Ratio Analysis of Bhel

RATIO ANALYSIS OF BHEL
SUMMER TRAINING REPORT

ON
RATIO ANALYSIS
SUBMITTED BY:
AMIT TOMAR
BBA – VTH SEM, DEHRADUN
SESSION – 2009-2012
CFFP DIVISION,
BHARAT HEAVY ELECTRICAL LIMITED, HARIDWAR
SUBMITTED TO
MS. JYOTI PANDEY

FINANCE - FACULTY
1
Graphic Era University, Dehradun
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ACKNOWLEDGEMENT
I express my sincere thanks to the management of CFFP (Central Foundry

and Forge Plant) of BHEL, Ranipur Haridwar Unit for giving me an
opportunity to do the Summer Internship for their esteemed organization.
I am personally grateful to MS. JYOTI PANDEY Department who took me as

a trainee under her guidance, without which my project was not possible.
I am also thankful to the other members of each Section of the Finance

Department for their guidance in the various issues of the working capital
and helping me to understand the policies and procedures adopted for the
smooth running of the Finance Department of a Company.
At last I would like to thanks all the members of finance section for being
so co-operative, helpful and approachable all the time for sorting out my
queries and problems.
With Sincere Thanks

AMIT TOMAR
BBA – VTH SEM.
DEHRADUN
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CONTENTS
1. ACKNOWLEDGEMENT
2. INTRODUCTION
3. BHEL, HARIDWAR
4. RATIO ANALYSIS
5. THEORTICAL FRAME WORK
6. DATA ANALYSIS
7. FINDING
8. CONLCUSION
9. SUGGESTIONS
10. BIBLIOGRPAHY
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INTRODUCTION OF COMPANY
B.H.E.L. A CORPORATE GIANT

Established in the late 50's BHARAT HEAVY ELECTRICALS
LIMITED (BHEL) is a name which is recognized across the industrial
world. It is one of the largest engineering and manufacturing
enterprises in INDIA and is one of the leading international
companies in the power field. BHEL offers a wide spectrum of
products and services for core sectors like power transmission,
industrial transportation, oil and gas, telecommunication etc. Besides
supply of non-conventional energy systems. It has also embarked
into other areas including defence and civil aviation. A dynamic 63000
strong team embodies the BHEL philosophy excellence through
continuous striving for state of the art technology. With corporate
headquarters in NEW DELHI, fourteen manufacturing units, a wide
spread regional services network and projects sites all over India and
even abroad, BHEL is India's industrial ambassador to the world with
export presence in more than 50 countries.
BHEL's range of services extent from project feasibility studies to
after sales services, successfully meeting diverse needs through
turnkey capability.
BHEL has had a consistent track record of growth, performance and
profitability. The World Bank in its report on the Indian Public Sectors,
has described BHEL as “one of the most efficient enterprises in the
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industrial sector, at par with international standards of efficiency".

BHEL has acquired ISO 9000 certificate for most of its operations and
has taken up Total Quality Management (TQM).
All the major units/divisions of BHEL have been upgraded to the
latest ISO-9001: 2000 version quality standard certification for quality
management. All the major units/divisions of BHEL have been
awarded ISO-14001 certification for environmental management
systems and OHSAS-18001 certification for occupational health and
safety management systems.
BHEL occupies an all-important niche as evident by its ranking by CII
amongst top eight PSUs based on financial performance. Recently in
survey conducted by business India, BHEL has been rated as
seventh Best Employer in India.
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BHEL Corporation - An Introduction

NEW DELHI GOINDWAL
CORPORATE OFFICE
Employees -42489 (2012-13) MANUFACTURING

LOCATIONS HARIDWAR
Turnover - Rs 50015 Crores (2012-13)
14 Manufacturing divisions SERVICE CENTRES
4 Power Sector regional centres
8 service centres and 16 regional offices RUDRAPUR
VARANASI
Major Units/Divisions are Certified with ISO 9001(2000), ISO 14001 and OHSAS 18001
Continuous Profits since 1971-72
Caters to Core Sectors viz., Power, Industry, Transportation, Telecommunication, Renewable Ene
Manufactures over 180 products under 30 major product groups JAGDISHPUR
JHANSI
CALCUTTAAAAA
PATNA
BHOPAL
BARODA
NAGPUR
HYDERABAD
BANGALOREE
RANIPET
TIRUCHIRAPALLY
COMPANY PROFILE:-
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BHEL is India's largest engineering company and one of its kinds in

this part of the hemisphere. It manufactures a wide range of state of
the art power generation equipment and systems besides equipment
for industry, transmission, defence, telecommunication and oil
business. The first plant of BHEL was set up in Bhopal in 1956, which
signaled the dawn of the heavy electrical industry in India. In the early
60's three more major plants were set up in Hardwar, Hyderabad and
Tiruchirapalli. The company now has 14 manufacturing divisions, 10
services centers and power sectors regional centers besides project
sites spread all over India and also abroad to provide prompt and
effective service to customers. BHEL's business broadly covers
conversions, transmission, utilizations and conservation of energy in
core sectors of economy that fulfill vital infrastructure needs of the
country. Its product have established an enviable reputation of high
quality and reliability, which is largely due to emphasizes placed all
along on contemporary some of the best technologies of the world
from the leading companies in U.S.A., EUROPE, and JAPAN
together with technologies from its own R&D centers technologies
B.H.E.L.has consistently upgraded its design and manufacturing
facilities to international standards by acquiring and assimilating.
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COMPANY'S BUSINESS MISSION AND OBJECTIVES

BUSINESS MISSION
*********************
To maintain a leading position as suppliers of quality equipment,

systems and services in the field of conversion of energy, for
application in the areas of electric power transportation, oil and gas
exploration and industries. Utilize company's capabilities and
resources to expand business into allied areas and other priority
sectors of the economy like defence, telecommunications and
electronics.
BUSINESS OBJECTIVES
************************
GROWTH: -
To ensure a steady growth by enhancing the competitive edge of

