A STUDY ON CASH BUDGET ON BMTC

CHAPTER – 1
INTRODUCTION

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PART-A

INTRODUCTION TO PUBLIC TRANSPORT SERVICES:

Public transport is a shared passenger service which is available for

use by general public. Public transport bus services are generally
based on regular operation of transit buses along a route calling at
agreed bus stops according to published public transport time table.
There are many indications of experiments with public transport in
Paris as early as 1662, there is evidence of a scheduled bus route
from market street in Manchester to Pendleton in Sanford UK which
was started by JOHN GREENWORD in 1824.
Another claim for the first public transport system for general use
originated in Nantes, France in 1826.
Stanislaus bawdry , a retired army officer who had built public baths
using the surplus heat from his flour mill on the city’s edge, set up a
short route between a centre of town and his baths. The service
started on the place du commerce, outside the hat shop of M.
Omnes, who displayed the motto Omnes, Omnibus on his shop front.
When Baudry discovered that passengers were just as interested in
getting off at intermediate points as patronizing his baths, he changed
the routes focused. His new voiture ‘omnibus’ [ carriage for all]
combined the functions of the hired hackney carriage with a stage
coach that travelled a predetermined route from inn to inn, carrying
passengers and mail. His omnibus had wooden that ran down the
sides of the vehicle; passengers entered from the rear.
In 1828, Baudry went to Paris where he founded a company under
the name enterprise general des imnibus de Paris, while his son
Edmond Baudry founded similar companies in Bordeaux and in Lyon

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A London newspaper on July 4th 1829 that “the new vehicle, called
the omnibus, commenced running this morning from Paddington to
the city” operated by George Shillibeer. The first omnibus service in
New York began in 1829, when Abraham bowery, an entrepreneur
who had organised volunteer fire companies, established a route
along Broadway starting at Bowling Green.

A: PUBLIC TRANSPORT SERVICE IN INDIA:

Transport is an important part of India’s economy. Since the

economic liberalization of the 1990s infrastructure development has
progressed rapidly; today there are variety of modes transport by
land, water and air. However, India’s relativity low GDP per capita
has meant that access to transport has not been uniform.
Public transport remains the primary mode of transport for most of
the population and India’s public transport systems are among the
most heavily used in the world.
India’s railway network is the 4th longest and the most heavily used
system in the world, transporting 8,224 million passengers and over
969 million tons of freight annually, as of 2012.
Motor vehicle penetration is low by international standards, with
only 10.3 million cars on the nation's roads. In addition, only around
10% of Indian households own a motorcycle .Despite the number of
deaths caused by traffic is amongst highest in the world and is still
increasing. The automobile industry in India is currently rapidly
growing with an annual production of over 4.6 million vehicles, and
vehicle volume is expected to rise greatly in the future.

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B: BUS TRANSPORTAION IN INDIA:

Public transport is the predominant mode of motorized local

travelling cities. This is predominantly by road, since commuter rail
services are available only in the seven metropolitan cities of
Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, and Pune,
while dedicated city bus services are known to operate in at least 25
cities with a population of over one million. The share of buses is
negligible in most Indian cities as compared to personalized vehicles,
and two- wheelers and cars account for more than 80% of the vehicle
population in most large cities.
Buses take up over 90% of public transport in Indian cities and serve
as cheap as and convenient mode of transport for all classes of
society.
Servicers are mostly run by state government owned transport
corporations. However, all those got state transport corporations have
introduced various facilities like low-floor buses for the disabled and
air-conditioned buses to attract private car owners to help decongest
road
Mumbai introduced air conditioned buses in 1998; Bangalore city
was the first in India to introduce Volvo B7RLE intra-city buses in
India January 2005.
Bangalore is the first Indian city to have an air-conditioned bus stop,
located near Cuban Park. It was built by Airtel.

Bus rapid transit system:

Bus rapid transit systems although quite recent, exist in several cities
including Pune, Ahmedabad Jaipur, Rajkot, Surat, Bhopal, and
Indore.

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C: BUS SERVICES IN KARNATAKA:

The public bus transport in Karnataka is managed by the Karnataka

State Road Transport Corporation (KSRTC). It was set up in 1961
with the objective of providing adequate, efficient, economic and
properly coordinated road transport services. It operates 5100
schedules using 5400 vehicles covering 1.95 million kilometers and
an average of 2.2 million passengers daily. About 25000 people are
employed in KSRTC. For better management of public transport,
KSRTC was bifurcated into three Corporations viz., Bangalore
Metropolitan Transport Corporation, Bangalore on 15th Aug 1997,
North-west Karnataka Road Transport Corporation, Hubballi on 1st
Nov 1997 and North-East Karnataka Road Transport Corporation,
Gulbarga on 1st Oct 2000. Buses run by private persons are allowed
to operate in few districts of Karnataka. Omni bus and Maxi cabs are
also other modes of road transportation in the state; especially where
KSRTC does not buses or run very few.
Namma Metro (Our Metro in Kannada), also known as Bangalore
Metro, is a rapid transit system for the city of Bangalore, Karnataka,
India. The agency responsible for its implementation is the Bangalore
Metro Rail Corporation Ltd (BMRCL). The first stretch between
Baiyyappanahalli and M.G. Road was inaugurated on 20 October
2011.
Transport demand in India has been growing rapidly. In recent years
this demand has shifted among transport modes, mainly to the
advantage of road transport. About 60 per cent of freight and 87 per
cent passenger traffic is carried by road. Although National
Highways constitute only about 2 per cent of the road network, it
carries 40 percent of the total road traffic. Easy availability,

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adaptability to individual needs and the cost savings are some of the
factors which go in favor of road transport. Road transport also acts
as a feeder service to railway, shipping and air traffic. The number of
vehicles has been growing at an average pace of around 10 per cent
per annum. The share of road traffic in total traffic has grown from
13.8 per cent of freight traffic and 15.4 per cent of passenger traffic
in 1950-51 to an estimated 62.9 per cent of freight traffic and 90.2
per cent of passenger traffic by the end of 2009-10. The rapid
expansion and strengthening of the road network, therefore, is
imperative, to provide for both present and future traffic and for
improved accessibility to the hinterland. In addition, road transport
needs to be regulated for better energy efficiency, less pollution and
enhanced road safety.
During 1992-93 to 2004-05 demand for road freight transport in
India is estimated to have grown at an annual average rate of 6.7
percent, while GDP grew at an average of 6.2 percent. Road freight
transport demand is expected to grow by around 10% per annum in
the backdrop of a targeted annual GDP growth of 9% during the
Eleventh Five Year Plan. Public sector participation in passenger
road transport services in India commenced with the passing of the
Road Transport Corporations Act, 1950. At present, there are 71
State Transport Undertakings in the country comprising 21
Corporations registered under the Road Transport Corporations Act
(1950), 31 Companies registered under the Companies Act, 1956
(this number may be different in Tamil Nadu now), 8 Departmental
Undertakings and 11 Municipal Undertakings.
Public transport is the predominant mode of motorized local travel in
cities. This is predominantly by road, since commuter rail services
are available only in the six metropolitan cities of Mumbai, Delhi,
Chennai, Bangalore, Hyderabad and Kolkata, while dedicated city
bus services are known to operate in at least 17 cities with a

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population of over one million. Intermediate public transport modes

like tempos and cycle rickshaws assume importance in medium size
cities. However, the share of buses is negligible in most Indian cities
as compared to personalized vehicles, and two-wheelers and cars
account for more than 80 percent of the vehicle population in most
large cities.
The oldest Indian state transport under taking is "North Bengal State
Transport Corporation" founded by the Raj Durbar regime in the year
1945, the 1st April. With three buses and three trucks is still vibrant
and running providing service to hundreds of commuters of North
Bengal region of West Bengal, Buses take up over 90% of public
transport in Indian cities, and serve as a cheap and convenient mode
of transport for all classes of society. Services are mostly run by state
government owned transport corporations. However, after the
economic liberalization, many state transport corporations have
introduced various facilities like low-floor buses for the disabled and
air-conditioned buses to attract private car owners to help decongest
roads. Bangalore was the first city in India to introduce Volvo
B7RLE intra-city buses in India in January 2006.

Modal Options in Public Transport:

Many small Indian cities are served only by bus or Para transit
services for Inter City travel. Many medium and small cities with
populations less than 2 million and some larger cities with more than
2 million residents do not have any bus service. They are served only
by Para transit modes such as the auto-rickshaws, cycle-rickshaws,
jeeps, tempos, etc. As can be seen from figure 2.1, the modal share of
public transport is very small for small cities and increases with

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increase in the size of cities. On the other hand, the modal share of
walking and biking decrease with increase in city sizes.

