Executive Summary

Chapter-1 Introduction 1.1. 1.2. 1.3. 1.4. 1.5. Overview of the BSNL Objectives of the study Profile of the Organisation o Overv iew of BSNL Gwalior Circle o Vision, Mission & objectives o Fact Sheet o Revenue s Strategies o Management Profile o Products o Policy of Accounting and finance Comparative Study SWOT Analysis 1 2 3 6 7 8 9 10 11 13 19 21 Chapter-2 Research Methodology 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. 2.8. Statement of the Problem Research Design Methodology Sampling Techniques used Se lection of Sample Size Data Collection Statistical Tools Used Limitations of the Study Introduction Comparative statement of BSNL Trend Analysis of Profit Commo n Size Balance Sheet Cash flow Statement Finding Analysis Conclusion Suggestions 23 23 24 25 25 25 25 26 27 32 35 36 Chapter-3 Data Analysis and Findings 3.1. 3.2. 3.3. 3.4. 3.5. Chapter-4 Conclusion and Suggestions 4.1. 4.2. 4.3. 4.4. 44 44 45 46 47-50 Appendix 1

Bibliography 51 2

Type Availability Owner Key people Founded Website 1.1 Overview Communication Service Provider Countrywide except Delhi & Mumbai The Government of India S.D. Saxena (CFO); A.K. Sinha (CEO) 19th century, incorporated 2000 www of the BSNL: BSNL is India's oldest and largest Communication Service Provider (CSP). Current ly BSNL has a customer base of 64.8 million (Basic & Mobile telephony). It has f ootprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL . As on March 31, 2007 BSNL commanded a customer base of 33.7 million Wireline, 3.6 million CDMAWLL and 27.5 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending March 31, 2006 stood at INR 401.8b (US$ 9.09 b) with net profit of INR 89.4b (US$ 2.02 billion). Toda y, BSNL is India's largest Telco and one of the largest Public Sector Undertakin g of the country with authorized share capital of US$ 3.95 billion (INR 17,500 C rores) and networth of US$ 14.32 billion. 3

Comparative study of Two year Annual reports.2 Objective of Study: The main objective of this study is to carry on brief study on “Analysis of Financ ial Statement” through this I am able to get the difference of various assets and liabilities of the BSNL. 4 . Other objectives of this project are as follows: • • • To ide ntify the various assets amount of the BSNL with respect to Annual Repots of the BSNL.1. To study the various depart ments for the needs of assets and use-less assets amount of BSNL Gwalior city ce nter.

It is a well known fact that B SNL was carved out of Department of Telecom to provide level playing field to pr ivate telecoms. Earlier it was part of erstwhile Post & Telegraph Department (P&T). therefore it became necessary to separate the Go vernment's policy wing from Operations wing. Universal Telecom Sevices : Fixed wireline services & Wireless in Local loop (WLL) using CDMA Technology called b fone and Tarang respectively. BSNL Mobile Pre-paid Mobile 5 . DoT was responsible for running of Telecom services in entire countr y until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. In 1975 the Department of Telecom (DoT) was separate d from P&T. 2000 and named it as Bharat Sanchar Nigam Limited (BSNL). 2007 (end of financial year) BSNL had 76% share of fixed and WLL phones. The history of BSNL is linked with the beginning of Telecom in Indi a. Main Services being provided by BSNL BSNL provides almost every telecom service. In 19th century and for almost entire 20th century.BSNL operates as a public sector.Subsequently in 1990s the telecom sector was opened up by the Gov ernment for Private investment. however following are the main Telec om Services being provided by BSNL in India:1. BSNL is dominant operator in fixed line. The Government of India corporatise d the operations wing of DoT on October 01. the Telecom in India was operated as a Government of India wing.3 Profile of Organisation: Over views of Organisation History The foundation of Telecom Network in India was laid by the British sometime in 1 9th century. As on Mar ch 31.1.

BSNL Broadband 3. premium calling etc. At present BSNL enjoy's 47% of market share of ISP services . Intelligent Network (IN): BSNL is providing IN services like telev oting.2. toll free calling. As on March 31. BSNL has been actively providing conn ections in both Urban and Rural areas and the efficiency of the company has dras tically improved from the days when one had to wait for years to get a phone con nection to now when one can get a connection in even hours. Pre-activated Mobile connections are available at many places across India. 4. Year of Broadband 2007 Former Indian Communications Minister Thiru Dayanidhi Maran had declared year 20 07 as "Year of Broadband" in India and BSNL is gearing up to provide 5 6 . BSNL Present & Future Since its corporatisation in October 2000. Pre-paid Cellula r services of BSNL are know as Excel. BSNL has around 50% marketshare in broadb and in India. BSNL has also unveiled v ery cost-effective Broadband internet access plans (DataOne) targeted at homes a nd small businesses. Cellular Mobile Telephone Services: BSNL is major provider of Cellular Mobile Telephone services using GSM platform under brandname Cellone. 2007 BSNL had 17% share of mobile telephony in the country. Internet: BSNL is providing internet as dial-up connection (Sa ncharnet ) and ADSL-Broadband Dataone. BSNL has planned aggressive rollout in broadband for current finan cial year.

earns lot of criticism for its poor customer service. which has been accepted by th e CMD BSNL.million Broadband connectivity by the end of 2007. BSNL is pioneer of Rural Telephony in India. BSNL is planning to upgrade its broadband services t o Triple play (telecommunications) in 2007. the success of the scheme is not known. A large aging (average age 4 9 years(appx)) workforce (300. BSNL faces bleak fiscal 2006-2007 as users flee. This 2 Mbit/s broadband service is being provided by BSNL at a cost of just US$ 5.000 strong). Althou gh in recent past there have been tremendous improvement in working of BSNL but still it is much below the Industry's Expectations. BSNL being legacy operator and its conversion from a Gov ernment Department. BSNL has upgraded existing Da taone (Broadband) connections for a speed of up to 2 Mbit/s without any extra co st. However. 2007) BSNL has added 9. Presently there is an intense competition in Indian Telecom sector a nd various Telcos are rolling out attractive schemes and are providing good cust omer services. which is mostly semiilletrate or ille terate is the main reason for the poor customer service. BSNL has recently bagged 80% of US$ 580 m (INR 2.6 million new customers in various telephone services taking its custom er base to 64. Further. BSNL's nearest competitor Bharti Airtel is standing at a customer base of 39 million. however. 2006 to March 31. In order to woo back its fixed-line customers BSNL has brought down long distance calling ra te under OneIndia plan.8 million. the Top manage ment of BSNL is still working in BSNL on deputation basis 7 . With the frantic activity in the communication sector in India. However . However. the Fixed line customer base of BSNL is declining. Challenges During Financial Year 2007-2008 (From April 01. however due to intense competition in Indian Telecom sector in recent past BSNL's growth has slowed down.5 per month. BSNL has been asked to add 108 milli on customers by 2010 by Former Indian Communications Minister Thiru Dayanidhi Ma ran.500 crores) Rural Te lephony project of Government of India. the target appears achievable. Further. despite impressive growth shown by BSNL in recent times.

