Professional Documents
Culture Documents
“Calculation
Calculation of Working Capital ”
Of
Submitted to : Submitted by
Mrs. Ritu Singh Praveen Mishra
(HOD) MBA MBA (Finance)
III sem
CONTENTS
Acknowledgement
Executive Summary
Chapter-1 Introduction
1.1. Overview of the BSNL 1
1.2. Objectives of the study 2
1.3. Profile of the Organisation 3
o Overview of BSNL Gwalior Circle 6
o Vision, Mission & objectives 7
o Products 8
o Management Profile 9
o Fact Sheet 10
o Revenues Strategies 11
o Policy of Accounting and finance 12
1.4. Comparative Study 18
1.5. SWOT Analysis 20
In order to acquire myself to the task of the organization and to analyze them,
I met staff who helped by their kind co-operation and guidance. During the training
they have been giving the practical knowledge.
I would be special thank to our college faculty Mrs. Ritu Singh (HOD),
Mr. Rakesh Rajput, Mr. Sudeep Shrivastava and Ms. Jyoti Jain under
supervision this topic. This Acknowledgement would be incomplete if I fail to
express my deep gratitude towards all the facility of NRI College of Management
who gave me a lot of support and guidance.
Last but not least I would be special gratitude to Mr. Mahendra Sikarwar and
our all friends who heartening me to complete this project.
EXECUTIVE SUMMARY
This project is based on the annual reports of the Bharat Sanchar Nigam Limited. It
is done to find out whether the BSNL are improving our capital structure or not.
Chapter 1 includes the introduction of the company wherein I told about the
Objectives of the study and profile of the Bharat Sanchar Nigam Limited.
Chapter 2 includes the Research Methodology wherein I have discussed the Research
Design and Various sources of the Data Collection.
Chapter 3 includes the Data analysis and Findings wherein I have analyze the data
collected from the departmental records, annual reports and web site records.
Chapter 4 represents the conclusion and the suggestions based on the departmental
records and annual report.
Chapter 1
Introduction of BSNL
Type Communication Service Provider
Website www.bsnl.in
BSNL Broadband
BSNL has been asked to add 108 million customers by 2010 by Former Indian
Communications Minister Thiru Dayanidhi Maran. With the frantic activity in
the communication sector in India, the target appears achievable, however due to
intense competition in Indian Telecom sector in recent past BSNL's growth has
slowed down.
BSNL is pioneer of Rural Telephony in India. BSNL has recently bagged 80% of
US$ 580 m (INR 2,500 crores) Rural Telephony project of Government of India.
Challenges
During Financial Year 2007-2008 (From April 01, 2006 to March 31, 2007)
BSNL has added 9.6 million new customers in various telephone services taking
its customer base to 64.8 million. BSNL's nearest competitor Bharti Airtel is
standing at a customer base of 39 million. However, despite impressive growth
shown by BSNL in recent times, the Fixed line customer base of BSNL is
declining. In order to woo back its fixed-line customers BSNL has brought down
long distance calling rate under OneIndia plan, however, the success of the
scheme is not known. However, BSNL faces bleak fiscal 2006-2007 as users
flee, which has been accepted by the CMD BSNL.
Access Deficit Charges (ADC, a levy being paid by the private operators to
BSNL for provide service in non-lucarative areas especially rural areas) has been
slashed by 37% by TRAI, w.e.f. April 01, 2007. The reduction in ADC may hit
the bottomlines of BSNL.
Mission
• To provide world class State-of-art technology telecom services to its
customers on demand at competitive prices.
• To Provide world class telecom infrastructure in its area of operation and to
contribute to the growth.
Objective
MP Telecom looks over the management, control and operation of the telecom
network with the following aims and objective
• To build a high degree of customer confidence by sustaining quality and
reliability in service.
• To upgrade the quality of telecom service to international level.
• Provision of telephone connections on demand in all the villages of M.P.
• Expansion of new services like Internet, Intelligent Network, ISDN, Internet
Telephony, Video Conferencing, Broadband etc.
• Popularize Broadband Services and to be on-demand in the whole State.
• Expansion of Cellular Mobile Telephone to all towns.
• To open Internet Kiosks (Cafe's) at all Block Head Quarters.
• To improve the quality of present services being given to the subscribers.
