A PROJECT REPORT FOR FINANCIAL STATEMENT ANALYSIS OF BHEL Submitted by LALIT CHAUDHARY (06711301710) In partial fulfilment of requirements For

the reward of the degree OF BACHELOR OF BUSSINESS ADMINISTRATION Under the supervision of Ms. Sunmeet Kaur

BERI INSTITUTE OF TECHNOLOGY, TRAINING AND RESEARCH TIKRI KALAN, DELHI (Affiliated to Guru Gobind Singh Indraprastha University)

CONTENTS
CHAPTER 1 INTRODUCTION................................................................... OBJECTIVE OF THE STUDY.............................................. CHAPTER 2 INDUSTRY PROFILE........................................................... COMPANY PROFILE.............................................................. CHAPTER 3 LITREATURE REVIEW..................................................... CHAPTER 4 DATA ANALYSIS AND INTERPRETATION................ CHAPTER 5 FINDINGS....................................................................... CONCLUSION AND SUGGESTIONS....................... BIBILOGRAPHY...........................................................

CHAPTER 1

INTRODUCTION

INTRODUCTION

The project deals with the this project aims at studying Financial statement analysis of BHEL. This project contains five sections. The first section contains the Objective of the project and Research methodology. Second section Literature Review contains information about the BHEL. During the process there are certain difficulties and barriers that are to be overcomes Third section is the Company Profile which contains the information about the company BHEL, its products, vision, mission etc. BHEL is one of the few The forth chapter is the Finding and Analysis, which is shown with the help of pie charts, bar diagram. Fifth chapter may contain the project limitation and conclusion and at last bibliography and annexure. At last sections the 5 year balance sheet of BHEL Analysis means establishing a meaningful relationship between drawn. By financial statements by means of two statements Profit and loss account or Income Statement Balance Sheet or Position Statement These are prepared at the end of a given period of time. They are the indicators of profitability and financial soundness of the business concern. The term financial analysis is also known as analysis and interpretation of financial statements. It refers to the establishing meaningful relationship between various items of the two financial statements i.e. Income statement and Position statement. It determines financial strength and weakness of the firm. Analysis of financial statements is an attempt to assess the efficiency and performance of an enterprise. Thus, the analysis and interpretation of financial statements is very essential to measure the efficiency, profitability , financial soundness and future prospects of the business units. Financial analysis serves the following purposes. various

items of the two financial statements with each other in such a way that a conclusion is being

Measuring the Profitability

The main objective of a business is to earn a satisfactory return on the funds invested in it. Financial analysis helps in ascertaining whether adequate profits are being earned on the capital invested in the business or not. It also helps in knowing the capacity to pay the interest.

Indicating the trend of achievements

Financial statements of the previous years can be compared and the trend regarding various expenses, purchases, sales, gross profits and net profit etc can be ascertained. Value of assets and liabilities can be compared and the future prospects of the business can be envisaged.

Assessing the growth potential of the business

The trend and other analysis of the business provides information indicating the growth potential of the business.

Comparative position in relation to other firms

The purpose of financial statements analysis is to help the management to make a comparative study of the profitability of various firms, engaged in similar businesses. Such comparison also helps the management to study the position of their firm in respect of sales expenses, profitability and utilising capital, etc.

Assess overall financial strength

The purpose of financial analysis is to assess the financial strength of the business. Analysis also helps in taking decisions, whether funds required for the purchase of the new machines and equipments are provided from internal sources of the business or not if yes, how much? And also to assess how much funds have been received from external sources.

OBJECTIVES OF THE STUDY

OBJECTIVES OF THE STUDY

To calculate the important financial ratio of the organisation as a part of the ratio analysis thereby to understand the changes the needs and trends in the firms financial position. To assess the performance of B.H.E.L on the basis of earnings and also to evaluate the solvency position of the company. To identify the financial strengths and weaknesses of the organization. To give the appropriate suggestions to the investors. To help them to make more informed decisions.

Literature review

INTRODUCTION TO FINANCE STATEMENT:

Financial statement is that managerial activity which is concerned with the planning and controlling of the firm financial resources. Though it was a branch of economic till 1890 as a separate activity or discipline it is of recent origin. Still, as no unique body knowledge of its own, and draws heavily on economics for its theoretical concepts even today. The subject of financial management is of immense interest both academicians and practising manager. It is of great interest to academicians because the subject is still developing. And there are still certain areas where controversies exist for which no unanimous solutions have been reached as yet. Practicing manager are interested in this subject because among the most crucial decision of the firm are those which relate to finance and an understanding of the theory of financial management provides them with conceptual and analytical insight to make those decision skilfully.

