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A STUDY ON RATIO ANALYSIS AT KSRTC, BANGALORE

CHAPTER .1

1.1 GENERAL INTRODUCTION

INTRODUCTION TO FINANCIAL MANAGEMENT:

Finance is one of the major elements, which activates the overall growth of
economy. Finance is the lifeblood of economic activity. A well-knit financial system
directly contributes to the growth of economy. An efficient financial system calls for the
effective performance of financial institutions, financial instruments and the financial
markets.

Financial management is the specialized function directly associated with the top
management. The significance of this function in not only seen in the line but also in the
capacity of staff in the overall administration of a company.

“Financial Management is in an area of functional decision making, harmonizing


individual motives and enterprise goals”- Weston & Brigham.

“Financial Management is the application of the planning and control functions to


the finance function” - Archer & Ambrosia.

Thus as per the meaning of the term Financial Management, it deals with the
planning and control of financial operations to corporate enterprises. In the minds of
executives financial management is a subject, which deals with the tools and techniques
through which the company‟s balance sheet is constructed. It offers ideas to the
executives in building items in liabilities and assets side of a balance sheet. It clearly
guide the financial manager to select both long-term as well as short funds and its

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allocation to capital and revenue expenditure, this ultimately used as a communication


tool to convenience the investors about the performance of a corporate entity.

By this we understood that financial management is an integral part of general


management and not merely a staff function, which is concerned, only with
administration of sources of funds.
It is concerned with the funds used as well as with the investment decisions. How
to acquire finance for short – term and long – term assets is an important decision-making
area of financial management.
The ultimate objective of financial management is to fulfill the basic desire of the
firms. That is to make the requirements of not only shareholders but also the
stakeholders; this is achieved through the consistence of growth maintenance in the
percentage of dividend and market value of shares.

WHAT IS THE JUSTIFICATION FOR THIS GOAL?

First: It appears to provide a rational guide for business decision-making and


promote an efficient allocation of resources in the economic system, savings are allocates
on the bases expects return and risk and the market value of a firm equity stock reflects
the risk-return trade-off of investors in the market place. Hence, if a firm makes decisions
aimed at maximizing the M.V. of its equity, it will raise capital only when investments
warrant use of capital from the overall point of view of the economy.

This suggests that it allocates resources of optimally. If a firm does not pursue the goal of
shareholder wealth maximization, it implies that its actions result in a sub optimal allocation
of resources. This intern leads to in adequate capital formation and lower rate of economic
growth.

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The second justification may be provided for the goal of shareholder wealth
maximization. Equity shareholders provide the venture capital required to start a business
firm and appoint the management of the firm indirectly through the board of directors.

Thus the important goals of financial management are profit maximization and
wealth maximization.

1. Profit maximization:
Profit is the only means through which an efficiency of organization can be
measured.
As the business units are exploiting the resources of the country namely land, labor, capital
and resources has an obligation to make use of these resources to achieve profits. It is an
obligation of economic to cover the cost of funds and offer surplus funds to expansion and
growth. Accumulated profits reduce the risks of an enterprise.
Profit maximization achieved by an organization regarded as a primary measure of its
success. The survival of the firm depends up on its ability to earn profits.
Following are the points in favor of profit maximization
 Profit is a barometer through which the performance of a business unit
Can be measured.

 Profit ensures maximum welfare to the shareholders, employees and


prompts payment to creditors of a company.
 Profit maximization increases the confidence of the management in the
expansion and diversification programmers of a company.
 Profit maximization attracts the investors to invest their saving in
Securities.

 Profit indicates the efficient use of funds for different requirements.

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Following are the points unfavorable to the profit maximization

 Profit maximization does not consider the elements of risks.


 Profit maximization does not also consider the impact of time value of
Money

 Huge amount of profit attracts government intervention.


 Huge profits invites problems form workers for high salary and fringe
Benefits

 Profit maximization affects the long-term liquidity of a company.


Profit maximization becomes only an illusion because most of the forms always
would like having normal profits due to above points what we discussed. The image of
the company will go up when it pays dividends to shareholders, meets it obligations of
creditors and offers fair wages and salaries by maintaining high quality of products. Such
image of the company offers high returns to the equity shareholders in the stock market
and it results in to the capital appreciation to the owners.

Wealth maximization:

It refers to the gradual increase of the value of assets from the form in terms of
benefits in can produce. A financial action only can be judge in term of the benefits it‟s
produced less cast of action i.e. the process of creating the wealth of an organization.

Wealth maximization is the net present value of the financial decision. Net
present value will be equal to the grace present value of the benefits of that action minus
the amount invested to receive such benefits. In the simple terms we can say as

N.P.V= Present value of inflows – present value of outflows.

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If the net present value is positive, it means, it creates wealth to the organization.
If it is negative it reduces the existing wealth of the shareholders.

When the company profits are more it is advised that the management to keep
certain amount of profit for future expansion, through which increases the production and
market shares. The benefit gained will be passed on not only to the equity share holders
but also uses such additional profits to maintain good relations with the creditors better
payment of the wages to workers, create more welfare facility to the society, pay prompt
taxes to government and attain self-sufficiency and earn good reputation in the market,
which will be reflected by market value of the shares in the stock exchange.

Wealth of the firm = No of shares owned x price per share in the market.

Advantages of Wealth Maximization


The net effect of investments and benefits can measure easily.

 It considers the concept of time value of money. So it is help full to the


Management to achieve the overall objective of the company.

 Wealth maximization takes care of interest of financial institutions,


Owners, employees and society at large. So, it is universally accepted.

 While making dividend policy to reach maximum returns to the equity


Shareholders it serves as a guide.

 It considers the impact of risk factor. Adjustment is being made to cover the risk factor
i.e. associated with the investment.

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CRITICISM

The concept of increasing the wealth maximization of the stock holders differs
from one entity to another business entity. It also leads to confusion and misinterpretation
of financial policy because different yard stick may be used by different interest in
accompany.

A’S OF FINANCIAL MANAGEMENT

 Anticipating financial needs.


 Acquiring financial resources.
 Allocating funds in business.
 Administering the allocation of funds.
 Analyzing the performance of finance.
 Accounting and reporting to management.

FUNCTIONAL ASPECTS OF FINANCIAL MANAGEMENT

1. Anticipating Financial Needs:

The financial manager anticipates the financial needs by consulting by an array


of documents such as cash budget, the perform statement, balance sheet, the statement of
sources and application of funds etc.

Basically financial requirement arises for two main purposes. Firstly to meet the
requirement of the fixed assets which are necessary to establish a business? Secondly,
finance is also required for the purpose of making investments on current assets.

The total funds requirement for funds can be prepared by collecting the
information from all the heads of departments about their needs. So that it helps in
planning for subsequent steps in the financial management.

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2. Acquiring Financial Resources:


Funds should be acquired well before the need for them is actually felt. The
financial manager knows how to tap the different sources of funds, funds are available
through primary indigenous bankers etc. but carefully selection is needed.

3. Allocating Funds In Business:


It refers to investment of finance on the assets, it may fixed or current or both. It
is the basic goal of the financial manager to recover the cost of funds and offer fair
percentage of returns to equity shareholders. Techniques like capital budgeting, CVP
analysis, BEP analysis is useful.

4. Administering The Allocation Of Funds:


It is the basic responsibility of financial manager to watch the performance of
each rupee that has been invested. He has to adopt close supervision and marketing of
flow of funds. This will ensure continuous flow of funds as per the requirement of the
organization.
5. Analyzing The Performance Of Finance:
Through the budgeting the finance manager can easily know by comparing the
actual with the standards. The returns on the investment must be continuous and
consistent. Returns of each investment must be analyzed, wherever the deviations are
found necessary steps are to be adopted to overcome such events.

6. Analyzing The Performance Of Finance:

Through the budgeting the finance manager can easily know by comparing the
actual with the standards. The returns on the investment must be continuous and
consistent.
Returns of each investment must be analyzed, wherever the deviations are found
necessary steps are to be adopted to overcome such events.

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7. Accounting And Reporting To Management:


The finance manager acts as line executive and also as staff. He has to advice and
supply information about the performance of finance to the top management. He is also
responsible for maintaining up-to-date records of the performance of financial decisions.
Assets management has an important role in financial management. It is also
necessary for the finance manager to ensure that sufficient funds are maintained for
smooth conduct of the business.
Financial management is consent with the many responsibilities, which are the
main thrust of business enterprise. Although a business failure may not always be the
result of financial failures “Financial Failures do positively lead to business failures”
hence it is an important of financial management.

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1.2RATIO ANALYSIS:
Ratio analysis is the technique or a tool used in the analysis of financial statements to have the
better understanding of the performance and financial position of a business concern. Besides it
is also helpful in making a meaningful judgment on the basis of analysis.

One of the techniques of analysis of financial statement is to calculate ratios. Ratio is the
numerical or arithmetical relationship between two figures. It is expressed when another divides
one figure. Ratio analysis stands for the process of determining and presenting the relationship of
items in the financial statements. The ratios provide information that can be used by the
management to that action.

Ratio is one of the most powerful tools of financial analysis. It aims at making
use of quantitative information for decision making. A ratio is an expression of relationship
between two variables.

A ratio is the relationship between two or more variables expressed in


mathematical terms i.e. in number of times or terms of percentage. Generally Solvency ratio‟s
and turn over ratio‟s are expressed in number of times and profitability ratios are expressed in
terms of percentage.

Ratios are simply means of highlighting in arithmetical terms. The relationship


between figures drawn from various financial statements. Robert Anthony defines “A ratio as a
simply one number expressed in terms of another. A great number of ratios can be computed on
the basic of the financial statements – balance sheet and profit and loss A/c.

1.3 ADVANTAGES OF RATIO ANALYSIS:


 Useful in forecasting purposes

 Useful in comparison of performance

 Useful in assessing the operation efficiency

 Useful in simplifying accounting figures

 Facilitate inter-firm and intra-firm comparison


1.4 LIMITATIONS OF RATIO ANALYSIS:
 False results if based on incorrect accounting data

 No common standards

 No idea of probable happenings in future

 Different meanings assigned to the same term.

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CHAPTER-2
Research Design

Title of the study


A study on Ratio analysis of Karnataka State Road Transport Corporation

STATEMENT OF THE PROBLEM


A study on finance performance of KSRTC to provide relevance and importance of the issue,
there are various techniques used by management accounting to supply information required by
the management, I chose to study financial analysis of KSRTC using technique of ratio analysis.

Purpose of the study


The purpose of doing the study is to evaluate the profitability and financial soundness of the
company. The project is undertaken to make a thorough study of the working of a company from
the year 2006 to 2010 with reference to management accounting.

OBJECTIVES OF THE STUDY


 To study the financial statements of the company for four years i.e. 2006 to 2010.
 To compare the past and present financial performance of the company.
 To study individually the liquidity position, long term solvency, efficiency and
overall profitability of the firm.
 To ascertain the financial position of the company through ratio analysis.
 To offer recommendation and suggestions to the management.

DATA COLLECTION TOOLS:


Data is collection of necessary detail to gain further information. These types of data can be
classified into:

Primary Data:

Primary Data can be called as collection of the first time and which may not have been collected
from others

 Questioning the executives of the company.


 Detail discussions were also held with officials of the company to understand
the problems and requirements.

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Research is organization‟s inquiry designed and carried out to provide information to solve the
problem. In fact is the scientific investigation of a certain problem. “Research is the process of
systematically obtaining accurate answer to significant and pertinent question by the use of
scientific method in gathering and interpreting information”.

Research design refers to the system consisting of enunciating two problems. Collecting the fact
or Data, analyzing the fact and reaching certain conclusion. There are various types of studies in
diagnostic and analytical method.

The different step in the Research design following here are:

 Collection of information to understand the competition in this line of activity.


 Collection of company„s details.
 Identification means enhancing of cash management for the company.
 Finally, forwarding certain recommendation and conclusion to the company.

