(An Internship Report on )

“BHARAT HEAVY ELECTRICAL LIMITED”

Submitted By

ABHILASH.S.A
4PM20BA001

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNSHIP GUIDE
DR. (HC) ARAVIND MALLIK.D.M
Assistant Professor
Department of MBA
PESITM
Shivamogga.

PES INSTITUTE OF TECHNOLOGY AND MANAGEMENT

Department of MBA
NH -206, Sagar Road, Shivamogga – 577 201
(2020-2022)
 PRERANA EDUCAIONAL & SOCIAL TRUST (R)
PES INSTITUTE OF TECHNOLOGY & MANAGEMENT
NH-206, Sagar Road, Shivamogga-577204 Karnataka, India
ISO 9001: 2015 Certified Institute | Affiliated to Visvesvaraya Technological University, Belagavi

Approved by AICTE, New Delhi |Recognized by Govt. of Karnataka

Telephone : 81470 53064-81470 53067|E-mail : [email protected] | Website :pestrust.edu.in/pesitm

CERTIFICATE

This is to certify that ABHILASH S A bearing USN 4PM20BA001, is a

Bonafede student of Master of Business Administration course of the Institute

(2020-2022 Batch), affiliated to Visvesvaraya Technological University,

Belagavi. An Internship report with special reference to BHARAT HEAVY

ELECTRICAL LIMITED is prepared by him under the guidance of

DR. ARAVIND MALLIK D.M. Assistant Professor, Department of MBA,

PESITM Shivamogga, in partial fulfillment of the requirements for the award of

the degree of Master of Business Administration of Visvesvaraya Technological

University, Belagavi, Karnataka.

Dr. Aravind Mallik D.M Dr. Prasanna Kumar T M Dr. Chaitanya Kumar M
Assistant Professor Professor& HOD Principal
Department of MBA Department of MBA Department of MBA
PESITM PESITM PESITM
Shivamogga Shivamogga Shivamogga

Examiners

Sign: Sign:

Name: Name:

Institution: Institution:
 DECLARATION

I, ABHILASH S A , hereby declare that The Internship report entitled “BHARAT

HEAVY ELECTRICAL LIMITED” with reference to prepared by me under the
guidance of Dr. ARVIND MALLIK D.M , faculty of M.B.A Department, PES
Institute of Technology and Management. I also declare that this Internship report is
towards the partial fulfillment of the university Regulations for the award of degree of
Master of Business Administration by Visvesvaraya Technological University,
Belagavi. I have undergone a Internship for a period of Four weeks. I further declare
that this Internship is based on the original study undertaken by me and has not been
submitted for the award of any degree/diploma from any other University / Institution.

Place: Shivamogga Signature of the Student

ABHILASH S A

Date:
 ACKNOWLEDGMENT
I feel greatly honoured to be part of our beloved and highly esteemed educational
institution – Department of MBA, PES Institute of Technology and
Management, Shivamogga. for developing me as a real MBA student.

I wish to place my deep sense of gratitude to Dr. Chaitanya Kumar M V, Principal,

PESITM, Shivamogga, and also Dr. R Nagaraja, CCA,PES Trust, Shivamogga,
for continuous support. who have been a constant source of inspiration to me and
have encouraged me to undertake and conclude this project successfully.

I am very much pleased to acknowledge the support of Dr. Prasanna Kumar T M

Professor & Head, Department of MBA, PESITM Shivamogga ; his innumerable
suggestion, keen interest and constant co-operation towards my project.

I am extremely grateful to Dr. Aravind Mallik D.M , Assistant Professor,

Department of MBA, PESITM, Shivamogga; who has helped me thought this
project and has given the shape with great interest.

Last, I am grateful to my beloved parents and my friends, Faculty for their

encouragement, which is the great source of my inspiration.

Place: Shivamogga
Date:
ABHILASH S A
4PM20BA001
 TABLE OF CONTENTS

Chapters Page
Particulars
No.

INTRODUCTION
1.1 Introduction about organization study

1.2 Industry Profile

1.3 Introduction about BHEL Ltd

Chapter 1
ORGANIZATIONAL PROFILE

2.1 Background

2.2 Profile of the BHEL Ltd

2.3 Nature of business

2.4 Vison And Mission
Chapter 2
2.5 Work Flow Model

2.6 Product and services profile

2.7 Ownership pattern

2.8 Achievements and award

2.9 Future growth and prospects

MCKINNEY’S 7S FRAMEWORK

3.1 Introduction about McKinney’s 7s

Chapter 3 framework

3.2 Porters 5 Force model

 SWOT ANALYSIS

4.1 Introduction to swot analysis

Chapter4
4.2 Strength of BHCL Ltd
4.3 Weakness of BHEL Ltd

4.4 Opportunities of BHEL Ltd

4.5 Threats of BHEL Ltd

ANALYSIS OF FINANCIAL
STATEMENT
5.1 Introduction to financial statement
Chapter 5
5.2 Key point to be consider in financial
analysis
5.3 Analysing of financial statement
5.4 Ratio analysis

LEARNING EXPERIENCE
Chapter 6
BIBLIOGRAPHY
 LIST OF TABLES

Table Page
Table
No. Number

1
 LIST OF FIGURES

Figure Page
Figure
No Number
 LIST OF GRAPHS

Grap Particulars Page

h No. No.
 BHARAT HEAVY ELECTRICAL LTD.

EXECUTIVE SUMMARY

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Chapter - 1

INTRODUCTION
1.1 INTRODUCTION ABOUT ORGANIZATION STUDY

Organization study is “An exam of how one constructs organizational structures, process,
and practices and how these, shape social relations and create institutions that finally
influence people.”

Study is the vital piece of the scholastic schedule of MBA. Association study is the
strategy to connect the hole among information and application through a series that will
empower organization themselves.

Bharat Heavy Electricals Limited is an Indians government owned engineering and

manufacturing enterprise based in India. It is under the ownerships of Ministry Heavy
Industries and Public is Enterprises, Government of India. BHEL is India largest power
generation equipment manufacturer.

1.1.1 OBJECTIVES OF ORGANIZATIONAL STUDY

 Job Satisfaction
 Finding the Right People
 Organization culture
 Leadership and conflict resolution
 Understand how to develop good leader
 Develop a good team
 Higher productivity

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

1.2 INDUSTRY PROFILE

BHEL is one of the largest engineerings and manufacturing enterprise in India and is one
of the Leading international companies in the field of power. Work force of 62,500 out of
which over 11,000 highly qualified engineers. BHEL has manufacturer unit. BHEL is
Associate in Nursing Indian government in hand engineering and producing enterprises
primarily based in New Delhi, India. it's underneath the possession of Ministry of serious
Industrial and Public Enterprises, Government India. Established in 1964, BHEL is India
largest powers generation instrumentality manufacturers.

BHEL is engaged in the design, engineering, manufacturer's, commissioning and servicing

of a wide range of product, systems and services for the core sector of the economy,
transmissions, industry, transportation, renewable energy, oil & gas.

It has a networks seventeen producing unit two repair unit, eight services centres, eight
over seas office, fifteen regionals centres, and infrastructure permitting it to execute quite
a hundred and fifty comes at sites across India and abroad. The corporate has established
the potential to deliver twenty,000 MW of power instrumentation to deal with the growing
demand for power generationssystem instrumentation.

