A study on REVENUE INCOME AND EXPENDITURE ANALYSIS ON BESCOM

A STUDY ON REVENUE INCOME AND EXPENDITURE ANALYSIS
ON “BENGALURU ELECTRICITY SUPPLY COMPAMY LIMITED”
Project report submitted in partial fulfilment of the requirements for the award of the Degree
of
BACHELOR OF BUSINESS ADMINISTRATION (B.B.A)
Of
BANGALORE UNIVERSITY
2016-2019
Submitted By
BASU GOENKA
(Reg. No: 16YUC26078)
Under the guidance of
Mrs. NAYANA N.
Assistant Professor
Department of Commerce & Management
ABBS
ACHARYA BANGALORE B-SCHOOL
ANDRAHALLI MAIN ROAD, OFF MAGADI ROAD, BANGALORE-560091

STUDENT DECLARATION
I, BASU GOENKA, hereby declare that this project title “A STUDY ON
REVENUE INCOME AND EXPENDITURE ANALYSIS ON BESCOM”
submitted to Bangalore University in partial fulfilment of the requirement for award
of Bachelor of Business Administration is a result of original work done by me under
the guidance and supervision of Assistant Professor NAYANA N, ABBS
I further declare that, it has not been previously submitted for the award of any
degree/diploma or fellowship or similar title of any university/institution.
Place: Bangalore BASU GOENKA
Date: VI Semester BBA

ACKNOWLEDGEMENT
Words are indeed inadequate to convey my profound gratitude and heartiest thanks
to all those who have helped me in making this project report. I will take this
opportunity to thanks Dr.D.M.MAHISHI, Principal, ACHARYA BANGALORE
B SCHOOL, BENGALURU.
I will take this opportunity to thank Asst.Prof. K. RAGHAVENDRA, Programme
coordinator Department of Management, for his constant support, encouragement
and guidance. I would also like to thank the internal guide Asst. Prof. NAYANA
N., for the valuable inputs provided to this project, which was immensely helpful in
applying various frame works to a practical situation.
I owe my deep gratitude to my project guide Mr. A ATHAULLA (I/C DGM,
HRDC, BESCOM), who took keen interest on my project work and guided me all
along, till the completion of my project work by providing all the necessary
information for developing a good system.
I would not forget to remember Mrs. A BHAGYA (AGM, DAS&SG) & Ms.
MEHBOOB of BESCOM for their encouragement and more over for their timely
support and guidance till the completion of my project work.
I express my deep sense of gratitude and sincere thanks to place on record the
almighty the parental care and concern of me, my family, my friends and my well-
wishers who were also a source of strength and support behind the project.
This project has been a great learning experience for me and it would have not been
possible without the support of the guidance of above mentioned people.
BASU GOENKA

TABLE OF CONTENTS
SL.NO CONTENTS PAGE NO.
1 Introduction 01-14
2 Research design 15-18
3 Company profile 19-29
4 Data analysis & Interpretation 30-74
5 Findings, Suggestions & Conclusion 75-79
Annexure
Bibliography

A STUDY ON REVENUE INCOME & EXPENDITURE ANALYSIS
ACHARYA BANGALORE B SCHOOL Page 1
CHAPTER 1
INTRODUCTION
INTRODUCTION
Finance is the life blood of business. The origin of finance, there is evidence to prove that it is as
old as human life on earth. The word finance was originally a French word. In the 18th century,
it was adopted by English speaking communities to mean „the management of money‟. Since
then, it has found a permanent place in the English dictionary. Today finance is not merely a
word else has emerged into an academic discipline of greater significance. Finance is now
organized as a branch of economics.
The one word which can easily replace finance is “EXCHANGE”. Finance is nothing but an
exchange of available resources. Finance is not restricted only to the exchange and/or
management of money. A barter trading system is also a type of finance. Thus, finance is an art
of managing various resources like money, assets, investment, securities.
At present, we cannot imagine a world without finance. Finance is the soul of our economic
activities. To perform any economic activity, we need certain resources, which are to be pooled
in terms of money (i.e. in the form of currency notes, other valuables). Finance is a prerequisite
for obtaining physical resources, which are needed to perform productive activities and carrying
business operation such as sales, pay compensation, reserve for contingencies.
THE EVOLUTION OF FINANCIAL SYSTEM
The evolution of the financial system has travelled up and down from barter system in
preindustrial economies to universal banking. The evolution of the financial system is greatly
influenced by the spread of urban society, and above all the advent the role that finance had to
play. Finance development accelerated with the expansion of the railways and especially, with
the revolutionalization of the information technology. In India, the evolution of the financial
systems reflected its political, social and economic need and aspirants. Government has played a
large role in the creation and broadcasting of the financial system and financial deepening in the
country.

The government has exerted its influence over the flow of credit, interest rates, credit control and
direction. It is also a big borrower as well as regulator of the financial system. A bulk of the
Indian financial system is in the public sector, even though co-operative and private sectors are
there to complete with other institutions.
Finance was studied as part of economics before the turn of the present century. In the present
country where the massive consolidation movement took place; finance comes to be studied as a
corporate discipline.
In 1929, finance was study of potentialities of different securities as a source of funds from
outside. It also plays the role of functions of institution agencies as a source of fund in 1930;
businessman found that their requirement couldn’t be met by banks and financial institutions. In
order to meet their requirement they needed to liquidate their inventory, the impact of this
improved the methods of planning and control. Re-organization of industries during the Post
World War 2 period brought forward the problem of raising large amount of capital for the
industries.
In the early 50‟s the U.S. economy faced the boom on business activity and at the same time it
faced tightening of the money situation. So the companies were given to cash flow management.
The financial manager was assigned the responsibility of managing cash flow in and a manner
that industries had sufficient cash to carry out its objectives and meet its obligation as it become
due.
In the period of 1960 and 1970, interesting improvement took place in the sphere of business
finance. The financial management started about aggregate stock price, the empirical efficiency
of business sales, the profitability of institutions investors and the analytical efficiencies of
various portfolios selection criteria on new line. Thus the dimension of business finance, which
was earlier limited to periodic events, changed in recent years to innovate the study of day to day
operation of the financial management along with periodic events.

DEFINITIONS:
"Finance has been closely bound with money since it replaced barter as the means of exchange.
Finance is the lifeline of all activities; economic, social and administrative. Finance flows from
public as taxes to Government, as savings to banking and financial institutions and as share
capital or bonds or debentures to the entrepreneur, it then gets used for a variety of development
and non-development activities through Government and other agencies and flow back to public
as income in various ways. Given below are some commonly understood definitions of finance:
Economics: “A branch of economics concerned with resource allocation as well as resource
management, acquisition and investment and deals with matters related to money and the
markets”.
Business: Finance is “To raise money through the issuance and sale of debt and/ or equity”.
Experts: “Finance is the study if how people allocate their assets over time under conditions
of certainty and uncertainty. Finance aims to price assets based on their risk level and
expected rate of return”.
Scientific view: Finance is “The science that describes the management, creation and study of
money, banking, credit, investment, assets and liabilities”.
Functional view: “The finance function encompasses a variety of functions, activities and
processes. It compasses financing functions, budgetary functions, risk and return management,
cash flow management, cash management, financial management, risk and governance and many
more associated functions”.
Systems view: “Finance consists of financial systems, which include the public, private and
government spaces and the study of financial instruments, which can relate to countless assets
and liabilities”.

Definitions by famous philosopher and Industrialist:
According to SIMON ANDRADE, “Finance is the area of economic activity in which money is
the basis of various embodiments, whether stock market investments, real estate, industrial,
construction, agricultural development, so on”.
According to HENRY FORD, “Finance or money is an arm or leg which one can either use it
or lose it”.
FEATURES OF FINANCE
 Investment opportunities: In finance, investment can be explained as a utilization of
money for profit or return. Investment can be done by:
a) Creating physical assets with the money such as development of land, acquiring
commercial assets.
b) Carrying on business activities like manufacturing, trading.
 Profitable opportunities: In finance, profitable opportunities are considered as an
important aspiration.
a) Profitable opportunities signify that the firm must utilize its available resources most
efficiently under the condition of cut throat competitive markets.
b) Profitable opportunities shall be a vision. It shall not result in short term profits at
the expenses of long term gains.
 Optimal mix of funds: Finance is concerned with the best optimal mix of fund in order
to obtain the desired and determined result respectively. Funds are of two types:
a) Owned fund (equity shares)
b) Borrowed fund (debentures)
 System of internal control: Finance is concerned with internal control maintained in the
organization or workplace. Internal control is set of rules and regulation framed at the
inception stage of the organization and they are altered as per the requirement of its
business. .

 Future decision making: A good finance is an indicator of growth and good return. This
is possible only with the good analytical decision of the organization. However, the
decision shall be framed by giving more emphasis on the present and future perspective.
Scope of financial function:
1. Estimating Financial Requirement: The main aim of finance function is to assess the
financial needs of an enterprise and then finding out suitable source of rising them. The
source should be commensurate with the need of business. If funds are needed for longer
period’s then long term sources like share capital, debentures, term loans may be
explored.
2. Deciding Capital Structure: The Capital Structure refers to the kind and proportion of
different securities for raising funds. After deciding about the quantum of funds required,
it should be decided which type of securities should be raised. It may be wise finance
fixed assets through long-term debts and current assets through short-term debts.
3. Selecting Source of Finance: After preparing Capital Structure, an appropriate source of
finance is selected. Various sources from which finance may be raised include: share
capital, debentures, financial institutions, commercial banks, public deposits etc. If
finance is needed for short period then banks, public deposits and financial institutions
may be appropriate. On the other hand, if long-term finance is required then share capital
and debentures may be useful.
4. Selecting a Pattern of Investment: When funds have been procured then a decision
about the investment pattern is related to the use of funds. A decision will have to be
taken as to which asset is to be purchased. The funds will have to be spent first on fixed
assets and then a portion will be retained for working capital.

