Comparative Analysis of the Financial Position Of

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Presented by-PRIYADARSANI KUMARICUJ/I/2010/IMBA/28

Comparative analysis of the financial position of the BSNL

1COMPANY PROFILEBharat 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. 2OBJECTIVES:-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 DATAPRIMARY 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)3FINANCIAL 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 ANALYSISComparative StatementTrend analysisCommon Size StatementCash Flow AnalysisFunds flowsRatio analysis

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COMPARATIVE STATEMENTThe 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 ANALYSISThe 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.

5INTERPRETATION OF TREND ANALYSIS OF BALANCE SHEET WITH THE HELP OF CHARTS:-

67CONCLUSIONThere was not much good financial position of BSNL in year 2013 as comparison to 2008 and previous years.There was 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.

8SUGGESTIONThere 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

9LIMITATIONSFinancial 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.

10BIBLIOGRAPHY

Management AccountingShashi K. Gupta & R.K. SharmaFinancial ManagementI.M. Pandey.Research Paper: Financial Analysis HamptonJohn J.Financial Decision Making, Second Ed p.75Web siteswww.bsnl.co.inwww.bihar.bsnl.co.inwww.google.comAnnual Reports of BSNL 2008-2013Departmental RecordsECONOMICS TIMES

11THANK YOU12COMPARATIVE BALANCESHEET OF 5YEARSBHARAT SANCHAR NIGM LIMITED (BALANCE SHEET AS AT MARCH 31st, 2009)

SOURCES OF FUNDSAs at march,2009 (Rs in lakh) (A)As at march,2008 (Rs in lakh) (B)Increase/Decrease(C=A-B)% changeD=C x100 A

Shareholders fund

Capital1,250,000 1,250,000 0 0

Reserves and Surpluses7,613,358 7,562,825 50,533 0.66

Loan Funds

Unsecured loans341,384 338,887 2,497 0.73

Deferred tax liability- Net64,484 131,053 (66,569)(103.23)

Total9,269,226 9,282,765 (13,539)(0.14)

Applications of Funds

Fixed assets

Gross Block13,224,291 12,457,823 766,468 5.79

less: Depreciation7,792,203 6,987,974 804,229 10.32

Net Block5,432,088 5,469,849 (37,761)(0.69)

Capital work- in- progress492,864 266,562 226,302 45.91

Decommissioned Assets4,644 389 4,255 91.62

5,929,596 5,736,800 192,796 3.25

Investments20,000 20,000 0 0.00

Current Assets and Loans & Advances

Accrued Interest (Net)87,239 137,687 (50,448)(57.82)

Inventories457,258 322,006 135,252 29.57

Sundry Debtors472,054 546,551 (74,497)(15.78)

Cash & Bank balance3,813,430 4,055,158 (241,728)(6.33)

Loans & Advances944,880 744,441 200,439 21.21

5,774,861 5,805,843 (30,982)(0.53)

Less: Current Liabilities and provisions

Liabilities2,072,702 1,739,788 332,914 16.06

Provisions493,878 606,321 (112,443)(22.76)

2,566,580 2,346,109 220,471 8.59

Net current assets3,208,281 3,459,734 (251,453)(7.83)

Intra/Inter Circle Remittance111,349 66,231 45,118 40.51

Total9,269,226 9,282,765 (13,539)(0.14)

BHARAT SANCHAR NIGM LIMITED (BALANCE SHEET AS AT MARCH 31st, 2010)

SOURCES OF FUNDSAs at march,2010 (Rs in lakh)As at amrch,2009 (Rs in lakh)Increase/Decrease% change

Shareholders fund

Capital1,250,000 1,250,000 00

Reserves and Surpluses7,397,566 7,613,358 (215,792)(2.91)

Loan Funds

Unsecured loans153,370 341,384 (188,014)(122.58)


Total8,813,320 9,269,226 (455,906)(5.17)


Fixed assets

Gross Block16,046,962 13,224,291 2,822,671 17.59


Net Block1,388,032 5,432,088 (4,044,056)(291.35)

Capital work- in- progress596,523 492,864 103,659 17.37

Decommissioned Assets7,897 4,644 3,253 41.19

7,992,452 5,929,596 2,062,856 25.81

Investments20,000 20,000 0 0


Accrued Interest (Net)85,521 87,239 (1,718)(2)