It additionally has been commercialism its powered and business for over forty years.
BHEL international references square measure unfolds across over seventy-six countries'
across all the six continent of the planet. The accumulative over seas put in capability of
BHEL factory made power plants exceeds nine thousand MW across twenty one countries
together with Asian country, Oman, Iraq, Bhutan, Egypt and New Zeeland. Their physical
exports vary from lawman comes to once sale services.

a major boost to Defence Production under the ‘Make in India’ initiatives and toward
achieving. Self-reliance in the critical field of Defencesequipments, Goa Shipyards has
placed a maiden order on Bharat Heavy Electricals Limited. Humble Union Minister of
Heavy Industries initiated an advanced, best in class Data Centre at BHEL's Electronics
Division, Bangalore. BHEL has installed over ten thousand utility sets worldwide with its
installed base of supplied power generating equipment exceeding.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

BHEL is engages within the engineerings, producing, constructions, empowerment and

sexual union of a good vary of merchandise, systems and service for the core sector of the
economy, viz. power, transmissions, industry, transportations, renewable energy, and
defense.

Bhel record its highest ever commissioning synchronization in domestics and international
markets in marking a 59% increase over 2014–15. With the all-time high commissioning
of fifteen thousand hasretainer its market leadership positions during seventy-four
thousand percentage power sectors.

It also has been exporting its power and industry segment product and service for over 40
years. BHEL global reference are spread across over seventy six countrie across all the six
continent's of the world. Their physical exports range from turnkey projects to after sales
services Electrical instrumentation includes any machine supercharged by electricity. it
always consists of an enclosure, a spread of electrical parts, and infrequently an influences
switch. These lighting, major appliance, small appliance, motor, pump system. The
Corporate division at Hyderabad leads BHEL analysis efforts in an exceedingly variety of
areas of importances to BHEL's product vary. Analysis& development teams for every
product cluster at the producing divisions play a complementary role. BHEL has
established Centres of Excellences for, Machine Dynamic, Centre for Intelligent Machines
and AI, Compressors & Pumps, Centre of Excellence for Hydro Machines at Bhopal;
Power physical science and IGBT &Controllers Technology at physical science Division,
Bangalore, and Advanced Fabrications Technology and Coal analysis Centres at
Tiruchirappalli.

India corporation and also the only Indiana Public Sector Enterprises reckoning in 'The
international Innovating thousand of Booz & Co. an inventory of one,000 in public listed
corporations that are the most Indian Economic viz., Power Generation and Transmissions,
Industry's, Transportations manufacturing divisions, repair unit, power sector regionals,
service centres, subsidiaries and a large number of Project Sites spreading all-over India
and abroad enables the company to provide most suitable product, systems and service
efficiently and at competitive price. The company has entered into a number of strategical
joint ventures in supercritical coal fired power plants to leverage equipmentssale besides
living up to the commitment for green energy initiatives.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

1.3 INTRODUCTION ABOUT BHEL Ltd.

BHEL was established in 1964 unveiling the serious Electricals instrumentation business
in Asian nation. Serious Electricals restricted was united with bhel in 1974 In 1991, bhel
wasregenerates into a public company. Over time, it developed the aptitude to supply a
range of electrical, electronic, and mechanical instrumentation for numerous sectors, as
well as transmission, transportation, oil and gas, and alternative allied industries. the
majority of the company's revenue continues to be derived from the sale of power
generation instrumentation like turbine and Boiler. Instrumentation equipped by BHEL
recognized around fifty fifth of the overall put in power generation capability in Asian
nation. the corporate conjointly provides electrical locomotives to the Indian Railways and
defence instrumentation like the Super speedy Gun Mount military service guns factory-
made in partnership with the Ordnance industrial plant Board and simulator to the Indian
defence force.

BHEL is that the largest engineerings and producing enterprises of its kind in Asian
country and is one in all the leading international firms within the fields of power
instrumentation manufacturers. the primary plant of BHEL, established at Bhopal in 1956,
signalled the dawn of the significant Electricals trade in Asian country.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Chapter -2

ORGANIZATIONAL PROFILE

2.1 BACKGROUND:

BHEL could be a producer of every kind of electrical instrumentation with a personnel of,
seven thousand people. BHE improvement efforts have repeatedly been recognized by the
Indian National Productivity Council’s award for the simplest productivity performance.
The success of the BHEL P&Q movement is well-tried by savings of over fifty million
rupees in 1985/86 as a result of productivity comes. On the premise of BHEL
documentation, we have a tendency to shall describe however this company organizes its
P&Q movement.

bhel was established more than 40 years ago, ushering in the indigenous Heavy Electrical
Equipment industries in India – a dream that has been more than realized with a well–
recognized track record of performances. The company has been earning income
continuously since 1971–72 paying dividend since 1976- 77.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

2.2 PROFILE OF THE BHEL Ltd.

Table No: 2.1

BHEL Ltd.

Type Government of India Enterprise

Traded As BSE:500103
NSE: BHEL
ISIN INE257A01026
Industry Electrical equipments
Founded 1964;57 years ago
Headquarters New Delhi, India
Key people Nalin Shinghal

(Chairman & Managing Director)

Revenue Rs. 22066.64 Cr
Net income Rs. -1472.97 Cr
No. of Employees 31708(March 2021)
(Source:www.bhel.com)

2.3 NATURE OF THE BUSINESS

BHEL is engaged in the designs, engineerings, manufacturing, construction, testing,
commissioning & servicing of a wide range of product, systems &service's for the core
sectors of the economy, viz. power, transmissions , industry, transportation, energy, etc.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

The most important engineering & producing corporation of its kind India engaged in
style, engineering, construction, testing, empowerment & union of a good vary of
merchandise and service with over one hundred eighty product offerings to satisfy the
evergrowing desires of the core sector of economy.

2.4 VISION MISSION AND QUALITY POLICY

2.4.1 VISION STATEMENT;

 A world class engineering enterprise committees to enhancing stakeholder value.

 A global engineeringsenterprises providing solution for a better tomorrow.
 We are accountable for delivering superiors results that make a difference in the
lives people we touch.
 We are loyal to our customer to our company & to each other.
 meeting commitment made to external & internal customer.
 loyalty & pride in the companies.
 We are stewards of our shareholders' investments & that we take that responsibility
terribly seriously.
 We set high performance standard for ourselves as people & our grouping.

2.4.2 MISSION STATEMENT:

 To be an Indian multinational engineering enterprise providing Total business

solution through class products, system & services in the fields of energy, industry,
transportations , & other potential areas.
 Providing sustainable businesses solutions in the fields of energy, industry and
infrastructure.
 We area unit dedicate to the best levels of private & institutional integrity.
 We square measure loyal to our customer, to our company & to every alternative.
we have a tendency to work with highest moral standard& demonstrate a behaviour
that honest, decent, and fair.

2.4.3 QUALITY POLICY:

 In its quest to be world class BHEL pursue continual improvements in the quality
of its products, services &performances Leading to total customer satisfaction &
business growth through dedication, commitment & team work of all employee.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

 BHEL is the biggest designing & assembling venture in India in the energy-
related/foundation area, today.
 BHEL manufacture over one hundred eighty product underneath thirty major
product teams and caters to core sector of the Indian Economy viz., Power
Generation & Transmission, Industry, Transportation, Telecommunications,
Renewable Energy etc .

2.5 WORK FLOW MODEL

Fig No-2.1

(Source: www.bhel.com)

2.6 PRODUCT / SERVICES PROFILE:

An enormous organizational of 15 assembling Units situated at different significant

focuses all over India ,BHEL makes practically all basic high innovation items required
for power area like Gas Turbine, Steam Turbines,Turbogenerators, Boilers, Pumps &
Heatexchanger, Pulverisers and electrical shift gear 's.

2.6.1 INDUSTRIAL SYSTEMS

 Coal Handling Plant and Ash Handling Plant as well as & Structural, Mechanical,
Electrical works and systems.
 Mine Winder systems.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

 Electrics, Drives, Controls & Automation Systems for process & compacting of
Raw Materials, Iron. Making, Primary & Secondary Steel creating, Casters & steel
Finishing like Mills & method Lines for each long product & flat product.
 Raw Material Handling System including Civil & Structural, Mechanical,
Electrical and Automation System for Steel and other industries.
 Electrics & Automation Systems for High Current Rectifiers of Smelter and
Processing Mills for aluminium Plants.

