Project New

A STUDY ON FIANCIAL STATEMENT AND ANALYSIS AT BMTC BANGALORE.

INTRODUCTION

MEANING OF FINANCE:- In simple words, Arrangement of funds is called finance. All organizations need finance for

operating its different activities. So, we can say finance is just like blood for survival the

business in changing economic environment. Fund, money, saving, cash, reserves and

assets are the basics of finance. Finance word is very deep and in modern age, this word is

also known Business Finance. To create equilibrium in business finance, we used different

tools like financial analysis, financial planning, ratio analysis, cash flow analysis, fund flow

analysis and working capital management analysis.

DEFINITIONS:-

“That business activity which is concerned with the acquision and conservation of capital

funds in meeting the financial needs of the business enterprise.”

-Wheeler

“Business finance can be broadly defined as the activity concerned with the planning

rising,controlling and administering the funds in the business.”

-Guthmann and Doughall

Historical Background of Finance:-

If we unlock its historical background, we find many facts that finance and financial

activities are inter-connected. Main aim of finance to get high margin on loan, in

beginning Banks started the transactions of depositing money at very low rate

of interest and then banks sell this money to the person who needs money immediately at

high rate of interest. Slowly, these banks developed both capital and money markets.

AISHWARYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH, BANGALORE. Page 1

http://www.svtuition.org/2009/06/money-market-way-of-indian-development.html

http://www.svtuition.org/2009/06/simplified-definition-of-capital-market.html

http://www.svtuition.org/2010/02/interest.html

http://www.svtuition.org/2010/01/bank.html

http://www.svtuition.org/2009/08/meaning-and-explanation-of-debt.html

http://www.svtuition.org/2010/02/working-capital-management-analysis.html

http://www.svtuition.org/2010/02/fund-flow-analysis.html

http://www.svtuition.org/2010/02/fund-flow-analysis.html

http://www.svtuition.org/2010/02/cash-flow-analysis.html

http://www.svtuition.org/2010/02/ratio-analysis.html

http://www.svtuition.org/2009/09/what-is-financial-planning.html

http://www.svtuition.org/2010/02/financial-analysis.html

http://www.svtuition.org/2010/02/assets.html

http://www.svtuition.org/2009/02/definition-of-reserves.html

http://www.svtuition.org/2010/01/cash-and-its-importance-and-control.html

http://www.svtuition.org/2010/01/saving.html

http://www.svtuition.org/2010/01/money.html

http://www.svtuition.org/2010/01/fund.html

http://www.svtuition.org/2010/01/fund.html


Now,other professional companies and organizations have started finance business. If we

take the example of Dubai financial market, it has traded shares more than $380 bn in last

year.

INTRODUCTION TO TOPIC

MEANING:-

We know business is mainly concerned with the financial activities. In order to ascertain

the financial status of the business every enterprise prepares certain statements, known as

financial statements. Financial statements are mainly prepared for decision making

purposes. But the information as is provided in the financial statements is not adequately

helpful in drawing a meaningful conclusion. Thus, an effective analysis and interpretation

of financial statements is required.

Financial Statements Analysis - An Introduction

Analysis of Financial Statements Analysis means establishing a meaningful relationship between various items of the two

financial statements with each other in such a way that a conclusion is drawn. By financial

statements we mean two statements :

(i) Profit and loss Account or Income Statement

(ii) Balance Sheet or Position Statement

These are prepared at the end of a given period of time. They are the indicators of

profitability and financial soundness of the business concern. The term financial analysis is

also known as analysis and interpretation of financial statements. It refers to the

establishing meaningful relationship between various items of the two financial statements


http://www.svtuition.org/2009/12/what-is-company-what-are-its-features.html


i.e. Income statement and position statement. It determines financial strength and

weaknesses of the firm.

Analysis of financial statements is an attempt to assess the efficiency and performance of

an enterprise. Thus, the analysis and interpretation of financial statements is very essential

to measure the efficiency, profitability, financial soundness and future prospects of the

business units. Financial analysis serves the following purposes :

Measuring the profitability

The main objective of a business is to earn a satisfactory return on the funds invested in it.