Intermediate Public Transport and Para transit:

Most of the smaller cities are not served by buses at all. They rely on
a combination of Para transit modes like auto-rickshaws, cycle
rickshaws, jeeps and tempos. Auto rickshaws and cycle rickshaws
operate as taxis offering their passengers a personalized mode of
transport and taking them door to door (Tiwari 1999). In the 1990s an
important source of air pollution was the large and mostly old fleet of
auto rickshaws with highly inefficient, poorly maintained, polluting
2-stroke engines (Tata Energy Research Institute 1997). Since many
auto rickshaw drivers illegally adulterated their gasoline fuel with up
to 30% kerosene and 10% lubricating oil, the pollution they
generated was further increased (Kandlikar and Ramachandran
2000). Two-stroke engines were banned first in Delhi in 2001 and
then in the whole country and the old vehicles are being phased out.
However, auto rickshaws are not affordable to the poor, as auto
rickshaw fares are about 20 to 25 times more than the bus fare.
Passengers also often have to negotiate fares with the auto rickshaw
drivers who demand more fare than what the meter shows, citing
peak-hour traffic or other problems.
Jeeps and tempos, on the other hand, often operate illegally as stage
carriages as well. They are however unregulated and fix their own
fares. They can be seen at crowded intersections near market places
or movie theatres and will usually have a hustler who calls out the
direction in which the vehicle is going. Once they have enough
passengers, they leave. So there is no schedule or rules to their
operations and can be very confusing to non-residents.

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Auto-rickshaws and cycle rickshaws are slow moving vehicles and

are often accused of being the major cause of the congestion in
Indian cities, where there are no separate lanes for fast and slow
vehicles. Such diversity of roadway users also causes a range of
safety issues (Tiwari 1999). The modes have very different sizes,
manoeuvrability, capacities, speeds, and other operating
characteristics, generating a range of conflicts and accidents.

PART –C
INTRODUCTION TO CASH BUDGET

'Cash Budget'

Introduction to cash budget:

The cash budget contains an itemization of the projected sources and
uses of cash in a future period. This budget is used to ascertain
whether company operations and other activities will provide a
sufficient amount of cash to meet projected cash requirements. If not,
management must find additional funding sources.

The inputs to the cash budget come from several other budgets. The
results of the cash budget are used in the financing budget, which
itemizes investments, debt, and both interest income and interest
expense.

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The cash budget is comprised of two main areas, which are Sources
of Cash and Uses of Cash. The Sources of Cash section contains the
beginning cash balance, as well as cash receipts from cash sales,
accounts receivable collections, and the sale of assets. The Uses of
Cash section contains all planned cash expenditures, which comes
from the direct materials budget, direct labour budget, manufacturing
overhead budget, and selling and administrative expense budget. It
may also contain line items for fixed asset purchases and dividends to
shareholders.

If there are any unusually large cash balances indicated in the cash
budget, these balances are dealt with in the financing budget, where
suitable investments are indicated for them. Similarly, if there are
any negative balances in the cash budget, the financing budget
indicates the timing and amount of any debt or equity needed to
offset these balances.

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Meaning of cash budget :

A cash budget is an estimation of the cash inflows and outflows for a
business over a specific period of time, and this budget is used to
assess whether the entity has sufficient cash to operate. Companies
use sales and production forecasts to create a cash budget, along with
assumptions about necessary spending and accounts receivable. If a
company does not have enough liquidity to operate, it must raise
more capital by issuing stock or by taking on debt.

The cash budget consists of three parts:

(1) The forecast of cash inflows,
(2) The forecast of cash outflows, and

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(3) The forecast of cash balance.

Principal Objectives of Cash Budget:

Cash budget in a firm is prepared to accomplish the following
objectives:
 To project firm’s cash position in future period.

 To predict cash Principal Objectives of Cash Budget.

 To predict cash surplus or deficit for the ensuing months.

 To permit planning for financing in advance of need. By

indicating when cash will be required, the budget helps
the management to arrange in advance bank loans or other
short-term credits, to prepare for a sale of securities or to
make other preparations for new financing.

 To help in selection of proper source of financing cash

requirements of the firm.

 To permit proper utilisation of idle cash.

 To maintain adequate balance between cash and working

capital, sales, investments and loans.

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 To exercise control over cash expenditure by limiting the

spending of various departments surplus or deficit for the
ensuing months.

A cash budget is very important, especially for smaller companies. It

allows a company to establish the amount of credit that it can extend
to customers without having problems with liquidity. A cash budget
helps avoid a shortage of cash during periods in which a company
encounters a high number of expenses.
ESSENTIALS OF CASH BUDGET :

Cash Budget is A Must

The cash budget is necessary to see the amount of expected cash
inflows and outflows during a budget period. Keep in mind that there
is a big difference between the statement of cash flows and a cash
budget. The statement of cash flows looks backwards. It analyzes
what transpired in a previous accounting period. It is important to
know where the cash came from and where it went during that period
of time, but a cash budget on the other hand looks forward. It
estimates the amount of cash flow in future months or future periods,
so management can predict if sufficient funds will be available to
operate, service debt, purchase new equipment, or if there will be a
need to borrow funds to operate the business until the cash flow
returns to a level to sustain operations. Therefore, the cash budget is
a forward-looking statement.

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Need for Sufficient Cash:

A business must know if it is going to have sufficient cash to operate

and when cash will be available for needed purchases, loan
repayments, etc. Each component affecting cash flow must be
analyzed and estimated to determine when cash will be received or
paid. As with any budget component, it might be difficult to pinpoint
the exact amount of cash flow. The idea of the cash budget, as with
other budgets, is to have a direction of where the company is going
from a cash standpoint. Will sufficient cash be available to meet
current obligations or will some type of financing be required? That
is the question!

Making assumptions:

It is essential to make assumptions when creating your cash budget,

but it is also important to be aware of the assumptions you are
making, and adjust them as you go along, if necessary. When

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creating a cash budget you must project the availability of working

capital, which depends on sales volume as well as outside funding.
You must also project your upcoming expenses, which include fixed
expenses such as rent and business licenses, variable expenses such
as utilities and materials, and occasional, often unanticipated
expenses such as equipment repairs.

Evaluating Results:
Your cash budget is a tool to gauge your ability to meet expectations
and live up to predictions. But it is virtually inevitable that your day-
to-day financial activities will not precisely conform to your cash
budget simply because it is impossible to predict the future. The
processof comparing your actual income and expenses with the
numbers that you project in your cash budget provide you with a
fertile opportunity to evaluate your expectations and take a close look
at your assumptions.

Adjusting Expectations:
As you compare your actual business activities with the predictions
you made in your cash budget, you glean information that will be
useful in preparing future cash budgets and planning future business
activities. For example, it is natural to assume that your business will
grow as a result of making investments such as upgrading the
appearance of your product or expanding to new markets. But it is
impossible to know exactly what kind of effect these changes will
actually have on your sales volume. Comparing your cash budget
with your actual business activities provides you with information

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about the impact of this kind of change that will help with future
planning.

Utility of Cash Budget:

Cash budget is an extremely important tool available in the hands of

a finance manager for planning fund requirements and for controlling
cash position in the firm. As a planning device, cash budget helps the
finance manager to know in advance the cash position of the firm in
different time periods.

The cash budget indicates in which months there will be cash surfeit
and in which months the firm will experience cash drain and by how
much.

With the help of this information finance manager can draw up a

programme for financing cash requirements. It indicates the most
opportune time to undertake the financing process. There will be two
advantages if the finance manager knows in advance as to when
additional funds will be required. First, funds will be available in
hand when needed and there will be no idle funds.

In the absence of the cash budget it may be difficult to determine

cash requirements in different months. If cash required is not
available in time it will entail the firm in a precarious position. The
firm’s output is reduced because of imbalance in financial structure
and the rate of return consequently declines.

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If the firm is marginal, the decline in profits could lead to disaster.

Further, it would be difficult for the firm to meet its commitments
and would consequently lose its credit standing. A firm with a poor
credit standing stands little chance of success.

With the help of cash budget finance manager can determine

precisely the months in which there will be cash surplus.
Nevertheless, a reasonable amount of cash adds to a firm’s debt
paying power of the firm, holding excess cash for any period of time
is largely a waste of resource yielding no return. This will result in
the decline in profits.

The cash budget offsets the possibility of decline in profits because

the finance manager in that case will invest idle cash in marketable
securities. Thus, with the help of the cash budget, finance manager
can maintain high liquidity without jeopardizing the firm’s
profitability.

The cash budget, besides indicating cash requirements, reflects the

length of time for which funds will be needed. This will help the
finance manager to decide the most likely source from which the
funds can be obtained. A firm which stands in need of funds for a
short-term duration will use a source different from the one requiring
funds for a long time.

Bank loan is most appropriate source to cover temporary cash

requirements while permanent funds requirements are met by selling

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stock and bonds. If long-term cash requirements are met through

short-term funds, this will leave the company in considerable
financial predicament.

The firm will have to either renew the loans to make it long-term or
an entirely new loan must be negotiated. In either case the
negotiations are on a much shorter notice than the original loan and
the renewal or new loan will very likely be made with less favourable
terms. Further, planning for cash may engender the confidence of
suppliers of cash and credit to such an extent that they are more
likely to grant loans on easier terms.

Usually bankers are loath to lend to companies which do not follow

good managerial practices with respect to their financial
requirements. However, when they grant loans they usually charge
higher interest rates and place restrictive clauses in the loan contract.
When funds are obtained for period longer than necessary, the cost of
capital will go up resulting in decline in profits.

