BSNL likely to seek govt bailout

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muzux2

muzux2

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BSNL likely to seek govt bailout to avoid going Bankrupt.

NEW DELHI: State-owned Bharat Sanchar Nigam Ltd (BSNL), that was sitting on cash pile of over Rs 40,000 crore till March 2008, and was using its interest income to buttress its profits, may soon be forced to seek a government bailout to survive.

Once considered as jewel among the India's state-run companies, BSNL is facing an uphill task of meeting its fund requirement towards capital expenditure this fiscal as its cash and bank balance reached to a critical level of Rs 2,500 crore. Off this, BSNL has a bank deposit of only Rs 840 crore while the rest is current account and being used for running its businesses.

A year ago, BSNL had cash reserves to the tune of Rs 30,343.40 crore. This comes as the PSU has recorded loss of whopping Rs 6,384 crore for the year-ended March 2011, capping a series of dismal results in the last four years that saw the erstwhile monopoly being reduced to a bit player in the fastgrowing market.

The unlisted company had earlier told the government that its losses would be limited to Rs 2,725-crore losses for the year-ended March 2011. BSNL had announced a loss of Rs 1,823 crore for the year to March 2010, a first for the company since it was set up. Its losses have gone up 350% over the last 12 months. "Our employee costs account fro 46.5% of the company's total revenues.
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BSNL likely to seek govt bailout - The Times of India

BSNL's cash and bank balance reach Rs 2,500 crore; likely to seek govt bailout - Economic Times
 
Not surprising as:

1) Bad CC

2) Total free loaders as employees (late to work, early to leave and not to mention, lazy with work)

3) Failure to act against companies like failtel whenever BSNL cables been cut by them, resulting in loss of customers.

Besides these, the politicians never pay their bills. So not a news which ll raise too many eyebrows.
 
lmao they must have had to put in a lot of effort to manage to run a telecom company to the ground and that goes way beyond shitty cc and broadband plans.
 
Even MTNL too in same way, see MTNL's last balance sheet & loss figure. But MTNL Mumbai is NOW SUPER GOOD in CUSTOMER SERVICE they call you if they found all is OK else :P
 
Long live A Raja! who vanished world's largest BSNL telecom tender of 95 million lines, in 2006 when other player were emerging. Pure BSNL loot by our beloved politicians.
 
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