LIMITATIONS OF STUDY:
 Time constraint is the main limitation associated with this particular study.
 Non availability of theoretical information may also prove to be a
limitation associated with the study.
 This report is based on the annual reports, which are provided by the
company that cannot be relied upon

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CHAPTER-3
COMPANY PROFILE OF KSRTC

Background of the company

INTRODUCTION:
Karnataka State Road Transport Corporation (KSRTC) is one of the largest public sector
undertakings in Karnataka, which provides transport facilities to the citizens. It is the third
largest corporation in India and in terms lowest accidents stands second in India. Karnataka State
Road Transport Corporation is the first transport unit in the country to create a post of director
for environment.

Karnataka State Road Transport Corporation is mainly composed of central office, divisions and
depots. Central office acts as the policy maker, divisions are the controller of the depots in the
operating units. The Karnataka State Road Transport Corporation was established in August,
1961 under the provisions of Road Transport Corporation Act 1950 with the objective of
providing “adequate, efficient, economic and properly coordinated road transport services”. In
this endeavor, the KSRTC has positioned itself with a name for reliability and safety. This
organization was started with 1792 buses. It is more service oriented organization, than
commercial enterprise. It is wholly owned by state government. Till 11th august 1997 KSRTC
was holding a fleet of 10400 buses, operating 9500 schedules. During the 1997-98, the state
government divided KSRTC and has carved three corporations viz BMTC, Bangalore from 15-
08-1997, NWKRTC, Hubli from 01-11-1997, NEKRTC, Gulbarga from 01-10-2000 were carved
out, on a regional basis.

The amended RTC act 1982 provides for the management of the corporation by the Board of
Directors. The Board of the Karnataka State Transport Corporation as on 31st March 2006
consisted of 10 directors and one invitee. Out of 10 directors, nine are official and one is non-
official director. The Chairman is a non-official director. All the official and non-official
directors are appointed by the State Government.

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Formation and origin


The Mysore Government Road Transport Department (MGRTD) was established on 12th
September 1948 when certain services radiating from Bangalore were taken by the government.
By end of the year 1948-49, the department was operating services on 81 routes, with a fleet of
120 buses and with an invested capital of rs.17.77 lakhs. The services were covering 15000 km
per day and catering to the transport needs of about 4000 passengers daily. At the time of
organization of states, the MGRTD grew overnight phenomenally and became the 4th biggest
undertaking in the country, the fleet strength rising to nearly 1,100 on 1-1-1957.

Karnataka State Road Transport Corporation (KSRTC) was statutorily established on 1-1-
1961 under the provisions of central road transport corporation act of 1951 and was being
managed as a government department, as a wind of the home department of nearly 13 years since
its inauguration. It was entrusted to be new statutory body to operate and manage the
nationalized has services. As in 1982, the corporation was the 2nd biggest in the south and 5th in
India. The corporation had consisted of 20 members (9 officials and 11 non-officials). The
official members were 6 from the state government and 3 from the central government.

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History of KSRTC
In 1948 Mysore put forth 120 vehicles for public service in limited amount. In 12th September
1948 MGRTD has been created under the leadership of our first chief minister Sri K.
Chengalarayareddy. Next chief minister Sri KengalHanumanthaiah made a new revolution in the
field of transportation. He abolished the privatization of vehicle in to nationalization. In 21-10-
1952 he was the 1st person who nationalized 6 bus routed and also private BTC in to
nationalization.
C.M.Nijalingappa has started bus routes to Bombay, Belgaum, and Bijapur by introducing 1004
buses in HGRT by this way KSRTC came into existence.
Among the objectives of the corporation that were followed then are:
 To provide the public with road transport facilities marked by high reliability, reasonable
comport and moderate cost within the existing technological and economic constraints.
 To constantly explore the newest and the latest technological developments in the field of
road transport in order to provide better, safer cheaper mode of road travel to the
traveling public.
 To build up and maintain a high technological capacity in the corporation to keep the
ever growing fleet in an excellent condition.

The total capital investment of the corporation increased from Rs.78.07 crores in March 1980
to Rs.93.81 crores as in march 1981. During 1980-81 the state government provided an
amount of Rs. 4.50 crores as capital contribution to the corporation as against Rs.1.50 lakh.
The corporation raised Rs.7 crores as loan from financial institutes like banks and LIC. An
amount of rupees 5.23 crores was financed from internal resources. With repayment of loan
amounting to Rs. 1.44 crores, the net addition to the capital was Rs.15.74 crores. The state
government also provided a short term loan of Rs. 3.35 crores during 1980-81.

The inter-state services, on a reciprocal basis with five neighboring states, continued to be
operated and augmented from time to time. The sixties witnessed as many as eight schemes

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of nationalization implemented, in pursuance of the accepted and proclaimed policy of the


state government to have complete nationalization of passengers transport in the state. With
the implementation of these schemes, the fleet strength was 4494 in 1978-79. An important
development was the nationalization of the private contract carriages in the state in January
1976, when the state government acquired and transferred nearly 600 buses to the KSRTC.
The extent of nationalization as in 1982 has been nearly 69% by area and 61% in terms of
number of stages carriages in the state.

The jurisdiction of corporation extends over the entire state of Karnataka. The operations are
being conducted through 5 regional offices, 13 operating divisions. There 66 depots attached
to these divisions. 2 regional workshops, 1 is at Bangalore and Hubli, was setup with
specified jurisdiction for the purpose of reconditioning of vehicle and assemblies, retreating
of tyres, new bus body building, etc. A printing press also attached to cater to the
corporation‟s needs. There are 3 civil engineering divisions at Bangalore, Hubli and
Gulbarga with 9 subdivisions attached to them.

The five regional offices started functioning since April 1980. These offices are headed by
regional managers who are of the rank of major heads of department, responsible to the
general manager. These regional managers have to function predominantly as field officers
exercising proper adequate supervision, over all the operating units coming under.

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Vision
 Happy Commuters
 Clean Environment
 Satisfied Employees

Mission
“To provide Economic, Reliable, Environment friendly,
Courteous, Safe, Transport services to commuters.”

Objectives
 To modernize, upgrade and improve facilities.
 To achieve better quality in its services.
 To get the ISO certification.

Computerization of KSRTC:
KSRTC has taken up the computerization of depots, divisional office work shop and central
office. Computerization of all depots expected to be completed within one year from now. The
central officers of KSRTC are having local area network of computers. KSRTC is also
examining the feasibility of using IT extensively. As stated earlier computers are being used for
making advance reservation facility. Because of increased computerization the bus staff ratio of
KSRTC has come down. Considerably and is lowest in the country.

KSRTC has started automatic ticket issuing machines to its conductors. These computerized
machines are helpful in curbing pilferage and keeping proper account of the journey made.

KSRTC is shortly introducing a new system called punctuality come revenue monitoring system
on Bangalore- Mysore corridor.

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Nature of business
In August 1997, KSRTC had a fleet of 10,400 buses, operating about 9500 schedules. After this
KSRTC was divided into two corporations KSRTC and BMTC (Bangalore metropolitan
transport corporation.) In November 1997, it was again divided into NWKRTC (North West
Karnataka road Transport Corporation) was formed with its corporate office at Hubli. In August
2000 it divided into NEKRTC (North East Karnataka Road Transport Corporation) was formed
with its corporate office at Gulbarga. Optimal efficiency enables all the four corporations –
KSRTC, BMTC, NWKRTC, and NEKRTC- to have a faster speed-of-response to the
transportation needs of the people of this state. The distinguishing feature of these corporations is
in its functionality: the cadres of officers are common, purchases are combined, and there are
inter-representative Directors on all the Boards.

KSRTC has been subdivided into four corporations.

KSRTC (Karnataka State Road Transport Corporation) with its headquarters at


Bangalore.
NWKRTC (North Western Karnataka Road Transport Corporation) with its headquarters
at Hubli.
NEKRTC (North East Karnataka Road Transport Corporation) with its headquarters at
Gulbarga.
BMTC (Bangalore Metropolitan Transport Corporation) with its headquarters at
Bangalore.
Scrap disposal:
 Scrap buses, tyres, rubber scrap, M.S., Aluminum etc., is disposed through
public Tender-cum-auction.
 Tender-cum-auction will be held every month at Bangalore, Hubli and Gulbarga
on an average the corporation realized
Rs.20 crores through sale of scrap.
 The corporation sells buses in running condition to educational institutions at a
concessional rate to use them to transport the students

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Depots 66
Divisions 13
Bus stations 124
Vehicles 6837
Effective Kms per day 23.17 lakhs
Schedules 6178
Average traffic revenue per day 456.23 lakhs
Average passengers travelled per day 24.50 lakhs
Staff 33070
Staff ratio per schedule 5.35

COMPETITORS

National travels
Blue lines
Sharma transports
Vijayawada road lines
SRS travels
VRL
Durgamba travels

AREA OF OPERATION :( Regional)


 Davangere
 Shimoga
 Chitradurga
 Udupi
 Chikmagalur
 Tumkur
 Hassan

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Organizational structure of KSRTC

Chairman

Managing director

Director’s pollution & Director’s security & Directors technical


environment vigilance

CAO/ FA GM traffic GM technical

Deputy CAO Deputy CTM Deputy CTM

AAO ATM ATM

Superintendent Superintendent Superintendent

Supervisor Supervisor Supervisor

Assistant Assistant Assistant

Junior assistant Junior assistant Junior assistant

Helper Helper Helper

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KSRTC central office Bangalore

Chairman

Vice chairman and managing director

Accounts department Director personnel Director security and Director


internal audit stores and environment vigilance security
and purchase

Security and vigilance


Personnel &
Bangalore city
administration
Traffic
Bangalore rural
Environment &
Commercial matters
pollution
Kolar
Labour welfare EDP department
Mysore urban
Estate matters
Mysore rural
Law development
Hassan
Sports

Mechanical &
engineering RWS Bangalore RWS Hassan

Civil engineering Painting

Statistical planning

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Mechanical Engineering (Production) Department

ORGANISATIONAL CHART:-

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LIST OF BOARD OF DIRECTORS OF KSRTC

SL.NO NAMES OFFICIAL/


NONOFFICIAL

1 Sri. R. Ashoka CHAIRMAN


Hon‟ble Minister for Transport and
Chairman, KSRTC., Central Office,
Bangalore 560 027.

2 Sri. Jaggesh, VICE-CHAIRMAN


Vice-Chairman, KSRTC.
Central Office, Bangalore 560 027.

3 Sri. M.R. Sreenivasa Murthy, IAS DIRECTOR


Principal Secretary to Government, (Official)
Finance Department, Govt. of Karnataka,
VidhanaSoudha, Bangalore 560 001.

4 Sri. AbhijitDasguptha, IAS INVITEE


Metropolitan Commissioner, BMRDA, (Official)
Govt. of Karnataka, No.1, Ali Asker Road,
Bangalore- 560052.

5 Sri. S.K.Dash, IAS DIRECTOR


Joint Secretary(T), (Official Central Govt.
Dept. of Road Transport and Highways, Nominee)
Govt. of India, No.1, Parliament Street,,
ParivahanBhawan, New Delhi- 110 001.

6 Sri. D. VenkateshwaraRao, IAS DIRECTOR


Principal Secretary to Government, (Official)
Department of Public Enterprises,
Govt. of Karnataka, M.S.Buildings,
Bangalore-560 001.

7 Sri. M.K.Shankaralingegowda, IAS., DIRECTOR


Secretary to Government, (Official)
Transport Department, M.S.Buildings,
Govt. of Karnataka, Bangalore-560 001.

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8 Sri. Gaurav Gupta, IAS DIRECTOR


Managing Director, (Official)
KSRTC, Central Office, Bangalore-560 027.

9 Sri. Syed Zameer Pasha, IAS DIRECTOR


Managing Director, BMTC, (Official)
Central Office, Bangalore-560027.

10 Sri. M. Abdul Saleem, IPS DIRECTOR


Director (Sty &Vig) KSRTC., (Official)
Central Office, Bangalore- 560 027.