BHEL defence, telecommunication and electronics in existing
business, new areas and international operations so as to fulfill
national expectations from BHEL.
PROFITABILITY: -
To provide a reasonable and adequate return on capital employed,
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primarily through improvements in operational efficiency, capacity

utilization, productivity and generate adequate internal resources to
finance the company's growth.
CUSTOMER FOCUS: -
To build a high degree of customer confidence by providing increased
value for his money through international standards of product quality,
performance and superior services.
PEOPLE- ORIENTATION: -
To enable each employee to achieve his potential, improve his

capabilities, perceive his role and responsibilities and participate and
contribute positively to the growth and success of the company. To
invest in human resources continuously and be alive to their needs.
TECHNOLOGY: -
Achieve technological excellence in operations by development of

indigenous technologies and efficient absorption and adaptations of
imported technologies to suit business need and priorities and
provide the competitive advantage to the company.
IMAGE: -
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To fulfill the expectations which stakeholders like government as

owner, employees, customers and the country at large have from
BHEL.
CONTRIBUTION OF BHEL IN VARIOUS CORE SECTORS
BUSINESS SECTORS: -
BHEL's operations are organized around three business sectors,

mainly power, industry and international operations. This enables
BHEL to have a strong customers orientation, to be sensitive to his
needs and respond quickly to the changes in the market.
POWER SECTORS: -
Power is the core sector of BHEL and comprises of thermal, nuclear
gas, diesel and hydro business. Today BHEL supplied sets, accounts
for nearly 66 % of the total installed capacity in the country as against
nil till 1969-70.
BHEL manufactures boilers auxiliaries, TG sets and associate
controls, piping and station C & I up to 500 MW rating with technology
and capability to go up to 1000 MW range. The auxiliary products
high value capital equipment like bowl and tube mills, pumps and
heaters, electrostatic precipitators, gravimetric feeders, fans, valves
etc.
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BHEL has contracted so far around 240 thermal sets of various

ratings, which includes 14 power plants set up on turnkey basis.
Nearly 85 % of World Bank tenders for thermal sets floated in India
have been won by the company against international competition.
It has the capability to manufacture gas turbines up to 200 MW rating
and custom built combined cycle power plants. Nuclear steams
generators, turbine generators, sets and related equipment of 235
MW rating have been supplied to most of the nuclear power plants in
India. Production of 500 MW nuclear sets, for which orders have
been received.
INDUSTRY SECTORS:-
BHEL is a major producer of large size thyristor devices. The
products include centrifugal compressors, high speed industrial drive
turbines, industrial boilers and auxiliaries, waste heat recovery
boilers, gas turbines, electric motors, drives, and control equipments,
high voltage transformers, switch gears and heavy castings and
forgings.
Company in India with the capability to make simulators for power

plants, defence industrial process plants and other applications. An
entry has been made in aviation industry for which BHEL has set up
facilities and is now producing two seater aircraft.
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TRANSMISSION:-
A wide range of transmission products and systems are produced by
BHEL to meet the needs of power transmission and distribution
sector. These include:
 Dry Type Transformers
 SF6 Switch Gears
 400 KW Transmission Equipment
 High Voltage Direct Current System
 Series and Shunt Compensation Systems
In anticipation of the need for improved substations, a 33 KV gas
insulated sub station with micro processors base control and
protection system has been done.
TRANSPORTATION:-
65 % of trains in Indian Railways are equipped with BHEL's traction
and traction control equipment. These include:
 Broad Gauge 3900 HP AC / DC locomotives
 Diesel Shunting Locomotives up to 2600 HP
 5000 HP AC Loco with thyristor control
 Battery Powered Road Vehicles and Locomotives
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RESEARCH AND DEVELOPMENT:-
BHEL has a corporate R & D center supported by R & D groups at

each of the manufacturing divisions. The dedicated effort of BHEL's R
& D engineers have produced several new products like automated
storage retrieval system automated guide vehicles for material
transportation etc. Establishment of Asia's largest fuel evaluation test
facility at Tiruchy was high light of the year. This facility will enable
evaluation of combustion, heat transfer and pollution parameters in
boilers.
Major R & D achievement include:
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 Design manufacture and supply of countries first 17.2 MW

industrial steam turbines.
 Development of 4700 HP AC / DC loco for Indian Railways.
 Development of largest capacitor voltage transformers of 8800 PF
400 KV rating.
 Development and application low cost ROBOTS for job
loading/unloading.
According to ex- CMD Mr. R.K.D. Shah, "BHEL is spending Rs. 60

Crores on Research and Development. Earning from product which
has been commercialized has gone up 26 % to Rs. 760 Crores."
Human Resource Development Institute:-
BHEL has envisioned becoming "A World Class Engineering
Enterprise committed to enhancing stakeholder value". Force behind
realization of this vision and the source of our competitive advantage
is the energy and ideas of our 44,000 strong highly skilled and
motivated people. The Human Resource Development Institute
situated in NOIDA, a corner-stone of BHEL learning infrastructure,
along with Advanced Technical Education Center (ATEC) in
Hyderabad and the Human Resource Development Center at the
manufacturing Units, through various organizational developmental
efforts ensure that the prime resource of the organization – the
Human Capital is “Always in a state of Readiness”, to meet the
dynamic challenges posed by a fast changing environment. It is their
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constant endeavor to take the HRD activities to the strategic level of

becoming active partner to the (organizational) pursuits of achieving
the organizational goals.
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TECHNICAL COLLABORATIONS:-
PRODUCT COLLABORATIONS
# Thermal Sets, Hydro Sets, Motors & Prommashexport

Control Gears. RUSSIA
# Bypass & Pressure Reducing Systems Sulzer Brother Ltd.

SWITZERLAND
# Electronic Automation System for Siemens AG.

Steam Turbine & Generators GERMANY
# Francis Type Hydro Turbines General Electric CANADA

# Moisture Separator Reheaters Baloke Duerr GERMANY
# Christmas Trees & Conventional Well National Oil Well

Head Assemblies USA
# Steam Turbines, Generators and Axial Siemens AG.

Condensers GERMANY
# Cam Shaft Controllers and Tractions Siemens AG.

Current Control Units GERMANY
# HDVC ABB SWEDEN
# Programmable Controls ABB SWITZERLAND
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# Gas Turbines General Electric Co. USA

# Tube Mills Stien Industries
CENTRAL FOUNDRY FORGE PLANT (CFFP)
The Central Foundry Forge Plant was set up al Haridwar with French
collaboration. The construction started in ]974 and production was
commenced m 1976, This plant has in-built high degree of sophistical
ion, normally association with much larger plants, and has
successfully developed various intricate castings and forcings which
were imported earlier. CFFP has successfully manufactured various
types of steel t e,&, Crccp-Resislant Steel, Heat-Resistant Steel,
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Stainless Steel, Armour Steel etcr as per Indian and International

Standards.
CFFP has been supplying sophisticated Castings used in power

sector e.g., Steam Turbine Castings, Turbo Generator Press Rings.
Hydro Turbine Kaplan
Blades and Francis Runners, Compressor Castings etc. The castings
have also been manufactured for Defense, "Nuclear, Chemical and
Steel Sectors.
Critical Forgings manufactured by CFFP include: HP, IP and LP

Rotors and Discs etc., from Steam Turbines. Shafts. Pole and Plates,
Rotor Bush, Thrust Collars etc., for Hydro Sets and Jackets and
Discharge Cover for Pumps besides various types of critical forgings
for Defense, Nuclear, Steel, Cement and Machine Building Industries.
CITP is further upgrading and augmenting ils facilities in the high
growth and high technical areas. CFFP has also won the National
award for import substitution. It has been recognized as a well known
Steel-Maker Foundry and Forge Master by 'Indian Boiler Board'. The
American Bureau of Shipping has also approved CFFP for the
manufacture of Castings and Forgings for ship building industry.
CFFP has been awarded ISO-9002 certificate. The CFFP unit of
BFIEL, Haridwar has also been awarded ISO-140
The details at CFFP are:-
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> Steel Melting
1. 3Arc Furnaces - 10T, 30T I mp; 70T

2. 70T VAD/VOD Furnaces
3. ESR Furnace
Castings (500 kg to SOT piece wt.)
1. Plain Carbon Steels
2. Alloy Steels
3. Creep Resistant Steels
4. Stainless Steels
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Forgings (Upto 55T/piece wt.)