Inventories505,833 457,258 48,575 9.6

Sundry Debtors474,457 472,054 2,403 0.5

Cash & Bank balance3,034,340 3,813,430 (779,090)(25.67)

Loans & Advances1,397,028 944,880 452,148 32.36

5,497,179 5,774,861 (277,682)(5.05)


Liabilities4,277,642 2,072,702 2,204,940 51.54

Provisions557,602 493,878 63,724 11.42

4,835,244 2,566,580 2,268,664 46.91

Net current assets661,935 3,208,281 (2,546,346)(384.68)


Total8,813,320 9,269,226 (455,906)(5.17)



Shareholders fund

Capital1,250,000 1,250,000 0 0.00


Loan Funds

Unsecured loans184,574 153,370 31,204 16.91


Total8,200,664 8,813,320 (612,656)(7.47)


Fixed assets

Gross Block16,704,374 16,046,962 657,412 3.94


Net Block7,159,392 7,388,032 (228,640)(3.19)

Capital work- in- progress519,452 596,523 (77,071)(14.84)


7,688,828 7,992,452 (303,624)(3.95)

Investments550,141 20,000 530,141 96.36


Accrued Interest (Net)292 85,521 (85,229)(29,188.01)

Inventories394,824 505,833 (111,009)(28.12)

Sundry Debtors632,782 474,457 158,325 25.02

Cash & Bank balance250,008 3,034,340 (2,784,332)(1,113.70)

Loans & Advances1,351,882 1,397,028 (45,146)(3.34)

2,629,788 5,497,179 (2,867,391)(109.04)


Liabilities2,200,029 4,277,642 (2,077,613)(94.44)

Provisions639,243 557,602 81,641 12.77

2,839,272 4,835,244 (1,995,972)(70.30)

Net current assets(209,484)661,935 (871,419)415.98


Total8,200,664 8,813,320 (612,656)(7.47)



Shareholders fund

Capital1,250,000 1,250,000 0 0


Loan Funds

Unsecured loans201,492 184,574 16,918 8.40

Deferred tax liability- Net530,137 12,384

Total7,848,731 8,191,449 (342,718)(4.37)


Fixed assets

Gross Block16,961,087 16,704,374 256,713 1.51


Net Block6,703,174 7,159,392 (456,218)(6.81)

Capital work- in- progress428,048 519,452 (91,404)(21.35)


7,146,438 7,688,828 (542,390)(7.59)

Investments601,352 550,141 51,211 8.52


Accrued Interest (Net)232 292 (60)(25.86)

Inventories359,678 394,824 (35,146)(9.77)

Sundry Debtors683,196 632,782 50,414 7.38

Cash & Bank balance188,509 250,008 (61,499)(32.62)

Loans & Advances1,209,106 1,351,882 (142,776)(11.81)

2,351,017 2,629,788 (278,771)(11.86)


Liabilities1,597,299 2,200,029 (602,730)(37.73)

Provisions674,212 639,243 34,969 5.19

2,271,511 2,839,272 (567,761)(24.99)

Net current assets79,506 (209,484)288,990 363.48

Intra/Inter Circle Remittance123,615 152,749 (29,134)(23.57)

Total7,848,731 8,191,449 (342,718)(4.37)



Shareholders fund

Capital1,250,0001,250,00000

Reserves and Surpluses5,076,2406,756,875(1,680,635)(33)

Loan Funds

Unsecured loans19,375184,574(165,199)(852.64)

Deferred tax liability- Net520,527530,137(9,610)(1.85)

Total6,866,1428,191,449(1,325,307)(19.30)


Fixed assets

Gross Block17,193,55416,704,3744891802.85

less: Depreciation11,125,8319,544,982158084914.21

Net Block6,067,7237,159,392(1,091,669)(17.99)

Capital work- in- progress373,857519,452(145,595)(38.94)

Decommissioned Assets14,3259,984434130.3

6,455,9057,688,828(1,232,923)(19.10)

Investments657,511550,14110737016.33


Accrued Interest (Net)149292(143)(95.97)

Inventories377,209394,824(17,615)(4.67)