Financial analysis helps in ascertaining whether adequate profits are being earned on the

capital invested in the business or not. It also helps in knowing the capacity to pay the

interest and dividend.

Indicating the trend of Achievements Financial statements of the previous years can be compared and the trend regarding

various expenses, purchases, sales, gross profits and net profit etc. can be

ascertained. Value of assets and liabilities can be compared and the future prospects

of the business can be envisaged.

Assessing the growth potential of the business

The trend and other analysis of the business provides sufficient information

indicating the growth potential of the business.

Comparative position in relation to other firms The purpose of financial statements analysis is to help the management to make a

comparative study of the profitability of various firm. engaged in similar businesses.

Such comparison also helps the management to study the position of their firm in

respect of sales, expenses, profitability and utilising capital, etc.

Assess overall financial strength



The purpose of financial analysis is to assess the financial strength of the business.

Analysis also helps in taking decisions, whether funds required for the purchase of

new machines and equipments are provided from internal sources of the business or

not if yes, how much? And also to assess how much funds have been received from

external sources.

Assess solvency of the firmThe different tools of an analysis tell us whether the firm has sufficient funds to meet

its short term and long term liabilities or not.

PARTIES INTERESTEDAnalysis of financial statements has become very significant due to widespread

interest of various parties in the financial results of a business unit. The various

parties interested in the analysis of financial statements are :

(i) Investors : Shareholders or proprietors of the business are interested in the well

being of the business. They like to know the earning capacity of the business and its

prospects of future growth.

(ii) Management : The management is interested in the financial position and

performance of the enterprise as a whole and of its various divisions. It helps them in

preparing budgets and assessing the performance of various departmental heads.

(iii) Trade unions : They are interested in financial statements for negotiating the

wages or salaries or bonus agreement with the management.



(iv) Lenders : Lenders to the business like debenture holders, suppliers of loans and

lease are interested to know short term as well as long term solvency position of the

entity.

(v) Suppliers and trade creditors : The suppliers and other creditors are interested

to know about the solvency of the business i.e. the ability of the company to meet the

debts as and when they fall due.

(vi) Tax authorities : Tax authorities are interested in financial statements

for determining the tax liability.

(vii) Researchers : They are interested in financial statements in undertaking

research work in business affairs and practices.

(viii) Employees : They are interested to know the growth of profit. As a result of

which they can demand better remuneration and congenial working environment.

(ix) Government and their agencies : Government and their agencies need financial

information to regulate the activities of the enterprises/industries and determine

taxation policy. They suggest measures to formulate policies and and regulations.

(x) Stock exchange : The stock exchange members take interest in financial

statements for the purpose of analysis because they provide useful financial

information about companies.

Thus, we find that different parties have interest in financial statements for different

reasons.



TECHNIQUES AND TOOLS OF FINANCIAL STATEMENTAND ANALYSIS

Financial statements give complete information about assets, liabilities, equity,

reserves, expenses and profit and loss of an enterprise. They are not readily

understandable to interested parties like creditors, shareholders, investors etc. Thus,

various techniques are employed for analyzing and

interpreting the financial statements. Techniques of analysis of financial statements

are mainly classified into three categories :

(i) Cross-sectional analysis

It is also known as inter firm comparison. This analysis helps in analyzing financial

characteristics of an enterprise with financial characteristics of another similar

enterprise in that accounting period.

For example, if company A has earned 15% profit on capital invested. This does not

say whether it is adequate or not. If we analyze further and find that a similar

company has earned 16% during the same period, then only we can make a

conclusion that company B is better. Thus, it turns into a meaningful analysis.

(ii) Time series analysis

It is also called as intra-firm comparison. According to this method, the relationship

between different items of financial statement is established, comparisons are made

and results obtained. The basis of

comparison may be :

– Comparison of the financial statements of different years of the

same business unit.

– Comparison of financial statement of a particular year of different

business units.



(iii) Cross-sectional cum time series analysis

This analysis is intended to compare the financial characteristics of two or more

enterprises for a defined accounting period. It is possible to extend such a

comparison over the year. This approach is most effective in analyzing of financial

statements.

