Financial Analysis of MTNL

A PROJECT REPORT
FINANCIAL ANALYSIS OF MTNL
Submitted in partial fulfillment of the requirement for the

Award of Degree of
MASTER OF BUSINESS ADMINISTRATION
2014 2016
Under the Guidance of: Submitted by:

Ms. MONA KWATRA Priya Handa
(0289603914)
DEPARTMENT OF MANAGEMENT
MAHARAJA AGRASEN INSTITUTE OF TECHNOLOGY
(Affiliated to G.G.S.I.P. University)
Sector 22, Rohini, Delhi -110086
An ISO 9001:2008 Certified Institute

AICTE NBA Accredited Institute
STUDENT UNDERTAKING
Financial Analysis of MTNL
This is to certify that I, Priya Handa had completed the Project titled Financial
Analysis of MTNL under the guidance of Ms. Mona kwatra in the partial fulfillment
of the requirement for the award of degree of MBA from Maharaja Agrasen Institute of
Technology (Affiliated to G.G.S.I.P. University), New Delhi. This is an original piece of
work and I had neither copied nor submitted it earlier elsewhere.
Priya Handa
(028963914)
MBA
Dated -
2
CERTIFICATE FROM GUIDE
This is to certify that the project titled Financial Analysis of MTNL is an academic
work done by Priya Handa submitted in the partial fulfillment of the requirement for
the award of the Degree of MBA from Maharaja Agrasen Institute of Technology
(Affiliated to G.G.S.I.P. University), New Delhi under my guidance and direction. To
the best of my knowledge and belief the data and information presented by him/her in the
project has not been submitted earlier.
MONA KWATRA
3
ACKNOWLEDGEMENT
I have prepared this study paper for the Financial Analysis of MTNL Quite frankly, I
have derived the contents and approach of this study paper through discussions with
colleagues who are also the students of this course as well as with the help of various
Books, Magazines and Newspapers etc.
I would like to give my sincere thanks to a host of friends and the teachers who, through
their guidance, enthusiasm and counseling helped me enormously. As I think there will
always be a need of improvement. Apart from this, I hope this study paper would
stimulate the need of thinking and discussion on the topics like this one.
4
EXECUTIVE SUMMARY
The project selected by me is Financial Statements Analysis one of the most important
aims of this project is to identify the financial strength in weakness of the business by
properly establishing relationship between the items of financial statements.
The Indian telecom industry underwent a high pace of market liberalization and growth
since 1990s and now has become the world's most competitive and one of the fastest
growing telecom markets. The Industry has grown over twenty times in just ten years,
from under 37 million subscribers in the year 2001 to over 846 million subscribers in the
year 2013. India has the world's second-largest mobile phone user base with over 929.37
million users as of May 2014. It has the world's third-largest Internet user-base with over
137 million as of June 2014. In relation to the growth and prosperity of telecom sector
the study being conducted to analyze the financial soundness of the companies. A general
belief is that a firms operating performance depends on certain key financial factors viz.,
turnover, profit, asset utilization etc and the variables which are found in profit and loss
account and balance sheet of a firm have a direct or indirect relation with each other. By
establishing a close relationship between the variables, a firm can analyze its financial
performance in terms of liquidity, profitability, viability and sustainability. In order to
measure the performance, ratios, the indicators, are normally used to identify the
financial health of the firm. So the study concentrates on empirical approach towards
measuring financial soundness of the companies operating under one of the most
dynamic sector in Indian economy to identify key financial attributes of telecom
companies and their respective impact.
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality
of telecom services, expand the telecom network, and introduce new services and to raise
revenue for telecom development needs of Indias key metros Delhi, the political
capital and Mumbai, the business capital of India.
A distinction, being a government undertaking MTNL has proved its efficiency over the
years. It also ranked as a NAV-RATN company by the government of India.
The training report is the presentation of my observation at the MAHANAGAR

TELEPHONE NIGAM LIMITED.
5
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION..............................................................1-8
Introduction of Telecom over all Industry................................3
Statement of the Problem: ........................................................4
Players in the market.................................................................6
Financial Analysis of Telecom Industry of India & China
Introduction...............................................................................7
Objectives of the study8
CHAPTER -2: LITERATURE REVIEW...................................................9-12
Comparison..............................................................................12
CHAPTER -3: COMPANY ANALYSIS.....................................................13-35
Company profile about MTNL.................................................13
Corporate objective .................................................................13
Historical background..............................................................16
Corporate governance18
Finance.....................................................................................22
Disinvestment/global depository receipts................................23
Millennium telecom limited.....................................................24
Joint ventures............................................................................24
Mahanagar telephone Mauritius limited (MTML) ..................24
Market share of MTNL in total subscriber base ......................25
Average revenue per user (ARPU)...........................................27
Opex per subscriber..................................................................28
Capital employed cost per subscriber:......................................29
6
Financial statements and Significance.....................................30
Industry screener......................................................................32
Milestone..................................................................................33
CHAPTER -4: RESEARCH METHODOLOGY......................................36-37
Research design........................................................................36
Nature and sources of data.......................................................36
CHAPTER-5: DATA ANALYSIS...............................................................38-55
Ratio Analysis ..........................................................................39
o Liquidity ....39
o Activity...40
o Profitability.....41
o EBIT....42
o Interpretation....46
o On the basis of capital employed.44
o Interpretation46
Comparative Balance sheet and P&L..47
Common size Balance Sheet and P&L...................................49
Trend Lines................................................................................50
CHAPTER-6: CONCLUSION & IMPLICATIONS.................................54-56
CHAPTER-7: LIMITATIONS OF THE STUDY........................................57
BIBLIOGRAPHY......................................................................................................77
APPENDIX...........................................................................78-89
Annual Report, Balance Sheets............................................
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CHAPTER 1
INTRODUCTION
Mahanagar Telephone Nigam Limited (MTNL) is a telecommunication company. The
company provides telecommunication services including fixed telephone service, GSM
and CDMA based mobile service, internet, broadband, ISDN and leased line services. It
also offers value added services, enterprise services and intelligent networking services.
MTNL's enterprise services include leased circuits, web hosting, intelligent network,
NSDN and EPABX. The company's intelligent networking service comprise toll free
service, charges for premium toll free numbers, premium rate service, virtual private
network, televoting service, UAN service and virtual card calling service. MTNL is
headquartered in New Delhi, India.
Global Datas Mahanagar Telephone Nigam Limited (MTNL) - Financial and Strategic
SWOT Analysis Review provides a comprehensive insight into the companys history,
corporate strategy, business structure and operations. The report contains a detailed
SWOT analysis, information on the companys key employees, key competitors and
major products and services, as well as detailed financial ratios for the last 5 years.
This company report forms part of Global Datas Profile on Demand service, covering
worlds leading companies. Once purchased, Global Datas highly qualified team of
company analysts will comprehensively research and author a full financial and strategic
analysis profile of Mahanagar Telephone Nigam Limited , including a detailed SWOT
analysis. The report will be delivered in PDF format within 48 hours (excluding
weekends).
The profile will help you formulate strategies that augment your business by enabling
you understand your partners, customers and competitors better.
Scope
Business description A detailed description of the companys operations and business

divisions.
Corporate strategy GlobalDatas summarization of the companys business strategy.
1
SWOT analysis A detailed analysis of the companys strengths, weaknesses,

opportunities and threats.
Company history Progression of key events associated with the company.
Major products and services A list of major products, services and brands of the
company.
Key competitors A list of key competitors to the company.
Key employees A list of the key executives of the company.
Executive biographies A summary of the executives employment history.
Important locations and subsidiaries A list of key operational centers and subsidiaries
of the company, including contact details.
Detailed financial ratios for the past five years The latest financial ratios derived from
the annual financial statements published by the company with five-year history.
Interim ratios for the last five interim periods The latest financial ratios derived from
five quarterly/semi-annual financial statements published by the company during the
interim period.
Note: Some sections may be missing if the companys data is unavailable.
Reasons To Buy
Gain key insights into the company for academic or business research purposes.
Key elements such as SWOT analysis, corporate strategy and financial ratios and
charts are incorporated into the profile to assist your academic or business
research needs.
Identify potential customers and suppliers based on the analysis of the companys
business structure, operations, major products and services and business strategy.
Understand and respond to your competitors business structure and strategies

with GlobalDatas detailed SWOT analysis. It analyzes the companys core
strengths, weaknesses, opportunities and threats, providing you with an up-to-
date objective view of the company.
2
Examine potential investment and acquisition targets with this reports detailed
insight into the companys strategic, financial and operational performance.
Financial ratios presented for major public companies in the report include
revenue trends, profitability, growth, margins and returns, liquidity and leverage,
financial position and efficiency ratios.
Introduction of Telecom over all Industry
The India's telecommunication network is the second largest in the world based on the
total number of telephone users (both fixed and mobile phone). It has one of the lowest
call tariffs in the world enabled by the mega telephone networks and hyper-competition
among them. It has the world's third-largest Internet user-base with over 137 million as
of June 2012. Major sectors of the Indian telecommunication industry are telephony,
internet and television broadcasting. Telephone Industry in the country which is in an
ongoing process of transforming into next generation network, employs an extensive
system of modern network elements such as digital telephone exchanges, mobile
switching centers, gateways and signaling gateways at the core, interconnected by a wide
variety of transmission systems using optical fibre or Microwave radio relay networks.
The access network, which connects the subscriber to the core, is highly diversified with
different copper-pair, optic-fibre and wireless technologies. DTH, a relatively new
broadcasting technology has attained significant popularity in the Television segment.
The introduction of private FM has given a fillip to the radio broadcasting in India .
Telecommunication in India has greatly been supported by the INSAT system of the
country, one of the largest domestic satellite systems in the world. India possesses a
diversified communications system, which links all parts of the country by telephone,
Internet, radio, television and satellite. The total revenue of the Indian telecom sector
grew by 7% to 283,207 crore (US$51.54 billion) for 201011 financial year, while
revenues from telecom equipment segment stood at 117,039 crore (US$21.3 billion).
Telecommunication has supported the socioeconomic development of India and has
played a significant role to narrow down the rural-urban digital divide to some extent. It
also has helped to increase the transparency of governance with the introduction of e-
governance in India. The government has pragmatically used modern telecommunication
facilities to deliver mass education programmes for the rural folk of India. In India both
public sector and private sector shares substantial stake in telecom sector, generally the
3
new private player requires a high degree of asset allocation and heavy working capital
and existing ones allocates heavy funds for sustaining and improving their market share.
As the industry calls for huge fund allocation which makes necessary for the companies
to manage all financial affairs in well structured and organized manner to activate the
dormant financial allocations, financing the deficit or disposal of surplus. The major
factors have been identified as reason for affecting financial performance of telecom
companies are
Heavy capital investment.
High collection period.
Frequent policies from the side of government which fails forecasting and
estimations.
Substantial investment in after sales services
The above are the some key variables along with them high research and development
expenditures, continuous innovation expenditures, modification expenditures, etc
thrashes the solvency and profitability the companies. Therefore application of adequate
financial management is must manage and control the flow of funds efficiently which
helps the organizations to improve their solvency, profitability and performance.
Statement of the Problem:
The project selected by me is Financial Statements Analysis, one of the most important
aims of this project is to identify the financial strength in weakness of the MTNL by
properly establishing relationship between the items of financial statements. Finance is
the lifeblood and nerve center of a business. As circulation of blood is essential in the
human body for maintain life, finances is a very essential to smooth running of the
business. Generally in a lot of sectors it is visible that private sectors utilizes funds in
better manner as compare to public sector, the study is an effort to draw appropriate
conclusion. In India telecom industry represents an integral part of Indian economy.
Since the industry faces ups and downs over the period of time, the companies in the
industry have reported reduction in profit and in some rare cases even loss. As and when
the industry is caught in a vicious down cycle, the firms have rendered operations
unviable and they face threats to their viability and sustainability which directly impacts
4
their financial health and if the problem didnt get checked with in the given timeframe
by applying adequate financial management tool so it definitely affects the organization
from its depth.
In relation to the companys overall valuation, all of this demands a broad outlook on an
alert creativity that will influence almost all facts of the enterprise. As the importance of
finance is growing up in twenty first century, we cannot afford to ignore it.
Telecom is one of the fastest-growing industries in India. Today India stands as the
second-largest telecommunications market in the world. The mobile phone industry in
India would contribute US$ 400 billion in terms of gross domestic product (GDP) of the
country in 2014. This sector which is growing exponentially is expected to generate
about 4.1 million additional jobs by 2020, as per Groupe Speciale Mobile Association
(GSMA).
In the period April 2000 to January 2014, the telecom industry has got in foreign direct
investments (FDI) of about US$ 59,796 million, which is an increase of 6 per cent to the
total FDI inflows in terms of US$, as per report published by Department of Industrial
Policy and Promotion (DIPP).
Indias global system for mobile (GSM) operators had 4.14 million rural subscribers as
of January 2014, bringing the total to 285.35 million.
Data traffic powered by third generation (3G) services grew at 146 per cent in India
during 2013, higher than the global average that saw usage double, according to an MBit
Index study by Nokia Siemens Networks (NSN).
India's smartphone market grew by 171 per cent in 2013, to 44 million devices from 16.2
million in 2012, as per research firm IDC India. The increasing popularity of bring-your-
own-device (BYOD) in the workplace is further adding momentum to the smartphone
market.
Indian telecom industry has grown from a tele-density of 3.58% in March 2001 to 74%
in June 2013. This great leap in both number of consumers as well as revenues from
telecom services has not only provided sufficient contribution in Indian GDP growth but
also provided much needed employment to India youth.
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Players in the market
BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5 per
cent market share. Next is Bharti Airtle at 10.9% followed by Tata and Reliance at 5%
and 4.1% respectively.
BSNL as a company is growing and showed annual revenues of approximately $4.5