SCOPE: Firms create manufacturing capacities for production of good, some provide services to customers. They sell their goods or services to earn profit. They fund to acquire manufacturing and other facilities. Thus the three most important activities of a business firm are: PRODUCTION MARKETING FINANCE

FUNCTION: The finance function form production, marketing and other functions. Yet the function themselves can be readily identified. The function of raising funds, inverting them in assets and distributing returns earned from assets to shareholder respectively. The finance functions are: Investment or long term asset mix decision Financing or capital mix decision Dividend or profit allocation decision Liquidity or short term asset mix decision

OBJECTIVES OF THE FINANCIAL STATEMENT ANALYSIS : 1. To calculate the important financial ratio of the organization as a part of the ratio analysis thereby to understand the change and treads in the firm financial position. 2. To access the performance of the Company on the basis of earnings and also to evaluate the solvency position of the company. 3. To identify the financial strengths and weaknesses of the organization. 4. To give appropriate suggestion to the investors. To help them to make over, 5. Informed decision.

Tools of financial statement Analysis 1. Ratios Analysis

Fundamental Analysis has a very broad scope. One aspect looks at the general (qualitative) factors of a company. The other side considers tangible and measurable factors (quantitative). This means crunching and analyzing numbers from the financial statements. If used in conjunction with other methods, quantitative analysis can produce excellent results. Ratio analysis isn't just comparing different numbers from the balance sheet, income statement, and cash flow statement. It's comparing the number against previous years, other companies, the industry, or even the economy in general. Ratios look at the relationships between individual values and relate them to how a company has performed in the past, and might perform in the future. Ratio analysis is the method or process by which the relationship of items or group of items in the financial statement are computed, determined and presented. Ratio analysis is an attempt to derive quantitative measure or guides concerning the financial health and profitability of business enterprises. Ratio analysis can be used both in trend and static analysis. There are several ratios at the disposal of an annalist but their group of ratio he would prefer depends on the purpose and the objective of analysis. While a detailed explanation of ratio analysis is beyond the scope of this section, we will focus on a technique, which is easy to use. It can provide you with a valuable investment analysis tool. This technique is called cross-sectional analysis. Cross-sectional analysis compares financial ratios of several companies from the same industry. Ratio analysis can provide valuable information about a company's financial health. A financial ratio measures a company's performance in a specific area. For example, you could use a ratio of a company's debt to its equity to measure a company's leverage. By comparing the leverage ratios of two companies, you can determine which company uses greater debt in the conduct of its business. A

company whose leverage ratio is higher than a competitor's has more debt per equity. You can use this information to make a judgment as to which company is a better investment risk. However, you must be careful not to place too much importance on one ratio. You obtain a better indication of the direction in which a company is moving when several ratios are taken as a group.

OBJECTIVE OF RATIOS

Ratio is work out to analyze the following aspects of business organizationA) Solvency1) Long term 2) Short term 3) Immediate B) Stability C) Profitability D) Operational efficiency E) Credit standing F) Structural analysis G) Effective utilization of resources H) Leverage or external financing

FORMS OF RATIO: Since a ratio is a mathematical relationship between to or more variables / accounting figures, such relationship can be expressed in different ways as follows A] As a pure ratio: For example the equity share capital of a company is Rs. 20,00,000 & the preference share capital is Rs. 5,00,000, the ratio of equity share capital to preference share capital is 20,00,000: 5,00,000 or simply 4:1.

B] As a rate of times: In the above case the equity share capital may also be described as 4 times that of preference share capital. Similarly, the cash sales of a firm are Rs. 12,00,000 & credit sales are Rs. 30,00,000. so the ratio of credit sales to cash sales can be described as 2.5 [30,00,000/12,00,000] or simply by saying that the credit sales are 2.5 times that of cash sales.

C] As a percentage: In such a case, one item may be expressed as a percentage of some other item. For example, net sales of the firm are Rs.50,00,000 & the amount of the gross profit is Rs. 10,00,000, then the gross profit may be described as 20% of sales [ 10,00,000/50,00,000]

STEPS IN RATIO ANALYSIS

The ratio analysis requires two steps as follows: 1] Calculation of ratio 2] Comparing the ratio with some predetermined standards. The standard ratio may be the past ratio of the same firm or industrys average ratio or a projected ratio or the ratio of the most successful firm in the industry. In interpreting the ratio of a particular firm, the analyst cannot reach any fruitful conclusion unless the calculated ratio is compared with some predetermined standard. The importance of a correct standard is oblivious as the conclusion is going to be based on the standard itself.

