Second Interim Financial Report: Fill & Download for Free

First of all, the only thing common these companies have is that they are public sector enterprises (PSEs). Apart from that their problems, performances are totally unrelated. And in fact, ONGC is doing pretty good. Just have a look at its dividend payout history. You can’t pay that much without already being in a good condition.The government has sucked ONGC dry of any surplus resources and actually, for the second interim dividend the ONGC board was not very enthusiastic.The shortfall of government tax revenues has been compensated by raising funds from PSEs. Still ONGC is going good with more than INR 28 Thousand Cr profit for the last year.Being in such a capital intensive industry, ONGC needs sufficient cash balance to run the operations smoothly. The government’s hands are also tied. They cannot borrow excessively from the market as it will increase the interest rates and hurt the common man and the businesses at the same time. Therefore, someone (may be of lower impact) has to pay the price.Similarly, HAL, after paying for share buyback and dividend amounting to more than INR 15000 Crs, had to take loans to pay the staff salaries. I am not going to talk about the organization productivity, delay in Tejas, management vision, etc. HAL has to do a lot of soul searching in all those areas.BSNL on the other hand does not seem to be in a comfortable position for a long time. The 4G rollout got delayed since they had to return 4G licenses to raise funds to pay their employees. And believe me they pay a lot to their employees.The second item under Expenses- Employee Benefit Expenses accounts for more than 59% of total revenues. This is too high. To understand how high it is, Bharti Airtel’s employee benefit expenses are slightly more than 3%. Yes 3%, I was also shocked. That too when attrition among Airtel users was more than BSNL users.Not only they missed out on product launches, competitive pricing and repositioning and strategizing and all that, the employee expenses are going through the roof. I don’t know for what they have been rewarding themselves. It looks more like an “employment for all” firm than a national telecom company.So there you have it. ONGC- definitely not in a bad condition, HAL doing okayish.., but BSNL- the whole organization needs to be thought over; the business, the users, the focus, management, employees, everything.References:First image- Oil and Natural Gas CorporationSecond image- BSNL Annual Report financial result‘HAL share buybacks, dividends left it poorer by ₹15,500 crore’Government pushes IOC, ONGC to pay second interim dividend after facing revenue shortfallBSNL Receives Previously Surrendered 4G Spectrum from Government in 2500MHz Band - Telecom Talk

Interim financial statements cover a period of less than one year. The concept is most commonly applied to publicly held companies, which must issue these statements at quarterly intervals. These entities issue three sets of interim statements per year, which are for the first, second, and third quarters. The final reporting period of the year is encompassed by the year-end financial statements, and so is not considered to be associated with interim financial statements.The interim statement concept can apply to any period, such as the last five months. Technically, the "interim" concept does not apply to the balance sheet , since this financial statement only refers to assets, liabilities, and equity as of a specific point in time, rather than over a period of time.Interim financial statements contain the same documents as will be found in annual financial statements - that is, the income statement, balance sheet, and statement of cash flows The line items appearing in these documents will also match the ones found in annual financial statements. The main differences between interim and annual statements can be found in the following areas:Disclosures. Some accompanying disclosures are not required in interim financial statements, or can be presented in a more summarized format.Accrual basis. The basis upon which accrued expenses are made can vary within interim reporting periods. For example, an expense could be recorded entirely within one reporting period, or its recognition may be spread across multiple periods. These issues can make the results and financial positions contained within interim periods appear to be somewhat inconsistent, when reviewed on a comparative basis.Seasonality. The revenues generated by a business may be significantly impacted by seasonality. If so, interim statements may reveal periods of major losses and profits, which are not apparent in the annual financial statements.Interim financial statements are not usually audited. Given the cost and time required for an audit for only the year-end financial statements are audited. If a company is publicly-held, its quarterly financial statements are instead reviewed. A review is conducted by outside auditors, but the activities encompassed by a review are much reduced from those employed in an audit.

Thanks for the A2A Paul Denlinger.Quick answer: DiversificationTencent HoldingsAlibaba GroupBaiduNow, the long answer.Let´s analyze from backwards.Baidu (BIDU)From my perspective, the concentration of Baidu´s investments in just Artificial Intelligence and Self-Driving Cars and related technologies, is not a good decision. There are a lot of markets out there with a bright future, so they should be more open for other industries as well.And another key issue which is harming Baidu´s financials is that they are having some risky flutuations with their active online marketing customers (AOMC) in the past quarters:Q1 2017: 451,000 AOMC, representing a 23.2% decrease from the corresponding period in 2016Q2 2017: 470,000 AOMC, representing a 20.9% decrease from the corresponding period in 2016Q3 2017: 486,000 AOMC, representing a 7% decrease from the corresponding period in 2016Just read a quick part of the Baidu´s 20-F report for 2016:We deliver online marketing services to a diverse customer base operating in a variety of industries. In 2016, we had approximately 982,000 active online marketing customers.Consistent with previously reported numbers, the number of active online marketing customers excluded those for our group-buying and delivery related businesses. Our online marketing customers consist of SMEs throughout China, large domestic companies and Chinese divisions and subsidiaries of large, multinational companies.We have a diverse customer base in terms of industries and geographical locations. Our defined industries in which our customers operate include retail and ecommerce, local services, medical and healthcare, network service, financial services, education, online games, transportation, construction and decoration, and business services.Customers in our top five industries contributed approximately 50% of our total online marketing revenues in 2016. Although we have customers located throughout China, we have a more active and larger customer base in coastal regions, reflecting the current general economic demographics in ChinaWhy this matters? Because Online Marketing customers one of the key drivers of Baidu´s revenues, and if they are making these fluctuations, it seems they are doing something wrong.That´s why I put Baidu in third position.Alibaba Group (BABA)The Alibaba Economy is Everywhere. According to Crunchbase, they have made 83 investments to this date, and they´ve had 21 numbers of exits.Joseph Tsai and its M&A group inside Alibaba have made an incredible work from my perspective, because they not just have made incredible investments and acquisitions, but they have worked closely with the leaders of the acquired companies to make the transition smoothly to the Alibaba´s ecosystem.Just watch his talk at Alibaba Investor Day 2017:Alibaba´s business units are very diverse and complex, but my favorite organization inside Alibaba is Ant Financial Group (currently valued at $75 Billion USD); which could have its own IPO in 2018. Ant Financial has become in a global powerhouse in everything related to payments, especially on Mobile devices and other financial services.That´s why I put Alibaba Group in the second place.Tencent Holdings (HK:0700)They are the kings of diversification: According to Crunchbase, they´ve made 216 investments until this date, and they´ve had 29 exits. Actually, if you analyze close severa of IPOs in Hong Kong recently, you will note Tencent is always a backer of the company is doing the IPO.This is not a coincidence. Just read why they put in the Q3 2017 financial report:As at September 30, 2017, net cash position totalled RMB18,862 million. Fair value of our stakes in listed investee companies (both associates and available for sale financial assets) totalled RMB 171.1 billion as at September 30, 2017.In the second quarter and Interim results, the number was this one:As at June 30, 2017, net cash position totaled RMB 21,267 million. Fair value of our stakes in listed investee companies (both associates and available for sale financial assets) totaled RMB 146 billion as at June 30, 2017That´s why I strongly believe that Tencent is the first company in this ranking.This article captures very well the dominance of Tencent right now:Tencent, the Chinese website that's grown bigger than Facebook