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MTNL Financial Analysis
 

MTNL Financial Analysis

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    MTNL Financial Analysis MTNL Financial Analysis Document Transcript

    • INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH (IPER) ACCOUNTING FOR MANAGERS ASSIGNMENT-1 MAHANAGAR TELEPHONE NIGAM LIMITED (A NavRatna Company)SUBMITTED TO- SUBMITTED BY-PROF. ABHISHEK JAIN HARSHID RAI HARIOM PRAJAPATI JAYSINGH RAJPUT SANDEEP PATEL MBA SEC-I, GROUP-24
    • Twenty Sixth Annual Report 2011-12OF MAHANAGAR TELEPHONE NIGAM LIMITED "To provide in its area of operation, in a leading way, world class telecom services which are demanded, keeping always the customers delight as its aim, so that it continues to be the premier Indian Telecom Company".
    • CONTENTS1. Board of Directors2. Directors Report3. Corporate Governance Report4. Annual Accounts (Auditors Report)5. Balance Sheet, Profit & Loss Account
    • BOARD OF DIRECTORS (AS ON 01.09.2012)Shri A.K. Garg Chairman & Managing DirectorShriKuldip Singh Director (Technical)Smt. Anita Soni Director (Finance)Shri S.P. Pachauri Director (HR)Sh. Vijay Aggarwal DirectorShri T.S. Narayanasami DirectorDr. RajanSaxena DirectorShriSushil Kumar Shingal DirectorShri Malay Shrivastava DirectorShri Kumar Sanjay Bariar Director COMPANY SECRETARY S.R. SAYAL REGISTERED AND CORPORATE OFFICE MahanagarDoorsancharSadan 5th Floor, 9, CGO Complex, Lodhi Road, New Delhi - 110 003 Tel : 011-24310212, 24320051 Website : www.mtnl.net.in / www.bol.net.in
    • DIRECTOR’S REPORTPERFORMANCE REVIEW OF MTNL FOR THE FY 2011-12 During the year 2011-12 MTNL faced stiff competition from other operators. Moreover, MTNL is confined only to the cities of Delhi and Mumbai which are having more than 150% tele-densityand are among the most competitive markets in India. These factors havecontributed in increased pressure on margins (sliding average revenue per user) due to falling tariffs and also on customer retention and acquisition. Further, the payment of exorbitant spectrum charges in excess of `11,000 Crore for acquiring3G and BWA spectrum that too only for Delhi & Mumbai has put tremendous strain on thefinances of the company. This fund requirement was met through short term loans of about`7,563 Crore& remaining from its own resources. Having achieved the telephone on demand situation in both the cities, the main thrust in 2011-12 was on the expansion of existing mobile and broadband services in both Delhi and Mumbai to provide high speed internet, high quality video and new generation wireless services. Plans have been made to expand latest technology like IP-MPLS, FTTH based on G-PON, IN Junction and Access network,etc.SOURCES AND USES OF FUNDSCapital:-Amount invested by the owner in the firm is known as capital. It may be brought in theform of cash or assets by the owner for the business entity capital is an obligation and a claim onthe assets of business. It is, therefore, shown as capital on the liabilities side of the balance sheet.  The amount of capital invested in MTNL Rs.8000 millions was same for the financial years 2010-11 & 2011-12Issued, Subscribed & paid-up Capital:-Issued capital is that part of the authorized capitalwhich is offered by the company for being subscribed by members of the public or anybody.Subscribed capital is that part of the issued capital which is subscribed (accepted) by the public.Paid Up capital refers to that part of the called up capital which has been actually paid by theshareholders. Some of the shareholders might have defaulted in paying the called up money.Such defaulted amount is called as arrears. From the called up capital, calls in arrears is deductedto obtain the paid up capital.  The amount was Rs. 6300 for both the financial years 2010-11 & 2011-12.