2.6.2 BOILERS

 Steam generators for utilities, ranging from 30 to 800 MW capacity, using coal,
lignite, oil, natural gas or a of these fuels; capability to manufacture Boilers with
supercritical parameters up to 1000 MW unit size.
 Steam Generators for Nuclear Power Plant.
 Gravimetric feeder/ volumetric feeder.
 Acoustic Tube leak Detection systems.

2.6.3 PIPING SYSTEMS.

 cycle piping, Constant load Hangers, Variable spring Hangers, Hanger

components, Low Pressure piping including circulating water piping for power up
to thousand MW capacity including Super Critical sets.
 Piping systems for Nuclear Power Stations, Combined Cycle Power Plants &
Industrial boilers and process industries.
 Prefabricated piping/ duck spools to cater to refinery segment complying with
National Association of Corrosion Engineers.

2.6.4 STEAM TURBINES

 Steam Turbines up to 1000 MW rating for thermal sets up to 700MW ratings for
Nuclear Power Plants.

2.6.5. CASTINGS AND FORGING

Heavy castings and forgings of creep resistant alloy steels, stainless steel and other grades
of alloy steels meeting stringent international specifications for components of sub critical,
supercritical and ultra super critical technology.

2.7 OWNERSHIP PATTERN

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Holder's Name No of Shares % Share Holding

No Of Share 3482063355 100%
Promoters 2199650402 63.17%
Foreign Institutions 162729458 4.67%
N Banks Mutual Funds 42031729 1.21%
Central Govt 1500 0%
Others 119458607 3.43%
General Public 568742002 16.33%
(Source:www.economictimes.com)

2.7 ACIEVEMENT AND AWARDS:

 Bharat Heavy Electricals Limited (BHEL) has been ranked the Ninth Most Innovative
Company in the world by the renowned US business magazine Forbes in 2011
 BHEL wins ICWAI National Awards for Excellence in Cost Management for the sixth
consecutive year; maximum number of awards conferred on BHEL among public and
private sector companies.
 BHEL's Innovativeness gets Global Recognitions; Forbes ranks BHEL at No.9 in the
list of the World's 100 Most Innovative Companies.
 BHEL gets Golden Peacock Award 2011 for Occupational Health and Safety.
 BHEL bags EEPC's Top Export Award for the 20th consecutive year.
 Installed equipment for over 90,000 MW of power generation –– for Utilities, Captive
and Industrial users.
 Supplied over 2,25,000 MVA transformer capacity and other equipment operating in
Transmission & Distribution network up to 400 kV (AC & DC).
 Supplied over 25,000 Motors with Drive Control System to Power projects,
Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.
 Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway
network.
 Supplied over one million Valves to Power Plants and other Industries.
 BHEL wins Excellence Award for the year 2006–07 for the maximum growth rate in
Market Capitalization.

2.8 FUTURE GROWTH AND PROSPECTS:

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

BHEL said they will diversify beyond power and thermal sectors. “We will grow from a
power Sector Company to a global engineering organization. The company can look to
diversify into sectors like Railways, Defense, Aerospace and Oil & Gas.

BHEL has won a impressive order for the supply of state-of-the-art Electric Buses along
with charging transportations of these buses for Gorakhpur City. The order has been placed
on BHEL by the Urban Transport Directorate, Luck now. This low floor, disabled-friendly
Electric Buses will be deployed by at the Gorakhpur airport. This is in line with the
company’s renovation initiative of going up into new markets /businesses. extra, as part of
the conversion journey, BHEL is consolidate and reinvigorating the initiative taken in
Defense& Aerospace, Water, E-mobility, Batteries, Renewable and Transportation
business.

Amidst stiff competitive bidding, BHEL has won its first money-making order for state-of-
the-art Battery liveliness Storage Systems from The Energy and Resource Institute. The
company has signed a agreement with TERI for setting up of a cumulative 410 kWh
Battery Energy Storage Systems in the National Capital Territory of Delhi. The tender was
issued by TERI on turnkey basis under UI-ASSIST (US-India Collaborative for Smart
Distribution System with Storage) initiative with BSES Rajdhani Power Limited (BRPL).

BHEL’s scope of work in the bond includes design, supply, testing, installation &
commissioning along with a broad five-year AMC of the systems at three different
locations. The project will be executed by BHEL’s Electronics Division, Bangalore. BHEL
has a paying attention approach in the capable ground of BESS and has by now
commissioned a 1 M W h at its Corporate R&D Centre located in Hyderabad. The state-of-
the-art structure is commissioned with three different battery technologies viz. Lithium-
Ion, press forward Lead-Carbon and Flow batteries.

BHEL has embarked upon a renovation drive and is keenly pursuing diversification of its
portfolio in non-coal segments viz. Energy Storage, E-Mobility, Oil & Gas, Transportation,
Defense and Aerospace, etc. With its vast knowledge of more than five decades of
indigenized manufacturing, BHEL is geared to supply tailor-made solutions for Battery
Energy Storage Systems to meet different kinds of shopper requirement.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

CHAPTER-3

MCKINNEY’S7S framework

3.1 INTRODUCTIONON TO MCKINNEY'S 7S FRAMEWORK

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

The 7-S-Model is otherwise called McKinsey 7-S. This is on the grounds that the two
people who fostered this model, Tom Peters and Robert Waterman, have been specialists at
McKinsey and Co about then. Thy distributed their 7-S-Model in their article
"Construction Is Not Organization" (1980) and in their books "The Art of Japanese
organization" (1981) and "In Search of Excellence" (1982) McKinney's.

Fig No.3.1

(Source:www.wikipedia.com)

The structure is particularly utilized as a company investigating apparatus to gauge and

notice changes in the interior exercises of an association.

The above model is anticipated on the possibility that, assists an association with
performing great inside the market, these over seven components should be alloted
accurately and commonly reinforce the association. Along these lines, that the structure is
frequently used to help and distinguish that what must be reassigned to further develop
execution.

The framework helps to restructuring, organizational merger, change of leadership. The

framework is often used to understand how the organizational elements are associated with
one another, then guaranteed that the wider impact of changes made in one area is taken
into consideration effectively by the company.

The McKinney's frame works are as follows.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

1. STRUCTURE

Introduction

The structure of Organization shows in what way occasions such by

using way of undertaking assignment, administration and supervision
are intended to the attainment of organizational goals.

The specific agency are regularly prepared in countless wide-ranging

customs, maintained its goals. The shape of an corporation will study
the patterns in which it operates the properties and achieves.
Organizational structure licenses the stated arrangement of tasks for
greater roles and methods to unlike company’s branch, workgroup, and
specific.

Structure makes some variants in the organizational occupied

movements and advantages to produce the motivation on which normal
functioning occasions break. It shows which individuals get to make
thru which administrative activities, and henceforth their opinions
degree figures the organization's activities. Structure can also be
measured as the keen-sighted a glass by which men and women look at
their point of view around the organization.

a. Organization structure.
Organization structure of BHEL Ltd. Indian government own engineering and
manufacturing project based in New Delhi, India. It is under the tenure of
Ministry of Heavy Industries and Public Enterprises, Government of India.
Established in 1964, BHEL is India's largest power generation equipment
manufacturer.