TYPES OF COMPARISONS The ratio can be compared in three different ways 1] Cross section analysis: One of the way of comparing the ratio or ratios of the firm is to compare them with the ratio or ratios of some other selected firm in the same industry at the same point of time. So it involves the comparison of two or more firms financial ratio at the same point of time. The cross section analysis helps the analyst to find out as to how a particular firm has performed in relation to its competitors. The firms performance may be compared with the performance of the leader in the industry in order to uncover the major operational inefficiencies. The cross section analysis is easy to be undertaken as most of the data required for this may be available in financial statement of the firm. 2] Time series analysis: The analysis is called Time series analysis when the performance of a firm is evaluated over a period of time. By comparing the present performance of a firm with the performance of the same firm over the last few years, an assessment can be made about the trend in progress of the firm, about the direction of progress of the firm. Time series analysis helps to the firm to assess whether the firm is approaching the long-term goals or not. The Time series analysis looks for (1) important trends in financial performance (2) shift in trend over the years (3) significant deviation if any from the other set of data.

3] Combined analysis: If the cross section & time analysis, both are combined together to study the behavior & pattern of ratio, then meaningful & comprehensive evaluation of the performance of the firm can definitely be made. A trend of ratio of a firm compared with the trend of the ratio of

the standard firm can give good results. For example, the ratio of operating expenses to net sales for firm may be higher than the industry average however, over the years it has been declining for the firm, whereas the industry average has not shown any significant changes.

The combined analysis as depicted in the above diagram, which clearly shows that the ratio of the firm is above the industry average, but it is decreasing over the years & is approaching the industry average. PRE-REQUISITIES TO RATIO ANALYSIS In order to use the ratio analysis as device to make purposeful conclusions, there are certain pre-requisites, which must be taken care of. It may be noted that these prerequisites are not conditions for calculations for meaningful conclusions. The accounting figures are inactive in them & can be used for any ratio but meaningful & correct interpretation & conclusion can be arrived at only if the following points are well considered. 1) The dates of different financial statements from where data is taken must be same. 2) If possible, only audited financial statements should be considered, otherwise there must be sufficient evidence that the data is correct. 3) Accounting policies followed by different firms must be same in case of cross section analysis otherwise the results of the ratio analysis would be distorted. 4) One ratio may not throw light on any performance of the firm. Therefore, a group of ratios must be preferred. This will be conductive to counter checks. 5) Last but not least, the analyst must find out that the two figures being used to calculate a ratio must be related to each other, otherwise there is no purpose of calculating a ratio.

CLASSIFICATION OF RATIO

BASED ON FINANCIAL STATEMENT

BASED ON FUNCTION

BASED ON USER

1] BALANCE SHEET RATIO 2] REVENUE STATEMENT RATIO 3] COMPOSITE RATIO

1] LIQUIDITY RATIO 2] LEVERAGE RATIO 3] ACTIVITY RATIO 4] PROFITABILITY RATIO 5] COVERAGE RATIO

1] RATIOS FOR SHORT TERM CREDITORS 2] RATIO FOR SHAREHOLDER 3] RATIOS FOR MANAGEMENT 4] RATIO FOR LONG TERM CREDITORS

BASED ON FINANCIAL STATEMENT Accounting ratios express the relationship between figures taken from financial statements. Figures may be taken from Balance Sheet , P& P A/C, or both. One-way of classification of ratios is based upon the sources from which are taken.

1] Balance sheet ratio: If the ratios are based on the figures of balance sheet, they are called Balance Sheet Ratios. E.g. ratio of current assets to current liabilities or ratio of debt to equity. While calculating these ratios, there is no need to refer to the Revenue statement. These ratios study the relationship between the assets & the liabilities, of the concern. These ratio help to judge the liquidity, solvency & capital structure of the concern. Balance sheet ratios are Current ratio, Liquid ratio, and Proprietory ratio, Capital gearing ratio, Debt equity ratio, and Stock working capital ratio.

2] Revenue ratio: Ratio based on the figures from the revenue statement is called revenue statement ratios. These ratio study the relationship between the profitability & the sales of the concern. Revenue ratios are Gross profit ratio, Operating ratio, Expense ratio, Net profit ratio, Net operating profit ratio, Stock turnover ratio.

3] Composite ratio: These ratios indicate the relationship between two items, of which one is found in the balance sheet & other in revenue statement. There are two types of composite ratios-

a) Some composite ratios study the relationship between the profits & the investments of the concern. E.g. return on capital employed, return on proprietors fund, return on equity capital etc. b) Other composite ratios e.g. debtors turnover ratios, creditors turnover ratios, dividend payout ratios, & debt service ratios

BASED ON FUNCTION: Accounting ratios can also be classified according to their functions in to liquidity ratios, leverage ratios, activity ratios, profitability ratios & turnover ratios.

1] Liquidity ratios: It shows the relationship between the current assets & current liabilities of the concern e.g. liquid ratios & current ratios.