    • Reserves & Surplus:-Amount appropriated out of earned surplus (retained earnings) for futureplanned or unforeseen expenditure.  The reserves & Surplus decreased from Rs.60164.81millions in 2010-11 to Rs.19066.97millions inthe year 2011-12.Secured and Unsecured Loan:- A secured loan is lent by a bank or institution contingent onsome type of collateral or security. Collateral, such as cars or property, assures that the lenderwill receive payment or the collateral if an individual defaults. An unsecured loan is an amount of money that a financial institution lends to an individualsolely on the basis of that persons ability to repay it in the future. Thus, an individuals personalfinances such as credit history, income and credit score are considered before a loan is approved.  The secured & unsecured loans increased from Rs. 74556.75 millions in 2010-11 toRs. 96474.93 millions in the year 2011-12.Deferred Tax Liability (Net):- A tax liability that a company owes and does not pay at thatcurrent point, although it will be responsible for paying it at some point in the future. This isoften caused by a difference in a companys ,dueto the differences between accountingpractices and tax regulations. Occasionally, a company will have a difference in their taxableincome and income before tax due to these differences, resulting in a deferred tax liability.  It was Nill on both previous year in 2010-11 & current year2011-12.DIVIDEND:-A taxable payment declared by a companys board of directors and given toits shareholders out of the companys current or retained earnings,usually quarterly. Dividends are usually given as cash (cash dividend), but they canalso take the form of stock (stock dividend) or other property. Dividends provide an incentive toown stock in stable companies even if they are not experiencing much growth. Companies arenot required to pay dividends. The companies that offer dividends are most often companies thathave progressed beyond the growth phase, and no longer benefit sufficiently by reinvestingtheir profits, so they usually choose to pay them out to their shareholders. also called payout.  Since there has been no operating profit during the financial year 2011-12, the Board of Directors of your company expressed its inability to recommend any dividend for the year under report.
    • Corporate Governance Report 1. COMPANYS PHILOSOPHY ON CODE OF GOVERNANCEThe companys philosophy on corporate governance encompasses achieving the balancebetween shareholders interest and corporate goals through the efficient conduct of its businessand meeting its stakeholders obligation in a manner that is guided by transparency,accountabilityand integrity. 2. BOARD OF DIRECTORSThe Company has a broad based Board with an optimum mix of Executive and Non-ExecutiveDirectors. The Board consists of four Executive and six Non-Executive Directors. Four Non-Executive Directors are independent i.e. they do not have any material pecuniary relationshipwith the Company, its promoters or its management, which may affect the independence of thejudgment of the Director.The Board funtions either as a full Board or through various committees constituted to overseespecific operational areas. The Board has constituted six committees, namely Audit Committee,Business Development Committee, Investors and Shareholders Grivences Committee, HRCommittee, Finance Committee and Remuneration Committee. These Board Committees mainlyconsist of Independent/Non-Executive Directors 3. DETAILS OF MEMBERSHIP/CHAIRMANSHIP OF BOARD COMMITTEESNone of the Directors of the Company hold memberships of more than ten Committees. NoDirector is Chairman of more than five Committees of Boards of all the companies where heholds Directorships. For this purpose Committees comprise Audit Committee and Shareholders/Investors Grievance Committee. 4. CODE OF CONDUCT FOR DIRECTORS AND SR. MANAGEMENT PERSONNELMTNL has adopted the Code of Conduct for Directors and Senior Management Personnel asper the requirement of clause 49 of the Listing Agreement dealing with Corporate Governance.The Code is comprehensive Code applicable to all Directors and Senior Management Personnelviz. Executive Directors, General Managers and all functional heads of the company. The Codelays down in detail the standard of business conduct, ethics governance and centers aroundthe following theme: "Integrity and transparency are the core value in all our business dealings.We shall act in compliance with applicable laws and regulations, in a manner that excludesconsiderations of personal advantage and will not compromise in our commitment to honestyand integrity in any aspect of our business. We are committed to excellence, in all ourendeavours"..