• Equipments
1. 2650T & 9000T
Pneumatic Forging Press
2. 18M HT Furnaces, Circular Furnace, Mist Quenching Facilities etc.
• Products
1. Rotors (Max dia 2000mm)
2. Discs (Max dia 3500mm
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3. Tube Sheets )
4. Blooms
5. ESR Components
> Machining Facilities

1. 7.3 MV. Borers,
WD160/220 H.Borers, 18M
Deep Hole Boring Machines
2. 18 M/IOM centre lathes
etc Testing Facilities
1.Latest Spectrometer,
Hydrogen, Carbon/Sulphur
determinators
2. No of sophisticated US
Flaws detectors,
Boroscopes,
Radiographic Chambers
and Creep Testing facilities.
Quality Certification
1. Well known Boiler Board
Certification
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Graphic Era University,
Dehradun
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Dehradun
2. Approved by Lloyd
Register of Shipping
3. ISO-9000 Certification by
BVQI
4. TUV Certification
Manpower
1. Well trained professionally
qualified
2. 147 Engineers
3. 221 Supervisors
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Dehradun
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Dehradun
4. 870 Workmen
OVERVIEW OF THE FINANCE FUNCTION
Finance is the life-blood of business .It is its very basis. Without

finance neither any business can be started nor successfully run. It's
the spirit of all trade, commerce and industry. Provision of necessary
funds at the required time is the key of success of a concern. In fact,
finance is pivot around which the whole business operations cluster.
Hence, there is imperative need to efficiently manage the finances of
a company. Efficient and effective management of finance enables
the firm to prosper and grow, and without adequate finance no
business can survive and without efficient financial management no
business can prosper and grow.
Finance function is the backbone of any organization. The finance

function plays a very critical role in the maximization of shareholders'
wealth, which is the ultimate objective of the shareholders who
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provides the funds to the company. This objective has been achieved
by the Finance Department by providing information on various
financial parameters such as cash flow, profitability, cost and
margins, assets, working capital and shareholder value for the
purpose of efficient utilization of resources resulting in better
profitability of the company.
The importance of the finance function cannot be undermined in
any organization as many companies have perished not due to bad
production management but due to poor financial management.
Finance function acts like the radar of the ship, which guides the
direction of the ship and saves it from the perils of the sea. In the
same way the finance department provides timely and
relevant information to various levels of management for the
purpose of decision - making. .
APPROACHES TO FINANCE FUNCTION:
1: Originally, the finance function was concerned with the
procurement of funds and legalistic matters relating thereto.
2: According to the second approach, finance function is
concerned with cash
3: Third approach deals with the procurement of funds and their
effective utilization in the business.
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FINANCE FUNCTION
IN
CFFP, BHEL, HARIDWAR
FUNCTIONS OF SALES SECTION

Scrutiny of estimate /quotation for sale of product /services,
wherever financial concurrence is required.
> Raising invoice on customers for dispatches
> Reconciliation of cash collections relating to sales
> Reconciliation of balances with customer from time to time as
well as follow up of recovery of outstanding dues from the
customers in coordination with the commercial
department(cash)
> Accounting of sales and submission of returns of sales tax,
excise duty
> Claiming of various incentives: cash incentive, duty
drawback, etc
> Weekly and monthly turnover reports
> Preparation of various MIRs relating to sales / debtors / cash

collection.
SPECIAL POINTS REGARDING SALES SECTION CFFP
1-: Sales of CFFP are mainly to its sister concern, which is

almost 90%.This is basically known as Inter Unit Transfer.
Only Excise Duty is paid, no Sales Tax is paid on that.
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2-: 100% payment is made under IUTV basis.

3-: For Non- BHEL sales, a credit period of 2 months is given to the
debtors.
4-: Three copy of Invoice is made by the sales section-
1 Copy for Transporter, GR slip(Goods Received)
2 Copy for Customer
3Copy for Excise purpose.
5-: For the BHEL Inter Unit Transfer, §eepjng._Se_cliQjj prepares
the Inter Unit Dispatch Voucher.
6-: Goods manufactured are handed over to the seeping section,
as they are the heavy machine parts. The seeping section is
responsible for the dispatch of goods, not meant for storing >
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FUNCTIONS OF INVENTORY SECTION

For the convenience of various function it is divided in to three section
which are as follows
a: Stores bills
b: Foreign payment
c: Price stores ledger & excise duty
They deal mainly with the following works:
Payment of suppliers bills for indigenous and imported supplies for
material & assets
> Pricing of store receipts vouchers for material and assets
> Opening of arranging payments to foreign suppliers under
foreign credit / deferred payment agreement
> Accounting for purchasing
> Processing / settlement of insurance claims
> Maintenance of accounts of suppliers
> Accounting of material issued to subcontractors.
SPECIAL POINTS REGARDING THE INVENTORY SECTION

Inventory Section along with its MPIC (Material Planning &Inventory
Control)
Dep't. undertakes the two vital processes :-
1. CODIFICATION
2. STANDARDIZATION
Codification:- A unique Code is allotted to the material, which means
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no two items will have a common code. The code has a meaning; it
defines the type of material, nature, category, origin (supplier) and the
specification of the shop where it will be employed. Once a code is
allotted to the material the whole control thereafter is done with that
code. This code & its details are stored in the main computer, as
there is a centralized computer system in CFFP, it helps in easy
access by the concerned departments to the inventory information.
Standardizatioir.-Inventory section with the help of MPIC and Quality

Department checks the quality of the inventory. For this the inventory
undergoes Lab Testing. While testing it is kept in mind that the
raw .material used in the Production must be of standard & not of a
cheap quality. Since the quality of the OUTPUT depends on the
quality of the INPUT, so it is made sure that the quality of the of the
Raw material is of a standard.
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FUNCTIONS OF WORKS SECTION
> Payment of contractors' bills including bills for advances