• To open more Customer Service Centers and upgrade the existing Customer
Service Centers for better and friendly Customer care.
• Modernize PSTN network by making RSUs & AN-RAX.
• Plantation of Trees to make environment Clean & Green.
• To raise necessary financial resources for its developmental needs.
• To increase accessibility of services, by providing a large number of Local and
NSD/ISD Public Call Offices (PCOs) so as to reach out to the masses.
Products
• BSNL LANDLINE
• BSNL MOBILE
POSTPAID
PREPAID
UNIFIED MESSAGING
SMS & BULK SMS
• BSNL WLL
• INTERNET SERVICES
NETWORK
BROADBAND
TYPES OF ACCESS
WI-FI
CO-LOCATION SERVICE
BSNL WEB HOSTING
INTERNET TARIFF
DIAL UP INTERNET
• BSNL BROADBAND
• BSNL MANAGED NETWORK SERVICES
• BSNL MPLS-VPN
• ISDN
• LEASED LINE
• INTELLIGENT NETWORK
FREE PHONE SERVICE
PREMIUM RATE SERVICE
INDIA TELEPHONE CARD
VIRTUAL PRIVATE NETWORK (VPN)
VOICE VPN
UNIVERSAL NUMBER
UNIVERSAL PERSONAL NUMBER
TELE VOTING
• VIDEO CONFERENCING
• AUDIO CONFERENCING
• I NET
• TELEX/ TELEGRAPH
• EPABX
EPABX
CENTREX
• HVNET
• TRANSPONDER
Management Profile
GM Telecom District
Mr. Prashant Trivedi
During the current financial year, the management based on physical verification
of fixed assets and inventory and reconciliation of various heads of assets and
liabilities in the subsidiary and general ledgers which has resulted into
increase/decrease in the following assets and liabilities taken over as on 01st October
2000 amounting to net reduction in the assets of Rs. 5,910 lakh (P.Y. - Rs. 25,452
lakh):
In pursuance of the Memorandum of Understanding dated 30th September
2000 executed between Government of India and BSNL, all assets and liabilities in
respect of business carried on by DTS and DTO were transferred to the Company
with effect from 01st October 2000 at a provisional value of Rs. 6,300,000 lakh and
up to previous financial year BSNL has identified net assets of Rs. 6,352,028 lakh
against it.
General Information
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Revenues Strategies
The telecom sector is the most competitive sector post liberalization. This has
resulted in a movement from growth based business model that emphasized growth in
numbers to profit-based model where the success is measured by margins. BSNL as
part of the transition has to adopt both cost reduction and revenue enhancement
measures, which would directly impact profitability.
It is evident that there is a declining trend in basic services and there is
stagnation in cellular revenues. Revenue maximization strategies will have two
components, one internal to the organization and the other external. The internal
aspect would involve an initiative for change of process, technology, organizational
structure etc. In this context, revenue assurance is the key to improving the bottom
line for BSNL. This is proactive strategy to capture all revenues due for the services
provided. Presently, BSNL generates bills through different softwares across the
zones of operation, which are disintegrated and provide only basic solutions. The
industry standard for revenue leakage is about 3 to 7% percent of revenue, which in
money terms translates to about Rs.2100 crores for BSNL. Therefore plugging
revenue leakages is just the first and most obvious part of a Revenue Assurance
initiative. The key concerns for BSNL for effective revenue realization are –
The delay in customer billing after activation
Time lag between calls generated and billed
Scope of fraud
Non-availability of uniform database.
Revenue Recognition
Income from services is accounted for on accrual basis and in conformity with
Accounting Standard – 9 of ICAI. Accordingly,
a) Revenue for all services is recognized when earned and are realizable at the
time of billing. Unbilled revenues from the billing date to the end of the
year are recorded as accrued revenue during the period in which the
services are provided. Provision is made in respect of bills considered to
be disputed (by the management), debts outstanding for more than two years
and for debts due for less than 2 years, to the extent considered necessary by
the management.
b) Installation Charges recovered from subscribers at the time of new
telephone connections are recognized as income in the first year of the
billing.
c) In terms of the arrangement between Department of Telecommunications
(“DoT”) and the Company, the charges for telecommunication services and
other infrastructural services provided by BSNL to DoT are neither being
billed nor provided for.