5. Proper Cash Management: Cash Management is an important task of finance manager.
He has to access various cash needs at different times and then make arrangements for
arranging cash. The cash management should be such that neither there is a shortage of it
and nor it is idle.
6. Implementing Financial Controls: An efficient system of financial management
necessitates the use of various control devices. Financial control devices are generally
used for budgetary control, Bank even analysis, Cost control, Ratio analysis etc. The use
of various techniques by the finance manager will help him in evaluating the performance
in various areas and take corrective measures whenever needed.
7. Proper Use of Surplus: The utilization of profit or surplus is also an important factor in
financial management. A judicious use of surplus is essential for the expansion and
diversification plan and also in protecting the interest for shareholders. The finance
manager should consider the following factors before declaring the dividend:
 Trend of earnings of the enterprise.
 Expected earnings in the future.
 Market value of shares.
 Shareholders interest.
 Needs of funds for expansion, etc.
Aims of finance functions:
Financial function aims the following, they are as follows:
1. Procuring adequate funds
2. Financial reporting
3. Accounting and analysis
4. Mobilization of funds
5. Acceleration of funds
6. Maximizing firm value

TYPES OF FINANCE
 Public finance: It is the study of the income and expenditure of the state. It deals only
with the finance of the government. Scope of public finance consists in the study of the
collection of fund and their allocation between various branches of state activities which
are regarded as essential duties or functions of the state.
 Private finance: It is an alternative corporate finance method that helps an organization
raise cash to avoid limited time frame monetary shortfalls. This method typically serves
a firm that is not listed on a securities exchange or is unable to seek financing on such
markets.
 Personal finance: It is the application of the principles of finance to the monetary
decision of an individual or family unit. It addresses the ways in which individuals or
families obtain, budget, save and spend monetary resources over time, taking into
account various financial risks and future life events.
 Corporate finance: It is primarily concerned with maximizing shareholder value
through long term and short term financial planning and the implementation of various
strategies. Corporate finance includes planning the finance, raising the finance, investing
the finance and monitoring the finance.

Income
Income is the revenue a business earns from selling its goods and services or the money an
individual receives in compensation for his or her labour, services, or investments.
Income also refers to net income. Net income is completely different than gross income. Net
income appears at the bottom of the income statement after all of the cost of goods sold and
operating expenses have been subtracted out. Net income equals the total company revenues
minus total company expenses. As you can see, the net income definition is much different than
the revenue definition of income.
Income can also be called as incomes.
TYPES OF INCOME (RECEIPT)
 Revenue incomes
 Capital receipts(income)
Revenue incomes
Revenue incomes are money received by a business as a result of its normal business operations.
In this way, revenue incomes affect the profit or loss of a business.
Revenue incomes are the rights of a business to compensation resulting from normal business
operations and are recorded when the business has earned the right to receive them. These
incomes are recurring and will affect the business's profit or loss on the income statement.
Generally, this means that once goods are delivered into the hands of the customer or services
have been substantially provided, the business has earned the revenue. However, rents and
interest payments received are also considered revenue incomes. Regardless of whether cash is
received or an accounts receivable balance is increased, these are still called revenue incomes.

Features of revenue income
1. Means for survival: A business starts its operations because it expects to receive money
as a result of their service to their customers. Either they can sell a bunch of products or
they can offer services. No matter what they do, without revenue receipts, they can’t
survive for long. Because revenue receipts are collected from the direct operations of the
business.
2. Applicable for short term: Revenue receipts are money received for a short period of
time. The benefit of revenue receipts can only be enjoyed for one accounting year and not
more.
3. Recurring: Since revenue receipts offer benefits for the short period of time, it’s
imperative that the revenue receipts should be recurring. If revenue receipts don’t recur,
the business wouldn’t be able to perpetuate for long.
4. Affects the profit/loss: Receiving revenue directly affects the profit/loss of the business.
When the revenue is received, either profit is increased or loss is decreased.
5. Small amount (volume): Compared to capital receipts, the amount of revenue receipts
are usually smaller. That doesn’t mean all revenue receipts are smaller. For example, if a
company sells 1 million products in a given year, the revenue receipts could be huge and
could also be more than its capital receipts during the year.

Elements of revenue income
1. Income from operations
 Sale of product
 Sale of services
 Interest and other financial services
2. Other income
 Interest income
 Dividend income
 Gain on sale of investments
 Other non-operating incomes
Capital receipts (income)
Capital receipts are those receipts which either create a liability or reduce an asset. Capital
Receipts, as mentioned above, are non-recurring in nature. And these sorts of receipts are also
not received every now and then.
Types of Capital Receipts
1. BORROWING FUNDS
When a company takes loans from banks or financial institutions, then it would be called
borrowing funds. Borrowing funds from a financial institution is one of three forms of capital
receipts.
2. RECOVERY OF LOANS
To recover loans, often company needs to set aside one part of assets which reduces the value of
assets. This is the second type of capital receipts.

3. OTHER CAPITAL RECEIPTS
There’s a third type of receipts which we call “other capital receipts”. Under this, we include
disinvestment and small savings. Disinvestment means selling off one part of the business.
Disinvestment is called capital receipt because it reduced the asset of the company. Small
savings are called capital receipts because they create a liability for the business.
EXPENDITURE
An expenditure is funds used by a business, organization, or corporation to attain new assets,
improve existing ones, or reduce a liability. In other words, it’s the use of a resource in the
operations of a business.
These are payments of currency or barter credits for necessary inputs (goods or services). This
could be anything from purchases equipment to hiring employees. Obligatory settlements or
payment of liabilities such as invoices, receipts, and vouchers can also be considered
expenditures.
Types of expenditure
 Capital Expenditure
 Revenue Expenditure
 Deferred Revenue Expenditure
Capital Expenditure
Capital Expenditure is an amount incurred for acquiring the long term assets such as land,
building, equipment which are continually used for the purpose of earning revenue. These are not
meant for sale. These costs are recorded in accounts namely Plant, Property, Equipment. Benefits
from such expenditure are spread over several accounting years.
E.g. Interest on capital paid, Expenditure on purchase or installation of an asset, brokerage and
commission paid.

Features of capital Expenditure
 Useful Life
Capital expenditure on a property must have a useful life of more than one year. Investments that
only have a temporary effect on a property, such as mowing the grass or cleaning the gutters, are
considered maintenance not a capital expenditure.
 Special Assessments for Improvements
Fees paid to a professional consultant to assess the aptness or feasibility of a capital expenditure
are also considered a capital expenditure. For instance, any consulting fees you pay to plan,
locate and build a well or a septic tank can be declared as a capital expenditure.
 Adds Value
Capital expenditure must add value to the asset. For instance, installing central air-conditioning,
a new driveway or a soft water filtration system all add to the value of a property. Small repairs
like painting a room or fixing a leaking faucet do not qualify as a capital expenditure because
they do not add any value to the property. According to Bank Rate, a good way to decide if an
improvement on a property is a capital expenditure is whether you need a local government
permit to do the work.
Revenue Expenditure
Revenue Expenditure is the expenditure incurred in one accounting year and the benefits from
which is also enjoyed in the same period only. This expenditure does not increase the earning
capacity of the business but maintains the existing earning capacity of the business. It included
all the expenses which are incurred during day to day running of business. The benefits of this
expenditure are for short period and are not forwarded to the next year. This expenditure is on
recurring nature.

Features of revenue expenditure
1. General operating expenses:-Any expenses which is related general operation of
business that all expenses will be revenue expenditures and will be debited in profit and
loss account.
2. Expenses related to short period :-These type of expenses are related to short period,
means benefit of these expenses is less than one year
3. Expenses for maintaining the stability of fixed assets:-These expenses main feature is
that these expenses is useful for maintaining the stability or efficiency of fixed assets.
4. Recurring nature:-One of most important feature of these expenses that these expenses
are recurring nature. In other words these expenses happen Again and again in general
business activities. For example, expenses for giving refreshment is revenue expenditure
because almost daily, these type of expenses is paid by company.
5. Helpful for maintaining the profit of business :-These type of expenditure is useful for
maintaining the profit of business , but also above features should include in the
expenses which I have mentioned in above points because capital expenditure will also
helpful for maintaining the profit and you will then confused revenue and capital
expenditure’s difference .
Elements of revenue expenditures
 Purchase
1. Raw material consumed
2. Purchase of stock in trade
 Other operating expenses
1. Change in inventory

 Employee benefit expenses
1. Salary and wages
2. Contribution towards provident and other funds
3. Staff welfare expenses
 Finance cost
1. Interest expense
2. Other borrowing cost
3. Loss on transaction of foreign exchange
 Depreciation and amortisation expenses
1. Depreciation on plant, Building, etc.
2. Amortisation of goodwill
 Other expenses like:-rent, water, fees , electricity, etc
Deferred Revenue Expenditure
Deferred Revenue Expenditure is revenue expenditure, incurred to receive benefits over a
number of years say 3 or 5 years. These expenses are neither incurred to acquire capital assets
nor the benefits of such expenditure is received in the same accounting period during which they
were paid. Thus they don’t affect profitability statement as they are not transferred to the
profitability statement in the period during which they are paid for. They are charged to profit
and loss account over a number of years depending upon the benefit accrued.

CHAPTER-2
RESEARCH DESIGN
TITLE OF THE STUDY
A STUDY ON REVENUE INCOME AND EXPENDITURE ANALYSIS AT BESCOM,
BAGNALORE.
STATEMENT OF THE PROBLEM
 A detail analysis on income from operation and expenditure within an accounting period
or working capital cycle for BESCOM in order to find the changes in income and
expenditure which results in changes of its profitability”
 Income from operation is really an important aspects of contribution for the business.
 The maximum part of fund is collected from the operating activities of the business.
 The Income from operation is determined from the activities on which the business is
carrying on.
SCOPE OF THE STUDY
The study would be carried out with the help of various tables, charts, and graphs etc. to interpret
the data collected.
The charts, tables, graphs and etc. would give an insight about the different statistics and position
of the organization, which would be easy to understand and hence compare the various factors.

