Presented by

Dr. B. CHINNASWAMY
Chief Accounts Officer & Financial Advisor,
BMTC
 ORGANIC VIEW OF BMTC

• Corporate Office
• 5 Operating Divisions

• 37 Depots

• 2 Regional Workshops

• 2 Civil Engineering Units

• Training Institutes
• Hospital and Dispensaries
 BMTC steps in to fill the gap…

… as the sole provider of City public transport with

• 6300 buses
• 46 Lakhs passenger trips/day
• 30% modal split
• 80000 trips & 13 Lakhs KM daily
• BMTC owns the following Infrastructure:
 Man Power : 32771
 Bus Staff Ratio : 5.25
• BMTC has emerged as a demand driven mode of
public transport with an array of initiatives, projects,
and services
 ACCOUNTS MANUAL

• The computerization of accounting activities

started from the day of incorporation i.e.,
15.08.1997
• Procedures laid down in the manual for carrying
out day to day transactions have been
computerized

• BMTC is using Accounts Codification of 6 digits

for head of accounts that helps in classification,
grouping and preparation of final accounts
DEPOT COMPUTERIZATION SYSTEM

• In-house developed DCS modules are in

depots. They are mainly used for

• 1. Traffic & Ticket accounting module

• 2. Inventory module

• 3. Pay roll module

 Profit Plus in the Units

• Divisions are using Profit Plus Software for day to day

accounting transactions
• Units prepare monthly/yearly financial statements and
forward them to the Central Offices for consolidation and
preparing the monthly general ledger
• BMTC Corporate office consolidates the unit TBs –
generate Corporate TB by using Profit Plus Software
• Prepares monthly Working Results-P/L A/c
• Preparation of Annual Budgets
• Calculates vehicle wise monthly depreciation using
Asset Module
 Finalization of Accounts
• As a result of Computerization, BMTC finalizes
the annual accounts well within the time frame
• Section 33 of RTC Act and BMTC Rule No.55
states that the accounts are to be finalized within
6 months from the closure of the accounting year.

• The accounts of 2010-11 was finalized in a record

time and got the Board approval on 31-05-11 and
sent for AG audit.
 Financial Over view
(Rs. in crore)

2011-12
Particulars 2008-09 2009-10 2010-11
R.E.
Revenue 907.50 1012.29 1211.24 1415.58
Misc. income 91.48 77.15 60.58 41.53
Subsidy from GOK 1.65 42.27 57.53 84.82
Total Revenue 1000.63 1131.71 1329.35 1541.93
Kms Covered (in Crore) 40.62 44.17 45.80 46.95
Earning Per KM in paise 2463.15 2561.85 2902.37 3283.85
(EPKM)
Total Expenditure 945.45 1066.59 1279.00 1490.40
Cost Per KM in paise (CPKM) 2327.32 2414.43 2792.44 3174.12
Profit Before Depreciation 152.84 168.54 165.42 186.53
Depreciation 97.66 103.41 115.07 135.00
Net profit 55.18 65.13 50.35 51.53
 Capital Account and Resources
Mobilized
(Rs. in Crore)
CAPITAL RECEIPTS CAPITAL EXPENDITURE
PARTICULARS ACTUAL ACTUAL ACTUAL PARTICULARS ACTUAL ACTUAL ACTUAL
2008-09 2009-10 2010-11 2008-09 2009-10 2010-11
Karnataka Govt. 0.00 0.00 0.25 Land 34.88 6.05 1.76

Term Loan from Buildings &

40.00 110.00 24.00 25.18 38.30 35.49
Commercial Banks Fixtures

Loan from KUIDFC 0.00 119.28 67.88 PME 1.39 1.84 1.13

Internal resources 373.80 244.22 20.90 Motor Buses 298.06 291.39 32.32

Grants towards
66.30 80.15 87.99 Domestic Vehicles 0.27 0.62 0.09
JnNURM

Computers 2.19 0.02 1.11

Infrastructure
118.13 215.43 129.12
under JnNURM
480.10 553.65 201.02 480.10 553.65 201.02
 CAPITAL INVESTED AS AT 31-03-2011
Rs. 1939.00 Crores

Equity GOK

1467.53 Infra Fund from

1600 GOK
1400 Cap.Cont.GOK
1200
1000 Loans
800 313.51
600 Int.Resources
400 104.59 53.25 0.12

200
0
 FIXED ASSETS AS AT 31-03-2011
Rs.1939.00 Crores.