d) Sale proceeds of scrap arising from maintenance and project works are taken
into miscellaneous income in the year of sale.
e) Income from SIMs, recharge coupons of Mobile, Prepaid Calling Cards,
and Prepaid internet connection cards are treated as income of the year in
which the payment is received since the extent of use of these cards within the
financial year could not be ascertained.
f) Wherever there is uncertainty in realization of income, such as liquidated
damages, claims on Government Departments & local authorities etc., these
are recognized on collection basis.
g) The claims on account of reimbursement for provision of infrastructure,
operation and maintenance of Village Public Telephones (VPTs) and Rural
Household Connections (RDELs) receivable from U.S.O. fund are accounted
for as revenue on account of the fact that the claim for infrastructure cannot
be credited to the concerned asset account since the claim amount could
not be segregated asset wise.
Fixed Assets
a) Fixed assets are carried at cost less depreciation. Cost includes directly
related establishment and other expenses including employee remuneration
and benefits, directly identifiable to the construction or creation of the assets.
b) Expenditure on replacement of assets, equipments, instruments and
rehabilitation works is capitalized if, in the opinion of the management, it
results in enhancement of revenue generating capacity.
c) Assets are capitalized to the extent completion certificates have been obtained,
wherever applicable.
d) The cost of stores and materials at the time of issue to a project, is debited to
CWIP.
e) Apparatus and plants principally consisting of telephone exchanges,
transmission equipments and air conditioning plants etc. are capitalized as and
when an exchange is commissioned and put to use.
f) Cables are capitalized as and when ready for connection to the main system.
g) Intangible assets are stated at cost of acquiring the same less accumulated
depreciation / amortization.
Depreciation/Amortization
Depreciation is provided based on the Written Down Value method at the
rates prescribed in Schedule XIV to the Companies Act, 1956 except for
Subscriber Installation. The Subscriber Installation is depreciated over the useful life
of 5 years on Written Down Value method.
Assets costing up to Rs. 5,000 are depreciated fully in the year of
purchase. Similarly, partition works costing up to Rs. 2,00,000 are depreciated fully in
the year of construction.
The depreciation on machinery & tools used both for project and
maintenance work is charged to profit and loss account instead of capitalization.
All telephone exchange buildings, administrative offices and captive consumption
assembling premises/workshops are considered as normal building and not as
factory building. Accordingly depreciation is charged uniformly.
Intangible assets such as Entry License Fee for Telecom Service operations
are amortized over the license period (i.e. 20 years) and standalone computer software
applications are amortized over the license period subject to maximum of 10 years as
per straight line method.
Impairment Of Assets
Assets, which are impaired by disuse or obsolescence, are segregated from the
concerned assets category and shown as ‘Decommissioned Assets’ and provision
made for the loss, if any, due to the difference between their net carrying cost and the
net realizable value.
Investments
Long-term investments are carried at cost, after providing for any diminution in
value, if such diminution is of a permanent nature.
Inventories
Inventories are valued at cost or net realizable value as the case may be - cost
ascertained generally on weighted average method; obsolete/non moving inventories
are valued at net realizable value.
Manufacturing Expenses
Expenses incurred at Factory units are allocated to the cost of the manufactured
products.
Taxes on Income
Taxes on Income for the current period are determined on the basis of taxable
income and tax credits computed in accordance with the provisions of the Income
Tax Act, 1961.
In accordance with the AS-22, Deferred Tax Liability is recognized on the
timing differences between accounting income and the taxable income for the
period taking into consideration the contents of Accounting Standard Interpretations
3 and quantified using the tax rates in force or substantively enacted as on the
Balance Sheet date.
Deferred Tax Assets are recognized and carried forward to the extent there is a
virtual certainty that such deferred tax assets can be realized.
Provisions
Provisions are recognized when the Company has a present obligation as a result of
past events; it is more likely than not that an outflow of resources will be
required to settle the obligation; and the amount has been reliably estimated.
Contingent Liabilities
Liabilities, though contingent, are provided for if there are reasonable chances of
maturing such liabilities as per management. Other contingent liabilities, barring
frivolous claims, not acknowledged as debts, are disclosed by way of notes.
Earning Per Share
Earning Per Share ("EPS") comprises the Net Profit after tax (excluding extraordinary
income net of tax). The number of shares used in computing Basic & Diluted EPS is
the weighted average number of shares outstanding during the year.
