1. Financial performance of India Post: understanding annual report

2. 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

3. 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

4. Financial Information of India Post 1990- 1991 1995-962000-012005-062010-112011-122012-132013-14 Revenue incl. Recovery 840.851812.733357.535219.277448.05 7899.409366.5010720.94 Working Expenses (Gross) 1302.862472.144907.296429.1513793.6713705.4014791.5016202.95 Revenue Deficit 462.01659.411549.761209.886345.62580654255482 % of Deficit over Expenses 35.4626.6731.5818.8246.0042.3636.6733.83 Rupees in Crore

5. Financial Health Of The Department 1.1.5

6. 1.1.6

7. INDIA POST’s deficit YearDeficit (InCrores) 1960-61Break even 1985-86216 1987-88164 2001-011550 2001-021412 2002-031364 2003-041375 2004-051382 2005-061210 2006-071250 2007-081511 2008-093593 2009-106641 2010-116345 2011-125806 2012-135425 2013-145482

8. Revenue in the last 5 years Revenue Amt. in crore of ` Products2009-102010-112011-122012-132013-14 Speed Post614.0748.8889.61261.51372.0 Business Post721.2818.5774.0823.91029.4 Bill Mail Service112.1120.6105.9104.9103.0 Express Parcel Post33.952.071.878.977.6 Retail Post83.688.281.471.070.2 Sale of Postage Stamps 617.8814.3663.7648.6622.8 Logistic Post14.120.015.949.515.3 Money Orders 330.4388.1481.6501.9606.9 Others606.8549.0511.4794.7852.5 Revenue fro P.O.3133.93399.63595.34334.94749.6 SBCC3132.83562.84304.15031.65971.3 Total Revenue6266.76962.37899.49366.510720.9

9. Expenditure during last 5 years (Amt. in crore of `) 2009-102010-112011-122012-132013-14 Salary8801.69230.69363.310052.710742.1 Pension3339.33177.43509.33977.14053.9 Total (Salary+Pension)12140.912408.012872.614029.814796.0 Others12061385.61291.31451.42000.5 Total Expenditure (Gross)13346.913793.614163.915481.216796.5

10. 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, e-mail, 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

11. Some Factors affecting Expenditure Containment  Staff oriented department  6 th PCR implications  Bearing the Pensionery Expenditure under MH 3201.  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

12. Vision without action is merely a dream. Action without vision passes the time. Vision with action can change the world.

13. Exercise  Analyse and suggest the reasons for increase in expenditure and ways to reduce it  Suggestions for achieving breakeven.