Access Deficit Charges (ADC.e. Administrative. But this office run a collection center this collection center collect various telep hones/mobiles/broadband bills. working efficiency. Operation & Management and Finance. however. DGM is the head of the department. Each department works under GM telecom district.f. Pla nning. departmental information. In this office calculated various function of employees like salary of employees. 2007. This office provides a support to other departments or employees of BSNL. departmental expenditure of general provident funds etc. w. The re duction in ADC may hit the bottomlines of BSNL. a levy being paid by the private operators to BSNL for provide service in non-lucarative areas especi ally rural areas) has been slashed by 37% by TRAI. This approval leaves various effect of the department like financial. various tenders. p ayment of vendors. BSNL at Gwalior Circle BSNL Gwalior Circle office is situated in City Center area. still the workforce will be quite large by the industry standards. Basically BSNL city center works i n departmental approaches or functions. This office is under taking of Bhopal office. Although in coming years the retirement profile of the workforce is very f ast and around 25% of existing workforce will retire by 2010. April 01.holding Government employee status thus having little commitment to the organisa tion. Quality of the workfor ce will also remain an issue. This office are works various areas like Marketing. func tions of departments and field officer works. 8 . GM delegates our some duties to DGM. These posts are highly responsible because DGM is the main p erson of the department and DGM gives various approvals of works.

Vision • To become the largest telecom Service Provider. To Provide world class telecom infrastructure in its area of operation and to contribute to the growth. Expansion o f Cellular Mobile Telephone to all towns. Provision of telephone connections on demand in all the villages of M.P. Expansion of new services like Internet. To upgrade the quality of telecom service to international level. by providing a large number of Local and NSD/ ISD Public Call Offices (PCOs) so as to reach out to the masses. Plantation of Trees to make environment Clean & Green. Mission • • To provide world class State-of-art technology telecom services to its customers on demand at competitive prices. To open more Customer Service Centers and upgrade the existing Customer Service Centers for better and friendly Customer care. Internet Telephony. control and operation of the telecom netwo rk with the following aims and objective • • • • • • • • • • • • • To build a high degree of idence by sustaining quality and reliability in service. Modernize PSTN network by making RSUs & AN-RAX. 9 . Video Conferencing. Broadband etc. Int elligent Network. To raise necessary financial resources for its developmental needs. To i ncrease accessibility of services. To open Internet Kiosks (Cafe's) at al l Block Head Quarters. Objective MP Telecom looks over the management. P opularize Broadband Services and to be on-demand in the whole State. ISDN. To improve the quality of present services being given to the subscribers.

It is the largest telecommunication company in India and the si xth largest in the world.Q.Y. Barakhamba Ro ad. o f Villages(Inhabited) 2 1.910 lakh (P.352. the manageme nt based on physical verification of fixed assets and inventory and reconciliati on of various heads of assets and liabilities in the subsidiary and general ledg ers which has resulted into increase/decrease in the following assets and liabil ities taken over as on 01st October 2000 amounting to net reduction in the asset s of Rs. Its headquarters are at Statesman House. General Information No. 6. 5.Fact sheets The Company Bharat Sanchar Nigam Limited (known as BSNL) is a public sector communications c ompany in India.Rs. all assets and liabilities in respect of business carried on by DTS and D TO were transferred to the Company with effect from 01st October 2000 at a provi sional value of Rs.881 6 7 1221 1108 10 .000 lakh and up to previous financial year BSNL has id entified net assets of Rs. 25.629. of Tehsil Block H. . of Revenue District Population No. During the current financial year. Total Villages No. New Delhi. 6.028 lakh against it.300. It has the status of Mini-ratana .452 lakh): In pursuance of the Memorandum of Understanding dated 30th September 2000 executed between Government of India and BSNL.a status assigned to reputed P ublic Sector companies in India.

Th is is proactive strategy to capture all revenues due for the services provided. Revenue maximization strategies will have two components. Presently.2100 crores for BSNL. which are disintegrated and provide only basic solutions.Revenues Strategies The telecom sector is the most competitive sector post liberalization. The industr y standard for revenue leakage is about 3 to 7% percent of revenue. one internal to t he organization and the other external. BSNL generates bills through different softwares across the zones of operation. This would require huge investment but the return would more than commensurate. which in mon ey terms translates to about Rs. organizational structure etc. The internal aspect would involve an ini tiative for change of process. BSNL a s part of the transition has to adopt both cost reduction and revenue enhancemen t measures. In this context. technology. Therefore the focus should be on immediate implementation of CDR based billing. This has resulted in a movement from growth based business model that emphasized growth i n numbers to profit-based model where the success is measured by margins. which would directly impact profitability. Therefore plugging revenue leakages is just the first and most obvious part of a Revenue Assurance initiat ive. The software should be scalable and be able to incorporate all the next generati on value added services. revenue assurance is the key to improving the bottom line for BSNL. It is evident that there is a declining trend in basic services and there is stagnation in cellular reven ues. Formulation of approp riate marketing strategies – 11 . The implementation of CDR based system will also genera te the following benefits: Plugging of leakage of revenue. The key concerns for BSNL for effective revenue realization are – The delay i n customer billing after activation Time lag between calls generated and billed Scope of fraud Non-availability of uniform database.