11 Sri. A.N.Patil, KAS DIRECTOR


Managing Director, NWKRTC, (Official
Central Office, Hubli.

12 Sri. Shankar Patil, KAS DIRECTOR


Managing Director, NEKRTC, (Official)
Central Office, Gulbarga.

13 Sri. Hemaraju DIRECTOR


Director (Technical), KSRTC. (Official)
Central Office, Bangalore- 560 027.

14 Sri. K.A. Raj Kumar, DIRECTOR


Director (Operations) , KSRTC., (Official
Central Office, Bangalore- 560 027.

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Activities:-

1. Planning and Budgeting:-

Based on the Augmentation for new schedules given by the Traffic Department & No. of aged
buses to scrapped during the year by the Mechanical Engineering (M) Department planning for
induction of new buses to fulfill the requirement is done.

Planning for Procurement of new Domestic vehicles as a replacement of aged domestic vehicles
as and when required. Based on the planning the estimated budget will be submitted to the
government.

2. Procurement of Chassis/Fully built buses/Domestic vehicles:-

 The new chassis/vehicles are procured with the approval of the Corporation Board.

 The Corporation board has empowered the Managing Director for procurement of
domestic vehicles for replacement & newly created post.

 Procurement of chassis is by inviting tenders as per the KTPP Act.

 Domestic vehicles are procured under DGS&D rate contract which is exempted from
tendering.

3. Construction of bus bodies at Regional Workshops:-

4. Construction of bus bodies by outsourcing agencies and outsourcing labour contract:-

 Tendering of bus body construction required for KSRTC.

 Tendering for bus body construction on labour contract.

 Tendering of fully built buses required for the Corporation.

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 Tendering of chassis required for three corporations. Verification of all the tender
documents furnished by the tenderers for evaluation.

 Verification of sample passenger seats supplied against the tender for evaluation.

 Scrutiny of the documents submitted furnished for evaluation by the tender scrutiny
committee.

 Arrange price negotiation meetings for the tendered items.

 Drafting the pre-qualification criteria to place before the CMG for approval for each
of the subject viz chassis, bus body, fully built buses, labour contract, etc.

 Drafting the CPC note to be placed for approval viz chassis, bus body, fully built
buses, labour contract, etc.

5. Drafting of specification and drawings for bus bodies, chassis, and bus body materials
etc.:-

 Drafting the specification for procurement of chassis.


 Drafting the specification for bus body construction.
 Drafting the specification for passenger seats.
 Drafting the specification for various bus body components.
 Drafting the specification for major equipment‟s required at the Regional /Divisional
Workshops.
 Drawings for bus body construction
 Seating layout for these buses.

6. Inspection of new buses at different stages:-

 The inspections of buses constructed at the various outsourced agencies are in three
stages.

 Five stage inspections of buses procured as fully built buses.

 The senior technical officers/officials inspect the buses at the work place.

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 Major bus body components are approved by the CME (P) before fitment on the
buses.

 The first stage of inspection is the structure of the bus.

 The second stage of inspection is the paneling of the bus.

 The third stage of inspection is the pre-final/final stage of the bus.

7. Planning of reconditioning of Engines/F.I.P`s and Atomizersetc.:-

8. Taking up construction of buses of other Government Departments:-

9. As and when there are requests from other Gov. Depts., buses are constructed at
Regional Workshops Bangalore.

10. Scrapping of buses/domestic vehicles:-

 The aged buses are scrapped as per the stipulated norms after following the procedures
laid down for scrapping.
 The vehicles scrapped are evacuated to the Regional Workshops, Bangalore and
Hassan.
 The W-23 forms for scrapping are scrutinized for approval of scrapping.
 The W-23 forms are forwarded to accounts for clearance.
 The file is placed for approval before the committee constituted for scrapping.
 The certificate is issued for scrapping of buses.

11. Designing new type of buses/R&D activities: - Design of new bus bodies of different
types.

 Market survey of new materials used for bus body construction.


 Adopting the latest technologies available for bus body construction within the purview
of KSRTC.
 Improving on the passenger comfort and aesthetics of the bus.

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SERVICE/PRODUCT PROFILE

1. SHEETAL

 Leyland 244” WB Chassis fitted with 165 HP Engine.


 Body built by Regional Workshop & outside agencies also.
 Chassis fitted with all Weveller suspension
 Fitted with Improvised Hi-Tech Reclining passenger seats of 43 seating capacity with
2x2 configurations.
 Provided sound proof Driver partition.
 Fitted with single windshield laminated glass.
 The interiors are covered with Rexene cloth.
 The exterior is painted with 2K-PU metallic paint.
 Cost of each bus is Rs. 18.50 lakhs.
 Constructed on Ashok Leyland 244” W.B 174 H.P Chassis.
 Fitted with all Air Suspension for comfortable journey.
 Provided with 36 kw Air conditioner of Trans ACNR make.
 Ergonomically designed 60 passenger seats of 3x2 configurations.
 Provided with Air console for each passenger seats.
 Painted with pleasing color and attractive graphics.
 Aesthetically designed interior.
 Emergency door is provided.
 Cost Approx., Rs. 20.50 lakhs.

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To facilitate common traveler with Air Conditioned facility KSRTC introduced Air
Conditioned Karnataka SaarigeMofussil Bus branded as “Sheetal”. This vehicle is operating
between Bangalore – Mysore sector on trial and is widely appreciated by the traveling public.
In view of the good response by the travelers KSRTC has planned to induct 30 more such
buses during the year 2007-08.

2. KAVERI Medium floor City Bus under "JnNURM"

 222” Wheel Base, BS III Leyland Semi Low-floor chassis having 165 HP Engine.

 With rear Air Suspension and front Rubber ended suspension for greater travel comfort.

 Body constructed in line with Automotive Indian Standards (AIS-052) and


recommendatory Urban Bus specification of Ministry of Urban Development.
 Bus body constructed in Regional Workshops, Kengeri, Bangalore.
 Semi Low-floor bus have saloon flooring at 875mm from ground level with 2 steps
instead of 3 steps as compared to conventional city Bus.
 Will be provided with Global Positioning System (GPS) for monitoring the movement of
the vehicle by the corporation and to facilitate the passengers regarding availability of
vehicle at different stops i.e, Passenger Information System (PIS) (under GEF program).
 Wider LED display electronic display boards at front, rear and at top of service door
having a capacity to store minimum of 100 routes and route numbers with provision to
display both in Kannada and English languages.
 2 numbers of Roof Hatches cum Emergency exit with integrated ventilation unit having
an inbuilt electrical motor driven fan to ensure movement of fresh air inside the vehicle.

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 Emergency door of full length with sufficient accessing passage for easy exit.
 Ergonomically designed foam padded plastic molded passenger seats of pleasant color.
Seating capacity 41.
 Light green tinted wider window glasses and louver glasses for aesthetics and greater
visibility and ventilation for the passengers.
 Volvo type front windshield glass and wider delight bay glass in front of driver door for
aesthetics and greater visibility for the driver.
 2 numbers wider service doors with pneumatically operated out-swing doors to facilitate
easy access for even physically challenged persons.
 Elegant Body design with attractive painting color scheme and graphics.

3. Corona AMBAARI

Brand Name:
The Bus is named as "AMBAARI" – means comfortable & luxurious journey on the top of
an Elephant.

Body and frame:


Corona bus is an all steel integral monocoque construction and has two important structural
members:

o Spines to carry load carrying member and


o Exterior cage which is integrated with spine to have a unique single piece
monocoque structure.

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The entire structure is made up of rectangular steel tubes. The structure has
comparatively high impact strength.

Engine:
The bus is fitted with 160 Horse power Cummins engine at the rear end so as to reduce noise
pollution inside the bus saloon. The rear engine ensures reduced transmission loss. Larger
flaps are fitted at rear end and at sides for better accessibility and maintenance of the engine.

Air suspension:
Fully independent front Air suspension are provided which carries double link wish bone at
both left and right independently supported to the structure by silent bearings. The rear end is
provided with an independent single wish bone structure which is pivoted to the body
structural spines with rubber mountings for comfortable travel. The Air suspension provides
bump free travel to the passengers.

Passenger saloon:
The passenger saloon is provided with ultra-modern interiors, „Happich‟ imported hat racks
to carry light luggage, comfortable reclining hi-tech passenger seats, imported floor
carpeting, high mounted TV to have better viewing pleasure for passengers.

Air conditioner:
This bus is provided with good branded “carrier” make air-conditioner with excellent cooling
effect to make the journey comfortable & cool.

Front show and wind shield:


The bus is provided with improved front show and wind shield to have better aero dynamics
and fuel efficiency. Better visibility and safety. Single piece front cowl gives better insulation
and avoids dust entry into the cabin and also help in reduction in noise pollution.

Luggage space:
The bus is provided with excellent under slung luggage space (approximately 11 cubic mtrs)

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to carry more luggages of passengers and also better road holding with lowered center of
gravity. Loading and unloading of luggage is very easy as the luggage space is much nearer
to the ground.

Brakes:
The Braking system provides safe and reliable braking with dual circuit full air brakes.
Condenser cum water separator is provided in addition to the air dryer to enhance life and
performance of brake system. Automatic slack adjuster are provided to enhance the braking
efficiency.

Seats Configuration:
Fitted with 44 passenger seats with 2x2 seating configuration. The seats are comfortable with
reclining mechanism.

Exteriors:
The bus is provided with all aluminum doors and stretched galvanized panels. The panels are
painted with polyurethane based premier high solid 2k paints with colorful graphics.

Cost:
The end rate per bus is at Rs. 36, 81,563.00.

4. Corona AMBAARI Sleeper bus

Body and frame:


Corona bus is an all steel integral monocoque construction and has two important structural
members:

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o Spines to carry load carrying member and


o Exterior cage which is integrated with spine to have a unique single piece
monocoque structure.

The entire structure is made up of rectangular steel tubes. The structure has
comparatively high impact strength.

Engine:
The bus is fitted with 160 Horse power Turbo charged & Inter cooler Cummins engine at the
rear end so as to reduce noise pollution inside the bus saloon. The rear engine ensures
reduced transmission loss.

Air suspension:
Fully independent front Air suspension with double link wish bone are provided at both left
and right side independently and supported to the body structure. The rear end is provided
with Air suspension with an independent single wish bone structure pivoted to the body
structural spines with rubber mountings for comfortable travel. The Air suspension provides
bump free travel to the passengers.

Passenger saloon:
The passenger saloon is provided with ultra-modern interiors, reading lamps, comfortable
sleeping berths & imported floor carpeting.

Air conditioner:
Branded “carrier” makes AC 353 model air-conditioner with excellent cooling effect is
provided to make the journey comfortable.

Front show and wind shield:


The bus is provided with attractive front show and wind shield to have better aero dynamics
and fuel efficiency. Better visibility and safety. Single piece front cowl gives better insulation
and avoids dust entry into the cabin and also help in reduction in noise pollution.

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Luggage space:
The bus is provided with excellent under slung luggage space (approximately 8 cubic mtrs)
to carry more luggages of passengers and also better road holding with lowered center of
gravity. Loading and unloading of luggage is very easy as the luggage space is much nearer
to the ground.

Brakes:
The Braking system provides safe and reliable braking with dual circuit full air brakes.
Condenser cum water separator is provided in addition to the air dryer to enhance life and
performance of brake system. Automatic slack adjuster is provided to enhance the braking
efficiency. The bus is fitted with Hydraulic retarder of Voith make &Anti-lock braking
system.

Berth Configuration:
Fitted with 32 passenger berths with 2x1 configuration. The berths are comfortable and
upholstered with PU cushions.

Exteriors:
The bus is provided with all aluminum doors and stretched galvanized panels. The panels are
painted with polyurethane based premier high solid 2k pearl white paints with colorful
graphics.

Vision:
Clear window glasses are fitted.

Cost: The end rate per bus is at Rs. 44.50 lakhs.

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5. AIRAVAT

 Full Air Suspension on all four wheels for comfortable journey.