The analysis and interpretation of financial statements is used to determine the

financial position. A number of tools or methods or devices are used to study the

relationship between financial statements. However, the following are the important

tools which are commonly used for analyzing and interpreting financial statements .

Comparative financial statements

Common size statements

Trend analysis

Ratio analysis

Funds flow analysis

Cash flow analysis

Comparative financial statements

In brief, comparative study of financial statements is the comparison of the financial

statements of the business with the previous year’s financial statements. It enables

identification of weak points and applying corrective measures. Practically, two

financial statements (balance sheet and income statement) are prepared in

comparative form for analysis purposes.

1. Comparative Balance Sheet

The comparative balance sheet shows the different assets and liabilities of the firm

on different dates to make comparison of balances from one date to another. The

comparative balance sheet has two columns for the data of original balance sheets. A

third column is used to show change



(increase/decrease) in figures. The fourth column may be added for giving

percentages of increase or decrease. While interpreting comparative Balance sheet

the interpreter is expected to study the following aspects :

(i) Current financial position and

Liquidity position

(ii) Long-term financial position

(iii) Profitability of the concern

(i) For studying current financial position or liquidity position of a concern one

should examine the working capital in both the years. Working capital is the excess

of current assets over current liabilities.

(ii) For studying the long-term financial position of the concern, one should examine

the changes in fixed assets, long-term liabilities and capital.

(iii) The next aspect to be studied in a comparative balance sheet is the profitability

of the concern. The study of increase or decrease in profit will help the interpreter to

observe whether the profitability has improved or not. After studying various assets

and liabilities, an opinion should be formed about the financial position of the

concern.

Comparative Income statement

The income statement provides the results of the operations of a business. This

statement traditionally is known as trading and profit and loss A/c. Important

components of income statement are net sales, cost of goods sold, selling expenses,

office expenses etc. The figures of the above components are matched with their

corresponding figures of previous years individually and changes are noted.



The comparative income statement gives an idea of the progress of a business

over a period of time. The changes in money value and percentage can be determined

to analyze the profitability of the business. Like comparative balance sheet, income

statement also has four columns. The first two columns are shown figures of various

items for two years. Third and fourth columns are used to show increase or decrease

in figures in absolute amount and percentages respectively. The analysis and

interpretation of income statement will involve the following :

– The increase or decrease in sales should be compared with the increase or decrease

in cost of goods sold.

– To study the operating profits

– The increase or decrease in net profit is calculated that will give an idea about the

overall profitability of the concern.

COMMON SIZE STATEMENTS AND TREND ANALYSIS

The common size statements (Balance Sheet and Income Statement) are shown in

analytical percentages. The figures of these statements are shown as percentages of

total assets, total liabilities and total sales respectively. Take the example of Balance

Sheet. The total assets are taken as 100 and different assets are expressed as a

percentage of the total. Similarly, various liabilities are taken as a part of total

liabilities.

Common size balance sheet

A statement where balance sheet items are expressed in the ratio of each asset to total

assets and the ratio of each liability is expressed in the ratio of total liabilities is

called common size balance sheet. Thus the common size statement may be prepared

in the following way.



– The total assets or liabilities are taken as 100

– The individual assets are expressed as a percentage of total assets i.e. 100 and

different liabilities are calculated in relation to total liabilities.

Definition of 'Trend Analysis'

An aspect of technical analysis that tries to predict the future movement of a stock

based on past data. Trend analysis is based on the idea that what has happened in the

past gives traders an idea of what will happen in the future.

Trend analysis is used to predict a trend such as a bull

market so that investors can ride that trend until data suggests a trend reversal (e.g.,

bull market to bear market). Trend analysis is helpful because moving with trends,

as opposed to against them, can lead to profits for an investor.



INDUSTRY PROFILE

HISTORY OF TRANSPORATION IN INDIA

Transportation system is an important part of the every nation's economy. As India has an

area of 3,287,240 km2 and an estimated population of 1,028,737,436, so in India Transport

is both necessity as well as a convenience. Today India has many sources of transportation

by land, water and air. But due to low GDP of India access to these sources of transport has

not been uniform. Public transport still remains the primary mode of transport for most of

the population, and India's public transport systems are among the most heavily utilized in

the world. In India public has their owned vehicle such as scooter, car, motorcycle etc. .