Gyasi Ram Organisation Functional Structure of BSNL Gwalior Circle SBP Department 12 . K. Vijay Dixit Mr. R.N. Chandrshekhar Sr. Hinduja GM Telecom District Mr. Prashant Trivedi Mr. S. Prashant Trivedi Deputy General Manager (DGM) (Marketing. Ram Sadal AO Pay Mr. Account Officer Mr. Yogik Section Supervisor Mr. Bahdoriya AO Mob. SC Jain CO Strategic Business Plans (COSBP) AO SBP Mr. Planning & Admin) DGM (Operation & Management) DGM (Finance) Mr. Tyagi Chief Accounting Officer TR (COTR) Account officer TR 1st Mr. Manoj Yadav AO Telecom Revenue 2nd Mr.S.S. D. S. Naagar AO Cash Mr. Mr. Ram Avatar Jr. Trunk Supervisor Mr.Management Profile Chief General Manager (CGM) Mr. Duwedi Peon Mr.




c) In terms of the arrangement between Department of Teleco mmunications (“DoT”) and the Company. Prepaid Calling Cards. f) Wherever there is uncertainty in realization of income. recharge coupons of Mobile. 1956 (the “Act”). a) Revenue for all services is recogni zed when earned and are realizable at the time of billing. debts outstanding for more than two years and for debts due for less than 2 years. d) Sale proceeds of scrap arising from maintenance and projec t works are taken into miscellaneous income in the year of sale.. b) Installation Charges recovered from subscribers at the time of new telephone connections are recognized as income in the first year of the billing. Unbilled revenues fro m the billing date to the end of the year are recorded as accrued revenue during the period in which the services are provided.Accounting Policies Basis of Preparation of Financial Statements The financial statements of Bharat Sanchar Nigam Limited (the “Company” or “BSNL”) are p repared under the historical cost convention adopting the accrual method of acco unting in accordance with Indian Generally Accepted Accounting Principles Compan ies Act. such as liquidated damages. e) Income from SIMs. and in accordance with the provisions of the Revenue Recognition Income from services is accounted for on accrual basis and in conformity with Ac counting Standard – 9 of ICAI. Accordingly. claims on Government Departments & local authorities etc. 16 . Provision is made in respect of bills considered to be disputed (by the management). t hese are recognized on collection basis. the charges for telecommunication services and other infrastructural services provided by BSNL to DoT are neither being billed nor provided for. to the extent considered necessary by the management. and Prepaid internet co nnection cards are treated as income of the year in which the payment is receive d since the extent of use of these cards within the financial year could not be ascertained.

O. g) Intangible assets are stated at cost of acquiri ng the same less accumulated depreciation / amortization. in the opinion of the management. instruments and rehabilitation wo rks is capitalized if. f) Cables are capitalized as and when ready for c onnection to the main system. opera tion and maintenance of Village Public Telephones (VPTs) and Rural Household Con nections (RDELs) receivable from U. being not material. The Subscriber Installation is depreciated over the useful life of 5 year s on Written Down Value method. h) Other income by way of interest on loans to employees. is debited to CWIP. are capitalized as and when an exchange i s commissioned and put to use. c) Assets are capitalized to the extent compl etion certificates have been obtained. Cost includes directly re lated establishment and other expenses including employee remuneration and benef its. directly identifiable to the construction or creation of the assets. transmission equip ments and air conditioning plants etc. it results in enhanceme nt of revenue generating capacity. 1956 except for Subscriber Install ation. wherever applicable. Fixed Assets a) Fixed assets are carried at cost less depreciation.S. d) The cost of store s and materials at the time of issue to a project. security deposit with Government Departments and local authorities. Depreciation/Amortization Depreciation is provided based on the Written Down Value method at the rates pre scribed in Schedule XIV to the Companies Act. b) Exp enditure on replacement of assets. are accounted for on collection. e) Appara tus and plants principally consisting of telephone exchanges. 17 .g) The claims on account of reimbursement for provision of infrastructure. fund are accounted for as revenue on acc ount of the fact that the claim for infrastructure cannot be credited to the con cerned asset account since the claim amount could not be segregated asset wise. equipments.

The depreciation on machinery & tools used bo th for project and maintenance work is charged to profit and loss account instea d of capitalization. 20 years) and standalone computer softw are applications are amortized over the license period subject to maximum of 10 years as per straight line method. which are impaired by disuse or obsolescence.000 are depreciated fully in the year of purchase. All telephone exchange buildings.000 are depreciated fully in the year of construction. on the date of payment or receipt as the ca se may be. Accordingly depreciation is charged uniformly . b) All Foreign Currency Liabilities and monetary assets are stated at the 18 . Inventories Inventories are valued at cost or net realizable value as the case may be . obsolete/non moving inventori es are valued at net realizable value. 5.e.cost ascertained generally on weighted average method. if such diminution is of a permanent nature. after providing for any diminution in value. administrative offices an d captive consumption assembling premises/workshops are considered as normal bui lding and not as factory building. Foreign Currency Transactions a) Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction i. due to the difference between their net carrying cost and the net realizable value. Intangible assets such as Entry License Fee for Telecom Service operations are amortized over the license period (i. are segregated from the co ncerned assets category and shown as ‘Decommissioned Assets’ and provision made for the loss.e.Assets costing up to Rs.00. Investments Long-term investments are carried at cost. 2. Similarly. partition works costing up to Rs. Impairment of Assets Assets. if any.

and the amount has been reliably estimated. Provisions Provisions are recognized when the Company has a present obligation as a result of past events. Extraordinary Items Extra-ordinary items of income and expenditure. as covered by AS – 5. Taxes on Income Taxes on Income for the current period are determined on the basis of taxable in come and tax credits computed in accordance with the provisions of the Income Ta x Act. 19 . In accordance with the AS-22. it is more likely than not that an outflow of resources will be required to settle the obligation. are disclose d separately. Manufacturing Expenses Expenses incurred at Factory units are allocated to the cost of the manufactured products. 5 lakh are only considered for being t reated as 'prior period items'. Prior Period Items Items of Income/expenditure exceeding Rs. Deferred Tax Liability is recognized on the timing differences between accounting income and the taxable income for t he period taking into consideration the contents of Accounting Standard Interpre tations 3 and quantified using the tax rates in force or substantively enacted a s on the Balance Sheet date. 1961. Deferred Tax Assets are recognized and carried forw ard to the extent there is a virtual certainty that such deferred tax assets can be rate prevailing as at the date of Balance Sheet and the difference take n to Profit and Loss Accounts as Exchange Fluctuation Loss or Gain.

which relates to the Company. though contingent.Contingent Liabilities Liabilities. are provided for if there are reasonable chances of maturing such liabilities as per management. are disclosed by way of note s. The manufactur ing activities have not been treated as a separate segment since such activities are essentially carried on as support service to other segments. Segment Asset s and Liabilities include those directly identifiable with the respective segmen ts. Un-allocable corporate assets and liabilities represent the assets and liabi lities that relate to the Company as a whole and not allocable to any segment 20 . Income/expense. not acknowledged as debts. Other contingent liabilities. The following specific accounting policies have been followed for segment reporting: Segment R evenue includes service income and other income directly identifiable with/alloc able to the segment. Earning Per Share Earning Per Share ("EPS") comprises the Net Profit after tax (excluding extraord inary income net of tax). as a whole an d not allocable to individual business segment is included in “Un-allocable Corpor ate Income/expense respectively”. Expenses that are directly identifiable with/all ocable to segments are considered for determining Segment Results. Segment Reporting The primary segment consists of ‘basic’ and ‘cellular’ services provided. b arring frivolous claims. The number of shares used in computing Basic & Diluted EPS is the weighted average number of shares outstanding during the year.

