Well, this is the story of the incorporation of the Bharat Sanchar Nigam Limited, (BSNL). According to member finance, Mr A Prasad, Telecom Commission, the process for the creation of the corporation entailed a titanic accounting exercise.

Birth of a company, which is billed as the largest Indian company with Rs 63,000 crore assets and a projected revenue of Rs 20,000 crore per annum, has given the government some tough moments too. By its sheer size, turnover and profits, BSNL is as among the Fortune 500 companies. The only other company from India in the list is the Indian Oil Corporation (IOC). In anticipation of the proposed creation, two separate accounting cycles were followed and expenditure cycles too were streamlined in such a way that there was no spillover from the first cycle into the next cycle.

The first accounting cycle terminated on September 30, 2000. It was the deadline for closing the books of the government entity that Department of Telecommunications was, in the pre-BSNL days by accounting for the assets and liabilities of the unsplit organisation.

A physical verification of assets were taken on the evening of September 30 and transferred those assets which is of use to BSNL by next day morning to the newly carved out company. Meter reading of all telephones was taken in the night of transition to ensure the best of the bookkeeping practices. Mr Prasad explains: "All accounts of the organisation with the Reserve Bank of India have been frozen." However, to ensure a smooth tide-over, he adds, some accounts were allowed to function. "

These include those accounts which handle pension and retirement payments and remittances."

This was done so as to route cheques of the last few weeks before the demerger. However, such accounts which are still functioning too would be closed by November 30,2000.

"After the books are closed, the consolidated accounts for transactions till September 30, 2000 would be compiled. These are likely to be prepared latest by January or February, 2001."