BHARAT HEAVY ELECTRICAL LIMITED Chairman: Chief financial officer : B.Prasad Rao . C.S.

Verma

Bharat Heavy Electricals Limited: An Introduction.

Bharat Heavy Electricals Limited (BHEL) is one of the oldest and largest stateowned engineering and manufacturing enterprise in India in the energy-related and infrastructure sector, started in 1953. It is the 12th largest power equipment manufacturer in the world. BHEL was established more than 50 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. 74% of the total power generated in India is produced by equipment manufactured by BHEL. It is one of India's nine largest Public Sector Undertakings or PSUs, known as the Navratnas or 'the nine jewels'. Besides the manufacturing units , there are four power sectors which undertake EPC contract from various customers. Engineering procurement construction Products manufactured by BHEL include: Boiler Gas generator Hydro generator

Chief Financial Officer

The chief financial officer (CFO) or Chief financial and operating officer (CFOO) is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management. In some sectors the CFO is also responsible for analysis of data. The CFO typically reports to the chief executive officer and to the board of directors, and may additionally sit on the board.

A CFO's job can be broken down into three major components: 1. Controllership duties - These make up the backward looking part of a CFO's job. Controllership duties hold the CFO responsible for presenting and reporting accurate and timely historical financial information of the company he or she works for. Every stakeholder in the company - including shareholders, analysts, creditors, employees and other members of management - relies on the accuracy and timeliness of this information. It is imperative that the information reported by the CFO is accurate, because many decisions are based on it. 2. Treasury duties The CFO is also responsible for the company's present financial condition, so he or she must decide how to invest the company's money, taking into consideration risk and liquidity. In addition, the CFO oversees the capital structure of the company, determining the best mix of debt, equity and internal financing. Addressing the issues surrounding capital structure is one of the most important duties of a CFO. 3. Economic strategy and forecasting - Not only is a CFO responsible for a company's past and present financial situation, he or she is also an integral part of a company's financial future. A CFO must be able to identify and report what areas of a company are most efficient and how the company can capitalize on this information. For example, the CFO of an auto manufacturer must be able to pinpoint which models are making the most money for the company and how this information can best be used to improve the company in the future. This aspect of a CFO's duties also includes economic forecasting and modeling - in other words, trying to predict (given multiple scenarios) the best way to ensure the company's success in the future.

Chief Financial Officer Of BHEL.

The CFO of BHEL is Mr.C.S.Verma. He holds a Masters degree in Commerce, a Masters degree in Management and a Bachelors degree in Law. He is a Fellow Member of the Institute of Company Secretaries of India and also an Associate Member of the Institute of Cost & Works Accountants of India. With nearly three decades of professional experience behind him, he is credited to be an expert in funds mobilisation in the capital markets, handling of foreign issues, swap transactions and derivative. His prudent financial management and strategic deployment of scarce resources had strengthened the competitive position of BHEL. He has been conferred the CNBC-TV18 Best Performing CFO Award 2008 in the Capital Goods and Infrastructure sector. As Director/Finance of BHEL since September 2005, Mr Verma also had the distinction of spearheading the joint venture initiatives of the company with various state GENCOs. His efforts resulted in the signing of four such agreements with Tamil Nadu, Karnataka, Madhya Pradesh and Maharashtra that would leverage the sale of 7 supercritical thermal power plants of BHEL.

He also played a key role in the finalisation of various technology agreements of BHEL with Alstom, Siemens, GE and Sheffield Forgemasters With Mr. Verma at the financial helm, BHEL has maintained its track record of earning uninterrupted profits. In 2007-08, the company further built on the growth momentum achieved in the year before and the same is likely to be accelerated in the current fiscal. Mr. Vermas financial acumen and treasury management skills have enabled the company to register a very high growth in income from treasury operations. During the tenure of Mr. Verma as Director (Finance), BHEL has scaled new heights in its financial performance. The company has declared first time ever bonus issue in the year 200708. The company has been a forerunner in adopting the various mandatory accounting standards and corporate governance practices. During the last three years, BHEL achieved a CAGR of 28% in its top line. In 2008-09, the growth is expected to be around 25%. BHELs order receipts in 2008-09 is expected to cross Rs.600,000 Million mark and the outstanding order book is more than Rs.1,150,000 Million. In 2007-08, the company achieved a gross margin of Rs.47,630 Million and a net profit of Rs.28,590 Million. The earning per share has gone up from Rs.13.5 in 2003-04 to Rs.58.4 in 2007-08. Return on capital employed and return on net worth at 61% and 27% respectively are one of the highest in the industry.