This document outlines a project report on Bharat Sanchar Nigam Limited (BSNL), a state-owned telecommunications company in India. The objectives of the study are to analyze BSNL's financial performance over five years, evaluate its financial position in terms of ratios, identify strengths and weaknesses, and suggest improvements. Key findings include increasing debt levels, declining revenues and profits, and high operating costs. Suggestions focus on improving efficiency, increasing revenue streams, maintaining assets, and conducting brand revitalization. The conclusion states that BSNL is facing financial difficulties but has potential to overcome challenges through management reforms.

1. A PROJECT
REPORT ON
BSNL
By
PEDA BABU VADIYALA
Central University of Karnataka
2015MBA0155
Internal guide:-
Dr. Ganapathi Sinnoor
Assistant professor of management
Central University of Karnataka
External guide:-
P.Srikanth
Junior Accounts Officer
BHARATH SANCHAR NIGAM LTD

2. OBJECTIVE OF STUDY
 To get practical knowledge.
 To analyze the financial changes over a period of
five years.
 To evaluate the financial position of the company in
terms of solvency, profitability, activity and
earnings ratios.
 To suggest effective measure in the existing system
of the company.
 To identify the financial strength and weakness of
the company.
 To have a practical experience over the learning
from classroom.

3. LIMITATIONS OF STUDY
 The study is restricted for a period of five years.
 Due to the inadequate time it is not possible to
analyze all aspects relevant to the study.
 The analysis is based on annual reports of the
company.
 Authorities were reluctant to reveal full information
about the working of the company.
 Only secondary data is used for analysis.
 The scope of the study is limited to the financial
data only. The conclusions are made by ignoring
various market and economic variables.

4. CAMPANY PROFILE
BSNL
Type State owned enterprise
Industry Telecommunication
Founded Incorporated in 2000
Head quarters New Delhi, India
Key people Anupan Shrivastava (Chairman & MD)
Products & services Telephone, internet, digital TV, IPTV,
fixed line.
Employees 216325 (as on 19th November 2015)
Total revenue ₹ 28645.20 crores (as on 31st march 2015)
Total assets ₹ 89300 crores (as on 31st march 2015)
Subscribers 85.29 millions
Market share 8.19% (as on 31st march 2015)
Web site www.bsnl.co.in

5. VISION
 To become the leading telecom service provider in
India with global presence
 To create a customer focused organization with
excellence in customer care, sales and marketing
 Leverage technology to provide affordable and
innovative telecom services / products across
customer segments

6. MISSION
 Leveraging technology to provide affordable and
innovative products/services across customer
segments
 Providing a conducive work environment with
strong focus on performance
 Establishing efficient business processes enabled
by IT

7. ORGANISATION STRUCTURE

8. BSNL TELECOM REVOLUTION

9. COMPETITORS

10. SWOT ANALYSIS
Strength
• Experienced telecom service provider
• Total telecom service provider
• Huge resources (financial & technical
pool)
• Huge customer base
• Most trusted telecom brand
• Transparency in billing
• Easy development of new services
• Copper in last mile can be used for easy
broadband development
• Huge optical fiber network and
associated bandwidth
Weakness
• Non-optimization of network capabilities
• Poor marketing strategy
• Bureaucratic organizational set up
• Inflexibility in mind-set (DOT period
legacies)
• Limited number of value added services
• Poor franchise network
• Legacy of poor service image
• Huge and aged manpower
• Procedural delays
• Lack of strategic alliances
• Problems associated with incumbency
like outdated technologies, unproductive
rural assets, social obligations, political
interference, poor IT penetration with in
organization
• Poor knowledge management

11. Contd..
Opportunities
• Tremendous market growing at 20 lac
customers per month
• Untapped broadband services
• Untouched international market
• Can capitalize on public sector image to
grab government's ICT initiates
• ITEB service markets
• Diversification of business to turn-key
projects
• Leveraging the brand image to source
funds
• Almost un-invaded VSAT market
• Fuller utilization of slack resources
• Can make a kill through deep penetration
and low cost advantage
• Broaden market expected from
convergence of broadcasting, telecom
and entertainment industry
Threats
• Completion from private operations
• Keeping pace with fast technological
changes
• Market maturity in basic telephone
segment
• Manpower churning
• Multinational eyeing Indian telecom
market
• Private operations demand for sharing
last mile
• Decreasing per line revenues due to
competitive pricing
• Private operators demand to do away
with ADC can seriously effect revenues
• Populist policies of government like “One
India” rates

12. FINDINGS
 The total current liabilities are more than current
assets.
 The debt equity ratio has shown a significant growth
from 0.090 in 2012-2013 to 0.073 in 2014-2015.
 The fixed asset to net worth ratio has been quiet
good from 0.38 in 2010-2011 to 0.61 in 2014-2015.
 Long term liabilities or borrowings have been
increased from 11340 crores in 2010-2011 to 12610
crores in 2012-2013.

13. Contd..
 The current ratio between current assets and
current liabilities has been fluctuating 0.89 in 2010-
2011, 0.75 in 2014-2015.
 The operating expenditure has reduced in
consecutive years from 36002 crores in 2010-2011
to 34900 crores in 2012-2013.
 Looking into the total revenue of 2011, revenue of
that year is 7% lesser than 2010. Which means that
additional investments made in 2010 was not
fruitful.
 The remuneration to staff of company cannot be
controlled .this is one of the reasons for net profits
decreasing year by year.

14. SUGGESTIONS
 It is high time for BSNL to improve their operating
efficiency. They should concentrate on increasing
both their operational revenues as well as other
revenues.
 They can consider for going for public issue and
debt securities.
 Depreciation is a significant charge against their
operating profit. So that the company should take
utmost good care in maintaining their fixed assets.
 The total revenues of BSNL have been reducing
year by year since 2010-2011.

15. Contd..
 They can provide corporate connections.
 BSNL should conduct a brand revitalization
campaign which can attract more new users as well
as maintain existing customers.
 BSNL need to be more competitive in terms of their
services offered.
 BSNL can explore other areas to improve revenue
generation.
 The root cause for existing financial crisis is the
unproductive investments. So every possible effort
should be made to maximize the utilization of
existing infrastructure and to create profitable
customer base.

16. CONCLUSION
 The study “financial statement analysis” at BSNL is done by using
some widely accepted tools. Within the constraints I believe that
the study served its purpose. It is understood that financial
statements of BSNL is worsening especially regarding their
operating income.
 It is expected that a huge number of retirements, around a lakh will
happen on coming years which will certainly help them to reduce
the cost of administration.
 BSNL needs to bring in large amount of changes especially in
marketing as a measure to increase the market share as well as
revenue.
 It is evident that BSNL as a prestigious company has well brand
image among the customers and can overcome the present
situation easily by adopting efficient management techniques.

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