Slide 1

Presented by-

PRIYADARSANI KUMARI

CUJ/I/2010/IMBA/28

Comparative analysis of the financial position of the BSNL

1

COMPANY PROFILE

Bharat Sanchar Nigam Limited (known as BSNL) was incorporated on 15 September 2000 that time Mr. J N Mishra has taken the responsibility of BSNL as a President.

Before 2000 ,it was known as Department of telecommunication (DOT).

During that period, BSNL was the only telecom service provider in the country (MTNL was present only in Mumbai and New Delhi).

BSNL is a public sector telecommunication company, headquartered in New Delhi , India. Mr.R.K Upadhyay is a Chairman and MD of BSNL.

BSNL is at 5th position as an operator with Market share of 13.28%. BSNL has large base of skilled work force of around 2.84 lakhs as on 30th April 2013.

The total telephone connections as on April 30, 2013 are 897 millions, out of which 119.14 million connections are provided by BSNL.

It has the status of Mini Ratna, a status assigned to reputed public sector companies in India.

2

OBJECTIVES:-

To identify the various assets amount of the BSNL with respect to Annual Repots of the BSNL.

Comparative study of five year Annual reports.

To study the various departments for the needs of assets.

METHODOLOGIES :-

SOURCE OF DATA

PRIMARY DATA

Discussion with the Management Accounts Officer Mr. K.S.Choudhary .

Informal interview of different department.

SECONDARY DATA

Journals

Magazines

Annual report

Company broachers

Company website

Articles (provided by the head)

3

FINANCIAL STATEMENT ANALYSIS

Financial statement analysis is an evaluative method of determining the past, current and projected performance of a company. Several techniques are commonly used as part of financial statement analysis including horizontal analysis, which compares two or more years of financial data in both rupees and percentage form; vertical analysis, where each category of accounts on the balance sheet is shown as a percentage of the total account; and ratio analysis, which calculates statistical relationships between data.

METHODS OR DEVICES OF FINANCIAL ANALYSIS

Comparative Statement

Trend analysis

Common Size Statement

Cash Flow Analysis

Funds flows

Ratio analysis

4

COMPARATIVE STATEMENT

The comparative statement shows that absolute figures (rupee amounts),changes in absolute figures i.e., increase or decrease in absolute figures , absolute data in terms of percentages and Increase or decrease in terms of percentages.

The two comparative statements are Balance sheet, and Income statement.

Comparative balance sheet analysis is the study of the trend of the same items, group of item and computed item in two or more balance sheets of the same business enterprise on different data.

TREND ANALYSIS

The analysis is an important and useful technique of analysis and interpretation of financial statement under the technique the ration of different items for various periods are calculate for the company over a definite period of time say three to five years and then we can analysis trend highlighted by this ratio

Trend analysis can be done in three way i.e,Trend percentage, Trend ratio,Graphic and diagrammatic representation.

In the statement the percentage column are more relevant than the figure.

5

INTERPRETATION OF TREND ANALYSIS OF BALANCE SHEET WITH THE HELP OF CHARTS:-

6

Share capital200520062007200820092010100100100100100100

Reserves and surpluses20082009201020112012201310099.3497.8189.3489.3467.11999999999999

Unsecured Loan20082009201020112012201310099.2745.26000000000001254.4654.465.72

deferred tax liability200820092010201120122013100203.239.45000000000000287.03404.52397.19

7

Total Fixed Assets20082009201020112012201310096.4791.17999999999997886.3689.27120.320

Total current assets, loans and advances200820092010201120122013100100.5494.67999999999997845.345.348.74

Total current liabilities and provisions20082009201020112012201310091.410000000000025206.1121.02121.02114.41000000000012

Net current assets200820092010201120122013100107.8419.130000000000031-6.05-6.052.2599999999999998

Investments2008200920102011201220131001001002750.712750.713287.56

Total Capital employed200820092010201120122013100100.1499999999999994.94000000000002688.3488.24000000000002373.97

CONCLUSION

There was not much good financial position of BSNL in year 2013 as comparison to 2008 and previous years.

There was no change in investment of the company in all the 6 years. If there are more investment than financial position of BSNL may be improved and earn more profit at present time.

Working process of BSNL is take very long time because of which, BSNL is not being able to progress. So improved the working process.

BSNL is facing the capital problem because of which financial position of BSNL are affected.

BSNL is paying more taxes. Because of paying more taxes, financial position of BSNL are affected.

Overall at present time, financial position of BSNL is not good based on year 2008-2009.

There was earned more profit in year 2008 but year by year BSNL is on loss.

8

SUGGESTION

There should be increase in investment of BSNL. So that could be earned more profit. Because, if investment will be high than profit will be earnedhigh.

