A Summer Training Project ReportOn

FINANCIAL ANALYSIS OF BHARAT ELECTRONICS

LIMITED(KOTDWARA)
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION(
U.P.TECHNICAL UNIVERSITY, LUCKNOW
)
2007-09 
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ACKNOWLEDGEMENT
My sincere thanks to the people at the Bharat Electronics Limited
(BEL), whosupported me in the completion of this project.I am grateful to the
_______________________ 
for providing me this academictenure at this reputed center of learning. I
convey my Gratitude towithout whose guidance this project could not have
been presented in this way.They have been constant source of inspiration and
encouragement.
M.B.A.
 
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CONTENTS
CertificateAcknowledgement Certificate from Department 
CHAPTERS
1.
OBJECTIVE OF THE STUDY
2.
RESEARCH METHODOLOGY
3.
STANDARDS OF COMPARISON
4.
ABOUT THE COMPANY
(BEL)1.1 INTRODUCTION TO BHARAT ELECTONICS LIMITED.1 . 2  
H I S T O R Y /   M I L E S T O N E 1.3 CORPORATE MISSION & OBJECTIV
ES1 . 4   Q U A L I T Y 1.5 RESEARCH & DEVELOPMENT (R & D)1.5.
1 AREAS OF R & D ACTIVITY1.5.2 RESOURCES AND INVESTMENT1.5
.3 AWARDS 1 . 6   M A N U F A T U R I N G   U N I T S 1 . 7   P R O D U C T S 1.
7.1 DEFENCE1.7.1.1MILITARY COMMUNICATIONS1.7.1.2LAND
BASED RADAR1.7.1.3NAVAL SYSTEM1.7.1.4OPTO
ELECTRONICS1.7.1.5TANK ELECTRONICS1.7.1.6ELECTONIC
WARFARE1.7.1.7SIMULATOR1.7.2 NON DEFENCE1.7.2.1TELECOMM
UNICATION1.7.2.2SOUNG VISION BROADCASTING
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1.7.2.3SOLAR PHOTOVOLTAIC SYSTEM1.7.2.4ELECTRONIC COMPONE
NTS1.7.2.5NICHE
PRODUCT1.8 JOINT VENTURE / SUBSIDARY 1 . 9   C O U S T O M E R 
PROFILE
5.
INTRODUCTION TO ANALYSIS FINANCIAL
STATEMENT1.10 OBJECTIVE OF ANALYSIS FINANCIAL STATEMENT1.
11 TYPES OF ANALYSIS FINANCIAL STATEMENT1.12 RATIO ANAL
YSIS1.12.1 INTODUCTION1.12.2 CLASSIFICATION
6.
DATA ANALYSIS & INTERPRETATION
7.
CONCLUSION & RECOMMENDATIONS
BIBLIOGRAPHY ANNEXURES 
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CHAPTER 1OBJECTIVE OF THE STUDY
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OBJECTIVE OF THE STUDY
The objective of the study during 4 weeks Training was to analyse the
financialstatements so as to evaluate the financial position of the Company.
Thesefinancial statements indicate the following factors.
1.)
Profitability of the Company
2.)
Financial Soundness of the Company
3.)
Shareholding Pattern
4.)
Past One Year Performance of the Share of BEL The project also aims at
providing details regarding:-o Income & Expenditure of the Company, which is
given in the form of P&L Account.o Assets & Liabilities of the Company in
form of Balance Sheet.o Shareholding Pattern and Distribution of
shareholding with the shareperformance of the share of past Financial Year (1
April 2007 – 31March 2008).
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CHAPTER 2RESEARCH METHODOLOGY
 
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RESEARCH METHODOLOGY
Information Regarding the organization’s Profitability, Financial Posit
ion andShareholding Pattern with past Year Performance of the Share of
BEL.Secondary Sources
I.
Annual Report (From 2004 to 2008)
II.
Interneto Based on the Information obtained from the above sources
conceptshave developed on which analysis could be
made.o Other sources including consulting with the employees
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CHAPTER 3STANDARDS OF COMPARISON
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STANDARDS OF COMPARISON
Ratio analysis involves comparison for useful interpretation of financial
statements.A single ratio in itself does not indicate favorable or
unfavorable conditions. Itshould be compared with some standards.
Standards of comparison may consistof:
1.)
PAST RATIOS : - 
Ratios calculated from past financial statements of some firm.
2.)
COMPETITORS RATIOS : - 
Ratio of some selected firm, especially themost progressive & successful
competitors at some point in time.
3.)
PROJECTED RATIOS : - 
Ratios developed using the projector or pro-forma financial Statements.
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CHAPTER 4ABOUT THE COMPANY (BEL)
4.1 INTRODUCTION TO BHARAT ELECTONICS LIMITED4.2 HIST
ORY/ MILESTONE4.3 CORPORATE MISSION & OBJECTIVES4 . 4  
Q U A L I T Y 4.5 RESEARCH & DEVELOPMENT (R & D)4.5.1 AREAS 
OF R & D
ACTIVITY4.5.2 RESOURCES AND INVESTMENT4.5.3 AWARDS4.6 M
ANUFATURING UNITS4 . 7   P R O D U C T S 4.7.1 DEFENCE4 . 7 . 1 .
1 MILITARY COMMUNICATIONS4 . 7 . 1 . 2   L A N D   B A S E D   R
ADAR4.7.1.3 NAVAL SYSTEM 4.7.1.4 OPTO ELECT
RO NI CS4. 7. 1. 5   T ANK  ELECT RO NI CS 4.7.1.6 ELECTO
N I C   W A R F A R E 4 . 7 . 2 . 1   T E L E C O M M U N I C A T I O N 4.7.2.2 S
OUNG VISION BROADCASTING4.7.2.3 SOLAR PHOTOVOL
T A I C   S Y S T E M 4 . 7 . 2 . 4   E L E C T R O N I C   C O M P O N E N T S 4.7.2.5
NICHE
PRODUCT4.8 JOINT VENTURE / SUBSIDARY4.9 COUSTOMER  PROFI
LE
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Introduction To Bharat Electronics Limited
The main objective of establishing public sector unit was shedding
socialobligation of the government towards the people in some
critical area
inwhich private sector units cannot be trusted. BEL falls under t
he later category. Bharat Electronics Limited (BEL) is a professional 
electronicscompany of India with a noteworthy history of pioneering
achievements.BEL was established in 1954, to meet defense need of
government of India.Since then, BEL has grown to multi-product, multi-unit,
technology
drivencompany.Today BEL’s infrastructure is spread over ISO-
9001/9002 certified modernmanufacturing units countrywide. Product mix of
the company includes a
broadspectrum ranging from tiny semiconductor to large radar sy
stems. Their manufacturing units have special focus towards the product range
like DefenseCommunication, Radar, Optical and Opto-
Electronics, Telecommunication,Sound and Vision Broadcasting, Electronic
Component etc.In the past fifty years this unit has augmented into
an organization having
nineunits. Employing about 25,000 employees. In addition to manufa
cturing anumber of products, BEL offers a variety of services like Telecom
Consultancy,Contact Manufacturing, calibration of test and measuring instruments
etc.
R&Dh a s   b e e n   m a j o r   s t r e n g t h   o f   B E L   w i t h   a   s t r o n g   b a s e   o f  
m o r e   t h a n   8 0 0 engineers. Its own teams design of BEL’s product. It has
it’s own a number of national & international awards for productivity, quality,
safety, standardizationetc.
The culture & philosophy at BEL can be described in its motto
“Quality, Technology and Innovation”
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