOTAL:

2009 2010 Amount %

10713963

2432013

200162

1581519

0

0

13056602

4518126

142010

136682

482

0

2342639

2086113

(-)58152

(-)254837

482

0

21.8

85.7

(-)5.9

(-)29.0

100

0

11863561 19043899

TABLE: 4.1

TABLE SHOWING EMPLOYEE COST

Years Amount (in %)2008 32.8%


EmployeeCost

2009 18.6%

2010 34.9%

2008 2009 20100.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. The graph given above reveals that

there has been increase in cost by 32.8%, in 2008 and in 2009 it was increased by Rs 349307

i.e., 18.6%. Also in 2010 it has increased by 34.9%.

This fact shows that expenses on employee cost are increasing every year.

TABLE: 4.2

TABLE SHOWING OTHER COSTS


OtherCosts


2009 (-)71.5%

2010 83.1%

20082009

2010

0.00%

200.00%

400.00%

600.00%

800.00%

1000.00%

1200.00%

INTERPRETATION:

When comparison made between the year 2007 and 2008 it was found that, there was huge

increase in other cost, i.e., 1030.2%. In 2009 it was decreased nearly by -71.5%, and in 2010,

83.1% of cost was increased.

This fact shows that expenses on other cost are not constant in every year.

TABLE: 4.3

TABLE SHOWING HIRED VEHICLE CHARGES


Hired Vehicle Charges

Years Amount (in %)2008 (-)36.2%

2009 (-)59.1%

2010 (-)36.5%

2008 2009 2010

-70.00%

-60.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. The comparative income statement of

the company reveals that during 2008 they has been a decrease in hired vehicle charges of -

122753 i.e., -36.2%. Also there was decrease in 2009 and 2010, 59.1% and -36.5%

respectively.

TABLE: 4.4

TABLE SHOWING REPAIRS & MAINTAINCE


Repairs & maintaince


2009 27.1%

2010 (-)10.2%

2008 2009 2010

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. Repairs and maintains during the year

2008 was increased by 33.1%, and in 2009 there was increased by 27.1% but in 2010 it was -

10.2% (decreased).

TABLE: 4.5

TABLE SHOWING FUEL & OIL


Fuel & oil


2009 23.8%

2010 14.1%

2008 2009 20100.00%

5.00%

10.00%

15.00%

20.00%

25.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. The study made between 2007 and

2008 shows the increase of 15.6%, and in 2009 also it was increased by 23.8% finally in 2010

14.1% fuel and oil was increased. The fact shows that 2009 expenses on fuel and oil was high

compare to 2008 and 2009.

TABLE: 4.6

TABLE SHOWING TAX ON PASSENGERS VEHICLE


Tax on Passenengers

vehicle


2009 13.4%

2010 11.8%

2008 2009 201010.50%

11.00%

11.50%

12.00%

12.50%

13.00%

13.50%

14.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. Taxes levied on 2008 was increased

by 50484 i.e., 12.8%, also 2009 data shows that 59634 i.e., 13.4% of taxes were increased. In

2010 finally it was increased by 11.8%.

TABLE: 4.7

TABLE SHOWING WELFARE EXPENSES


Welfare Expenses


2009 1.5%

2010 54.6%

20082009

2010

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. The expenses on employee welfare

was been increased by 107797 i.e., 14.7% in 2008 and 1.5% in 2009, also in 2010 company

faces a huge increase in expenses i.e., 54.6%

This fact shows that company is concentrating more on employee welfare.

TABLE: 4.8

TABLE SHOWING ADMINISTRATION EXPENSES


AdministrationExpenses


2009 1.2%

2010 (-)62.4%

2008 2009 2010

-70.00%

-60.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. In 2008 admin expenses was 24.8%,

in 2009 it was increased up to 1.2%, but in 2010 it was decreased up to (-)62.4%.

This fact shows that company follows the same measures which have been taken in 2010 to

reduce admin expenses.

TABLE: 4.9

TABLE SHOWING DEPRECATION OF VEHICLE


Deprecation of Vehicles


2009 46.3%

2010 5.1%

2008 2009 20100.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. Deprecation charged on vehicles in

2008 was increased by 100471 i.e., 18.9%, and in 2009 there was a huge increase of292524 i.e.

46.3%. Also in 2010 it was increased by 5.1%.

This fact shows that company is taking measures towards deprecation.

TABLE: 4.10

TABLE SHOWING OPERATING EXPENSES


Operating Expenses

(total)


2009 18.7%

2010 12.7%

2008 2009 20100.00%

5.00%

10.00%

15.00%

20.00%

25.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. Companies operating expenses has

been increasing every year i.e. 20.5%, 18.7%, 12.7% in 2008 2009 and 2010 respectively.

This fact shows that company is not taking measures to reduce operating expenses.

TABLE: 4.11

TABLE SHOWING NON OPERATING EXPENSES


NonOperating Expenses


2009 (-)6.5%

2010 10.3%

2008 2009 2010

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. The study made between 2007 and

2008 shows the increase of 21.8% in non operating expenses, and in 2009 there was a huge fall

as it was -65%, finally in 2010 it was increased by 10.3%. The fact shows that company is

putting huge effort to reduce non-operating expenses.