Fig.No.3.2

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

(Source:www.bhel.com)

a. Structure of Finance department.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Fig. No.: 3.3

(Source:www.bhel.com)

Function of key people in Finance Department

 The BHEL full structure is Bharat Heavy Electrical Limited. It is one of the biggest
assembling and designing organizations in India.
 BHEL is likewise engaged with development, overhauling, and assessment of a
wide scope of items from key areas like transportation, energy, water, oil and gas,
guard, and transmission.
 BHEL is additionally engaged with development, overhauling, and assessment of a
wide scope of items from key areas like transportation, energy, water, oil and gas,
protection, and transmission.
 BHEL and HEIL were merged under one single entity BHEL.
 BHEL had started supplying 500 MW thermal power equipment.

C. Structure of Human resource department.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Human Resource Management (HRM or HR) is that the deliberate way to deal with
the unequivocal administration of people inside a partnership or association with
the end goal that they food their reasonable updating a feasible benefit. It is wanted
to experience functional show in limit of a chief's purposeful goals. Human asset
the board is for the most part restless with the administration of people inside
associations, coordinated on arrangements and frameworks.

Fig.No.3.4

(Source:www.bhel.com)

Function of key people in Human resource development

Human resources departments’ square measure typically thought-about an important a part

of several organizations. They’re gift inverted industries, and combat many various
functions in their every day responsibilities.HR departments act as a liaison between
employers and staff to assist guarantee each square measure well equipped to try and do
their jobs safely and effectively. Whereas some organizations have their own department,
others might use an out of doors firm. In either capability, managers facilitate maintain the
structural and structure integrity of the work .Might typically be thought to be the
disciplinary arm of an organization, in reality, holds several validate responsibilities just
like the ones we’ll discuss on this page.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

d. Structure of marketing department

The structure of a selling department can vary supported the requirements of the business.
Typically, there's a frontrunner, a high-level govt United Nations agency establishes the
methods and oversees the operations of the team. Every manager organizes his or her team
of workers members and specialists United Nations agency conduct the work of their
cluster.

Fig. No.: 3.5

(Source:www.bhel.com)

Function of key people in marketing department .

The Marketing Department plays an important role in promoting the business and mission
of a corporation. It is the features of your company, coordinating along with producing all
materials in place of the business. It’s the Marketing Department's job to achieve
something in dead set prospects, customers, investors and / the community, while create an
overarching image that represents your business in an exceedingly helpful light.

2. SYSTEM

Introduction

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Systems states to actions and procedures like management information

systems, presentation appraisal systems, expertise systems, industrial
processes, and control progressions etc. that benefit in plane behavior of
business enterprises. Corporations establish well-designed schemes and
procedures to upsurge administrative efficiency.

The processes and procedures of the corporation, which disclose business’s

daily actions and how conclusions are made. Systems are the part of the
corporation that controls how business is done and it should be the main
attention for managers during organizational transformation.

Each organization originates its force from some key systems: marketing,
money, manufacture, procurement, human resources, & so on. The other
systems achieve a solidification job.

a. System at finance department

Since each finance department function has a list of finance commercial procedures
elaborate, drawing up procedure maps can take a strong kind of the responsibilities and
people involved.

Although finance procedure charting can improve understanding, it can’t straightly

progress competence. The finest method to attain that is to generate workflows and
mechanize them from start to finish.

Once you mechanize finance workflows, you’ll be gifted to display improvement in real
time. These resources that you can make developments to the procedure while it is
consecutive, thus attract competence levels.

A serious benefit to mechanized finance department procedures is the capability to

examine presentation. You can classify where pauses are happening, or inadequacies are
rowing, and fix them for better procedure effectiveness. Occasionally, workflows may

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

need added responsibilities or the elimination of immaterial or terminated tasks. These can
also be transported to bright with analysis.

a. System Human Resource department

Respectively organization machinery towards the understanding of one dream. The same is
attained by preparation of positive plans and accomplishment of the same, which is ended
by the HR division. At the base of this plan preparation lie numerous procedures and the
efficiency of the previous falsehood in the careful project of these procedures.

The following are the various HR processes:

1. Human asset arranging (Recruitment, Selecting, Hiring, Training,

Induction, Orientation, Evaluation, Promotion and Layoff).
2. Worker remuneration and Benefits Administration.
3. Presentation Management.
4. Employee Relations.

The effective crafty of these procedures apart from other belongings hang on the level of
post of each of these. This means that each procedure is submissive to other. You start
from Human resource Planning and there is a repeated value adding at every footstep.

C. System at marketing department

BHEL analysis the whole with the selling join framework that covers the four (Product,
Price, Place, Promotion). There are many selling ways like product modernization,
valuation approach, promotions designing etc. These business ways, supported BHEL
selling combine, facilitate the whole succeed. Bharat Heavy Electricals Limited is one in
all the highest heavy electrical manufacturing companies in India. BHEL manufactures a
range of industry systems and products in its marketing mix. Its major areas of operations
include captive powers projects, transmission, transportation, Renewable, water, Industrial
products and defense. BHEL make industrial products for Fertilizer, Paper, Refining, Steel
and Sugar industries. Bharat significant Electricals restricted BHEL was incorporated in

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

1964 and has been the backbone of India’s significant instrumentation business ever since.
it's one in every of India’s largest business and producing group. It’s a hundred and eighty
merchandise providing meet the wants of many sectors of the economy like Power, Oil and
Gas, Water and Defense, Renewable Energy.

2. STRATEGY

Introduction

BHEL has launched a transformational approach to deal with various business challenges
as well as reject in its ancient marketplace for thermal rule instrumentation, troubled
technology developments and progressively rigorous client needs. a part of the makeover
strategy, the corporate has preoccupied the task of reviewing and revamping processes,
redesigning business models, increasing into new markets / businesses and developing a
committed personnel with a powerful leadership pipeline in the slightest degree levels. On
the standard front, the corporate has recently launched a company-wide value First'
initiative aimed toward growth the standard culture, centering on delivering world category
product and services.

Innovative marketing strategy

The tank commissioning cycle will reduce from 100 days to 80 days by effectively
implementation the main ‘Boiler Acid cleaning’ without its light-up, by using an support
Boiler. This original method is a major change in the commissioning process followed so
far & will aid in early synchronization of the unit. Extensively, the process now
successfully proven at the North Kanpur project, has paved the way to be adopted at other
projects being executed by BHEL. The company declared 2020 as the Year of
Transformation & has taken a slew of initiatives across various functions including for
achievement of long term EPC excellence & the above success is an additional step in this
road.

Extensive reach: BHEL also has general experience in executing EPC project in power
plants other trade sector. BHEL supplied equipment account for 60% of India's power
generation, with an global installed ability base of 185 GW coal, lignite, nuclear, stellar,

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

hydro. BHEL has also served several overseas clients, with a world footprint in over 83
country.

4. SKILLS

Introduction

Skills are the capabilities that firm’s staffs achieve very well. They also comprise
competences and capabilities. Throughout organizational alteration, the query frequently
rises of what skills the corporation will really want to strengthen its new strategy or new
structure. Skills contain the aptitudes and competences of the organization’s staff and
management, which can control the kinds of attainments and work the corporation can
complete. There may come a time when a corporation measures its obtainable skills and
chooses it necessity make variations in instruction to attain the goals set forth in its plan.

Skills available at BHEL Ltd.

Employees of BHEL honed skills through e-learning throughout internment to combat

COVID-19, the state-run engineering firm aforementioned on Friday. Undaunted by the
unexampled halt in operations because of the internment, BHEL has achieved a serious
milestone by with success implementing an enormous worker engagement initiative, it
aforementioned in an exceedingly statement. In the past one month, the corporate has
reached bent on nearly twenty one, 000 staff to keep up continuity and to facilitate the
transition to work-from-home. addition to that specialize in the health and upbeat of its
workers, BHEL has effectively used this imprisonment as a chance to sharpen the talent set
and creative thinking & productivity of workers, BHEL said. The company has created
quite 230 learning opportunities through numerous e-learning courses / webinars /
coaching on technical, functional, social control and activity domains.