Cash budget is also conducive to the formulation of sound dividend

policy for the firm. As already stated, availability of adequate amount
of cash is necessary for dividend payments. A firm may experience
cash drain despite high earnings because of the fact that bulk of sales
was effected through credit.

Even if the firm has sufficient cash in hand it may not be able to pay
high dividends because of the need to repay loan or retire debt, to
carry inventories and to meet other.

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Why are Cash Budgets prepared?

A large number of transactions that take place in a firm generate a

‘flow of cash’. The flow of cash may be into or out of the firm. A
cash budget is prepared to show the cash inflows and outflows
expected in a budget period and net effect of these flows on cash
balances. Cash Budget enables management to obtain a preview of
the cash position of the firm.

Objectives of Preparing Cash Budget:

The objective of preparing cash budget is to enable the management
to meet its cash obligations as and when they fall due and to keep
idle cash to a minimum level. If at any time cash is much in excess of
requirements, this means the firm is holding a sterile asset. Shortfall
of cash may at times prove suicidal. It should also be clearly

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understood that the liquidity provided by cash holding is at the cost

of profits which would otherwise have been earned by investing cash
elsewhere.

Methods of preparing Cash Budget:

A cash budget can be prepared under any of the following methods:

(1) Receipts and Payments Method.

(2) Adjusted Profits and Loss Method.

(3) Balance Sheet Method.

1. Receipts and Payments Method:

This is the most simple and popular method of preparing cash

budget. This method is useful for preparing short term cash budget.
Under this method, all expected cash receipts and payments of
budget period are considered for preparing cash budget.
Accruals and adjustments are ignored while preparing the cash
budget by receipts and payments method. The cash budget starts with
the opening cash in hand and at bank. All expected cash receipts

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from various sources such as cash sales, cash collected from debtors,
dividends, interest on bonds, proceeds from sale of assets, bank
loans, etc., are added to the opening balance of cash Items of
expected cash payments such as cash purchases, payment to
creditors, payment of expenses, dividends, tax and purchase of fixed
assets, etc. whether on capital or revenue accounts, are deducted.

The excess of cash receipts (including opening balance) over cash

payments represents closing cash balance at the end of the period and
the excess of cash payments over cash receipts would indicate the
overdraft requirements.

2. Adjusted Profit and Loss Method:

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This method is usually followed in preparing long term cash budgets

and it provides lesser details than the receipts and payments method.
Under this method, profit and loss account is used as a basis for
making the cash forecast. This method is based on the analogy that
profit made during the period should increase the cash balance.
While preparing the usual profit and loss account, many items which
do not involve cash outlay such as depreciation, transfer to reserves,
fictitious assets written off, goodwill written off etc. are subtracted
from gross profit. But the amount so subtracted from profit remains
in the business. To arrive at the cash balance available at the closing
date, these items are added back to the net profit. A specimen of cash
budget based on this method is given below.

3. Balance Sheet method:

This method is also useful for preparing long term cash budgets.
Under this method, a budgeted balance sheet is prepared for a certain
future period showing all liabilities and assets except cash and bank
balances. The cash or bank balance is arrived at as the balancing
figure of the two sides of the balance sheet. If the liabilities side is
more than the assets side, the excess is taken as closing cash on hand
or at bank. If the assets side is heavier than the liabilities side, the
difference is considered as overdraft. The main defect of this method
is that it ignores the items of income and expenditure. The second
defect is that the exact cash position shall be known only when the
balance sheet is prepared at the end of the year.

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PART –B

INTRODUCTION TO FINANCE

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INTRODUCTION TO FINANCE
\

Finance is the life blood and nerve system of any business

organization. Just as circulation of blood is necessary in human body
to maintain life, finance is very essential to the business organization
for smooth running of the business. Financial management involves
managerial activities concerned with the acquisition of fund for
business purpose. the finance function deals with procurement  of
money taking into consideration today’s well as future needs of a

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business finance is required to purchase a machinery, row materials

to pay salaries and wages and also to meet day-to-day expenses of
the business.

A: DEFINITION OF FINANCE:

Finance is defined in 3 ways:

“It is defined as the task of providing funds needed by the enterprise

at reasonable terms”.

According to F.W. paish, finance may be defined as “the provision

of the money at time is wanted”. Thus it highlights central core of
finance function i.e., procurement of funds, but to confine it to his
aspects is a narrow view. Finance function is a broader function. It is
deeply concerned with the economics and effective use of funds.

John J. Hampton defined it as, “the management of the money flow

through an organization”. In the sense, it involves the proper custody
and authorized utilization of available funds. The third approach is
concerned with the financial decision making. It is related to
procurement of funds and as well as their effective utilization.

B: BUSINESS FINANCE:-

MEANING:

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Literally speaking, the term ‘business finance’ connotes finance of

business activities. It is composed of two words – business and
finance thus, it is essential  

                                                                                           

C:FEATURES OF FINANCE:

The main characteristics or features of finance are depicted below:

 Investment Opportunities: In Finance, Investment can be

explained as a utilisation of money for profit or returns.

 Profitable opportunities:  signify that the firm must utilize its

available resources most efficiently under the conditions of cut-
throat competitive markets.

 Optimal Mix of Funds: Finance is concerned with the best

optimal mix of funds in order to obtain the desired and
determined results respectively.

 System of Internal Controls: Internal controls are set of rules

and regulations framed at the inception stage of the
organisation, and they are altered as per the requirement of its
business.

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 Future Decision Making: A "Good Finance” is an indicator of

growth and good returns. This is possible only with the good
analytical decision of the organisation.

D:SCOPE OF FINANCE:

At the present state, the academic discipline of finance includes the

following specialized areas in its scope:

1. Public Finance: Like business organizations, government(local,

state or federal) raise and spend large sum of money, but unlike
business organizations, they pursue non-profit goals. To deal with
governmental financial matters, a separate and specialized field of
finance has emerged as public finance.

2. Securities and Investment Analysis: This area is of interest to

individuals and institutional investors. It covers mainly measurement
of risk and return on investment in securities.

3. Institutional Finance: Institutional finance deals with issues of

capital formation and the organizations that perform the financing
function of the economy. Therefore, it mainly studies saving and
capital formation and institutions involved in this process such as
banks, insurance companies, provident and pension funds, etc.

4. International Finance: International finance studies economic

transactions among nations, corporations and individually

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Internationally.  It is concerned with flows of money across

international boundaries.

5. Financial Management: Business firms face problems dealing

with acquisition of funds and optimum methods of employing the
funds. Thus, financial management studies financial problems in
individual firms, seeks low-cost funds and seeks profitable business
activities.

CHAPTER-2

RESEACH DESIGN

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TITLE OF THE STUDY

 “A study on the Cash budget on BMTC Shantinagar"

 STATEMENT OF PROBLEM:-

Budget is the one of the controlling instrument of management.

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It is a plan or estimate to be attended by a Company.The

problem is why budget goals in some cases fail to be realized it
is because of insufficient capital. there are numerous needs but
resources to satisfied there needs andvery scarce.

 OBJECTIVE OF STUDY:

 To identify the budget process at BMTC Shanti

Nagar LTD.
 To valid the budget standard of BMTC Shanti
Nagar LTD.
 To analyze the impact of budget on the
organization efficiency of BMTC Shanti Nagar.
 To offer conservative you off against of a few
suggestions on the topic.

 Operational definitions of the concept:

 Cash:-money in form of coins and notes rather
than cheques.
 Budget:-a financial summary of estimated income
and expenses of Government, business or household
for a given period of time, usually one year.
 Management:-The body of these in position of
administrative authority.
 Creditors:-person, group of organisation to when
money is owned.
 Debtor:- person, group or organisation that owns
money.

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 Surplus:     Amount left over after one has used all that
one needs amount by which money received is greater
than money spent.

 SCOPE OF THE STUDY:

 The research for the present study covers the scope for a
period of 4 years ranging from 2013-2017.
 The research for the study present study also covers the
annual reports of BMTC Shantinagar Bangalore for 4 years
only.

 RESEARCH METHODOLY:

 Research methodology is a way of systematically solving the

research problem. Research methodology deals with the
research design used and methods used to present the study.
 The research methodology is a scientific way of analyzing how
the research has to be done. In order to overcome the
findings, suggestions, and conclusions. There are 2 sources
collected from the organization.

 (A) Primary Data: - Primary Data is the first-hand information

collected from the organization. The research for the present
study had collected the primary data through Face to Face
interaction with the concern authority employee in the
organization.

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 (B) Secondary Data: - It is a data which is readily available. The

research for the present study had collected through various
sources like Annual reports of the company, Manuals,
Magazines, Websites, Various books related to the topic and
other reference were made.

 LIMITATIONS:

 Time constraint and lack of time.

 Limited application of budgetary system in the organization.

 Indepth research was not made.
 Data collection for analysis is restricted to the head office of
BMTC Shantinagar only.
 Analysis report are limited for 4 years only.
 Analysis is made with the help of secondary data from the
company.

 PLANOFANALYSIS:

Simple percentage is used in this method study The data

classified and tabulated for the purpose of analysis
percentage was calculated for the purpose of generalized

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Chart,graphs and diagram are drawn based on the tabulation

and inference were drawn based on conclusion.