billion as of 2014. BSNL is serving more than 125 million customers across the country
and is catalyst in checking the price point for telecom services.
Also, with the government intensifying its rural focus, only BSNL can turn into reality
the next wave of rural telecom penetration.
BSNL is a 100% Central Government entity and employees with BSNL are entitled to
get salaries and perks as decided by Government of India and not by BSNL
However both, MTNL and BSNL are plagued by declining revenues coupled with high
costs. BSNL has massive infrastructure, manpower, systems, and 80 per cent of landlines
and 90 per cent of broadband connections in India are operated by it.
Vodafone is investing nearly US$ 3 billion over the next two years in India in
expanding its network infrastructure and distribution channel in the country, as per
Vittorio Colao, CEO, Vodafone Plc.
BlackBerry plans to set up enterprise solutions centres to educate corporate customers

about various BlackBerry Enterprise Service (BES) 10 solutions. "India is one of the
fastest growing markets in terms of smartphone and mobile data adoption, said
according to Sunil Lalvani, Managing Director (MD), BlackBerry India.
Tata Teleservices plans to set up nearly 4,000 wi-fi hotspots in nine cities across the
country in the next two years.
Booming sectors: The tide has turned for the telecom sector in India, as growth and
profitability has accelerated in recent times. Tower companies are reaping benefits of a
turnaround in the sector as operators have started investing in networks to boost data
penetration.
However it is in the countrys booming mobile segment in which the major battles are
being fought. Three major private players Bharti, Reliance and Vodafone - with a
6
formidable 54% share of the market between them, lead a large field of mobile operators.
State-owned enterprises BSNL and MTNL have also been making their presence felt
with a combined market share of 12%.
A look ahead: According to Craig Wigginton, vice chairman and U.S.

Telecommunications leader, Deloitte & Touche LLP, the big challenge for the telecom
industry in 2014 which also presents a major growth opportunity for the sector is that
consumers are getting addicted to connectivity and speed.
The ongoing expansion of the mobile ecosystem, coupled with demand for high-
bandwidth applications and services such as video and gaming, is keeping pressure on
the industry to increase the availability and quality of broadband connectivity. What does
this mean for players in the sector? Carriers will continue to pursue technological
advancements to handle demand, including offloading some mobile bandwidth needs to
Wi-Fi, which is proving an effective complement to mobile networks. At the same time,
long-term spectrum availability, spectrum efficiency, small cells and continued backhaul
improvements are likely to be a key focus to assure continued mobile broadband
momentum.
FINANCIAL ANALYSIS OF TELECOM INDUSTRY OF INDIA &

CHINA INTRODUCTION
As we all know that India is fast developing country, it is one of the fastest growing
telecom markets of the world. As China is more developed market as compare to India
and that is because of the start of the development of telecom industry in China, which
started earlier than India. In India this has started from 10-15 years. To analyze and
compare the trends of Indian telecom sector with the other developing countries, a study
of the telecom sector of China was conducted. This information brings out some of the
highlights of this study. The report is based on analysis of financial and non-financial
results Chinese telecom companies available in their Annual repots and material
available on net.
China is one of the largest telecom markets in the world. The subscriber base of China as
on March 2013 was 674.5 million, 349.1 of these subscribers were subscribing to mobile
services and 325.40 million fixed line services. The mobile and fixed line subscribers
account for a Tele-density of 25.90% and 24.9% respectively.
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OBJECTIVE OF THE STUDY
Objective provides a framework for optimum financial decision-making. The various
objectives of studies are as follows:-
To know the financial position of the organization.
To know the working style of the organization.
To get the information about earning potential of this enterprise.
To know the capability of payment of interest of dividend analysis.
To know the trends of business, which help us in as curtaining whether the business
is progressive or not.
To find out the shortcomings of business.
To know the financial growth of telecom industry.
To provide a reasonable & adequate return on capital through improvement,
efficiency & utilizing adequate internal resources to finance the company growth.
To know the role of each concerned department regarding the technical & financial
justification of financial statements.
To know the real worth of an enterprise.
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CHAPTER 2
LITERATURE REVIEW
Mahanagar Telephone Nigam Limited (MTNL) is a telecommunication company. The

company provides telecommunication services including fixed telephone service, GSM
and CDMA based mobile service, internet, broadband, ISDN and leased line services. It
also offers value added services, enterprise services and intelligent networking services.
MTNL's enterprise services include leased circuits, web hosting, intelligent network,
NSDN and EPABX. The company's intelligent networking service comprise toll free
service, charges for premium toll free numbers, premium rate service, virtual private
network, televoting service, UAN service and virtual card calling service. MTNL is
headquartered in New Delhi, India.
This comprehensive SWOT profile of Mahanagar Telephone Nigam Limited provides

you an in-depth strategic analysis of the companys businesses and operations. The profile
has been compiled by GlobalData to bring to you a clear and an unbiased view of the
companys key strengths and weaknesses and the potential opportunities and threats. The
profile helps you formulate strategies that augment your business by enabling you to
A non-systematic literature review was undertaken to identify the financial ratios

included in articles in peer-reviewed journals, industry publications, and articles in
magazines and newspaper. To identify ratios in peer-reviewed articles, searches of
academic databases using keywords such as financial management, Solvency,
profitability and liquidity and ratio analysis were undertaken. Articles published
prior to 1995 were excluded from the searches in order to ensure that only the most
recent studies were included. This exclusion was important because of the many changes
in telecom since 1995 and the likely lower relevance of articles prior to these changes.
Ratios were selected from the articles if results showed that they were statistically
significant in explaining a dimension of Telecom Companys financial performance, such
as profitability or financial distress. To identify ratios in industry publication, the
websites of various organizations were reviewed. Some of the major literature reviewed
is
9
Lazaridis and Tryfonidis (2006) conducted a cross sectional study by using a sample of
131firms listed on the Athens Stock Exchange for the period of 2001-2004 and found
statistically significant relationship between profitability, measured through gross
operating profit and cash conversion cycle and its components. Based on the results
analysis of annual data by using correlation and regression tests, they suggest that
managers can create profits for their companies by correctly handling the cash
conversion cycle and by keeping each component of the conversion cycle at an optimum
level.
Garcia-Terual et al (2007) collected a panel of 8872 small to medium-sized enterprises

from Spain covering the period 1996-2002. They tested the effects of working capital
management on SME profitability using the panel data methodology. The results, which
are robust to the presence of endogeneity, demonstrated that managers could create value
by reducing their inventories and the number of days for which their accounts are
outstanding. Moreover, shortening the cash conversion cycle also improves the firms
profitability.
Mathuva (2009) examined the influence of working capital management components on

corporate profitability by using a sample of 30 firms listed on Nairobi Stock Exchange
for the periods 1993- 2008. He used Pearson and Spearmans correlations, the pooled
ordinary least squares and the fixed effects regression models to conduct data analysis.
The key findings of his study were that there exists a highly significant negative
relationship between the time it takes for firms to collect cash from their customers and
profitability, there exists a highly significant positive relationship between the period
taken to convert inventories to sales and profitability and there exists a highly significant
positive relationship between the time it takes for firms to pay its creditors and
profitability.
Praveen Kataria in his study attempted to predict corporate sickness of the companies.
Financial information about all the sick companies was collected for five years before
sickness. Healthy companies were matched with the sick companies on the basis of
industry composition size. 54 financial ratios and 8 macro economic variables were taken
to study their effect along with financial ratios. Two group linear discriminate analyses
were applied in two parts. In the first part, only financial ratio was taken in discriminate
analysis, while the macroeconomic variable was included along with the financial ratios
10
in the second part. The result showed that macroeconomic variable had very little impact
on discriminate function.
Rekha Pai dealt with the prediction of industrial sickness using multiple discriminate
analyses. The data set constitutes 21 financial ratios of 34 Indian sick companies in
200001 and 38 contemporary non sick companies, both selected irrespective of size and
industry category 3 years prior to sickness. The multiple discriminate analyses (MDS)
showed greater accuracy in predicting industrial sickness up to three years in advance.
The model was validated further using a test model, while exhibited very high predictive
accuracy of the proposed model.
Berryman, (1983) indicated that poor or careless financial management is a major

cause of small business failure. In addition, a major survey by the Insolvency Practitioner
Society, (CIMA 1994) indicated that 20% of UK corporate failures (the vast majority of
which are small firms) were due to bad debts or poor credit management. According to
Peel and Wilson (1994), if the financial/working capital management practices in the
small firm sector could be improved significantly, then fewer firms would fail and
economic welfare would be increased substantially.
COMPARISON
Table no.1
Comparison of subscriber growth of base of basic and cellular service in China and India
Fixed Line (Mn) Cellular Line (Mn)

Year China India China India
2006 70.00 14.54 15.00 0.34
2007 90.00 17.80 20.00 0.88
2008 110.00 21.59 40.00 1.20
2009 130.00 26.51 85.00 1.88
2010 180.00 32.44 145.00 3.58
2011 210.00 37.94 210.00 6.43
2012 263.00 40.62 269.00 12.69
11
2014-15 312.00 42.58 335.00 33.60
2016 325.40 45.91 349.10 52.21
Sources: Ministry of Information industry of China (MII) and TRAI
Subscriber base
In the past few years, fantastic growth has taken place in the mobile segment in India but
basic services are not growing at a similar pace. In china a remarkable growth took place
in both basic and cellular market. In 2014 the growth rate of mobile service in India
surpassed growth rate of china however in fixed line segment India continuous to show a
much lower growth than Chinese growth rate. One of the reasons for slow growth of
fixed line services could be late introduction of broadband services over DSL. Summary
of result of Indian and Chinese market is given in the following table.
12
CHAPTER 3
COMPANY ANALYSIS
ABOUT MTNL
MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality
of telecom services, expand the telecom network, and introduce new services and to raise
revenue for telecom development needs of Indias key metros Delhi, the political
capital and Mumbai, the business capital of India.
The company has also been in the forefront of technology induction by converting 100%
of its telephone exchange network into the state-of-the-art digital mode.
The Govt. of India currently holds 56.25% stake in the company. In the year 2010-11, the
company would focus on widening the cellular and CDMA-based WLL customer base,
introducing 3G services and achieving at least 5,00,000 broadband customers and rolling
out of telecom services in Mauritius through its subsidiary.
MISSION
To remain market leader in providing world class Telecom and IT related services at
affordable prices and to become a global player.
CORPORATE OBJECTIVE
To expend customer base and services.
To achieve the highest level of customer satisfaction and delight.
To diversify in other areas for providing telecom services at national and

international levels.
To provide convergence of Telecom, Information Technology and related services.
To improve productivity by training and redeployment of manpower.
13
Vision
Vision for Tomorrow
Become a total solution provider company and to provide world class telecom
services at affordable prices.
Become a global telecom company and to find a place in the Fortune 500
companies.
Enter into and expand new services viz. Long distance, Cellular mobile, W-CDMA,
Internet / Broadband and IN services and development of telecom software.
Become the largest provider of private networks and leased lines. Venture into other
areas in India and abroad on the strength of our core competency
Vision 2014
1. Internet Services
Internet for all