Sundry Debtors562,467632,782(70,315)(12.50)

Cash & Bank balance116,125250,008(133,883)(115.29)

Loans & Advances1,773,9141,351,88242203223.79

2,829,8642,629,7882000767.07


Liabilities1,944,0072,200,029(256,022)(13.17)

Provisions740,192639,243100,94913.64

2,684,1992,839,272(155,073)(5.78)

Net current assets78,051(209,484)287,535368.39

Intra/Inter Circle Remittance102,458152,749(50,291)(49.08)

Total6,866,1428,191,449(1,325,307)(19.30)

ABSOLUTE AMOUNTS

SOURCES OF FUNDS200820092010201120122013

Shareholders fund

Capital1,250,0001,250,0001,250,0001,250,0001,250,0001,250,000

Reserves and Surpluses7,562,8257,613,3587,397,566 6,756,875 6,756,8755,076240

Loan Funds

Unsecured loans338,887341,384153,37018,457418457419,375

Deferred tax liability- Net131,05364,48412,38412,384530,137520,527

Total9,282,7659,269,2268,813,3208,191,4498,191,4496,866,142


Fixed assets

Gross Block12,457,82313,224,29116,046,96216,704,37416,704,37417,193,554

less: Depreciation6,987,9747,792,2038,658,9309,544,9829,544,98211,125,831

Net Block5,469,8495,432,0881,388,0327,159,3927,159,3926,067,723

Capital work- in- progress266,562492,864596,523519,452519,452373,857

Decommissioned Assets3894,6447,8979,9849,98414,325

5,736,8005,929,5967,992,4527,688,8287,688,8286,455,905

Investments20,00020,00020,000550,141550,141 657,511


Accrued Interest (Net)137,68787,23985,521292292149

Inventories322,006457,258505,833394,824394,824 377,209

Sundry Debtors546,551472,054474,457632,782632,782562,467

Cash & Bank balance4,055,158.003,813,430.003,034,340.00250,008250,008116,125

Loans & Advances744,441944,8801,397,0281,351,8821,351,8821,773,914

5,805,8435,774,8615,497,1792,629,7882,629,7882829864


Liabilities1,739,7882,072,7024,277,6422,200,0292,200,0291,944,007

Provisions606,321493,878557,602639,243639,243740,192

2,346,1092,566,5804,835,2442,839,2722,839,2722,684,199

Net current assets3,459,7343,208,281661,935(209,484)(209,484)78,051

Intra/Inter Circle Remittance66,231111,349138,933152,749152,749102,458

Total9,282,7659,269,2268,813,3208,191,4498,191,4496,866,142

TREND PERCENTAGES(BASE YEAR 2008)

SOURCES OF FUNDS200820092010201120122013

Shareholders fund

Capital100100.00100.00100.00100.00100.00

Reserves and Surpluses10099.3497.8189.3489.3467.12

Loan Funds

Unsecured loans10099.2745.2654.4654.465.72

Deferred tax liability- Net100203.239.457.03404.52397.19

Total100100.1594.9488.3488.2473.97


Fixed assets

Gross Block10094.20128.81134.09134.09138.01

less: Depreciation10089.68123.91136.59136.59159.21

Net Block100100.70135.07130.89130.89110.93

Capital work- in- progress10054.08223.78194.87194.87140.25

Decommissioned Assets1008.382030.082566.582566.583682.52

10096.75139.32134.03134.03112.53

Investments100100.00100.002750.712750.713287.56


Accrued Interest (Net)100157.8362.110.210.210.11

Inventories10070.42157.09122.61122.61117.14

Sundry Debtors100115.7886.81115.78115.78102.91

Cash & Bank balance100106.3474.836.176.172.86

Loans & Advances10078.79187.66181.60181.60238.29

100100.5494.6845.3045.3048.74


Liabilities10083.94245.87126.45126.45111.74

Provisions100122.7791.96105.43105.43122.08

10091.41206.10121.02121.02114.41

Net current assets100107.8419.13-6.05-6.052.26

Intra/Inter Circle Remittance10059.48209.77230.63230.63154.70

Total100100.1594.9488.3488.2473.97

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Comparative Analysis of the Financial Position Of