2] Leverage ratios: It shows the relationship between proprietors funds & debts used in financing the assets of the concern e.g. capital gearing ratios, debt equity ratios, & Proprietory ratios. 3] Activity ratios: It shows relationship between the sales & the assets. It is also known as Turnover ratios & productivity ratios e.g. stock turnover ratios, debtors turnover ratios. 4] Profitability ratios: a) It shows the relationship between profits & sales e.g. operating ratios, gross profitratios, operating net profit ratios, expenses ratios b) It shows the relationship between profit & investment e.g. return on investment, return on equity capital

5] Coverage ratios: It shows the relationship between the profit on the one hand & the claims of the outsiders to be paid out of such profit e.g. dividend payout ratios & debt service ratios.

BASED ON USER: 1] Ratios for short-term creditors: Current ratios, liquid ratios, stock working capital ratios 2] Ratios for the shareholders: Return on proprietors fund, return on equity capital

3] Ratios for management: Return on capital employed, turnover ratios, operating ratios, expenses ratios 4] Ratios for long-term creditors: Debt equity ratios, return on capital employed, proprietor ratios.

1. LIQUIDITY RATIOS: it measures the short-term solvency of the firm. In a short period of a firm should be able to meet all its short-term obligation i.e. current liabilities and provisions. It is current assets that yield funds in the short period. Current assets are those, which the firm can convert it into cash within one year or short run. Current assets should not only yield sufficient funds to meet current liabilities as they fall due but also to enable the firm to carry on its day-to-day activities.

The following are the important liquidity ratios: 1. Current ratio 2. Acid test/quick ratio. 3. Cash ratio 4. Net working capital ratio 1.Current ratio: Current ratio is the ratio of current assets to current liabilities. Current assets are the assets that are expected to be realized in cash or sold or consumed during the normal operating cycle of the business or with in one year, which ever is longer, they include

cash in hand and bank, bills receivable, net sundry debtors, stock of raw materials, finished goods and working in progress, prepaid expenses, outstanding incomes, assured incomes and short term or temporary investments. Current liabilities are the liabilities that are to be repaid within a period of one year. They include bills payable, sundry creditors, bank overdrafts, outstanding expenses, income receivable in advance, proposed dividend, provision for taxation, unclaimed dividends and short term loans and advanced repayable within one year. Any instalment of long-term liability payable within the next 12 months is also current liability.

CURRENT RATIO= CURRENT ASSETS/ CURRENT LIABILITIES Generally 2 : 1 ratio is considered ideal for the company.

2. ACID TEST/QUICK RATIO: the acid test ratio is the ratio between quick current assets and current liabilities and calculated by dividing the quick assets by current liabilities. Quick assets mean those which can be converted into cash immediately by exclusion of inventory and prepaid expenses from current assets. Acid test Ratio=Quick assets/Current liabilities. Generally 1: 1 ratio is considered to be ideal for the company.

3. CASH RATIO: The cash ratio is the ratio of cash and bank balance, it is calculated dividing cash and bank balance by current liabilities. CASH RATIO= Cash and Bank balances/Current liabilities. Generally 1 : 2 ratio is considered to be ideal for a company.

4. NET WORKING CAPITAL RATIO: Working capital ratio refers to comparing current assets to current liabilities and serve as the liquidity reserve avail. To satisfy contingencies and uncertainties. It is calculated by dividing net working capital by capital employed. Net Working Capital Ratio = net working capital/capital employed. Generally higher ratio is considered ideal for a company.

CAPITAL STRUCTURE/LEVERAGE RATIO: These ratios indicate the relative interests of owners and creditors in a business by showing long term financial solvency and measure the enterprises ability to pay the interest regularly and to repay the principal on maturity or in pre-determined instalments at due dates. The significant leverage ratios are: 1. Debt Equity Ratio 2. Proprietary Ratio 3. Capital Gearing Ratio. 4. Fixed assets Ratio 5. Interest coverage Ratio 6. Dividend Coverage Ratio 7. Debt Service coverage Ratio.

1.Debt Equity Ratio: It reflects the relative claim of creditors and shareholders against the assets of the business. Debt usually refers to long-term liability. Equity includes equity and preference share capital and reserves. Debt Equity Ratio=long term liabilities/share holders funds. Ideal debt equity ratio is 2 : 1

2.Propreitary ratio: It expresses the relationship between the net worth and total assets. A high proprietary ratio is indicative of strong financial position of business. Proprietary ratio = Net worth/ Total Assets Net worth = Equity share capital + fictitious Assets Total assets= fixed assets + Current Assets Generally higher the ratio the ideal it is.

2. Capital Gearing Ratio: A company is said to be highly geared if it has a high capital gearing ratio and lowly geared if the capital gearing ratio is low. The extent of gearing determined the future financial structure of the business. A company that is highly geared will have to raise funds by issuing fresh equity shares, whereas a lowly geared company would find it attractive to raise funds by way of term loans and debentures.

