CRITICAL ANALYSIS

At the point when the NTC was conceived, first and foremost strict
budgetary controls were worked out. Hard endeavors were made with
the goal that this recently conceived association may remain upon its
own feet. Very taught and expert administration attempted their best to
produce the budgetary assets with the goal that NTC could work freely.
At the season of foundation of NTC a few credits (liabilities) were
likewise exchanged to NTC alongside the benefits. It was the real test
for the administration to resign the obligation and deal with the
advantages in a productive way so these benefits could create enough
income to make the NTC beneficial.

Financial Analysis
•Ratio Analysis
We will do budgetary Statement investigation of NTC and additionally
level examination. The devices of investigation are money related
proportions.
•Debt to Equity ratio
It means that in year 2014 the profits have increased resulting in low
debt to equity ratio.
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
0.57 0.97 0.65 0.49 0.38

Liquidity Ratios
Such ratios show the ability of an asset to be converted to cash as quickly as
possible.
ratio 2011- 2012- 2013- 2014- 2015-
2012 2013 2014 2015 2016
current 1.34 0.83 0.96 1.46 2.42
quick 1.33 0.83 0.83 1.4 2.41
cash 0.19 0.51 0.54 0.90 1.40
Current Ratio
=
Current assets / Current liabilities Quick Ratio
=
Quick Assets / Current liabilities Cash Ratio
=
Cash + Investments / Current liabilities

Here is a five-year examination of the liquidity position of

NTC. These outcomes portray that over the five years, the
present proportion has been unstable i.e. it has a crisscross
pattern however in the most recent year it is very agreeable. The
speedy proportion reveals to us a smidgen distinctive story.
Over all it has expanded barely from 1.33 to 2.41. Be that as it
may, for two sequential years 2012-2013& 2013-2014 it
remained un-changed i.e.0.83. What's more, the most critical
measure of liquidity i.e. money proportion demonstrates an
amazing increment over the timeframe. This is because of the
expansion in inflows throughout the years.
Activity Ratios
Activity ratios, also known as efficiency or turnover ratio, measures how effectively
the firm is using its assets.
ratio 2011- 2012-13 2013-14 2014-15 2015-
2012 2016
RT 5 2.3 2.2 2.7 1.90
RTD 73days 157 165 132 192

Efficiency of Assets of NTC

We will make an investigation of proficiency of benefits. This
proficiency is measured by figuring the aggregate resource turnover
proportion; this is calculated by partitioning the net deals by add up to
resources.
ratio 2011-12 2012-13 2013-14 2014-15 2015-
2016
Asset turn 0.22 0.17 0.22 0.26 0.27
over

Resources turnover Ratio of NTC is not satisfactory, it implies that its

advantages are not producing enough salary, but rather when we
influence the similar investigation we to come to realize that in year
20015-2016 the pattern is going on positive course. This expansion in
acquiring limit is because of increment in phone income.
PROFITABILITY TESTS OF NTC
We will now quantify the gainfulness of NTC and apply a few tests to find out
whether the outcomes have been enhanced or not to gauge productivity we will
direct after tests.

1. Net revenue

2. Rate of profitability

3. Profit for Equity

ratio 2011-12 2012-13 2013-14 2014-15 2015-
2016
Net 0.45 0.24 0.56 0.92 0.46
margin
Return on 0.10 0.04 0.10 0.08 0.10
investment
Return on 0.26 0.13 0.25 0.16 0.20
equity
Over all net revenue has expanded over the five years from 0.45 to 0.46
,it implies that no change has been brought about to the extent rate of
return in concerned it has indicated decrease. Profit for value likewise
demonstrates a similar pattern it has diminished from 0.26 To 0.20 over
the five years.
INTERPRETATION OF HORIZONTAL & VERTICAL
ANALYSIS
When we look at the figure of income for a long time we come to realize that the
biggest wellspring of income i.e. the lease of M/W circuits demonstrates a declining
pattern i.e. from 82% to 51%. However the phone revenue has been expanded
fundamentally finished the four years. On the off chance that we see the break-up of
incomes of NTC we find out that most noteworthy income comes from the lease of
microwave circuits. Phone Revenue is the largest source of salary. Separate of
incomes in rates is as under: -
account Actual Budget Actual
2014-2015 2015-2016 2015-2016

Telephone 2034.35 2261.35 2271.45

Circuits 551.46 229.93 208.70
Co-location 31.89 51.39 50.48
MSDN 60.61 98.69 85.20
Miscellaneous 19.69 15.37 40.42
International 18.11 231.91 230.06
interconnect 25477 278.24 16,51

TOTAL 2970.88 3166.88 2902.82

Horizontal Analysis
At the point when the even examination of most recent five years is
directed fromfinancial explanations, it plainly demonstrates that capital
stores remain thesame, while long haul credits are diminishing, worker
retirementbenefits are expanding which is a decent sign. NTC exchange
obligations havedecreased because of better money related
administration arrangements. Short terminvestments have expanded in
light of the fact that surplus stores are invested.However, NTC income
and benefit is diminishing because of serious competition,while, money
related charges diminished
Vertical Analysis
From the vertical investigation perspective, plainly offer of
capitalreserves are expanding because of start of advancement ventures.
P&LAccount is expanding in light of the fact that it gathers. Working
settled assetsare expanding. Working costs expanded and benefit
diminished due tocompetition.From the level and vertical investigation it
can be inferred that since NTC is a Govt possess company and the
greater part of its endorsers are Govt.departments and Defense
workplaces, which stay hesitant to pay theirdues and a large number of
NTC receivables result as awful obligations. In any case, itsfinancial
administration is leaving no stone to consult with itssubscribers to
separate their pending duty. Since NTC has restraining infrastructure
torender media transmission offices to all Govt. offices, hence,despite of
every one of these issues, its budgetary proportions are showing
positivesign. In addition, this demonstrate NTC monetary position is
solid and willfurther reinforce in future.