the considerations which weighed with it while talking the pr ocurement decision. by his own officer and by subordinates disbursing officers. Every officer should also enforce financial order and strict economy at every step and see that all relevant financial rules and regulations are observed. The amount of allowances granted to meet expenditure of a particular type shou ld be so regulated that the allowances are not on the whole a source of profit t o the recipients. The responsibility is not discharged merely by the selection of the chea pest offer. The expenditure should be prima-facie more that the occasi on demands. No authority should exercise its powers of sanctioning expenditur e to pass an order which be directly or indirectly to its own advantages. or b. The responsibility and accountability of every authority de legated with financial powers to procure any item or service on Government accou nt is total and indivisible. Among the principles on which emphasis is generally laid are the following: 1. Exp enditure from pubic moneys should not be incurred for benefit of a person or sec tion of the people unlessa. 21 . 3. Whenever called for. 6. a claim for the amount could be enforce in a Court o f Law. the expenditure is in pursuance of a recognised policy or custom. 5 . Every officer is expecte d to exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of expenditure of his own money. 4. 7. 2. the concerned authority must place on record in precise terms.Policy of Finance Standards of Financial Proprieties Ever officer incurring or authorizing expendi ture from public funds should be guided by high standards of financial propriety . Government expects that the authority a concerned w ill have the public interest uppermost in its mind while making a procurement de cision.

833.93 -1. 008 6.833. 656 12.21 11. 525 29.72 -0.2 80 6.910 lakh (P.00 2. 086 6.1 58 29. 2008 5. 283 10.834.4 48 2. 921 503. 9 54 391.910) 71 0.6 66 10.45 2.690 52 71 -0. 2007 5.02 -0. 112 188.10 0.4 30 39. 647 682.4 Comparative study between years 008-2007: During the current financial year.52 -2.6 97 502.834.352.9 54 up to march 31.417.1 38 6.02 0.452 lakh): Figures in Lakhs of Rupees Percentage Change (%) Particulars Assets Fixed Assets Capital WIP Inventory Sundry Debtors Advance to contactors Deposit with Electricity Board/other Total A Liabilities Customer Dep osits Earnest Money Deposits Security Deposit from Contractors/ Suppliers Workin g Expense Liability as on 1st October 2000 Contractors Bills payable as on 1st O ctober 2000 Net Assets taken over by the Company Total B up to march 31.383 272 (5.7 04 12. 454 38. .001 2. 25 . 740 39.048 (367) (355) 4.5.49 0.346. 448 2. the management based on physical verification of fixed assets and inventory and reconciliation of various heads of assets and liabilities in the subsidiary and general ledgers which has resulted into incre ase/decrease in the following assets and liabilities taken over as on 01st Octob er 2000 amounting to net reduction in the assets of Rs.1.0 99 42.416.6 31 188.6 81 684.Rs.Y.25 0. 02 5 393.001 22 .1 18 6.02 5 Absolute change Rs.224) (481) 34 1. 028 6.09 0. (1.

06%. The current liabilities have increased by Rs. 1261 lakh and a dvance of contractor not increased on the other hand there has been an increase in inventories amount Rs.e. The overall financial position of the company is satisfactory. Current assets have increased by Rs.Interpretation of Comparative Balance Sheet The comparative balance sheet of the company reveals that during 2008 there has been on increase in final assets of Rs.e. 4383 lakh and contractor bi ll pay has increased by Rs 272 lakh. 1224 lakh i. 23 . This further confirms that the company has revised long t erm finances. 0.02% while long term lia bilities to other side have relative increase by Rs. This fact depicts the policy of the company is to purchase fixed assets from the long-term sources of finance there by not affect the working capital. 34 lakh. 0. 4582 lakh i.

• • Poor IT penetration within organization Poor knowledge Management 24 .5 SWOT Analysis: Strengths: • • • • • • • • • • Pan-India reach Experienced telecom service provider Total telecom service provi der Huge Resources (financial & technical pool) Huge customer base Most trusted telecom brand Transparency in billing Easy deployment of new services Copper in last mile can be used for easy broadband deployment Huge Optical Fibre network a nd associated bandwidth Weaknesses: • • • • • • • • • • • Non-optimization of network capabilities Poor marketing strategy Bureaucratic or ganizational set up Inflexibility in mindset (DOT period legacies) Limited numbe r of value added services Poor franchisee network Legacy of poor service image H uge and aged manpower Procedural delays Lack of strategic alliances Problems ass ociated with incumbency like outdated technologies. s ocial obligations. unproductive rural assets. political interference.1.

Opportunities • • • • • • • • • • • Tremendous market growing at 20 lac customers per month Untapped broadband servi ces Untouched international market Can capitalize on public sector image to grab government’s ICT initiatives ITEB service markets Diversification of business to turn-key projects Leveraging the brand image to source funds Almost un-invaded V SAT market Fuller utilization of slack resources Can make a kill through deep pe netration and low cost advantage Broaden market expected from convergence of bro adcasting. telecom and entertainment industry Threats • • • • • • • • • Competition from private operators Keeping pace with fast technological changes Market maturity in basic telephone segment Manpower churning Multinational eyein g Indian telecom market Private operators demand for sharing last mile Decreasin g per line revenues due to competitive pricing Private operators demand to do aw ay with ADC can seriously effect revenues Populist policies of government like “On eIndia” rates 25 .

Each department presences a section supervisor this SS will p rovide various data of relative department and give opportunity to handling the working process and resolve our doubts. During the department we have to know about to departmental works by explaining the working process of a particular departm ent. This officer is provide a huge working knowledge of our department. Research Design: The research design of this project is exploratory. Our Team moved various departments like SBP.Statement of Problem: The research is carried on in a proper planned and systematic manner. 26 . Pay and Cash and meet Accounti ng Officer of each department. The resear ch was particularly based departmental research. Though each research study h as its own specific purpose but the research design of this project on BSNL is e xploratory in nature as the objective is the development of the hypothesis rathe r than their testing. We have to move to various depa rtment and meet people which include their names and contact numbers given by BS NL training and Planning department.

fin dings and suggestions. the methodology used in the project is as follows: Defining the objective s of the study Framing of questionnaire keeping objectives in mind (considering the objectives) Feedback from the employees Analysis of feedback Conclusion.Methodology Every project work is based on certain methodology. collecting. org anizing & evaluating data. which is a way to systematic ally solve the problem or attain its objectives. 27 .” Accord ingly. It is a very important guidelin e and lead to completion of any project work through observation. making deductions & researching to conclusions. “Research Methodology comprises of defining & redefining problems. data collectio n and data analysis. According to Clifford Woody.