OBJECTIVES OF THE STUDY
 To examine income earned by BESCOM from other sources.
 To examine the rising or declining trends of profit earned
 To understand how income and expenditure vary throughout the year.
 To examine the profitability from operating activities.
REFERENCE PERIOD
The study is conducted in the case for a period of five years and the period of study is one
month.
RESEARCH
After selecting the topic, it is to be planned how the research should be conducted in the most
efficient and successful manner. Good planning gives the researcher direction for the successful
completion of the project. The plan of study is called research design.
Research design is the blue print of the proposed study. It represents the overall scheme of the
study. “A research design is a logical and systematic planning and it helps directing a piece of
research”. Research design is the program that guides the investigator in the process of
collecting, analyzing and interpreting observations. It provides a systematic plan of procedure for
the researcher to follow.
TOOLS FOR COLLECTION OF DATA
 Primary data: Primary sources of data are those sources in which data are collected
through original investigation. In other words, it is a process in which statistical data are
collected first hand. In my study this was collected through personal interview with
designated officer and manager of BESCOM.
 Secondary data: Secondary sources of data are those in which the data is already
collected and published are assembled. The data so collected are called the secondary
data. The task of gathering secondary data is the task of compilation of data from various
published sources.

Here in my study such data is collected through the,
 Company records.
 Company Annual reports.
 Text books.
 Information from internet.
LIMITATIONS OF THE STUDY
 This study has covered only the period of 5 years.
 This study was done keeping in mind constraints such as the study is to be done within a
period of one month.
 This study is limited to revenue income and expenditure of BESCOM.
 This study is based on secondary data.
 The figures are taken on yearly basis not on monthly or daily basis
 Exceptional income, prior period profit are not taken in consideration for data analysis.
PLAN OF ANALYSIS
The Five year data collected from primary and secondary sources will be arranged with the use
of various tables, graphs, diagrams and charts and then data will be analyses with the comparison
of five year data as well as by finding out difference between income and expenditure and
arranged in a trend for further analysis.
The data which is collected from various sources is represented with the help of tables, graphs,
figures and charts for easy viewing and understanding.

CHAPTER SCHEME
 Chapter 1 :Introduction
This chapter deals with giving complete information about the title selected.
 Chapter 2:Research Design
This chapter deals with the framework of the entire project.
 Chapter 3:Company Profile
This chapter describes the nature of the company when, when who and where the
company was established. The products manufactured by the company, sales turnover,
profits and losses and earned during the preceding years, its competitors, objectives,
mission, vision of the organisation etc. This chapter consists of the industry in which the
company belongs to either it is service sector or manufacturing sector and what type of
goods sold and services rendered.
 Chapter 4: Analysis and interpretation
This chapter deals with the conversion of collected data into meaning observation by
utilizing statistical techniques and converting the data into charts, diagram and graphs.
 Chapter 5:Findings, Suggestions & Conclusion
This chapter analyses the important findings done during the start and completion of the
period. It provides probable suggestion to the various issues related to project title. It
provides overall conclusion of how the project was selected, its important findings,
corresponding suggestions and the experience of the researcher in taking up the project.
 Bibliography
 Annexure

CHAPTER-3
COMPANY PROFILE
INDUSTRY PROFILE
ELECTRIC POWER TRANSMISSION
Electric power transmission is the bulk movement of electrical energy from a generating site,
such as a power plant, to an electrical substation. The interconnected lines which facilitate this
movement are known as a transmission network. This is distinct from the local wiring between
high-voltage substations and customers, which is typically referred to as electric power
distribution. The combined transmission and distribution network is known as the "power grid"
in North America, or just "the grid". In the United Kingdom, India, Malaysia and New Zealand,
the network is known as the "National Grid".
ELECTRIC POWER TRANSMISSION TOWERS

A wide area synchronous grid, also known as an "interconnection" in North America, directly
connects a large number of generators delivering AC power with the same relative frequency to a
large number of consumers. For example, there are four major interconnections in North
America (the Western Interconnection, the Eastern Interconnection, the Quebec
Interconnection and the Electric Reliability Council of Texas(ERCOT) grid). In Europe one large
grid connects most of continental Europe.
Historically, transmission and distribution lines were owned by the same company, but starting
in the 1990s, many countries have liberalized the regulation of the electricity market in ways that
have led to the separation of the electricity transmission business from the distribution business.
SYSTEM
Most transmission lines are high-voltage three-phase alternating current (AC),although single
phase AC is sometimes used in railway electrification systems. High-voltage direct-
current (HVDC) technology is used for greater efficiency over very long distances (typically
hundreds of miles). HVDC technology is also used in submarine power cables (typically longer
than 30 miles (50 km)), and in the interchange of power between grids that are not mutually
synchronized. HVDC links are used to stabilize large power distribution networks where sudden
new loads, or blackouts, in one part of a network can result in synchronization problems
and cascading failures.
Diagram of an electric power system; transmission system is in blue

Electricity is transmitted at high voltages (115 kV or above) to reduce the energy loss which
occurs in long-distance transmission. Power is usually transmitted through overhead power
lines. Underground power transmission has a significantly higher installation cost and greater
operational limitations, but reduced maintenance costs. Underground transmission is sometimes
used in urban areas or environmentally sensitive locations.
A lack of electrical energy storage facilities in transmission systems leads to a key limitation.
Electrical energy must be generated at the same rate at which it is consumed. A sophisticated
control system is required to ensure that the power generation very closely matches the demand.
If the demand for power exceeds supply, the imbalance can cause generation plant(s) and
transmission equipment to automatically disconnect or shut down to prevent damage.
In the worst case, this may lead to a cascading series of shut downs and a major
regional blackout. Examples include the US Northeast blackouts of 1965, 1977, 2003, and major
blackouts in other US regions in 1996 and 2011.Electric transmission networks are
interconnected into regional, national, and even continent wide networks to reduce the risk of
such a failure by providing multiple redundant, alternative routes for power to flow should such
shut downs occur. Transmission companies determine the maximum reliable capacity of each
line (ordinarily less than its physical or thermal limit) to ensure that spare capacity is available in
the event of a failure in another part of the network.
OVERHEAD TRANSMISSION
High-voltage overhead conductors are not covered by insulation. The conductor material is
nearly always an alumunium alloy, made into several strands and possibly reinforced with steel
strands. Copper was sometimes used for overhead transmission, but aluminium is lighter, yields
only marginally reduced performance and costs much less. Overhead conductors are a
commodity supplied by several companies worldwide. Improved conductor material and shapes
are regularly used to allow increased capacity and modernize transmission circuits. Conductor
sizes range from 12 mm2
(#6 American wire gauge) to 750 mm2
(1,590,000 circular mils area),
with varying resistance and current-carrying capacity. Thicker wires would lead to a relatively
small increase in capacity due to the skin effect (which causes most of the current to flow close

to the surface of the wire). Because of this current limitation, multiple parallel cables
(called bundle conductors) are used when higher capacity is needed. Bundle conductors are also
used at high voltages to reduce energy loss caused by corona discharge.
Today, transmission-level voltages are usually considered to be 110 kV and above. Lower
voltages, such as 66 kV and 33 kV, are usually considered sub transmission voltages, but are
occasionally used on long lines with light loads. Voltages less than 33 kV are usually used
for distribution. Voltages above 765 kV are considered extra high voltage and require different
designs compared to equipment used at lower voltages.
Four-circuit, two-voltage power transmission line; "Bundled" 2-ways
Since overhead transmission wires depend on air for insulation, the design of these lines requires
minimum clearances to be observed to maintain safety. Adverse weather conditions, such as high
wind and low temperatures, can lead to power outages. Wind speeds as low as 23 knots
(43 km/h) can permit conductors to encroach operating clearances, resulting in a flashover and
loss of supply. Oscillatory motion of the physical line can be termed gallop or flutter depending
on the frequency and amplitude of oscillation.

UNDERGROUND TRANSMISSION
Electric power can also be transmitted by underground power cables instead of overhead power
lines. Underground cables take up less right-of-way than overhead lines, have lower visibility,
and are less affected by bad weather. However, costs of insulated cable and excavation are much
higher than overhead construction. Faults in buried transmission lines take longer to locate and
repair. Underground lines are strictly limited by their thermal capacity, which permits less
overload or re-rating than overhead lines. Long underground AC cables have
significant capacitance, which may reduce their ability to provide useful power to loads beyond
50 miles (80 kilometers). DC cables are not limited in length by their capacitance, issue, and run
for thousands of miles.

ABOUT BESCOM
BESCOM – Bangalore Electricity Supply Company Limited is responsible for Power
distribution in eight districts of Karnataka (Bangalore Urban, Bangalore Rural, Chikkaballapura,
Kolar, Davanagere, Tumkur, Chitradurga and Ramanagara). BESCOM covers an area of 41,092
Sq. Kms. with a population of over 207 lakhs.
The company has 4 operating Zones – Bangalore Metropolitan Area Zone (North), Bangalore
Metropolitan Area Zone (South), Bangalore Rural Area Zone and Chitradurga Zone, 9 Circles,
32 Divisions, 136 Sub-divisions and 510 Section Offices.
In the year 1999, Karnataka embarked on a major Reform of the power sector. As a first step,
Karnataka Electricity Board (KEB) was dissolved and in its place, the Karnataka Power
Transmission Corporation Limited (KPTCL) was incorporated.
This was followed by the constitution of Karnataka Electricity Regulatory Commission (KERC)
in November 1999.In the next phase of the Reform Process, the transmission and distribution
business managed by KPTCL were unbundled in June 2002. Four new distribution companies
were formed to distribute power in Karnataka.