CHAPTER SCHEME

Chapter 1: Introduction
This chapter includes the theoretical background of the study.
Part A: - About Industry- Brief history, Growth and Prospects.
Part B: - About Subject- Definition of the terms used, Importance
and other relevant aspects of the subject to the title of the study
Chapter 2: Research design of the study
 Title of the study
 Statement of the problem
 Objectives of the study
 Operational definition of the concept
 Scope of the study
 Methodology
 Limitations of the study
 Plan of analysis
 Chapter scheme

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Chapter 3: Company profile:

Inception, type, Nature, Board of Directors, Organization charts,
Business Operations, Product Service profile, Market share,
Competitors, Functional chart, Future prospects, Growth of the
Company.
Chapter 4: Data analysis and interpretation
 Title of the Table
 Data table (in figures)
 Analysis of table
 Interpretation of the table
 Graphical representation (visual presentation of the data)
Chapter 5: Summary of findings, conclusions and suggestions
This chapter begins with the objectives and scope of the study to case
the understanding of the reader. The Findings should be summarized
and presented in paragraph form, numbering each of the findings.
Chapter 6: Recommendations and suggestions
Drawn with direct reference to objectives of the study.
Find specific Recommendations and Suggestions to each of the
objective of Recommendations should be specific acceptable
practical and clear.

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Chapter 7: Appendices and Annexures

This copy of the Questionnaire and all other
Useful material collected from the organization may be annexed.
In case of finance topics, the copies of the financial statements of
three to five
Years are to be annexed.
Chapter 8: Bibliography
The reference made from Textbooks, Journals, newspapers and
Magazines are to be listed in this chapter. The order followed is
– Name of the Author, Edition of
The book name of the publisher. Place of publication and year of
publication.
The source of internet and Web sites may also be mentioned with
correct address of the site.

CHAPTER -3

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COMPANY PROFILE

 INTRODUCTION TO PUBLIC TRANSPORT

SERVICES:

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Public transport is a shared passenger service which is available for

use by general public. Public transport bus services are generally
based on regular operation of transit buses along a route calling at
agreed bus stops according to published public transport time table.

There are many indications of experiments with public transport in

Paris as early as 1662, there is evidence of a scheduled bus route
from market street in Manchester to Pendleton in Salford UK which
was started by JOHN GREENWORD in 1824.

Another claim for the first public transport system for general use
originated in Nantes, France in 1826.  

Stanislasbaudry, a retired army officer who had built public baths

using the surplus heat from his flour mill on the city’s edge, set up a
short route between a centre of town and his baths. The service
started on the place du commerce, outside the hat shop of M. omnes,
who displayed the motto omnes, Omnibus on his shop front. When b
Bawdry discovered that passengers were just as interested in getting
off at intermediate points as patronizing his baths, he changed the
routes focused. His new virtue ‘omnibus’ [ carriage for all] combined
the functions of the hired hackney carriage with a stage coach that
travelled a predetermined route from inn to inn, carrying passengers
and mail. His omnibus had wooden that ran down the sides of the
vehicle; passengers entered from the rear.

In 1828, Baudry went to Paris where he founded a company under

the name enterprise general des imnibus de Paris, while his son
Edmond bawdry founded similar companies in Bordeaux and in
Lyon

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A London newspaper on July 4 the 1829 that “the new vehicle, called
the omnibus, commenced running this morning from Paddington to
the city” operated by George shill beer.

The first omnibus service in New York began in 1829, when

Abraham bowery, an entrepreneur who had organised volunteer fire
companies, established a route along Broadway starting at Bowling
Green.

 PUBLIC TRANSPORT SERVICE IN INDIA :

Transport is an important part of India’s economy. Since the

economic liberalisation of the 1990s infrastructure development has
progressed rapidly; today there are variety of modes transport by
land, water and air. However, India’s relativity low GDP per capita
has meant that access to transport has not been uniform.

Public transport remains the primary mode of transport for most of

the population and India’s public transport systems are among the
most heavily used in the world.

India’s railway network is the 4th longest and the most heavily used
system in the world, transporting 8,224 million passengers and over
969 million tons of freight annually, as of 2012.

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Motor vehicle penetration is low by international standards, with

only 10.3 million cars on the nation's roads. In addition, only around
10% of Indian households own a motorcycle. Despite the number of
deaths caused by traffic is amongst highest in the world and is still
increasing. The automobile industry in India is currently rapidly
growing with an annual production of over 4.6 million vehicles, and
vehicle volume is expected to rise greatly in the future.

 B.M.T.C – A Profile   

ಬೆಂಗಳೂರುಮಹಾನಗರಸಾರಿಗೆಸಂಸ್ಥ

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The Bangalore metropolitan transport corporation, abbreviated as

BMTC, is a government unit that operates the public transport bus
service in Bangalore, India.
                 BMTC came to existence in the year 1997 as a result of
the bifurcation of Karnataka State Road Transport Corporation
(KSRTC) - then existing Parent Corporation. At the time of
inception, its operational jurisdiction was up to 20 kms beyond the
BMP (Bangalore Mahanagarapalike) limits which was later extended
to 25 kms. With the constitution of BBMP (Bruhat Bangalore
MahanagaraPalike), the BMTC’s jurisdiction was then automatically
got extended up to 25 kms beyond the outer limits of the newly
constituted body.

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BMTC was originally a private company called Bangalore Transport

Company (BTC) Limited Founded in 1940 catering to the entire city
with a fleet of 98 buses. Then government of Mysore took over the
city transport from the private company in 1956 and called it
Bangalore Transport service (BTS)

Slogan Moving you most economically

Bringing Bangalore to your doorstep
Parent K.S.R.T.C
Founded 1997
Headquarters Central Office, K H Road, Shanthinagar, Bangalore
Locale Bangalore
Service area Bangalore urban and Bangalore rural
Service type Local, limited-stop, express, and BRT bus service
Fleet 6,390 (November 27, 2017)
Daily ridership 4,910,000 (November 27, 2017)
Operator Government of Karnataka
Website WWW.mybmtc.com/

On august 15, 1997 Bangalore Metropolitan Transport Corporation

(BMTC) was incorporated bifurcating from existing Karnataka State
Road Transport Corporation (KSRTC) in which it consisted of two
divisions headed by director (BTS) since 1993. Prior to that since
1961 it was under MSRTC/ KSRTC.
The amended KSRTC Act 1892 provides for the management of the
corporation by board of directors. The board of the Bangalore
Metropolitan transport Corporation consists of 11 official directors

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and 6 non- official directors. The government of Karnataka appoints

the official Directors representing the state government and also non-
official directors representing central government of India
Bangalore Metropolitan Transport Corporation (BMTC) is a
government agency that operates the public transport bus service in
Bangalore, India. It has the highest number of Volvo buses operated
by a public transport company in India.

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 BUS TRANSPORTAION IN INDIA :

Public transport is the predominant mode of motorised local

travelling cities. This is predominantly by road, since commuter rail
services are available only in the seven metropolitan cities of
Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, and Pune,
while dedicated city bus services are known to operate in at least 25
cities with a population of over one million.  The share of buses is
negligible in most Indian cities as compared to personalised vehicles,
and two- wheelers and cars account for more than 80% of the vehicle
population in most large cities.

Buses take up over 90% of public transport in Indian cities and serve
as cheap as and convenient mode of transport for all classes of
society.

Servicers are mostly run by state government owned transport

corporations. However, all those got state transport corporations have
introduced various facilities like low-floor buses for the disabled and
air-conditioned buses to attract private car owners to help decongest
road .Mumbai introduced air conditioned buses in 1998, Bangalore
city was the first in India to introduce Volvo B7RLE intra-city buses
in India January 2005.

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Bangalore is the first Indian city to have an air-conditioned bus stop,

located near Cuban Park. It was built by Airtel.  

 BUS RAPID TRANSIT SYSTEM:

Bus rapid transit systems although quite recent, exist in several cities
including Pune, Ahmedabad, Jaipur, Rajkot, Surat, Bhopal, and
Indore.

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 BUS SERVICES IN KARNATAKA :

The public bus transport in Karnataka is managed by the Karnataka

State Road Transport Corporation (KSRTC). It was set up in 1961
with the objective of providing adequate, efficient, economic and
properly coordinated road transport services. It operates 5100
schedules using 5400 vehicles covering 1.95 million kilometres and
an average of 2.2 million passengers daily. About 25000 people are
employed in KSRTC. For better management of public transport,
KSRTC was bifurcated into three Corporations viz., Bangalore
Metropolitan Transport Corporation, Bangalore on 15th Aug 1997,
North-west Karnataka Road Transport Corporation, Hubballi on 1st
Nov 1997 and North-East Karnataka Road Transport Corporation,
Gulbarga on 1st Oct 2000. Buses run by private persons are allowed
to operate in few districts of Karnataka. Omni bus and Maxi cabs are
also other modes of road transportation in the state; especially where
KSRTC does not buses or run very few.  