Global Roaming
Virtual Private network
Premium Internet Service
E-commerce enabling services, by setting up of Payment Gateway &
Certification Gateway
Unified Messaging
2. Broadband Internet Access services
MTNLs Broadband service, branded as Triband offers high speed internet

connectivity at most affordable prices. Offering speeds from 256 kbps up to 2 mbps
(8 mbps download speeds), the tariffs have been planned in form of various packages
to suit every need and budget. MTNL plans to expand the capacity shortly by 1
million lines.
ADSL 2+, most affordable prices for connecting all for speeds up to 2 mbps
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Cable TV, through strategic alliance, video on demand, e-gaming, e-learning, video
conferencing, telemedicine, e-education & much more.
3. Mobile Internet services
Internet Services via Mobile phone with up to 4mb bandwidth

E-commerce
Global Roaming
High speed Mobile Internet services
Value added services on GPRS & CDMA
Wi-Fi
4. IP based Voice services.
5. IP Services in PSTN
Call waiting Internet Busy

Call Competition Internet Busy
6. International Gateway Leasing Services
7. Internet Exchange Connectivity Services
8. Expansion of Managed leased line data Services
9. ATM Services
LAN Emulation
ATM Bearer Service
High speed video conferencing
Distance Learning & Telemedicine
Bandwidth on demand
Video on Demand
10. Customer Care Services
15
New Telephone registration, Bill payment and complaint registration through Internet,
retail outlets & agents
Smart Card for Payphone

Mediation Billing Customer care in GSM Mobile
Data Ware Housing
Voice Mail Service
Call Center
Complaints / enquiries through SMS
11. Wireless ATM Service
12. Expand operations
Beyond Delhi & Mumbai through strategic linkages with Basic, Cellular and Internet
companies either by tie-ups, taking major equity stake or by acquisition. Tie up
arrangement with ISP's for content as well as for co-branded portals. Setting up of
venture capital fund and R & D fund to finance & encourage research institutions and
IIT's for developing innovative technologies.
Historical background
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Historical Development
1911 Establishment of Delhi telephones system with manual exchange
1926 Opening if 1st automatic exchange (Lothian exchange)
1937 Opening of Connaught Place exchange.
1945 First Manual Trunk exchange opened.
1950 Opening of Cantt exchange
1953 Tiz Hazari Exchange (Lothian exchange ceased working) commissioned.
1955 Secretariat exchange commissioned
1958 Karol Bagh exchange (SXS) commissioned.
1961 Jor Bagh exchange (SXS) commissioned.
1961 Shahadara exchange (SXS) commissioned.
1962 Opening of First STC service to Agra.
1963 Delhi Gate (27) exchange commissioned.
1964 Delhi telephone crosses 50,000 lines.
1966 Opening of exchanges at Nangloi, Narela, Najafgarh, Bahadurgarh and
Ballabgarh.
1967 Rajpath (38) exchange commissioned
1968 1st X-Bar exchange (KB58) commissioned. X-Bar exchange (JB62)
commissioned
1969 Trunk automatic exchange (TAX) commissioned
1970 Okhla X-Bar exchange commissioned.
1972 Opening of Idgah-I (51) Strowger exchange.
1972 X-Bar (31) Janpath-I exchange commissioned. Delhi telephones crosses 1
lac lines.
1973 Opening of X-Bar (67) Chanakya Puri exchange.
1975 X-Bar Janpath-IV (34) exchange commissioned. X-Bar Shahdara East
(20) exchange commissioned.
1976 Shakti Nagar (74) exchange commissioned. Idgah-II (52) X-Bar exchange
inaugurated by Mr. Fakhuriddin Ali Ahmed, President of India, on
28.8.76 and presided over by Mr S.D. Sharma (Minister of
Communications).
Opening of Shahdara East (20) Extension-I, X-Bar exchange on 31.8.76.
It was inaugurated by Mr H.K.L Bhagat (Minister of State for Works &
Housing) and Mr S.D. Sharma (Minister of Communications).
Opening of Hauz Khas (65) X-Bar exchange on 18.10.76. It was
inaugurated by Mr S.D. Sharma (Minister of Communications) and
presided over by Mr Radha Raman (Chief Executive Councillor, Delhi).
1977 Opening of STD Service to Indore and Ambala on 5.10.77 by Mr Brij Lal
Verma (Minister of Communications).
1978 Opening of Rajouri Garden-I (59) X-Bar exchange in Feb 78
Opening of Hauz Khas -II (66) X-Bar exchange on 15.2.78, by Mr Brij
17
Lal Verma (Minister of Communications).

Opening of Janpath-V (35) X-Bar exchange.
Opening of Nehru Place (68) Strowger exchange on 4.11.78 by Mr Brij
Lal Verma (Minister of Communications) and presided over by Mr R.K.
Gupta (Mayor of Delhi).
1986 Creation of Mahanagar Telephones Nigam Limited
1986 First digital exchange world technology brought to India
1987 Largle Scale introduction of push button telephone made dialling easier.
1988 Phone Plus services multiplied benefits to telephone users.
1992 Voice Mail Service Introduced
1996 ISDN services introduced
1997 Wireless in Local loop introduced
2004 Internet services introduced.
2005 Millennium Telecom Limited, a wholly owned subsidary of MTNL is
born
2006 Launched GSM Cellular Mobile service under the brand name Dolphin
Launched WLL Mobile services under the brand name Garuda.
The company listed at New York stock exchange (NYSE)
United telecom ltd.,MTNL Joint venture in Nepal,for providing WLL
based services in Nepal became operational.
CLI based Internet express services introduced.
2007 Launched pre-paid GSM Mobile services under the brand name
Trump.Email on PSTN lines introduced under the brand name mtnlmail.
2008-09 Introduced CDMA 1x 2005 Technology under the brand name Garuda 1-
x. Introduced pilot project of ADSL based Broadband services.Introduced
Virtual Phone services.Mahanagar Telephone Mauritius Ltd. bagged
second operator license in Mauritius.
2010-11 Expanded GSM & CDMA capacity by 800,000 lines each (total 1.6
million lines expanded) STD/ISD rates slashed by almost 60%. MTNL
subsidiary MTML obtained license to provide fixed, mobile & ILD
services in Mauritius. Launched Wi-Fi & digital certification services.
State of the art training centre CETTM commissioned.
2012-13 Leading market in GSM customer additions. Launched broadband
services under the brand name TRI BAND. Floated tender for 1 million
3G
18
Corporate Governance
MTNL has been following the principles of Corporate Governance. As it is understood,

the principles and Corporate Governance deals with laws, procedures, practices and
implicit rules that determine a company's ability to take informed managerial decisions
vis--vis its stake holders, in particular its shareholders, creditors, customers, the state
and employees.
The major constituents/components of Corporate Governance include:
1) Constitution of the Board of Directors.
2) Key information that are being reported to and are placed before the Board of
Directors.
3) Proper functioning of Audit Committee.
4) Transparency and desirable disclosures by the company.
At present, MTNL Board comprises of four non-executive Directors, apart from three
full time Directors viz. Director (Tech), Director (Fin) & Director (HR) and two ex-
officio Directors on Board. There are two Govt. nominees on the Board. The meetings of
the Board are held regularly, as per the agenda and their importance. Besides regular
Board Meeting, emergency Board meetings are held as and when required. The
information, which are reported to and placed before the Board includes: -
1) Annual Plans, revenue, capital budgets, manpower and over-head budgets and
manpower requirements.
2) Quarterly results of the company as a whole and its operating divisions.
3) Internal audit reports.
There is a separate Internal Audit group formed & functioning in the company under
whose jurisdiction member of independent Chartered Accountants Firms are appointed
by the company to carry out audit of various departments of the company both in Delhi
& Mumbai as well as Corporate Office.
Apart from the internal audit, the company is also subjected to Govt. Audits and other
audits/examination by Parliamentary Committees. Company has to report its monthly,
19
quarterly and yearly achievements in terms of financial and physical parameters to Dot
and Department of Public Enterprises (DPE).
Hence, it can be seen that the company functions in a most transparent manner. MTNL
has been following the principles of Corporate Governance. As it is understood, the
principles and Corporate Governance deals with laws, procedures, practices and implicit
rules that determine a company's ability to take informed managerial decisions vis--vis
its stake holders, in particular its shareholders, creditors, customers, the state and
employees.
The major constituents/components of Corporate Governance include:
1) Constitution of the Board of Directors.
2) Key information that are being reported to and are placed before the Board of
Directors.
3) Proper functioning of Audit Committee.
4) Transparency and desirable disclosures by the company.
At present, MTNL Board comprises of four non-executive Directors, apart from three
full time Directors viz. Director (Tech), Director (Fin) & Director (HR) and two ex-
officio Directors on Board. There are two Govt. nominees on the Board. The meetings of
the Board are held regularly, as per the agenda and their importance. Besides regular
Board Meeting, emergency Board meetings are held as and when required. The
information, which are reported to and placed before the Board includes: -
1) Annual Plans, revenue, capital budgets, manpower and over-head budgets and
manpower requirements.
2) Quarterly results of the company as a whole and its operating divisions.
3) Internal audit reports.
There is a separate Internal Audit group formed & functioning in the company under
whose jurisdiction member of independent Chartered Accountants Firms are appointed
by the company to carry out audit of various departments of the company both in Delhi
& Mumbai as well as Corporate Office.
20
Apart from the internal audit, the company is also subjected to Govt. Audits and other
audits/examination by Parliamentary Committees. Company has to report its monthly,
quarterly and yearly achievements in terms of financial and physical parameters to Dot
and Department of Public Enterprises (DPE). Hence, it can be seen that the company
functions in a most transparent manner. Two most important claimants to any company
are creditors and shareholders and the Corporate Governance and good corporate
practice must satisfy both these claimants. In this regard, MTNL, a debt free company,
has a unique distinction of servicing its shareholders. The company has evolved its own
Insider Trading Code as per SEBI Rules & Regulations.
Date of Establishment 28-02-1986

Revenue 565.619 ( USD in Millions )
Market Cap 12726 ( Rs. in Millions )
Corporate Address Mahanagar Doorsanchar Sadan,5th Floor, 9, C G O
Complex,Lodhi Road New Delhi-110003, New Delhi
www.mtnl.net.in/www.bol.net.in
Management Details Chairperson P.K.Purwar
MD P.K.Purwar
Directors - Adit Jain, AK Garg, Anita Soni, Ashok
Kumar Garg, J S Deepak, Kuldip Singh, Kumar
Sanjay Bariar, Malay Shrivastava, Manish Sinha,
Nirmala Pillai, NK Joshi, P K Purwar, R S P Sinha,
Rajan Saxena, S Balasubramanian, S P Pachauri, S R
Sayal, Sunil Kumar, Sushil Kumar Shingal, Sushil
Kumar Singhal, T S Narayanasami, Usha Sahajpal, V
S Iyer, V Umashankar, Vijay Aggarwal
Business Operation Telecommunication - Service Provider
Background The company started its operations by
establishing Delhi telephone system with a manual
exchange. Later in 1986 MTNL (Mahanagar
Telephone Nigam) was established. In the same year
it brought in digital exchange world technology for
the first time in India.
21
MTNL, a state-owned telecom service

Financials Total Income - Rs. 37873.72 Million ( year ending
Mar 2014)
Net Profit - Rs. 78251.31 Million ( year ending
Mar 2014)
Company Secretary S R Sayal
Bankers Allahabad Bank , Axis Bank , Bank of Baroda,
Central Bank of India, Corporation Bank, Dena
Bank, Federal Bank, ICICI Bank, IDBI Bank, Indian
Bank, Indian Overseas Bank, Oriental Bank of
Commerce, Punjab National Bank, Standard
Chartered Bank, State Bank of India, Syndicate
Bank, Union Bank of India, United Bank of India,
Vijaya Bank
Auditors Dhawan & Co, Arun K Agarwal & Associates,
Bansal Sinha & Co, Bansal Sinha & Co, Goel Garg
& Co, Bansal Sinha & Co, Goel Garg & Co, Bansal
Sinha & Co, Dhawan & Co, Dhawan & Co, Dhawan
& Co, VK Verma & Co, VK Verma & Co, VK Verma
& Co, VK Verma & Co, NM Raiji & Co, NM Raiji
& Co, NM Raiji & Co, VK Dhingra & Co, Arun K
Agarwal & Associates
Finance
MTNL has a strong financial base and has shown consistent improvement in
performance over the years. It has a customer base of over 5 million. MTNL possesses
an impressive financial profile comprising of Paid up Capital of Rs.6300 million.
Reserves and Surplus amounting to Rs.96976.28 million and Fixed Assets worth
Rs.72102.82 million (as on 31.03.2014)
Financial Operations
Disinvestment/GDR/ADR
Telephone Bonds
22
Capital Expenditure
The following operations have reinforced and strengthened MTNL's resource base:
Disinvestment/Global Depository Receipts
MTNL is amongst the foremost public sector undertakings in India in terms of

divestiture / GDR of the equity by Govt. of India. Govt. of India has disinvested
approximately 375.63 million shares (including 70 million shares through GDR) up to
31.3.2010. MTNLs outstanding shares as on 31.3.2014 were 730 million (including 30
million shares GDR) out of which Govt. of India owned 354.37 million shares (56.25%
approximately). The MTNLs share has been listed at the Stock Exchanges of Mumbai,
Delhi, Chennai, and Calcutta & National Stock Exchange.
MTNL was listed at the New York Stock Exchange on 6.11.2006, one more connection
that brings more transparency in its operation.
Foreign Institutional Investors, All-India Financial Institutions, Research Analysts, and