Segment Reporting
The primary segment consists of ‘basic’ and ‘cellular’ services provided. The
manufacturing activities have not been treated as a separate segment since such
activities are essentially carried on as support service to other segments.
The following specific accounting policies have been followed for segment
reporting:
Segment Revenue includes service income and other income directly
identifiable with/allocable to the segment.
Income/expense, which relates to the Company, as a whole and not allocable
to individual business segment is included in “Un-allocable Corporate
Income/expense respectively”.
Expenses that are directly identifiable with/allocable to segments are
considered for determining Segment Results.
Segment Assets and Liabilities include those directly identifiable with the
respective segments. Un-allocable corporate assets and liabilities represent the
assets and liabilities that relate to the Company as a whole and not allocable to any
segment
Finance Policy of BSNL
Standards of Financial Proprieties
Ever officer incurring or authorizing expenditure from public funds should be guided
by high standards of financial propriety. Every officer should also enforce financial
order and strict economy at every step and see that all relevant financial rules and
regulations are observed, by his own officer and by subordinates disbursing officers.
Among the principles on which emphasis is generally laid are the following:
1. Every officer is expected to exercise the same vigilance in respect of
expenditure incurred from public moneys as a person of ordinary prudence
would exercise in respect of expenditure of his own money.
2. The expenditure should be prima-facie more that the occasion demands.
3. No authority should exercise its powers of sanctioning expenditure to pass
an order which be directly or indirectly to its own advantages.
4. Expenditure from pubic moneys should not be incurred for benefit of a
person or section of the people unless-
a. a claim for the amount could be enforce in a Court of Law, or
b. the expenditure is in pursuance of a recognised policy or custom.
5. The amount of allowances granted to meet expenditure of a particular type
should be so regulated that the allowances are not on the whole a source of
profit to the recipients.
6. The responsibility and accountability of every authority delegated with
financial powers to procure any item or service on Government account is
total and indivisible. Government expects that the authority a concerned
will have the public interest uppermost in its mind while making a
procurement decision. The responsibility is not discharged merely by the
selection of the cheapest offer.
7. Whenever called for, the concerned authority must place on record in
precise terms, the considerations which weighed with it while talking the
procurement decision.
1.4 Comparative Study Between Years 2008-2007:
During the current financial year, the management based on physical
verification of fixed assets and inventory and reconciliation of various heads of assets
and liabilities in the subsidiary and general ledgers which has resulted into
increase/decrease in the following assets and liabilities taken over as on 01st October
2000 amounting to net reduction in the assets of Rs.5,910 lakh (P.Y. - Rs. 25,452
lakh):
Figures in Lakhs of Rupees
Percentage
up to march up to march Absolute Change
Particulars 31, 2007 31, 2008 change Rs. (%)
Assets
The comparative balance sheet of the company reveals that during 2008
there has been on increase in final assets of Rs. 1224 lakh i.e. 0.02% while long
term liabilities to other side have relative increase by Rs. 4383 lakh and
contractor bill pay has increased by Rs 272 lakh. This fact depicts the policy of
the company is to purchase fixed assets from the long-term sources of finance
there by not affect the working capital.
Current assets have increased by Rs. 1261 lakh and advance of contractor
not increased on the other hand there has been an increase in inventories amount
Rs. 34 lakh. The current liabilities have increased by Rs. 4582 lakh i.e. 0.06%.
This further confirms that the company has revised long term finances.
WEAKNESSES:
• Non-optimization of network capabilities
• Poor marketing strategy
• Bureaucratic organizational set up
• Inflexibility in mindset (DOT period legacies)
• Limited number of value added services
• Poor franchisee 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 within organization
• Poor knowledge Management
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 initiatives
• 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
• Competition from private operators
• Keeping pace with fast technological changes
• Market maturity in basic telephone segment
• Manpower churning
• Multinational eyeing Indian telecom market
• Private operators 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 “OneIndia” rates
Chapter 2
Research Methodology
2.1 Statement of Problem:
The research is carried on in a proper planned and systematic manner.
The research was particularly based departmental research. We have to move
to various department and meet people which include their names and contact
numbers given by BSNL training and Planning department.
During the department we have to know about to departmental works by
explaining the working process of a particular department.