This research methodology also includes: Familiarization with the concept of finance and its various merits. Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensiv e approximation of the truth. As the name implies. Primary data 2. research work needed to be designed i n a proper way. the company manuals and websites of company. Sources of Data Collection: Research will be based on two sources: 1. the sample is selected becaus e they are convenient Selection of Sample Size: For the survey of departments. internet.c om.www. 2) Secondary Data: Secondary data will consist of different literatures like books which are publis hed.Sampling Technique Used: This research has used convenience sampling technique.bsnl. Conclusions based on findings. articles. In order to reach relevant conclusion. Thorough study of the info rmation collected. demerits. Statistical Tools Used The main statistical tools used for the collection and analyses of data in this project are: Pie Charts Bar Diagrams Line Charts 28 . Secondary data 1) Primary Data: Survey: Primary data was collected by departmental survey for BSNL.

has to make 29 . As the fin ancial statements are prepared on the basis of a going concern. and personal judgments etc. Due to the following unavoidable and uncontrollable factors the factors.Limitations of Study Financial analysis is a powerful mechanism of determining financial strengths an d weaknesses of a firm but. We has also careful about the impact of price level chances. Changes in accounting procedure by a firm may often make financial analysis misleading. Chances of some biasness could not be eliminated. the analysis is based on the information available i n the financial statements. Some of the important Limitations of fin ancial analysis are however. A majority of respondents show lack of cooperation and are biased towards their own opinions. Analysis is only a means and not an end in itself. windows-dressing of financial statements. the result might not be accurate. summed up as below: It is only a study of interim r eports. It does not consider changes in price level. We interpretation and draw own conclusion Different people may interpret the same analysis in different ways. Some of the problems faced while conducting the survey ar e as follows: Time and cost constraints were also there. it does not give exact position. Thus accounting concepts and conventions cause a serious limita tion to financials analysis. Financial analysis is based upon only monetary information and non-monet ary factors are ignored. changes in accounting policie s of BSNL. accounting concepts and conventions.

However. funds flow and cash flow analysis. 30 . schedule of cha nge in working capital. also know as analysis and interpretation of financial statement. The an alysis and interpretation of financial analysis statements is essential to bring out the mystery behind the figure in financial statements. the information provided in t he financial statement is of immense use in making decision through analysis and interpretation of financial statements. common-size statement. They play a dominant role in setting the framework of managerial decisions. cost-volume-profit an alysis and ratio analysis. ability to pay intere st and maturities and profitability of a sound dividend policy. There are various methods used in analyzing financial statements. The term financial analysis’.1 Introduction Financial statements are prepared primarily for decision making. “Financial analysis is a process of evaluating the relationsh ip between component parts of a financial statement to obtain a better understan ding of a firm’s position and performances” According to Matclf and Titard “Financial statement analysis is largely a study of relationship among the various financia l factors in a business as disclosed by single set-of statements and a study of the trend of these factors as shown in a series of statement”.3. But the informat ion provided in the financial statement is not an end in itself as no managerial can be drawn from these statement alone. Financial statement is an attempt to determine the significance and meaning of the financial stateme nt data so the forecast may be made of the future earning. profit and loss account and o ther operative data. According to Myers The term ‘financial statement analysis’ include both ‘analysis’ and ‘interpretation’. refers to the process of determining fin ancial strengths and weaknesses of the firm of the firm by establishing strategi c relationship between the item the balance sheet. Financial analysis is ‘the process of ide ntifying the financial strengths and weaknesses of the firm by properly establis hing relationship between the item of the balance sheet and the profit and loss account’. trend analysis. such a s comparative statements.

Howev er. potential creditors. and (ii) the method of operation followed in the analysis or the modus operandi of analysis. External Analysis: This analysis is done by outsiders who do not have access to the detailed internal accounting records of the business firm. government agencies. For financial anal ysis. thus serves only a limited purpose. External analysis. Such an analysis can. this external party to the firm depends almost entirely on the published f inancial statement. b.Types of Financial Analysis I can classify various types of financial analysis into different categories dep ending upon (i) the material used. the changes in the government regulations requiring business firm makes avai lable more detailed information to the public through audited accounts have cons iderably improved the position of the external analysis. (i) On the basis of material used: According to material used. be performed by executive and emplo yees of the organization as well as government agencies which have statutory pow ers vested in them. Internal Analysis: The analysis conducted by persons who have access to the internal accounting records of a business firm is known as interna l analysis. potential investors. Financial 31 . credit agencies and the general public. financial analysis can be of two types (a) external analysis and (b) internal analysis. a. therefore. creditors. These o utsiders include investors.

Comparative statement and trend percentages are two tools employed in horizontal analysis. A base year chosen as begin ning point. Common-size financial analysis statement and financial ratio are the tools employed in vertical analysis. Thus figure for this type of anal ysis are presented horizontally over a number of columns. The horizontal analysis makes it possible to focus attention on items that have changed signif icantly during the period under review. However. b. Horizontal Analysis: Horizontal analysis refers to the comparison of financial data of a company for several years. it may be used along with horizontal analysis to make it more effect ive and meaningful. (ii) On the basis of modus operandi: According to the method of operation followed in the analysis financial can also be of two types: (a) horizontal anal ysis (b) vertical analysis.analysis for managerial purpose is the internal type of analysis that can be eff ected depending upon the purpose to be achieved. Vertical Analysis: Vertical analysis refers to the study of relationship of the various items in the financial statements of one accounting period. Comparison of an item over several perio ds with a base year may show a trend developing. a. Since vertical analysis considers data for one t ime period only. It is also knows as ‘Static Ana lysis’. it is not conducive to a proper analysis of financial statement s. This type of analysis is also called ‘Dynamic Analysis’ as it is based o n the data from year to year rather than on data of any one year. In th is types of analysis the figure from financial statement of a year are compared with a base selected from the same year’s statement. 32 . The figures of the var ious years are compared with standard or base years.