Merchant Bankers etc consider the companys equities as an excellent buy globally.
Shareholding and Dividend
MTNLs paid up Capital is Rs.6300 millions and the Govt. of India currently holds
56.25% stake in the company. The company has been consistently paying dividend @
45% on the paid up share capital of Rs.6300 millions for last four years. An interim
dividend of @ 20% has been declared for the financial year 2012-13 and paid after
approval of the board in January 2014.
Capital Expenditure
The capital expenditure during 2012-13 was Rs 9.65 billion as against Rs.10.53 billion in
2011-12 and the capital expenditure for both the years was fully met by internal
resources.
Millennium Telecom Limited
Looking for new horizons
23
Incorporated on 17th Feb., 2005, Millennium Telecom Limited is a wholly owned

subsidiary of MTNL that has been formed to do practically any type of Telecom Business
with a focus on value added services. It intends to be a Universal Telecom solution
provider to meet the needs of the customers, both Telecom and its Applications, on a one
stop basis through Service Level Agreements using Multi Service, Flexible, customized
access supported by a strong billing system. It intends to roll out a router-based
packetised telecom network and create facilities like Application Development Centre,
Internet Data Centre, STP facilities and payment gateway. Presently, it has a category A
ISP licence and is in the process of application development and rolling out the services.
The company also started its operation in Himachal Pradesh in association with
HPSEDC from 25th Feb, 2007.Web Enabled Tendering has also been started from
14.1.2007 for information on various tenders by logging on to nividasewa.com.
The company has signed MOUs for co-operation with
1) West Bengal Electronics Limited.
2) Karnataka State Electronics Limited.
Joint ventures
United Telecom Limited (UTL)
MTNL has formed a Joint Venture company in Nepal by the name of United Telecom
Ltd. (UTL) in collaboration with Telecom Consultants India Limited (TCIL), Videsh
Sanchar Nigam Limited (VSNL) and NVPL (Nepal Ventures Pvt. Ltd., a Nepalese
Company) The Company is operational since 10th October, 2006 for providing WLL
based basic services in Nepal.
Mahanagar Telephone Mauritius Limited (MTML)
MTNL has set up its 100% subsidiary Mahanagar Telephone Mauritius Limited
(MTML) in Mauritius, for providing basic, mobile and international long distance
services as 2nd operator in Mauritius. Necessary licenses have been obtained in January,
2009 infrastructure is being set up and MTML rolled out its services by the middle of
year 2010.
24
Market Share of MTNL in Total Subscriber Base

As on 31st March 2015, the total subscriber base of fixed lines including WLL(F) stood
at 50.2 million. The incumbents BSNL and MTNL have 74% and 8% market share
respectively in the subscriber base, while all the five operators have 18% share. In the
current quarter the share of private operators has increased by 15 and the share of BSNL
has declined by 1% whereas the share of MTNL remains the same.
As on 31st march 2015 total urban DELs are 35.49 million and rural DELs are 14.68
million.
Market Share of DELs (Fixed + WLL (F)) as on 31st March 2015
Private Operators ; 18%

Private Operators MTNL BSNL
MTNL; 8%
BSNL; 74%
Performance Indicators in Other Areas
1) Public Call Offices (PCO)
During the current quarter 4, 64,470 new PCOs have been added. Total number of
PCOs in the country as on 31st March 2015 is 41, 99,157. The contribution of BSNL is
20,64,174 i.e. 49% of the total PCOs. The contribution of MTNL and other Private
Operators combined is 2, 79,041 (7%) and 18, 55,942 (44%) respectively.
Operator-wise market share of PCO is depicted in the chart below.
25
Market Share of PCOs as on 31st March 2015
BSNL;Operators
49% Private Operators ; 44%
Private MTNL BSNL
MTNL; 7%
2) Market Share in Internet Service Provider (ISP)
The growth trends indicate a considerable growth in market share of PSU owned ISPs.
During the last year PSU owned ISPs have captured 56.43% market share.
The market share of top 5 ISPs are:
ISP % Share
BSNL 42%
MTNL 14%
Sify Ltd. 13%
VSNL 8%
Bharti Televentures Ltd. 6%
Others 17%
26
Subscriber Base
42%
45%
40%
35%
30%
BSNL MTNL Sify Ltd. VSNL Bharti Televentures Ltd. Others
25%
17%
20% 14% 13%
15% 8%
6%
10%
5%
0%
% Share
Among PSU owned ISPs; M/s BSNL has reported a subscribers base of 29.29 lakhs
during the quarter ending 31st March 2015 as against 25.97 lakhs during the previous
quarter registering an increase of 12.79%. M/s MTNL has reported a subscriber base of
9.84 Lakhs against the subscriber base of 13.14 lakhs reported during the previous
quarter, registering a decrease of 25.09%.
Average Revenue per User (ARPU)
ARPUs in Indian and Chinese market are comparable in mobile sector but ARPUs for
basic services are much higher in India. Result for various sectors is summarized below:
Table No. 2
Particulars China India

Fiscal year Mar-2015 Mar-2015
ARPU- Basic US$ 9.14 15
ARPU Mobile (GSM+CDMA) US$ 9.69 9.04
27
16
14
12
10
China 15-Mar
8
India 15-Mar
6
0
US$ US$
ARPU- Basic ARPU (GSM+CDMA)
OPEX Per subscriber
Operating expenditures of basic and mobile services are compared in the following table.
The OPEX in both segments is higher for Indian companies. High salaries, expenses on
advertisement, license fee etc are some of the reasons for higher opex for Indian
companies.
Table No. 3
Opex per subscriber per month-basic US$ 4.30 5.92
Opex per subscriber per month-mobile US$ 2.41 4.18
28
3 China India
0
Opex per subscriber per month-basic Opex per subscriber per month-mobile
Capital Employed cost per subscriber
The capital employed in china for basic segment is almost half of what has been
employed in the Indian market but for mobile segment is almost similar. Higher capacity
utilization is one of the reasons for it.
Table No. 4
Capital Employed cost per subscriber-basic service US$ 169 362
Capital Employed cost per subscriber-mobile service US$ 163 167
Return on Capital Employed (RoCE)
Chinese companies have much higher returns on capital employed than Indian
companies. Lower Opex and higher ARPUs are reasons for higher RoCE. Comparison is
given in the following table.
29
Table No. 5
RoCE- Basic US$ 14.79% 10.92%
RoCE-Mobile US$ 22.87% 7.83%
FINANCIAL STATEMENTS ANALYSIS:
Financial Statement present a mass of complex data in absolute monetary terms and
reveals little about the liquidity, solvency and profitability of the business. In financial
analysis, the data given in Financial Statement is classified into simple groups and a
comparison of various groups is made with one another to pinpoint the stung points and
weaknesses of a business.
SIGNIFICANCE OF THE STUDY
Now a day analysis of financial statements has become of general interest various parties
are interested in the financial statements of a business due to various reasons. By
analyzing the financial statements each party can as retain whether his interest is safe or
not. The significance of the financial statements analysis for different parties is as
follows:
Significance for management: The management can measure the effectiveness of the
own polices and decisions, determine the advisability of adopting new polices,
procedures and document to owners, the result of their managerial efforts.
Significance for Investors: With the help of financial analysis investors and share
holders of the business can know about the earning capacity and the safety of their
investment in the business.
Significance for Creditors: Financial analysis tells them whether companies have
sufficient assets and funds to pay off its Creditors.
30
Significance for Government: Government can judge, the basis of analysis of financial
statements, which industry is progressing on the desired lines and which industry needs
the financial help.
Significance for Financial Institutions: With the help of financial statement analysis
financial institutions can know the profit earning capacity of the business and its long
term solvency.
Significance for Employees: Analysis of financial statements helps the employees in

determining the true profit of the business enterprise.
Value Creation
Mar'0 Mar'0 Mar'0 Mar'0 Mar'1 Mar'1 Mar'1 Mar'1 Mar'1 Mar'1
6 7 8 9 0 1 2 3 4 5
Return on 9.21% 5.47% 6% 5.51% 2.51% - - - - 4.82%
Capital 24.29 20.96 26.01 42.35
Employed % % % %
Growth Parameters
31
Industry Screener
Company Name Latest Price Market Net Lates Net Lates Lates
Price Change Cap Sale t Profit t t
(Rs.) Rs.(%) s EPS Margi P/E P/BV
(Rs. (Rs.) n%
Cr.)
MTNL 20.1 -0.1 Small 3,39 115.9 -8.64 0.17 0.48

(-0.5%) Cap 2 1
Tata 8.44 0.08 Small 2,73 -2.88 -20.52 - -0.58
Teleservice(Mah (0.96%) Cap 1
GTL 14.77 -0.27 Small 2,26 - -21.96 - -0.52
(-1.8%) Cap 5 45.85
Hathway Cable & 53.8 -1.25 Small 980 -1.78 -12.04 - 3.63
Data (-2.27%) Cap
Dhanus 0.08 0 Small 53.5 -0.07 -20.97 - -

Technology (0%) Cap
Vital 0.69 0 Small 0 -0.01 - - 0.06
Communication (0%) Cap
MTNL gets tax refund amounting Rs 146.50 crore on 15 Apr 2015
Mahanagar Telephone Nigam is currently trading at Rs. 21.35, up by 0.25 points or