Bangalore Electricity Supply Company Limited (BESCOM) has taken over the responsibility
from KPTCL for the distribution of electricity in 8 districts and commenced its operations from
1st June 2002.
BESCOM HISTORY
 The erstwhile Mysore State had the enviable and glorious position of establishing the first
major hydroelectric generating station for commercial operations at Shivasamudram as
early as 1902. The art at that time was still in its infancy, even in the advanced countries.
The longest transmission line, at the highest voltage in the world, was constructed to meet
the power needs of mining operations at Kolar Gold Fields.
 The generating capacity of the Shivasamudram Power House gradually increased to 42
MW in stages. To meet the increasing demand for power, the Shimsha Generating
Station, with an installed capacity of 17.2 MW, was commissioned in the year 1940. The
power demand was ever on the increase, for industries and rural electrification, and
additions to generating capacity became imperative. The 1st Stage of 48 MW and 2nd
stage of 72 MW of the Mahatma Gandhi Hydroelectric Station were commissioned
during 1948 and 1965, respectively.
 The State of Karnataka, with availability of cheap electric power, and other infrastructure
facilities, was conducive for increased tempo of industrial activity. It became necessary to
augment the power-generating capacity by harnessing the entire potential of the
Sharavathi Valley. The first unit of 89.1 MW was commissioned in 1964 and completed
in 1977.
 The demand for power saw a phenomenal increase in the mid-sixties and onwards with
the setting up of many public sector and private industries in the State. As power
generation in the state was entirely dependent on monsoon and was subject to its
vagaries, the state government set up a coal based power plant at Raichur. The present
installed capacity of the power plant at Raichur is 1260 MW. To augment the energy

resources of the State, the Kalinadi Project with an installed capacity of 810 MW at
Nagahari Power House and 100MW at Supa Dam Power House, with an energy potential
of 4,112 Mkwh, were set up.
 The transmission and distribution system in the state was under the control of the
Government of Karnataka (then Mysore) till year 1957. In the year 1957, MSEB was
formed and the private distribution companies were amalgamated with Karnataka
Electricity Board.
 Till the year 1986, KEB was a profit-making organisation. However, in the subsequent
years, like other State Electricity Boards in the country, KEB also started incurring
losses, mainly due to the increase in agricultural consumption and due to the
implementation of the socio-economic policies of the government.
 To improve the performance of the power sector and in tune with the Reforms initiated
by Government of India, the Government of Karnataka came out with a general policy
proposing fundamental and radical Reforms in the power sector. Accordingly an Act,
namely the Karnataka Electricity Reforms Act was passed by the Karnataka Legislature.
The Reform has mandated major restructuring of the Karnataka Electricity Board and its
Corporatisation. As part of corporatisation, Karnataka Electricity Board ceased to exit
and Karnataka Power Transmission Corporation Limited was constituted from 1st August
1999.
 As a part of the Reforms, the distribution sector was further divided into 4 company’s
viz. Bangalore Electricity Supply Company Limited – BESCOM; Hubli Electricity
Supply Company Limited – HESCOM; Mangalore Electricity Supply Company Limited
– MESCOM; Gulbarga Electricity Supply Company Limited – GESCOM. These
companies came into existence from 1st June 2002.

Vision and mission
Vision
The vision of BESCOM is to be number one in customer satisfaction in South Asia in power
distribution.
Mission
The mission of Bangalore electricity Supply Company limited is to ensure continuous consumer
satisfaction and continuous profit in business.
1. By ensuring total employee satisfaction.
2. By developing infrastructure, commensurate with growth, thus ensuring reliable and
quality power supply.
3. By using best technology in communication and best practices in power supply.

Details of board of directors
Sl.No. Names Designation
1 Sri.P.Ravi Kumar, IAS., Chairman
2 Sri. S.Selva Kumar, IAS., Director
3 Dr.EkroopCaurs, IAS., Director
4 Smt.C.Shikha , IAS Managing Director
5 Dr.R.C.Chetan, IRS CFO & Director (Finance)
6 Sri.PavankumarMalapati, IAS., Director
7 Sri. G.Ashok Kumar Director (Tech)
8 Sri.M.Mallikarjuna Reddy Director
9 Sri. T.R.Ramakrishnaiah Director
10 Sri. A.N.Jayaraj Director
11 Sri.K.T.Hiriyanna, FCS Company Secretary

A BIRD’S EYE VIEW:
BESCOM has been licensed to distribute electric power in eight
Districts of Karnataka namely, Bangalore Urban & Bangalore
Rural, Ramanagara, Kolar, Chikkaballapura, Tumkur, Chitradurga,
and Davangere covering an area of 41,092 Sq. Kms. The total
number of consumers as at the end of March 2018 is over112.45
lakhs.
Sl no. Particulars Statistics
Position as on 31-3-2018
1 Area Sq. km. 41092
2 Districts Nos. 8
3 Population Lakhs 207
4 Zone Nos. 4
5 DTCs Nos. 306467
6 HT lines ckt.kms. 100121
7 LT lines ckt.kms. 165959
Total Employees strength
A Sanctioned 23315
B Working 15595
9
Demand (FY-18)
(excld. Other income) Rs. In crs. 18042
10
Collection (FY-18)
(excld. Other income) Rs. In crs. 18677
11 Total assets Rs. In crs. 20320

CHAPTER-4
DATA ANALYSIS & INTERPRETATION
The analysis and interpretation of financial statements are helpful in determining the company`s
financial position and results of operation as well. It will further help managers in the process of
making decisions.
Managers are the people who make use of a number of techniques in analyzing and interpreting
the data to make and take the right decisions. And the Ratio Analysis along with comparative
statements are the techniques which are mostly used and useful for knowing the strength and
incompleteness of a company.
Analysis and Interpretation
1. Revenue from operations:-Sale of power is accounted on accrual basis at the tariff rates
approved by the Karnataka Electricity Regulatory Commission (KERC). Revenue dues
from consumers whose ledger accounts are yet tobe opened are accounted on an
estimated basis. The company accounts/discloses revenues net off electricity taxes in its
statement of profit and loss.
Revenue from operation are accounted on the basis of three category
 Sale of HT category
 Sale of LT category
 Other operating income

SALE OF HT POWER: -
HT power means High Tension supply. This power supply is applicable to bulk power supply of
voltage at 11KV (including 2.3/4.6 KV) and above at standard high voltage or Extra high
Voltages when the contract Demand is 50 KW / 67 HP and above. Power supply can be used for
theatres, shopping facility, club, hospital, guesthouse, yard/street lighting, canteen located within
the colony. Also applicable to hospitals, dispensaries, Health centers run by State/Central Govt.
& Local bodies, Ashrams.
Table 4.1
Table Showing Sale of HT Power
Year Amount (in cr.)
2013-14 5701.71
2014-15 6260.18
2015-16 6433.33
2016-17 6810.05
2017-18 7574.47
Analysis:
From the above table the sale of HT power has been obtained for the period of five the
period ranging from 2013-14 to 2017-18. Where we can see that there is continuous
increase in sales of HT power. Where we can obtained the sale for the year 2013-14 was
Rs.5707.71crores to Rs.7574.47 crores in 2017-18

Graph 4.1
Graph showing sale of HT power
INTERPRETATION:-
The above graph is prepared with reference of table no 4.1 i.e. of Sale of HT power X-axis
represents the time period of year ranging from 2013-14 to 2017-18 and Y-axis represents
Amount in crores. From the above demonstration we can observe that the bar in the graph are
increasing repeating from year to i.e. in 2013-14 the sale of HT power was Rs.5701.71 crores
increases to Rs.6260.18 crores in 2014-15, Rs.6433.33 crores in 2015-16, Rs.6810.05 crores in
2016-17 and finally to Rs.7574.47 crores in 2017-18. In this way we can see that there is increase
in supply of power to Manufacturing, Shopping apartments, malls, Hospitals in the area of
supply of electricity.
5701.71
6260.18
6433.33
6810.05
7574.47
0
1000
2000
3000
4000
5000
6000
7000
8000
2013-14 2014-15 2015-16 2016-17 2017-18
Amount(incr.)
Year
Sale of
HT Power

PERCENTAGE OF CHANGE IN SALE OF HT POWER:-
In this analysis the change in sale of HT power over a period of time is shown in percentage as a
trend of 5 years taking FY 2013-14 as a base for calculation
=
𝐒𝐚𝐥𝐞 𝐨𝐟 𝐇𝐓 𝐩𝐨𝐰𝐞𝐫 𝐟𝐨𝐫 𝐚 𝐩𝐞𝐫𝐢𝐨𝐝
𝐒𝐚𝐥𝐞 𝐨𝐟 𝐇𝐓 𝐩𝐨𝐰𝐞𝐫 𝐢𝐧 𝟐𝟎𝟏𝟑 − 𝟏𝟒
× 𝟏𝟎𝟎
Table 4.2
Table showing percentage of Change in sale of HT Power taking 2013-14 as base
Analysis:-
In the above analysis the sale of HT power of FY 2013-14 has been taken as a base to calculate
the trend percentage of the sale where as usual 2013-14 is 100% and as the sale is increasing
there is increase in trend to which reaches to 110% in 2014-15, 113% in 2015-16, 119% in 2016-
17 and 133% in 2017-18.
Percentage of change in sale of
LT power taking 2013-14 as
base year
2013-14 5701.71 100
2014-15 6260.18 110
2015-16 6433.33 113
2016-17 6810.05 119
2017-18 7574.47 133

Graph no. 4.2
Graph showing percentage of changes in sale of HT power
.
Interpretation
The above line graph is prepared with reference with the table of Table no. 4.2 where X-axis
represents the year and Y-axis represents the percentage. In the above diagram can observe that
the sale line is increasing as the changes in year which shows a positive sign for the company as
it indicates there is increase in use of heavy consumption i.e. High Tension electricity supply.
Where in 2014-15 the line tends to rise more than in 2015-16 and finally there is huge increase in
2017-18 we can see as compared to other period of sale.
100%
110% 113%
119%
133%
0%
20%
40%
60%
80%
100%
120%
140%
2013-14 2014-15 2015-16 2016-17 2017-18
Percentage
YEAR
Percentage of change in HT power
taking 2013-14 as base year

SALE OF LT POWER:-
Sale of LT power refer to revenue generated from sale of low tension power where the
low tension power means power of capacity of 400 volts Three phase and 230 volts
single phase supply.
These power is used for general purpose in household, small shops, small offices, etc. or
we can assume it have been used for general purpose
Table no. 4.3
Table showing Sale of LT Power
2013-14 5859.17
2014-15 7125.27
2015-16 7793.51
2016-17 9039.68
2017-18 9877.18
Analysis:-
The above table shows the data of sale of LT power (low tension power) with the reference
period of 5 years ranging from the period of FY 2013-14 to 2017-18. In the reference period we
can observe that the first column belong to the year or period and second column is for the sale
of corresponding period where the amount is shown in crores.