The other main transportation sources in local are:

Bicycle : Bicycle is the India’s most economical and common source of transport in local area. Even

in world, India is the second largest producer of bicycles. More than 50% of India

households owned bicycle.

Cycle Rickshaw : In India, It was introduced in 1940. It is a tricycle on which two people can seat

comfortably and a person pedals from the front. But now, in large cities these are banned

for causing traffic congestion.

Trams : It is the advent of the British, introduced in many cities of India. But still now it is used

only in Kolkata. The national Calcutta tramways Company processes to upgrade tramway

network.

Short distance public transportation



Buses : In India more than 85% of public travel in buses to move in short distances

areas like one city to another. In India most of the buses are run by government

owned state transport corporation. It is a cheap and convenient source of

transportation.

Auto Rickshaws : An auto rickshaw is a three wheeler vehicle. It has a small cabin, for the deriver

in the front and a seat for passenger in the rear. It is generally used by public if

there is no bus service to go at specific location in local area.

Taxi : In India mostly traditional taxicabs in India are Premier Padmini or Ambassador

Cars. But now cars such as Tavera, Esteem, Mahindra Logan, Toyota Innova,

Tata Indigo etc. used as taxi operator. This is costly source of transportation in

local area.

Rail : In present the suburban railways services are in metro cities like Mumbai, Kolkata, Chennai

and Delhi. In Delhi, presently three metro lines are operational and more under operation.

Metro system is also under construction in Hyderabad, Chennai, Ahmadabad and Mumbai.

Long distance public transportation:-Railway : In India rail services introduced in 1853. More than 18 million passengers have used

railway transportation. The rail network covers 6,909 stations over a total route length of

around 63,465 km. The railway department of India provides more than 1.4 million

employments in India. Due to so much economical and convenient source of traveling,



most of India’s population travel for long distance by train.

Road : Road transportation is an economic backbone of country. India is the second largest country

in the world for consisting of large road transportation system. It has road network of

3,300,000 km, in which expressways is of 200km, national highways of 66,590km, state

highway of 131,899 km, major district roads of 467,763km and rural area roads of

2,650,000km.

Sea Transport : In India, a government-owned company manages offshore and other marine transport

infrastructure. It owns and operates about 35% of Indian tonnage and operates in practically

all areas of shipping business servicing both national and international trades. It has a fleet

of 79 ships of 27 lakh GT (48 lakh DWT) and also manages 53 research, survey and

support vessels of 1.2 Lakh GT (0.6 Lakh DWT) on behalf of various government

departments and other organizations. Personnel are trained at the Maritime Training

Institute in Mumbai, a branch of the World Maritime University, which was set up in 1987.

The Corporation also operates in Malta and Iran through joint ventures.



COMPANY PROFILE

Bangalore Metropolitan Transport Corporation (BMTC) was

formed, as an independent corporation with effect from 15-08-1997 after bifurcation

from Karnataka State Road Transport Corporation, Vide Go No. HTD/127/TRA/96

dated 7-8-1997, in which it consisted of two divisions headed by director (BTS) since

1993. Prior to that since from 1961 it was under MSRTC/KSRTC.

Cosequent upon the formation of BMTC, the organization was structured to function

under at two-tier system-viz., depots and the corporate office-with a view to have

closer liaison and better control besides reducing the avoidable intermediary posts

without

Vision:

To provide world-class transport services to the citizens of Bangalore Metropolitan Area

The Bangalore Metropolitan Transport Corporation came into existence in 1997 with the

sole aim of providing public transportation to the city and sub-urban areas of Bangalore.

The mission of the organization is to provide safe, reliable, clean and affordable travel to

everyone.