 Technical skills are sets of capacities or information used to perform useful

assignments in the space of science, artistic expression, innovation, designing, and
math.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

 Human skills, which is the aptitude that staff essential to allow them to work with,
Inspire and appreciate other individual and folks such as clients, both separately
and Group setting.

 Conceptual skill is the talents that allocate a private to hold complex scenario &
develop clever solution. These skills are valuable within the workplace because
people who have them can come near complicated workplace situations from
unique perspectives. Someone with outstanding theoretical skills can transform
their thoughts into action-driven solutions.

5. STYLE

Introduction

Earlier style was characterized as being agent, considering provisions such authority styles,
the authoritative construction and the general manner by which supervisors act in relations
of how they utilize their period, how they sum accomplishment and greatness also, that
they are so presented to commitments, mistakes and creativity.

Leadership style at BHEL Ltd.

These Leadership style has been grouped under three heading

 Autocratic style

 Autocratic style is a management way where in one someone controls all the
decision and takes very slight inputs from other assembly members. Autocratic
style make choices or decisions based on their own idea and do not involve others
for their submission / advice.
 Autocratic style will be caring in situation where a production faces regulars
change or a crisis. It will be able to react to the situation promptly compared to
other control styles, because of efficient managerial structure and quick decision-
making ability.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

 Consultative styles

 Consultative style entails asking key people for their opinion and allows them time
to method the problem and solve for what they feel was the best likely solution.

 It assumes the persons occupied are more adapt at making best feasible decisions.

 Another reason a principal can choose the counseling style is because they are poor
enough to listen and think about all views before coming to a final decision.

 Collective / Group style

 Problems are shared with the assistants, where the assembly tries to reach
agreement on the conceivable solution for the recognized problem. The manager
will only deliver guidance without manipulating group & lastly manager will be
enthusiastic to tool any solution, which as the funding of the whole group.

6. STAFF

Introduction

The staff influences concern the human or folk’s supply organization purpose within the
organization. Procedures are applied to employed, choice and grow entity approaches for
presenting the new workers to the corporation ways of serving to manage the occupations
of individual and their basic values.

Staff profile at BHEL Ltd.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

 The sudden spurt in orders and increasing demand of power equipment

has forced the BHEL management to go for fresh recruitment after a
gap of several years.
 Though the process of recruiting people is under way, the corporate management in
New Delhi is also keeping an eye on these developments and is directing the local
units to go for hiring both technical and non-technical people.
 Another indication of the growing demand is the fact that many units of BHEL
including Bhopal, Trocheand Ranipet etc recently undertook the first recruitment in
many years.

7. SHARED VALUES

Introduction

The ultimate part of the McKinsey 7S model advises that supervisory ideas of the
organization should be obvious through both its outward work and its inner culture.
Ignoring your Shared Values puts your corporation at danger of flattering misplaced in the
crowd of your rivalry and staffs may not feel as personally tied to their roles, chief to
declining output.

Shared values at BHEL Ltd.

 BHEL ltd. goals to expand a sense of character behind respectively of their

merchandise, incorporating advanced project ideas in as modest and available as
possible.

 Its key objective is to advance their excellence in their merchandise by offering

diverse verities of the products

 Within, BHEL ltd. frequently identifies events and inventions from folks and
squads.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

 Flexible working hours are accessible to confirm BHEL ltd. staffs are able to work
in a way that outfits them finest.

3.2 PORTER'S 5 FORCE MODEL

 Competitive rivalry.
 However, with control support, private participation is likely to increase in the
coming years to take improvement of huge order for power.
 So generally the passion of aggressive rivalry is medium.
 Power Manufacture Company no ready for action rivalry as exact for power is way
above its bring in all the power generates is used up.
 Power equipment market –markets leader like BHEL is opposite tough great effort
from L&T, Alston, Dolan and most importantly Chinese suppliers.
 Major order of tank, turbines and producer grab by Chinese supplier from a large
amount of the private sector customers.

 Suppliers of control

 Coal is majorly used as a feed for generate influence.

 The provider of coal in India is imperfect and hence coal players are in central
position.
 Power company are essential to opening coal if the household supply is not
sufficient, which proves to be a luxurious affair.
 With company like Lance, Adana power exchange coal mines in Indonesia, Australia
etc. to trade in better grade coals than available in India, market dominances of
government. Companies like coal India will subside gradually.
 However looking at the present situation, the power of suppliers is high.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

 Buyer power

 Industrial consumer has huge demand for power.

 Their bargaining power is low in India as the number of power companies to buy
from is limited in number. Hence power companies are in better position.
 Retail customer- government regulates the power sector to ensure supply of power
at reasonable prices but this regulation is limited.
 Peak deficiency is much more in every section and it is about 12% on all India
basic which allow suppliers to dictate conditions with the buyers.
 Generally, the bargain power of buyers is medium.

 Threat of substitution

 Power does not have substitute but it can be generate from different sources of
authority.
 Now thermal power is foremost in India, coal being the major Raw material.
 Coal accessibility is limited and therefore power from nuclear, hydro and other
Renewable Sources could be used as replacement for thermal power in future.
 union with various country for nuclear association will give major impetus to
nuclear power plants.
 Although demand for power outstrips its supply, going forward, thermal power
plant companies have threat from non-thermal power generators.
 Hence the threat of replacement products is medium.

 Threat of new entries

 Highly capital exhaustive industry and consequently demand huge speculation.

 Power producers Behemoth like NTPC, SEBs contributing around 85% of total
power twisted.
 Ditto for power grid corp. of India in communication and Distribution sector.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

 Major plans by big companies like dependence power , Adana power, Lancet. to
make entry into control sector after market opened up for private sector through
electricity act 2003 and subsequent reforms.
 However obtain narrow approvals; fuel linkage, land etc. still remain the major
bottleneck.
 Hence the threat of new applicant appears to be low.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Chapter: 4

SWOT – ANALYSIS

4.1 INTRODUCTION TO SWOT ANALYSIS.

SWOT analysis be a tactical planning system used to assistance a person or organization

recognize strengths, weaknesses, opportunities, and threats connected to corporate rivalry
or project development.

This method, which functions by 'peeling back coats of the corporation’s is intended for
usage in the initial phase of decision-making procedures & can be used as an device for
assessment of the tactical condition of a city or organization. It is proposed to stipulate the
objects of the commercial scheme or development and identify the internal and external
influences that are favorable and unfavorable to attain those purposes. Operators of a
SWOT study frequently ask and answer queries to make expressive material for each class
to make the tool valuable & recognize their viable advantage. SWOT accepts that strengths
and weaknesses are regularly internally-related, whereas opportunities and threats usually
attention on the external environment. The person's name is contraction for the four
parameter the method examines:

 Strengths: facial appearance of the business or development that gives it a benefit

over others.
 Weaknesses: characteristics of the business that place the business / development
Difficulty comparative to others.
 opportunity: essentials in the situation that the business or plan could realization
Its assistances.
 Threats: basics in the environment that might basis bad luck for the business
or table.