Graph no. 4.3
Graph showing sale of LT power
Interpretation:-
The above graph is prepared with reference of table no 4.3 i.e. of Sale of LT power X-axis
represents the time period of year ranging from 2013-14 to 2017-18 and Y-axis represents
Amount in crores. From the above demonstration we can observe that the bar in the graph are
increasing repeating from year to i.e. in 2013-14 the sale of LT power was Rs.5859.172041
crores increases to Rs.7125.27 crores in 2014-15, Rs.7793.51 crores in 2015-16, Rs.9039.68
crores in 2016-17 and finally to Rs.9877.18 crores in 2017-18. In this way we can see that there
is increase in supply of power to Household, small shops, etc. for general purpose.
5859.17
7125.27
7793.51
9039.68
9877.18
0
2000
4000
6000
8000
10000
12000
2013-14 2014-15 2015-16 2016-17 2017-18
Amount(incr.)
YEAR
Sale of
LT Power

PERCENTAGE OF CHANGE IN SALE OF LT POWER:-
In this analysis the change in sale of LT power over a period of time is shown in percentage as a
=
𝐒𝐚𝐥𝐞 𝐨𝐟 𝐋𝐓 𝐩𝐨𝐰𝐞𝐫 𝐟𝐨𝐫 𝐚 𝐩𝐞𝐫𝐢𝐨𝐝
𝐒𝐚𝐥𝐞 𝐨𝐟 𝐋𝐓 𝐢𝐧 𝟐𝟎𝟏𝟑 − 𝟏𝟒
× 𝟏𝟎𝟎
Table no. 4.4
Table showing percentage of change in sale of LT power
Percentage of change in LT power
2013-14 5859.17 100
2014-15 7125.27 122
2015-16 7793.51 133
2016-17 9039.68 154
2017-18 9877.18 169
Analysis:-
The above table shows the ratio of change in sale of LT power with respect to 2013-14. Where
the first column shows the year for the period of five years ranging from 2013-14 to 2017-18.
The second column shows the amount in crore of the relevant period and third column that is
analysis table where the percentage has been calculated by the use of above formula.as the base
2013-14 has been taken so its change will be constant or 100% as the sale increases with respect
to period of 2013-14 the sales margin also increases corresponding to year and amount of sales.

Graph no. 4.4
Line Graph showing change in LT power taking 2013-14 as base year
Interpretation:-
The above line graph is prepared with reference to table no. 4.4 where X-axis denotes the year
that is the period of five years from 2013-14 to 2017-18 and Y-axis represents percentage. In the
above diagram can observe that the sale line is increasing as the changes in year which shows a
positive sign for the company as it indicates there is increase in use of household consumption
i.e. Low Tension electricity supply. Where in 2014-15 the line tends to rise more than in 2015-16
and finally there is huge increase in 2016-17 we can see as compared to other period of sale and
again it tends to rise in 2017-18.
100%
122%
133%
154%
169%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
2013-14 2014-15 2015-16 2016-17 2017-18
Percentage
YEAR
Percentage of change in LT power

OTHER OPERATING INCOME:-
Other operating income is also forming a part of Revenue from operation but something other
than the sale of LT and HT power. The other operating income comprises of incomes like fuse
charges , reconnection fees, public lighting maintenance connection, service connection, delayed
payment by customers, Recovery for theft power, etc. we can say that the operating income other
than sale of LT and HT power form a part of other operating income.
Table no 4.5
Table showing other operating income
2013-14 56.46
2014-15 94.14
2015-16 -78.61
2016-17 11.44
2017-18 590.4
Analysis:-
The above table shows the data of other operating income with the reference period of 5 years
ranging from the period of FY 2013-14 to 2017-18. In the reference period we can observe that
the first column belong to the year or period and second column is for the sale of corresponding
period where the amount is shown in crores.

Graph no. 4.5
Graph showing other operating income
Interpretation:-
The above graph is constructed with the reference of table no 4.5 where X-axis represents period
of years ranging from 2013-14 to 2017-18 and Y-axis represents amount in crores. In the table
we can see that the income from other operating activities was Rs.56.46 crores in 2013-14 which
increases to Rs.94.14 in 2014-15 and decreases to negative figure of Rs.-78.61 in 2015-16 then
again the income rises to 2016-17 and in 2017-18 we can see that there is drastic increase in
income from other operating activities to Rs.590.4 crores.
56.46
94.14
-78.61
11.44
590.4
-200
-100
0
100
200
300
400
500
600
700
2013-14 2014-15 2015-16 2016-17 2017-18
Amount(incr.)
YEAR
Other operating
income

PERCENTAGE IN CHANGE OF OTHER OPERATING INCOME:-
In this analysis the change in other operating income over a period of time is shown in
percentage as a trend of 5 years taking FY 2013-14 as a base for calculation
=
𝐎𝐭𝐡𝐞𝐫 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐢𝐧𝐜𝐨𝐦𝐞 𝐟𝐨𝐫 𝐚 𝐩𝐞𝐫𝐢𝐨𝐝
𝐎𝐭𝐡𝐞𝐫 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐢𝐧𝐜𝐨𝐦𝐞 𝐢𝐧 𝟐𝟎𝟏𝟑 − 𝟏𝟒
× 𝟏𝟎𝟎
Table no. 4.6
Percentage in change of other operating income
Percentage of Change in other
operating income taking 2013-
14 as base year
2013-14 56.46 100
2014-15 94.14 167
2015-16 -78.61 -139
2016-17 11.44 20
2017-18 590.4 1046
Analysis:-
The above table shows the ratio of change in other operating income with respect to 2013-14.
Where the first column shows the year for the period of five years ranging from 2013-14 to
2017-18. The second column shows the amount in crore of the relevant period and third column
that is analysis table where the percentage has been calculated by the use of above formula.as the
base 2013-14 has been taken so its change will be constant or 100% as the sale increases with
respect to period of 2013-14 the income margin also increases corresponding to year and amount
of raise in income.

Graph no. 4.6
Graph showing percentage of change in other operating income
Interpretation:-
above diagram can observe that the income line increases in 2014-15 by 167% but it gets
decreases to 2015-16 in negative trend but again it tends to rise in 2016-17 but it reaches to
maximum of 1046% in 2017-18. Which shows that there is lack of leakage and fine are being
charges by customers due to late pay and all.
100%
167%
-139%
20%
1046%
-200%
0%
200%
400%
600%
800%
1000%
1200%
2013-14 2014-15 2015-16 2016-17 2017-18
Percentage
Year
Percentage of change in Other operating income

OTHER INCOME:-
Income from services rendered is accounted based on the agreements/arrangements with the
concerned parties. Rebate earned on power purchases prompt payments are accounted as and
when the related dues are settled and Interest income is recognized on a time proportion basis
taking into account the amount outstanding and rate applicable.
Table no. 4.7
Other income
2013-14 228.67
2014-15 205.24
2015-16 167.21
2016-17 215.32
2017-18 316.93
Note:-In the above figure the amount received as subsidy from government in FY 2015-16 has
been excluded so as to disclose data more reliable and comparability
Analysis:-
The above table shows the data of income from other sources with the reference period of 5
years ranging from the period of FY 2013-14 to 2017-18. In the reference period we can observe
that the first column belong to the year or period and second column is for the expense of
corresponding period where the amount is shown in crores.

Graph no. 4.7
Graph showing income from other sources
Interpretation:-
we can see that the income from other sources was Rs.228.66 crores in 2013-14 Which decreases
to Rs.205.24 Cr. in 2014-15 and decreases to figure of Rs.167.20 Cr. in 2015-16 then again the
income rises in 2016-17 to Rs.215.92 crores and in 2017-18 we can see that there is drastic
increase in income from other income to Rs.316.93 crores.
228.67
205.24
167.21
215.32
316.93
0
50
100
150
200
250
300
350
2013-14 2014-15 2015-16 2016-17 2017-18
Amount(incr.)
YEAR
other income

PERCENTAGE OF CHANGE OF OTHER INCOME:-
In this analysis the change in other operating income over a period of time is shown in percentage as
a trend of 5 years taking FY 2013-14 as a base for calculation
=
𝐎𝐭𝐡𝐞𝐫 𝐢𝐧𝐜𝐨𝐦𝐞 𝐟𝐨𝐫 𝐚 𝐩𝐞𝐫𝐢𝐨𝐝
𝐎𝐭𝐡𝐞𝐫 𝐢𝐧𝐜𝐨𝐦𝐞 𝐢𝐧 𝟐𝟎𝟏𝟑 − 𝟏𝟒
× 𝟏𝟎𝟎
Table no. 4.8
Percentage of change in other income
2013-14 228.67 100
2014-15 205.24 90
2015-16 167.21 73
2016-17 215.32 94
2017-18 316.93 139
Analysis:-
The above table shows the ratio of change in other income with respect to 2013-14. Where the
first column shows the year for the period of five years ranging from 2013-14 to 2017-18. The
second column shows the amount in crore of the relevant period and third column that is analysis
table where the percentage has been calculated by the use of above formula.as the base 2013-14
has been taken so its change will be constant or 100% as the sale increases with respect to period
of 2013-14 the income margin also increases corresponding to year and amount of raise in
income.