999.90
Land

1000 691.40
Bldgs
800

600 Buses
225.33
400 22.37
PMEs &
200 Computers

0
 NET WORTH (Rs. in Crores)

1071.75

964.49

892.74
810.80

683.14

391.09

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Net worth represents Capital plus Reserves and Surplus less Intangible Assets
How the Rupee is spent –2010-11
Total Income – Rs.1329.35 crore
HSD
Rs.497.59 crore
Employee cost 37%
Rs.459.87 crore
34%
Depreciation
Rs.115.07 crore
9%

Interest M.V.Tax
9.69 crore Rs.66.62 crore
1% 5%

Margin
Rs.50.35 crore Maintenance
4% Rs.86.47 crore
Administration 6%
Hiring of expenditure
Pvt.Vehicles Rs.37.03 crore
Rs.6.66 crore 3%
1%
SUBSIDIES FROM GOVERNMENT
2010-11
(Rs.in Crores)
1.Student Passes 54.35
2.Passes to Freedom Fighters 0.37
3.Passes to Visually challenged 1.10
4.Passes to Physically challenged 0.99
Total 56.81
5.Capital Contribution
by way of infrastructure Grants 0.25
 DEBT MANAGEMENT
• BMTC availing term loans for capital expansion
programmes purely for purchase of buses through
Commercial Banks
• Best possible interest rates
• No upfront fee/ incidental charges are paid
• Timely repayment of loans
• Tenure of fresh loans reduced to 5 years
• Availed loan at meager 6% interest rate from KUIDFC to
contribute Corporation share for Construction of 10
TTMCs with assistance from GOI & GOK.
 BMTC INITIATIVE
– Bangalore - IT capital of India, houses two large
software companies, attracts international & domestic
travelers
– Bangalore International Airport (BIAL) upgraded - to
accommodate a forecasted increase in traffic due to
above
– BIAL situated 40 KM NE from the city centre-
necessitating providing a dedicated airport shuttle
– Airport reflective of the economy - shuttle service to
be comfortable, affordable, reliable and at par,
globally
– Connectivity proved a big challenge for the
Government - especially with the traffic that ensued
on the roads.
 Continued
– BMTC provides more number of Volvo Buses to I.T.
corridors to refrain techies from traveling in their own cars
while earning more traffic revenue from these sectors
– BMTC performs “Bus day” every month to create
awareness among citizens to travel in public transport
thereby reducing air pollution
– BMTC earn 40% of its traffic revenue through issue of
passes like Monthly, Daily, Weekly, Student, Journalists,
Physically & Visually Challenged, Freedom Fighters
– Regular commuters who buy daily passes can have a ID
card and buy the pass at Rs.5/- less per day
– By paying within due date to its suppliers BMTC earns
good amount of Non-traffic revenue in the form of PPD.
 EMPLOYEES WELFARE SCHEMES
• Internal Insurance scheme for the benefit of the dependents of the
deceased employees introduced. Rs.3.00 lakhs is being paid.
• Rs.70.00 per month from each employee is collected and the
management is contributing the equivalent sum to the fund.
• Medically Incapacitated & Welfare Fund created for the benefit of
Employees. Those Employees who avail voluntary retirement on
medical grounds will be drawing 100%, 75%, 50% & 25% of their
basic pay from 1st to 4th year respectively
• Employees payment viz., salary, Medical reimbursement, P.F.loan,
Festival & Education advance are paid through ECS
 BMTC’s Infrastructure projects and
services
• Infrastructure projects and services aim at reducing demand of
private vehicular traffic inducing a modal shift to public
transport

• Infrastructure Projects comprise JNNURM funded projects

such as Traffic and Transit Management Centres (TTMCs)

• 10 TTMCs have already been completed and functioning

• Rolling Stock of 1000 Buses procured which include the

premium urban city Volvo based A/c services

• The above mentioned services are equipped with Intelligent

Transport Units (GPS enabled) and Passenger Information
System (Voice Announcement)
 Vayu Vajra Airport Service
• BMTC introduced Vayu Vajra (BIAS) A/c service
• Aimed at replacing PCUs and IPT - much awaited step in
traffic reduction
• Success owing to a combination of technology used,
management & marketing practices and policies convenient
to commuters
• Policy: Removing competing services to give impetus to BIAS
• Technology: High-end fleet engineering, low floor and
comfortable seating made commuting easy, affordable, fast
and reliable
• Marketing & Finance: Pricing at par with competing private
modes, along with innovative pass and other promo pricing
• Operations & Management : Continuous monitoring helped
address problems. Last mile connect was made available by
tie up with Cell Cabs