BMTC leads by example in being the only Bus Corporation within the city of Bangalore to

ferry more than 4.2 million commuters. The organization comprises a fleet of over 6092

buses covering an area encompassed with a radius of 36 kilometers from the city centre. In

a day BMTC operates on 583 city and 1785 sub urban routes, running 13 lakhs kilometers

and making 79445 trips. BMTC has a 32000 strong labour force to carry out different

aspects of BMTC bus operations.BMTC services the transport needs of the urban and sub-urban population in and around



Bangalore. And, despite the differentiated base of the commuting population, BMTC

reaches far and wide, in every nook and corner of the city making public transport an

attractive travel choice for everyone. BMTC's strong hold in the area of public

transportation in Bangalore is a testimony to its adoption of sound Management, HR,

Quality and Environmental policies.The corporation also strives to bring about increased passenger comfort by integrating

Intelligent Transport Systems (ITS) and Passenger Information system (PIS) in its daily

operations. This helps to monitor its services better and provide quality services. Public

feedback is also an important input in BMTC operations; a state of the art control centre is

envisioned for the near future which will be a one point contact for addressing customer

queries and feedback.sacrificing output or efficiency.

Mission:

To provide safe, affordable, eco friendly efficient bus services through:

Benchmarking & improving management efficiency

Enhancing its Technical & Operational efficiency

Developing, testing and adopting new processes to achieve efficiency in bus services

Fostering skill development and attitudinal changes among its employees

Valuing public feedback as an important input in improving operations to serve the

commuters better

Discharging it social responsibilities by:



1. Connecting all villages around the City with red board buses

2. Plying services to the city core to ease congestion with black board

buses

3. Running limited stop buses to save time of the commuters

4. Providing comfortable & fast moving 'Pushpak' buses

5. Chartering services to various industries, schools and colleges

6. Offering subsidized travel to the deserving sections of the society

7. Issuing passes to various segments of the society

8. Providing Eco-friendly Parisara Vahini buses

9. Running Vestibule buses to carry more passengers

10.Plying Mini buses to provide transport to remote sub urban areas

11.Upgrading Transport services by operating High End Volvo buses in

the city

12.Operating Vayu Vajra services to BIAL for airport commuting

13.Providing City sight seeing Curitiba buses

14. Special services to cater to the needs of ladies, and sick people



Operational Performance for the period from 2006-07 to 2011-12 (upto November-2011-Provisional)

Physical Performance:Parameter 2006-

072007-

082008-

092009-

102010-

11Nov-

10Nov-

11Depot 28 30 30 33 35 35 361.Schedules Added

585-216(P)

=369

585-

138(P)=447

603-23(P)=580

417-3(P)=414

91+0(P)

=91

96+0(P) =96

49 -15(P)

=34

2.Schedules Operated

4116+210(P)

=4326

4701+72(P)=4773

5304+40(P)=5344

5721+37(P)=5758

5812+37(P)=5849

5817+37(P)

=5854 5861

+22 =5883

3.New Vehicles added

794-216(P)

=578

623-

138(P)=485

949 -23(P)=926

1218 -3(P)

=1215

58+0(P)

=58

58+0(P) =58

28

-15(p)13

4.Vehicles Scrapped

208 232 294 664* 40** 29** 21

5.Vehicles Held

4396+210(P)

=4606

4819+72(P)=4891

5502+40(P)=5542

6056+37(P)=6093

6074+37(P)=6111

6085+37(p)=6122

6078+22(p)

61006.%age Cancellation

3.0 2.8 2.8 2.4 2.5 2.4 2.9

7. Effective Kms. per day(Lakhs)

9.14 10.29 11.13 12.10 12.55 12.47 12.76

8.Traffic Revenue Per day (lakhs)

200.13 218.99 248.63 277.34 339.78 340.14 386.52

9.Veh. Utilisation (Kms.)

231.7 227.2 227.9 225.6 222.1 221.6 224.7



10.Fleet Utilisation (%age)

94.0 93.6 94.5 93.7 92.3 92.0 93.2

11.K.M.P.L (HSD)

4.55 4.45 4.37 4.11 4.01 4.01 3.98

12.No.of Breakdowns

2813 2952 2761 2204 1865 1191 1541

13.Rate of Breakdowns/ 10,000 Kms.