    • 5. ATTENDANCE OF DIRECTORS AT THE BOARD MEETINGS AND THE LAST ANNUAL GENERAL MEETING. The Company holds regular Board Meetings. The detailed agenda along with the explanatory notes is circulated in advance. The Directors can suggest inclusion of any item(s) in the agendaat the Board meeting. During the year 2011-12, a total of 9 meetings were held from 01/04/2011to 31/03/2012. 6. DETAILS OF MEMBERSHIP/CHAIRMANSHIP OF BOARD COMMITTEES None of the Directors of the Company hold memberships of more than ten Committees. No Director is Chairman of more than five Committees of Boards of all the companies where he holds Directorships. For this purpose Committees comprise Audit Committee and Shareholders/Investors Grievance Committee. 7. CODE OF CONDUCT FOR DIRECTORS AND SR. MANAGEMENT PERSONNEL MTNL has adopted the Code of Conduct for Directors and Senior Management Personnel as per the requirement of clause 49 of the Listing Agreement dealing with Corporate Governance. The Code is comprehensive Code applicable to all Directors and Senior Management Personnelviz. Executive Directors, General Managers and all functional heads of the company. The Codelays down in detail the standard of business conduct, ethics governance and centersaroundthe following theme: "Integrity and transparency are the core value in all our business dealings. We shall act in compliance with applicable laws and regulations, in a manner that excludes considerations of personal advantage and will not compromise in our commitment to honesty and integrity in any aspect of our business. We are committed to excellence, in all our endeavours". 8. MEANS OF COMMUNICATIONa. The quarterly and half yearly results were published in English and Hindi Newspapers.b. The Companys audited & un-audited & quarterly financial results and Press Releases are posted on the Companys website.c. Detailed Management Discussion and Analysis Reports have been included in this AnnualReport. 9. GENERAL SHAREHOLDER INFORMATION: i. Date and Time of AGM - 28th September 2012, 11.30 A.M. ii. Venue - Conference Hall, MahanagarDoorsancharSadan, 9 CGO Complex, Lodhi Road, New Delhi-110003iii. Financial year - 1st April 2011 to 31st March 2012iv. Dates of Book Closure - 21st September 2012 to 27th September 2012 v. Listing on Stock Exchanges : The Equity Shares of company are listed atfollowing Stock Exchanges.
    • (a) The Delhi Stock Exchange AssociationLimitedScrip code - 13069 (b) Bombay Stock Exchange Limited, MumbaiScrip code - MAHANGR TELE 108, (c) The Calcutta Stock Exchange AssociationLimited- Scrip code – 23036 (d) Madras Stock Exchange Limited Scrip codeMTP (e) The National Stock Exchange of IndiaLimitedScrip code -MTNL EQ (f) New York Stock Exchange Scrip code - MTE The Listing Fee for the Financial Year 2012-13 has been paid to all stock exchanges. Demat ISIN Numbers in - INE 153A01019 NSDL & CDSL The Annual Custodian Fees for the year2012-13 has been paid to the depositoriesi.e. NSDL and CDSL.vi. Market Price Data : Information relating to high, low, close priceduring each month in last financial year atBSE and NSE is given here under:- The Opening Price on BSE as on 01/04/2011 is Rs.46.00 and NSE as on 01/04/2011 is Rs. 46.00 The Closing Price on BSE as on 31/03/2012 is Rs. 27.35 and NSE as on 31/03/2012 is Rs. 27.40.
    • Annual Accounts (Auditors Report)SIGNIFICANT ACCOUNTING POLICIES 1. Basis of preparation of financial statementsi. The accounts are prepared under the historical cost convention adopting the accrual methodof accounting except the following items, which are accounted for on cash basis:(a) Interest income/liquidated damages, where realisability is uncertain.(b) Annual recurring charges of amount up to ` 0.10 Millions each for overlapping period.ii. Revenue Recognition (a) Revenue is recognized on accrual basis, including income from subscribers whose disputes are pending resolution, and closure of the subscribers line. Revenue in respect of service connection is recognized when recoverability is established. (b) Provision is made for wrong billing, disputed claims from subscribers excluding operators covered under the agreements related to IUC/Roaming/MOU, cases involving suspension of revenue realization due to proceedings in Court and debtors outstanding for more than 3 years. In respect of closed connections provision is made for outstanding for more than3 years along with spillover amount less than 3 years. In case of Wireless Services (GSM& CDMA), the provision is made for dues, which are more than 180 days. (c) Activation charges recovered from the subscribers at the time of new telephone connectionis recognized as income in the year of connection. (d) Activation charges in case of Mobile Services (GSM) is