Financial performance of India Post: understanding annual report
Session objectives At the end of the session, participants will be able to Analyse the information available in the annual Report of DOP and how they are accountable in the figures. Review Financial Performance of Department of Posts
Exercise Teams to present their studies Team 1: conduct profit and loss analysis for past 5 years Assess factors responsible for present status Create strategies to turn around the status Team 2: conduct profit and loss analysis for postal products Identify top three loss making products Identify top three profit making products
Financial Information of India Post Revenue incl. Recovery Working Expenses (Gross) Revenue Deficit % of Deficit over Expenses Rupees in Crore
Financial Health Of The Department 1.1.5
1.1.6
INDIA POST’s deficit YearDeficit (InCrores) Break even
Revenue in the last 5 years Revenue Amt. in crore of ` Products Speed Post Business Post Bill Mail Service Express Parcel Post Retail Post Sale of Postage Stamps Logistic Post Money Orders Others Revenue fro P.O SBCC Total Revenue
Expenditure during last 5 years (Amt. in crore of `) Salary Pension Total (Salary+Pension) Others Total Expenditure (Gross)
Some Factors affecting Revenue resources/realisation Government Policies MoF - SB, SC, Co-ordination of Various Ministries, State Governments- MGNREGA, Old Age Pension Payment through MOs, Rural Development Changes due to technology development- - Increase in Tele density, , Online applications, Non-receipt / Incomplete receipt of returns from the Field Units. Postal System - Duplication of work in the Postal Department –Ongoing solution – Possible better net working Non-availability of MIS in time- Monitoring Problems Problems in accounting system Cash based accounting and Accrual Accounting Focus on commonly required service for Public – BD Products Need for better exploring of potential areas
Some Factors affecting Expenditure Containment Staff oriented department 6 th PCR implications Bearing the Pensionery Expenditure under MH Growing expenditure on Gramin Dak Sevaks – Need for better & profitable utilisation of rural net work- USO Concept Problems in accounting / segregation of expenditure on Agency Functions and BD products
Vision without action is merely a dream. Action without vision passes the time. Vision with action can change the world.
Exercise Analyse and suggest the reasons for increase in expenditure and ways to reduce it Suggestions for achieving breakeven.