Each department presences section supervisors (SS) this SS will provide
various data of relative department and give opportunity to handling the
working process and resolve our doubts.
Methodology
Every project work is based on certain methodology, which is a way to systematically
solve the problem or attain its objectives. It is a very important guideline and lead to
completion of any project work through observation, data collection and data analysis.
2) Secondary Data:
Secondary data will consist of different literatures like books which are published,
articles, internet, the company manuals and websites of company- www.bsnl.com.
In order to reach relevant conclusion, research work needed to be designed in
a proper way.
This research methodology also includes:-
Familiarization with the concept of finance and its various merits, demerits.
Thorough study of the information collected.
Conclusions based on findings.
The Net WC being the difference between the current assets and current liabilities is a
qualitative concept. It indicates:
• The liquidity position of the firm
• Suggests the extent to which the WC needs may be financed by permanent
sources of funds
It is a normal practice to maintain a current ratio of 2:1. Also, the quality of current
assets is to be considered while determining the current ratio. On the other hand a
weak liquidity position poses a threat to the solvency of the company and implies that
it is unsafe and unsound. The Net WC concept also covers the question of judicious
mix of long term and short-term funds for financing the current assets.
All firms do not have the same WC needs .The following are the factors that affect the
WC needs:
1. Nature and size of business: The WC requirement of a firm is closely
related to the nature of the business. We can say that trading and financial
firms have very less investment in fixed assets but require a large sum of
money to be invested in WC. On the other hand Retail stores, for
example, have to carry large stock of variety of goods little investment in
the fixed assets.
2. Manufacturing cycle: It starts with the purchase and use of raw materials
and completes with the production of finished goods. Longer the
manufacturing cycle larger will be the WC requirement; this is seen mostly
in the industrial products.
3. Business fluctuation: When there is an upward swing in the economy,
sales will increase also the firm’s investment in inventories and book debts
will also increase, thus it will increase the WC requirement of the firm and
vice-versa.
4. Production policy: To maintain an efficient level of production the firm’s
may resort to normal production even during the slack season. This will
lead to excess production and hence the funds will be blocked in form of
inventories for a long time, hence provisions should be made accordingly.
Since the cost and risk of maintaining a constant production is high during
the slack season some firm’s may resort to producing various products to
solve their capital problems. If they do not, then they require high WC.
5. Firm’s Credit Policy: If the firm has a liberal credit policy its funds will
remain blocked for a long time in form of debtors and vice-versa.
Normally industrial goods manufacturing will have a liberal credit policy,
whereas dealers of consumer goods will a tight credit policy.
6. Availability of Credit: If the firm gets credit on liberal terms it will
require less WC since it can always pay its creditors later and vice-versa.
7. Growth and Expansion Activities: It is difficult precisely to determine
the relationship between volume of sales and need for WC. The need for
WC does not follow the growth but precedes it. Hence, if the firm is
planning to increase its business activities, it needs to plan its WC
requirements during the growth period.
8. Conditions of Supply of Raw Material: If the supply of RM is scarce the
firm may need to stock it in advance and hence need more WC and vice-
versa.
9. Profit Margin and Profit Appropriation: A high net profit margin
contributes towards the WC pool. Also, tax liability is unavoidable and
hence provision for its payment must be made in the WC plan, otherwise it
may impose a strain on the WC.
Also if the firm’s policy is to retain the profits it will increase their WC,
and if they decide to pay their dividends it will weaken their WC position, as the cash
will flow out. However this can be avoided by declaring bonus shares out of past
profits. This will help the firm to maintain a good image and also not part with the
money immediately, thus not affecting the WC position.
Depreciation policy of the firm, through its effect on tax liability and
retained earning, has an influence on the WC. The firm may charge a high rate of
depreciation, which will reduce the tax payable and also retain more cash, as the cash
does not flow out. If the dividend policy is linked with net profits, the firm can pay
fewer dividends by providing more depreciation. Thus depreciation is an indirect way
of retaining profits and preserving the firms WC position.
CASH REQUIRED FOR WORKING CAPITAL
For estimating the actual cash requirement you may follow the following two-step
procedure:
1. Estimate the cash cost of various current assets requirement: The cash
cost of a current asset is:
Value of current asset
(-) Profit element, if any, included in the value.
(-) Non-cash charges like depreciation, if any, included in the
value.
