HUMAN RESOURCE

ACCOUNTING
BHARAT SANCHAR NIGAM LIMITED (BSNL)

Presented By :-
Partap Malik
COMPANY PROFILE
■ State-owned telecommunications company headquartered in New Delhi.

■ Incorporated on 15 September 2000 and is in the business of providing

telecom services and network management .

■ Largest provider of fixed telephony and broadband services with more than 60%
market share, and is the fifth largest mobile telephony provider in India.

■ BSNL has a customer base of 109.26 million as on 31st October, 2016.

DISTRIBUTION OF STAFF AT BSNL
NEED FOR HRA
■Human Resource Accounting is very much needed to provide effective and efficient
management within the organization.

■ It also provides qualitative information and also assesses the cost incurred in
personnel.

■ The Return on Investment on human capital is best evaluated through HRA.

LEV & SCHWARTZ MODEL
The Lev and Schwartz Model states that the human resource of a company is the summation of value of
all the Net Present Value (NPV) of expenditure on employees. The human capital embodied in a person of
age ‘r’ is the present value of his earning from employment. Under this model, the following steps are
adopted to determine human resource value:

(i) Construction of average earning stream for each group.

(ii) Discounting the average earnings at a predetermined rate in order to get present value of human
resources of each group.

V(r) = I(t)/(l + r)t-r

Where, V(r) = the value of an individual ‘r’ years old
1(t) = the individuals annual earnings up to retirement
t = retirement age
r = discount rate specific to the cost of capital to the company
FINANCIAL SUMMARY OF BSNL
REVENUE PER EMPLOYEE

Year 2017:
Revenue per employee= Rs. 14.458 Lakhs (7.54% increase)

Year 2016:
Revenue per employee= Rs. 13.445 Lakhs (10% increase)

Year 2015:
Revenue per employee= Rs. 12.216 Lakhs
CONCLUSION

■ Revenue per Employee of the company is increasing which is indicative of the fact
that BSNL has laid greater emphasis on its human resources and considered them as
valued resources in their business.
■ BSNL has been able to generate moderate returns on its human assets which imply
that its human assets are efficiently utilized during the period under study.
REFERENCES

■ http://www.bsnl.co.in/
■ Annual Reports- 2016-2017 and 2015-2016
THANK
YOU