Sunday, March 31, 2019

Reliance JIO PL statement


Reliance JIO PL statement
When controversy about Reliance Jio is going on about its Predatory pricing - aggravate marketing, it awakened my  spirit to read their annual  financial statement. Some of the features that I found are shared herewith  with my observations.
PL statement of Reliance Jio  year ended 31-3-2018 :
Revenue 20158 cr
 Expenses 19049 cr
PBT 1109 cr
Net Profit 723 cr
Employee Expense 963 cr ( salary 853 cr PF, welfare etc)
Operating expense 4921 cr
Access Charge expense 4287 cr
Depreciation 3577 cr
For Every equity of Rs 10 the earning is 16 paise
 Equity capital is 45000 cr
 Total Borrowing as on April 1, 2017 was 47463 cr
The company is providing Employees plans as of PF scheme and Gratuity act
TRAVELLING EXPENSES SHOWN ONLY as Rs 25 CR
CONTRIBUTION TO Pension fund was shown as 36 cr and  PF 72 cr
 Each Jio subscriber on an average consumes 9.7 GB data, 716 minutes of voice calls, and 13.8 hours of video per month.  Jio is claiming average download speed of 17.9 Mbps which is more than twice the network speed available on any other network.
The other claim of JiO is Making Life Better( not told one is bitter to other telcos) "The MyJio app is the most popular self-care app with over 150 million downloads and substantial additional features. During the year, Jio was awarded the 1st rank in India and 17th globally in the Fast Company’s World’s 50 Most most innovative company. Awarded The Disruptors title by CNBC TV. It won Best Mobile Video content award at Global Mobile Awards 2018.
My Observations:
1. There is no level playing field  on Job creation comparing BSNL ( as there is no commitment the expenses on that head is nothing comparing BSNL ). BSNL the top employer is giving jobs to 2 lakh. There is no mandatory licensing condition ‘for this much production this much manpower is minimum’. California Formula is normally applied by Privates  that is  ‘less manpower to the extent  possible- double the salary-   make use of them do over production’ . Spend less on live labour and more on dead labour like  state of art technology.
2.   2 years ago JIO’s PL was  shown only in some lakhs. How this quantum jump was made possible to  20000 cr within 2 years - capturing market attracting  (fooling)  the customers with below the cost prices making the  fair play and grammar of competition a mockery.
3. Its Equity capital and loan is almost equal  that is  debt equity ratio  is one
4. This boom of over production in Telecom will lead to ‘Big fish theory’ of swallowing weak operators whether private or public
5. Reliance Industries is an integrated corporate giant and Jio is part of that corporate collectives.
6. BSNL Board room started copying the AirTel Board room decisions. State Capitalism cannot survive if it copies all the capitalist methods and will loose its welfare face.  BSNL Board Room cannot be allowed to escape from its responsibility by showing Govt/DOT for its mismanagement/ actions and decisions.  Sometimes, the Board authorities have shown some inclination to act like TUs and using TUs to save their skin.   It amounts to dishonesty on their part.  No authority was fixed for this sordid state of affairs both in BSNL and DOT.
7. Govt is Govt and Today's Govt is claiming to govern less ( not intervening for the welfare of the needy) and tries to fit itself  for corporates. One cannot expect that Govt should act or support  in the same way for its company entity as  doing for its departmental entity.
8. There are specific guidelines issued  by  BJP Govt for restructuring/ Revival / closure of loss making PSUs.  BRPSE was closed. Respective Ministry is entrusted to do the Job. No ministry can go beyond the said instructions. They conduct the affair in their own bureaucratic style. Lot of agencies are doing overwork and giving various recommendations to Govt in this regard.  Some of their findings  were given in my “Note on loss making PSUs”
9. Fighting is good but learning  in our own way  from many sources with  good discussion and placing them transparently to the all concerned and fighting is better.
31-3-19

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