SWOT examination can be new in any executive situation once a (objective) is clear, not
just profit looking organization. Examples contain nonprofit organization, governmental
units, & individuals. SWOT investigation might too be used in pre-crisis preparations and
defensive emergency management. SWOT analysis may too be used in making. A
reference during a faculty study.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

4.2 STRENGTH OF BHEL Ltd.

 Strong bottom in Engineering-BHEL has a strong base in business & a

stable industrial connection. It is the biggest power making tools manufacturer that
manufactures various products like Gas and Steam Turbines, Boilers, Electric
Motors, Electric Locomotives, Generators, Heat Exchangers, Switchgears and
Sensors, Automation and Control Systems, Power Electronics, and program
Systems.
 Continuous profits - BHEL has been generating continuous profit & paying
dividend since the year 1974. This is a great muscle to the companys.
 Support from collaborate- BHEL has great support from the collaborators
that have helped them to obtain many modern technologies and then transform it to
suit the Indian conditions.
 Huge customer base - BHEL has a huge shopper base in the domestic
business that leads to being popular & having a greater direct in the marketplace.
 Huge products- BHEL produce almost 190 products & more than 30 major
product groups.
 Quality products - The Quality foundations of BHEL is somewhat strong.
During the year 1970-90, BHEL has implemented Quality Manual for the entire
organization that includes systems, farm duties, procedures, and processes.
Succeeding tier documents like standard industrial procedures, test plans, process
sheets, non-conformance handling systems, and procedures were implemented
during this time. Since that time, BHEL is leading in Calibration System, Quality
development, and Quality Circles impression in India.
 Research & development - BHEL has always faced a strong weight on
innovation & creative advancement. It has led to the develop many technologically
competitive products &services. Their labs at the explore & Development wing
have undeviating Magnet Machines, Insulation, & Chemical Sciences , Intelligent
Machine Control , Electrical Machines, Power Electronic Systems, High Voltage
commerce, GIP, & Switchgear Development, & many more .

4.3 WEAKNESSES OF BHEL Ltd.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

 The capacity for certain Activities - There have be few situation have
BHEL had the lack of ability to provide supplier’s credit, finance of power projects,
and soft loan.
 Longer Delivery cycles - BHEL deliver goods by taking more time than
international competitors. This could be a weakness having longer escape cycles
would have a huge impact on the big business.
 Less Marketing infrastructure - BHEL lacks helpful selling infrastructure
that is, in fact, a weak spot for the company.
 Procurement process - The procurement process in BHEL is weighty, & they
are subject to audit.
 PUS Status - PSU status is yet another fault for BHEL as it is subject to the rules
& regulations. It is enforced to carry a huge amount of labor force that is unable to
reduce.
 Criticism – The BHEL job , 1340-megawatt coal supremacy plant to be
found in Ram pal that is close to the Sunderland Mangrove Forest for Bangladesh-
India Friendship Power Company is a joint risk. This project has faced a lot of
condemnation for impacting the environment & the likely harm that could cause to
the prime mangrove jungle in the world.

4.4 OPPORTUNITIES OF BHEL Ltd.

 Demand for power Domain - There exists a massive claim in the power
domain to produce more tools. This provides a huge opening for BHEL.
 Aging power plants - As BHEL is into the engineering for a long point, there
are many undergrowth that are quite old & require services & spare parts. On doing
this, BHEL can carry out production faster & attach more visibility in the promoter.
 Increase in Defense Budget - A boost in defense budget sees a lot of split for
BHEL as it will increase the top stroke for them.

 Joint Venture with Siemens - Power Plant piece progress Ltd, which is a
joint venture with Siemens, is a tie-up that will be beneficial & provides a lot of
scale for the business.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

4.5 TREATS OF BHEL Ltd.

 Competitors - BHEL faces a lot of struggle from both the international &
general companies.
 Associations in the industry - relatives in the production have drastically
reduced the company’s turn over. This is, in fact, a big risk to the company.
 Increase in Small Contractors - improved in the capacity of small
contractors is a big threat to BHEL that leads to charge wars.
 New players in the Market - Emerging new group of actors in the sell is
Also a serious threat to the company.

CHAPTER : 5

ANALYSIS OF FINANCIAL STATEMENT

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

5.1 INTRODUCTION TO FINANCIAL STATEMENT ANALYSIS.

Financial statement analysis is the procedure of review & examining a corporation's

economic statements to variety better economic decisions to make income in future. These
statements contain the income statement, balance sheet, & statement of cash flows, notes to
accounts & a statement of changes in equities’. Financial statement study is a process
connecting exact methods for appraising risks, presentation, financial health, and future
predictions of organizations.

It is used by a diversity of investors, such as acknowledgment and fairness investors, the

government, the community, and decision-makers in the group. These investors have
diverse welfare and apply a range of unlike methods to meet their wants. For example,
equity investors are interested in the long-term incomes control of the organization and
maybe the sustainability & development of dividend expenditure. Creditors need to
confirm the interest & principal is rewarded on the organization’s debt securities when
owed.

General approach of financial statement examination contains original investigation; do

pant examination, straight and vertical study & the use of financial ratios. Past information
mutual with a sequence of assumptions & alterations to the financial material may be used
to venture future production. The chartered financial forecaster title is available for
specialized financial predictors.

5.2 KEY POINTS TO BE CONSIDERD IN FINANCIAL ANALYSIS

Finance is game of information, it’s a robust game of numbers and accepting the
potential of those numbers provide root origin to the success of a corporation. Obtaining
well-defined & explicit information from the financial facts & figures is always remained
most demanding in the financial industry, from that a view of financial analysis & its
elements we learn through this conversation.

Financial examination is adopted for investigative reasonable patters, setting up fiscal

policy, making long-term plans for various business activities, & analyzing projects or
groups for investment. This can be perfected with the fusion of financial numbers and data.
Financial health is one of the finest pointers of your industries likely for long-term

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

development. The initial step to improving financial knowledge is to conduct a financial

study of the business. A correct study contains of five main areas, respectively containing
its individual set of data opinions and ratios.

 REVENUE

Accounted as the core origin of cash , Revenues is crucial for long-term accomplishment.

 Revenue growth: No former profits can be added while calculating revenue

growth as it leads to distorting the analysis.
 Revenue concentration : It is assured that no single client can make more than
10% of total revenue, as a customer is generating high revenues now, but what if he
stops purchasing, one can come upon financial difficulty
 Revenue per employee: It calculate the productivity of the production, the
higher the worth, the better it is.

 PROFIT

Profit is the return venture that a business derives from the invested amount on the
business. Multiple factors such as price, advertise trends, assets, obligations, costs, etc,
can affect the earnings of the business. It can be measured on the basis of.

 Gross profit margin: It enables us to finger revenues or the cost of goods that
are sold out with no suffering the facility to pay off for nonstop expenses.
 Operating profit Margin: It incorporates no interest or taxes, although it
measures the strength of generating profits for a company despite how an
individual manages finance air force.
 Net profit margin: Pure value that is left for reinvestment into the production,
also the redistributed amount to be separated amid owners.

 OPERATIONAL EFFICIENCY

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

In order to determine how adequately the company’s resources are utilized, operational
efficiency is implemented and its insufficiency leads to shorter earnings & more delicate
growth.

 Accounts receivables turnover: It computes how absolutely the credit is

managed, spread to customers. A bit of a higher number implies the well-managing
of acknowledgment whereas a lower number gives a advice sign to improve credit
cool from customers.
 Inventory turnover: It estimates the well-management of inventory. Again, a
bit of higher number delivers a good sign and a lower number implies either goods
aren't sold out efficiently / goods are produced on a large scale in comparison
current level of sales.

 CAPITAL EFFICIENCY AND SOLVENCY

The core aspect of notice of capitalists & bestowals, basically

 Return on equity: It is used to depict the come again that is generated by

lenders, upcoming out from the business.

 Debt to equity: In widespread terms, it symbolizes how much force is practiced

to work that can’t be more than what is acceptable to business.

 LIQUIDITY

The term Liquidity signifies the availability of a sufficient amount of cash & other assets to
satisfy cash fixed cost like debts, bills. Every business demands for a sufficient amount of
liquidity to meet its expenses. Therefore, a low level of Liquidity implies the group needs
extra capital & its presentation is underprivileged. Liquidity can be calculated by;

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

 Current ratio: It calculates the worth quantity to be paid for short-range debts
from the available cash. If the value of the current ratio is less than the one, then the
company needs extra amount due to poor liquidity, however, the in progress ratio’s
value above two is measured as favorable.
 Interest covered: The measurement to pay interest expenditure from the
available cash, & the value of 1.5 leads to gather bestowals.