Namma Metro (Our Metro in Kannada), also known as Bangalore

Metro, is a rapid transit system for the city of Bangalore, Karnataka,
India. The agency responsible for its implementation is the Bangalore
Metro Rail Corporation Ltd (BMRCL). The first stretch between
Baiyyappanahalli and M.G. Road was inaugurated on 20 October
2011.

Transport demand in India has been growing rapidly. In recent years

this demand has shifted among transport modes, mainly to the
advantage of road transport. About 60 per cent of freight and 87 per
cent passenger traffic is carried by road. Although National
Highways constitute only about 2 per cent of the road network, it

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carries 40 percent of the total road traffic. Easy availability,

adaptability to individual needs and the cost savings are some of the
factors which go in favour of road transport. Road transport also acts
as a feeder service to railway, shipping and air traffic. The number of
vehicles has been growing at an average pace of around 10 per cent
per annum. The share of road traffic in total traffic has grown from
13.8 per cent of freight traffic and 15.4 per cent of passenger traffic
in 1950- 51 to an estimated 62.9 per cent of freight traffic and 90.2
per cent of passenger traffic by the end of 2009-10. The rapid
expansion and strengthening of the road network, therefore, is
imperative, to provide for both present and future traffic and for
improved accessibility to the hinterland. In addition, road transport
needs.

 MODEL OPTIONS IN PUBLIC TRANSPORT:

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Many small Indian cities are served only by bus or Para transit
services for Inter City travel. Many medium and small cities with
populations less than 2 million and some larger cities with more than
2 million residents do not have any bus service. They are served only
by Para transit modes such as the auto-rickshaws, cycle-rickshaws,
jeeps, tempos, etc. As can be seen from figure 2.1, the modal share of
public transport is very small for small cities and increases with
increase in the size of cities. On the other hand, the modal share of
walking and biking decrease with increase in city sizes.

 INTEREMDIATE PUBLIC TRANSPORT AND PARA

TRANSIT:

Most of the smaller cities are not served by buses at all. They rely on
a combination of Para transit modes like auto-rickshaws, cycle
rickshaws, jeeps and tempos. Auto rickshaws and cycle rickshaws
operate as taxis offering their passengers a personalized mode of
transport and taking them door to door (Tiwari 1999). In the 1990s an
important source of air pollution was the large and mostly old fleet of
auto rickshaws with highly inefficient, poorly maintained, very
polluting 2-stroke engines (Tata Energy Research Institute 1997).

Since many auto rickshaw drivers illegally adulterated their gasoline

fuel with up to 30% kerosene and 10% lubricating oil, the pollution
they generated was further increased (Kandlikar and Ramachandran
2000). Two-stroke engines were banned first in Delhi in 2001 and
then in the whole country and the old vehicles are being phased out.
However, auto rickshaws are not affordable to the poor, as auto
rickshaw fares are about 20 to 25 times more than the bus fare.

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Passengers also often have to negotiate fares with the auto rickshaw
drivers who demand more fare than what the meter shows, citing
peak-hour traffic or other problems.
 
Jeeps and tempos, on the other hand, often operate illegally as stage
carriages as well. They are however unregulated and fix their own
fares. They can be seen at crowded intersections near market places
or movie theatres and will usually have a hustler who calls out the
direction in which the vehicle is going. Once they have enough
passengers, they leave. So there is no schedule or rules to their
operations and can be very confusing to non-residents.  

Auto-rickshaws and cycle rickshaws are slow moving vehicles and

are often accused of being the major cause of the congestion in
Indian cities, where there are no separate lanes for fast and slow
vehicles. Such diversity of roadway users also causes a range of
safety issues (Tiwari 1999). The modes have very different sizes,
manoeuvrability, capacities, speeds, and other operating
characteristics, generating a range of conflicts and accidents.

 HISTORY OF BMTC:

The BMTC is one of the three Subsidiaries of Karnataka State Road

Transport Corporation, in the context of the city's expansion in the
year 1997; Bangalore Transport Service (BTS) was formed. Later
Bangalore Transport Service (BTS) became Bangalore Metropolitan
Transport Corporation. And the colour scheme of BTS was also

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changed from red to a blue and white combination. For this day
BMTC still remains a division of KSRTC. The profits earned by
BMTC are used to cover the losses from the NWKRTC and
NEKRTC divisions of KSRTC.Indian actor superstar Rajinikanth
began acting in plays while working in the Bangalore Transport
Service as a bus conductor .

BMTC’s motto has been to provide an affordable, reliable, safe,

efficient, comfortable and self- sustaining public transport to all
sections of society-men, women, children, and the aged and
differently-able in and around Bangalore Metropolis with due
support and co-operation of its patrons- the travelling public.

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The secret of its success is in increasing the passenger trips everyday

by a wide range of customer base. In an effort to modernize its
services for commuters comfort, BMTC strives to strengthen
information system and improve processes through infrastructure
development, user friendly interchange facilities, apart from its core
activities, which include fare structuring, route networks
optimization, planning and monitoring.

 VISION AND MISSION :

VISION:

   The Bangalore Metropolitan Transport Corporation is the sole

public bus Transport  provider for Bangalore, serving urban, sub-
urban and rural area. BMTC is committed to provide quality, safe,
reliable, clean and affordable travel. The testimony of its success lies
in increasing passenger trips every day by a wide range of customer
base. In an effort to modernize its services for commuter comfort,
BMTC strives to strengthen information system and improves
processes through introduction of Intelligent technology
solution(ITS), makes capacity enhancement through infrastructure
development, user- friendly interchange facilities, fleet up gradation
and augmentation, apart from its core Activities, which includes fare
structuring, route network optimization, planning and monitoring,
BMTC reaches far and wide, in every nook and corner of the city,
making public transport an attractive travel choice for everyone.

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BMTC’s stronghold in the area of public transport in Bangalore is a

testimony to its adoption of sound management, HR, Quality and
Environmental policies and strong support from the government of
Karnataka and esteemed passengers.
   
MISSION:

 Provide people-centred (quality, efficient, integrated and safe

services).

 Commuter responsive service planning and promotion.

 Optimize resources and build capacity.

 Adopt environment-friendly and sustainable practices.

 Strengthen commuter feedback mechanism.

 Modernize and maintain Zero breakdown fleet.

 Evolve effective mechanism to monitor service performance.

 Conduct safety training, performance audits awareness for

stakeholders.

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 Increase Commercial revenue through monetizing land,

Building& buses.

 Increase Efficiency in operations and administration.

 Ensure inter-agency coordination and Multi-model integration.

 Formulate and enforce police measures for sustainability of the

service provision.

 Implement Intelligent Transport System to improve the quality

of service provision.

 Extend travel concession to the weaker sections of the society.

 Act as an agent for cultural synthesis and national integration.

 Promote research on urban transport.

 FACILITIES PROVIDED BY BMTC:

 Renewals of bus pass facilities through the internet.

 Computerized pass issues system at bus stations.

 Purchases of monthly pass through internet.

 Introduction of electronic ticketing machine.

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 Discounting for schools and colleges.

 Hop in – Hop off to promote tourism in Bangalore.

 QUALITY POLICY :

    BMTC strives to provide commuter friendly services and is

committed to ensure economically sustainable, Efficient, Clean, and
Timely, courteous, safe and commuter education with the
involvement of suppliers and eco-friendly purchasing policy is also
aim.
The following quality objectives it wishes to achieve through the
policy;
 Adopting best HR practices.

 Achieving high operational Efficiency.

 Fostering appropriate Management Principles.

 Practicing credible commuter Relationship Management.

 AREAS OF OPERATION:

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BMTC is the nationalized public transport unit. BMTC has a lead,

as it is the only bus cooperation within the Bangalore city limits,
to ferry more than 4.95 million commuters per annum. It has a
fleet of 6720 buses covering daily service of 12.70 lakhkms and
has 6691 number of schedules. In a day, BMTC operates 502 city
and 1887 sub-urban routes, running 12.96 lakhkms and making
79,768 trips. It has a total of 41 depots, 52 bus station and 36,062
staff employed.

The area of operation is expanded from 3257sq.km in view of

greater Bangalore. It is highly competitive in its business area as it
is able to accumulate the required resources and provide variety of

Services to its customer. It also takes up civil engineering,

infrastructural and developmental words like it builds staff
quarters, depots, bus stations, Bus shelter and other infrastructural
works. It also provides automatic insurance to its commuters in
case of any accidents.

As on 31-03-2017, the corporation has operated its buses on 2430

routes against 24442 routes operated during the year 2017.The
total route kilometres were 57081.6.The average route length
increased from 23.23 kilometres as at end of the year 2017.
Detailed of number of routes, total kilometres, average route
length, number of schedule and daily scheduled kilometres as on
31-03-2017 as compared to the position as on 31-3-2016are given
in the table.

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Operational area of BMTC

Sln Factors As on 31-03- As on 31-03-

o 2016 2017
1 No of routes 2442 2430
2 Route kilometres 56725.0 570381.6
3 Average Route 23.23 23.49
length(kms)
4 No of schedules 5937+12(p) 6189
5 Daily schedule kms 1382273.9 1437158.1

Source; Annual Administration Report, BMTC (2012-2013)

The number of schedules operated increased from 5949 (as on 31-
03-2016) to 6189 (31-03-217. The daily scheduled kilometre
programmed for operation increased to 1437158.1 (as on 31-03-
2017) from 1382273.9 (as on 31-03-2016).