> Maintenance of accounts of contractors with regard to
security deposits, earnest money, progressive payments etc.
> All accounting work relating to capital expenditure in progress
on erection of plant & machinery and buildings
> All other miscellaneous works relating to hiring of various
facilities.
> Payments and accounting of all expenditure related to
revenue particularly with regard to expenditure incurred on
repair and maintenance of plant and machinery, building and
roads.
> FUNCTIONS OF COST SECTION

> Statement of product wise profitability •
> Cost sheet of completed work orders –
> Utilization reports relating to labor and machines
> Monthly rejection reports
> Estimation guidelines
> Valuation of inventory (Work-in-process and Finished goods)
> Appraisal or analysis of capital investment proposals
> Financial concurrence to price proposals.
> Prepare various MIR's for different parts of management for
purpose of Cost control and reduction.
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SPECIAL POINTS REGARDING THE COST SECTION OF THE

CFFP
• Although the Product wise statement of profitability is
prepared in this department but in CFFP the PROCESS
based system of COSTING is implemented.
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FUNCTIONS OF PAYROLL SECTION
> Preparation of monthly salary statements on the basis of

attendance
> Miscellaneous payments to employees and final payment &
gratuity payments to retired employees.
> All account work related to personnel payments •
> Dealing with income tax authority with regard to personal
taxation of employee.
> Dealing with Statutory Authorities (such as Provident Funds,
Employee State Insurance). There are three statutory
recoveries they are income tax, group insurance and P.F. rest
are at the discretion of employee.
> Deals with house rent recovery, which are at nominal rates.
> It is also concerned with the various allowances like D.A., T.A.,
H.R.A. etc. SPECIAL POINTS REGARDING PAYROLL
SECTION OF CFFP The Payroll section of CFFP is very
efficient and has very prompt and quick services. Unlike, any
other public sector unit the system and procedure of getting
P.F. and Gratuity after retirement is not so time consuming and
tedious.
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FUNCTIONS OF CASH SECTION
> Receipt of money coming in the form of cash and bank

> Payment to suppliers, _contractors and disbursement of salaries, wages
and other personal payments to employees.
> Payments to Bank for billsjliscounted
> Accounting of all receipt and payment of the company in cash or bank
books, maintenance of registers and other records required for
the efficient performance of the responsibilities of the cash section.
> Arrangement of cash credit facility with banks.
> Preparation of Cash flow statement, cash jbrecasts etc.
> Coordination with corporate office with regards to maintenance of
centralized cash credit system.
> Liaisojt with bank for drawl of cash etc.
SPECIAL POINTS REGARDING CASH SECTION OF CFFP •

As stated above, Cash section basically makes payment to three parties
they are Suppliers, contractors, and employees their payments are done
on the advice given by their concerned departments. Like Store -bill
section for suppliers, work section for contractors and payroll for
payment to employees. The taxes related to all the three are also paid.
At present all the functions are performed through on-line i.e. there is a
cash control number (just like a code) with the cash section and CO7
(Section code) is with the respective department. Data is completely
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controlled through these two control codes.

• Mode of payment is mentioned on the voucher and for the payment the
cash Section first checks the available funds then accordingly makes
the payment.
• There are two separate_accounts maintained for the receiving and the
payment purpose. The closing balance of the accounts are always NIL
as whatever is debited and credited is transferred to the corporate office
account. Sometimes the closing balance is shown as the UNCLEAREti
AMOUNT that is because of the amount of cheques issued but yet not
cleared sti that much amount is not debited and the debit amount Is less
by that amount. This amount will sweep in forward, and as soon the
cheque will be cleared the respective amount will be debited.
• The requisitionjp the Corporate office for trie funds is niade weekly.
Showing the details of the funds required, each day in the week.
Corporate office accordingly grants the funds for 2-3 days. Funds are
not given in actual sense but gives permission to use funds from its
account.
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INTRODUCTION OF TOPIC
Ratio analysis is the one of the powerful tools of the financial
analysis. A ratio can be defined as "the indicated quotient of two
mathematical expressions", and as "the relationship between two or
more things". Ratio is thus, the numerical on an arithmetical relationship
between two figures. It is expressed where one figure is divided by
another. If 4000 is divided by 10000, the ratio can be expressed as .4 or
2:5 or 40%. A ratio can be used as a yardstick for evaluating the
financial position and performance of a concern, because the absolute
accounting data cannot provide meaningful understanding and
interpretation. A ratio is the relationship between two accounting items
expressed mathematically. Ratio analysis helps the analysis to make
quantitative judgment with regard to concern's financial position and
performance.
Absolute figures are valuable but they standing alone convey no
meaning unless compared with another. Accounting ratios shows inter-
relationships which exist among various accounting data. When
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relationships among various accounting data supplied by financial
statements are worked out, they are known as accounting ratios.
IMPORTANCE OF RATIO ANALYSIS
Ratio analysis stands for the process of determining and presenting the
relationship of items and groups of item in the financial statements. It is
an important technique of financial analysis. It is a way by which
financial stability and health of a concern can be judge. The following
are the main points of importance of ratio analysis:
(1) USEFUL IN FINANCIAL POSITION ANALYSIS - Accounting ratio
reveal the financial position of the concern. This helps the banks,
insurance companies and other financial institutions in lending and
making investment decisions.
(2) USEFUL IN SIMPLIFYING ACCOUNTING FIGURES - Accounting
ratios simplify, summarize and systematize the accounting figures in
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order to make them more understandable and in lucid form. They
highlight the inter-relationship which exists between various segments of
the business as expressed by accounting statements.
(3) USEFUL IN ASSESSING THE OPERATIONAL EFFCIENCY -
Accounting ratios helps to have an idea of the working of a concern. The
efficiency of the firm becomes evident when analysis is based on
accounting ratios. They diagnose the financial health by evaluating
liquidity, solvency, profitability etc.
(4) USEFUL IN FORECASTING PORPOSE - If accounting ratios are
the calculated for a numbers of years, then a trend is established. This
trend helps in setting up future plans and forecasting.
(5) USEFUL IN LOCATING THE WEAK SPOTS OF THE BUSINESS -
Accounting ratio are of great assistance in locating the weak spot in the
business even though the overall performance may be efficient.
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Weakness in financial structure due to incorrect policies in the past or
present are revealed through accounting ratio.
(6) USEFUL IN COMPARISON OF PERFORMANCE - Through
accounting ratios comparison can be made between one department of
a firm with another of the same firm in order to evaluate the
performance of various departments of the firm.
LIQUID RATIO -
LIQUID ASSETS
CURRENT LIABLITES
FIXED ASSETS TURNOVER

RATIO - SALES
FIXED ASSETS
CURRENT ASSETS
TURNOVER RATIO - SALES
NET CURRENT ASSETS
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TOTAL ASSETS TURNOVER RATIO - NET SALES
TOTAL ASSETS
OPERATING PROFIT OPERATING PROFIT