Graph no. 4.8
Graph showing ratio of change in other income
Interpretation:-
above diagram can observe that the income line decreased in 2014-15 to 90% again it gets
decreases in 2015-16 to 73% but again it tends to rise in 2016-17 but it reaches to maximum of
139% in 2017-18.whoch shows the company is getting good return from investments and other
income.
100%
90%
73%
94%
139%
0%
20%
40%
60%
80%
100%
120%
140%
160%
2013-14 2014-15 2015-16 2016-17 2017-18
Percentage
YEAR

PURCHASE OF POWER:-
The power purchase cost is recognized based on the Government of Karnataka Order No. EN
131 PSR 2003 Dated 10th
May 2005 and subsequent orders issued from time to time for
accounting the cost of power based on the billings made by power generators pool allocated to
BESCOM by the Government of Karnataka. The company recognizes the quantum of power
exported at the generating plant as per allocation given by Government of Karnataka as per order
dated 24.03.2010
Table no. 4.9
Purchase of power
2013-14 10702.75
2014-15 11685.02
2015-16 12601.00
2016-17 13700.83
2017-18 15123.21
Analysis:-
The above table shows the data of expenditure of purchase of power with the reference period of
5 years ranging from the period of FY 2013-14 to 2017-18. In the reference period we can
observe that the first column belong to the year or period and second column is for the sale of

Graph no. 4.9
Graph showing purchase of power
Interpretation:-
we can see that expense on purchase of power which is the major expense of the Bescom are
shown above where the purchase of power in 2013-14 is Rs.10702.75 crores increases to
Rs.11685.02 crores in 2014-15 , Rs.12601.00 crores in 2015-16, Rs.13700.83 crores in 2016-17
and finally it increases to Rs.15123.21 crores in 2017-18.
10702.75
11685.02
12601.00
13700.83
15123.21
0
2000
4000
6000
8000
10000
12000
14000
16000
2013-14 2014-15 2015-16 2016-17 2017-18
Amount(incr.)
YEAR
Purchase of power

PERCENTAGE OF CHANGE IN EXPENSE ON PURCHASE OF POWER:-
In this analysis the change in purchase over a period of time is shown in percentage as a trend of
5 years taking FY 2013-14 as a base for calculation
=
𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞 𝐨𝐟 𝐩𝐨𝐰𝐞𝐫 𝐟𝐨𝐫 𝐚 𝐩𝐞𝐫𝐢𝐨𝐝
𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞 𝐨𝐟 𝐩𝐨𝐰𝐞𝐫 𝐢𝐧 𝟐𝟎𝟏𝟑 − 𝟏𝟒
× 𝟏𝟎𝟎
Table no 4.10
Table showing percentage of change in purchase of power
Percentage of change in
Purchase of power
2013-14 10702.75 100
2014-15 11685.02 109
2015-16 12601.00 118
2016-17 13700.83 128
2017-18 15123.21 141
Analysis:-
The above table shows the ratio of change in expense on purchase of power with respect to 2013-
14. Where the first column shows the year for the period of five years ranging from 2013-14 to
base 2013-14 has been taken so its change will be constant or 100% as the purchase of power
increases for the relevant period than the trends also gets increased.

Graph no. 4.10
Graph showing Percentage of change in expense on purchase of power
Interpretation:-
above diagram can observe that the expense on purchase of gets increase in trends as compared
to 2013-14 where it increases to 109% in 2014-15, 118% in 2015-16, 128% in 2016-17 and
finally to 141% in 2017-18 which shows the company tends to purchase more electricity in
future due to the increase in the consumption of electricity.
100%
109%
118%
128%
141%
0%
20%
40%
60%
80%
100%
120%
140%
160%
2013-14 2014-15 2015-16 2016-17 2017-18
Percentage
YEAR
Percentage of change in Purchase of power

OTHER OPERATING EXPENSES:-
This expense is related to the other expense relating to operating activities like repairs and
maintenance of cables, buildings, network, vehicles, freight charges, material cost variance, civil
works, etc.
Table no. 4.11
Table showing other operating expenses
2013-14 51.65
2014-15 54.94
2015-16 83.36
2016-17 74.84
2017-18 90.42
Analysis:-
The above table shows the data of expenditure relating other activities with the reference period
of 5 years ranging from the period of FY 2013-14 to 2017-18. In the reference period we can
observe that the first column belong to the year or period and second column is for the expense

Graph no. 4.11
Graph showing other operating expenses
Interpretation:-
The above graph is constructed with the reference of table no 4.11 where X-axis represents
period of years ranging from 2013-14 to 2017-18 and Y-axis represents amount in crores. In the
table we can see that expense on other operating activities of the Bescom are shown above where
the other operating expenses in 2013-14 is Rs.51.65 crores increases to Rs.54.94 crores in 2014-
15 , Rs.83.36 crores in 2015-16, Rs.74.84 crores in 2016-17 and finally it increases to Rs.90.42
crores in 2017-18.
51.65
54.94
83.36
74.84
90.42
0
10
20
30
40
50
60
70
80
90
100
2013-14 2014-15 2015-16 2016-17 2017-18
Amount(incr.)
YEAR
Other operating
expenses

PERCENTAGE OF CHANGE IN OTHER OPERATING EXPENSES:-
In this analysis the change in other operating over a period of time is shown in percentage as a
=
𝐎𝐭𝐡𝐞𝐫 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐞𝐱𝐩𝐞𝐧𝐬𝐞𝐬 𝐟𝐨𝐫 𝐚 𝐩𝐞𝐫𝐢𝐨𝐝
𝐎𝐭𝐡𝐞𝐫 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐢𝐧 𝟐𝟎𝟏𝟑 − 𝟏𝟒
× 𝟏𝟎𝟎
Table no. 4.12
Table showing percentage of change in other operating expenses
Year
Amount (in
cr.)
Percentage of change in Other
operating expenses
2013-14 51.65 100
2014-15 54.94 106
2015-16 83.36 161
2016-17 74.84 145
2017-18 90.42 175
Analysis:-
The above table shows the ratio of change in expense on other operating activities with respect to
2013-14. Where the first column shows the year for the period of five years ranging from 2013-
14 to 2017-18. The second column shows the amount in crore of the relevant period and third
column that is analysis table where the percentage has been calculated by the use of above
formula.as the base 2013-14 has been taken so its change will be constant or 100% as the other
operating expenses increases for the relevant period than the trends also gets increased.

Graph no. 4.12
Graph showing percentage of change in other operating expenses
Interpretation:-
above diagram can observe that the expense on other operating activities gets increased as
compared to 2013-14 where it increases to 106% in 2014-15, 161% in 2015-16 then it decreases
to 145% in 2016-17 and finally increases to 175% in 2017-18.
100%
106%
161%
145%
175%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
2013-14 2014-15 2015-16 2016-17 2017-18
Percentage
YEAR
Percentage of change in Other operating
expenses

EMPLOYEE WELFARE EXPENSES:-
Employee welfare expense is one of the major expense for any company either it is relating to
service sector or manufacturing sector. Employee benefit expenses means any expenditure
incurred for the welfare / benefit for the employee. It includes salary and wages, contribution to
provident and other funds, Expense on employee stock option scheme and employee stock
purchase plan and any other staff welfare expenses.
Table no. 4.13
Table showing Employee welfare expenses
2013-14 753.27
2014-15 802.35
2015-16 855.26
2016-17 871.93
2017-18 1110.63
Analysis:-
The above table shows the data of expenditure relating other activities with the reference period
of 5 years ranging from the period of FY 2013-14 to 2017-18. In the reference period we can
observe that the first column belong to the year or period and second column is for the expenses

Graph no. 4.13
Graph showing Employee welfare expenses
Interpretation:-
table we can see that expense on Employee welfare expenses of the Bescom are shown above
where the Employee welfare expenses in 2013-14 is Rs.753.27 crores increases to Rs.802.35
crores in 2014-15 , Rs.855.26 crores in 2015-16, Rs.871.93 crores in 2016-17 and finally it
increases to Rs.1110.63 crores in 2017-18.
753.27
802.35
855.26 871.93
1110.63
0
200
400
600
800
1000
1200
2013-14 2014-15 2015-16 2016-17 2017-18
Amount(incr.)
YEAR
Employee welfare
expenses

PERCENTAGE OF CHANGE IN EXPENSE ON EMPLOYEE WELFARE EXPENSES:-
In this analysis the change in employee welfare expenses over a period of time is shown in
percentage as a trend of 5 years taking FY 2013-14 as a base for calculation
=
𝐄𝐱𝐩𝐞𝐧𝐬𝐞𝐬 𝐟𝐨𝐫 𝐚 𝐩𝐞𝐫𝐢𝐨𝐝
𝐄𝐱𝐩𝐞𝐧𝐬𝐞 𝐢𝐧 𝟐𝟎𝟏𝟑 − 𝟏𝟒
× 𝟏𝟎𝟎
Table no. 4.14
Table showing percentage of change in employee welfare expenses
Analysis:-
The above table shows the ratio of change in expense on Employee welfare expenses with
respect to 2013-14. Where the first column shows the year for the period of five years ranging
from 2013-14 to 2017-18. The second column shows the amount in crore of the relevant period
and third column that is analysis table where the percentage has been calculated by the use of
above formula.as the base 2013-14 has been taken so its change will be constant or 100% as the
other operating expenses increases for the relevant period than the trends also gets increased.
Percentage of change in Employee
welfare expenses
2013-14 753.27 100
2014-15 802.35 107
2015-16 855.26 114
2016-17 871.93 116
2017-18 1110.63 147

