Analysis of financial statements with special reference to BMTC, Bangalore

Transportation industry contributes a major role in the development of a company. Transportation is the systems and modes of conveyance of people and goods from place to Place. It can be considered the major infrastructural element of an area. On august 15,1997, the 50^th anniversary of independence, the Bangalore transport services (BTS) which, had been managing public transport services in Bangalore city, was bifurcated from the Karnataka stare road transport corporation (KSRTC) and was converted into an independence corporation under the name of Bangalore metropolitan transport corporation (BMTC). The main objective is, to evaluate the financial efficiency, to identify the growth in co-relation with revenues and expenditures of the BMTC during the study period. The present study has been conducted on the basis of secondary data and is descriptive in its nature. The study period was confined to a period of five financial years from 2008–09 to 2012–13. The required secondary data for the study was collected through different websites, annual reports of BMTC and different journals. To make the analysis meaningful advanced statistical tools like – Ratios were applied. To test hypothesizes the correlation and regression was applied with the help of SPSS.21 Software package. The major findings are: The overall rating of the organization is satisfactory in terms of the financial statements of the company. The current liabilities have increased over the period of time than current assets which indicated less liquidity position of the firm. The company quick ratio is not at all satisfactory during the study period except for the year 2010–11 by comparing with standards. It is identified that in the year 2008–09 the net profit is high at 0.66 and thereafter it was gradually decreasing and reached to 0.35 by the year 2012–13. There is high positive correlation between Operating expenses and Non-operating expenses of BMTC. The management should take a serious action to maintain existing operations and improve latest techniques to retain them in the organization and increase profit.