RATIO -
NET SALESS
NET PROFIT RATIO - NET PROFIT AFTER

TAX
________________ *100
NET SALES
EXPENSES RATIO- OPERATING EXP. * 100

NET SALES
RETURN ON CAPITAL OPERATING PROFIT *100

EXPENSES - CAPITAL EXPENSES
CAPITAL TURNOVER RATIO – SALES

CAPITAL EXPENSES
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RESEARCH METHODOLOGY
Research Design:
Research design is the conceptual structure within which
research should be conducted. A research design specifies the
methods and procedures for conducting particular study. The research
should specifies the approach he intend s to use with respect to the
proposed study. The function of research design is to provide for the
collection of relevant evidence with minimal expenditure of effort, time
and money.
The research design is a pattern or outline of a research projects
work. It is a statement of only the essential dements of a study these
provides best guidelines the detail of the project study being conducted
is descriptive research design.
Descriptive Research:
A descriptive study is undertaken when the researcher wants to
know the characteristics of certain groups as age, sex, educational
level, income, occupation etc. In contrast to exploratory studies,
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descriptive studies are well structured.
Sampling Plan:
The samples are taken on the basis of selective sample plan.
Sampling Size:
When a survey is undertaken and when it is not possible to cover
the entire population, the marketing researcher has to answer a basic
question- How large should the sample be? The sample size decision
is related directly to research cost, and therefore must be justified.
The researcher while deciding the appropriate size of the sample
compromises all the factors affecting the sample size. The decision to
decide the sample size must be scientifically made and should be not
done arbitrarily because of the risks involved. The sample size should
be neither too large nor too small.
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Area of Study:
The survey is conducted in the BHEL, Hardwar region.
Types of Data Collection:
The task of data collection begins after research problem has
been defined and research design/plan chalked out. While deciding
about the method of data collection to be used for the study, the
researcher should keep in mind two types of data viz., primary and
secondary. The primary data are those, which are collected afresh and
for the first time, and thus happen to be original in character. The
secondary data, on the other hand, are those which have already been
collected by someone else and which have already been passed
through the statistical process.
Primary Data:
"Primary Data may be described as those data that have been
observed and recorded by the researchers for the first time to their
knowledge".
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Secondary Data:
"Secondary data are statistics no gathered for the immediate
study at hand but for come some other purpose."
Method of Data Collection:
The primary data are collected by interaction with financial
consultants belonging to BHEL. For this I prepared a questionnaire
through the deep study of my subject matter. After forming the final
questionnaire survey was conducted. As a result of this survey primary
data was collected and interpreted in the form of charts to have a clear
understanding of the data.
Secondary data has been collected through published data.
Published data available in books, magazines, reports & websites on
internet.
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OBJECT OF THE STUDY
1- To understand the operation functioning BHEL HARIDWAR.
2- To get the practical expose of the Accounting practices adopted

in BHEL HARIDWAR.
3- To make large analysis of the company from 2011-12 to 2012-13.
4- To suggest major drown from the above Analysis.
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ACHIEVEMENTS OF BHEL
1- BHEL's R&D ops contribute Rs 1,151 cr to turnover in 2005-06 [May 19
2006JNEW DELHI: Bharat Heavy Electricals Ltd on May 18 said the
company has achieved a turnover of Rs 1,151 crore during 2005-06
through products developed by in-house research and development
operations. This revenue was eight per cent of its total revenue of Rs
14,410 crore in 208-09. This was the result of a constant thrust on
developing new technologies and products, improving existing
products and systems in terms of reliability, cost and quality through
in-house R&D efforts. The company invested about
Rs 150 crore on Research and Development of products and systems
during the year, which was among the highest in the country. The
company also filed for 84 patents, including three abroad, taking the
total number of patents filed till date to 339. Out of this, BHEL has
been granted 26 patents and the rest are in various stages of
processing. Thirteen copyrights have also been filed. R&D and
technology development are of strategic importance to BHEL as it
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operates in a competitive environment where technology is a major
factor.
2- BHEL to manufacture 800 mw thermal sets [Apr 14 2006]Catching up
with the advancement in global technologies, Bharat Heavy
Electricals Ltd (BHEL), through the efforts of its corporate research
and development division in Hyderabad, is now equipped to
manufacture 800 mw supercritical thermal power sets in the country.
Much sought-after by several players in power generation, including
APGenco, for its fuel efficiency, the super-critical technology has been
till now viewed as the sole domain of developed world. As part of its
effort to emerge as one of the global technology players in power
systems and other new technologies, the R&D division of BHEL has
started fresh initiatives by setting up centres of excellence for surface
engineering (CoE-SE) and intelligent machines and robotics (CIMAR).
According to the source, CIMAR would be set up at the Corporate
R&D division in Hyderabad at an initial investment of Rs 4.77 crore.
Among the new products, the BHEL Corporate R&D has successfully
completed design, supply and commissioning of automated storage
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and retrieval systems for four of the 13 warehouses at the Central
Ordnance Depot, Kanpur.
3- BHEL inks agreement with IIT Madras for new courses [Apr 25 2006]
Chennai: Bharat Heavy Electricals Ltd and the Indian Institute of
Technology-Madras have signed a memorandum of understanding for
collaborative research in the areas of design of boilers,
manufacturing, metallurgical engineering, mechanical engineering,
information technology and other areas of mutual interest. With the
help of BHEL, Tiruchi, IIT-M will establish a research centre at the
BHEL campus for the purpose. IIT-M will select MS/PhD research
scholars to work as research associates/project associates. BHEL on
its part will make available its research facilities and laboratories for
the purpose. The collaboration has also given scope for IIT-M to start
two new courses one on energy engineering and another on welding
engineering. The courses will start from the academic year 2006-07.
BHEL, which designs power plant boilers for handling a variety of
coals, is also interested in getting into coal research.
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4- BHEL secures Rs 80 cr export order from EETC [May 10 2006] NEW
DELHI: Bharat Heavy Electricals Ltd (BHEL) has bagged its largest
ever export order for transformers worth Rs 80 crore from Egyptian
Electricity Transmission Co (EETC). BHEL will supply 14 transformers
of 125 MVA to the state-run Egyptian company as a part of the order.
These transformers would be installed in eight sub-stations at
different locations in Egypt. The transformers, to be built at the
company's Jhansi plant, would be installed and commissioned under
BHEL supervision.The company had earlier executed a boiler project
at Al Arish in Egypt. With the order for transformers, BHEL has also
established itself in the transmission market in Egypt. BHEL had
earlier reported a six-fold increase in its export orders booking for the
fiscal ended March 31 at Rs 3,348 crore. These orders contributed to
one-fifth of the company's total orders booked last year. With this BHEL is
poised to achieve a quantum growth in its export business driven by
consolidation in existing markets and widening its export base through
expansion of existing basket of products and services and entering new
markets.
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5- BHEL net profit up 62 pc(the tribune,3 June 2006)BHEL has posted a net
profit of Rs 867.95 crore for the quarter ended March 31,2006, as
compared to Rs 534.28 crore for the quarter ended March 31, 2005, an
increase of 62.45 pc. Total income has increased from Rs 4,518.94 crore
in Q4 FY 04-05 to Rs 5728.96 crore for Q4 FY 05-06.lt has posted a
net profit of Rs 1679.16 crore for the year ended March 31,2006(FY 05-
06) as compared to Rs 953.40 crore for the uear ended March
31,2005. total income has increased from Rs 9977.36 crore in FY 04-05
to Rs 13820.02 crore for FY 05-06.The board of directors has
recommended a final dividend of 20 percent of equity of the company,
making it to total of 145 percent of the equity share capital of the
company for the financial year 2005-06. this includes the interim
dividend of 40 percent and special dividend of 85 percent already paid
during the year.
6- Workers' participation in management yields savings at BHEL, Hardwar
DEHRA DUN, Nov 16: Empowerment of employees through the "quality
the areas of import substitution, revamping of old machine tools and
safety over the past two decades based on the principle of people-
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building and mutual development, the "quality circle" was adopted by
the BHEL's Hardwar Plant in the year 1981 and has, since then, yielded
savings of nearly Rs five crore, according to Mr Ashwini Dhar, Public
Relations Officer of the organisation. The quality circle guides the
combined efforts and knowledge of workmen of a particular section. There
are more than four hundred quality circles actively working to enhance
the excellence on the process, quality and delivery fronts, Mr Dhar said.
Coordinators and facilitators alongwith other members of the workers'
groups identify problems and think of solutions collectively to prevent
defects and maintain overall quality. Mr Dhar said upgrading, renovation
and modernisation of hydro sets installed at various power stations
equipped with BHEL and non-BHEL equipment was being now
undertaken by the Hardwar unit through its research and development
efforts. The Hardwar unit of BHEL has received an order of Rs eight crore
from Power Development Corporation, Jammu and Kashmir, to carry out
renovation and modernisation of the lower Jhelum Hydro Electric Project.
This project is equipped with turbine and operator equipment supplied
by BHEL and the project was commissioned in 1980. Another order,
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worth Rs thirty crore, was received by the BHEL plant for renovation,
modernisation and uprating of the units of Ganguwal and Kotla Hydro
Electric Projects under Bhakra Beas
7- Management Board and will ensure an increased output of the
generating units by as much as twenty per cent. Earlier, one unit each
of the above machines was renovated and uprated by the BHEL
resulting in a similar output increase for these machines. More than a
hundred sets of different capacities supplied by BHEL, Hardwar, are
commissioned at various power stations all over the country. The
hydro sets are tailormade to suit varying hydro electric parameters. Mr
Dhar said that at the Hardwar Plant, excellent engineering and
manufacturing facilities are available to supply kaplan, francis, pelton
and reversible hydro turbines alongwith matching generators and
associated equipment. (UNI)
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CONTRIBUTION OF BHEL IN VARIOUS CORE SECTORS