 Environmental Policy:

  BMTC is committed to providing environmental friendly

practices through

 Involving of relevant stakeholders in planning and review of

its EMS.

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 Motivate & train employees to contribute proactively for

protecting the environment.

 Adopt environment friendly transport operations through

technology up gradation and pollution prevention measures
on a continuously basis.

 Adopt and practices resources optimization measures on a

continuous basis.

 EMPLOYEES WELFARE:

 Simplification of medical rules for employees.

 Housing plots for employees.

 Medical incapacitation fund for distressed employees.

 Insurance coverage for employees.

 ISO 14001 Initiatives through EMPRI.

 EMPLOYESS BENEFIT:

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 All BMTC and KSRTC Class 111 and IV employees are issued
free passes to report to the place of work and return to their
residents as per industrial truce settlement.

 A free pass without restriction of distance is issued to all

BMTC employees and their families once a year for TRAVEL
TO ANY place in BUSES operated by KSRTC, NWKRTC,
and NEKRTC.

 All schools and college going children of BMTC employees are

issued free passes to attend school and college in city and
suburban areas of Bangalore to travel between two specific
points.

 Organization structure:

 An organization structure consists of activities such as task

allocation, coordinating and supervision, which are directed
towards the achievement of organization aims. It can be
considered as the viewing glass or perspective through which
individual see their organization and its environment.

An organization can be structured in many different ways,

depending on their objectives.

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ORGANISATION STRUCTURE OF BMTC

            

         

                                

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BOARD OF DIRECTORS OF BMTC
 Sri  Ramalingareddy, CHAIRMAN
Hon’ble Transport Minister,
Govt of Karnataka, VikasaSoudha,
Bangalore-560 001.
Sri. P.N. Srinivasachary, IAS., DIRECTOR
Principal Secretary to Govt, Transport Dept,
M.S. Building, Bangalore-560 001..

Sri. Anjum Parwez, IAS., DIRECTOR

Managing Director,
Bangalore Metropolitan Transport
Corporation,
Central Offices, K.H.Road, Shanthinagar,
Bangalore-560 027.
Sri. S.R. Umashankar, IAS., DIRECTOR
Secretary to Government (Expenditure),
Finance Department
VidhanaSoudha, Bangalore-560 001.
Sri. N. Manjunatha Prasad, IAS., DIRECTOR
Managing Director,
Karnataka State Road Transport Corporation,
Central Offices, K.H.Road, Shanthinagar,
Bangalore-560 027.
Sri. Shambhat, IAS., DIRECTOR

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Commissioner,
Bangalore Development Authority, T.
Chowdaiah Road,
Kumara Park West, Bangalore-560 020.

 INTELLIGENT TRANSPORT SYSTEM (ITS)

   The BMTC’s Intelligent Transport system (ITS) was planned to

lunch in 2013. The 690 million (US$11 million) system will set up
electronic ticketing machines(ETMs), which allow the swiping of
smart cards for fare collection.

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   The smart cards can be used on KSRTC buses, the Namma metro,
and also for debit and credit transactions. The co-branded cards, by
the issuing bank and BMTC, are also debit or credit cards.

The IT’S also includes vehicles tracking systems and passenger

information systems that provide real time information to passenger
regarding the arrival of buses. All BMTC buses will be fitted with
GPS tracking, which will allow the monitoring of deviation in routes,
and also more accurate prediction of when buses will arrive at a
station. This information will be relayed to commuters through LED
display boards that will be installed in 35 bus stations in the city. As
of january2014, no further deadline has been set.

The project consists of Automatic Vehicle Location System, Real

time .Revenue Collection System and Passenger Information System.
The requirement study was completed including the Geo-coding of
the bus stops.

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 PRODUCTS AND SERVICES:

A BMTC Volvo bus

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A BMTC UD bus

A BMTC Corona bus

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The following are the special services apart from ordinary services
run by BMTC:

1. Suvarna: Similar fare to ordinary buses serving important

feeder routes, painted in red or green/white scheme
2. Pushpak: Single door buses with coffee colouring scheme (no
service now)
3. BIG 10: Suvarna class buses with special green and bottle green
livery plying on 12 major corridors towards the central
commercial district. These buses are numbered with a G prefix.
4. BIG Circle: Suvarna class buses with special white collared
BIG Circle livery. These buses ply on inner and outer ring
roads. Buses are numbered with a C prefix or a K prefix.
5. AtalSarige: Low fare buses painted with Indian tri-colour
livery.[8][9]

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6. Vajra: Air conditioned Volvo buses painted in red livery

running on important routes serving the IT companies and
major residential areas.
7. VayuVajra: Green coloured Volvo buses operated in 12 routes
connecting to Kempegowda International Airport. Free Wi-Fi
access is provided to the commuters in these buses.[10]
8. Marco polo AC and Corona AC: Air conditioned buses with
lower fare than Vajra services plying on select routes.(Marco
polo AC no service now & Corona AC same fare as Volvo)
9. Metro Feeder: Special buses running on 18 routes as feeder
network to the Metro stations
10. Hop on Hop Off: This service was introduced for
sightseeing in Bangalore. It covers a route connecting about
twenty landmarks of great historic, religious and scientific
significance (no service now).

 OTHER SERVICES:
BMTC has also introduced Mercedes Benz buses on a trial basis.
[11] BMTC has also introduced buses powered by solar energy on
trial basis in Bangalore. [12]

The BMTC announced that it would acquire 150 electric buses by

September 2017. The project will be funded by the Union
Government's Faster Adoption and Manufacturing of Electric
Vehicles scheme of National Electric Mobility Mission Plan 2020.
[13]

 Big trunk and feeder service:

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BMTC providing transport service to facilitate general public in

sub-urban areas of Bangalore with different route number from
major bus stations kempegowda bus station, shivajinagar bus
station and K.R Market bus station. In this system sub-urban
commuter are provided with only 3 to 4 trips in a day and there is
acute shortage of trips during rest of the days.
         To overcome these problems and with a view to provide
continued services to the city, BMTC has introduced to operate
services between major bus stations and feeder services from
highly potential areas to surrounding places at higher frequency.

COMPETITORS INFORMATION

a. Government has a public Transportation is necessary

instrument for any society for transit. And to take care of such
public transportation services facilities. BMTC is more or less like
a monopoly in the market. Reason being the private transport
providers are very less in number and are not efficient in the
market.

b. For the monopolistic state in the market today. BMTC has its
own legacy for it. Right from incorporation in1940 when the
government of Mysore took over the company and merged it
with Mysore state transport corporation with just 99 buses
naming it as Bangalore transport service (BTS)

c. Bangalore Transport service has no competitors for nearly six

decades from its inception. It has been a standardized and the
best urban transport provider for Bangalore and is still largely
seen in the market.

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d. Although BMTC is being in the state of monopoly, Due to

inefficient private players BMTC rules the Bangalore public
transport industry. It stands unique with its competitors. As it is
under the operation of the government, it offers different
discounts for different segments.

BUS DAY:

    Introduced on 4 February 2010. It is an event calling all the citizens

of Bangalore to use public transport. The idea behind Bus Day is to
observe .The changes which can be brought in the city in trying to
respect Environment, Traffic Situation Health of individuals
Perception. The
  Bangalore metropolitan Transport Corporation (BMTC) campaigned
for this daylong event with support from the traffic police, Information
Technology companies and their employees, and members of praja.in
(a web portal for civic activism). Since then the 4 th of every month is
observed as a “BUS DAY”.
   

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SMART CARD

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BMTC unveiled a smart card for its bus services for the first time in
June 2016. The company introduced smart cards on trial-basis on
BMTC Bus No. 335 operating between Majestic and Kadugodi bus
stations in March 2017.[15] Apart from serving as an identification
document, the smart cards can be used to purchase bus tickets and
also swiped at point-of-sale (POS) enabled merchant establishments.
The card costs RS.5 (7.7¢ US) and can be recharged for up to Rs
10,000 (US$150). Recharges higher than Rs 10,000 require the
customer to provide identification. According to Axis Bank, the
BMTC's partner in the project, the smart card is India's "first open
loop EMV contactless smart card". The cards "open-loop" structure
allows other agencies to integrate their smart card schemes by
adopting the standards of the BMTC smart card.

AWARDS OR ACHIEVEMENT

2016-2017
Launch of new airavat bus

    
   2013-2014

 Greentech Foundation Award 2013 in the category of Public

Utility Services Organization for Outstanding achievement in
safety management.
 ASRTC Productivity Award for Highest Tyre Performance-
urban services for the year 2011-12

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 60th UITP Award for Customer Service Innovation for

"Innovative Initiative on Customer need based portion of
services and development of transport infrastructure in
Bangalore
Metropolitan Area", May 2013.
 ASRTC Productivity Award for Minimum operational cost-
urban services for the year 2011-12.