 45 Ergonomically designed Executive Passenger Seats, Luxurious and Comfortable
reclining seats.
 LCD TV provided for passenger entertainment
 Four Emergency Exits and one Emergency Door provided on right hand side of the bus
for more safety to passengers.
 Light Green Tinted Toughened Glasses provided for clear vision.
 Mobile and Lap Top chargers are provided for passengers use.
 Front panel design modified to increase the driver vision area and aesthetic look of the
bus.
 10 Cu mt luggage spaces under the passenger seating area.
 Computerized Speed control.
 CRDI Ignition system.
 The end rate of the fully built bus is Rs 6700000.00

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6. Volvo VAIBHAVA low floor city bus

 Volvo D7E engine offers 290 hp powers and complies with Euro III norms.
 Fitted with fully automatic transmission with torque convertor on the first stage with
built-in retarder.
 Full air suspension offers high level of comfort to passengers & electronically controlled
suspension provides precise regulation of the ride height and kneeling.
 Fitted with electronic brake system with built in retarder.
 Comfortable driver environment designed with good road visibility, adjustable steering
and driver seat.
 Electronically controlled dashboard provides diagnostic information to the driver and the
support Centre.
 All wheels are equipped with disc brakes with EBS5.
 Provides 40 ergonomically designed plastic molded padded seats.
 Music system is provided for the entertainment and live information on FM radio
networks.
 The LED destination boards display clearly the routes and destination for passengers
view.
 Elegant body with pleasing colors painted with premium 2 K polyurethane paints and
with graphics.
 Air conditioned which soothes the passengers in the city ride

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7. Mercedes-Benz bus

 The 12 mt length bus is built on 0 500 R 1830 chassis developed exclusively for
passenger transport.
 Full Air Suspension ensures superior comfort and safety to meet the needs of the
passengers.
 The vehicle is fitted with "Carrier" make Air conditioning system which enhances the
comfort level of the travelling public.
 45 ergonomically designed executive passenger seats, luxurious and comfortable
reclining seats are provided.
 The bus is with pleasing interiors and night lamps.
 Twin LCD TV screen are provided for passenger entertainment
 Four emergency exits provided on either side of the bus for more safety to passengers.
 The window glasses are toughened and provide clear vision to the passengers.
 Front panel is designed to increase the driver vision area and aesthetic look of the bus.
 10 Cu mtr luggage spaces are provided under passenger seating area.
 Electronic fuel Injection management OM 926LA engine presents 305 HP (output) and
122 mkgf (torque) for better fuel utilization.
 The engine complies with Euro-III emission standards.

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8. Volvo 6x2 Multi Axle Inter City bus

 The 13.8 mtr length fully built bus developed exclusively for passenger transport. The
said buses are provided with multi axle which enhances the comfort level for long
distance travel.
 Full air suspension, fitted with two air bellows in the front and six air bellows in the rear
to offer a high degree of ride comfort.
 This bus is provided with good branded “carrier” make air-conditioner with excellent
cooling effect to make the journey comfortable & cool.
 This bus is provided with 53 nos. ergonomically designed executive, comfortable,
reclining luxurious passenger seats.
 Mobile and Lap Top chargers are provided for passengers use.
 The passenger saloon is provided with ultra-modern interiors, reclining hi-tech passenger
seats, imported floor carpeting, and high mounted 2 LCD TVs of 26” & 17” to have
better viewing pleasure for passengers.
 Emergency door is provided on right hand side of the bus for more safety to passengers.
 The window glasses are toughened and provide clear vision to the passengers.
 Front panel is designed to increase the driver‟s vision area and aesthetic look of the bus.
 10 Cu mtr luggage spaces are provided under passenger seating area.
 The bus is fitted with 340 Horse power, powerful, fuels – efficient and electronically
controlled Volvo D9B engine with a turbocharger and intercooler, Euro III compliant.
 The cost of the bus is to be negotiated.

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9. RAJAHAMSA

 Constructed on Ashok Leyland 244” WB Chassis fitted with 165 HP Engine.


 Body built by Regional Workshop &outside agencies also.
 Chassis fitted with all Weveller suspension
 Fitted with Improvised Hi-Tech Reclining passenger seats of 43 seating capacity with
2x2 configuration.
 Provided sound proof Driver partition.
 Fitted with single windshield laminated glass.
 The interiors are covered with Rexene cloth.
 The exterior is painted with 2K-PU metallic paint
 Cost of each bus is Rs. 18.50 lakh

10. KARNATAKA SAARIGE

 Constructed on Ashok Leyland 244” WB Chassis fitted with 112 HP Engine.


 Body built by Regional Workshops, Bangalore and Hassan.
 Chassis fitted with all Weveller suspension.
 Fitted with Improvised passenger seats of 65 seating capacity with 3x2 configurations.
 Fitted with single windshield laminated glass.
 The interiors are with aluminum sheet panel.
 The exterior is painted with 2K-solid paint.
 Cost of each bus is Rs. 12.23 lakhs

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MILESTONES:-

KSRTC has reached the following milestones in the area of Information Technology.

 It is the first PSU in Karnataka to have a well-structured cabling Local Area Networking
at its Corporate Office connecting more than 180 computers in the year 1997.
 It is the first STU in India to have its Web Site during the year 1997.
 It was the first PSU to have Smart Card based Attendance Monitoring System in the year
1997, which was subsequently done by Government of Karnataka at VidhanaSoudha and
M.S. Building.
 KSRTC is the first PSU in Karnataka to have totally computerized Recruitment System
from 1997.
 It is the first STU in India to have an in house developed RDBMS based Passenger Seat
Reservation System in the year 1998.
 KSRTC is the first STU to have E-tendering implemented in India.
 KSRTC is the first STU in India to have implemented Oracle Financials.
 KSRTC is the first STU in India to deploy Electronic Ticketing Machines on all of its
routes.
 KSRTC is the first STU in India to have totally computerized Driving tracks for testing
the candidates.
 KSRTC is the first and leading State Transport Undertaking in the country to adopt
Information Technology in its administrative and operational processes.

OTHER FACILITIES PROVIDED TO COMMUTERS:

1. Pick up / drop services: The Corporation is operating long distance services from / to various
extension areas of Bangalore, Mysore and Mangalore as detailed below. Passengers traveling
in late night buses or arriving early morning at the destination can relax. KSRTC has special
pick-up and drop facilities from reservation counters across the city to / from Kempegowda bus
station, for long distance services. You can now board / alight at the nearest point of your
convenience.

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Bangalore:

Pick up:Jayanagar 9th Block East, J.P.Nagar 6th Phase, Padmanabhanagar, Koramangala,
Katriguppe, Jayanagar 5th Block, Jalahalli Cross (NH-4), KMF(Hosur Road), Bidadi Bus stand,
Vijayanagar and Indiranagar.

Drop:Koramangala, Vijayanagar, Padmanabhanagar, Indiranagar, Jayanagar 9th East, JPNagar


6th Phase.

Mysore:

Pick up:Kuvempunagar Complex, Housing Board, Hebbal, Srirampura, Vivekananda Circle,


Saraswathipuram and JP Nagar.

Drop: Housing Board, Hebbal, Srirampura, Vivekananda Circle, Saraswathipuram and JP


Nagar.

Mangalore:

Pick up:Thokkottu, Deralakatte, Asaigoli, Konaje, Prabhath, Mangaladevi, Attavara,


Marnamikatte, Kavoor.

Drop: Konaje, Asaigoli, Deralakatte, Thokkottu.

2. Reservation of seats for lady passengers: Two seats (seat No.11 & 12) are reserved in Semi
Deluxe and higher classes of services for lady passengers travelling single. In Mofussil buses,
nine seats and fourteen seats in City/Suburban services are reserved for lady passengers.

3. Reservation of seats for physically handicapped persons: Two seats are reserved near
passenger door in Mofussil and City/ Suburban services.

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4. Free Travel in City limits: Advance reservation ticket holders are permitted to travel free of
cost to Central bus stands in Bangalore / Mysore / Mangalore, two hours before departure time of
service with seat reservation in;

o City and Suburban services operated in Bangalore / Mysore and other cities.
o Mofussil buses going towards KBS in Bangalore City and Suburban limits.

5. Special services: Extra services to pilgrimage / tourist places are operated during festivals,
summer vacation, other fairs/festivals, weekends and holidays depending on passenger demand.

Passenger Enquiry Counters set up at all the district and taluk headquarters bus stand for
providing information to the public.

6. Electronic Ticketing Machines: ETMs have been deployed in all 61 Depots for passenger
convenience. The tickets are printed both in Kannada and English. They show boarding and
alighting places, fare, etc, they facilitate speedy transactions. They save considerable paper work
and time for conductors.

7. Passenger Amenities at bus stands:Refreshment rooms, drinking water facility, sitting


arrangements, display of timetables, enquiry counters, pass issue counters, advance booking
counters, luggage booking counters, separate toilets / urinals for gents / ladies, cycle/ scooter/ car
parking stands, CCTV, book stall, fruit stall. STD/local telephone booths etc are provided at bus
stands. All the bus stands in KSRTC jurisdiction are taken up for up gradation to provide
modern facilities.

Special facilities offered by KSRTC

 Student concession passes.


 Pass issue counters
 Free pass for the blind
 Free passes to freedom fighters and widowers
 Reservation of seats for ladies and physically handicapped

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 Monthly season tickets are issued to commuters traveling up to 70kms every


 Corporate travel cards
 Off season concessions

ACCIDENT RESCUE WAGON :- ( Helps save precious lives)

A first of kind, state-of-the-art indigenously designed and developed by COMPREHENCIVE


TRAUMA CONSORTIUM & KSRTC, to render professional medical aid in the event of mass
casualties, especially on the highways in the State of Karnataka.

This first of its kind preparedness initiative in the country for mass casualties is another feather
in the cap for the State of Karnataka and will be model to be replicated nationwide.

KSRTC has been proactive in its support to this initiative, designed and developed by
Comprehensive Trauma Consortium, exclusively for KSRTC

This mass casualty wagon is designed to accommodate 10 critically injured victims on the spinal
board in the lying down position and another 16 victims with minor injures in the seated
position.

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The Accident Rescue Wagon is fully equipped with modern system:

Automated External Defibrillators (AED).

ECG/PULSE Oxymetry Monitors.

Centralized Suction facility.

Pneumatic Splints.

Inbuilt Oxygen and Suction pipelines.

Spinal Boards.

Comprehensive custom-made First Aid kits.

Jumbo Oxygen cylinders.

Extrication equipments.

On-board computer for Tele-transfer of medical information.

GPS for tracking and monitoring.

Wireless Communication System.

KSRTC PASSENGERS ACCIDENT RELIEF FUND TRUST 2008-09

KSRTC Passengers Accident Relief Fund Trust was formed w.e.f. 01-06-2002 as a

proactive measure to provide immediate Financial Relief to the legal heirs of the

deceased Passengers who die in road accidents while traveling in KSRTC buses.

Collection of Accident Relief Fund Fee is discontinued w.e.f 01-09-2008.

The ARF Relief amount has been enhanced to Rs.2.50 lakhs w.e.f. 01-09-2008. This

amount is in addition to MACT claim if any.

Payment of Accident Relief

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Labour Welfare measures implemented in KSRTC

KSRTC has introduced many labour welfare measures for the benefit of the employees. Out of

them a few major welfare schemes are explained below:

1. De-addiction Centre:

A de-addiction programme, WAPPA (Work Place Alcohol Prevention Programme and Activity)

was implemented in KSRTC since 1997 as a worker reach out program. The policy objectives

are: s

o To prevent alcohol abuse among all employees as a part of the corporations

commitment to the health and welfare of its employees, operational safety and the

environment.

o To educate the employees on the dangers and consequences of alcohol abuse

specially in the interest of the commuter safety and assist all employees to

overcome this habit.

2. Preventive Medicine & Healthy life Style Clinic at Bangalore and Mysore:

Established to provide a Comprehensive annual health checkup program for all the employees.