There should be improved the working process of BSNL. Because working process of BSNL is take more time.

Departments of BSNL do not have good coordination. So there should be good coordination in departments of BSNL. If coordination will have good in departments, than there will not has to face any problem in proper work.

Time to time, there should be provided training of employee. So that they could take information about the new technology of them proper working process.

There should be good communication between each departments of BSNL.

There should be computerized work in BSNL. But also at this time, paper work are continue to see in many department

9

LIMITATIONS

Financial analysis is a powerful mechanism of determining financial strengths and weaknesses of a firm but, the analysis is based on the information available in the financial statements.

It is only a study of interim reports.

Financial analysis is based upon only monetary information and non-monetary factors are ignored.

As the financial statements are prepared on the basis of a going concern, it does not give exact position.

Thus accounting concepts and conventions cause a serious limitation to financials analysis.

Changes in accounting procedure by a firm may often make financial analysis Misleading.

10

BIBLIOGRAPHY

Management AccountingShashi K. Gupta & R.K. Sharma

Financial ManagementI.M. Pandey.

Research Paper: Financial Analysis HamptonJohn J.Financial Decision Making, Second Ed p.75

Web sites

www.bsnl.co.in

www.bihar.bsnl.co.in

www.google.com

Annual Reports of BSNL 2008-2013

Departmental Records

ECONOMICS TIMES

11

THANK YOU

12

Microsoft Office

Word Document

COMPARATIVE BALANCESHEET OF 5YEARS

BHARAT SANCHAR NIGM LIMITED (BALANCE SHEET AS AT MARCH 31st, 2009)

SOURCES OF FUNDS

As at march,2009 (Rs in lakh) (A)

As at march,2008 (Rs in lakh) (B)

Increase/Decrease

(C=A-B)

% change

D=C x100

A

Shareholders fund

Capital

1,250,000

1,250,000

0

0

Reserves and Surpluses

7,613,358

7,562,825

50,533

0.66

Loan Funds

Unsecured loans

341,384

338,887

2,497

0.73

Deferred tax liability- Net

64,484

131,053

(66,569)

(103.23)

Total

9,269,226

9,282,765

(13,539)

(0.14)

Applications of Funds

Fixed assets

Gross Block

13,224,291

12,457,823

766,468

5.79

less: Depreciation

7,792,203

6,987,974

804,229

10.32

Net Block

5,432,088

5,469,849

(37,761)

(0.69)

Capital work- in- progress

492,864

266,562

226,302

45.91

Decommissioned Assets

4,644

389

4,255

91.62

5,929,596

5,736,800

192,796

3.25

Investments

20,000

20,000

0

0.00

Current Assets and Loans & Advances

Accrued Interest (Net)

87,239

137,687

(50,448)

(57.82)

Inventories

457,258

322,006

135,252

29.57

Sundry Debtors

472,054

546,551

(74,497)

(15.78)

Cash & Bank balance

3,813,430

4,055,158

(241,728)

(6.33)

Loans & Advances

944,880

744,441

200,439

21.21

5,774,861

5,805,843

(30,982)

(0.53)

Less: Current Liabilities and provisions

Liabilities

2,072,702

1,739,788

332,914

16.06

Provisions

493,878

606,321

(112,443)

(22.76)

2,566,580

2,346,109

220,471

8.59

Net current assets

3,208,281

3,459,734

(251,453)

(7.83)

Intra/Inter Circle Remittance

111,349

66,231

45,118

40.51

Total

9,269,226

9,282,765

(13,539)

(0.14)

BHARAT SANCHAR NIGM LIMITED (BALANCE SHEET AS AT MARCH 31st, 2009)

SOURCES OF FUNDS

As at march,2009 (Rs in lakh)

As at march,2008 (Rs in lakh)

Increase/Decrease

% change

Shareholders fund

Capital

1,250,000

1,250,000

0

0

Reserves and Surpluses

7,613,358

7,562,825

50,533

0.66

Loan Funds

Unsecured loans

341,384

338,887

2,497

0.73

Deferred tax liability- Net

64,484

131,053

(66,569)

(103.23)

Total

9,269,226

9,282,765

(13,539)

(0.14)

Applications of Funds

Fixed assets

Gross Block

13,224,291

12,457,823

766,468

5.79

less: Depreciation

7,792,203

6,987,974

804,229

10.32

Net Block

5,432,088

5,469,849

(37,761)

(0.69)

Capital work- in- progress

492,864

266,562

226,302

45.91

Decommissioned Assets

4,644

389

4,255

91.62

5,929,596

5,736,800

192,796

3.25

Investments

20,000

20,000

0

0.00

Current Assets and Loans & Advances

Accrued Interest (Net)