1.18% from its previous closing of Rs. 21.10 on the BSE.
The scrip opened at Rs. 21.00 and has touched a high and low of Rs. 22.20 and Rs.
20.65 respectively. So far 552693 shares were traded on the counter.
32
The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs.
39.10 on 25-Jun-2014 and a 52 week low of Rs. 14.60 on 25-Apr-2014.
Last one week high and low of the scrip stood at Rs. 22.65 and Rs. 19.15
respectively. The current market cap of the company is Rs. 1310.40 crore.
The promoters holding in the company stood at 56.25 % while Institutions and Non-
Institutions held 22.18 % and 19.92 % respectively.
Mahanagar Telephone Nigam (MTNL), the state owned telecom firm which operates
in Delhi and Mumbai, has added 19,353 mobile subscribers in March, 2015.
Following the addition, the companys total subscriber count stood at 34.2 lakh.
MTNL was set up by the Government of India to upgrade the quality of telecom
services, expand the telecom network, and introduce new services and to raise
revenue for telecom development needs of India's key metros -- Delhi and Mumbai.
Milestones
1911 Delhi telephones system with manual exchange was established.
1926 Lothian exchange, the first automatic exchange was inaugurated.
1937 Connaught Place exchange was opened.
1945 First Manual Trunk exchange was opened.
1950 Cantt exchange was opened.
1953 Tiz Hazari Exchange was commissioned whereas Lothian exchange ceased
working.
1955 Secretariat exchange was commissioned
1958 Karol Bagh exchange (SXS) was commissioned.
1961 Jor Bagh exchange (SXS) was commissioned.
1961 Shahadara exchange (SXS) was commissioned.
1962 First STC service was opened at Agra.
1963 Delhi Gate (27) exchange was commissioned.
1964 Delhi telephone crosses 50,000 lines.
1966 Exchanges at Nangloi, Narela, Najafgarh, Bahadurgarh and Ballabgarh
were opened.
1967 Rajpath (38) exchange was commissioned.
33
1968 1st XBar exchange (KB58) was commissioned. XBar exchange (JB62) was
commissioned.
1969 Trunk automatic exchange (TAX) was commissioned.
1970 Okhla XBar exchange was commissioned.
1972 IdgahI (51) Strowger exchange was opened.
1972 XBar (31) JanpathI exchange was commissioned. Delhi telephones crosses
1 lakh lines.
1973 XBar (67) Chanakya Puri exchange was opened.
1975 XBar JanpathIV (34) exchange and XBar Shahdara East (20) exchange was
commissioned.
1976 Shakti Nagar (74) exchange, XBar exchange, Shahdara East (20)
ExtensionI, XBar exchange and Hauz Khas (65) XBar exchange were
commissioned.
1977 STD Service to Indore and Ambala were started
1978 Rajouri GardenI (59) XBar exchange, Hauz Khas II (66) XBar exchange,
JanpathV (35) XBar exchange and Nehru Place (68) Strowger exchange were
inaugurated.
1986 Mahanagar Telephones Nigam Limited was incorporated.
1986 First digital exchange world technology brought to India
1987 Introduction of large scale push button telephone made dialling easier.
1988 Phone Plus services multiplied benefits to telephone users.
1992 Voice Mail Service was introduced.
1996 ISDN services were introduced.
1997 Wireless in Local loop was introduced
1999 Internet services were introduced.
2000 Millennium Telecom Limited, a wholly owned subsidiary of MTNL was
born.
2001 The company launched GSM Cellular Mobile service under the brand name
Dolphin. WLL Mobile services under the brand name Garuda was also launched.
The company got listed at New York stock exchange (NYSE). United telecom,
MTNL entered into joint venture in Nepal, for providing WLL based services in
Nepal became operational. CLI based Internet express services was introduced.
34
2002 The company launched prepaid GSM Mobile services under the brand name
Trump. Email on PSTN lines were introduced under the brand name mtnlmail.
2003 CDMA 1x 2000 Technology under the brand name Garuda 1x was
introduced. A pilot project of ADSL based Broadband and Virtual Phone services
were introduced. Mahanagar Telephone Mauritius bagged second operator license
in Mauritius.
2004 The company expanded GSM & CDMA capacity by 800,000 lines each
(total 1.6 million lines expanded) STD/ISD rates slashed by almost 60%. MTNLs
subsidiary MTML obtained license to provide fixed, mobile and ILD services in
Mauritius. WiFi and digital certification services were launched. State of the art
training centre CETTM was commissioned.
2005 The company launched broadband services under the brand name TRI
BAND. It also floated tender for 1 million 3G GSM lines.
35
CHAPTER - 4
RESEARCH METHODOLOGY
The quality and reliability of research studies is dependent on the information collected
in a scientific and Methodology manner. Scientific planning of designing of research
method is a blue print for any research study therefore proper time and attention should
be given in designing the plan of research. By proper definition of problem tells the
researcher where he was to go, proper design tells him how he should go. Selection of
Methodology for a particular project is made easy. By sorting out a number of alternative
approaches, each of them having its own advantages and disadvantages. Efficient design
is that which ensure that the relevant data are collected accurately.
The researcher has to think about what procedure and technique should be adopted in the
study. He should arrive at the final choice by seeing that methodology chosen for the
project is indeed the best one, when compared with others.
RESEARCH DESIGN
Research Design is the first and the foremost step in Methodology adopted and
undertaking research study. It is the over all plan for the collection and analysis data in
the research project. Thus it is an organized, systematic, approach to be formulation
implementation and control of research project. In fact a well-planned and well-balanced
research design guards against collection of irrelevant data and achieves the results in the
best possible way.
NATURE AND SOURCES OF DATA
The main purpose or objective of this study is to undertake the financial appraisal of
MTNL. To attain this objective this objective, time series and cross section data are
collected on the basis of universe. The basis sources of data are as under.
Annual reports of MTNL, which are recasted and presented in a condensed form. The
statement showing total costs under various heads have also been prepared. Some
information has been collected through formal as well as informal discussion with
various department heads.
36
Data are bricks with which the researcher has to make a house. While the quality of
research findings depend on the data. The adequacy of appropriate data in turn depends
upon proper method of data collection. A number of methods are at the disposal of the
researcher of which one has to select the most appropriate one for visualizing the
research objective. Thus he has to see the method adopted is compatible with the
resources and research and research study.
PRIMARY DATA: Data that are collected fresh and for the first time and thus happens
to be original in character. Primary data are gathered for specific purpose.
SECONDARY DATA: Data that collected from primary data i.e. they already exist
somewhere. For the purpose of our study we collected both the data.
ANALYSIS OF THE DATA OR THE METHODOLOGY
For the analysis of the data, simple and cross tables are prepared for the study. For
comparison percentages and indices are computed for the different variables in the study.
The techniques of comparative and common size balance sheet, analysis, profitability
analysis, working capital analysis, common size profit and loss accounts, ratio analysis,
trend analysis, have been adopted for the financial appraisal. Statistical techniques like
percentage average, index numbers etc. have been used wherever found useful.
37
CHAPTER - 5
DATA ANALYSIS, FINANCIAL ANALYSIS &

INTERPRETATION
CONCEPTUAL FRAMEWORK OF THE PROJECT

A number of methods can be used for the purpose of analysis of Financial Statements.
These are also termed as techniques or tools of financial analysis. Out of these, any of
the techniques is used for analysis of Financial Statements.
The Principal techniques of Financial analysis are:-
1. Ratio Analysis
2. Comparative Financial Statements.
3. Common-Size Statements.
4. Trend Analysis
Anyone out of these techniques can be chosen for financial analysis of an enterprise.
38
RATIO ANALYSIS
1. LIQUIDITY RATIOS
(A) Current Ratio = Current Assets
Current Liabilities
Year 2013 2014 2015

Current Assets 1.352 1.378 1.37
Current Assets
1.39
1.38
1.38
1.37
1.37
1.36 1.35
1.35
1.34
1.33
Years
Interpretation:
Current ratio is less than 2:1. It indicatives lack of liquidity and shortage of working
capital.
2. Activity or Turnover Ratios:-

(A) Stock Turnover Ratio = Cost of goods sold
Average Stock
Year 2013 2014 2015
Stock Turnover ratio (in times) 22.49 55.9 35.1
39
Stock Turnover ratio (in times)

60 55.9
50
40 35.1
30 22.49
20
10
0
Year
(B) Average Collection Period = Average Debtors X365

Net Credit Sales
Year 2013 2014 2015
Average collection period (in times) 2.08 2.78 3.66
Average collection period (in times)

4 3.66
3.5
3 2.78
2.5 2.08
2
1.5
1
0.5
0
Year
(C) Working capital turnover ratio = Cost of goods sold

Working Capital
Year 2013 2014 2015
Working capital turnover ratio 147.14% 130% 120%
40
Working capital turnover ratio

160.00% 147%
140.00% 130%
120%
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
Year
3. Profitability Ratios
A. On the basis of Net profit
(A) Net Profit ratio = Net Profit
Net Sales X100
Year 2013 2014 2015
Net profit ratio 17.35% 22.10% 16.80%
Net profit ratio
25.00%
20.00%
2013 2014 2015
15.00%
10.00%
5.00%
0.00%
B. Operating Net Profit ratio = Operating net Profit

Net Sales X100
41
Year 2013 2014 2015

Operating Net profit ratio 17.30% 22.10% 13.59%
Operating Net Profit Ratios
25.00%
20.00%
2013 2014 2015
15.00%
10.00%
5.00%
0.00%
4. EBIT ratio = EBIT

Income from servicesX100
Year 2013 2014 2015
EBIT ratio 22.26% 27.01% 22.38%
EBIT Ratios
30.00%
25.00%
20.00% 2013 2014 2015
15.00%
10.00%
5.00%
0.00%
42
Interpretation:
Net profits ratio was constantly decreasing up to year 2012 but after this year this has
shown a rise in 2013, but again in 2014 it is down. Decrease in net profits ratio must be
considered similar to decrease in net profits. This is not at all be called inefficiency of
management, but somehow the projects taken in these years will fetch more benefits in
the coming future, but this is a serious matter to look into by the management
Operating net profits ratio with a trend of increase and decrease in alternate years has
been going down. This ratio is calculated by establishing the relationship of operating net
profits with the income from services. Operating net profit is the actual indicator of the
operations of the company.
Earnings before interest and tax (EBIT) ratio is constantly decreasing over the years
expect in the year 2013 which was an expectation to this, which shows a sudden increase
of almost 5% in it.
As in this competitive world, a company can only increase its profitability by decreasing
the dr. side of profits & loss account. So this is very much important, as it is one of the
healthiest contributors to the cost.
MTNL in the year 2007 was spending almost 1/5th of its earnings over its Employees
benefits, but in the year 2015 MTNL is spending almost one Re. For every 3 Rs. earned
i.e. 1/3rd of its income is going for the benefits of its employees.
The ratio is extremely high and this must be looked into and the areas where it can be
possible expenses should be cut-off or at least these must not increase any more.
43
44
1. On the basis of capital employed

A. Return on Capital Employed = Profit before interest, tax and divided
Capital employed X100
Year 2013 2014 2015

Return of Capital Employed 14.35% 16.81% 11.58%
Return Of Capital Employed
18.00%
16.00%
14.00%
2013 2014 2015
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
B. Return on total Shareholders funds = Net profit after interest & tax
Total Shareholders funds X100
Year 2013 2014 2015

Return on total Shareholders 9.24% 110.14% 8.58%
funds
45
Return on Total Shareholder's Funds
120.00%
100.00%
2013 2014 2015
80.00%
60.00%
40.00%
20.00%
0.00%
C. Earning per share (E.P.S.) = Net profit-Dividend on preference Shares

Number of Equity Shares
Year 2013 2014 2015

Earning per share (E.P.S.) Rs. 13.92 18.26 14.90
Earning per Share (E.P.S)
20.00%
18.00%
16.00%
14.00%
2013 2014 2015
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
46
D. Dividend per share (D.P.S.) = Divided paid to Equity Shareholders

Number of Equity Shares
Year 2012 2013 2014
Divided per share (D.P.S) Rs. 4.5 4.5 4.5
Dividend per share (D.P.S) Rs.
9.0
8.0
7.0
2013 2014 2015 #REF!
6.0
5.0
4.0
3.0
2.0
1.0
0.0
47
Interpretation:
Return on capital employed is decreasing over the years. In the years 2014 it was on its
pea to 16.91% but it is now down to only 11.58%. The profitability of the firm is going
down. This is mainly because of the so many players are in the market to eat the same
slice, so the share is decreasing, private companies are coming out with new schemes,
some of which are very attractive , so the customer base is decreasing. Companies have
to be innovative if it wants to remain its position in the market.
Return on equity shareholders funds, which was once more than the return on capital
employed, is now down to less than of its four years back.
Earnings per Share (EPS) of the co. are going down and even the number of shares is
constant. Decrease in EPS is a straight indicator of decrease in profits for the equity
shareholders of the co.
In spite of decreasing income and increasing expenditure, the co. has followed the stable
dividend policy and has been announcing the same amount of dividend of 2835 Mn. Rs.
from many years, which comes to 4.50 Rs. per share. Stable dividend policy ensures the
minimum income for the shareholders and also strengthens their confidence in the
performance of the co.
Because of the dividend is paid irrespective of the income, therefore decrease in income
shows the high dividend payout ratio. EPS is going down and DPS is stable, therefore the
payout ratio is going up in % form, otherwise in the Rs, form it is same. This ratio shows
that how much of the earnings MTNL is paying as dividend to its shareholders.
Even the market value of MTNL is going down this is visible from some of the Ratios
are calculated with the help of market value of one share of MTNL. Earning yield &
Dividend yield are almost similar to EPS & DPS respectively; just they are closer to
reality as they are calculated with the help of Market value of shares.
48
DATA ANALYSIS
COMMENTS ON COMPARATIVE B/S 2014 & 2015
Comments (2014-15)
A year in which a company after making good profits ad even after good performance is
facing this kind of critics shows that how much this deserves and how much this
deserves and how much big are the expectations.
Comparative Balance Sheets of 2013 & 2014 show that there is a marginal increase
in the value of total Assets of company by 5.75%.
Because of the less profits as compare to 2011 & 2012 in the year 2013-14 the
growth in reserve & surplus is only 6.35% as compared to last year increase of 9.4%
Deferred tax liability, which increased by 15.58% last year, is increase by just 1.87%.
A good change in the Assets side is that this year investments are increased by 4.4%
this year, as it was just 2.6%.
Working capital is increased by 5.63%. Actually the reasons why it is increase last
year are almost opposite this year. This year current liabilities, which decrease last
year, increase this year by 7%. And cash increase last year by 41%, decrease this year
by 1.4%.
Another surprise is the inventories, which rose this year by 110.17% as compare to
decrease in previous year of 41%. Capital W.I.P. increase by 30% last year it was
down by 42%.
COMMENTS ON COMPARATIVE P/L 2012, 2013 & 2014