If the aim is to find out the earning capacity of the enterprise than analysis of income s tatement will be undertaken. 4. funds flow etc. 3. A relationship is established among financial among financial statements with the help tools and techniques of analysis such as ratio. common size. trends. breaking done of individuals components of statements according to nature.Procedure of Financial Statements There are three steps involved in the analysis of financial statements. He should know the plans and policies of the management so that he may be abl e to find out whether these plans properly executed or not. On the other hand. the first step involv es selection of information (data) relevant to the purpose of analysis of financ ial statements. The extent of ana lysis should be determined so that the sphere of work may be decided. If financial position is to be s tudied then balance sheet analysis will be necessary. 2. 5. It will involve the gr ouping of similar data under same heads. The second step involved is the methodical classification of the data and the third step include drawing and conclusions. The information is interpreted in a simple and understandable way. The financial data give n in the statement should be re-organized and rearranged. The analysis should acquaint himself with the principal and postulates of accountin g. 6. The conclusions drawn from interpretation are presented to the management in the form if reports. The data is reduced to a standard form. 33 . The significance and utility of financial data is explained for helping decisio ntalking. The following procedur e is adopted for the analysis and interpretation of financial statements: 1. These ar e: (i) selection (ii) classification (iii) interpretation.

total liabilities and total sales. Common size Statement: The common size statements balance sheet statements are shown in analytical percentages. A number of methods or devi ces are used to study the relationship between different statements. Cash flow Statement: Cash flow statement is a statement which describes the inflow (sources) and outflow (uses) of cash and cash equivalent in an enterprise during a specified period of time. Trend analysis: This method determines the direction upwards and involves the computation of the percentage relationship that each statement item bears to the same item in base year. Total assets are taken as 100 and different assets are expressed as a percentage of the total. An effort i s made to use those devices which clearly analysis position of the enterprise. The figures are shown as percentages of tot al assets. T he following methods of analysis are generally used: • • • • • Comparative Statement Trend analysis Common Size Statement Cash Flow Analysis Ratio analysis Comparative 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.Methods or Devices of Financial Analysis The analysis and interpretation of financial statements is used to determine the financial position and result of operation as well. 34 . similarly various l iabilities are taken as a part of total liabilities.

Ratio Analysis: Ratio is a simple arithmetical expression of the relationship of one number to another. 35 . It may be defined as the indicated quotient of two mathematic al expressions.

843 1.96 -5.605 9.00 15.479) 6.056.922 916.511 5.192.444 6.02 4.847 558.862 23.837) (91.321 2.793.765 592.39 -36.777 3.008) 5.723 (38.788 606.231 9.06 8.31 17 .800 20.000 322.887 131.3.023 0 1.562.773 12.858 2.444.864.667.987. In Lakh) Increase/ Decrease (Rs.373.702 (6.974 5.551 4.539 30. Loans and Advances Inventories Sundry Debtors Cash and Bank Balances Other Current assets -Accrued Interest Loans and Advances Less : Current Liabilities and Provisions Current Liabilities Provision Net Current A ssets Inter/Intra Circle Remittance TOTAL 36 .158 137.48 8.694 20.463 163.053 9.765 (215.296 114.28 0.374.282.006 546.000 7.60 -2.734 66.000 242.068 9.78 -93.109 3.58 3.431 5.802 1.860 6.541) 9.459.055 71.05 5.011 105.00 32.1 Comparative Balance Sheet for the year ended 2007 and 2008 Particulars SOURCES OF FUNDS Shareholder's Funds Capital Reserves and Surplus Loans Funds Un secured Loans Deferred Tax liability TOTAL APPLICATION OF FUNDS Fixed Assets Gro ss block Less: Depreciation Net Block Capital Working-in-Progress Decommissioned Assets as at 31 March 2007 (Rs.159 (11.736.562 389 5.182.332 267.346.27 20.457.390 256.96 -0.2 Comparative Statement of BSNL year 2007 & 2008 Table 7.373.825 118.894) 79.463 (323.919 514.148 714.97 11. Assets.869 91.441 5.788 1.09 -5.008) -38.823 6. In Lakh) as at 31 March 2008 (Rs.448 (91.515) 309.2 82. 745.739.366 124.250.849 266.066 3.97 Investments Current.805.773 338.055) (319.59 554.87 5.901 6.62 4.20 8.010 431.687 744.469.000 7. In Lakh) Increase/ Decrease (Percentages) 1.17 -0.

Figure 3.1: Comparative Balance Sheet chart Figure 3.2 Comparative Balance Sheet in % Chart 37 .

32. Interpretation of Comparative Balance Sheet The comparative balance sheet of the company reveals that during 2008 there has been on decrease in fixed assets of Rs. Third column is used to show increases in figures. 2.e. 79. 38 . investments not increased on the other hand there has been an increase in inventories amount Rs.332 lakh i.e. 163. The overall financial pos ition of the company is satisfactory.28% while long term liabilities to outsiders have relatively decrease by Rs.e. -5. The curr ent liabilities have increased by Rs. 319894 lakh i. This fact depicts the policy of the company is to not purchase fixed assets from the long-term sources of finance there by not affect the working capital.e. Curre nt assets have increased by Rs. The Fourth col umn may be added for giving percentages of increase or decrease. -0.97. 7.60%. 91008 lakh i. 3. 163.84 %.Procedure of Comparative Balance Sheet 1.332 lakh and cash and bank balances also inc reased Rs.27%. 309.159 lakh i.e. 8.862 i. This further con firms that the company has revised long term finances. The Comparative balance sheet has two columns for the data of original balanc e sheet.

3.3 Trend Analysis (Profit of BSNL) Table 3.2 Years 2005 2006 2007 2008 Profit before Tax Amount (Rs.) in Percentages Lakh 792 ,008.00 100.00 844,698.00 815,381.00 445,155.00 106.65 102.95 56.21 2005 2006 2007 Figure 3.3: Trend Profit chart Procedure of Calculation Trends 4. One year is taken as a base: year 2005 taken as a base year 5. The figure of base year are taken 100 6. Trend percentages are calculated in relation to base year. Figure in other year is less than the figure in base year trend percentage will be less than 100 and it will be more than 100 if figure is more than base year figure. Each year’s figure is dived by the base year’s figure. Interpretation Profit before tax has substantially decreased. In four year period it has more t han doubled. The comparative decrease in profit is much lower in 2008 as compare d to 2006 and 2007. The expansion of the firm is not possible. The overall perfo rmance of the concern is not good on the basis of profit. 39