recognized as revenue onconnection. (e) Income from services includes income from leasing of infrastructure to other serviceproviders.iii. The cost of stores and materials is charged to project or revenue job at the time ofissue.However, spill over items at the end of the year lying at various stores arevalued at weightedaverage method.iv. The sale proceeds of scrap arising from maintenance & project works are taken intomiscellaneous income in the year of sale.v. Bonus/ Exgratia is paid based on the productivity linked parameters and it is to beprovided accordingly subject to the profitability of the company.vi. Income from services pertaining to prior years is not disclosed as prior period item. Inrespect of other income/expenditure, only cases involving sums exceeding ` 0.10Millions are disclosed as prior period items.Employee Retirement Benefits a) In respect of officials who are on deemed deputation from DOT and other Govt. Departments, the provision for pension contribution is provided at the rates specified inAppendix 2(A) to FR 116 and 117 of FR. & SR. and provision for leave encashment is
    • made @ 11% of pay as specified in appendix 2(B) of F.R.116 and 117 of F.R. & S.R.Provision of gratuity, in respect of these officers, is not required to be made.b) In respect of others, provision is made as per Actuarial Valuation.2. Fixed Assets i) Fixed Assets are carried at cost less accumulated depreciation. Cost includes directlyrelated establishment expenses including employee remuneration and benefits and otheradministrative expenses. Establishment overheads and expenses incurred in units whereproject work is also undertaken are allocated to capital and revenue based either on timeallocated or other attributable basis. Assets are capitalized, as per the practices describedbelow, to the extent completion certificates have been issued, wherever applicable.(a) Land is capitalized when possession of the land is taken. Value of Leasehold Land isamortized over the period of lease. (b) Building is capitalized to the extent it is ready for use.(c) Apparatus & Plants principally consisting of Telephone Exchange Equipments and AirConditioning Plants are capitalized on commissioning of the exchange. SubscribersInstallations are capitalized as and when the exchange is commissioned and put touse either in full or in part.(d) Lines & Wires are capitalized as and when laid or erected to the extent completioncertificates have been issued.(e) Cables are capitalized as and when ready for connection with the main system.(f) Vehicles and Other Assets are capitalized as and when purchased.(g) Intangible assets include application software are capitalized when ready for use, entryfees for one-time payment for 3G and BWA spectrum are capitalized when the liabilityfor the same is known.ii. The fixed assets of the company are being verified by the management at reasonable intervals i.e. once in every three years by rotation. The physical verification of underground cables is done on the basis of working of network and based on records available together with a certificate from the technical officers.iii. Expenditure on replacement of assets, equipments, instruments and rehabilitation work is capitalized if it results in enhancement of revenue earning capacity.iv. Upon scrapping / decommissioning of assets, these are classified in fixed assets at the lower of Net Book Value and Net Realisable Value and the estimated loss, if any, is charged to Profit and Loss A/c.v. Depreciation
    • (a) Depreciation is provided on Straight Line Method at the rates prescribed in ScheduleXIV to the Companies Act, 1956 except in respect of Apparatus & Plant (including AirConditioning System attached to exchanges), which is depreciated at the rates basedon technical evaluation of useful life of these assets i.e. 9.5%, which is higher than therates prescribed in Schedule XIV to the Companies Act, 1956.(b) 100 % depreciation is charged on assets of small value in the year of purchase, otherthan those forming part of project, the cost of which is below `.0.01 Millions in case ofApparatus & Plants, Training Equipment & Testing Equipment and `.0.20 Millions forPartitions.(c) Intangible assets of entry fees for one time payment for 3G and BWA Spectrum aredepreciated over the period of license respectively i.e. 20/15 years. Application softwareis depreciated over the useful life of the assets considered as 10 years and amortizationis charged on depreciable amount accordingly. There will be no residual value at theend of the life of the assets.3. InventoriesInventories being stores and spares are valued at cost or net realizable value, whicheveris lower. However, inventories held for capital consumption are valued at cost.