POWER TRANSMISSION & DISTRIBUTION SECTORS
In the T&D sector, BHEL both a leading equipment-manufacture and a
system-integrator. BHEL-manufacture T&D products have a proven track record
in India and abroad.
In the area of T&D systems, BHEL provides turnkey solution of utilities).
Substations and shunt compensation installation set up by BHEL are in
operation all over the country. EHV level series compensation schemes have
been installed in KSEB, MSEB, MPSEB and POWERGRID networks.
Complete HVDC systems and state-of-the-art Flexible AC Transmission
systems (FACTS) can be delivered by BHEL. In the area of power distribution ,
BHEL provides turnkey solution for improving systems efficiency & reducing
losses through RPM of sub-stations,
SCADA and Metering Solutions, IT Solutions etc.
Industry Sector
Since its inception in 1982, the Industry Sector business has grown at
an impressive rate and today, contributes significantly to BHEL' turnover.
BHEL, today supplies all major equipment for the industries: AC/Dc machine,
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alternators, centrifugal compressors, special reactor columns, heat exchangers,
pressure vessels, gas turbine based captive co-generation and combined
cycle power plants, DC power plants steam turbine and turbo generator for
process industries, diesel engine based power plant, solar water heating
system, solar photovoltaic systems, electrostatic precipitators, fabric ffilters etc.
BHEL also provide solution for water management system, coal & as handling
plants. The industries which
Transportation sector
In the transportation field, BHEL product range covers: AC
locomotive, AC/Dc dual-voltage locomotive, diesel-electric shunting
locomotive, traction motors and transformers, traction electrics and control for
AC,DC and dual voltage EMU's, diesel-electric multiple unit, diesel power car
and diesel-electric locomotive, battery powered vehicles and solution for urban
transportation system including electric trolley buses, LRT&MRTs.
A high percentage of trains operated by Indian railways are equipped
with traction equipment and controls manufactured and supplied by BHEL.
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Human Resource Development Institute
BHEL has envisioned becoming "A World Class Engineering Enterprise
committed to enhancing stakeholder value". Force behind realization of this
vision and the source of our competitive advantage is the energy and ideas of
our 44,000 strong highly skilled and motivated people. The Human Resource
Development Institute situated in NOIDA, a corner-stone of BHEL learning
infrastructure, along with Advanced Technical Education Centre JATEC) in
Hyderabad and the Human Resource Development Centre at the
manufacturing Units, through various organizational developmental efforts
ensure that the prime resource of the organization - the Human Capital is
"Always in a state of Readiness", to meet the dynamic challenges posed by
a fast changing environment. It is their constant endeavour to take the
HRD_ activities to the strategic level of becoming active partner to the
(organizational) pursuits of achieving the organizational goals.
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1. CURRENT RATIO
Current Ratio= Current Assets / Current Liabilities
For the year ended 2011-2012

Particulars / Current Assets Current Working Capital
Companies Liabilities
Bharat Forge 185634 100560 1.846
Limited
Shre Ganesh 8452 4341 1.947
Forgings Ltd.
CFFP, BHEL, 9551 5608 1.7031
Haridwar
The position of the above three companies (starting from the best) in terms of the
Current Ratio calculated are :
Shree Gnesh Forgings Ltd., Bharat Forge Ltd & CFFP, BHEL, Haridwar
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2. QUICK RATIO
Quick Ratio= (Current Assets – Inventory)/ Current Liabilities
Particulars / Quick Assets Current Quick Ratio

Bharat Forge 155355 100560 1.544
Limited
Shre Ganesh 4870 4341 1.122
Forgings Ltd.
CFFP, BHEL, 1121 5221 0.2147
Haridwar
The position of the above three companies (starting from the best) in terms of the
Current Ratio calculated are :
Bharat Forge Ltd , Shree Gnesh Forgings Ltd. & CFFP, BHEL, Haridwar
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3. INVENTORY TURNOVER RATIO