          2012-13
 India Transport award -2012 by ministry of Transport and
Highway
Government of India.
 ASRTU Award for maximum improvement in tyre
performance in city services during 2010-2011.

           2011-2012
 International UTP – ITF Award for outstanding innovation on
public transport for the year 2010-2011 chief minster’s annual
ratana award.
 Safety minister trophy for the state road transport undertaking
with lowest accident rate for the year 2011 by institute of
engineers for innovation safety measures.

          2009-2010
 Prime minister civil service excellence award 2010.
 Chief Minister’s annual Award.

       2006-2008

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 International gold star millennium award, Bangkok

 Award for fuel efficiency for the year 2005-2006
 Citizen extra ordinate award 2008

             2005-2006
 Golden peacock special commendation certificate for the year
2005.
 Tire performance award for the highest performance for the
year 2003-2004.

    2003-2004
 Transport ministry trophy for state road transport undertaking
with
Lowest accident record for period of 1999-2002.
 Award for the lowest operation cost (urban area)

       2001-2002
 Road safety award 2001 by ASTRU
 Minimum operation cost award 2001 by ASRTR

SWOT ANALYSIS

SWOT analysis is a very popular tool, quick and easy to learn. Swot
Analysis is a strategic planning method used to evaluate the
strengths,
Weaknesses, opportunities & threats involved in a project or in a
business venture. It involves specifying the objective of the business

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venture or project and identifying the internal and external

environment is an important part of the strategic planning process.
Environment factors internal to the firm usually can be classified as
strengths (S) or weaknesses (w), and those external to the firm can be
classified as opportunities (O) or threats (T)
Such an analysis of the strategic environment is referred to as a
SWOT analysis

STRENGTHS;

 The use of standard quality materials to get standard quality

output.
 It also skilled and trained labor force to support the
infrastructure and the needs of transport services.
 Encouraging the employees by rewarding them by award for
their good performance of work.
 Government support.

WEAKNESSES;

 Absenteeism of drivers.
 Sometimes strikes and quarrels done by worker.
 Amendment of several nationalized schemes by the allow
operation of services by private operators,
 Harsh driving of the accidents caused by the drivers at BMTC
has become a problem of concern and hence being a weakness
to the firm.

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 Updating to the changing technology becomes necessary and

employees have to adapt to the changes in technology and the
work, or otherwise it will be a big blow to the organization.

OPPORTUNITIES

 Establishing new depots, bus stations at various places.

 BMTC has great opportunity to cause public to use their
services influenced by fluctuating fuel prices and risk of road
accidents.
 Value addition is another aspect wherein BMTC can keep
adding a sense of value to travelling public.
 Computerizing of the entire department for better services.

THREATS

 Cost of fuel and lubricants increased.

 Non implementation of modern technology.
 There is an increase in the number of Two- Wheelers and car-
pooling due to traffic congestion.
 Marketing strategies should be adopted at BMTC and  hence
should starting promoting itself, as it is a must for any
organization to survive and to make public more aware what is
being offered to them.

MAJOR BUS STATIONS:

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1. Kempegowda Bus Station: This is right opposite the city railway

station. Bus services are available to the entire city from here. A
depot is present here within the station.

2. K. R. Market: Another important bus station located in an area

with many private bus services. Buses are available to all parts of
Bangalore besides far off Anekal and Hosur.
3. Shivajinagar: Located in one of Bangalore’s commercial areas
and about 2 km from Bangalore Cantonment Railway Station.

4. Shantinagar: Near the Central office of KSRTC and BMTC.

BMTC Depot 2 and Depot 3 are located here. It is well connected to
South and South East Bangalore and the Majestic and Shivajinagar
areas.

5. MCTC: Located on Mysore road. Well connected to Mysore road,

Vijayanagar and Chamrajpet apart from Market and Majestic
(Kempegowda Bus Station).

6. Banashankari Bus Station: This is another important bus

station located on Kanakapura Road, close to the Outer Ring Road. It
is well connected to all the areas on the inner and outer ring road.
201, 500,501, 600 are the important routes which start/pass through
Banashankari. From K R market, all buses between 211 and 217B
pass through Banashankari. The TTMC was inaugurated on 4
December 2011.

7. Jaynagar 4th block Bus station: this is located in jayanagar 4th

block near the shopping complex. It is a very busy bus station

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because of jayanagar being a great shopper's attraction.

CHAPTER-4
Data analysis
And
Interpretation

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CASH BUDGET OF BMTC OF 4 YEARS

(Rs. In lakhs)
PARTICULAR 2014 2015 2016 2017
OPENING 5312.25 86322.07 202306.49 314559.06
BALANCE
RECEIPTS
CASH SALES 176557.36 199411.06 191802.62 177047.15
DEBTORS 2288.74 4184.98 2394.48 2967.77
DIVIDEND - - - -
INCOME
ISSUEOFSHARES 10459.48 10459.48 10459.48 10459.48

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TOTAL 189305.58 214055.52 204656.58 190474.40

RECEIPTS

PAYMENTS
CASH 32.67 4.28 15.23 -
PURCHASE
CREDITORS - - - -
SALARIES & 73238.66 86593.67 87477.26 100777.80
WAGES
DIVIDEND - - - -
PAYABLES
CAPITAL 34927.33 11363.48 4806.03 23598.81
EXPENDITURE
TAXES 97.10 109.67 105.49 92399.40
TOTAL 108295.76 98071.10 92404.01 216776.01
PAYMENTS

CLOSING 86322.07 202306.49 314559.06 288257.45

BALANCE

TABLE NO .1
SHOWING SALES OF BMTC

YEARS AMOUNT IN ABSOLUTE ABSOLUTE

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RUPEES CHANGE CHANGE IN %

BASE YEAR
176557.36 - -
2013-14

2014-15 199411.06 22854.24 12.94%

2015-16 191802.62 15245.26 8.63%

2016-17 177047.15 489.79 0.27%

ANALYSIS
From the above table. It has been observed that the sales in the year
2014-2015 increased by 12.94% compared to 2013-2014.In the year
2015-2016 it has been decreased to8.63% and in the year 2016-2017
it has been decreased to 0.27% compared to 2015-2016.

GRAPH-1

GRAPH SHOWING SALES OF BMTC

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2016-17 2016-17; 0.27%

2015-16 2015-16; 8.63%

ABSULATE CHANGE IN

2014-15 2014-15; 12.94%

BASE YEAR 2013-14 BASE YEAR 2013-14; 0.00%

INFERENCE
From the above graph 1,it is clear that the sales in the year 2014-
2015 increased by 12.94% compared to 2013-2014.In the year 2015-
2016 it has been decreased to8.63% and in the year 2016-2017 it has
been decreased to 0.27% compared to 2015-2016.

TABLE 2
SHOWING DEBTORS OF BMTC

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AMOUNT IN ABSOLUTE ABSOLUTE

YEARS
RUPEES CHANGE CHANGE IN %

BASE YEAR
2288.74 - -
2013-14

2014-15 4184.98 1896.24 82.85%

2015-16 2394.48 105.74 4.62%

2016-17 2967.77 679.03 29.66%

ANALYSIS
From the above table, It has been observed that the debtors in the
year 2014-2015 increased by 82.85% compared to 2013-2014.In the
year 2015-2016 it has been decreased to 4.62% and in the year 2016-
2017 it has been increased to 29.66% compared to 2015-2016.

GRAPH-2
GRAPH SHOWING DEBTORS OF BMTC

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2016-17; 29.66%; 25%

BASE YEAR 2013-14
2015-16; 4.62%; 4%
2014-15
2014-15; 82.85%; 71% 2015-16
2016-17

INFERENCE
From the above graph, it is clear that the debtors in the year 2014-
2015 increased by 82.85% compared to 2013-2014.In the year 2015-
2016 it has been decreased to 4.62% and in the year 2016-2017 it has
been increased to 29.66% compared to 2015-2016.

TABLE 3
SHOWING ISSUE OF SHARES

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AMOUNT IN ABSOLUTE ABSOLUTE

YEARS
RUPEES CHANGE CHANGE IN %

BASE YEAR
10459.48 - -
2013-14

2014-15 10459.48 0 0%

2015-16 10459.48 0 0%

2016-17 10459.48 0 0%

ANALYSIS
From the above table, It has been observed that the issue of shares in
all the years are constant.

GRAPH 3
SHOWING ISSUE OF SHARE

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absolute change IN %

absolute change

1 1 1 1

INFERENCE
From the above Graph, It is clear that the issue of shares in all the
years are constant.

TABLE 4
SHOWING CASH PURCHASE

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AMOUNT IN ABSOLUTE ABSOLUTE

YEARS
RUPEES CHANGE CHANGE IN %

BASE YEAR
32.67 - -
2013-14

2014-15 4.28 28.39 86.89%

2015-16 15.23 17.44 53.38%

2016-17 0 32.67 100%

ANALYSIS
From the above table, It has been observed that the cash purchase in
the year 2014-2015 increased by 86.89% compared to 2013-2014.In
the year 2015-2016 it has been decreased to 53.38% and in the year
2016-2017 it has been increased to 100% compared to 2015-2016.