3. Insurance Scheme:

An internal insurance scheme called KSRTC Employees Family Welfare Scheme with

contribution from both employee and the employer is introduced which provides a compensation

of Rs.3 lakhs to the dependent of the employee who die while in service.

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4. Merit Awards:

Merit awards for children of employees/officers who secure higher marks in SSLC, PUC &

Degree examinations.

5. Educational Loan:

A scheme of extending educational loan upto a maximum of Rs.1 lakh for coverage of tuition fee

to the employees children who are admitted to professional courses.

6. Medical Reimbursement:

Reimbursement is given on par with State Government. Advance for major illness and personal

sickness of the employee and their dependents.

7. Recognition of Hospitals:

To provide adequate medical facilities to the employees and their dependents more than 100

reputed private hospitals and 7 Diagnostic centers have been recognized by the Corporation.

8. Educational Assistance:

A Scheme to provide monthly scholarships to children of employees/ officers studying in

different courses.

9. Award schemes:

Awarding Gold and Silver medals to the Accident free Drivers of the corporation.

o Gold Medal: Awarded to the drivers who render accident free service for a period

of fifteen years in mofussil divisions and seven years in city services.

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o Silver Medal: Awarded to the drivers with five years accident free record in

mofussil divisions and three years accident free record in city services.

10. Sports and Cultural Activities:

Divisional and inter divisional sports and cultural activities for the employees are held annually.

11. Traffic Revenue Incentive Scheme:

o This scheme is applicable to drivers and conductors.

o In city and suburban services 3% of traffic revenue collection.

o In respect of ordinary, mofussil, express, semi luxury services 2% of traffic

revenue.

12.Counseling:

To motivate the labour force for maximum productivity a counseling scheme is implemented in

KSRTC. It helps in reducing absenteeism their by increasing the productivity, reduction in the

accident rate and improvement in the behaviour of the employees with the passengers.

13. Voluntary retirement scheme:

A Voluntary Retirement scheme is implemented from 12.08.2005. Under the scheme an

employee who opts for Voluntary Retirement gets an additional financial benefit ranging from

Rs.75,000/- to Rs.2,00,000/-

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Awards & Achievement

1. KSRTC has got Golden Peacock Innovative Product/Service Award-2010.

KSRTC has won the Prestigious “Golden Peacock Award Innovative Product/Service - 2010 ”
instituted by Institute of Directors, New Delhi for successful implementation of web based
Passenger Reservation System- AWATAR.The Award was presented by Sri.
RamachandraGowda, Medical Education Minister, Govt.of Karnataka on 16-01-10 at 19.00 hrs,
at Hotel Lalith Ashok, Bangalore. Sri.Bhagavathi, former Chief Justice of India was present
during the occasion. The award was received by Sri. Gaurav Gupta, Managing Director, KSRTC,
Sri.M.A.Saleem, Director (S&V) and Sri.Hemaraju, Director (Technical).

2. Letter of appreciation from Ministry of Urban Development.

3. KSRTC has got award for excellence in URBAN TRANSPORT PROJECTSUNDER JN-
NURM INITIATIVES FOR THE YEAR 2009

The Hon‟ble Minister for Transport Sri. R. Ashoka, Mr. Gaurav Gupta, IAS, Managing Director,
KSRTC and Mr. M.A. Saleem, IPS, Director Security and Vigilance, KSRTC received the award
for excellence from the hon‟ble Union Urban Development Minister Sri. Jaipal Reddy in New
Delhi on December 5th. The award was presented for excellence in URBAN TRANSPORT
PROJECTS UNDER JN-NURM INITIATIVES FOR THE YEAR 2009, and the Karnataka
is the first state which implemented AUTOMATED ELECTRONIC DRIVING TEST
SYSTEM FOR THE RECRUITMENT OF DRIVERS in the State Road Transport
Corporation.

4. Union Transport Minister‟s Trophy for the lowest Accident Record in 1998-2001

5. Parisara Award 2001 by Govt. of Karnataka

6. IRTE Prince Michael International Road safety Award -2002

7. Safety Award by Chartered Institute of Logistics & Transport 2001-2002

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8. Petroleum Conservation Research Association Award - 2001-02 & 2002-03

9. Golden peacock Environment management Award - 2003

10. Golden peacock Eco Innovation Award 2004

11. Received Prestigious Runner-up Award from PCRA for the best improvement in HSD
KMPL during 2001-02.

12. KSRTC adjudged Winner for the best improvement in HSD KMPL during 2002-03.

13. KSRTC also adjudged Winner for the best improvement in HSD KMPL during & 2003-04.

14. OSHMS 18001, ISO 14001 & 9001 certification for conformance towards occupational
health & safety management system standard

15. Safety innovation of 2006 for safety & quality by Institute of Eng. New Delhi.

16. EMPI-Indian express Indian innovation award -2006 for successful delivery of multiple end-
results

17. Excellency Award for implementing ETM Machine

KSRTC has bagged Excellency Award for implementing Electronic Ticket issuing machine first
of its kind in the country at Mysore City. The award has been awarded by Sri. Ajay Maken,
Minister of State for Ministry of Urban Development, Government of India to Sri.
GauravGuptha I.A.S., Managing Director, KSRTC, Bangalore at New Delhi on 05-12-2008.

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CHAPTER 4:
RATIOS AND THEIR INTERPRETATION

TABLE-1

CURRENT RATIO

1. Current Ratio = Current Asset

Current liabilities (Rs. In 000‟s)

S Year Current Asset Current Current Ratio


NO. Liabilities
1 2006-2007 1104943 2046414 0.495

2 2007-2008 1247966 2649355 0.471

3 2008-2009 1897669 2707029 0.701

4 2009-2010 1510412 2520345 0.599

Source Annual report (2006-2010)

Analysis:From the above table, it is analyzed that the current ratio in 2006-07 was 0.495, in
2007-08 decreased to 0.471, in 2008-09 increased to 0.701, and in 2009-10decreased to 0.599,
The company is relatively having low current ratio which is not equal to 2:1 or more than
2:1.hence from this we can say that the company is not in a satisfactory position to meet its
current ratio obligations.

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CURRENT RATIO
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2006-2007 2007-2008 2008-2009 2009-2010
CURRENT RATIO 0.473 0.495 0.701 0.599

Interpretation:The current ratio is the indicator of the firm commitment to meet its short
liabilities and also an index of the financial stability of the concern. It indicates the liability of
current asset is rupee for every 1 rupee of current liability. From the table clearly indicates the
current ratio is in raising trend from 2006-2009 but in 2010 it has decreased.

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TABLE-2

Quick Ratio:
The ratio is also termed as acid test ratio or liquidity ratio is ascertained by comparing the
liquid assets.

QUICK RATIO = Quick Assets

Current Liabilities

Quick Assets = Current Assets – Inventories

(Rs. In 000‟s)

S. No Year Liquid Asset Current Liabilities Quick Ratio

1 2006 – 2007 888363 2233542 0.398

2 2007 – 2008 1001032 2649355 0.378

3 2008 – 2009 1606548 2707029 0.593

4 2009 – 2010 925401 2520345 0.367

SOURCES: Annual Report (2006-2010)

Analysis:From the above table it is clear that quick ratio in the year 2006-07 is 0.398, in 2007-
08 is decreased to 0.378, but again it is increased in 2008-09 to 0.593, and again it is decreased
in the year 2009-10 to 0.367..It indicates that a low ratio represents the company‟s liquidity
position is not good. Here the company‟s quick ratios are increasing and decreasing every year
the company‟s liquidity position is very bad.

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Quick ratio
0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2006-2007 2007-2008 2008-2009 2009-2010
ouick ratio 0.398 0.378 0.593 0.367

Interpretation:A low quick ratio would indicate that the firm might not be able to maintain its
liquidity position. A very figure is not desirable either. This is because the firm might have high
receivables. The quick ratios refer to those current liabilities which are required to pay off
immediately or short notice conventionally a quick ratio 1:1 is considered satisfactory. The
company has to be conscious with regard to quick ratio. It has to increase its current assets to
have a better position.

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TABLE-3

SOLVENCY RATIO:

Solvency ratio is the relationship between the total assets and the total liabilities of a concern.

SOLVENCY RATIO = Total Assets

Total Liabilities

SL. YEAR Total Assets Total Liabilities Solvency Ratio


No.

1 2006-2007 10937776 2233542 4.89

2 2007-2008 13313582 2649357 5.02

3 2008-2009 15208280 2707029 5.60

4 2009-2010 16340091 2520345 6.48

Source Annual report (2006-2010)

ANALYSIS: The table shows that the solvency ratio has increased over the years; it was 4.89 in
the year 2006-07, increased to 5.02, in 2007-08& increased to 5.60 in 2008-09 and again
increased in the year 2009-10 to 6.48. Here we can say that if the total assets are more than the
liabilities then the company is in a solvency position. From the above table we can say that the
total assets are more than the liabilities and hence the company‟s solvency position is very good.

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Solvency Ratio

0
2006-2007 2007-2008 2008-2009 2009-2010
Solvency Ratio 4.89 5.02 5.6 6.48

Interpretation:Though no standard or ideal solvency ratio has been established, one can
say that higher the solvency ratio of a concern, the stronger is its financial position; whereas
solvency position is been increasing year to year it can be said that the financial position of a
company is stronger.

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TABLE-4

PROPRIETARY RATIO:
Proprietary ratio is the ratio which expresses relationship between net worth or equity and
total assets

Net worth ratio or equity means the excess of total assets over total liabilities. In other
words, it means owners or proprietor‟s fund.

PROPRIETARY RATIO = Shareholders fund

Total Assets

SL. YEAR Share Holders Total Assets Proprietary Ratio


No. Fund
1 2006-2007 2323870 10937776 0.21

2 2007-2008 2673870 13313582 0.20

3 2008-2009 2908870 15208280 0.19

4 2009-2010 2908870 16340091 0.17

Source Annual report (2006-2010)

Analysis:The table depicts that the proprietary ratio in the year 2006-07 is 0.21, which
decreased to 0.20 in the year 2007-08, again it decreased to 0.19 in 2008-09 and declined to
0.17 in 2009-10,. This analysis will show the relationship of the owner‟s funds. Every year the
ratios are decreasing.

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Proprietary Ratio
0.25

0.2

0.15

0.1

0.05

0
2006-2007 2007-2008 2008-2009 2009-2010
Proprietary Ratio 0.21 0.2 0.19 0.17

Interpretation: As per the analysis shown in the graphical representation, one can say thatthe
financial position of the company is weak.

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TABLE-5

FIXED ASSETS TO PROPRIETARY FUNDS RATIO:

Fixed assets to proprietary funds ratio = Total fixed assets

Total share holders’ funds

(Rs in 000’s)

SL.No. YEAR Share Holders Total Fixed Ratio


Fund
Assets
1 2006-2007 2323870 9832833 4.23

2 2007-2008 2673870 12065616 4.51

3 2008-2009 2908870 13310611 4.57

4 2009-2010 2908870 14829679 5.09

Source Annual report (2006-2010)

Analysis:From the table it is clear that the fixed asset to Proprietary fund ratio is increasing from
year to year only in one year it has decreased that is in the year 2006-07. In the year 2006-07 it is
4.23, in the year 2007-08 increased to 4.51, in the year 2008-09 increased to 4.57 & 5.09 in the
year 2009-10. From the table we can say that the company is having a surplus equity then the
fixed assets and hence the company is in a good position to meet the working capital of the
company

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Fixed Asset To Proprietary Fund Ratio


4.6

4.5

4.4

4.3

4.2

4.1

4
2006-2007 2007-2008 2008-2009 2009-2010
F.A.P.R 4.23 4.51 4.57 4.5

Interpretation:This ratio expresses the relationship between the fixed assets and net worth.
This ratio indicates the proportion of the fixed assets financed by the owner. The ideal ratio
for an industrial undertaking is 0.67:1 or 67% that is the fixed assets should not constitute
more than 67% of the owner‟s funds.