87,239

137,687

(50,448)

(57.82)

Inventories

457,258

322,006

135,252

29.57

Sundry Debtors

472,054

546,551

(74,497)

(15.78)

Cash & Bank balance

3,813,430

4,055,158

(241,728)

(6.33)

Loans & Advances

944,880

744,441

200,439

21.21

5,774,861

5,805,843

(30,982)

(0.53)

Less: Current Liabilities and provisions

Liabilities

2,072,702

1,739,788

332,914

16.06

Provisions

493,878

606,321

(112,443)

(22.76)

2,566,580

2,346,109

220,471

8.59

Net current assets

3,208,281

3,459,734

(251,453)

(7.83)

Intra/Inter Circle Remittance

111,349

66,231

45,118

40.51

Total

9,269,226

9,282,765

(13,539)

(0.14)

BHARAT SANCHAR NIGM LIMITED (BALANCE SHEET AS AT MARCH 31st, 2009)

SOURCES OF FUNDS

As at march,2009 (Rs in lakh)

As at march,2008 (Rs in lakh)

Increase/Decrease

% change

Shareholders fund

Capital

1,250,000

1,250,000

0

0

Reserves and Surpluses

7,613,358

7,562,825

50,533

0.66

Loan Funds

Unsecured loans

341,384

338,887

2,497

0.73

Deferred tax liability- Net

64,484

131,053

(66,569)

(103.23)

Total

9,269,226

9,282,765

(13,539)

(0.14)

Applications of Funds

Fixed assets

Gross Block

13,224,291

12,457,823

766,468

5.79

less: Depreciation

7,792,203

6,987,974

804,229

10.32

Net Block

5,432,088

5,469,849

(37,761)

(0.69)

Capital work- in- progress

492,864

266,562

226,302

45.91

Decommissioned Assets

4,644

389

4,255

91.62

5,929,596

5,736,800

192,796

3.25

Investments

20,000

20,000

0

0.00

Current Assets and Loans & Advances

Accrued Interest (Net)

87,239

137,687

(50,448)

(57.82)

Inventories

457,258

322,006

135,252

29.57

Sundry Debtors

472,054

546,551

(74,497)

(15.78)

Cash & Bank balance

3,813,430

4,055,158

(241,728)

(6.33)

Loans & Advances

944,880

744,441

200,439

21.21

5,774,861

5,805,843

(30,982)

(0.53)

Less: Current Liabilities and provisions

Liabilities

2,072,702

1,739,788

332,914

16.06

Provisions

493,878

606,321

(112,443)

(22.76)

2,566,580

2,346,109

220,471

8.59

Net current assets

3,208,281

3,459,734

(251,453)

(7.83)

Intra/Inter Circle Remittance

111,349

66,231

45,118

40.51

Total

9,269,226

9,282,765

(13,539)

(0.14)

BHARAT SANCHAR NIGM LIMITED (BALANCE SHEET AS AT MARCH 31st, 2009)

SOURCES OF FUNDS

As at march,2009 (Rs in lakh)

As at march,2008 (Rs in lakh)

Increase/Decrease

% change

Shareholders fund

Capital

1,250,000

1,250,000

0

0

Reserves and Surpluses

7,613,358

7,562,825

50,533

0.66

Loan Funds

Unsecured loans

341,384

338,887

2,497

0.73

Deferred tax liability- Net

64,484

131,053

(66,569)

(103.23)

Total

9,269,226

9,282,765

(13,539)

(0.14)

Applications of Funds

Fixed assets

Gross Block

13,224,291

12,457,823

766,468

5.79

less: Depreciation

7,792,203

6,987,974

804,229

10.32

Net Block

5,432,088

5,469,849

(37,761)

(0.69)

Capital work- in- progress

492,864

266,562

226,302

45.91

Decommissioned Assets

4,644

389

4,255

91.62

5,929,596

5,736,800

192,796

3.25

Investments

20,000

20,000

0

0.00

Current Assets and Loans & Advances

Accrued Interest (Net)

87,239

137,687

(50,448)

(57.82)

Inventories

457,258

322,006

135,252

29.57

Sundry Debtors

472,054

546,551

(74,497)

(15.78)

Cash & Bank balance

3,813,430

4,055,158

(241,728)

(6.33)

Loans & Advances

944,880

744,441

200,439

21.21

5,774,861

5,805,843

(30,982)

(0.53)

Less: Current Liabilities and provisions

Liabilities

2,072,702

1,739,788

332,914

16.06

Provisions

493,878

606,321

(112,443)

(22.76)

2,566,580

2,346,109

220,471

8.59

Net current assets

3,208,281

3,459,734

(251,453)

