PROJECT REPORT

On

Analysis of Financial statement of BHARAT HEAVY

ELECTRICALS LIMITED(BHEL)

For partial fulfillment of the requirements for the

Award of the

POST GRADUATE DEGREE

Of

MASTER OF COMMERCE

Submitted by : KARAN SHARMA

Roll. No.120550078
Under the guidance of:

Professor Kiran Mehta

College address
In
3 lines
 PROJECT REPORT

On

Analysis of Financial statement of BHARAT HEAVY

ELECTRICALS LIMITED(BHEL)

For partial fulfillment of the requirements for the

Award of the

POST GRADUATE DEGREE

Of

MASTER OF COMMERCE

Submitted by : KARAN SHARMA

Roll. No.120550078
Under the guidance of:

Professor Kiran Mehta

College address
In
3 lines
 DECLARATION

I hereby declare that this project entitled

Analysis of Financial statement of BHARAT HEAVY
ELECTRICALS LIMITED(BHEL)
has been carried out by me under the guidance and
supervision of teacher name, collegename.
Submitted for the partial fulfillment for the award of
degree of Master of Commerce of Panjab University.
I also declare that no part of this representation has been
published or submitted as a project representation for any
degree, diploma, fellowship or any other similar title to
any university or institution previously.

KARAN SHARMA
 ACKNOWLEDGEMENT

I hereby take the opportunity to express my profound

sense of gratitude and reverence to all those who have
helped and encouraged me towards successful
completion of this project report. It has been a great
experience working on the concept of Analysis of
Financial Statements. I would like to thank my project
guide TEACHER NAME for his immense guidance
and valuable help and for the opportunity provided to me
to complete the project under his guidance.

Teacher name KARAN

GAUTAM

TEacher dept.
 CERTIFICATE

This is to certify that Mr. KARAN GAUTAM, course

and college name has done research on ANALYSIS
OF FINANCIAL STATEMENT under my
supervision and guidance. He has done lot of hard work
in preparing this project report. This report is prepared by
him and is purely based on his own efforts and
knowledge.

Teacher name

College Name
Bharat Heavy Electricals Limited (BHEL) majority-owned and founded by the
Government of India, is an engineering and manufacturing company based
in New Delhi, India. Established in 1964, BHEL is India's largest power plant
equipment manufacturer.

It was granted the prestigious Maharatna (big gem) status in 2013 by Govt of
India for its outstanding track record and vast scale of operations. The elite list
of Maharatna companies contains a total of 7 behemoth Public Sector
Undertakings (PSUs) of India. Maharatna status affords the Boards of these
companies enhanced financial and operational autonomy from the
Government.

History[edit]
BHEL was established in 1964 ushering in the indigenous Heavy Electrical
Equipment industry in India. Heavy Electricals (India) Limited was merged
with BHEL in 1974.[2] In 1991, BHEL was converted into a public limited
company. Over time, it developed the capability to produce a variety of
electrical, electronic and mechanical equipments for all sectors, including
transmission, transportation, oil and gas and other allied
industries.[2] However, the bulk of the revenue of the company is derived from
sale of equipment for power generation such as turbines, boilers, etc. As of
2017, BHEL supplied equipment contributed to about 55% of the total
installed power generation capacity of India.[3] The company has also supplied
thousands of Electric Locomotives to Indian Railway,[2] as well as defence
equipment such as the Super Rapid Gun Mount (SRGM) naval guns and
Defence Simulators to the Indian Armed Forces.

Operations[edit]
BHEL is engaged in the design, engineering, manufacturing, construction,
testing, commissioning and servicing of a wide range of products, systems and
services for the core sectors of the economy, viz. power, transmission, industry,
transportation, renewable energy, oil & gas and defence.