Graph no. 4.14
Graph showing percentage of change on employee welfare expenses
Interpretation:-
above diagram can observe that the expense on employee welfare expenses gets increased as
compared to 2013-14 where it increases to 107% in 2014-15, 114% in 2015-16, 116% in 2016-
17 and finally increases to 147% in 2017-18.
100%
107%
114% 116%
147%
0%
20%
40%
60%
80%
100%
120%
140%
160%
2013-14 2014-15 2015-16 2016-17 2017-18
Percentage
YEAR
Percentage of change in Employee welfare
expenses

FINANCE COST:-
Finance cost is one of the major expense of major expense where it includes expenses related to
interest, other borrowing costs and applicable net gains/loss on foreign currency transactions and
transaction
Table no. 4.15
Table showing expense on finance cost
2013-14 126.18
2014-15 199.79
2015-16 454.51
2016-17 638.03
2017-18 790.65
Analysis:-
The above table shows the data of expenditure on finance cost with the reference period of 5
that the first column belong to the year or period and second column is for the expenses of

Graph no. 4.15
Graph showing expense on finance cost
Interpretation:-
table we can see that expense on Finance cost of the Bescom are shown above where the
Finance cost in 2013-14 is Rs.126.18 crores increases to Rs.199.79 crores in 2014-15 , Rs.454.51
crores in 2015-16, Rs.638.03 crores in 2016-17 and finally it increases to Rs.790.65 crores in
2017-18.
126.18
199.79
454.51
638.03
790.65
0
100
200
300
400
500
600
700
800
900
2013-14 2014-15 2015-16 2016-17 2017-18
Amount(incr.)
YEAR
Finance cost

PERCENTAGE ON CHANGE OF FINANCE COST:-
In this analysis the change in finance cost over a period of time is shown in percentage as a trend of 5
years taking FY 2013-14 as a base for calculation
=
𝐄𝐱𝐩𝐞𝐧𝐬𝐞 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐩𝐞𝐫𝐢𝐨𝐝
× 𝟏𝟎𝟎
Table no. 4.16
Table showing percentage of change in finance cost
Percentage of change in Finance
cost
2013-14 126.18 100
2014-15 199.79 158
2015-16 454.51 360
2016-17 638.03 506
2017-18 790.65 627
Analysis:-
The above table shows the ratio of change in expense on Finance cost with respect to 2013-14.
Where the first column shows the year for the period of five years ranging from 2013-14 to
base 2013-14 has been taken so its change will be constant or 100% as the Finance cost
increases for the relevant period than the trends also gets increased.

Graph no. 4.16
Graph showing percentage of change in finance cost
Interpretation:-
above diagram can observe that the expense on Finance cost gets increased as compared to 2013-
14 where it increases to 158% in 2014-15, 360% in 2015-16, 560% in 2016-17 and finally
increases to 627% in 2017-18.
100%
158%
360%
506%
627%
0%
100%
200%
300%
400%
500%
600%
700%
2013-14 2014-15 2015-16 2016-17 2017-18
Percentage
YEAR
Percentage of change in Finance cost
taking 2012-13 as base

DEPRECIATION AND AMORTIZATION EXPENSES:-
Depreciation and amortization expenses refers to the decrease in the value of fixed and
amortization on the value of fictitious assets.
Table no. 4.17
Table showing depreciation and amortization expenses
2013-14 323.45
2014-15 397.66
2015-16 290.6
2016-17 374.71
2017-18 429.87
Analysis:-
The above table shows the data of expenditure on depreciation and amortization with the
reference period of 5 years ranging from the period of FY 2013-14 to 2017-18. In the reference
period we can observe that the first column belong to the year or period and second column is for
the expenses of corresponding period where the amount is shown in crores.

Graph no. 4.17
Graph showing depreciation and amortization expenses
Interpretation:-
table we can see that expense on depreciation and amortization expenses of the Bescom are
shown above where the depreciation and amortization expenses in 2013-14 is Rs.323.45 crores
increases to Rs.397.66 crores in 2014-15 which decreases to Rs.290.6 crores in 2015-16 again
increases to Rs.374.71 crores in 2016-17 and finally it increases to Rs.429.87 crores in 2017-18.
323.45
397.66
290.6
374.71
429.87
0
50
100
150
200
250
300
350
400
450
500
2013-14 2014-15 2015-16 2016-17 2017-18
Amount(incr.)
Year
Depreciation and
ammortization expenses

PERCENTAGE OF CHANGE IN DEPRECIATION AND AMORTIZATION
EXPENSES:-
In this analysis the change in depreciation and amortization expenses over a period of time is
shown in percentage as a trend of 5 years taking FY 2013-14 as a base for calculation
=
× 𝟏𝟎𝟎
Table no.4.18
Table showing percentage of change in depreciation and amortization expenses
Year
Amount
(in cr.)
Percentage of change in Depreciation
and amortization exp.
2013-14 323.45 100
2014-15 397.66 123
2015-16 290.6 90
2016-17 374.71 116
2017-18 429.87 133
Analysis:-
The above table shows the ratio of change in expense on depreciation and amortization with
respect to 2013-14. Where the first column shows the year for the period of five years ranging
from 2013-14 to 2017-18. The second column shows the amount in crore of the relevant period
and third column that is analysis table where the percentage has been calculated by the use of
above formula.as the base 2013-14 has been taken so its change will be constant or 100% as the
depreciation and amortization expenses increases for the relevant period also gets increased.

Graph no. 4.18
Graph showing percentage of changes of depreciation and amortization expenses
Interpretation:-
above diagram can observe that the expense on depreciation and amortization expenses gets increased
as compared to 2013-14 where it increases to 123% in 2014-15 decreases to 90% in 2015-16 and
again increases to 116% in 2016-17 and finally increases to 133% in 2017-18.
100%
123%
90%
116%
133%
0%
20%
40%
60%
80%
100%
120%
140%
2013-14 2014-15 2015-16 2016-17 2017-18
percentage
Year
Percentage of change in Depreciation and
amortization exp

OTHER EXPENSES:-
The expenses which are other than above mentioned category falls under the category of other
expenses. The expenses like Rent, postage stamps, Travel expenses, Printing & stationery,
Advertisement expenses, etc. falls under this category.
Table no.4.19
Table showing other expenses
2013-14 319.35
2014-15 397.07
2015-16 483.34
2016-17 613.26
2017-18 191.78
Analysis:-
The above table shows the data of other expenditure of Bescom with the reference period of 5
that the first column belong to the year or period and second column is for the expenses of

Graph no 4.19
Graph showing other expenses
Interpretation:-
table we can see that other expense of the Bescom are shown above where the expenses in 2013-
14 is Rs.319.35 crores increases to Rs.397.07 crores in 2014-15, Rs.483.34 crores in 2015-16
again increases to Rs.613.26 crores in 2016-17 and but it decreases to Rs.191.78 crores in 2017-
18.
319.35
397.07
483.34
613.26
191.78
0
100
200
300
400
500
600
700
2013-14 2014-15 2015-16 2016-17 2017-18
Amount(incr.)
YEAR
Other expenses

PERCENTAGE OF CHANGE IN OTHER EXPENSES:-
In this analysis the change in other expenses over a period of time is shown in percentage as a trend
of 5 years taking FY 2013-14 as a base for calculation
=
× 𝟏𝟎𝟎
Table no. 4.20
Table showing percentage of change in other expenses
Percentage of change in Other
expenses
2013-14 319.35 100
2014-15 397.07 124
2015-16 483.34 151
2016-17 613.26 192
2017-18 191.78 60
Analysis:-
The above table shows the ratio of change in other expense with respect to 2013-14. Where the
first column shows the year for the period of five years ranging from 2013-14 to 2017-18. The
second column shows the amount in crore of the relevant period and third column that is analysis
table where the percentage has been calculated by the use of above formula.as the base 2013-14
has been taken so its change will be constant or 100% as the other expenses increases for the
relevant period also gets increased.

Graph no. 4.20
Graph showing Percentage of change in other expenses
Interpretation:-
above diagram can observe that the other expenses gets increased as compared to 2013-14 where
it increases to 124% in 2014-15 , 151% in 2015-16 and again increases to 192% in 2016-17 and
but decreases to 133% in 2017-18.
100%
124%
151%
192%
60%
0%
50%
100%
150%
200%
250%
2013-14 2014-15 2015-16 2016-17 2017-18
Percentage
YEAR
Percentage of change in Other expenses

PROFIT/LOSS ANALYSIS:-
The excess of Total revenue over Total expenditure is called profit and same the reverse condition
is loss.
 When Total revenue > Total expenditure then, Total revenue – Total expenditure = Profit
 When Total revenue< Total expenditure then, Total revenue – Total expenditure = loss
Table no.4.21
Analysis of Profit/Loss
(Amt. in. crores.)
YEAR TOTAL REVENUE TOTAL EXPENSES PROFIT/LOSS
2013-14 11846.01 12276.67 -430.66
2014-15 13684.84 13536.84 148
2015-16 14857.41 14768.08 89.33
2016-17 16076.49 16273.6 -197.11
2017-18 18358.99 17736.57 622.42
Analysis:-
In the above table the data of 5 years have been presented the period ranging from 2013-14 to
2017-18 have been presented the data of Total revenue, Total expenses and Profit/Loss has been
shown, in the above analysis Total revenue comprises of Sale of HT (high tension) power, Sale
of LT power, Other operating income, Other income and Truing up subsidy (for the financial
year 2015-16) and Total expenses comprises of Purchase of power, Other operating expenses,
Employee benefit expenses, Other expenses, Finance costs and depreciation and amortization
expenses and profit/loss is computed by subtracting Total expenses from Total revenue. If the
result is positive then company have earned profit and if the result is negative then the company
have suffered loss.