3. Capital Gearing Ratio = funds bearing fixed interest and fixed dividend/equity share holders funds Funds bearing fixed interest and capital=Debentures + term loans +preference . share capital. Equity share holder funds=Equity share capital +reserves-fictitious funds.

4.Fixed Assets Ratio: This ratio indicates the mode of financial the fixed assets. It is calculated as Fixed assets Ratio= Fixed assets/capital employed

Capital employed= equity share capital + preference share capital +reserves + long term Liabilities Fictitious Assets. Generally a ratio of 0.67 : 1 is considered ideal for a company.

5.Interest Coverage Ratio: This ratio is called as debt service ratio. This ratio indicates whether a business is earning sufficient profits to pay the interest charges. It is calculated as Interest coverage ratio=PBIT/Fixed interest charges PBIT=Profit before interest and taxes=PAT + Interest + Tax Generally a ratio of around 6 is normally considered as ideal for a company.

6.Dividend coverage ratio: It indicates the ability of a business to pay and maintain the fixed preference dividend to preference shareholders. Dividend coverage ratio=PAT/Fixed preference dividend. PAT= Profit After Taxes

7.Debt service coverage Ratio: It indicates whether the business is earning sufficient profits to pay not only the interest charges, but also the instalments due to the principal amount. It is calculated as Debt service Coverage Ratio =(PBIT/Interest + Periodic Loan Installation)/(1- Rate of income Tax) Generally greater the ratio, the better is the servicing ability of company.

 PROFITABILITY RATIO: Profitability ratios measure the profitability of a company. Generally they are calculated either in relation to sales or in relation to investments. The various profitability ratios are discussed under the following heads.

(A) GENERAL PROFITABILITY RATIOS:

1.Gross Profit Ratio:Gross profit is one of the most commonly used ratios. It reveals the result of trading operations of the business. In other words, it indicates to us the profitability of the business. It is calculated as Gross Profit Ratio=(Gross Profit/Net sales)*100 Gross Profit=net sales-cost of goods sold. Net Sales=Total Sales- Sales Returns Cost of Goods Sold=Opening Stock + Purchases + Manufacturing expenses-closing Stock. Generally the higher the ratio, the better will be the performance of the company.

2.NET PROFIT RATIO: It indicates the results of overall operations of the firm. While the gross profit ratio indicates the extent of profitability of core operations. Net profit ratio tells us about overall profitability. It is called as Net Profit Ratio=(Net Profit after Tax/Net Sales)*100 Generally higher the ratio, the more profitable to the company.

3.OPERATING RATIO: It expresses the relationship between expenses incurred for running the business, and the resultant net sales. It is calculated as Operating Ratio=cost of goods sold + Office and Administrative expenses + selling and distribution Expenses. Generally lower the ratio, the better it is to the company.

4.OPERATING PROFIT RATIO: It establishes the relationship between operating profit and sales. It is calculated as Operating Profit Ratio=(Operating Profit/Net Sales)*100 Generally higher the ratio, the better it is to the company.

5.EXPENSES RATIO: Expenses ratios are the ratios that supplement the information given by the operating ratio. Each of the expense rations highlights the relationship given by the particular expense and net sales. For example, factory expenses ratio is of factory expenses to net sales any expenditure can be shown as a ratio to sales. All such ratios fall under the broad head of expenses ratios.

(B) OVERALL PROFITABILITY RATIOS: 1.RETURN ON CAPITAL EMPLOYED RATIO(ROCE) OR RETURN ON

INVESTMENT RATIO(ROD): This ratio reveals the earning capacity of the capital employed in the business. In other words, capital employed is permanent capital invested in the business. It is also called capital and hence, the ratio is also known as return on invested capital ROCE= (Profit before interest and taxes/capital employed) *100

2. RETURN ON NET WORTH(RONW): It indicates the return, which the shareholders are earning on their resources invested in the business. It is calculated as RONW=(Profit after Tax/Net Worth)*100 Generally higher the ratio, the better it is to the shareholders.

3.RETURN ON EQUITY CAPITAL: It expresses the return earned by the owners of the business, after adjusting for debt and preference capital. It is calculated as RETURN ON EQUITY= PAT- Preference dividend/equity shareholders funds. Generally higher the ratio, the better it is to the company. 4.RETURN ON ASSETS RATIO(ROA): Return on assets reflects the return earned by the firm for the company for the shareholders of the business on the investment of all the financial resources committed to the business. It is calculated as ROA=PAT/TOTAL SALES Generally higher the ratio, the better it is to the shareholders.

5.EARNINGS PER SHARE(EPS): It is the earning accruing to the equity shareholders on every share held by them. It is calculated as EPS= PAT-Preference dividend/number of equity shares. Generally the ratio, the better is the performance of the company.

6.Dividends per share (DPS): It is the amount of dividend payable to the holder of one equity share. It is calculated as DPS=Dividend on equity share capital/number of equity shares Generally from investors point of view, the higher the ratio, the happier the investor.