It has a network of 17 manufacturing units, 2 repair units, 4 regional offices,

8 service centres, 8 overseas offices, 15 regional centres, 7 joint ventures, and
infrastructure allowing it to execute more than 150 projects at sites across
India and abroad. The company has established the capability to deliver
20,000 MW p.a. of power equipment to address the growing demand for
power generation equipment.[4]

BHEL has retained its market leadership position during 2015-16 with 74%
market share in the Power Sector. An improved focus on project execution
enabled BHEL record its highest ever commissioning/synchronization of
15059 MW of power plants in domestic and international markets in
2015-16, marking a 59% increase over 2014-15. With the all-time high
commissioning of 15000 MW in a single year FY2015-16, BHEL has exceeded
170 GW installed base of power generating equipments.[5]

It also has been exporting its power and industry segment products and
services for over 40 years. BHEL's global references are spread across over 76
countries across all the six continents of the world. The cumulative overseas
installed capacity of BHEL manufactured power plants exceeds 9,000 MW
across 21 countries
including Malaysia, Oman, Iraq, UAE, Bhutan, Egypt and New Zealand. Their
physical exports range from turnkey projects to after sales services.[6]

Manufacturing facilities[edit]
Major manufacturing facilities

1. High Pressure Boiler Plant (HPBP), Tiruchirappalli

2. Heavy Electrical Plant (HEP), Bhopal
3. Heavy Electrical Equipment Plant (HEEP), Ranipur (Haridwar)
4. Heavy Power Equipment Plant (HPEP), Hyderabad
5. Boiler Auxiliaries Plant (BAP), Ranipet
6. Transformer Plant (TP), Jhansi
7. Electronics Division (EDN), Bangalore

Other manufacturing facilities

Electronic System Division (ESD), Bangalore

Electro-Porcelains Division (EPD), Bangalore

Industrial Valves Plant (IVP), Goindwal

Central Foundry Forge Plant (CFFP), Ranipur (Haridwar)
 Component Fabrication Plant (CFP), Rudrapur
Seamless Steel Tube Plant (SSTP), Tiruchirappalli

Power Plant Piping Unit (PPPU), Thirumayam

Heavy Plates & Vessels Plant (HPVP), Visakhapatnam

Centralised Stamping Unit & Fabrication Plant (CSU & FP), Jagdishpur
Insulator Plant (IP), Jagdishpur

Heavy Equipment Repair Plant (HERP), Varanasi

Electrical Machine Repaid Plant (EMRP), Mumbai

The company is also setting up a new Greenfield Power Equipment Fabrication

Plant (GPEFP) at Bhandara, Maharashtra, the foundation stone for which was
laid on 14 May 2013. Further, BHEL is planning to enter solar manufacturing
in a big scale, as it has announced its plans for a 600 MW Solar Module
Factory.[7]

Besides the above, the company has a number of offices across the country for
sales, engineering, project management, logistics and R&D.

Products and services[edit]

Thermal power Plants [8]

Nuclear power Plants

Gas based power Plants
Hydro power Plants

DG power Plants
Boilers (steam generator)

Boiler Auxiliaries
Gas generator

Hydro generator
Steam turbine
Gas turbine

Hydro turbine
Transformer

Switchgear
Oil field equipment
Boiler drum
 Piping System
Soot Blowers

Valves
Seamless Steel Tubes

Condenser s and Heat exchangers

Pumps

Desalination and Water treatment plants

Automation and Control systems
Power electronics

Transmission system control

Semiconductor devices

Solar photo voltaics

Software system solutions

Bus ducts
Insulators
Control panels

Capacitors
Bushings

Electrical machines
DC, AC heavy duty Motors

Compressors
Control gears
Traction motors

Research and development products

Shareholding and Senior Management[edit]

BHEL's equity shares are listed on Bombay Stock Exchange and National Stock
Exchange of India.
Central Government of India holds majority of the shares of BHEL.[9]

Shareholders (as on 31-March-2016) Shareholding[3][10]

Central Government of India 63.06%

Foreign Institutional Investors (FII) 13.95%

Banks, Financial Institutions, Insurance companies 15.68%

Mutual Funds and UTI 2.71%

Individual shareholders 3.19%

Others 1.41%

Total 100.00%

Top Management[11] (As of 1 March 2017)

The day-to-day management of the company is looked after by its "Functional

Directors" headed by the Chairman and Managing Director ("CMD").
Functional Directors are also members of the Board of Directors of the
company. The CMD is the Chairman of the Board.