Inventory turnover ratio = sales / inventory
Particulars / Current Assets Current Working Capital

Bharat Forge 155355 100560 6.06
Limited
Shre Ganesh 4870 4341 2.472
Forgings Ltd.
CFFP, BHEL, 1121 5221 3.085
Haridwar
The position of the above four companies (starting from the best) with respect to
the working capital to sales ratios are
Bharat Forg Ltd CFFP, BHEL, Haridwar; and Shree Ganesh Forgings Ltd.,
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4. CURRENT ASSETS TURNOVER RATIO

CURRENT ASSETS TURNOVER RATIO=SALES / CURRENT ASSETS
Particulars / Sales Current Assets Current Assets

Companies (Rs. In lakhs) (Rs. In Lakhs) Turnover Ratio
Bharat Forge 183504 185634 .988
Limited
Shre Ganesh 8855 8452 1.047
Forgings Ltd.
CFFP, BHEL, 27030 9551 2.83
Haridwar
The position of the above three companies (Starting from the best) as per the
Current Assets Turnover ratio are :
Bharat Forg Ltd., Shree Gandesh Forgings Ltd. And CFFP, BHEL, Haridwar.
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5. SALES TO CASH RATIO

SALES TO CASH RATIO = SALES/ CASH
Particulars / Sales Cash Sales to Cash

Companies (Rs. In lakhs) (Rs. In Lakhs) Ratio
Bharat Forge 183504 73628 2.492
Limited
Shre Ganesh 8855 1079 8.206
Forgings Ltd.
CFFP, BHEL, 27030 43.13 626.70
Haridwar
The higher the value of the sales to cash ratio, the better it is. But a higher ratio
would also indicate that the Balance of Cash is low as is the case of CFFP, BHEL,
Haridwar. Thus, a final conclusion from this ratio cannot be arrived at due to the
above mentioned reason, Moreover, CFFP maintains low cash balance and
transfer rest to the corporate office so, this ratio doesn’t show a true picture.
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6. CASH TO CURRENT ASSETS RATIO

Cash to current assets =cash / current assets
Particulars / Sales Cash Sales to Cash

Companies (Rs. In lakhs) (Rs. In Lakhs) Ratio
Bharat Forge 73628 185634 0.3966
Limited
Shre Ganesh 1079 8452 0.1276
Forgings Ltd.
CFFP, BHEL, 43.13 9551 0.0045
Haridwar
A final conclusion from this ratio also cannot be arrived at. The higher the cash
to current assets ratio, the better it is for a company from the liquidity point of
view . While a high ratio is indicative of better liquidity the opportunity loss
sustained by the company by keeping a large amount of idle cash should be
taken note of.
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BHARAT HEAVY ELECTRICAL LIMITED is committed to provide safe
and healthy working place to employees as an integral part of
business performance through:
• Compliance with applicable legislation and regulation and standards
• Designing all product and system safe to use and dispose
off,recycable ,wherever techno-economically feasible.
• Adopting approach based on elimination/reduction control for
prevention of pollution and occupational health and safety risk in all
operational activities.
• Appropriate structured training to employees and generate
awareness amongst customer ^contractor and supplier on
environmental and OHS issues.
4 Promote activities to minimise waste generation and
conserve,reuse ,recycle resources such as raw material,water oil ,power
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energy fueL
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SWOT ANALYSIS
STRENGTH (S); -
• Low cost producer of quality equipment due to cheap labour and
fully depreciated plants.
• Flexible manufacturing set up.
• Entry barrier due to high replacement cost of its manufacturing
facilities.
• Comprehensive turnkey experience from product design to

commissioning.
WEAKNESSES (W); -
• High working capital requirement due to its exposure to cash starved
SEBs (State electricity boards) and High WIP.
• Inability to provide project financing.
OPPORTUNITIES (O); -
• High-expected growth in power sectors (7000 MW/p.a. needs to be
added).
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• High growth forecast in India's index of industrial production would
increase demand for industrial equipment such as motors and
compressors.
THREATS (T); -
Technical suppliers are becoming competitors with the opening
up of the Indian economy. Fall in global power equipment prices
can effect profitability.
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Data Analysis
20012-13 2011-12 2010-2011
Liquid Ratio:-
20781.98. 15654.43 12586.41
19820.84 14420.11 10320.03
> Liquid Assets / Current Liabilities
1.04849 1.2196 1.0855
Fixed Assets turnover ratio
19304.64 17237.53 13374.03

11.7762 13.349
1639.29 1291.28 11.4616
1166.85
Sale / Fixed Assets
Current Assets turnover ratio
19304.64 17237.53 13374.03

27704.72 21062.97 16330.78
19304.64 17237.53 13374.03

29344.01 22354.25 17497.63
Sale / Net Current Assets
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Total Assets turnover ratio

Net Sale / Total Assets
Operating Profit Ratio
Operating Profit x 100 4465.81 x 100 3779.40 x100 2623.10 x 100

Net Sale 19304.64 22354.25 17497.63
= 23.133 16.90 14.991

NET PROFIT RATIO
NP. After tax x 100 2859.34 x 100 2414.70 x100 1679.16 x 100
Net Sale 19304.64 22354.25 17497.63
= 14.811 10.80 9.596
EXP RATIO
Material Cons. x 100 11820.87x 100 10181.86 x100 8146.52 x 100

Net Sale 19304.64 22354.25 17497.63
= 61.233 45.54 46.55
Retu. On Cap Employed
Op. Profit x 100 4465.81 x 100 3779.40 x100 2623.10 x 100

Cap Employed 9523.37 8934.14 7177.61
= 46.893 42.30 36.54
Cap. Turnover Ratio
Sales 1930.64 22354.25 17497.63

Cap Employed 9523.37 8934.14 7177.61
= 2.027 2.502 2.437
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FINDINGS
1-LIQUID RATIO:
> The liquid ratio varied from the year 2005 - 06 is 1.21 to 1,08 in
2006-07 and 1.048 in 2007-08. Which reflect that company is
efficiently managing its working capital position.
2-FIXED ASSETS TURNOVER RATIO:
> The decrease in the fixed assets turnover ratio in the year 2007-
08 is mainly due to an increase in the amount of fixed assets
other wise the sales of the company is continuously increasing
year after year.
•\ "
3-CURRENT ASSETS TURNOVER RATIO:
> The current assets turnover ratio is in the year 2005-06 is 0.818
to 0.818 is in the year 2006-07 and 0.696 in 2007-08. So the
current assets turnover ratio has also decrease in the same
year because of the increase in the net current assets.
4-TOTAL ASSETS TURNOVER RATIO :
> The total assets turnover ratio is 0.764 in the year 2005-06 and
0.771 in 2006-07 and 0.657 in 2007-08. The Total assets
turnover ratio has also decrease in the same year because of
the increase in the net total assets.
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5-OPERATING PROFIT RATIO