3.4 Common Size Balance Sheet of BSNL year 2007 and 2008 Table 3.3 Common Size Balance Sheet for the year ended 2007 and 2008 Particulars as at 31 March 2007 (Rs. In Lakh) % as at 31 March 2008 (Rs. In Lakh) % SOURCES OF FUNDS Shareholder's Funds Capital Reserves and Surplus Loans Funds Un secured Loans Deferred Tax liability TOTAL APPLICATION OF FUNDS Fixed Assets Gro ss block Less: Depreciation Net Block Capital Working-in-Progress Decommissioned Assets 1,250,000 7,444,802 13.34 79.42 1,250,000 7,562,825 13.47 81.47 554,366 124,605 9,373,773 5.91 1.33 100.00 338,887 131,053 9,282,765 3.65 1.41 100.00 11,864,901 6,071,511 5,793,390 256,860 6,444 6,056,694 20,000 242,847 558,066 3, 745,296 114,148 714,431 5,374,788 1,667,919 514,858 2,182,777 3,192,011 105,068 9,373,773 126.58 64.77 61.80 2.74 0.07 64.61 0.21 2.59 5.95 39.96 1.22 7.62 57.34 17.79 5. 49 23.29 34.05 1.12 100.00 12,457,823 6,987,974 5,469,849 266,562 389 5,736,800 20,000 322,006 546,551 4,05 5,158 137,687 744,441 5,805,843 1,739,788 606,321 2,346,109 3,459,734 66,231 9,2 82,765 134.20 75.28 58.92 2.87 0.00 61.80 0.22 3.47 5.89 43.68 1.48 8.02 62.54 18.74 6. 53 25.27 37.27 0.71 100.00 Investments Current, Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Balances Other Current assets -Accrued Interest Loans and Advances Less : Current Liabilities and Provisions Current Liabilities Provision Net Current A ssets Inter/Intra Circle Remittance TOTAL 40

Figure 3.4 Common size Balance Sheet chart Procedure of Common-Size Balance Sheet 1. The total assets are taken as 100 and different assets are expressed as a per centages of the total 2. Similarly, various liabilities are taken as a part of t otal liabilities. 3. This statement is also known as component percentages or 10 0 percent statement because every individual item is stated as a percentage of t he total 100. The short comings in comparative statement and trend percentage wh ere changes in items could not be compared with the totals have been covered up. 41

In 2007 fixed account for 64.65% of total instead of using long-term funds. In the present day e conomic world generally. 25. In the year 2008 BSNL is suffering more form working capital posit ion than the second than the second year because current assets are more then cu rrent liabilities i.27% and this percentage is 23. In this contex t both years have good finical planning but year 2008 is more financed on tradit ional lines.80 whereas long term funds account for 3. Both years are suffering from adequacy of working capital. companies depend more on outsiders’ funds. Out of total reserve 81.29% in the 2007.91% of total funds.47% of the funds are proprietor’s funds. In year 2008 fixed account for 61.Interpretation An analysis of patter of financing of both the years shows that year 2007 is mor e traditionally financed as compared to year 2008. The BSNL has depended more on its own reserves and surplus as is shown by balance sheet. A close look at the balance sheet shows that investments in fixed asset have been not f inanced from working capital in both years. Both the year BSNL is not facing working capi tal problem.61% of the total assets while long-term funds account for 5. 42 . In year 2007 funds are 79.42% which s hows that this company has depend more upon outsider funds.e. The perc entage of current assets is more than the percentage of current liabilities in b oth the year.

3. in Lakh) Year ended 31st March 2007 (Rs.5 Cash Flow Statement of BSNL Table 3.Prior Period item other than depreciation Net cash from operating activities B . in Lakh) 445155 969610 5106 86254 (403324) (2002) 70926 47899 (80829) (8565) 147595 91493 1 8288 77941 (281123) (800) 35340 127875 (21676) 1276 102518 815381 937669 21231 108980 (173340) (851) 47059 159518 (19133) 19320 123646 844698 962486 54293 2929 (80052) (618) (73437) 26403 (39532) (855) 229227 792008 832670 1277825 964570 1779951 1224099 2068797 1080844 1872852 38837 (62838) (54335) 65923 (12413) 1265412 (12229) (131465) (67776) (685) (212155) 1567796 1663 (94637) (170397) 145474 (117897) 1950900 (4202) (77517) (59867) (44174) (185760) 1687092 . Cash flow from Investing activities: Inventories Purchased Purchase of fixed a ssets Capital Work in Progress Proceeds from Sale of fixed assets Interest Recei ved Net cash used in investing activities Year ended 31st March 2008 (Rs. in Lakh) Year ended 31st March 2005 (Rs. Cash flow from operating activities: Net (loss)/profit before tax but after Prior period and Extraordinary items Adjustments for: Depreciation Pr ior period depreciation Interest/Finance charges Interest Income Loss/(Profit) o n Fixed Assets sold Debts / Advances Written off Provision for Bad and Doubtful Debts Excess provision written back Prior Period item other than depreciation Ot her Provision Operating profit before working capital changes Adjustments for ch anges in working capital : .4 BHARAT SANCHAR NIGAM LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2 008 PARTICULARS A. in Lakh) Year ended 31st March 2006 (Rs.Other Re ceivables .Inter Circle Remittance .Trade and Other Payables Cash generated from operations -Taxes paid .Sundry Debtors .

(175793) 8565 (167228) 1098184 (152524) (1276) (153800) 1413996 (118971) 38976 (79995) 1870905 (117576) 177444 59868 1746960 (76049) (717309) (9231) 50319 379785 (372485) 24723 (815313) 125505 107795 230602 (326688) (54539) (882441) 78066 84750 124081 (650083) (572) (976301) 125689 133273 70094 (647817) 43 .

5 Net Increase/Decrease in cash and cash equivalents .03.C.2 008 Cash and cash equivalents comprise Cash. Cheques and Drafts (in hand) Balanc es with banks (300000) (1767) (30000) (67500) (16570) (415837) (174027) (77700) (50000) (80000) (18233) (399960) (93696) (108358) (42759) (111174) (3679) (3068) (22614) (31800) (355987) (61161) 309862 687348 864835 1037982 3745298 3057950 2193115 1155133 4055160 3745298 3057950 2193115 2569 4052589 4055158 2704 3742592 3745296 3094 3054854 3057948 179993 2013120 2193113 Figure 3. Cash flow from financing activities: Proceeds from long term borrowings Inter est Paid Interim Dividend Paid Dividend Paid Dividend Distribution Tax Paid Net cash used in financing activities Net Increase/(Decrease) in Cash and Cash Equiv alents Opening Cash and cash equivalents Cash and cash equivalents as at 31.