    • MAHANAGAR TELEPHONE NIGAM LIMITED CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2012A balance sheet is a financial statement used by organizations that summarizes the assets,liabilities and equities on the books. Knowing the elements of a balance sheet is useful forcreating, reading and analyzing the information it contains. A balance sheet is often considered a"snapshot" of a companys health because it shows information current only to the particular dayon which it is created.EQUITY AND LIABILITIESEquity is the owners value in an asset or group of assets.In accounting, equity is usually defined as the value of the assets contributed by the owners. Thisis added to the total income earned and retained by the company to give the companys totalequity value. This description of equity is correct but very simplistic. A more profounddescription is really that used by the homeowner, that is, equity is the owners value in an asset orgroup of assets.In accounting, liabilities are obligations of the company to transfer something of value toanother party. On a company’s balance sheet, a liability may be a legal debt or an accrual, whichis an estimate of an obligation.Shareholders FundsShare CapitalFunds raised by issuing shares in return for cash or other considerations. The amount of sharecapital a company has can change over time because each time a business sells new shares to thepublic in exchange for cash, the amount of share capital will increase. Share capital can becomposed of both common and preferred shares.  Share Capital remains the same in the FY 2011 & 2012 Rs. 6,300.00 millions.Reserves & SurplusAmount appropriated out of earned surplus (retained earnings) for future planned or unforeseenexpenditure.  The Reserves& Surplus increased from Rs.59943.75 million in the FY 2011to Rs.19041.70million in the FY 2012.
    • NON - CURRENT LIABILITIESLong-term liabilities are those that are usually payable after a period ofone year, for example, a term loan from a financial institution or debentures(bonds) issued by a company.Long Term Borrowings:  It Increased from Rs. 25568.18 millions in the FY 2011 to Rs. 70000.00 millions in the FY 2012.Deferred Tax Liabilities (Net):  It Increased from Rs. 21.04 millions in the FY 2011 to Rs. 24.91 millions in the FY 2012.Other Long Term Liabilities:  It Increased from Rs. 27447.10millions in the FY 2011 toRs. 29350.43 millions in the FY 2012.Long Term Provisions:  It Increased from Rs72332.10 millions in the FY 2011 to Rs. 82047.80 millions in the FY 2012.Short-term liabilities are obligations that are payable within a period of oneyear, for example, creditors, bills payable, bank overdraft.Current Liabilities:Short Term Borrowings:  It decreased,from Rs. 49080.86 millions in the FY 2011 to Rs.26483.69 millions in the FY 2012.Trade Payables:  It Increased,from Rs. 2278.07 millions in the FY 2011 to Rs.2666.22 millions in the FY 2012.Other Current Liabilities:  Itdecreased,from Rs. 26546.97 millions in the FY 2011 to Rs.25375.80 millions in the FY 2012.Short Term Provisions:  It Increased from Rs.5136.94. millions in the FY 2011 to Rs.8088.20 millions in the FY 2012.TOTAL LIABILITIES  Total Liabilities decreased, from Rs. 274655.00 millions in the FY 2011 to Rs.269378.75 millions in the FY 2012.
    • Non - Current Assets 1) Fixed AssetsA long-term tangible piece of property that a firm owns and uses in the production of itsincome and is not expected to be consumed or converted into cash any sooner than at least oneyears time. Fixed assets are sometimes collectively referred to as "plant". A. Tangible AssetAssets that have a physical form. Tangible assets include both fixed assets, such as machinery,buildings and land, and current assets, such as inventory. The opposite of a tangible asset is anintangible asset. Nonphysical assets, such as patents, trademarks, copyrights, goodwill and brandrecognition, are all examples of intangible assets.  It increased, from Rs. 69233.93millions in the FY 2011 to Rs. 69987.35millions in the FY 2012. B. Intangible AssetAn asset that is not physical in nature. Corporate intellectual property (items such as patents,trademarks, copyrights, business methodologies), goodwill and brand recognition are allcommon intangible assets in todays marketplace  It deccreased, from Rs. 94748.73millions in the FY 2011 to Rs.88424.87millions in the FY 2012. C. Capital Work In ProgressMaterial that has entered the production process but is not yet a finished product. Work inprogress (WIP) therefore refers to all materials and partly finished products that are at variousstages of the production process. WIP excludes inventory of raw materials at the start of theproduction cycle and finished products inventory at the end of the production cycle. Alsoreferred to as "work in process."  It decreased, from Rs. 11644.88 millions in the FY 2011 to Rs.9127.47millions in the FY 2012. 2) Long Term Loans and Advances  It decreased, from Rs. 48875.46millions in the FY 2011 to Rs.49351.98millions in the FY 2012.