7.DIVIDEND PAY OUT RATIO: It is the ratio of dividend per share to earning per share. It is calculated as Dividend Pay Out Ratio=DPS/EPS

8.PRICE EARNING RATIO(P/E Ratio): It expresses the relationship between market price of one share of a company and earnings per share of that company. P/E Ratio=Market Price of Equity share/EPS There is no ideal P/E ratio.

9.DIVIDEND YIELD RATIO: It expresses the relationship between dividend earned per share and the market price per share. In other words, it expresses the return on investment by purchasing a share in the stock market , without accounting for any capital appreciation. It is calculated as DIVIDEND YIELD RATIO- Dividend per share/Market price of share.

10.BOK VALUE: It is the fraction of the net worth of the business as depicted in the balance sheet, which is attributable to one equity share of the business . it is calculated as BOOK VALUE=Equity share holders funds/number of equity shares. Generally higher the book value of the share, the more strong the business is assumed to be.

ACTIVITY RATIO: Activity ratios measures the efficiency or effectiveness with which a firm managers its resources or assets. They calculate the speed with which various assets, in which funds are blocked up, get converted into sales. The significant activity or turnover ratios are

1.INVENTORY TURN OVER RATIO OR STOCK TURN OVER RATIO: Stock turnover ratio indicates the number of items the stock has turned over into sales in a year. It indicates to us the extent of stock required to be held in order to achieve a desired level of sales. Inventory Turn Over Ratio = Cost of Goods Sold/Average Stock Cost of Goods Sold=Sales-Gross Profit. Average Stock=(Opening Stock + Closing Stock)/2 Generally 8 is considered ideal ratio of the company.

2.DEBTORS TURN OVER RATIO: Debtors Turn Over Ratio expresses the relationship between debtors and net credit sales. It is calculated as Debtors Turn Over ratio= Net Credit Sales/Average Debtors. Generally the ratio between 10-12 an ideal value for the company. 3.CREDITORS TURN OVER RATIO: Creditors turn over ratio expresses the relationship between creditors and net credit purchases. It is calculated as Creditors Turn Over Ratio= Net Credit Purchases/Average Creditors. Generally the ratio 12 is an ideal for the company.

4.WORKING CAPITAL TURN OVER RATIO : This ratio is defined as Working Capital Turn Over Ratio= Cost of Goods Sold/Working Capital Working Capital=Current Assets- Current Liabilities. Generally higher ratio indicates efficient utilization of firms funds.

5.Fixed Assets Turn Over Ratio:It is Defined as ratio of Net Sales to the Fixed Assets. Generally the ratio of around 5 is considered ideal for the company.

6.TOTAL ASSETS TURN OVER RATIO:It is defined as ratio of Net Sales to the Total Sales. Generally higher the ratio, the greater is the ability of the firm to utilize the investments in the business.

IMPORTANCE OF RATIO ANALYSIS: As a tool of financial management, ratios are of crucial significance. The importance of ratio analysis lies in the fact that it presents facts on a comparative basis & enables the drawing of interference regarding the performance of a firm. Ratio analysis is relevant in assessing the performance of a firm in respect of the following aspects: 1] Liquidity position, 2] Long-term solvency, 3] Operating efficiency, 4] Overall profitability, 5] Inter firm comparison 6] Trend analysis.

1] LIQUIDITY POSITION: With the help of Ratio analysis conclusion can be drawn regarding the liquidity position of a firm. The liquidity position of a firm would be satisfactory if it is able to meet its current obligation when they become due. A firm can be said to have the ability to meet its short-term liabilities if it has sufficient liquid funds to pay the interest on its short maturing debt usually within a year as well as to repay the principal. This ability is reflected in the liquidity ratio of a firm. The liquidity ratio are particularly useful in credit analysis by bank & other suppliers of short term loans.

2] LONG TERM SOLVENCY: -

Ratio analysis is equally useful for assessing the long-term financial viability of a firm. This respect of the financial position of a borrower is of concern to the long-term creditors, security analyst & the present & potential owners of a business. The long-term solvency is measured by the leverage/ capital structure & profitability ratio Ratio analysis s that focus on earning power & operating efficiency. Ratio analysis reveals the strength & weaknesses of a firm in this respect. The leverage ratios, for instance, will indicate whether a firm has a reasonable proportion of various sources of finance or if it is heavily loaded with debt in which case its solvency is exposed to serious strain. Similarly the various profitability ratios would reveal whether or not the firm is able to offer adequate return to its owners consistent with the risk involved.

3] OPERATING EFFICIENCY: Yet another dimension of the useful of the ratio analysis, relevant from the viewpoint of management, is that it throws light on the degree of efficiency in management & utilization of its assets. The various activity ratios measures this kind of operational efficiency. In fact, the solvency of a firm is, in the ultimate analysis, dependent upon the sales revenues generated by the use of its assets- total as well as its components.

