Analysis Of Financial Performance And Critical Evaluation Of The Bsnl Voluntary Retirement Scheme

Abstract

Financial analysis identifies the financial strengths and weaknesses of the company by establishing a proper relationship between the budget item and the profit and loss account. The aim of the study is to analyse the financial performance of BSNL for the five-year period (2015 to 2019) as well as the critical evolution of the VRS scheme. Voluntary Retirement Scheme (VRS) is the fact that an individual absolutely stops to be working. The employee may also be semi-retired by reducing working hours. Numerous workers prefer to resign when they are eligible for private or public pension payments, while others are required to withdraw as health disabilities no longer enable employees to operate or as a consequence of laws related to their job. Financial analysis refers to the process of measuring the company's operating and financial characteristics from the accounting and financial statements. The objective of this analysis is to determine the efficiency and performance of the management of the company by comparing the five-year balance sheet and its impact on the evolution of the VRS scheme. The research is an effort to calculate the profitability, liquidity and other indicators of the business carried out in a reasonable and natural manner by carrying out the analysis of the ratio; it is a method of interpretation and analysis of the financial statements. It is the process of establishing and interpreting the different ratios of aid to decision-making. Ensure the return to shareholders to maintain at least its market value. The study showed why BSNL decided to implement the VRS system.