    • Other Non Current Assets  It decreased, from Rs. 26566.47millions in the FY 2011 to Rs.31704.43 millions in the FY 2012.Current AssetsA balance sheet account that represents the value of all assets that are reasonably expected to beconverted into cash within one year in the normal course of business. Current assets includecash, accounts receivable, inventory, marketable securities, prepaid expenses and otherliquid assets that can be readily converted to cash.Current InvestmentAn asset or item that is purchased with the hope that it will generate income or appreciate in thefuture. In an economic sense, an investment is the purchase of goods that are not consumed todaybut are used in the future to create wealth. In finance, an investment is a monetary assetpurchased with the idea that the asset will provide income in the future or appreciate and be soldat a higher price.  It increased, from Rs. 0.00 millions in the FY 2011 to Rs.2700millions in the FY 2012.InventoriesThe raw materials, work-in-process goods and completely finished goods that are considered tobe the portion of a businesss assets those are ready or will be ready for sale. Inventory representsone of the most important assets that most businesses possess, because the turnover ofinventory represents one of the primary sources of revenue generation and subsequent earningsfor the companys shareholders/owners.  It increased, from Rs. 1266.84million in the FY 2011 to Rs.1024.95million in the FY 2012.Trade ReceivableMoney owed by customers (individuals or corporations) to another entity in exchange for goodsor services that have been delivered or used, but not yet paid for. Receivables usually come inthe form of operating lines of credit and are usually due within a relatively short time period,ranging from a few days to a year.On a public companys balance sheet, accounts receivable is often recorded as an assetbecause this represents a legal obligation for the customer to remit cash for its short-term debts.
    •  It decreased, from Rs. 3659.51millions in the FY 2011 to Rs.3496.43millions in the FY 2012.Cash & Cash Equivalents  It decreased, from Rs. 1778.86millions in the FY 2011 to Rs.1341.27millions in the FY 2012.Short Term Loans & Advances  It decreased, from Rs. 8125.67millions in the FY 2011 to Rs.8101.13millions in the FY 2012.Other Current Assets  It decreased, from Rs. 5254.66millions in the FY 2011 to Rs.3318.88millions in the FY 2012.TOTAL ASSETS  Total Assetsdecreased, from Rs. 274655.00 million in the FY 2011 to Rs.269378.75 millionin the FY 2012.
    • MAHANAGAR TELEPHONE NIGAM LIMITED Statement of Consolidated Profit and Loss for the year ended 31st March, 2012 1) REVENUEThe amount of money that a company actually receives during a specific period, includingdiscounts and deductions for returned merchandise. It is the "top line" or "gross income" figurefrom which costs are subtracted to determine net income.Revenue is calculated by multiplying the price at which goods or services are sold by the numberof units or amount sold.  Net Revenue From OperationsA companys operating income/revenue after operating expenses are deducted, but before incometaxes and interest are deducted. If this is a positive value, it is referred to as net operatingincome, while a negative value is called a net operating loss (NOL).(A) Revenue From Sale of ServicesFixed Telephone:Mobile Services:Other Services:InternetFree PhonePremium Rate ServicesVOIP ServicesMiscellaneous(B) Other Operating RevenuesRevenue From Enterprise BusinessSurcharge On Delayed Payments  Net Revenue From Operations decreased from Rs. 37459.47 millions in FY 2011 to Rs. 34415.28 millionsin FY 2012.  Other Income INTEREST(i) From Bank(ii) From Employees(iii) From Others(iv) From Income Tax Refunds DIVIDEND INCOME  Dividend Income decreased from Rs. 34.15 millions in FY 2011 to Rs. 0.00 millions in FY 2012