4] OVERALL PROFITABILITY:

Unlike the outsides parties, which are interested in one aspect of the financial position of a firm, the management is constantly concerned about overall profitability of the enterprise. That is, they are concerned about the ability of the firm to meets its short term as well as long term obligations to its creditors, to ensure a reasonable return to its owners & secure optimum utilization of the assets of the firm. This is possible if an integrated view is taken & all the ratios are considered together.

5] INTER FIRM COMPARISON:

Ratio analysis not only throws light on the financial position of firm but also serves as a stepping-stone to remedial measures. This is made possible due to inter firm comparison & comparison with the industry averages. A single figure of a particular ratio is meaningless unless it is related to some standard or norm. one of the popular techniques is to compare the ratios of a firm with the industry average. It should be reasonably expected that the performance of a firm should be in broad conformity with that of the industry to which it belongs. An inter firm comparison would demonstrate the firms position vice-versa its competitors. If the results are at variance either with the industry average or with the those of the competitors, the firm can seek to identify the probable reasons & in light, take remedial measures.

6] TREND ANALYSIS:

Finally, ratio analysis enables a firm to take the time dimension into account. In other words, whether the financial position of a firm is improving or deteriorating over the years. This is made possible by the use of trend analysis. The significance of the trend analysis of ratio lies in the fact that the analysts can know the direction of movement, that is, whether the movement is favorable or unfavorable. For example, the ratio may be low as compared to the norm but the trend may be upward. On the other hand, though the present level may be satisfactory but the trend may be a declining one.

ADVANTAGES OF RATIO ANALYSIS

Financial ratios are essentially concerned with the identification of significant accounting data relationships, which give the decision-maker insights into the financial performance of a company. The advantages of ratio analysis can be summarized as follows: Ratios facilitate conducting trend analysis, which is important for decision making and forecasting. Ratio analysis helps in the assessment of the liquidity, operating efficiency, profitability and solvency of a firm. Ratio analysis provides a basis for both intra-firm as well as inter-firm comparisons. The comparison of actual ratios with base year ratios or standard ratios helps the management analyze the financial performance of the firm.

LIMITATIONS OF RATIO ANALYSIS

Ratio analysis has its limitations. These limitations are described below: Information problems

Ratios require quantitative information for analysis but it is not decisive about

analytical output . The figures in a set of accounts are likely to be at least several months out of date, and so might not give a proper indication of the companys current financial position. Where historical cost convention is used, asset valuations in the balance sheet could be misleading. Ratios based on this information will not be very useful for decisionmaking.

2] Comparison of performance over time

When comparing performance over time, there is need to consider the changes in price. The movement in performance should be in line with the changes in price.

 When comparing performance over time, there is need to consider the changes in technology. The movement in performance should be in line with the changes in technology. Changes in accounting policy may affect the comparison of results between different accounting years as misleading.

Chapter 2

COMPANY PROFILE

COMPANY PROFILE

BHARAT HEAVY ELECTRICALS LIMITED

The vital role played by the BHEL today in the country is the mark of it continuous efforts to improve the service in the nation by consultancy, manufacturing and offering services in power sector.

This success story of BHEL however goes back to 1956 when its first plant was set up in BHOPAL. Three more major plants followed in HARIDWAR, HYDERABAD and THIRUCHIRAPALLI flowed this. These plants have been the core of BHELS efforts to grow and diversify and become one of the most integrated power and industrial equipment manufacturers in the world. The company now has 14 manufacturing units,8 service centres and 4 power sector regional centres, besides project sites spread all over India and abroad.

BHEL manufactures over 180 products under 30 major product groups and meets the needs of core sector like power, industry, transmission, defence, telecommunications, oil business etc. Its products have established an enviable reputation for high quality and reliability. This is due to the emphasis placed all along on design, engineering and manufacturing to international standards by acquiring and adopting some of the best technologies developed in its own R&D centres. BHEL has acquired ISO 9000 certification for environments. BHEL caters to the needs of different sectors by designing and manufacturing according to the need of its client in power sector.

COMPANY VISION,MISSION and OBJECTIVE

VISION: A world class, innovation, competitive and profitable engineering enterprise providing total business solutions.

MISSION: To be the leading engineering enterprise providing quality products system and services in the field of energy, transportation, industry, infrastructure and other potential areas. VALUES: 1. Meeting commitments made to external and internal customers. 2. Faster learning, creativity and speed of response. 3. Respect for dignity and potential of individuals. 4. Loyalty and pride of the company. 5. Team playing. 6. Zeal to excel. 7. Integrity and fairness in all matters.