TABLE: 4.12

TABLE SHOWING OPERATING INCOME

Years Amount (in %)


Operating Income

2008 13.2%

2009 13.2%

2010 11.5%

2008 2009 201010.50%

11.00%

11.50%

12.00%

12.50%

13.00%

13.50%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. The operating income in 2008 was

increased by 13.2%, also in 2009 there was no changes found in income i.e. it was 13.2 %,

finally in 2010 it was increased by 11.5%.

This fact shows that company has to reduce its operating expenses.

TABLE: 4.13

TABLE SHOWING NON-TRAFFIC REVENUE

Years Amount (in %)


Non-Traffic Revenue

2008 (-)23.3%

2009 (-)32.6%

2010 25.9%

2008 2009 2010

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. Companies non traffic income has

been decreased by -23.3% and -32.6%, in 2008 and 2009. But in 2010, 25.9% of income was

increased.

This fact shows that company is doing well in 2010 when compared to previous years.

TABLE: 4.14

TABLE SHOWING NET PRIOR INCOME


Net prior income

Years Amount (in %)2008 0%

2009 0%

2010 100%

20082009

2010

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. Companies net prior income was nil

in past two years i.e. in 2008 and 2009. But in 2010 it was increased by 7106 i.e. 100%.

This fact shows that company can do well if it takes same measures.

TABLE: 4.15

TABLE SHOWING EQUITY SHARE CAPITAL


Equity Share


2009 0%

2010 0%

2008 2009 20100%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. The comparative balance sheet of the

company reveals that equity share capital is constant in every year.

This fact shows that company has borrowed same amount of capital every year from its share

holders.

TABLE: 4.16

TABLE SHOWING CAPITAL CONTRIBUTION

Years Amount (in %)


Capital Contribution

2008 28.6%

2009 (-)22.9%

2010 0%

2008 2009 2010

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

INTERPRETATION:

Capital contribution from state government has been increased by 153716 i.e., 28.6% in 2008

but in 2009 capital contribution was decreased by -158163 i.e. -22.9% and in 2010 also it was

consent.

This fact shows that capital contribution has been decreased from past 2 years.

TABLE: 4.17

TABLE SHOWING INTERNAL RESOURCES

Years Amount (in %)


Internal Resources

2008 0%

2009 100%

2010 30.0%

2008 2009 20100%

20%

40%

60%

80%

100%

120%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. Internal resources were found nil in

2008, and comparisation made between 2008 and 2009 it was found increased by 100% also in

2010 it was 30% increased.

TABLE:4.18:

TABLE SHOWING SECURED LOANS


Secured Loans


2009 2.4%

2010 45.6%

2008 2009 2010

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

INTERPRETATION:

When comparisation made between 2007 and 2008, there was huge decrease i.e. 36.1% in

2008, and in 2009 it was increased by 2.4% also in 2010 company faced a huge increase by

45.6%.

This fact shows that company is borrowing more secured loans for its expansion activity.

TABLE: 4.19:

TABLE SHOWING UN- SECURED LOANS


Un-Secured Loans


2009 0%

2010 100%

2008 2009 20100%

20%

40%

60%

80%

100%

120%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. The study of un secured loans shows, there was no un secured loans borrowed in 2008 and 2009, finally in 2010 it was increased by 3015i.e. 100%.

TABLE: 4.20:

TABLE SHOWING RESERVES & FUND



Reserves & Fund

2009 (-)50.1%

2010 (-)1%

20082009

2010

-60.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. Reserves and surplus have been

increased by 630376 i.e. 20.8%, but in the year 2009 and 2010 company have to face huge fall

as it incurred a loss of 50.1% and 1% respectively.

This fact shows that company has utilized its reserves and it has been failed to maintain

constant amount of reserves.

TABLE: 4.21:

TABLE SHOWING LIABILITIES



Liabilities2009 118.9%

2010 51.4%

2008 2009 20100.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

INTERPRETATION:

The study made on company’s liabilities it shows that, in 2008 it was increased by 19.7%, but

in 2009 there was a huge increase of 118.9%. Finally in 2010 it was valued at 51.4%.

This fact shows that company should more concentrate on decreasing in liabilities to earn

profit.

TABLE: 4.22:

TABLE SHOWING NET PROFIT



Net Profit2009 4.9%

2010 6.4%

2008 2009 20100.00%

5.00%

10.00%

15.00%

20.00%

25.00%

INTERPRETATION:

Net profit for the year 2008 was increased up to 21.7%, in 2009 4.9% profit was high also in

the year 2010, 6.4% profit was increased.

This fact shows that company is doing well from past few years; if it still takes effective

measures it can definitely increase its profit.