0.09 0.08 0.07 0.05 0.04 0.04 0.05

14.No. of Accidents

446 578 637 565 556 383 370

15.Rate of Accidents/ Lakh Kms.

0.14 0.15 0.15 0.12 0.11 0.12 0.11

16.Staff Position

20582 25542 27648 30996 32953 32544 32885

(P) Private. Vehicles

* Including 180 Amanath vehicles & 139 Vehicles transferred to NWKRTC

** Including 10 vehicles transferred to NWKRTC & 8 Volvo Vehicles transferred to KSRTC.

.

Management:



The amended RTC Act 1982 provides for the management of the corporation

by Board of Directors. The board of the Bangalore Metropolitan Transport

Corporation as on 31st march 2009 consisted of 12 official Directors. The

government of Karnataka appoints the official Directors representing the state

government.

Administrative Setup:

The corporation is functioning with two-tier system of administration with

corporate office & depots. There were 30 Depots & two central workshops under its

jurisdiction as on 31-03-2009.

Growth during 2008-09:

BMTC is catering to the transport services in city & suburban areas of

Bangalore in a radius of about 40.4 kms & the area of operation is expanded from

3527 sq. kms to 5130 sq. kms in view of greater Bangalore. The operation have

improved during the year by adding 580 schedules. The fleet strength was increased

from 4891 to 5542, 977 vehicles ( 949 new vehicles & 28 private vehicles taken over

by BMTC ) were added, 23 private hired vehicles were curtailed & 294 aged vehicles

were scrapped from fleet during the year.

AWARDS CONFERRED ON BMTC:- The corporation has been conferred with the following awards during the year 2008-

2009.

Transport minister trophy for the state road transport undertakings with lowest

accident rate for the year 2005-06 (winner-urban category)

Transport Minister trophy for the state road transport undertakings with

lowest accident rate for the year 2006-07 ( winner-urban category)

Winner of minimum operational cost award for 2006-07 by ASRTU.



INNOVATIVE TECHNOLOGY FOR EFFECTIVE

TRANSPORT MANAGEMENT INITIATIVES: Information on BMTC website www.bmtcinfo.com

Bus route information and query on website.

Payment of salary to employees through electronic clearance system.

Online vehicles tracking and monitoring system using GPS-GIS technology on

500 vehicles.

Online registration of complaints for 12 hours in a day through call center

facilities for commuters through outsourced agencies.

Issue of passenger tickets through electronic ticket vending machines in 1489

buses on pilot buses.

Electronic LED based destination board in buses on pilot basis.

Online passenger information systems in Volvo buses.

EMPLOYEE WELFARE SCHEMES:-

Hosa Belaku scheme- scheme of providing financial assistance to employees

suffering from major illness and chronic diseases.

Uniform has been issued to administrative staff to maintain dress code.

Peer group initiative.

Entering into MOU with selected list of 39 hospitals for medical treatment for

employees and their dependants.

Voluntary Retirement scheme and welfare fund (VRS & WF) for distressed

employees.

Janatha group insurance scheme for accidental benefits to the employees, for

Rs 1.00 lakh for loss of life.


http://www.bmtcinfo.com/


BMTC BOARD OF DIRECTORS

SL. NO. NAME DESIGNATION

1. Sri. R. Ashok

Hon’ble Transport Miniter,

Govt. of Karnataka.

Chairman

2. Sri. Syed Zameer pasha, IAS

Managing director, BMTC.

Official director

3.

Sri D. Venkateswara Rao, IAS

Principal secretary to Govt.

Public sector enterprises,

M.S.Building, Bangalore

Official director

4. Sri siddaiah, IAS

Commissioner, BDA,

Bangalore

Official director

5.

Sri M.K. Shankerlingegowda,

IAS

Secretary to Govt,

Official director



Transport Department,

M.S. Building, Bangalore

6. Sri. Anilkumar Jha,IAS

Secretary to Govt.

Finance(expenditure),

Bangalore.

Official director

7.

Sri. P. S Sandhu I.P.S.,

Director ( S, V & E ),

BMTC, Bangalore.

