Historical Background of Finance:-: Definitions

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

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

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 firm

The 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 INTERESTED
Analysis 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 STATEMENT

AND 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- 2007- 2008- 2009- 2010- Nov- Nov-
07 08 09 10 11 10 11
Depot 28 30 30 33 35 35 36
1.Schedules 585 585 603 417 91 96 49
Added -216(P) - -23(P) -3(P) +0(P) +0(P) -15(P)
=369 138(P) =580 =414 =91 =96 =34
=447
2.Schedules 4116 4701 5304 5721 5812 5817
Operated +210(P) +72(P) +40(P) +37(P) +37(P) +37(P) 5861
=4326 =4773 =5344 =5758 =5849 =5854 +22
=5883
3.New 794 623 949 1218 58 58

Vehicles added -216(P) - -23(P) -3(P) +0(P) +0(P) 28
=578 138(P) =926 =1215 =58 =58 -15(p)
=485 13
4.Vehicles 208 232 294 664* 40** 29** 21

Scrapped
5.Vehicles 4396 4819 5502 6056 6074 6085 6078
Held +210(P) +72(P) +40(P) +37(P) +37(P) +37(p) +22(p)
=4606 =4891 =5542 =6093 =6111 =6122 6100
6.%age 3.0 2.8 2.8 2.4 2.5 2.4 2.9
Cancellation
7. Effective 9.14 10.29 11.13 12.10 12.55 12.47 12.76
Kms.
per day(Lakhs)
8.Traffic 200.13 218.99 248.63 277.34 339.78 340.14 386.52
Revenue
Per day (lakhs)
9.Veh. 231.7 227.2 227.9 225.6 222.1 221.6 224.7
Utilisation
(Kms.)
10.Fleet 94.0 93.6 94.5 93.7 92.3 92.0 93.2
Utilisation
(%age)
11.K.M.P.L 4.55 4.45 4.37 4.11 4.01 4.01 3.98
(HSD)
12.No.of 2813 2952 2761 2204 1865 1191 1541
Breakdowns
13.Rate of 0.09 0.08 0.07 0.05 0.04 0.04 0.05
Breakdowns/
10,000 Kms.
14.No. of 446 578 637 565 556 383 370
Accidents
15.Rate of 0.14 0.15 0.15 0.12 0.11 0.12 0.11
Accidents/
Lakh Kms.
16.Staff 20582 25542 27648 30996 32953 32544 32885
Position
(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.

BMTC BOARD OF DIRECTORS
SL. NO. NAME DESIGNATION
1. Sri. R. Ashok Chairman

Hon’ble Transport Miniter,
Govt. of Karnataka.
2. Sri. Syed Zameer pasha, IAS Official director

Managing director, BMTC.
Sri D. Venkateswara Rao, IAS

3. Principal secretary to Govt. Official director
Public sector enterprises,
M.S.Building, Bangalore
4. Sri siddaiah, IAS Official director

Commissioner, BDA,
Bangalore
Sri M.K. Shankerlingegowda,
5. IAS Official director
Secretary to Govt,
Transport Department,

M.S. Building, Bangalore
6. Sri. Anilkumar Jha,IAS Official director

Secretary to Govt.
Finance(expenditure),
Bangalore.
Sri. P. S Sandhu I.P.S., Official director

Director ( S, V & E ),
7. BMTC, Bangalore.
Sri. G.M Hayath, IPS Official director

Director ( P & E )
8. KSRTC, Bangalore.
9. Sri. Padam kumar Garg, IPS Official director

Director ( Project ),
BMTC, Bangalore.

10. Sri. Gaurav Gupta, IAS Official director

Managing Director,
KSRTC, Gulbarga.
11.
Ssri. Shankar Patil, KAS Official director
(Sr.Scale)
Managing Director,
NEKRTC, Gulbarga.
12. Sri. A.S. Patil, KAS (Senior Official director

Scale)
Managing director,
NWKRTC, Hubli.
RESEARCH METHODOLOGY
A 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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Historical Background of Finance:-: Definitions

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A STUDY ON FIANCIAL STATEMENT AND ANALYSIS AT BMTC BANGALORE.

Historical Background of Finance:-

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

Financial Statements Analysis - An Introduction

Analysis of Financial Statements

(ii) Balance Sheet or Position Statement

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

Measuring the profitability

 Indicating the trend of Achievements

 Assess overall financial strength

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 Assess solvency of the firm

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

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

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

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TECHNIQUES AND TOOLS OF FINANCIAL STATEMENT

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

(i) Cross-sectional analysis

(ii) Time series analysis

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(iii) Cross-sectional cum time series analysis

Comparative financial statements

1. Comparative Balance Sheet

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(i) Current financial position and

Comparative Income statement

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– To study the operating profits

COMMON SIZE STATEMENTS AND TREND ANALYSIS

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Definition of 'Trend Analysis'

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HISTORY OF TRANSPORATION IN INDIA

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Short distance public transportation

Long distance public transportation:-

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

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Bangalore Metropolitan Transport Corporation (BMTC) was

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

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

 Benchmarking & improving management efficiency

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

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3.New 794 623 949 1218 58 58

4.Vehicles 208 232 294 664* 40** 29** 21

(P) Private. Vehicles

* Including 180 Amanath vehicles & 139 Vehicles transferred to NWKRTC

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

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Growth during 2008-09:

AWARDS CONFERRED ON BMTC:-

INNOVATIVE TECHNOLOGY FOR EFFECTIVE

4.Vehicles 208 232 294 664* 40 29 21