5.3 ANALYSING OF FINACIAL STATEMENTS.

Position statement of the BHEL ltd.

Table No. 5.1

Particulars 2021 2020 2019 2018 2017

Equities & liabilities

Shareholder’s fund

Equity Share Capital 696.41 696.41 696.41 734.28 489.52

Total Share Capital 696.41 696.41 696.41 734.28 489.52

Reserves & Surplus 25787.64 28484.80 30735.39 31866.80 31804.92

Total Reserves &Surplus 25787.64 28484.80 30735.39 31866.80 31804.92

Total Shareholder fund 26484.05 29181.21 31431.80 32601.08 32294.44

Non-current liabilities
Long term borrowing 0.00 0.00 95.45 57.18 89.55

Deferred tax liabilities 0.00 0.00 0.00 0.00 0.00

Other long term liabilities 4982.75 4263.27 4410.39 3957.55 3719.19

Long term provision 3912.78 4212.13 5463.14 4923.11 5001.35

Total non –current liabilities 8895.53 8475.40 9968.98 8937.84 8810.09

Current liabilities

Short term borrowing 4833.78 4933.39 2431.74 0.00 0.00

Trade payable 6677.74 8823.62 11375.11 10586.86 8709.16

Other current liabilities 5645.88 5740.26 6737.91 7880.60 7224.95

Short term provision 3164.25 3081.78 2485.51 3782.77 4191.56

Total current liabilities 20321.65 22579.05 23030.27 22250.23 20125.67

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Total capital & liabilities 55701.23 60235.66 64431.05 63789.15 61230.20

Asset

Non – current assets

Tangible assets 2426.15 2735.47 2883.92 2977.53 3491.12

Intangible assets 62.16 78.61 83.07 91.31 104.76

Capital work- in progress 403.21 306.74 223.21 194.53 159.51

Other assets 0.00 0.00 0.00 0.00 0.00

Fixed assets 2907.87 3128.08 3202.43 3271.60 3764.22

Non – current investment 670.00 669.51 669.36 690.74 661.42

Deferred tax assets 3659.77 2756.21 3497.37 3625.88 3841.37

Long term loans & advances 0.000 0.000 82.82 84.28 78.04

Other non- current assets 20129.57 20978.33 18606.98 12928.26 9991.19

Total non –current assets 27367.21 27532.13 26058.96 20600.76 18336.24

Current assets

Current investments 0.00 0.00 0.00 0.00 0.00

Inventories 7191.23 8905.46 7797.29 6258.76 7372.38

Trade receivable 4033.63 7107.62 11860.80 22771.49 22075.56

Cash & cash equivalents 6701.43 6418.56 7503.34 11291.18 10491.79

Short term loans & advances 0.00 0.00 157.45 147.12 138.88

Other current assets 10407.73 10271.89 11053.21 2719.84 2815.35

Total current assets 28334.02 32703.53 38372.09 43188.39 42893.96

Total assets 55701.23 60235.66 64431.05 63789.15 61230.20

Other additional information

Contingent liabilities commitment

Contingent liabilities 6324.64 8444.19 7759.43 0.00 0.00

CIF value of import `

Raw material 918.13 2239.70 2192.44 1558.13 900.98

Store, spare & loose tools 0.000 0.000 0.000 0.000 0.00

Trade other goods 0.00 0.00 0.00 0.00 0.00

Capital goods 35.39 65.15 52.73 24.25 152.65

Expenditure in foreign exchange 65.89 97.59 161.29 154.51 151.31

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Remittances in foreign currencies

Dividend remittance currency _ _ _ 68.71 45.15

Earnings in foreign exchange

FOB value of goods 1101.64 2717.61 2231.92 182.44 292.52

Other earning 641.03 1162.12 1555.28 1126.36 2197.03

Bonus details

Bonus equity share capital 464.27 464.27 464.27 489.52 244.76

Non- current investment

Quoted market value _ _ _ _ _

Unquoted book value 670.00 669.51 669.36 752.19 677.47

Current investment

(Source: www.bhel.com)

Income statements of the BHEL ltd for 5years

Table No.5.2

Particular 2021 2020 2019 2018 2017

Total revenue 173086.90 214631.40 304413.80 288274.80 297315

Revenue 173086.90 214631.40 304413.80 288274.80 297315

Other revenue total - - - - -

Cost of revenue total 124927.20 148438 192847.80 175009.50 19705470

Gross profit 48159.70 66193.40 1115666 113265.30 100260.30

Total operating exp 209890.60 226385.10 288557.30 281656.50 292545.50

Selling/general exp total 67521.90 71336.30 88314.10 97059.80 84565.80

Research & development 294.80 749.70 1231.20 479.90 390.30

Depreciation 4732.50 5032.70 4757.40 7873.30 8497.90

Interest exp (income)- net - - - - -

operating
Unusual exp (income) 49.30 -2.70 0 0 -

Other operating exp total 12364.90 831.10 1406.80 1234 2036.80

Operating income -36803.70 -11753.70 15856.50 6618.30 4769.50

Interest income(exp) net 2000.40 6632.30 4102.20 7211.20 3425.60

non-operating
Gain(loss) assets 18.00 93 22.50 94.10 23.60

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Other net -1174.80 -1562.30 -1583.80 -1774.90 -2363

Net income before tax -1174.80 -1562.30 -1583.80 -1774.90 -2363

Provision for income -8962.30 8092.80 8373.20 7766.80 1303.90

tax
Net income after tax -26997 -14683.50 10024.20 4381.90 4551.80

Minority interest 25.90 23.40 26.80 29.70 20.80

Equity in affiliates - - - - -

Adjustment - - - - -

Net income before -26971.10 -14660.10 10051 4411.60 4572.60

extraordinary items
Total adjustment net - - - - -
income
Income extraordinary -26971.10 -14660.10 10051 4411.60 4572.60
items
Dilution adjustment - - - - -

Diluted net income -26971.10 -14660.10 10051 4411.60 4572.60

Dilution weight average 3482.10 3482.10 3629.40 3671.40 3671.40

shares
DPS common stock 2 1.82 1.05 - -
primary issue
Diluted normalized EPS -7.74 -4.23 2.77 1.18 1.24

Fig No.5.1

350000000
300000000
250000000
200000000 Total revenue
150000000 Total operating expenses
100000000 operating income
50000000
0
-50000000 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21

5.4 RATIO ANALYSIS.

Ratio examination is a numerical technique of gaining awareness into a corporation's

liquidity, operative efficiency, and profitability by learning its financial statements such as
the equilibrium sheet & income statement. Ratio analysis is a basis of original equity study.
The company's current ratio improved and stood at 1.9 xs during FY18, from 2.1 as during

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

FY17. The current ratio measures the company's ability to pay short-term and long-term
obligations. Ratio analysis could be a quantitative technique of gaining insight into a
company's liquidity, operational potency, and profitableness by ruling out its currency
statements like the record and profit-&-loss statement. Quantitative relative analysis could
be a keystone of basic equity analysis.

 Current Ratio
The current ratio is a liquidness share that deals whether a firm has sufficient
Capitals to meet its short-term everyday jobs. It compares a firm's current assets to
Its current liabilities, and is stated as current ratio = current assets / current
Liabilities

Table 1.0 : Table Showing Current Ratio

Year Current Assets Current liabilities Current Ratio

2021 28334.02 20321.65 1.3

2020 32703.53 22579.05 1.4
2019 38372.09 23030.27 1.6
2018 43188.39 22250.23 1.9
2017 42893.96 20125.67 2.13

Graph : 1.0 Graph showing 5 year analysis of current ratio

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

2.5

1.5

0.5

0
2021 2020 2019 2018 2017

Interpretation

From the above graphical representation, it shows that the liquidity assets in the co. are
increasing year after year. In the year 2021was 1.3 in 2020 it was 1.4 and in 2019 it has
reached 1.6 so it shows with the aim of the company’s liquidity ratio is in the increasing
slope.