> The operating profit ratio is 14.99 in the year 2005-06
and .16.90 in 2006-07 and increased in 2007-08 is 23.13 it
reflect that the company is managing it resources in a proper
way because of which there has been a continuous increase in
the operating profit ratio year after year.
6- NET PROFIT RATIO

> The Net Profit ratio is 9.59 in the year 2005-06 and 10.80 in
2006-07 and 14.81 in 2007-08. It reflect that the company is
managing it resources in a proper way because of which there
has been a continuous increase in the net profit ratio year after
year.
7- EXPENSES RATIO
> The expenses ratio is 46.55 in the year 2005-06 and 45.44 in
2006-07 ana 61.23 in 2007-08. Which reflect that company has
expended and allocating more funds for expenses.
8-RETURN ON CAPITAL EMPLOYED

> The return on capital employed 36.54 in 2005-06 and 42.30 in
2006-07 and 46.89 in 2007-08. Which reflect that return on
capital employed is increase year after year.
9-CAPITAL TURNOVER RATIO

> The Capital Turnover Ratio is 2.43 in 2005-06 and 2.50 in 2006-
07 and 2.02 in 2007-08. The capital turnover ratio is more or
less .during the last three years but out of these years it has
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decrease to 2.02 in 2007-08 from 2.50 in 2006-07 which shows

that the capital employed is not being exclusively utilized for
generating additional revenues.
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SUGGESTION
1. Company should lay more emphasis on the management of

funds made in the long term assets. So that they can be in
accordance with the increase in the sales and over
investment shall be avoided.

funds made in the current assets. So that they can be in

funds made in the total assets. So that they can be in
4. Company needs to effectively allocate its expenses budgets

so that more revenue can be generated from the given sales.
5. Over employment of capital shall be avoided so that no

additional burdens is put on the financial position of the
company effort shall be made to increase the capital turnover
ratio which will further lead in an increase in the profits.
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CONCLUSION;
Shri A.K. Puri, CMD, BHEL says " We cannot smile easily, as we are in
serious business". Indeed we need to be serious about the strategies and
action plans of our business in BHEL in order to reach the targets that we
have set for ourselves. It is only the excellent planning and disciplined
implementation of our strategies that shall take us and our BHEL to the new
heights to make us the world class engineering and technological
enterprise. Let us, in this context remember these famous words:
If those who think to achieve,

Have a firm and focused mind,
They will realize what they thought of,
And even as they have thought of.
BHEL is a company of 43500 people. A company's progress depends up on

how its people think. It is the thoughts which are transformed into actions.
Let the young minds blossom with full of thoughts, the thoughts of
prosperity. We, therefore have a dream. Our dream is that we would adopt
a resolution for the proposed vision of " BHEL to be the Most preferred
Global company for all its stakeholders" before the year 2020. The strength
of 43500 people are our resources for the company's transformation. Let us
Light the Glory of "BHEL - Be the Most preferred Global Company" around
the World.
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BIBLIOGRAPHY
I.M PANDEY Financial Management
AGRAWAL & AGRAWAL Financial Management
R.P RASTOGI Financial Management
KHAN & JAIN Financial Management
ANNUAL REPORTS FROM 2000- 2001 TO 2008-2009
WEBSITES OF BHEL www.bhel.com
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RATIO ANALYSIS OF BHEL

RATIO ANALYSIS OF BHEL

SUMMER TRAINING REPORT

MS. JYOTI PANDEY

I express my sincere thanks to the management of CFFP (Central Foundry

I am personally grateful to MS. JYOTI PANDEY Department who took me as

I am also thankful to the other members of each Section of the Finance

With Sincere Thanks

5. THEORTICAL FRAME WORK

B.H.E.L. A CORPORATE GIANT

industrial sector, at par with international standards of efficiency".

BHEL Corporation - An Introduction

Employees -42489 (2012-13) MANUFACTURING

BHEL is India's largest engineering company and one of its kinds in

COMPANY'S BUSINESS MISSION AND OBJECTIVES

To maintain a leading position as suppliers of quality equipment,

To ensure a steady growth by enhancing the competitive edge of

To provide a reasonable and adequate return on capital employed,

primarily through improvements in operational efficiency, capacity

To enable each employee to achieve his potential, improve his

Achieve technological excellence in operations by development of

To fulfill the expectations which stakeholders like government as

BHEL's operations are organized around three business sectors,

BHEL has contracted so far around 240 thermal sets of various

Company in India with the capability to make simulators for power

RESEARCH AND DEVELOPMENT:-

BHEL has a corporate R & D center supported by R & D groups at

 Design manufacture and supply of countries first 17.2 MW

According to ex- CMD Mr. R.K.D. Shah, "BHEL is spending Rs. 60

constant endeavor to take the HRD activities to the strategic level of

# Thermal Sets, Hydro Sets, Motors & Prommashexport

# Bypass & Pressure Reducing Systems Sulzer Brother Ltd.

# Electronic Automation System for Siemens AG.

# Francis Type Hydro Turbines General Electric CANADA

# Christmas Trees & Conventional Well National Oil Well

# Steam Turbines, Generators and Axial Siemens AG.

# Cam Shaft Controllers and Tractions Siemens AG.

# HDVC ABB SWEDEN

# Programmable Controls ABB SWITZERLAND

# Gas Turbines General Electric Co. USA

CENTRAL FOUNDRY FORGE PLANT (CFFP)

Stainless Steel, Armour Steel etcr as per Indian and International

CFFP has been supplying sophisticated Castings used in power

Critical Forgings manufactured by CFFP include: HP, IP and LP

The details at CFFP are:-

> Steel Melting

1. 3Arc Furnaces - 10T, 30T I mp; 70T

Forgings (Upto 55T/piece wt.)

> Machining Facilities

OVERVIEW OF THE FINANCE FUNCTION

Finance is the life-blood of business .It is its very basis. Without

Finance function is the backbone of any organization. The finance

FUNCTIONS OF SALES SECTION

> Preparation of various MIRs relating to sales / debtors / cash

SPECIAL POINTS REGARDING SALES SECTION CFFP

1-: Sales of CFFP are mainly to its sister concern, which is

2-: 100% payment is made under IUTV basis.

FUNCTIONS OF INVENTORY SECTION

SPECIAL POINTS REGARDING THE INVENTORY SECTION

Standardizatioir.-Inventory section with the help of MPIC and Quality

FUNCTIONS OF WORKS SECTION

> Payment of contractors' bills including bills for advances

> FUNCTIONS OF COST SECTION