Comments (2014-15)
MTNL is a big name in the telecom industry and lots of people were expecting good
results from organization. But it cant match the expectations of the market. Its net
profits for the year are 9389.79 million Rs. It is not a bad amount, but it is not a good
amount for a company like MTNL, which in the previous year shows the profits of
Rs.11504.78 million
On the basis of previous year its net profits is down by 18.38%. The total income is
also down by 18.38%. The total income is also down almost 9% & income from
services, which is down by 12.2% coming amount to 7772 million Rs.
49
A little relief is from the side of other income which increases by 56.43% to reach at
4917 million Rs. With an increase of 1773 million Rs. over the previous year 2014.
If we see the profits & loss account, we find that the total cost for this year has gone
done by 2.59% over 2014. But that isnt enough for it.
Profits before tax are down by 27.89%, net profits by 18.38%, profits after tax by
23.18%.
These kinds of figures dont suit to this kind of company. But we can call this the
worst time for a company, because of the reputation it has gained in the market and a
year comes which stuck the confidence in the company.
Almost all cost has gone down or a small increase is shown expect employees
benefits, which have still increase by 13.37%. This expense is now on the no.1
position in the expenditure side coming no.2 last year.
But this is not the first time for MTNL, if we take the data of last 4-5 years. In the
year 2013 the condition of the company was almost similar this year. Profits were
down; income was not increased infect it was down.
But MTNL survives from this position and shows good results in the next year i.e.
2013. But again in 2015 the situation is same.
If this happen again and again, then the company will lose the confidence. It is not
consistent in the previous years. Some expenses have been increasing constantly
while these income from services is not increasing infect if we compare this of 2015
with that of 2012 it is down by almost 2006 million Rs. it means that it is ground in
the market.
COMMENTS ON COMMON-SIZE B/S 2014 & 2015

Comments (2014-15)
The conditions of Common-Size balance Sheet is also not as good as like the profits
and loss a/c.
Because of fall in the profits, increase in reserves 7 Surplus balance is negligible.

They are the same as they were before of the total sources of funds.
50
Fixed assets portion is almost the same i.e. proportion, but the working capital for the
year. This is mainly because of the reason that the funds investment in current
liabilities has gone down this year to 445 from 47.45%. Previous value it in the case
W.I.P.
Investment this year is same as before
COMMENTS ON COMMON-SIZE PROFIT& LOSS A/C

2014 & 2015
Comments (2014-15)
As it is evident from the comparative Profits and loss a/c that the income and profits
of the company are down as compare to previous year but this is used to describe the
different the different position of the company.
This shows that the income service, which was 955 of total income last year, has
contributed just 91.9% this year i.e. the part of other income has rise sharply. Income
from the operations of the business is the much low as comparison to the total
income.
Profits earned in 2014 is 15.43% on the total income is good % but as compare to
17.21% last year, this was expected to be somewhere around 20%.
While taking of expenditure side the portion of employees benefits is at the top
position using 30.185 of total income and it is almost double to its nearest
expenditure was 245 it has risen up by 25% (over its previous value of 24%) this
year, this fact is also evident from Employees expenditure Ratio.
Revenue sharing has decrease more than proportion.
This is critical condition when income has fall sharply but expenditures are standing
firmly on their position.
51
FINANCIAL GRAPHICAL ANALYSIS(TREND LINES)
Operating Profit & OPM
Operating Profit gives an indication of the current operational profitability of the

business and allows a comparison of profitability between different companies after
removing out expenses that can obscure how the company is really performing.
Interest cost depends on the management's choice of financing, tax can vary widely
depending on acquisitions and losses in prior years, and depreciation and amortization
policies may differ from company to company.
52
EBITDA, PBT & PAT
EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and

Amortization. PBT stands for Profit Before Tax, and PAT stands for Profit After Tax.
The graph visually shows how the net profit of the company stand reduced due to the
impact of Interest, Depreciation, and Tax.
Total Assets & Asset Turnover Ratio
Total Assets is the sum of all assets, current and fixed. The asset turnover ratio measures
the ability of a company to use its assets to efficiently generate sales. The higher the ratio
indicates that the company is utilizing all its assets efficiently to generate sales.
Companies with low profit margins tend to have high asset turnover.
53
Net Sales
Sales are the total amount of products or services sold by the company.
EBITDA
EBITDA is an acronym for Earnings before Interest, Taxes, Depreciation, and
Amortization.
It gives an indication of the current operational profitability of the business and allows a
comparison of profitability between different companies after removing out expenses
that can obscure how the company is really performing.
54
55
Profit Before Tax
Profit before tax deducts all expenses from revenue including interest expenses and
operating expenses, excluding tax. Since taxes change every year, PBT gives investors a
good idea about the company profits every year.
Profit After Tax
Profit after tax, also referred as the bottom-line, is a measure of the profitability of the
company after deducting all its expenses.
56
CHAPTER - 6
CONCLUSION & IMPLICATIONS
Financial management is of crucial importance in management decision making. The
optimal of financial soundness is could be achieve by company that manage the tradeoff
between liquidity and solvency management. The purpose of this study is to investigate
the effective liquidity management to support companies while meeting its short term
operational or working requirements where as analysis of solvency, fixed assets and
return on equity concentrates on long term performance. A descriptive statistics discloses
that liquidity and solvency position in both long and short term is very dissatisfactory
and companies soon have to opt for its correction. F-tests confirm a lower degree of
association between and within financial variables. Thus, company manger should
concern on financial management, especially unexplained variables in purpose of
creation shareholder wealth.
Being a government undertaking MTNL has proved its efficiency over the years and
has emerge as market leader in spite of the stiff complementation from private players
and a bundle full of government restrictions and regulations. It ranked as a NAV-
RATAN company by the government of India. It is continuously increasing its
operations and coming out with new products to meet the consumer needs.
MTNL is a good profit making firm and its efficiency is increasing over the years but in
the year 2011, 2012 its profitability has gone down due to some factors, which have been
explained, in the preceding chapters and at adequate time.
MTNL as it was operating few years back is now in a different world of competition.
There are so many good players, which are eating its market share slowly. There is only
one-way to gain or even retain its current market is to go more innovative.
MTNL in a world where its competitors are announcing new schemes every day, have to
come out from the image of a government undertaking it should move according to the
need of the hour.
In MTNL there is strong need of an effective Management information System (MIS),

which could help improving its current position. An effective MIS is demanded from an
organization, which dreams to be successful.
57
It should cut its cost, because when earnings are hard to increase then to increase profits
there is only one way left, which is to control the expenditures. In case of MTNL this s
very much important to cut its cost, because this is an organization, which expands 1/3rd
of its earnings on its Employees and 1/5th on the Administration, expenses.
It has to fast up its collection from its customers. It has come out with some good
schemes like advance payment of bill and it is offering 5% interest on the advance
deposited with it by the customers.
It needs few more schemes which could motivate the customers to pay early or even in
time. It has to change its picture 7 it should present itself in the market as a very
attractive company, because it has resources and it is able to provide good services to
more also, but the need is to attract customers.
Marketing of its products like advertising needs to be more effective because if the fixed
cost is divided among more customers than per customers cost will be low and revenue
per customer will fetch more profits to the company, as at this very point china is far
away from India. Timely revision of rentals and introduction of new schemes will make a
significant difference in its customers base and people will start thinking that the
company is committed to provide more benefits to them and working in this direction.
Because the major contributor to the generation of revenue is the capital assets and
therefore MTNL should change its priority of spending more for the benefits of
employees to the generation of capital assets or the modernization of them. It should look
more for the fixed assets, which could contribute or can render services in the coming
years.
It can go for schemes like VRS and can take steps like shortening the retirement age to
control the employees by decreasing the employee base. Actually this problem has its
origin in the policy of MTNLS social obligations to generate more employment for the
nation. It should also go for the detailed analysis of the cost centers, revenue centers &
profits centers so that the least profitable activities if possible are eliminate but without
effecting the performance or at least control must be there.
Well if we compare the efficiency of Indian telecom cos (MTNL, BSNL) with that of
Chinese (Chinese telecom, Chinese Netcom), then we will see that Average Revenue Per
User (ARPU) of Basic Phone of Indian companies is 15 U.S. $ and of Chinese is 9.14
58
U.S. $ and APRU of mobile (GSM+ CDMA) of Indian is 9.04 U.S. $ and that of Chinese
firms is 9.69 U.S. $. But the significant difference are there in OPEX (Operating
Expenditure) per user of basic in India is 5.92 U.S. $ & in china 4.3 U.S. $ and of mobile
in India is 4.18 U.S. $ as compare to very low in china is only 2.41 U.S. $. That is major
difference why Chinese firms are more effective than Indian firms &that is mainly
because of the Expenses of License fee, revenue sharing, etc. contributes almost 10% of
our earrings. But in china is almost negligible, because there are all 4 layers are
government
Competition within India is also increased because of the TRAIs decision to allow the
companies to operate in both areas of telecom i.e. Basic &Cellular by having a single
license. Earlier two different Licenses were needed to enter in two areas. Also MTNL
doesnt have any debt capital; it has whole Equity capital, so it is away from reaping the
benefits of Debt Capital from the market. Well Debt capital has so many benefits, it is
easily available and there is a fixed cost of it. It has flexibility in nature. Its interest is a
tax-deductible expense in the profits and loss account. So MTNL must think in this area
of using Debt capital to reap some of its benefits.
In the end I could only say that there is a lot of scope for MTNL to improve its efficiency
in certain areas cited above. But because of a government undertaking it is helpless in
some areas where the private competitors have an edge over it like it cant overlook the
societal aspect it has to generate Employment, it is providing services in the Rural Areas
coming under its region, it is not earning from these areas but this is just because of its
social obligations to provide services there also. It has to pass through government rules
and restrictions, it is not fully independent, it has to survive from these limitations and
therefore it is said that could improve a lot if these restrictions are reduced.
59
CHAPTER - 7
LIMITATIONS OF ANALYSIS
However I have tried my best in collecting the relevant information, yet there are always
present some limitations over which researcher has to work. In my case also there were
some problem, which were being faced by me. Some of them are as follows:
Sample Size
The sample size taken by me was limited over three years, which may not be fully
representative of the universe. A large sample size could not be taken due to time and
cost constraints.
Sample Area: New Delhi & Ghaziabad
Period of study
The study has been carried out for the period financial 2014 to 2015.
No availability of current data
Being a govt. organization MTNL proved its efficiency. But still financial statements are
not prepared. Its shows work culture of a govt. organization.
Lack of Experience
Another faced by me during the training was my lack of experience in the organization, it
takes some time to adjust, but the time frame was limited to just two months. Still I have
tried my best to overcome this problem.
Money
The money available with me also imposed a limitation on the comprehensiveness of this
research.
60
BIBLIOGRAPHY
1) Altman,(1968): Financial ratio discriminate analysis and prediction of

corporate bankruptcy, Journal of finance
2) Abdul Aziz, (1984): Bankruptcy prediction and investigation of cash