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TABLE-6

INVENTORY TURNOVER RATIO:


This ratio is also called as stock velocity ratio. The relationship between cost of sales in
to average stock.

Inventory Turnover Ratio = Net Sales

Average Inventory

(Rs. In 000‟s)

Inventory
SL. Net Sales Average
Year Turnover
No Inventory
Ratio

1 2006-2007 11739868 210876 55.67

2 2007-2008 13200993 240285 54.94

3 2008-2009 14295344 277937 51.43

4 2009-2010 15150605 283842 53.37

SOURCES: Annual Report (2006-2010)

Analysis: In the year 2007-08 the stock velocity has decreased to 54.94 times as compared to
previous year 2006-07 where it was 55.67 times, during 2009-10 it was 53.37 times which has
been increased compared to previous year 2008-09 which was 51.43.

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55.67
56 54.94
55
53.37
54

53
51.43
52

51

50

49
2006-2007 2007-2008 2008-2009 2009-2010

I.T.R

Interpretation: A higher ratio indicates that the firm stop policy is more effective in the year
2006-07 has compared to previous year it means that the average stock is 53.37 times sold are
consume during the year 2006.

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TABLE-7

TOTAL ASSET TURNOVER RATIO:


The total turnover ratio is relationship between the net sales in to total asset.Net sales
refer to sales minus sales return. Total assets refer to all the assets including fixed assets and
current assets.

Total Asset Turnover ratio = Net Sales

Total Assets

(Rs. In 000‟s)

Assets
SL.
Year Net sales Total asset turnover
No
Ratio

1 2006-2007 11739868 10937776 1.07

2 2007-2008 13200993 13313582 0.99

3 2008-2009 14295344 15208280 0.94

4 2009-2010 15150605 16340091 0.92

Source Annual report (2006-2010)

ANALYSIS:From the above table it is clear that the Total asset turnover ratio in the year 2006-
07 is 1.07, & decreased to 0.99 in the year 2007-08, 0.94 in the year 2008-09 and further
decreased to 0.92.This ratio will show what are the sales made out of the total assets of the
company. In four years there is an increase and decrease in the ratios.

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T.A.T.R

1.1

1.05

1
Axis Title

0.95
T.A.T.R
0.9

0.85

0.8
2006-2007 2007-2008 2008-2009 2009-2010
Axis Title

Interpretation:
The ratio indicates efficiency or inefficiency in the use of total resources or assets of a concern.
In other words it is the measure of the overall performance of the organization. In this context, it
may be noted that a very high ratio indicates over trading. The net assets are the total of current
asset and fixed asset. The above table reveals there is a decline in the total asset which is a sign
of not improvement in the organization

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TABLE-8

Fixed Asset Turn Over Ratio:


The ratio indicates the extent to which the investment in fixed assets contributes towards
sales. The standard or ideal fixed assets Turnover ratio is five times. The fixed assets turnover
ratio is generally expressed as a rate.

It can be calculated as follows;

Fixed Asset Turnover ratio = Net Sales

Fixed Assets

(Rs in 000‟s)

S.
Year Net sales Fixed asset F.A.T.R
No

1 2006 – 2007 11739868 9832833 1.91

2 2007 – 2008 13200993 12065616 1.09

3 2008 – 2009 14295344 13310611 1.07

4 2009 – 2010 15150605 14829679 1.02

Source Annual report (2006-2010)

Analysis:From the above table it is clear that the fixed asset turnover ratio in the year 2006-07 is
1.91, & decreased to 1.09 in the year 2007-08, 1.07 in the year 2008-09 and further decreased to
1.02.This ratio will show what the sales are made out of the total assets of the company. In four
years there is an increase and decrease in the ratios.

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Fixed Asset Turnover Ratio

2
1.8
1.6
1.4
1.2
1 Fixed Asset Turnover Ratio
0.8
0.6
0.4
0.2
0
2006-2007 2007-2008 2008-2009 2009-2010

Interpretation:The ratio indicates efficiency or inefficiency in the use of total resources


or assets of a concern. In other words it is the measure of the overall performance of the
organization. In this context, it may be noted that a very high ratio indicates over trading. The net
assets are the total of current asset and fixed asset. The above table reveals there is a decline in
the total asset which is a sign of not improvement in the organization

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TABLE-9

DEBTOR TURNOVER RATIO:


This ratio indicates the relationship between net credit sales and average debtors. It shows the
rate at which cash is generated by the turnover of debtors. It is also known as receivable turnover
ratio.

DEBTORS TURNOVER RATIO = Net Credit sales

Average debtors

SL YEAR Net Sales Average Debtors Ratio


no.

1 2006-07 11739868 416240 28.20

2 2007-08 13200993 349868 37.73

3 2008-09 14295344 520685 27.45

4 2009-10 15150605 460211 32.92

Source Annual report (2006-2010)

Analysis:From the above table it is clear that the debt turnover ratio is 28.20 in the year 2006-
07,in 2007-08 it has increased to 37.73 and it has slightly decreased to 27.45 in the year 2008-09.
This ratio will say about the net sales made during the year by giving credit to the debtors and
after a short period which can be easily converted in to cash.

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DEBTOR TURNOVER RATIO

40

35

30

25

20

15

10

0
2006-2007 2007-2008 2008-2009 2009-2010
D.T.R 28.2 37.73 27.45 32.92

Interpretation:The debtor‟s turnover ratio as called matches net credit sales of a firm to record
trade debtors there by indicating the rate at which cash is generated by turnover or receivable or
debtors. This ratio indicates the rate at which amounts are collected from debtors; this also
indicates the liquidity of the company as the rate at which debtors are collected influences the
liquidity of the company.

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TABLE-10
Current asset to Net worth Ratio

Current asset to Net worth ratio = Current asset

Net worth

(Rs in 000‟s)

Sl. YEAR Current asset Net worth Current asset to


No. Net worth ratio
1 2006-2007 1104943 2323870 0.47

2 2007-2008 1247966 2673870 0.46

3 2008-2009 1897669 2908870 0.65

4 2009-2010 1510412 2908870 0.51

Source Annual report (2006-2010)

Analysis: From the above table it is clear that the current asset to net worth ratio is increasing. In
the year 2006-07 it was 0.47 & decreased to 0.46 in year 2007-08. In the year 2008-09 it was
0.65 & increased to 0.65 & decreased to 0.51 in the year 2009-2010. This ratio indicates how
much the shareholders haves invested in the current assets, from this ratio we can analyze the
investing of the shareholders funds to the current assets.

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Current asset to Net worth Ratio

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2006-2007 2007-2008 2008-2009 2009-2010
C.A - N W Ratio 0.47 0.46 0.65 0.51

Interpretation:Current assets to net worth ratio are the ratio between current assets and net
worth. This ratio indicates the proportion of current assets financed by the owner. There is no
ideal ratio for this, though there is no ideal ratio for this one can say that if this ratio is high, then
the financial strength of the company is good. But in the above table the ratios are decreasing so
the financial condition of the company is not good.

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TABLE-11
Current asset Turnover Ratio

Current asset Turnover Ratio = Net sales

Current assets

(Rs in 000‟s)

Sl. YEAR Net Sales Current Assets Current asset


No. Turnover ratio

1 2006-2007 11739868 1104943 10.62

2 2007-2008 13200993 1247966 10.57

3 2008-2009 14295344 1897669 7.53

4 2009-2010 15150605 1510412 10.03

Source Annual report (2006-2010)

Analysis:From the above tables it is clears that the current ratio in the year 2006-07 is
10.62, than decreased to 10.57 in the year 2007-08, than & further decreased to 7.53& again
increased to 10.03 in the year 2009-10. Here we can see the turnover of the currents assets made
by the company through its sales in the four years.

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Current Asset Turnover Ratio

12

10

0
2006-2007 2007-2008 2008-2009 2009-2010
C A T .O .R 10.62 10.57 7.53 10.03

Interpretation: Current asset turnover ratio is the ratio between current assets and turnover or
net sales. This ratio explains the contribution of current assets to generate sales. With this ratio it
is implied to know the contribution of current assets to the total sales. Here sales constitute even
cash and credit sales.

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TABLE-12
Current Liabilities to Net worth Ratio

Current Liabilities to Net worth ratio = Current Liabilities

Net worth

Sl. YEAR Current Liabilities Net worth Current liabilities to


No. Net worth ratio

1 2006-2007 2046414 2323870 0.88

2 2007-2008 2649355 2673870 0.99

3 2008-2009 2707029 2908870 0.93

4 2009-2010 2520345 2908870 0.86

Analysis:From the table it is shown that in the year 2006-07,the current liability to net
worth is 0.88,which increased to 0.99 in 2007-08, then further decreased to 0.93 in the
year 2008-09 and again decreased to 0.86 and. This ratio shows the shareholders funds
towards the current liabilities, this will say about the claims of the current liabilities.

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Current Liabilities to Net Worth ratio

1
0.98
0.96
0.94
0.92
0.9
0.88
0.86
0.84
0.82
0.8
0.78
2006-2007 2007-2008 2008-2009 2009-2010
CL to NW ratio 0.88 0.99 0.93 0.86

Interpretation: It is the relationship between current liabilities and net worth, this ratio indicates
the relative contribution of the short term creditors and the owners in the capital of the company.
The desirable level set for this ratio is 33 1/3% or 1/3, so if the actual ratio is very high it would
mean that the liability base of the company will not provide an adequate cover for long term
creditors that means it would be difficult for the company to obtain the long term funds.

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TABLE-13
Stock to Fixed Assets ratio

Stock to Fixed Asset = Stock

Fixed assets

Sl. YEAR Stock Fixed Assets Stock to Fixed asset


No. ratio

1 2006-2007 210876 9832833 0.02

2 2007-2008 240285 12065616 0.01

3 2008-2009 277937 13310611 0.02

4 2009-2010 283842 14829679 0.01

Analysis:From the above table it is clear that the stock to fixed assets ratio is 0.02 in the year
2006-07 and in 2007-08 it has been decreased to 0.01 and again it has increased to 0.02 in the
year 2008-09 and then decreased to 0.01 in the year 2009-10.

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Stock to Fixed asset


0.025

0.02

0.015

Stock to Fixed asset


0.01

0.005

0
2006-007 2007-2008 2008-2009 2009-2010

Interpretation:The above analysis shows the relationship between stocks to fixed assets. The
stock to fixed assets ratio is increased from the year 2008-09 but in the coming year 2009-10 it
was decreased.

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TABLE - 14

DEBT/EQUITY RATIO:

DEBT/EQUIT RATIO = Debt

Equity

SHOWING THE DEBT/EQUITY RATIO

Year Debt Equity Debt/equity ratio

2006-07 2309324 2323870 0.99

2007-08 2782938 2673870 1.04

2008-09 2776535 2908870 0.95

2009-10 2537540 2908870 0.87

Analysis:From the table it is analyzed that the debt equity ratio in the year 2006-07 is 0.99, in
2007-08, it as gone up to 1.04, but it has decreased to 0.95 in the year 2008-09 and in 2009-10 it
has decreased to 0.72. This ratio will say to whom the debt is given and it will say whether it is a
short term debt or a long term debt. Hence from this we can realize how much the company has a
debt.

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DEBT EQUITY RATIO

1.05%

1.00%

0.95%

0.90%

0.85%

0.80%

0.75%
2006-07 2007-08 2008-09 2009-10
DEBT EQUIT RATIO 0.99% 1.04% 0.95% 0.87%

Interpretation:This ratio expresses the relationship between debt and the equity debt. Generally
refers to long term liabilities and short term liabilities. The idle debt equity ratio is 2:1as such if
the debt is less than 2 times the equity the logical conclusion is that the financial structure of the
company is sound and the risk of the long term creditors is relatively less.However long term
solvency may be ensured.