1. Atul Sobti, Chairman and Managing Director

2. Akhil Joshi, Director (Power)
3. Amitabh Mathur, Director (Industrial Systems and Products)
4. T. Chockalingam, Director (Finance)
5. D. Bandhopadhyay, Director (Human Resources)
6. Subrata Biswas, Director (Engineering, Research & Development)

Awards and recognitions

Appreciation shield (June 2016) by the External Affairs Minister

Sushma Swaraj and the Union Minister of Water Resources, River
Development and Ganga Rejuvenation Uma Bharati for successful
commissioning of Salma Dam project in Afghanistan.[12]
BHEL wins India Pride Award 2015-16 for Excellence in Heavy
Industries.[13]
It is the 7th largest power equipment manufacturer in the world.
BHEL was adjudged the Best Power Equipment Manufacturing
Organisation by CBIP [14]
 The company bagged PSE Excellence Award 2014 for R&D &
Technology Development
BHEL received the National Intellectual Property Award 2014 and
WIPO Award for Innovative Enterprises [15]

In 2014, BHEL won ICAI National Award for Excellence in Cost

Management for the ninth consecutive year.[16]
BHEL received two awards in CII-ITC Sustainability Awards 2012 from
the President of India.[17]
In the year 2011, it was ranked ninth most innovative company in the
world by US business magazine Forbes.[18]

The company won the prestigious Golden Peacock Award for

Occupational Health & Safety 2011 for significant achievements in the
field of Occupational Health & Safety.[19]
It is also placed at 4th place in Forbes Asia's Fabulous 50 List of
2010.[20]
BHEL wins MoU Excellence Award for the year 200607 for the
highest growth rate in Market Capitalization.[21]

Initiatives[edit]
Research and development[edit]
BHEL's investment in R&D is amongst the largest in the corporate sector in
India.

During the year 2012-13, the company invested about Rs. 1,252 Crore on
R&D efforts, which corresponds to nearly 2.50% of the turnover of the
company, focusing on new product and system developments and
improvements in existing products for cost competitiveness, higher reliability,
efficiency, availability and quality etc. To meet customer expectations, the
company has upgraded its products to contemporary levels through
continuous in-house efforts as well as through acquisition of new technologies
from leading engineering organizations of the world. The IPR (Intellectual
Property Rights) capital of BHEL grew by 21.5% in the year, taking the total
to 2170.
The Corporate R&D division at Hyderabad leads BHELs research efforts in a
number of areas of importance to BHELs product range. Research & product
development (RPD) Groups for each product group at the manufacturing
divisions play a complementary role. BHEL has established Centres of
Excellence for Simulators, Computational Fluid Dynamics, Permanent Magnet
Machines, Surface Engineering, Machine Dynamics, Centre for Intelligent
Machines and Robotics, Compressors & Pumps, Centre for Nano Technology,
Ultra High Voltage Laboratory at Corporate R&D; Centre of Excellence for
Hydro Machines at Bhopal; Power Electronics and IGBT & Controller
Technology at Electronics Division, Bengaluru, and Advanced Fabrication
Technology and Coal Research Centre at Tiruchirappalli.

BHEL has established four specialized institutes, viz., Welding Research

Institute (WRI) at Tiruchirappalli, Ceramic Technological Institute (CTI) at
Bangalore, Centre for Electric Traction (CET) at Bhopal and Pollution Control
Research Institute (PCRI) at Haridwar. Amorphous Silicon Solar Cell plant
at Gurgaon pursues R&D in Photo Voltaic applications.[22]

Significantly, BHEL is one of the only four Indian companies and the only
Indian Public Sector Enterprise figuring in 'The Global Innovation 1000' of
Booz & Co., a list of 1,000 publicly traded companies which are the biggest
spenders on R&D in the world.[23]