flow based models, PhD. Thesis at Dallas, 3 9..
3) Abhulimen, R.A. and Chibuike U.U.(2002). Research design and
implementation in accounting and finance, university of Benin Press
4) Ben Kwame Agyei-Mensah, (2010). Financial management practices of
small firms in Ghana: An empirical study, African Journal of Business
Management Vol.5 (10)
Reference of Web Pages
1. http://www.investopedia.com/walkthrough/corporate-finance/5/capital-
structure/mtnl
2. https://www.mtnl.net.com/Pages/FinancialStatement.aspx?Year=null
3. http://www.trai.gov.in
4. http://www.myaccountingcourse.com/financial-ratios/
5. http://en.wikipedia.org/wiki/mtnl
A huge amount of reliable data was required to accomplish this task, which
was made available to me by following sources:
Printed Literature
Annual general reports of MTNL.
Functional specification of WFMS.
Newspapers such as The Economic Times & The Times of India out
of which the data was collected through the press releases of MTNL &
also the share prices of MTNL.
61
ANNEXURE
BALANCE SHEET
- in Rs. Cr.
Balance Sheet of Mahanagar Telephone Nigam
-----
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 630.00 630.00 630.00 630.00 630.00
Equity Share Capital 630.00 630.00 630.00 630.00 630.00
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 4,410.71 -3,414.43 1,906.70 6,016.48 8,818.40
Networth 5,040.71 -2,784.43 2,536.70 6,646.48 9,448.40
Secured Loans 4,365.00 5,932.35 7,000.00 2,553.97 0.00
Unsecured Loans 9,755.44 5,606.34 2,647.49 4,901.71 0.00
Total Debt 14,120.4 11,538.6 9,647.49 7,455.68 0.00
4 9
Total Liabilities 19,161.1 8,754.26 12,184.1 14,102.1 9,448.40
5 9 6
Application Of Funds
Gross Block 24,808.9 27,700.6 27,784.8 29,377.9 28,275.7
7 2 6 8 7
Less: Revaluation 0.00 0.00 0.00 0.00 0.00
Reserves
Less: Accum. Depreciation 13,588.0 12,801.4 12,024.6 13,054.9 11,720.7
2 3 8 5 9
Net Block 11,220.9 14,899.1 15,760.1 16,323.0 16,554.9
5 9 8 3 8
Capital Work in Progress 382.57 932.24 897.00 1,170.25 1,177.96
Investments 201.98 221.98 491.98 494.66 509.54
Inventories 69.89 81.95 100.56 125.48 158.51
Sundry Debtors 291.80 381.00 328.83 610.09 720.04
Cash and Bank Balance 246.31 109.89 86.83 122.82 100.01
Total Current Assets 608.00 572.84 516.22 858.39 978.56
Loans and Advances 15,022.7 9,724.27 9,241.76 9,490.86 10,811.6
8 0
Fixed Deposits 0.00 0.00 0.00 17.36 4,775.38
Total CA, Loans & 15,630.7 10,297.1 9,757.98 10,366.6 16,565.5
Advances 8 1 1 4
Deferred Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 6,281.75 6,236.31 5,714.82 5,605.70 17,094.4
5
Provisions 1,993.40 11,359.9 9,008.13 8,646.68 8,265.17
4
Total CL & Provisions 8,275.15 17,596.2 14,722.9 14,252.3 25,359.6
5 5 8 2
62
Net Current Assets 7,355.63 -7,299.14 -4,964.97 -3,885.77 -8,794.08

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 19,161.1 8,754.27 12,184.1 14,102.1 9,448.40
3 9 7
Contingent Liabilities 6,288.82 6,808.10 3,393.68 3,378.52 4,607.59
Book Value (Rs) 80.01 -44.20 40.27 105.50 149.97
63
Mahanagar Telephone Nigam Previous Years

Standalone Profit & Loss account ------------- in Rs. Cr.
---------------

Income
Sales Turnover 3,391.74 3,428.66 3,373.25 3,675.51 3,657.75
Excise Duty 0.00 0.00 0.00 0.00 0.00
Net Sales 3,391.74 3,428.66 3,373.25 3,675.51 3,657.75
Other Income 12,016.5 285.42 251.16 232.31 1,234.55
7
Stock Adjustments 0.00 0.00 0.00 0.00 0.00
Total Income 15,408.3 3,714.08 3,624.41 3,907.82 4,892.30
1
Expenditure
Raw Materials 0.00 0.00 0.00 0.00 0.00
Power & Fuel Cost 262.74 244.71 213.53 205.48 219.44
Employee Cost 2,615.40 4,901.37 3,711.56 3,258.55 4,869.48
Other Manufacturing 0.00 0.00 0.00 116.87 102.56
Expenses
Selling and Admin 0.00 0.00 0.00 678.86 757.89
Expenses
Miscellaneous Expenses 1,436.38 1,212.55 1,298.72 603.71 680.59
Preoperative Exp 0.00 0.00 0.00 -38.41 -36.61
Capitalised
Total Expenses 4,314.52 6,358.63 5,223.81 4,825.06 6,593.35
Operating Profit -922.78 - - - -
2,929.97 1,850.56 1,149.55 2,935.60
PBDIT 11,093.7 - - -917.24 -
9 2,644.55 1,599.40 1,701.05
Interest 1,390.15 1,180.26 949.16 494.56 11.03
PBDT 9,703.64 - - -1,411.80 -
3,824.81 2,548.56 1,712.08
Depreciation 1,165.74 1,476.94 1,496.22 1,410.15 1,759.49
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 8,537.90 - - - -
5,301.75 4,044.78 2,821.95 3,471.57
Extra-ordinary items -215.58 -19.38 -65.02 26.58 509.58
PBT (Post Extra-ord Items) 8,322.32 - - - -
5,321.13 4,109.80 2,795.37 2,961.99
Tax 497.18 0.00 0.00 0.19 -355.11
Reported Net Profit 7,825.13 - - - -
5,321.12 4,109.78 2,801.92 3,063.79
Total Value Addition 4,314.52 6,358.62 5,223.81 4,825.06 6,593.35
Preference Dividend 0.00 0.00 0.00 0.00 0.00
64
Equity Dividend 0.00 0.00 0.00 0.00 0.00

Corporate Dividend Tax 0.00 0.00 0.00 0.00 0.00
Per share data (annualised)
Shares in issue (lakhs) 6,300.00 6,300.00 6,300.00 6,300.00 6,300.00
Earning Per Share (Rs) 124.21 -84.46 -65.23 -44.47 -48.63
Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00
Book Value (Rs) 80.01 -44.20 40.27 105.50 149.97
Mahanagar Telephone Nigam

------------------- in Rs. Cr. -------------------
Cash Flow

Net Profit Before Tax 8537.89 -5301.74 -4044.77 -2774.75 -3418.91
Net Cash From -4249.12 -374.25 -754.22 -11004.62 11136.17
Operating Activities
Net Cash (used 3150.43 -330.95 -584.17 -766.80 -10989.87
in)/from
Investing Activities
Net Cash (used 1235.11 728.26 1285.08 7036.21 -73.71
in)/from Financing
Activities
Net 136.42 23.06 -53.31 -4735.21 72.59
(decrease)/increase
In Cash and Cash
Equivalents
Opening Cash & Cash 109.89 86.83 140.14 4875.39 4802.80
Equivalents
Closing Cash & Cash 246.31 109.89 86.83 140.18 4875.39
Equivalents
65

Standalone Quarterly Results ------------------- in Rs. Cr. -------------------
Dec Sep '14 Jun '14 Mar '14 Dec '13

'14
Net Sales/Income 813.92 845.26 854.33 840.35 847.20
from operations
Other Operating 3.00 5.46 1.69 1.38 6.19
Income
Total Income From 816.92 850.72 856.02 841.73 853.39
Operations
EXPENDITURE
Consumption of Raw -- -- -- -- --
Materials
Purchase of Traded -- -- -- -- --
Goods
Increase/Decrease in -- -- -- -- --
Stocks
Power & Fuel -- -- -- -- --
Employees Cost 562.89 645.88 654.11 -409.59 1,048.49
Depreciation 291.11 289.10 290.48 307.37 135.20
Excise Duty -- -- -- -- --
Admin. And Selling 171.06 229.06 173.02 704.22 175.66
Expenses
R & D Expenses -- -- -- -- --
Provisions And -- -- -- -- --
Contingencies
Exp. Capitalised -- -- -- -- --
Other Expenses 224.40 162.13 162.98 157.80 159.41
P/L Before Other Inc. , -432.54 -475.45 -424.57 81.93 -665.35
Int., Excpt. Items &
Tax
Other Income 64.52 50.59 54.31 162.80 47.22
P/L Before Int., Excpt. -368.02 -424.86 -370.26 244.73 -618.13
Items & Tax
Interest 362.81 409.36 362.97 363.27 358.71
P/L Before -730.83 -834.22 -733.23 -118.54 -976.85
Exceptional Items &
Tax
Exceptional Items -- -- -- 10,216.05 1,404.88
P/L Before Tax -730.83 -834.22 -733.23 10,097.51 428.03
Tax -- -- -- 497.18 --
P/L After Tax from -730.83 -834.22 -733.23 9,600.33 428.03
Ordinary Activities
Prior Year -- -- -- -- --
Adjustments
Extra Ordinary Items -- -- -- -- --
Net Profit/(Loss) For -730.83 -834.22 -733.23 9,600.33 428.03
66
the Period
Reserves Excluding -- -- -- -- --
Revaluation Reserves
Equity Dividend Rate -- -- -- -- --
(%)
EPS Before Extra Ordinary
Basic EPS -11.60 -13.24 -11.64 152.39 6.79
Diluted EPS -11.60 -13.24 -11.64 152.39 6.79
EPS After Extra Ordinary
Basic EPS -11.60 -13.24 -11.64 152.39 6.79
Diluted EPS -11.60 -13.24 -11.64 152.39 6.79
Public Share Holding
No Of Shares (Crores) 27.56 27.56 27.56 27.56 27.56
Share Holding (%) 43.75 43.75 43.75 43.75 43.75
Promoters and Promoter
Group Shareholding
a) Pledged/Encumbered
- Number of shares -- -- -- -- --
(Crores)
- Per. of shares (as a % -- -- -- -- --
of the total sh. of
prom. and promoter
group)
- Per. of shares (as a % -- -- -- -- --
of the total Share Cap.
of the company)
b) Non-encumbered
- Number of shares 35.44 35.44 35.44 35.44 35.44
(Crores)
- Per. of shares (as a % 100.00 100.00 100.00 100.00 100.00
of the total sh. of
prom. and promoter
group)
- Per. of shares (as a % 56.25 56.25 56.25 56.25 56.25
of the total Share Cap.
of the company)
Notes | |201409 |201406 |201403 |201312
201412
67

Standalone Half Yearly ------------------- in Rs. Cr. -------------------
Results
Sep '14 Mar '14 Sep '13 Mar '13 Sep '12
Net Sales/Income 1,699.5 1,687.55 1,691.61 1,750.96 1,667.91
from operations 9
Other Operating 7.15 7.57 5.01 2.65 7.14
Income
Total Income From 1,706.7 1,695.12 1,696.62 1,753.61 1,675.05
Operations 4
EXPENDITURE
Consumption of -- -- -- -- --
Raw Materials
Purchase of Traded -- -- -- -- --
Goods
Increase/Decrease in -- -- -- -- --
Stocks
Power & Fuel -- -- -- -- --
Employees Cost 1,299.9 638.89 1,976.51 2,951.81 1,949.55
9
Depreciation 579.58 442.57 723.18 746.35 730.59
Excise Duty -- -- -- -- --
Admin. And Selling 402.08 879.88 366.25 362.06 372.41
Expenses
R & D Expenses -- -- -- -- --
Provisions And -- -- -- -- --
Contingencies
Exp. Capitalised -- -- -- -- --
Other Expenses 325.11 317.21 351.37 385.74 356.44
P/L Before Other -900.02 -583.42 -1,720.69 -2,692.34 -1,733.94
Inc. , Int., Excpt.
Items & Tax
Other Income 104.90 210.03 185.61 152.91 132.51
P/L Before Int., -795.12 -373.39 -1,535.08 -2,539.44 -1,601.43
Excpt. Items & Tax
Interest 772.33 721.99 668.16 628.68 551.58
P/L Before - -1,095.38 -2,203.24 -3,168.11 -2,153.01
Exceptional Items & 1,567.4
Tax 5
Exceptional Items -- 11,620.93 -- -- --
P/L Before Tax - 10,525.55 -2,203.24 -3,168.11 -2,153.01
1,567.4
5
Tax -- 497.18 -- -- --
P/L After Tax from - 10,028.37 -2,203.24 -3,168.11 -2,153.01
Ordinary Activities 1,567.4
5
68
Prior Year -- -- -- -- --
Adjustments
Extra Ordinary -- -- -- -- --
Items
Net Profit/(Loss) - 10,028.37 -2,203.24 -3,168.11 -2,153.01
For the Period 1,567.4
5
Reserves Excluding -- -- -- -- --
Revaluation
Reserves
Equity Dividend -- -- -- -- --
Rate (%)
EPS Before Extra Ordinary
Basic EPS -24.88 -- -34.97 -- -34.17
Diluted EPS -24.88 -- -34.97 -- -34.17
EPS After Extra Ordinary
Basic EPS -24.88 -- -34.97 -- -34.17
Diluted EPS -24.88 -- -34.97 -- -34.17
Public Share Holding
No Of Shares 27.56 27.56 27.56 27.56 27.56
(Crores)
Share Holding (%) 43.75 43.75 43.75 43.75 43.75
Promoters and Promoter
Group Shareholding
a) Pledged/Encumbered
- Number of shares -- -- -- -- --
(Crores)
- Per. of shares (as a -- -- -- -- --
% of the total sh. of
prom. and promoter
group)
- Per. of shares (as a -- -- -- -- --
% of the total Share
Cap. of the
company)
b) Non-encumbered
- Number of shares 35.44 35.44 35.44 35.44 35.44
(Crores)
- Per. of shares (as a 100.00 100.00 100.00 100.00 100.00
% of the total sh. of
prom. and promoter
group)
- Per. of shares (as a 56.25 56.25 56.25 56.25 56.25
% of the total Share
Cap. of the
company)
Notes |201409 |201403 |201309 |201303 |201209
69
70