Graph no. 4.21
Graph showing analysis of profit /loss
Interpretation:-
The above graph is prepared with reference to the table no.4.21. In the graph we can see the
fluctuating range of profit/loss for the period of 5 years where we can see that that the earning of
profit is not uniform throughout the year. As we can observe that in the year 2013-14 the
company have suffered the loss of Rs.430.66 crores and then in the year 2014-15 the company
have gained a profit of Rs.148 which get diminish in year 2015-16 to Rs.89.33 crores but again
in 2016-17 the company has suffered a loss of Rs.197.11 crores but the year 2017-18 there is
drastic increase in profit of Rs.622.42 crores.
-430.66
148
89.33
-197.11
622.42
-600 -400 -200 0 200 400 600 800
2013-14
2014-15
2015-16
2016-17
2017-18
Amt. in crs.
YEAR
2013-14 2014-15 2015-16 2016-17 2017-18
PROFIT/LOSS -430.66 148 89.33 -197.11 622.42
PROFIT/LOSS

Portion of profit in revenue
It show the portion of the profit in the total revenue of a particular year.
=
Profit/loss
Total revenue
× 100
Table no. 4.22
Table showing portion of profit in revenue
YEAR TOTAL REVENUE PROFIT/LOSS
PROPORTION OF
PROFIT IN REVENUE
2013-14 11846.01 -430.66 -3.64%
2014-15 13684.84 148 1.08%
2015-16 14857.41 89.33 0.60%
2016-17 16076.49 -197.11 -1.23%
2017-18 18358.99 622.42 3.39%
Analysis:-
The above table shows that the portion of the profit in the total revenue of a particular year where
the extract is taken from the period of 5 year from the period of 2013-14 to 2017-18 as the
company has incurred loss the portion (in percentage) is also in the negative and profit is there in
positive percent. The portion is calculated by using the above formula.

Graph no. 4.22
Graph showing portion of profit in total revenue
Interpretation:-
The above graph is prepared with reference of table no. 4.22 where the portion of the profit in the
revenue is calculated. As in the year 2013-14 the company has incurred a loss so the portion of
percentage is also in the negative figure i.e.-3.64% and as the company has incurred a profit in
2014-15 where the portion is 1.08% and again it continues with profit in 2015-16 with the
portion of 0.60% but in the year 2016-17 the company has incur loss with the portion of -1.23%
but again the company has incurred profit in 2017-18 with the portion of 3.39% in total revenue
-3.64%
1.08%
0.60%
-1.23%
3.39%
-4.00% -3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00%
2013-14
2014-15
2015-16
2016-17
2017-18
PERCENTAGE
YEAR
2013-14 2014-15 2015-16 2016-17 2017-18
Proportion of profit in revenue -3.64% 1.08% 0.60% -1.23% 3.39%
Proportion of profit in revenue

CHAPTER-5
FINDINGS, SUGGESTIONS & CONCLUSION
 Findings:-
1. The major part of revenue of BESCOM is through the sale of HT power, LT
power and other operating sources where HT means high tension power and LT
low tension power and other sources contributes for Fuse charges, reconnection
fees, public lighting maintenance connections, etc.
2. As the use of High tension power has been increased so the demand and supply of
such power has increased over a period of time in trend. This HT power is used
basically for manufacturing units, theatres, shopping malls, hospitals, etc.
3. As per the data of the BESCOM the LT is used comparatively more than the HT
power and over the period of time its sales has been increased which increases
from Rs.5859.17 crores to Rs.9877.18 crores, this type of supply can also be
called as household supply
4. There is quite great fluctuation has been seen in context of other operating income
where it went to negative figure in 2015 due to some deductions like provision for
withdrawal of revenue demand, withdrawal of revenue demand as credit
adjustment and credit adjustment through balance transfer system but later on it
has been drastically increased
5. Other income source in BESCOM arises from Rent, incentives received, profit on
sale of stores, profit on sale of fixed assets, Rebate for collection of electricity
duty, etc. The study shows that this expense has decline in mid then again it got
aroused.

6. The major expense for Bescom is purchase of the power as this service providing
company is involved in providing the electricity so it also has to purchase the
electricity basically this company purchase the electricity from KPTCL
(Karnataka power Transmission Company limited) which is also known as the
mother company for BESCOM, The purchase of electricity has increased over the
period of time in trend from 2013-14 onwards
7. Other operating expenses consists of the expenses like repairs and maintenance of
cables, buildings, network vehicle, freight charges, material cost variance, etc. this
type of expenses can be understood as expense incurred in support of providing
the services where this expense from the data extract has been increased except
during the year 2016-17
8. Employee welfare expenses is one of the important expenses for any type of
organisation, this expense is a type of expense which is paid to the employees
who are working in the organisation. Employees plays a very important role in
functioning of the organisation. So, a company pays salary, wages, allowance, etc.
to the employee. This expense has increased over a period of time because the
number of employees has been increased and due to inflation the allowance of
existing employees has to be increased over the period of time.
9. Finance cost consists of the expenses related to the expense like interest,
borrowing cost, etc. which arises due to loan either short term or long term taken
by the company and its compulsion by them to pay the loan and over a period of
time this expense has been increased due to increase in amount of loan borrowed
by the company from time to time.
10.The decrease in value of fixed assets acquired by the company due to wear and
tear ,depletion, erection is known as depreciation and amortization expenses this
expense also has been increased over a period of time due to acquisition of more
number of plant, property and equipment (fixed assets)

11. Other expenses consists of the expenses which are other than the above mentioned
expenses the expenses like rent, postage, travel expenses, advertisement, etc.
These expenses over the period has been increased but it got decreased in the FY
2017-2018.
12. In the year 2014-15 the company have received government grants which has not
been taken to make the data more reliable with the topic i.e. Revenue income and
expenditure analysis.
13. The earning of the profit is not uniform as there is the huge fluctions due to
increase in the expenses and income

Suggestions:-
1. There is increase in purchase of electricity out of which maximum power is going to be
wasted. So, the company should purchase optimum power required.
2. The other operating expenses has been increased to 175% which has to be reduced.
3. Finance cost of the company has been increased to 627% as compared to five years
which is a bad sign for the company that company has huge amount of debt from the
outsider which has to be repaid as fast as possible.
4. There is increase in depreciation and amortization expenses which shows that company
has acquired too much fixed assets which may not be required.
5. The BESCOM should formulate the strategy to use the assets more efficiently in order
to generate more revenue.
6. Operating expenses, collectively to be reduced.
7. The company should perform in such a way that the profit should be in uniformity.

Conclusion:-
As the income of the company has increased it has fetch return to the company which has led to
good return to the investors. The Bescom has taken the advantage of generating revenue from
operation due to single service provider as a monopoly market. The company is getting good
amount of revenue from the sale of HT (High tension power) and LT (Low tension
power).Expenses which are increased should be decreased by the proper planning by the
management. The overall performance of bescom is good because all the Stakeholders
(Shareholders, government, Employees, Customers, and Society) are satisfied by the working
and services by BESCOM.

ACHARYA BANGALORE B SCHOOL
BIBLOGRAPHY
BOOKS
 Accounting- module 2 (CA intermediate) – ICAI
 Financial Management.-Shashi K.Gupta, R.K. Sharma
FINANCIAL STATEMENTS OF THE BESCOM
 Financial year 2017-18
WEBSITES:-
 www.bescom.org
 www.wikipedia.com
 www.google.com
 www.kerc.org
 www.kptcl.org
 https://corporatefinanceinstitute.com/resources/knowledge/accounting/expen
diture/
 https://bescom.org/annual-report/

ACHARYA BANGALORE B SCHOOL
ANNEXURE
Financial statements
“BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED”
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST
MARCH 2013-14
Amount in (Rs)
SI
NO PARTICULAR CURRENT YEAR
Or as at 31.3.2014
PREVIOUS YEAR
Or as at 31.3.2013
1 Revenue from operations 116173534966 107836238280
2 Other incomes 2286651298 3158325200
TOTAL REVENUE 118460186263 110994563480
3 Expenses
Purchase of power 107027522860 107872466281
Other operating expenses 516567266 442714679
Employee benefits expenses 7532777251 7391203608
Other expenses 3193464028 3486912897
Finance costs 3234543618 2086265546
TOTAL EXPENSES 121504875023 121279563011
4
Profits before depreciation, Prior period Items,
exceptional items, extraordinary items, Income
Tax (1+2-3)
-3044688760 -10284999531
5 Depreciation 1261825520 1187738624
6
Profit/(loss) before Prior period items,
exceptional and extraordinary items and income
tax (4-5)
-4306514280 -11472738155
7 Exceptional items {expenses(+)/ income(-)} 434992916 -1161699618
8
Profit/(Loss) before Prior period items,
extraordinary items and Tax (6-7)
-4741507196 -10311038537
9 Prior period items–{Expenses(+)/ income(-)} 306738538 175247529
10
Extraordinary & Prior period items {Expenses (+)/
income (-)}
5245300000 5808106084
11 Profit /(Loss) before Tax (8-9) 810531342 -4327684.924
12 Income Tax Expenses:
(a) Current tax expenses 49500000
13 Profit/(Loss) from continuing operations (10-11) 761031342 -4327684924
14 Profit/(Loss) from discontinuing operations
15 Profit/(Loss) for the year (12+13) 761031342 -4327684924
16 Earnings per equity share of Rs.10 each
Basic 1.39 (7.91)

A study on REVENUE INCOME AND EXPENDITURE ANALYSIS ON BESCOM

A study on REVENUE INCOME AND EXPENDITURE ANALYSIS ON BESCOM

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