The document analyzes the financial statements of Bangalore Metropolitan Transport Corporation (BMTC) for the year 2012-13. It finds that in 2012, BMTC's capital and internal resources, fixed assets, reserves, and liabilities decreased. Cash and balances improved. Inventories decreased and net profit decreased from the previous year. Comparative, common-size, and trend analysis were conducted on BMTC's financial statements. The analysis revealed decreases in certain areas and provided suggestions to improve debt recovery, utilization of loans, and profits by reducing operating costs.

1. P SE AT
RE NT ION
ON
“ANAL
YSIS OF F
INANCIAL ST E E ”
AT M NT
AT B
ANGAL
ORE M T
E ROP IT
OL AN T
RANSP
ORT
CORP
ORAT
ION, B T 2012-13
M C,
BY,
SYEDA ASFA TABASSUM
11ACCMA076
M.B.A
A.I.M.S

2. Daily (31.03.2013)
•We own
6427 buses
•We operate
6189 bus schedules
• We perform
12.98 lakh service kms
• We make
80825 bus trips
• We earn
Rs 4.19 crore
• We carry
48.00 lakh passengers
Infrastructure
Bus Depots –
39 Bus stations – 50
Man power deployment: 33918
Bus staff ratio: 5.3

3. INTRODUCTION ABOUT THE TOPIC
 Financial statement analysis is largely a study of relationship among the various
financial factors in a business as disclosed by a single set of statements and
statements.
 It is a process of evaluating the relationship between component parts of a
financial
statement to obtain a better understanding of a firm's position and performance.
Financial statements analysis is an attempt to determine the significance and
meaning of the financial statement data so that forecast may be made of the future
earnings,
 Ability to pay interest and debt maturities (both current and long term) and
profitability of a sound policy.

4. REVIEW OF LITERATURE
In the words of myers, “financial statement analysis is largely a study of
relationship among the various financial factors in a business as disclosed by a
single set of statements, and a study of the trend of these factors as shown in a
series of statements”.
In the words of mettcalf and titard, “ analyzing financial statements is a process
of evaluating the relationship between component parts of financial statement to
obtain a better understanding of a firm’s position and performance”.
The techniques or methods of financial statements analysis adopted for
the purposes of study at b.m.t.c are as follows
i. Comparative Financial Statement Analysis.
ii. Common Size Financial Statement Analysis.
iii. Trend Percentages Or Trend Ratios.

5. OBJECTIVES OF THE STUDY
The study has the following objectives. They are:
To analyze the financial statements to find out the firm's
financial position.
To study the overall financial performance of the firm.
To find out the operating strengths and weakness of the
firm.
To know the earnings capacity of the firm.

6. METHODOLOGY OF THE STUDY
The study is based on the various data provided by the company and data
collected from the internet and reports, which could be studied and
interpreted.
Primary data:This data was generated in the investigation according to the needs of the
problem in hand i.e., personal interview method.
Secondary data:Secondary data means data that are already available in the organization.
Published data will be available in Magazines, journals, books and reports
by management, public records.

7. SAMPLING
 The entire unit is considered as a sample bearing no connection with other
units of the industries.
Further emphasis has been given only to assessment of working capital and
ratios connected with it in finance department.
This sampling enabled the researcher to concentrate her attention upon a
relatively small number of people and hence, to devote more energy to ensure that
the information collected from them is accurate.
The researcher used a Non-probability sampling method, where no particular
method for selecting the units of the sample is adopted.
The basis of selection was simply opportunity, convenience and purpose.

8. LIMITATIONS OF THE STUDY:
The study would be subjected to the following limitations.
The study would be based on the annual reports of the company.
The study concentrates only with the financial analysis.
The project period is short due to lack of time.
There are some facts and figures which are considered to be
confidential and hence complete data is not available.
The study would be based on information given by company
officials.

9. Summary of Analysis
Analysis of financial statements means splitting up or regrouping of
the figures found in the financial statements into the desired
homogeneous and comparable component parts. From the study at
B.M.T.C, the following analysis has been done Comparative financial statement analysis.
 Common size financial statements analysis.
 Trend percentages or trend ratios.

10. Findings
It is revealed from balance sheet that the capital internal
resources had decreased in 2012.
Fixed assets were decreasing.
Reserves were decreased.
Liabilities were also decreased in 2012.
Improved cash and balance in the company.
Inventories were decreased.
Net profit was decreased in current year.

11. Suggestions
A good plan to work Debtors Recovery has to be
maintained to reduce the Bad Debt of the firm, which
is 5 lakhs in the year 2009-10.
Firm should have made a plan for the effective
utilization of borrowed loan in the year 2010.
Net profit has to improve by reducing operating cost.
The company should maintain constant reserves as it
is fluctuating year by year

12. Learning
The Corporation has recorded significant improvement on the financial
front.
The analysis of the studies indicated that B.M.T.C is in good position in
maintaining the total assets.
There was decrease in the net profit in 2012 as there was decrease in
non-operating incomes.
Increase in the cost of spare parts, tyres, other consumables etc., on
account of escalation in prices.
During the year under report it has realised Traffic Revenue of Rs.
121123.53 lakh as against Rs. 101229.09 lakh realised during 2009-10
showing 19.6% growth.
Added to this, the Corporation has realised Rs.11810.98 lakh by way of
revenue from other sources during the year under report as against Rs.
11803.57 lakh realised during previous year.