Capital Structure
Period Instrumen --- CAPITAL (Rs. - PAI D U P-
t cr) ---
Fro To Authorise Issued Shares Face Capita
m d (nos) Value l
2013 201 Equity 800 630 63000000 10 630
4 Share 0
2012 201 Equity 800 630 63000000 10 630
3 Share 0
2011 201 Equity 800 630 63000000 10 630
2 Share 0
2010 201 Equity 800 630 63000000 10 630
1 Share 0
2009 201 Equity 800 630 63000000 10 630
0 Share 0
2008 200 Equity 800 630 63000000 10 630
9 Share 0
2007 200 Equity 800 630 63000000 10 630
8 Share 0
2006 200 Equity 800 630 63000000 10 630
7 Share 0
2005 200 Equity 800 630 63000000 10 630
6 Share 0
2004 200 Equity 800 630 63000000 10 630
5 Share 0
2003 200 Equity 800 630 63000000 10 630
4 Share 0
2002 200 Equity 800 630 63000000 10 630
3 Share 0
2001 200 Equity 800 630 63000000 10 630
2 Share 0
1999 200 Equity 800 630 63000000 10 630
0 Share 0
1997 199 Equity 800 630 63000000 10 630
9 Share 0
1994 199 Equity 800 600 60000000 10 600
7 Share 0
1993 199 Equity 800 600 60000000 10 600
4 Share 0
1992 199 Equity 800 600 60000000 10 600
3 Share 0
1991 199 Equity 800 600 60000000 10 600
7 Share 0
71

Key Financial Ratios
Mar Mar '13 Mar '12 Mar '11 Mar '10

'14
Investment Valuation Ratios
Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share -- -- -- -- --
Operating Profit Per Share -14.65 -46.51 -29.37 -18.35 -46.66
(Rs)
Net Operating Profit Per 53.84 54.42 53.54 58.34 58.06
Share (Rs)
Free Reserves Per Share -- -- -- 88.44 129.13
(Rs)
Bonus in Equity Capital -- -- -- -- --
Profitability Ratios
Operating Profit -27.20 -85.45 -54.85 -31.44 -80.36
Margin(%)
Profit Before Interest And -55.14 -118.65 -92.33 -65.20 -94.18
Tax Margin(%)
Gross Profit Margin(%) -61.57 -128.53 -99.21 -69.81 -128.47
Cash Profit Margin(%) -63.75 -102.98 -70.31 -35.34 -25.32
Adjusted Cash Margin(%) -63.75 -102.98 -70.31 -35.34 -25.32
Net Profit Margin(%) 206.6 -143.26 -113.39 -71.20 -61.40
1
Adjusted Net Profit 206.6 -143.26 -113.39 -71.20 -61.40
Margin(%) 1
Return On Capital -8.83 -47.07 -25.40 -16.35 -35.63
Employed(%)
Return On Net Worth(%) 155.2 191.10 -162.01 -42.15 -32.42
3
Adjusted Return on Net -71.02 -- -159.45 -42.14 -31.99
Worth(%)
Return on Assets 80.01 -44.20 40.27 105.50 149.97
Excluding Revaluations
Return on Assets Including 80.01 -44.20 40.27 105.50 149.97
Revaluations
Return on Long Term -12.87 -99.24 -32.45 -25.06 -35.63
Funds(%)
Liquidity And Solvency Ratios
Current Ratio 1.09 0.46 0.56 0.54 0.65
Quick Ratio 1.88 0.58 0.66 0.72 0.65
Debt Equity Ratio 2.80 -- 3.80 1.12 --
Long Term Debt Equity 1.61 -- 2.76 0.38 --
Ratio
Debt Coverage Ratios
Interest Cover -1.22 -3.49 -3.26 -5.10 -2,670.39
Total Debt to Owners Fund 2.80 -- 3.80 1.12 --
72
Financial Charges -0.38 -2.24 -1.69 -1.81 -145.72

Coverage Ratio
Financial Charges 7.47 -2.26 -1.75 -1.81 -117.21
Coverage Ratio Post Tax
Management Efficiency Ratios
Inventory Turnover Ratio 48.53 41.84 33.54 -- --
Debtors Turnover Ratio 10.08 9.66 7.19 5.53 4.87
Investments Turnover 48.53 41.84 33.54 -- 23.07
Ratio
Fixed Assets Turnover 0.17 0.18 0.18 -- --
Ratio
Total Assets Turnover 0.24 6.24 1.01 0.26 0.39
Ratio
Asset Turnover Ratio 0.24 0.33 0.26 0.31 0.34
Average Raw Material -- -- -- -- --

Holding
Average Finished Goods -- -- -- -- --
Held
Number of Days In 298.5 -1,205.45 -916.00 -385.88 -865.52
Working Capital 0
Profit & Loss Account Ratios
Material Cost Composition -- -- -- -- --
Imported Composition of -- -- -- -- --
Raw Materials Consumed
Selling Distribution Cost -- -- -- 2.08 3.29
Composition
Expenses as Composition 0.25 0.11 0.17 0.10 0.13
of Total Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net -- -- -- -- --
Profit
Dividend Payout Ratio -- -- -- -- --
Cash Profit
Earning Retention Ratio 100.0 -- -- -- --
0
Cash Earning Retention -- -- -- -- --
Ratio
AdjustedCash Flow Times -- -- -- -- --
'14
Earnings Per Share 124.2 -84.46 -65.23 -44.47 -48.63
1
Book Value 80.01 -44.20 40.27 105.50 149.97
73
Mahanagar Telephone
Nigam
------------------- in Rs. Cr. -------------------

'14
Investment Valuation Ratios
Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share -- -- -- -- --
Operating Profit Per Share -14.31 -46.23 -29.16 -19.28 -46.43
(Rs)
Net Operating Profit Per 55.17 55.50 54.63 59.46 58.93
Share (Rs)
Free Reserves Per Share -- -- -- -- 128.72
(Rs)
Bonus in Equity Capital -- -- -- -- --
Profitability Ratios
Operating Profit -25.94 -83.29 -53.37 -32.42 -78.78
Margin(%)
Profit Before Interest And -54.05 -116.54 -90.59 -64.88 -93.09
Tax Margin(%)
Gross Profit Margin(%) -60.22 -126.10 -97.26 -70.41 -126.51
Cash Profit Margin(%) -61.79 -100.60 -68.58 -33.97 -24.79
Adjusted Cash Margin(%) -61.79 -100.60 -68.58 -33.97 -24.79
Net Profit Margin(%) 201.9 -140.68 -111.22 -68.93 -60.71
7
Adjusted Net Profit 201.9 -140.68 -111.22 -68.93 -60.71
Margin(%) 7
Return On Capital -8.85 -47.09 -25.39 -16.45 -35.66
Employed(%)
Return On Net Worth(%) 155.0 190.89 -162.18 -42.30 -32.50
8
Adjusted Return on Net -71.08 -- -159.60 -42.32 -32.07
Worth(%)
Return on Assets 80.04 -44.26 40.22 105.15 149.56
Excluding Revaluations
Return on Assets Including 80.04 -44.26 40.22 105.15 149.56
Revaluations
Return on Long Term -12.89 -99.35 -32.45 -25.25 -35.66
Funds(%)
Liquidity And Solvency Ratios
Current Ratio 1.09 0.47 0.57 0.45 0.67
Quick Ratio 1.87 0.58 0.66 0.70 0.62
Debt Equity Ratio 2.80 -- 3.81 1.13 --
Long Term Debt Equity 1.61 -- 2.76 0.39 --
Ratio
Debt Coverage Ratios
Interest Cover -1.22 -3.49 -3.26 -5.12 -1,095.89
74
Total Debt to Owners Fund 2.80 -- 3.81 1.13 0.00

Financial Charges -0.36 -2.22 -1.67 -1.98 -123.99
Coverage Ratio
Financial Charges 7.48 -2.24 -1.74 -2.05 -99.54
Coverage Ratio Post Tax
Management Efficiency Ratios
Inventory Turnover Ratio 48.32 41.81 33.58 29.57 --
Debtors Turnover Ratio 9.81 9.28 9.62 6.72 4.76
Investments Turnover 48.32 41.81 33.58 29.57 23.24
Ratio
Fixed Assets Turnover 0.17 0.18 0.18 0.20 0.22
Ratio
Total Assets Turnover 0.24 6.39 1.03 0.81 -8.44
Ratio
Asset Turnover Ratio 0.25 0.33 0.26 0.32 0.22
Average Raw Material -- -- -- -- --

Holding
Average Finished Goods -- -- -- -- --
Held
Number of Days In 288.0 -1,181.91 -893.12 -682.40 -852.05
Working Capital 2
Profit & Loss Account Ratios
Material Cost Composition -- -- -- -- --
Imported Composition of -- -- -- -- --
Raw Materials Consumed
Selling Distribution Cost -- -- -- -- 3.40
Composition
Expenses as Composition 0.25 0.11 -- -- --
of Total Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net -- -- -- -- --
Profit
Dividend Payout Ratio -- -- -- -- --
Cash Profit
Earning Retention Ratio 100.0 -- -- -- --
0
Cash Earning Retention -- -- -- -- --
Ratio
AdjustedCash Flow Times -- -- -- -- --
75

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Financial Analysis of MTNL

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A PROJECT REPORT

FINANCIAL ANALYSIS OF MTNL

Submitted in partial fulfillment of the requirement for the

Under the Guidance of: Submitted by:

MAHARAJA AGRASEN INSTITUTE OF TECHNOLOGY

(Affiliated to G.G.S.I.P. University)

Sector 22, Rohini, Delhi -110086

An ISO 9001:2008 Certified Institute

CERTIFICATE FROM GUIDE

Books, Magazines and Newspapers etc.

The training report is the presentation of my observation at the MAHANAGAR

Introduction of Telecom over all Industry................................3

Statement of the Problem: ........................................................4

Players in the market.................................................................6

Financial Analysis of Telecom Industry of India & China

Objectives of the study8

CHAPTER -2: LITERATURE REVIEW...................................................9-12

CHAPTER -3: COMPANY ANALYSIS.....................................................13-35

Company profile about MTNL.................................................13

Corporate objective .................................................................13

Disinvestment/global depository receipts................................23

Millennium telecom limited.....................................................24

Mahanagar telephone Mauritius limited (MTML) ..................24

Market share of MTNL in total subscriber base ......................25

Average revenue per user (ARPU)...........................................27

Opex per subscriber..................................................................28

Capital employed cost per subscriber:......................................29

Financial statements and Significance.....................................30

CHAPTER -4: RESEARCH METHODOLOGY......................................36-37

Nature and sources of data.......................................................36

CHAPTER-5: DATA ANALYSIS...............................................................38-55

Ratio Analysis ..........................................................................39

o On the basis of capital employed.44

Comparative Balance sheet and P&L..47

Common size Balance Sheet and P&L...................................49

CHAPTER-6: CONCLUSION & IMPLICATIONS.................................54-56

CHAPTER-7: LIMITATIONS OF THE STUDY........................................57

Annual Report, Balance Sheets............................................

Business description A detailed description of the companys operations and business

Corporate strategy GlobalDatas summarization of the companys business strategy.

SWOT analysis A detailed analysis of the companys strengths, weaknesses,

Company history Progression of key events associated with the company.

Key competitors A list of key competitors to the company.

Key employees A list of the key executives of the company.

Executive biographies A summary of the executives employment history.

Note: Some sections may be missing if the companys data is unavailable.

Understand and respond to your competitors business structure and strategies

Introduction of Telecom over all Industry

Heavy capital investment.

High collection period.

Substantial investment in after sales services

Statement of the Problem:

Players in the market

BSNL as a company is growing and showed annual revenues of approximately $4.5

BlackBerry plans to set up enterprise solutions centres to educate corporate customers

A look ahead: According to Craig Wigginton, vice chairman and U.S.

FINANCIAL ANALYSIS OF TELECOM INDUSTRY OF INDIA &

OBJECTIVE OF THE STUDY

Objective provides a framework for optimum financial decision-making. The various

objectives of studies are as follows:-

To know the financial position of the organization.

To know the working style of the organization.

To get the information about earning potential of this enterprise.

To know the capability of payment of interest of dividend analysis.