(7.83)

Intra/Inter Circle Remittance

111,349

66,231

45,118

40.51

Total

9,269,226

9,282,765

(13,539)

(0.14)

ABSOLUTE AMOUNTS

SOURCES OF FUNDS

2008

2009

2010

2011

2012

2013

Shareholders fund

Capital

1,250,000

1,250,000

1,250,000

1,250,000

1,250,000

1,250,000

Reserves and Surpluses

7,562,825

7,613,358

7,397,566

6,756,875

6,756,875

5,076240

Loan Funds

Unsecured loans

338,887

341,384

153,370

18,4574

184574

19,375

Deferred tax liability- Net

131,053

64,484

12,384

12,384

530,137

520,527

Total

9,282,765

9,269,226

8,813,320

8,191,449

8,191,449

6,866,142

Applications of Funds

Fixed assets

Gross Block

12,457,823

13,224,291

16,046,962

16,704,374

16,704,374

17,193,554

less: Depreciation

6,987,974

7,792,203

8,658,930

9,544,982

9,544,982

11,125,831

Net Block

5,469,849

5,432,088

1,388,032

7,159,392

7,159,392

6,067,723

Capital work- in- progress

266,562

492,864

596,523

519,452

519,452

373,857

Decommissioned Assets

389

4,644

7,897

9,984

9,984

14,325

5,736,800

5,929,596

7,992,452

7,688,828

7,688,828

6,455,905

Investments

20,000

20,000

20,000

550,141

550,141

657,511

Current Assets and Loans & Advances

Accrued Interest (Net)

137,687

87,239

85,521

292

292

149

Inventories

322,006

457,258

505,833

394,824

394,824

377,209

Sundry Debtors

546,551

472,054

474,457

632,782

632,782

562,467

Cash & Bank balance

4,055,158.00

3,813,430.00

3,034,340.00

250,008

250,008

116,125

Loans & Advances

744,441

944,880

1,397,028

1,351,882

1,351,882

1,773,914

5,805,843

5,774,861

5,497,179

2,629,788

2,629,788

2829864

Less: Current Liabilities and provisions

Liabilities

1,739,788

2,072,702

4,277,642

2,200,029

2,200,029

1,944,007

Provisions

606,321

493,878

557,602

639,243

639,243

740,192

2,346,109

2,566,580

4,835,244

2,839,272

2,839,272

2,684,199

Net current assets

3,459,734

3,208,281

661,935

(209,484)

(209,484)

78,051

Intra/Inter Circle Remittance

66,231

111,349

138,933

152,749

152,749

102,458

Total

9,282,765

9,269,226

8,813,320

8,191,449

8,191,449

6,866,142

TREND PERCENTAGES(BASE YEAR 2008)

SOURCES OF FUNDS

2008

2009

2010

2011

2012

2013

Shareholders fund

Capital

100

100.00

100.00

100.00

100.00

100.00

Reserves and Surpluses

100

99.34

97.81

89.34

89.34

67.12

Loan Funds

Unsecured loans

100

99.27

45.26

54.46

54.46

5.72

Deferred tax liability- Net

100

203.23

9.45

7.03

404.52

397.19

Total

100

100.15

94.94

88.34

88.24

73.97

Applications of Funds

Fixed assets

Gross Block

100

94.20

128.81

134.09

134.09

138.01

less: Depreciation

100

89.68

123.91

136.59

136.59

159.21

Net Block

100

100.70

135.07

130.89

130.89

110.93

Capital work- in- progress

100

54.08

223.78

194.87

194.87

140.25

Decommissioned Assets

100

8.38

2030.08

2566.58

2566.58

3682.52

100

96.75

139.32

134.03

134.03

112.53

Investments

100

100.00

100.00

2750.71

2750.71

3287.56

Current Assets and Loans & Advances

Accrued Interest (Net)

100

157.83

62.11

0.21

0.21

0.11

Inventories

100

70.42

157.09

122.61

122.61

117.14

Sundry Debtors

100

115.78

86.81

115.78

115.78

102.91

Cash & Bank balance

100

106.34

74.83

6.17

6.17

2.86

Loans & Advances

100

78.79

187.66

181.60

181.60

238.29

100

100.54

94.68

45.30

45.30

48.74

Less: Current Liabilities and provisions

Liabilities

100

83.94

245.87

126.45

126.45

111.74

Provisions

100

122.77

91.96

105.43

105.43

122.08

100

91.41

206.10

121.02

121.02

114.41

Net current assets

100

107.84

19.13

-6.05

-6.05

2.26

Intra/Inter Circle Remittance

100

59.48

209.77

230.63

230.63

154.70

Total

100

100.15

94.94

88.34

88.24

73.97