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Step III.6 Cash flow from various heads Procedure of Cash Flow Statement Cash flow statement is not a substitute of income statement. iii. 45 . Some selected additional dat a to extract the hidden transaction. Step I. i. Calculate the net cash flow from inves ting activities. Step IV. Compute the net increase or decrease in cash and cash equivalents by making a compariso n of these accounting given in the comparative balance sheet. Step II. The basic information requ ired for the preparation of cash flow statements is obtained from the following sources: i. Comparative balance sheets as two points of time. ii. Calculate the net cash floe from financing activities.e. in the be ginning and at the end of accounting period. Income statement of the current acc ounting period or the profit and loss account. Calculate the net cash flow provided operating activities by analysis the profit and loss account balance sheet and additional information.e. i.Figure 3. and a balance sheet. It provides additional information and explain the reasons for changes in cash and cash equivalent. a profit and l oss account.

year 2006 cash Rs. 1870905 lakh.g. 1098184 laks. year 2007 cash from operating Rs.Step V. In this year inves ting money is goes down in comparison year 2006 and interest receiving is goes h igh so net cash using in investing activities goes down in comparison year 2006. Make an aggregate of net cash flow the three activities and ensure that the total net cash flow is equal to the net increase or decrease in cash and cash eq uivalent as calculated in step I. -326688 lakh and year 2008 cash from investing activities Rs. Step VI. year 2006 cash Rs. In 2008 investing activities g oes down because purchase of fixed assets is Rs. 46 . 717309 laks. Repot significant non-cash flow statement e. This activity is shown that the cash flow of operating activities. Interpretation Cash Flow from Operating Activities Operating activities are the principal revenue-producing activities of the enter prise and other activities that are not investing or financing activities. 1413996 lakh and year 2008 cash from operating activities Rs. -647817 in lakh.. The year of 2005 net cash is Rs. Prepare a formal cash flow statement highlighting the net cash flow from operati ng. The year of 2005 net cash is Rs. The o perating activities are calculates 2005 to 2008. Cash Flow from Investing Activities This activity disclose of cash flows arising from investing activities is import ant because the cash flows represent the extent to which expenditures have been made for resources intend to generate future income and cash flow. This operat ing shown cash shown is reduction of cash flow of operating activity. -372485 laks. In 2008 op erating goes down because net profit is goes down in comparison year 2006 and ta x paid is goes high so net cash from operating activities goes down in compariso n year 2006. Step VII. purchase of machinery against is sue of share capital or redemption of debenture in exchanges fro share capital. -650083 lakh. 1746960 in lakh. This calculation shown investing payments. This activity is shown that the cash flow of investing activities. year 2007 cash from inv esting Rs.

year 2007 cash from financing Rs. 3676 lakh. In 2008 financing activities goes upward because taking long te rm borrowing is Rs. This calculation shown inv esting payments. -355987 lakh. year 2006 cash Rs. -399960 lakh and year 2008 cash from financing activities Rs. This activity is shown that the cash flow of financing activities. Overall cash flow net cash and cash equivalent is decrease d in comparison previous year 47 .Cash Flow from Financing Activities This activity disclose of cash flows arising from financing activities is import ant because the claim on future cash flows by providers of funds (both capital a nd borrowings) to the enterprises. 300000 laks comparison year 2006 because in this year borrow ing is Rs. The year of 2005 net cash is Rs. -415837 laks. -61161 in lakh.

Highly dues of intra/inter circle transfer of funds which is lea ve our effect in liabilities side in balance sheet. • • • In year 2006 i s good for BSNL because in this year profit goes 106% on base of year 2005. We saw the graph of cash I analysis the cash p osition are not satisfactory at this time. • In year 2006 to 200 8 cash position is goes decrease. In y ear 2007 is fine for BSNL because in this year profit goes approximately 103% on base of year 2005. The current liabilities will increase 25%. In year 2008 is underprivileged for BSNL because in this yea r profit will be only 56. Departmental process so long. Prope r computerizing of department are not satisfactory. 48 . In this year BSNL suffer paym ents liabilities. Coordination’s of departments are not satisfactory. these assets will give effect in profit of BSNL. capital problems. Analysis: From the calculation it was found that amongst year 2006 to 2008. Revenue s policies of BSNL are not properly implied.Findings According to my survey and calculation the noteworthy points are: • • • • • • • • Mostly year NL suffers in losses. Qualification of employees is not match his posts. BSNL is a 6th largest telecom company in the world but at this time BSNL suffers cash.21% on base of year 2005. BSNL build fixed assets.

Conclusion After overhauling the all situation that boosted a number of Pvt. • • BSNL facing of over capitalization problem. Each month large number of employees wil l retired by BSNL. Companies asso ciated with multinational in the Telecom Sector to give be relevant competition to the other established company in private sector. we come at the conclusion th at • • • There are very cut tough competitions among the private telecom companies on the level of new trend of advertising to silence a major part of Customers. Th is taxes leave over effect earning per shares (EPS). Some employees working faith full for BSNL but re tirement of BSNL employees is too much. It has brought about greater choic e to the customers. This organization paid large amount of taxes. BSNL is not left behind in the present race of advertisement. players in the telecom Sector have expanded the product segment to meet the dif ferent level of the requirement like 3G. phone line. Broadband. • • Over all in BSNL facing short of employees and present emplo yees are not working properly. This problem gene rated by decommissioned assets. cable connection in on wire line to provide of the customers. 49 . The entry of more Pvt.

There has a lo t to be recommended. 50 .Suggestions The study has provided with the useful data from the respondents. This policies will provide help generate revenues. Re cruit new qualified employees technical or non technical. Departmental processes so long I sugge st make a short process of work to departmental. Following are the recommendations: • • • • • • • • • • There is a need f er promotion for the investment & services. As the BSNL provides the telecom facility to its customers. It should provide this facility by tie up with the other organizations as well. Launch better plans for according to customers. More returns should be provided on r evenues policies. Working hour will incr ease to employees. Create new accounting or finance policies. Plans will be flexible nature Maintain Communication of each department. These employees are n ot handle computer because they can’t that. BSNL i s computerized but today some department work with papers.

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com • • Annual Reports of BSNL 2006-2008. 58 . Second Ed p. Pa ndey. Departmental Records.Bibliography • • • • Management Accounting Shashi K. Financial Decision Maki ng.bsnl.K.75 Web sites o o www. Research Paper: Financial Analysis Hampton John o www. Gupta & Sharma Financial Management I.