Presented by-

PRIYADARSANI
KUMARI
CUJ/I/2010/IMBA/28




Comparative analysis of the
financial position of the BSNL

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.
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.

INTERPRETATION OF TREND ANALYSIS OF
BALANCE SHEET WITH THE HELP OF
CHARTS:-

0
20
40
60
80
100
120
2005 2006 2007 2008 2009 2010
Share capital
Share capital
0
20
40
60
80
100
120
2008 2009 2010 2011 2012 2013
Reserves and surpluses
Reserves and
surpluses
0
20
40
60
80
100
120
2008 2009 2010 2011 2012 2013
Unsecured Loan
Unsecured
Loan
0
50
100
150
200
250
300
350
400
450
2008 2009 2010 2011 2012 2013
deferred tax liability
deferred tax
liability
0
20
40
60
80
100
120
140
200820092010201120122013
Total Fixed Assets
Total Fixed
Assets
0
50
100
150
2008 2009 2010 2011 2012 2013
Total current assets, loans and
advances
Total current
assets, loans
and advances
0
50
100
150
200
250
2008 2009 2010 2011 2012 2013
Total current liabilities and
provisions
Total current
liabilities and
provisions
-20
0
20
40
60
80
100
120
2008 2009 2010 2011 2012 2013
Net current assets
Net current
assets
0
500
1000
1500
2000
2500
3000
3500
2008 2009 2010 2011 2012 2013
Investments
Investments
0
20
40
60
80
100
120
2008 2009 2010 2011 2012 2013
Total Capital employed
Total Capital
employed
CONCLUSION
There was not much good financial position of BSNL in year 2013 as
comparison to 2008 and previous years.
There was 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 should be good communication between each departments of BSNL.

There 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