    • OTHER NON OPERATING INCOMESale of directories, forms etc.Profit on sale of assetsLiquidated damagesForeign Exchange Fluctuation GainBad Debts RecoveredExcess Provision Written backRent on Quarters/ IQs/ Hostels & other servicesRental income from propertiesOthers  Total Other Income decreased from Rs. 3194.17millions in FY 2011 to Rs. 2535.08 millions in FY 2012.  Total Revenue decreased from Rs. 40653.63millions in FY 2011 to Rs. 36950.36 millions in FY 2012. 2) EXPENSES Employee Benefits i.e. Salary & wages  It increased from Rs. 32504.25millions in FY 2011 to Rs. 37144.19 millions in FY 2012. Revenue Sharing  It increased from Rs. 4654.17millions in FY 2011 to Rs. 4689.09 millions in FY 2012 Licence Fees  It decreased from Rs. 2923.69millions in FY 2011 to Rs. 2426.82 millions in FY 2012 Administrative, Operative And Other ExpensesPower, Fuel & WaterRentLease Rentals other than on CWGRepairs & Maintenance(1) Building(2) Plant &Machinary(3) OthersSeminar & Training ChargesInsuranceRates & TaxesWealth TaxTravelling ExpensesPostage & CourierPrinting & Stationery
    • Vehicle Expense(I) Maintenance(II) Running(III) HiringMiscellaneous Expenses  Administrative, Operative And Other Expenses decreased from Rs. 9470.10millions in FY 2011 to Rs. 8467.16 millions in FY 2012. Depreciation & AmortisationDepreciation refers to two very different but related concepts: 1. the decrease in value of assets (fair value depreciation), and 2. the allocation of the cost of assets to periods in which the assets are used (depreciation with the matching principle).Amortization (or amortisation) is the process of decreasing, or accounting for, an amount over a period  Depreciation &Amortisation increasedfromRs. 14229.23millions in FY 2011 to Rs. 15105.28 millions in FY 2012.Finance CostFINANCING COST is the difference between the cost of financing the purchase of an asset andthe assets cash yield. Positive carry means that the yield earned is greater than the financingcost;negative carry means that the financing cost exceeds the yield earned. (a) INTEREST ON LOAN (b) INTEREST TO OTHERS  Finance Cost increased from Rs. 4529.41 millions in FY 2011 to Rs. 9499.85 millions in FY 2012.Total Expenses  Total Expenses increased from Rs.68310.84 millionsin FY 2011 to Rs. 77332.40 millions in FY 2012. 3) Profit/(Loss) Before Exceptional & Extraordinary Items & Tax  Profit/(Loss) Before Exceptional &ExtraordinaryItems& Tax increasedfromRs. 27657.20millions in FY 2011 to Rs. 40382.04millions in FY 2012.
    • Exceptional Items  Exceptional ItemsExpensesincreased from Rs.0.00 millions in FY 2011 to Rs. 2.26 millions in FY 2012.Profit/(Loss) Before Extraordinary Items & TaxIt include the extraordinary items such as:Extraordinary ItemsAttachment of PropertyLoss due to EarthquakeOthers  Profit/(Loss) Before ExtraordinaryItems& Tax increasedfromRs. 27657.20 millions in FY 2011 to Rs. 40384.31millions in FY 2012.Profit/(Loss) Before TaxA profitability measure that looks at a companys profits before the company has to paycorporate income tax. This measure deducts all expenses from revenue including interestexpenses and operating expenses, but it leaves out the payment of tax.  Profit/(Loss) Before Tax, increasedfromRs. 27657.20 millions in FY 2011 to Rs. 40384.31millions in FY 2012.Tax Expenses:Current Tax:It increased,from Rs.9.87millions in FY 2011 to Rs.13.07 millions in FY 2012.Deferred Tax:It decreased,from Rs.26.50 millions in FY 2011 to Rs.6.43millions in FY 2012.Taxes Of Earlier Period Paid/ Written Back:It decreased,from Rs.291.37 millions in FY 2011 to Rs.0.37 millions in FY 2012.Profit/(Loss) After TaxA profitability measure that looks at a companys profits after the company has paid corporateincome tax. This measure deducts all expenses from revenue including interest expensesand operating expenses,Current Tax , Deferred Tax, Taxes Of Earlier Period Paid/ Written Backare deducted.  (Loss)AfterTax,increasedfrom Rs.27984.94millions in FY 2011 to Rs. 40391.32millions in FY 2012.
    • Prior Period Items: It decreased,from Rs.15.65 millions in FY 2011 to Rs.650.18 millions inFY 2012.Profit/(Loss) For The Period  (Loss)For The Period,increasedfrom Rs.27969.30millions in FY 2011 to Rs. 41041.50millions in FY 2012.Earnings Per Equity Share(1) Basic:Basic EPES increased from Rs. 44.40 millions in FY 2011 to Rs.65.15 millions in FY 2012.(2) Diluted:Diluted EPES increased from Rs. 44.40 millions in FY 2011 to Rs.65.15 millions in FY 2012. Thank You!