TABLE: 4.23:

TABLE SHOWING FIXED ASSETS



Fixed Assets2009 53.0%

2010 21.8%

2008 2009 20100.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

INTERPRETATION:

Fixed assets have been increased by 20.1% and in 2009 and companies have to face huge

increase of 53.0% and in 2010 also it was increased by 21.8% respectively.

This fact shows that company is doing well with its fixed assets.

TABLE: 4.24:

TABLE SHOWING OTHER FIXED ASSETS



Other Fixed Assets 2009 50.9

2010 85.1%

2008 2009 20100.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

INTERPRETATION:

When comparisation made between 2007 and 2008, in the year 2008 other fixed assets was 75/.9%, in 2009 it was increased up to 45.4%, and in 2010 85.7% of assets were high.

This fact shows that company is also doing well with its other fixed assets.

TABLE: 4.25:

TABLE SHOWING INVESTMENTS



Investments2009 (-)89.6%

2010 (-)29.0%

20082009

2010

-90%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. In 2008 investments was nil, in 2009

it was decreased up to (-) 89.6% also in 2010 it was decreased by (-) 21.9.

This fact shows that company’s income from investments has been decreased from past two

years.

TABLE: 4.26:

TABLE SHOWING CURRENT ASSETS



Current Assets2009 23.4%

2010 (-)91.3%

2008 2009 2010

-100.00%

-80.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

INTERPRETATION:

When the study conducted on Current assets it was found that in 2008 it was (-) 5.5% less, but

in 2009 and 2010 it was 23.4% and 16.1% respectively.

This fact shows that company’s income from investments has been decreased from past two

years.

TABLE: 4.27:

TABLE SHOWING DEFERRED REVENUE EXPENDITURE



Deferred Revenue

Expenditure

2009 (-)100%

2010 100%

2008 2009 2010

-150.00%

-100.00%

-50.00%

0.00%

50.00%

100.00%

150.00%

INTERPRETATION:

When comparisation made between 2007 and 2008 data. From the above table showing

deferred revenue expenditure for the 3 presiding previous years. There is a decreasing in

expenses from the year 2007 to 2009. It was -63.9% in the year 2008, nil in the year 2009 but

100% in the year 2010.

FINDINGS

1. Company’s equity share capital maintained a constant level of 1045948000 during the

last 3 years.


2. Since BMTC is a semi government company (combination of state and central

government), capital contribution from central government was found nil.

3. There is an increase in the employee cost of 32.8% in 2008, 18.6% in 2009 and 34.9%

in 2010for the last 3 years.

4. Hired vehicle charges found decreasing continuously for the last 3 years. i.e. -36.2% in

2008, 59.1% in 2009 and -36.5%.

5. Expenses on fuel and oil also found decreasing of 14.1% in the year 2010 due to

adopting new technology buses and taking effective measures.

6. Company’s contribution towards employee’s welfare is good and found increasing. In

2010, 54.6% was increased.

7. Operating income decreasing for the last year, this will effect on gaining profits. It was

13.2% in 2009 and it was decreased to 11.5% in 2010.

8. There is an increase in the company liabilities for the last 2 years. In 2009 company

faced a huge increase of 118.9%, also in 2010 it was increased by 51.4%.

9. There has been drastic increase and decrease of reserves and funds for the year last year

i.e. in the year 2009 there is bad fall (-)50% but has shown a increase in the current year

i.e. (-)1%.

SUGGESTIONS:

1. Equity share capital of the company is constant. It is suggested that the company

issues more equity to attract customers.


2. Central governments capital contribution found nil. If they also contribute capital, it

can be utilized for company’s growth.

3. Employee cost increasing continuously efforts should be taken to minimize the

employee cost.

4. Company’s cost on hired vehicles is decreasing. It can do well if it can hire more

vehicles at less cost.

5. Expenses on repairs and maintains also found decreasing in 2010. It can also

minimize the maintains cost by employing well skilled and experienced labours.

6. Fuel and oil expenses found decreasing. It is suggested that company should go

through less fuel consumption vehicle like Volvo’s to control expenses on fuel and

oil.

7. As the cost incurred is high, the operating income will tend to reduce. Therefore, in

order to avoid this, the cost of the organization should be well managed.

8. As the cost incurred on the administration has drastically fallen, the organization can

try to invest more cost in this department and bring quality products.

9. The Research and Development department should be improved properly and utilized

effectively. It is suggested that the company must give training its members to

increase the productivity level and helps to generate innovation.


CONCLUSION

1. The company is doing well with its available resources. If it takes more

measures and concentrates on reducing its expenses it can increase its profit.

2. The company may introduce new attractive schemes to attract its customers

and it is also beneficial to public.

3. The company must be more professional in credit collections and allocation.

4. Company’s financial statements were satisfactory.

5. The company can increase its market share in India’s expanding transport

services industry by following a disciplined growth strategy and delivering

high quality customer service.

Finally overall performance of the company is good tracking in the year 2010.

But, company has greater value of current assets and should more concentrate on

decreasing its liabilities, also it should maintain stable amount of reserves and

funds. And there is a huge decrease in current assets it should also balance its

liquidity position.

.



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