Official director

8.

Sri. G.M Hayath, IPS

Director ( P & E )

KSRTC, Bangalore.

Official director

9. Sri. Padam kumar Garg, IPS

Director ( Project ),

BMTC, Bangalore.

Official director



10. Sri. Gaurav Gupta, IAS

Managing Director,

KSRTC, Gulbarga.

Official director

11.

Ssri. Shankar Patil, KAS

(Sr.Scale)

Managing Director,

NEKRTC, Gulbarga.

Official director

12. Sri. A.S. Patil, KAS (Senior

Scale)

Managing director,

NWKRTC, Hubli.

Official director



RESEARCH METHODOLOGYA research design is a logical and systematic plan prepared for directing an

research study. It constitutes the blue print for the collection, measurement and

analysis of data. It provides a systematic plan of procedure for the research to

follow.

1.Introduction:

It is a well known fact that one cannot arrive at the definite conclusion about the

financial health of an enterprise simply studying and scanning of the absolute

figures contained in the conventional form of financial statements namely revenue

statement and balance sheet.

2. Title of the project:

“ A STUDY ON FINANCIAL STATEMENT AND ANALYSIS AT BMTC

BANGALORE”.

3. Statement of the problem:

The BMTC has been in truth, emerged as an important segment of transport

industry. BMTC has occupied a momentous role in the economy in the terms of

meeting the requirements of the people related to transport industry. The

profitability position of the BMTC is adversely impacted.

4. Scope of the study:The study is conducted in BMTC central office, Bangalore. It is confined only to

the finance and accounts department of BMTC and further study has been

restricted to financial analysis through the financial ratios.



5. Literature review:The dissertation report titled “ A STUDY ON FINANCIAL STATEMENT AND

ANALYSIS AT BMTC, BANGALORE”. Is authentic and original work has not

been submitted to Bangalore university or any other university before.

6. Objectives of the study:1. To examine the overall financial performance of the selected unit.

2. To predict the financial health and viability of the unit in the years to come

with an objective to improve its operational efficiency and effectiveness,

productivity and profitability.

3. To understand the current approaches and methods of analyzing financial

statements.

4. To study the financial analysis.

5. To make overall financial performance of the BMTC.

6. To impact the practical knowledge on methods.

7. To offer recommendations.

7. Sources of data:-

PRIMARY DATA:-

Primary data is a data collected through gathering the information from different

department managers and officers of the company to get information about the

company and its activities.

Having face to face discussion with the company officials.



By taking guidance from company guide and staff members.

SECONDARY DATA:

Secondary data are those types of data, which have already been collected by some

other persons for their purpose and published secondary data are usually in the

shape of finished statements. Collection of secondary data have the advantages of

being less expensive and time consuming . for the present report following used.

Broachers

Previous year balance sheets

Website

Annual reports

8. Limitations of the study:All the possible care has been taken to collect the information and make the

study as authentic as possible. However it is subject to certain limitation. They

are as under.

The time constraint limited the scope of the study.

Based on limited information it is not possible to arrive at a proper

conclusion.



CHAPTERISATION

Chapter:-1 INTRODUCTION

Chapter:-2 INDUSTRY PROFILE

Chapter:-3 COMPANY PROFILE

Chapter:-4 RESEARCH METHODOLOGY

Chapter:-5 DATA ANALYSIS AND INTERPRETATION

Chapter:-6 FINDINGS,SUGGESTIONS AND CONCLUSIONS

ANNEXURE

BIBLIOGRAPHY

DATA ANALYISI AND INTERPRETATION



MEANING OF DATA ANALYSIS

The analysis of data is the most skilled task in the research process. It calls for the

researcher’s own judgment and skill. Analysis means a critical examination of the

assembled and grouped data for studying the characteristics of the object under study and

for determining the patterns of relationships among the variables relating to it.

MEANING OF INTERPRETATION

The interpretation of data is a very difficult task and requires a high degree of skill, care,

judgment and objectively.

The drawing of validly authentic inferences from the scientifically analysed data and

presenting these inferences unbiasly, is known as interpretation of data.


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