2. Deduct the spontaneous current liabilities from the cash cost of current
assets: A portion of the cash cost of current assets is supported by trade credit
and accruals of wages on expense, which may be referred to as spontaneous
current liabilities. The balance left after such deduction has to be arranged
from other sources
In 1997, the RBI permitted banks to evolve their own norms for assessment of
the Working Capital requirements of their clients.
Cash flow based computation of working capital requirement has been recommended
by the RBI for assessment of working capital requirement permitting the banks to
evolve their own norms for such assessment
However the reluctance to provide the cash budgets thereby revealing
additional information to the banks, has led to even larger companies shying away
from Cash Budget method of assessing Working Capital. Consequently Cash Budget
method is currently prevalent mainly in case of seasonal industries, construction
sector as well as other entities whose operations are linked to projects.
The firm must decide the quantum of transactions and precautionary balances to
be held, which depends upon the following factors:
The expected cash inflows and outflows based on the cash budget
and forecasts, encompassing long/short range cash needs of the
firm.
The degree of deviation between the expected and actual net cash flow.
The maturity structure of the firm’s liabilities.
The firm’s ability to borrow at a short notice, in case of emergency.
The philosophy of management regarding liquidity and risk of
insolvency
The efficient planning and control of cash.
OPTIMAL CASH BALANCE
Cash balance is maintained for transaction purposes and an additional amount may be
maintained as a buffer or safety stock. It involves a trade off between the costs and the
risk.
If a firm maintains a small cash balance, it has to sell its marketable securities
and probably buy them later more often, than if it holds a large cash balance. More the
number of transactions more will be the trading cost and vice-versa; also, lesser the
cash balance, less will be the number of transaction and vice-versa. However the
opportunity cost of maintaining the cash rises, as the cash balance increases.
KEY OF WORKING CAPITAL
(d) Net Operating Cycle : Gross operating Cycle Period – Payables Deferral
period
Payable Deferral Period =Avg. payables / Net credit purchases per day
8000000
6000000
R s (L ak h )
0
2005 2006 2007 2008
years
Interpretation
Above calculation shown in the year of 2008 the gross working capital (WC)
is Rs. 60,15,371 and the WC of the year 2005 Rs. 40,85,956. This statement say the
WC is increase in every year
On the Basis of Net Working Capital
5000000 4275724
3698826 3863857
4000000
Rs. (Lakh)
3000000 2425200
Net WC
2000000
1000000
0
2005 2006 2007 2008
Years
Interpretation
Above calculation shown in the year of 2008 the net working capital (WC) is
Rs. 42,75,724 and the net WC of the year 2005 Rs. 24,25,200. This statement say the
Net WC is also increase in every year.
Comparative Graph of Working Capital
Comparative Graph
Rs. in Lakh 8000000
6000000
Net WC
4000000
Gross WC
2000000
0
2005 2006 2007 2008
Years
4.2 Analysis:
From the calculation it was found that amongst year 2005 to 2008,
• In year 2005, financial position of BSNL is good based on year 2008.
• In year 2006, financial condition of BSNL is improved based on year 2005.
4.3 Conclusion:
After overhauling the Four years balance sheet of BSNL and all condition, I have to
reached this conclusion that;
• There was much good financial position of BSNL in year 2008 comparison
2005 and present year.
• Working process of BSNL is take very long time because of which, BSNL is
not being able to progress. So improved the working process.
• BSNL are facing the capital problem because of which financial position of
BSNL are affected.
• BSNL are paying more taxes. Because of paying more taxes, financial
position of BSNL are affected.
• There was earned more profit in year 2005 but year by year BSNL is on loss.
4.5 Suggestion:
The study has provided with the useful data from the respondents. There has a lot to
be recommended. Following are the recommendations:
• There should be improved the working process of BSNL. Because working
process of BSNL is take more time.
• Departments of BSNL do not have good coordination. So there should be
good coordination in departments of BSNL. If coordination will have good in
departments, than there will not has to face any problem in proper work.
• There should be good communication between each departments of BSNL.
• There should be computerized work in BSNL. But also at this time, paper
work are continue to see in many department.
• There should be increase in investment of BSNL. So that could be earned
more profit. Because, if investment will be high than profit will be earned
high.
Appendix
Bibliography
Bibliography
• Departmental Records