BSNL needs to gets its house in order

Bharat Sanchar Nigam’s consolidated losses have increased, net loss declared is Rs 1569 crore in Q3 FY24, up from Rs 1481 crore in Q2 FY24.

Total income has increased to Rs 5058.94 crore in Q3 FY24, from Rs 4737.63 crore in Q2 FY24.

The auditors, V.K Jindal & Company’s comments are of concern:

“We have come across certain issues with regard to which we are unable to assess the impact on the Statement of Financial Results:

(i) The Parent has not carried out any techno-economic assessment during the nine months ended 31 51 December 2023 and hence identification of impairment loss and provision thereof, if any, has not been made.

(ii) Improper capitalization of lease-hold assets, pending renewal of leasehold assets, reported by certain circle auditors has led to non-compliance of Ind-AS 116-Leases.

(iii) As reported by certain Circle Auditors, Capital Work-in-Progress is not reviewed on quarterly basis.

(iv) Capitalization of in-progress property, plant and equipment has not been properly done in certain circles.

(v) As reported by certain Circle Auditors, balance in Advances from Customers and advance to suppliers include old pending balances which have not been reconciled.”

And some more comments on the same lines.

For complete result, https://www.bsnl.co.in/opencms/export/sites/default/BSNL/investors/pdf/Q3_2023
_24_Financials.pdf

Also read, https://www.communicationstoday.co.in/bsnl-pulled-up-for-being-lax-in-monetising-land-assets/

https://www.communicationstoday.co.in/tcs-on-bsnl-deliveries-at-earnings-conference-call-q3-fy24/

CT Bureau