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CHAPTER-5
FINDINGS AND SUGGESTIONS

FINDINGS:
1. There is increase in nominal profit and decrease in loss which shows the satisfactory
performance.
2. The current ratio and quick ratio is not satisfactory. It has to improve in order to meet the
requirements.
3. The liquidity position of the firm is not good.
4. The fixed asset ratio indicates that the firm has made more investment in the fixed asset
from the year 2006.
5. The inventory turnover ratio indicates the adequacy in inventory and high stocking..
6. Company has maintained low current asset and reserves and surplus.
7. There is a new launch of vehicles every year depend upon the preferences and demand of
the passengers.
8. Corporation has got the Jn-NURM Scheme for the development and upgradation of its
services.

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SUGGESTIONS:

1. The company maintain high inventory. It should reduce this by not investing heavily in
those which are not so useful to its operating because it is a loss to organization which
blocks its funds.
2. As liquidity position is not good, it has to make use of reserves and surplus money of its
working capital requirements.
3. The organization should make use of excessive investment. The fixed asset for the
purpose of arrangement of bus facility to far and interior areas where facilities are not
proper.
4. Expansion of computerization through wide area network for the financial management
in the organization.
5. The company should continue with its policy of not borrowing capital from the banks, as
it will borrow its liabilities.
6. The corporation should offer services on the basis of contract which attract new
customers for its development.
7. Because of some internal adjustments the corporation is suffering from losses though
there is a operating profit every year, proper care must be taken to correct and to improve
the profitability of corporation

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CHAPTER-6
CONCLUTIONS:

KSRTC is the oldest and well established public limited company which has made a sufficient
name and fame in the minds of public for it services offered. KSRTC has a very good reputation
for its brand name and also for quality service.

Based on the evaluation method the project may be concluded that the ratio analysis has helped
in analyzing its performance by using various statistical tools. As we went about doing these
ratios it has helped to understand the rationale performance of the organization and immense
help in judging strengths and weakness. Even though KSRTC is earning profit it is too high as
compared to BMTC, where there is proper arrangement of buses and other facilities. So KSRTC
can make the same in all the places of Karnataka. By and large the human link is the most vital
link to execute and sustain the improvements.

From the above ratio analysis it is clear that the organization has not being maintained good
liquidity position as its current liabilities are more than the current asset and it is a sign of
negative working capital. The corporation should first concentrate in improving its assets which
is very important for the organization. Even though it is public sector and the most probably all
transaction will be held in cash, it is advisable for the corporation to maintain the good working
capital position in order to induce growth and profitability.

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Chapter-7
ANNEXURE

BALANCE SHEET AS ON YEAR ENDING 2007


CAPITAL&LIABILITIES AMOUNT ASSETS AMOUNT

1.EQUITY CAPITAL 1.FIXED ASSETS(AT COSTS)


1.Equity Capital(Karnataka 1842894 1.Fixed Assets 9529716
Govt) 480976 2.Capital Work in Progress 303117
2. Equity Capital(Union Govt)

2.CAPITAL 2.INVESTMENTS
CONTRIBUTION 0 1.Insurance & Accident Reserve 500
1.Karnataka Govt Capital 10000 Fund
2.Union Govt Capital 2.Investment Against Funds 0
3.Other Investments 0
3.INTERNAL RESOURCES 3.CURRENT ASSETS
Capitalization from 4780801 1.Inventories
depreciation reserves I. Stores & Spares 210389
expenditure II. Work in Progress 487
Rws Bangalore 454
Rws Hassan 0
Units 33
2.Sundry Debtors
a. Debtors Considered Good 410284
b. Doubt Full Debts 5956
3.Advances
I. Advances to Employees 168614
II. Advances to Suppliers 34817
III. Advances to other Parties 3516
4.Interest Earned on Investment 150
But Not Received
5.Stock Adjustment Account 11178
6.Asset Adjustment Account 0
7.Deposits by the Corporation 90720
8.Prepaid Expenses 5704
9.Cash
I. Cash on Hand 71175
II. Cash at Banks 47757
III. Cash in Transit 43896
IV. Contingency Fund 300

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4.RESERVE FUNDS 4.DEFFERED REVENUE 25495


1.Reserve 384324 EXPENDITURE
2.Depreciation 4050

5.LOANS 5.NET LOSS 1660009


SECURED LOANS 1.Net Loss Brought Forward From
1.loans from commercial 2241696 Preceding year
Banks 1998986
2.KUIDC Loan 67628 2.Less:NP brought forward
338977
UNSECURED LOANS from net Appropriation A/C
1. Loan from state Govt. 443629
2.interest on state Govt Loans 28592
3.Public Deposits 39
4.commercial papers 0
HDFC loans Receipts toward 105609
Employees
6.LIABILITIES
1.Current Liabilities & 1925883
Provisions
2.Provision for write-off of 4206
Anticipated loss on Disposal of
surplus & obsolete store
3.Provision for write-off Bad 5956
and Doubt full Debts
4.Deposits 297497
7.NET PROFIT
1.Net profit B/F from previous 0
year

GRAND TOTAL 12623780 GRAND TOTAL 12623780

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BALANCE SHEET AS ON YEAR ENDING 2008


CAPITAL&LIABILITIES AMOUNT ASSETS AMOUNT

1.EQUITY CAPITAL 1.FIXED ASSETS(AT COSTS)


1.Equity Capital(Karnataka 2192894 1.Fixed Assets 11381164
Govt) 2.Capital Work in Progress 684452
2. Equity Capital(Union Govt) 480976

2.CAPITAL 2.INVESTMENTS
CONTRIBUTION 0 1.Insurance & Accident Reserve 500
1.Karnataka Govt Capital 10000 Fund
2.Union Govt Capital 2.Investment Against Funds 0
3.Other Investments 80000
3.INTERNAL RESOURCES 3.CURRENT ASSETS
Capitalization from 5631590 1.Inventories
depreciation reserves I. Stores & Spares 240135
expenditure II. Work in Progress 487
Rws Bangalore 0
Rws Hassan 0
Units 150
2.Sundry Debtors
a. Debtors Considered Good 340717
b. Doubt Full Debts 9151
3.Advances
I. Advances to Employees 161606
II. Advances to Suppliers 129227
III. Advances to other Parties 2633
4.Interest Earned on Investment But
Not Received 140
5.Stock Adjustment Account 15308
6.Asset Adjustment Account 0
7.Deposits by the Corporation 114942
8.Prepaid Expenses 6649
9.Cash
I. Cash on Hand 52933
II. Cash at Banks 101244
III. Cash in Transit 73374
IV. Contingency Fund 300

4.RESERVE FUNDS 4.DEFFERED REVENUE 9039


1.Reserve 419079 EXPENDITURE
2.Depreciation 3614

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5.LOANS 5.NET LOSS


SECURED LOANS 1.Net Loss Brought Forward From 1660009
1.loans from commercial 2727606 Preceding year
Banks 1660008 1254582
2.KUIDFC Loan 55332 2.Less:NP Brought Forward
405426
UNSECURED LOANS from net Appropriation A/C
1. Loan from state Govt. 360000
2.interest on state Govt Loans 30254
3.Public Deposits 39
4.commercial papers 0
HDFC loans Receipts toward 96964
Employees
6.LIABILITIES
1.Current Liabilities & 2223422
Provisions
2.Provision for write-off of 4206
Anticipated loss on Disposal of
surplus & obsolete store
3.Provision for write-off Bad 9221
and Doubt full Debts
4.Deposits 412508
7.NET PROFIT
1.Net profit B/F from previous 0
year

GRAND TOTAL 14657703 GRAND TOTAL 14657703

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A STUDY ON RATIO ANALYSIS AT KSRTC, BANGALORE

BALANCE SHEET AS ON YEAR ENDING 2009


CAPITAL&LIABILITIES AMOUNT ASSETS AMOUNT

1.EQUITY CAPITAL 1.FIXED ASSETS(AT COSTS)


1.Equity Capital(Karnataka 2427394 1.Fixed Assets 12385201
Govt) 2.Capital Work in Progress 684678
2. Equity Capital(Union Govt) 480976 JnNURM
1. Buildings 16029
2. Work in progress 224704
2.CAPITAL 2.INVESTMENTS
CONTRIBUTION 0 1.Insurance & Accident Reserve 500
1.Karnataka Govt Capital 10000 Fund
2.Union Govt Capital 2.Investment Against Funds 0
3.JnNURM 170514 3.Other Investments 0
a. Share of GOI 21314
b. Share of GOK
3.INTERNAL RESOURCES 3.CURRENT ASSETS
Capitalization from 6401590 1.Inventories
depreciation reserves a. Stores & Spares 277818
expenditure b. Work in Progress 119
Rws Bangalore 0
Rws Hassan 0
Units 119
2.Sundry Debtors
a. Debtors Considered Good 516344
b. Doubt Full Debts 4341
3.Advances
I. Advances to Employees 161339
II. Advances to Suppliers 243634
III. Advances to other Parties 864
4.Interest Earned on Investment 203
But Not Received
5.Stock Adjustment Account 24314
6.Asset Adjustment Account 0
7.Deposits by the Corporation 134140
8.Prepaid Expenses 13184
9.Cash
I. Cash on Hand 51064
II. Cash at Banks 347615
III. Cash in Transit 122390
IV. Contingency Fund 300

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4.RESERVE FUNDS 4. DEFFERED REVENUE 35703


1.Reserve 448304 EXPENDITURE
2.Depreciation 2406

5.LOANS 5.NET LOSS


SECURED LOANS 1.Net Loss Brought Forward From
1.loans from commercial 2733499 Preceding year
Banks 1254582 677530
2.KUIDFC Loan 43036 2.Less:NP Brought Forward
577052
UNSECURED LOANS from net Appropriation A/C
1. Loan from state Govt. 360000
2.interest on state Govt Loans 30254
3.Public Deposits 29
4.commercial papers 0
HDFC loans Receipts toward 85168
Employees
6.LIABILITIES
1.Current Liabilities & 2079873
Provisions
2.Provision for write-off of 4206
Anticipated loss on Disposal of
surplus & obsolete store
3.Provision for write-off Bad 4341
and Doubt full Debts
4.Deposits 618609
7.NET PROFIT
1.Net profit B/F from previous 0
year

GRAND TOTAL 15922013 GRAND TOTAL 15922013

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BALANCE SHEET AS ON YEAR ENDING 2010


CAPITAL&LIABILITIES AMOUNT ASSETS AMOUNT

1.EQUITY CAPITAL 1.FIXED ASSETS(AT COSTS)


1.Equity Capital(Karnataka 2427894 1.Fixed Assets 13402763
Govt) 2.Capital Work in Progress 1426916
2. Equity Capital(Union Govt) 480976

2.CAPITAL 2.INVESTMENTS
CONTRIBUTION 0 1.Insurance & Accident Reserve 500
1.Karnataka Govt Capital 10000 Fund 0
2.Union Govt Capital 2.Investment Against Funds 0
3.JnNURM 0 3.Other Investments
1. Share of GOI 0
2. Share of GOK
3.INTERNAL RESOURCES 3.CURRENT ASSETS
Capitalization from 6971790 1.Inventories
depreciation reserves a. Stores & Spares 283577
expenditure b. Work in Progress 265
Rws Bangalore 0
Rws Hassan 0
Units 265
2.Sundry Debtors
a. Debtors Considered Good 455621
b. Doubt Full Debts 4590
3.Advances
I. Advances to Employees 147547
II. Advances to Suppliers 91146
III. Advances to other Parties 2331
4.Interest Earned on Investment 107
But Not Received
5.Stock Adjustment Account 27259
6.Asset Adjustment Account 0
7.Deposits by the Corporation 169942
8.Prepaid Expenses 26858
9.Cash
I. Cash on Hand 60584
II. Cash at Banks 117848
III. Cash in Transit 122437
IV. Contingency Fund 300

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4.RESERVE FUNDS 4. DEFFERED REVENUE 42268


