A PROJECT REPORT ON BSNLBy PEDA BABU VADIYALACentral University of Karnataka2015MBA0155

Internal guide:-Dr. Ganapathi SinnoorAssistant professor of managementCentral University of Karnataka

External guide:-P.SrikanthJunior Accounts OfficerBHARATH SANCHAR NIGAM LTD

OBJECTIVE OF STUDY To get practical knowledge. To analyze the financial changes over a

period of five years. To evaluate the financial position of the

company in terms of solvency, profitability, activity and earnings ratios.

To suggest effective measure in the existing system of the company.

To identify the financial strength and weakness of the company.

To have a practical experience over the learning from classroom.

LIMITATIONS OF STUDY The study is restricted for a period of five years. Due to the inadequate time it is not possible to

analyze all aspects relevant to the study. The analysis is based on annual reports of the

company. Authorities were reluctant to reveal full

information about the working of the company. Only secondary data is used for analysis. The scope of the study is limited to the financial

data only. The conclusions are made by ignoring various market and economic variables.

CAMPANY PROFILEBSNLType State owned enterpriseIndustry TelecommunicationFounded Incorporated in 2000Head quarters New Delhi, IndiaKey people Anupan Shrivastava (Chairman

& MD)Products & services Telephone, internet, digital TV,

IPTV, fixed line.Employees 216325 (as on 19th November

2015)Total revenue ₹ 28645.20 crores (as on 31st march 2015)

Total assets ₹ 89300 crores (as on 31st march 2015)

Subscribers 85.29 millionsMarket share 8.19% (as on 31st march 2015)Web site www.bsnl.co.in

VISION To become the leading telecom service

provider in India with global presence To create a customer focused organization

with excellence in customer care, sales and marketing

Leverage technology to provide affordable and innovative telecom services / products across customer segments

MISSION Leveraging technology to provide

affordable and innovative products/services across customer segments

Providing a conducive work environment with strong focus on performance

Establishing efficient business processes enabled by IT

ORGANISATION STRUCTURE

BSNL TELECOM REVOLUTION

COMPETITORS

SWOT ANALYSIS

Strength• Experienced telecom service provider

• Total telecom service provider• Huge resources (financial & technical pool)

• Huge customer base• Most trusted telecom brand• Transparency in billing• Easy development of new services• Copper in last mile can be used for easy broadband development

• Huge optical fiber network and associated bandwidth

Weakness• Non-optimization of network capabilities

• Poor marketing strategy• Bureaucratic organizational set up• Inflexibility in mind-set (DOT period legacies)

• Limited number of value added services

• Poor franchise network• Legacy of poor service image• Huge and aged manpower• Procedural delays• Lack of strategic alliances• Problems associated with incumbency like outdated technologies, unproductive rural assets, social obligations, political interference, poor IT penetration with in organization

• Poor knowledge management

Contd..

Opportunities• Tremendous market growing at 20 lac customers per month

• Untapped broadband services• Untouched international market• Can capitalize on public sector image to grab government's ICT initiates

• ITEB service markets• Diversification of business to turn-key projects

• Leveraging the brand image to source funds

• Almost un-invaded VSAT market• Fuller utilization of slack resources• Can make a kill through deep penetration and low cost advantage

• Broaden market expected from convergence of broadcasting, telecom and entertainment industry

Threats• Completion from private operations• Keeping pace with fast technological changes

• Market maturity in basic telephone segment

• Manpower churning• Multinational eyeing Indian telecom market

• Private operations demand for sharing last mile

• Decreasing per line revenues due to competitive pricing

• Private operators demand to do away with ADC can seriously effect revenues

• Populist policies of government like “One India” rates

FINDINGS The total current liabilities are more than

current assets. The debt equity ratio has shown a

significant growth from 0.090 in 2012-2013 to 0.073 in 2014-2015.

The fixed asset to net worth ratio has been quiet good from 0.38 in 2010-2011 to 0.61 in 2014-2015.

Long term liabilities or borrowings have been increased from 11340 crores in 2010-2011 to 12610 crores in 2012-2013.

Contd.. The current ratio between current assets and

current liabilities has been fluctuating 0.89 in 2010-2011, 0.75 in 2014-2015.

The operating expenditure has reduced in consecutive years from 36002 crores in 2010-2011 to 34900 crores in 2012-2013.

Looking into the total revenue of 2011, revenue of that year is 7% lesser than 2010. Which means that additional investments made in 2010 was not fruitful.

The remuneration to staff of company cannot be controlled .this is one of the reasons for net profits decreasing year by year.

SUGGESTIONS It is high time for BSNL to improve their

operating efficiency. They should concentrate on increasing both their operational revenues as well as other revenues.

They can consider for going for public issue and debt securities.

Depreciation is a significant charge against their operating profit. So that the company should take utmost good care in maintaining their fixed assets.

The total revenues of BSNL have been reducing year by year since 2010-2011.

Contd.. They can provide corporate connections. BSNL should conduct a brand revitalization

campaign which can attract more new users as well as maintain existing customers.

BSNL need to be more competitive in terms of their services offered.

BSNL can explore other areas to improve revenue generation.

The root cause for existing financial crisis is the unproductive investments. So every possible effort should be made to maximize the utilization of existing infrastructure and to create profitable customer base.

CONCLUSION The study “financial statement analysis” at BSNL is done

by using some widely accepted tools. Within the constraints I believe that the study served its purpose. It is understood that financial statements of BSNL is worsening especially regarding their operating income.

It is expected that a huge number of retirements, around a lakh will happen on coming years which will certainly help them to reduce the cost of administration.

BSNL needs to bring in large amount of changes especially in marketing as a measure to increase the market share as well as revenue.

It is evident that BSNL as a prestigious company has well brand image among the customers and can overcome the present situation easily by adopting efficient management techniques.

LEARNING EXPERIENCE It was very good experience to get

internship in BSNL. It helped me in knowing the financial performance of the company, and about telecom industry. It helped me in gaining practical knowledge. It was good time for me to interact with employees.