GRAPH-4
SHOWING CASH PURCHASE OF BMTC

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absolute change in %
2016-17; 100.00%
2014-15; 86.89%

absolute change
2015-16; 53.38%

2013-14; 0.00%

INFERENCE
From the above graph, it is clear that the cash purchase in the year
2014-2015 increased by 86.89% compared to 2013-2014.In the year
2015-2016 it has been decreased to 53.38% and in the year 2016-
2017 it has been increased to 100% compared to 2015-2016.

TABLE 5
SHOWING SALARIES OF BMTC

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AMOUNT IN ABSOLUTE ABSOLUTE

YEARS
RUPEES CHANGE CHANGE IN %

BASE YEAR
73238.66 - -
2013-14

2014-15 86593.67 13355.01 18.23%

2015-16 87477.26 14238.60 19.44%

2016-17 100777.80 27539.14 37.60%

ANALYSIS
From the above table, It has been observed that the salaries in the
year 2014-2015 increased by 18.23% compared to 2013-2014.In the
year 2015-2016 it has been increased to 19.44% and in the year
2016-2017 it has been increased to 37.60% compared to 2015-2016.

GRAPH-5
SHOWING SALARIES OF BMTC

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2016-17; 37.60%

2015-16; 19.44%
2014-15; 18.23%
Series 3

BASE YEAR 2013-14; 0.00%

BASE YEAR 2013-14 2014-15 2015-16 2016-17

INFERENCE
The graph 5 showing that the salaries in the year 2014-2015
increased by 18.23% compared to 2013-2014,In the year 2015-2016
it has been increased to 19.44% and in the year 2016-2017 it has
been increased to 37.60% compared to 2015-2016.

TABLE- 6
SHOWING CAPITAL EXPENDITURE

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AMOUNT IN ABSOLUTE ABSOLUTE

YEARS
RUPEES CHANGE CHANGE IN %

BASE YEAR
34927.33 - -
2013-14

2014-15 11363.48 23563.85 67.46%

2015-16 4806.03 30121.30 86.23%

2016-17 23598.81 11328.52 32.43%

ANALYSIS
From the above table, It has been observed that the capital
expenditure in the year 2014-2015 increased by 67.46% compared to
2013-2014.In the year 2015-2016 it has been increased to 86.23%
and in the year 2016-2017 it has been decreased to 32.43% compared
to 2015-2016.

GRAPH-6
SHOWING CAPITAL EXPENDITURE

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absolute change in %

2016-17. 2016-17.; 32.43%

2015-16 2015-16; 86.23%

absolute change in %

2014-15 2014-15; 67.46%

base year 2013-14 base year 2013-14; 0.00%

INFERENCE
The above graph 6 showing that the capital expenditure in the year
2014-2015 increased by 67.46% compared to 2013-2014.In the year
2015-2016 it has been increased to 86.23% and in the year 2016-
2017 it has been decreased to 32.43% compared to 2015-2016.

TABLE 7
SHOWING TAXES OF BMTC

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AMOUNT IN ABSOLUTE ABSOLUTE

YEARS
RUPEES CHANGE CHANGE IN %

BASE YEAR
97.10 - -
2013-14

2014-15 109.67 12.57 12.94%

2015-16 105.49 8.39 8.64%

2016-17 92.40 4.7 4.84%

ANALYSIS
From the above table. It has been observed that the taxes in the year
2014-2015 increased by 12.94% compared to 2013-2014.In the year
2015-2016 it has been decreased to 8.64% and in the year 2016-2017
it has been decreasedto 4.84% compared to 2015-2016.

GRAPH-7
SHOWING TAXES OF BMTC

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2014-15; 12.94%

2015-16; 8.64%

Series 3

2016-17; 4.84%

BASE YEAR 2013-14; 0.00%

BASE YEAR 2013-14 2014-15 2015-16 2016-17

INFERENCE
The above graph 7 showing that the taxes in the year 2014-2015
increased by 12.94% compared to 2013-2014.In the year 2015-2016
it has been decreased to 8.64% and in the year 2016-2017 it has been
decreased to 4.84% compared to 2015-2016

CHAPTER 5

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SUMMARY OF FINDINGS AND

CONCLUTIONS

FINDINGS:-

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 From the above graph 1,it is clear that the sales in the year
2014-2015 increased by 12.94% compared to 2013-2014.In the
year 2015-2016 it has been decreased to8.63% and in the year
2016-2017 it has been decreased to 0.27% compared to 2015-
2016.

 From the above graph 2, it is clear that the debtors in the year
2014-2015 increased by 82.85% compared to 2013-2014.In the
year 2015-2016 it has been decreased to 4.62% and in the year
2016-2017 it has been increased to 29.66% compared to 2015-
2016.

 From the above Graph 3, It is clear that the issue of shares in all
the years (2014-2017) are constant.

 From the above graph 4, it is clear that the cash purchase in the
year 2014-2015 increased by 86.89% compared to 2013-
2014.In the year 2015-2016 it has been decreased to 53.38%
and in the year 2016-2017 it has been increased to 100%
compared to 2015-2016.

 The graph 5 showing that the salaries in the year 2014-2015

increased by 18.23% compared to 2013-2014,In the year 2015-
2016 it has been increased to 19.44% and in the year 2016-2017
it has been increased to 37.60% compared to 2015-2016.

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 The above graph 6 showing that the capital expenditure in the

year 2014-2015 increased by 67.46% compared to 2013-
2014.In the year 2015-2016 it has been increased to 86.23%
and in the year 2016-2017 it has been decreased to 32.43%
compared to 2015-2016.

 The above graph 7 showing that the taxes in the year 2014-
2015 increased by 12.94% compared to 2013-2014.In the year
2015-2016 it has been decreased to 8.64% and in the year 2016-
2017 it has been decreased to 4.84% compared to 2015-2016

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CONCLUSION
Cash budget is an inputs and outputs of a business or an individual
over a long period of time (economic, 2013). Cash budgeting is
related to an organisation’s plan to plan ahead and to plan ahead of
the future in a company. It usually expressed it as numbers of cash
budgeting. The main objective of preparing cash budget is to ensure
that the cash is sufficient for the purpose of capital or revenues
expenditure. It is also to have cash in advanced in the case of
shortage of funds (Fundamentals of financial management). Having a
cash budget is an important factor as it allows the company to have
targets sales, minimize the loss in a company and to earn maximum
revenues. It also allows the company to manage their business as
well as to compare the sales between the actual and the budgeted
sales (TheTimes100, 2013). Therefore, I am very much agreeing that
without cash budgeting, management of any business will be
ineffective and will have no aims to improve further. Planning is a
very important task for a company to excel. It forces every team’s
managers to look ahead, plan ahead, anticipate what the problems in
long term run is, and to help achieve the goals in the company. In
order to achieve the organisation’s goals, budgets will have the
strategic and tactical plans such as long term planning and
advertising or marketing besides planning.

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SUGGETIONS
 The debt is fluctuating whereas equity is stagnant.
 From the above graph it can be inferred that the total income
is decreasing year on year for the increasing expenditure.
 The cash budget is showing a decreasing trend, the total
expenses of the company are increasing but the total income is
decreasing hence, company should strategies to increase its
income.
 the equity share investment by the state government is
stagnant for the considered financial years 2014-15, 2015-16
and 2016-17. It has been observed that the central
government has zero contribution towards the equity share of
BMTC.
 There by it can be concluded that the internal capital
contribution of BMTC fluctuates probably as per requirement.
BMTC should prepare an estimsted buget to meet the
contingencies
 The effective kilometers growth is showing negative impact for
the considered financial years: 2014-15, 2015-16 and 2016-17
nictitating BMTC to improvise effective kilometers for its fleet
of buses.
 BMTC revenue needs to made more stable.
 This shows BMTC has to work on increasing its operating
revenue.

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 BMTC can anticipate the expenses and plan accordingly to

meet them
 BMTC should concentrate on reducing its expenses and
increase its income.
As the profits are unstable BMTC needs to concentrate on stabilizing
the profits for BMTC.

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CHAPTER -7
BIBLIOGRAPHY

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TEXT BOOK
TITLE OF THE BOOK : Advanced financial management.
 Author : mariyappa
 Edition: 2016
 HIMALAYA PUBLIACTION HOUSE.

TITLE OF THE BOOK : Financial management.

 Author : Shashi k Gupta

 Edition : 2016
 HIMALAYA PUBLICATION HOUSE

TITLE OF THE BOOK: Cost management .

 Author : Ghousiya  Khatun.

 Edition :2016

JOURNALS
 ANNUAL ACCOUNT AND AUDIT REPORT BY BMTC
2013-2014.

 ANNUAL ACCOUNT AND AUDIT REPORT BY BMTC

2014-2015.

 ANNUAL ACCOUNT AND AUDIT REPORT BY BMTC

2015-2016.

 ANNUAL ACCOUNT AND AUDIT REPORT BY BMTC

2016-2017.

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WEBSITES
www.mybmtc.com
WWW.Wikipedia.com

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CHAPTER-8
ANNEXURES

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BENGALURU METROPOLITAN

BALANCE SHEET AS AT

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