1.Reserve 954808 EXPENDITURE
2.Depreciation 356153

5.LOANS 5.NET LOSS 189062


SECURED LOANS 1.Net Loss Brought Forward From
1.loans from commercial 2506800 Preceding year
Banks 677530
2.KUIDFC Loan 30740 2.Less:NP Brought Forward
488468
UNSECURED LOANS from net Appropriation A/C
1. Loan from state Govt. 210000
2.interest on state Govt Loans 30254
3.Public Deposits 29
4.commercial papers 0
HDFC loans Receipts toward 72132
Employees
6.LIABILITIES
1.Current Liabilities & 1920658
Provisions
2.Provision for write-off of 2439
Anticipated loss on Disposal
of surplus & obsolete store
3.Provision for write-off Bad 4590
and Doubt full Debts
4.Deposits 592658
7.NET PROFIT
1.Net profit B/F from previous 0
year

GRAND TOTAL 16571921 GRAND TOTAL 16571921

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PROFIT & LOSS A/C FOR THE YEAR ENDING 31/12/2007


PARTICULARS AMOUNT PARTICULARS AMOUNT
A. Traffic BY OPERATING
a) Employment cost REVENUE:
1)salaries and allowances 21162 TRAFFIC REVENUE:
of officers
2)salaries and allowances 204184 1. Traffic revenue from 10840480
of staff sale of tickets
3)salaries and allowances 1541071 2. Passenger luggage 67340
of drivers/ conductors revenue
4)travel expenses 2330 3. Revenue contract 403277
5)medical expenses 30326 services
6)Overtime allowances 197193 4. Revenue travel 419388
Total employee cost 1996266 concession
b) Other cost 5. Fines collected from 5432
1)Tickets 7104 passengers
2)Tools & equipment 343 6. Postal mail service 3951
3)Fines under M.V.Act 0
4)Cleaning & sweeping 14575
charges
c) Hired vehicle charges 106042

B. Repairs & Maintenance


1) Salaries & allowances of 361138
maintenance staff
2) Material composition 737239
3) Electricity charges 15036
4) Freight (other than fuel) 845
5) Repair by outside 12026
agencies
6) Other charges 214537
C. Fuel Oil & Lubricants 4982226
D. Taxes on Passenger Vehicle 908842
E. Welfare Expenses 642219
F. Administrative Expenses
1) Salaries and allowances of 363362
ADM staff/officers379022
Less: Absorption in RWS 15660
2) Environmental expenses 858
3) Allowances to Board & 33
committee members
4) Communication expenses 15195
5) Consultation expenses 21595

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6) Maintenance of 53558
departmental veh.
7) Printing & stationery 35985
8) Rent, Rates & Taxes 27076
9) General office expenses 132215 Operating loss c/d 133708
10) Repairs and Maintenance 55681
expenses NON OPERATING
Total Administrative Expenses 705558 REVENUE
G. Depreciation on vehicle 1169580
TOTAL OPERATING EXPENSES 11873576 Miscellaneous income 450584
TO OPERATING PROFIT CARRIED
FORWARD 0
TO NON OPERATING EXPENSES Income from subsidies 521027
1)Depreciation on other assets 78551 74749
Less: Amt absorbed in RWS 3802 Total non-operating revenue 971881
2)Financial cost 186764
3)Provisions 0
4) Contribution towards various funds Net prior period income 6242
243925
PIF 43801
111 party risk insurance fund 200124
Total non-operating expenses 505438
1) Net prior period expenses 0
To profit for the year carried forward to 338977
net revenue appropriation a/c

TOTAL EXPENDITURE 12717991 TOTAL INCOME 12717991

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PROFIT & LOSS A/C FOR THE YEAR ENDING 31/12/2008


PARTICULARS AMOUNT PARTICULARS AMOUNT
B. Traffic BY OPERATING
c) Employment cost REVENUE:
1)salaries and allowances 25561 TRAFFIC REVENUE:
of officers
2)salaries and allowances 219731 7. Traffic revenue from 12158337
of staff sale of tickets
3)salaries and allowances 1878401 8. Passenger luggage 98363
of drivers/ conductors revenue
4)travel expenses 1374 9. Revenue contract 423627
5)medical expenses 38714 services
6)Overtime allowances 227430 10. Revenue travel 512545
Total employee cost 2391211 concession
d) Other cost 11. Fines collected from 4535
1)Tickets 19327 passengers
2)Tools & equipment 339 12. Postal mail service 3586
3)Fines under M.V.Act 0 Total Traffic revenue
4)Cleaning & sweeping 18121
charges
c) Hired vehicle charges 23321

B. Repairs & Maintenance


7) Salaries & allowances of 407221
maintenance staff
8) Material composition 870544
9) Electricity charges 17764
10) Freight (other than fuel) 827
11) Repair by outside 25736
agencies
12) Other charges 253839
C. Fuel Oil & Lubricants 5416984
D. Taxes on Passenger Vehicle 1012555
E. Welfare Expenses 986704
F. Administrative Expenses
11) Salaries and allowances of 271681
ADM staff/officers 293617
Less: Absorption in RWS 21936
12) Environmental expenses 2062
13) Allowances to Board & 1470
committee members
14) Communication expenses 15867
15) Consultation expenses 18872

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16) Maintenance of 62751


departmental veh.
17) Printing & stationery 40041
18) Rent, Rates & Taxes 70697
19) General office expenses 122598
20) Repairs and Maintenance 70697 Operating loss c/d 214102
expenses
Total Administrative Expenses 640132 NON OPERATING
G. Depreciation on vehicle 1330447 REVENUE
TOTAL OPERATING EXPENSES 13415095
TO OPERATING PROFIT CARRIED 0 Miscellaneous income 462044
FORWARD
TO NON OPERATING EXPENSES 91698
1)Depreciation on other assets 95742 Income from subsidies 818055
Less: Amt absorbed in RWS 4044
2)Financial cost 349893
3)Provisions 3485 Total non-operating revenue 1280099
4) Contribution towards various funds 298735
PIF 39956 Net prior period income
111 party risk insurance fund 258779
Total non-operating expenses
643811
2) Net prior period expenses 16760
To profit for the year carried forward to 405426
net revenue appropriation a/c

TOTAL EXPENDITURE TOTAL INCOME 14481092


14481092

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A STUDY ON RATIO ANALYSIS AT KSRTC, BANGALORE

PROFIT & LOSS A/C FOR THE YEAR ENDING 31/12/2009


PARTICULARS AMOUNT PARTICULARS AMOUNT
A. Traffic BY OPERATING
a) Employment cost REVENUE:
1)salaries and allowances 30877 TRAFFIC REVENUE:
of officers
2)salaries and allowances 248835 1. Traffic revenue from 13048827
of staff sale of tickets
3)salaries and allowances 2119393 2. Passenger luggage 99193
of drivers/ conductors revenue
4)travel expenses 1188 3. Revenue contract 550382
5)medical expenses 39391 services
6)Overtime allowances 273698 4. Revenue travel 587585
Total employee cost concession
b) Other cost 5. Fines collected from 5033
1)Tickets 14115 passengers
2)Tools & equipment 186 6. Postal mail service 4324
3)Fines under MV.Act 202 Total Traffic revenue 14295344
4)Cleaning & sweeping 27310
charges
c) Hired vehicle charges 23783

B. Repairs & Maintenance


1)Salaries & allowances of 426344
maintenance staff
1) Material composition 1033481
2) Electricity charges 14640
3) Freight (other than fuel) 1200
4) Repair by outside 49402
agencies
5) Other charges 373997
C. Fuel Oil & Lubricants 6471302
D. Taxes on Passenger Vehicle 897420
E. Welfare Expenses 707810
F. Administrative Expenses
1) Salaries and allowance
of ADM staff/officers 449410 423420
Less: Absorption in RWS 25990
2) Environmental expenses 1960
3) Allowances to Board & 11
committee members
4) Communication expenses 18053
5) Consultation expenses 31017

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6) Maintenance of 71825
departmental veh.
7) Printing & stationery 30044
8) Rent, Rates & Taxes 61415
9) General office expenses 139099
10) Repairs and Maintenance 96161 Operating loss c/d -842113
expenses
Total Administrative Expenses 873005 NON OPERATING
G. Depreciation on vehicle 1509878 REVENUE
TOTAL OPERATING EXPENSES 15137457
TO OPERATING PROFIT CARRIED
FORWARD Miscellaneous income 1355779
TO NON OPERATING EXPENSES
1)Depreciation on other assets 110891 105155 Income from subsidies 707335
Less: Amt absorbed in RWS 5736
2)Financial cost 316643
3)Provisions 0 Total non-operating revenue 2063114
4) Contribution towards various funds 257267
PIF 46812 Net prior period 35116
111 party risk insurance fund 210455 adjustments
Total non-operating expenses 679065
1) Net prior period expenses 0
To profit for the year carried forward to 577052
net revenue appropriation a/c

TOTAL EXPENDITURE 16393574 TOTAL INCOME 16393574

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A STUDY ON RATIO ANALYSIS AT KSRTC, BANGALORE

PROFIT & LOSS A/C FOR THE YEAR ENDING 31/12/2010


PARTICULARS AMOUNT PARTICULARS AMOUNT
A) Traffic BY OPERATING
a) Employment cost REVENUE:
1)salaries and allowances 41179 TRAFFIC REVENUE:
of officers
2)salaries and allowances 296305 1. Traffic revenue from 13879239
of staff sale of tickets
3)salaries and allowances 2544307 2. Passenger luggage 98342
of drivers/ conductors revenue
4)travel expenses 1898 3. Revenue contract 493410
5)medical expenses 47747 services
6)Overtime allowances 295220 4. Revenue travel 670165
Total employee cost concession
b) Other cost 5. Fines collected from 5198
1)Tickets 19294 passengers
2)Tools & equipment 215 6. Postal mail service 4251
3)Fines under M.V.Act 0
4)Cleaning & sweeping 28142
charges
c) Hired vehicle charges 22592

B. Repairs & Maintenance


1) Salaries & allowances of
maintenance staff 526193
2) Material composition 1174719
3) Electricity charges 12993
4) Freight (other than fuel) 848
5) Repair by outside 28890
agencies
6) Other charges 399160
C. Fuel Oil & Lubricants 6715729
D. Taxes on Passenger Vehicle 836670
E. Welfare Expenses 780752
F. Administrative Expenses
1) Salaries and allowances 404752
of ADM staff/officers 440983
Less: Absorption in RWS 36231
2) Environmental expenses 2480
3) Allowances to Board & 21
committee members
4) Communication expenses 16628
5) Consultation expenses 35798

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6) Maintenance of 88885
departmental veh.
7) Printing & stationery 24206
8) Rent, Rates & Taxes 30194
9) General office expenses 171523 Operating loss c/d 1134592
10) Repairs and Maintenance 93163
expenses NON OPERATING
Total Administrative Expenses 867650 REVENUE
G. Depreciation on vehicle 1644694
TOTAL OPERATING EXPENSES 16285197 Miscellaneous income 1509267
TO OPERATING PROFIT CARRIED
FORWARD 0
TO NON OPERATING EXPENSES Income from subsidies 777968
1)Depreciation on other assets 127773 123491
Less: Amt absorbed in RWS 4282 Total non-operating revenue 2287235
2)Financial cost 251283
3)Provisions 249
4) Contribution towards various funds 314916 Net prior period 25764
PIF 49090 adjustments
111 party risk insurance fund 265826

Total non-operating expenses 689939


1) Net prior period expenses 0
To profit for the year carried forward to 488468
net revenue appropriation a/c

TOTAL EXPENDITURE
17463604
TOTAL INCOME 17463604

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A STUDY ON RATIO ANALYSIS AT KSRTC, BANGALORE

CHAPTER-8

BIBILOGRAPHY

BOOKS REFFERED AUTHORS Publication

Financial Management Prasanna Chandra TATA McGraw Hill


Management Accounting B S Raman HIMALAYA Publishers
R.K Sharma
Shashi k Gupta KALYANI Publishers

Websites:
www.google.com

www.ksrtc.com

www.scribd.com

www.slideshare.com

AISHWARYA FIRST GRADE COLLEGE Page 96

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