 Quick ratio
The quick ratio measures a company's capacity to pay its current liabilities without
needing to sell its inventory or obtain added financing. The upper the ratio result,
the better a company's liquidity & financial health; the lower the ratio, the more
likely the band will struggle with paying debts.

Table 2.0 : Table Showing Quick Ratio

Year Quick Ratio Quick Assets Current Liabilities

2021 0.5 28334.02 55701.23
2020 0.54 32703.53 60235.66
2019 0.59 38372.09 64431.05
2018 0.67 43188.39 63789.15
2017 0.7 42893.96 61230.2
(Sources: www.bhel.com )

Graph : 2.0 Graph showing 5 year analysis of quick ratio

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

0.7
0.6
0.5
0.4
quick ratio
0.3
0.2
0.1
0
1 2 3 4 5

Interpretation

The above graphical representation shows that in the year 2021the quick ratio is 0.5which
is the lowest in the past 5 years except 2021all the above years has the quick ratio above
0.5 which shows that the ability to take the debt as increasing over year.

 Proprietary ratio.
The proprietary ratio is the part of shareholders equity to sum assets , & as such
Delivers a uneven estimation of the total of capitalization currently used to
provisional selling. If the ratio is high, this designates that a corporation has a
enough amount of equity to support the purposes of the business, and possibly has
room in its financial structure to take on added debt,

Table 3.0 : Table Showing Proprietary Ratio

propriety
year net worth total assets ratio
2021 26484.05 55701.23 0.47
2020 29181.21 60235.66 0.48
2019 31431.8 64431.05 0.49
2018 32601.08 63789.15 0.51
2017 32294.44 61230.2 0.52
(Source:www.bhel.com)

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Graph : 3.0 Graph showing 5 year analysis of proprietary ratio

2022
2021
2020
2019
2018 propriety ratio
2017 year
2016
2015
2014
1 2 3 4 5

Interpretation

The above graphical representation shows that in the year 2021 the proprietary ratio is 0.47
which is the lowest in the years except 2021 all the above years has the proprietary ratio.

 Fixed assets ratio.

Fixed-asset return is the ratio of sales to the value of unchanging assets. It specifies how
well the selling is using its fixed material goods to produce sales.

The upper the ratio, the better, since a high ratio specifies the business has less cash tied up
in fixed resources for each unit of money of sales revenue. A decreasing ratio may
designate that the trade is over-invested in plant, gear, or added fixed assets.

Table 4.0 : Table showing Fixed Assets ratio

Year Fixed assets Net worth Fixed assets

ratio
2021 2907.87 26484.05 0.10
2020 3128.08 29181.21 0.11
2019 3202.43 31514.08 0.09
2018 3721.60 4005.36 0.92
2017 3764.22 32372.48 0.11

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Graph : 4.0 Graph showing 5 year analysis of Fixed Assets ratio

Fixed assets ratio

1
0.8
Fixed assets ratio
0.6
0.4
0.2
0
2021 2020 2019 2018 2017

Interpretation

The graphical pretention above shows that the company is over investing on the fixed
assetsover that past 3 years. Here it also shows that the company is investing on fixed
assets are larger than the sales output of the company.

 Debt Equity Ratio.

The debt equity ratio is used to evaluate a company's financial leverage & is
calculated by dividing a company’s total liabilities by its shareholder equity. The
Debt equity ratio is an significant metric used in company finance. It is a calculate
of the degree to which a business is financing its operation during debt against
wholly owned funds. More specifically, it reflects the ability of saver equity to
cover all wonderful debts in the event of a business downturn. The debt-to-equity
ratio is a testing type of gearing ratio.

Table No 5.0 Table showing debt equity ratio

Year Net worth Share holder Debt equity

equity ratio
2021 55701.23 696.41 79.99
2020 60235.60 696.41 86.50
2019 64431.05 696.41 92.51
2018 63789.15 734.28 86.88

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

2017 61230.20 489.52 125.08

Graph : 5 Graph showing 5 year analysis of debt equity ratio

0.6

0.5

0.4

0.3

0.2

0.1

0
2021 2020 2019 2018 2017

Interpretation.

The overhead symbol signifies that the debt equity ratio in the corporation is used in
efficiently in firm three year in the previous five years the debt equity ratio in the fifth year
is maximum. Has understood the graphical symbol the secure proportion is down swilling
in 17.

 Cash ratio.
As with other liquidity capacity, such as the current ratio & the quick ratio, the
formula for the cash ratio uses current liabilities for the denominator. Current
liabilities include any responsibility due in one year or less, such as short-term debt,
accrued liabilities, and accounts owed.

Table No 6.0 : Table showing Cash ratio

Year Cash equivalent Cash liabilities Cash ratio

2021 6701.43 20321.65 0.32
2020 6418.56 22579.05 0.28
2019 7503.34 23030.27 0.32
2018 11291.18 22250.23 0.50
2017 10491.79 20125.67 0.52

Graph : 6.0 Graph showing 5 year analysis of Cash ratio

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Cash ratio
0.6
0.5
0.4
Cash ratio
0.3
0.2
0.1
0
2021 2020 2019 2018 2017

Interpretation.

The overhead symbol signifies that the cash ratio in the corporation is used in efficiently in
firm three year in the previous five years the cash ratio in the fifth year is maximum. Has
understood the graphical symbol the secure proportion is down swilling in 17.

 Net profit ratio.

The net profit ratio is the amount of after-tax profits to net sales. It discloses the
wonderful profit after all costs of production, direction, & financing have been
subtracted from sales, & income tax predictable. As such, it is one & only the best
deals of the overall grades of a firm, particularly when united with an estimation of
how well it is by its operational capital. The measure is frequently stated on a trend
line, to critic performance over time. It is also used to compare the results of a
business with its company.
Table. No 7 : Table showing Net Profit Ratio

Year Net profit Net sale Net profit

ratio
2021 592 11433 5%
2020 647 10722 6%
2019 915 12909 7%
2018 1507 14477 10%
2017 1359 15343 8%

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Graph : 7.0 Graph showing 5 year analysis of Net profit ratio

net profit ratio

10%
9%
8%
7% net profit ratio
6%
5%
4%
3%
2%
1%
0%
2021 2020 2019 2018 2017

Interpretation

The above graph shows that how the revenue is growing by the year after year by the
company after the decline profit in the year 2021 the company’s profit is slowly increasing
their profit in the next years. So, by that the company as achieved 10% profit ratio in the
year 2018.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

Chapter: 6
LEARNING EXPERIENCE
Learning is a process here we gain knowledge about the topic that. we are studying.
By preparing this organizational study report have studied a lot about the firm that I
have allotted for. By this organization study have studied how the work flow model
is stretchered in BHEL ltd. found that how the organizational structure has been
made in the particular company know came to understand that what is the
importance of the departmental structure is.

The financial statement that we see in the classroom is way different than the
financial statements that show in the company. It is entirely different from the
theory what one learns in the classroom. The situation read and explained
theoretically is fully different when it comes to the real life of the company. The
real-life company situations are broad in nature and they are completely different
from one condition to another. My project guide gave me a brief description about
the Organization study. So that I got a brief idea about the organization study.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga

 BHARAT HEAVY ELECTRICAL LTD.

PG Department of Management Studies & Research Centre, PESTIM Shivamogga