Comparative analysis of the financial

position of the BSNL

Presented byPRIYADARSANI KUMARI

CUJ/I/2010/IMBA/28

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.

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)

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

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.
Micro soft Office
Wo rd Document

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.
Micro so ft Office
Word Document

BALANCE SHEET WITH THE HELP OF

CHARTS:Share capital

Reserves and surpluses

120

120

100

Share
capital

80
60

100
60

40

40

20

20

Reserves
and
surpluses

80

0
2005

2006

2007

2008

2009

2010

2008 2009 2010 2011 2012 2013

Unsecured Loan
120

deferred tax liability

450

100

400

80

Unsecured
Loan

60

350
300

deferred tax
liability

250
200

40

150
100

20

50

0
2008 2009 2010 2011 2012 2013

2008 2009 2010 2011 2012 2013

Total Fixed Assets

Total Capital employed

120
100
80
60
40
20
0

Total Capital
employed

Total Fixed
Assets

200820092010201120122013

2008 2009 2010 2011 2012 2013

Investments
3500
3000
2500
2000
1500
1000
500
0

140
120
100
80
60
40
20
0

Total current assets, loans and advances

Investment
s

120
100
80
60
40
20
0

2008 2009 2010 2011 2012 2013

2008 2009 2010 2011 2012 2013

Total current liabilities and provisions

Total
current
liabilities
and
provisions

250
200
150
100
50
0
2008 2009 2010 2011 2012 2013

Total current
assets, loans
and
advances

Net current assets

120
100
80
60
40
20
0
-20 2008 2009 2010 2011 2012 2013

Net current
assets

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.

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 earned high.

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

There

should be good communication between each departments of BSNL.

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

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.

BIBLIOGRAPHY
Management Accounting Shashi K. Gupta & R.K. Sharma
Financial Management I.M. Pandey.
Research Paper: Financial Analysis Hampton John
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

THANK YOU