OBJECTIVES

GROWTH: To ensure a steady growth by enhancing the competitive edge of BHEL in exiting business, new areas and international operation so as to fulfil national expectations from BHEL.

PROFITABILITY: To provide a reasonable and adequate return on capital employed, primarily through improvements in operational efficiency, capacity utilization and productivity and generate adequate internal resources to finance the company growth. Confidence in providing increased value for this money through international standards of product, quality, performance and superior customer services.

TECHNOLOGY: To achieve technology excellence in operations by development of indigenous technologies to and efficient absorption and adaptation of imported technologies to suit business needs and priorities and provide a competitive advantage of the company. IMAGE: To fulfil the expectation which stock holders like government as own employees, customers and the country at large have from BHEL.

SWOT ANALYSIS OF BHEL The strength, weakness, opportunities and threats which are being experienced by BHEL as a growing concern have been summarized up in the following lines.

STRENGTHS 1. Vast pool of trained man power. 2. Excellent state of art facilities. 3. Good working atmosphere 4. Rapport between management and union. 5. Product manufactured international quality 6. Low labour cost and low manufacturing cost. WEAKNESS 1. Excess man power 2. Slippage in delivery commitments 3. System implementation adequate 4. No financial package 5. Inadequate compensation package to employees.

 OPPORTUNITIES 1. Growing power sector machinery 2. Liberalization has opened up the market 3. Navratna company status 4. Dominant player in domestic market. THREATS 1. Liberalizationentry of MNCS or private sector-more competition. 2. MNCS taking away good employees with attractive packages. 3. Government taxation policy-against manufacturing sector. 4. Poor infrastructure.

PRODUCTS OF BHEL

BHEL manufactures a wide range of power plant equipments and also caters to the industry sector. 1. Gas turbines 2. Steam turbines 3. Compressors 4. Turbo generators. 5. Pumps 6. Pulverizes 7. Switchgears 8. Oil rigs 9. Electrics for urban transportation system 10. Telecommunication.

Chapter 3

Research methdology

METHODOLOGY:

The study basically depends on: 1. PRIMARY DATA 2. SECONDARY DATA

PRIMARY DATA COLLECTION: The information collected directly without any reference is primary data. In the study it is mainly through conservation without concerned officers or staff member either individually or collectively. The data includes. 1. Conducting personal interview with officers of the company. 2. Individual observation and inferences. 3. From the people who are directly involved with the transaction of the firm.

SECONDARY DATA COLLECTION Study has been taken from secondary sources i.e. published annual report of the company. Editing. Classifying and tabulation of the financial data for this purpose performance data of BHEL or the yeary2006-2007 to 2011-2012 have been used.

Chapter 4

Data analysis and interpretation

Current Ratio

year 2006-07 2007-08 2008-09 2009-10 2010-11

current assets 276062 310002 453597 580804 771519

current liability 208869 243220 376332 397574 502024

Ratios 1.32 1.27 1.2 1.46 1.54

Interpretation The ideal ratio for the concern is 2:1 i.e. current assets doubled for the current liabilities considered to be satisfactory.The current ratio of BHEL is less than 1 .Thus it has to maintain its efficient current assets.

Acid Test Ratio Year 2006-07 2007-08 2008-09 2009-10 2010-11 Liquid assets 12 14 15 1475 1415 Liquid liabilities 208869 243220 376332 397574 502024

Acid Test Ratio Current Assets Inventory / Current Liabilities The ideal quick ratio is 1:1 which is considered satisfactory for the concern. The company is maintaining the ratio above the standard norm , thus the management of BHEL is label to meet its current obligations.

Net working capital year 2006-07 2007-08 2008-09 2009-10 2010-11 Net working capital 67193 96410 77265 183230 269495 Capital employed 79459 107986 96894 207051 305907 Ratios 0.84 0.89 0.797 0.884 0.881

NET WORKING CAPITAL = NET WORKING CAPITAL / CAPITAL EMPLOYED A higher networking capital ratio indicates efficient utilization of working capital . Therefore the company should concentrate more on working capital management

Debt equity ratio year 2006-07 2007-08 2008-09 2009-10 2010-11 Total debt 607 587 2566 2034 2265 Equity 3252 3252 3252 3252 3252 Ratios 0.18 0.18 0.789 0.62 0.7

Debt Equity Ratio : The debt equity ratio has been increasing over the years and it has been maintained at a level of .62 for the financial year 2009-10

Fixed assets ratio year 2006-07 2007-08 2008-09 2009-10 2010-11 Fixed Assets 12347 9909 17699 22595 31830 Capital employed 79459 107986 96894 207051 305907 Ratios 0.15 0.09 0.18 0.11 0.1

Fixed Assets Ratio = Fixed Assets / Capital Employed Generally financially well managed company will have its fixed assets financed by long term funds.There fore , the fixed assets ratio should never be more than !.A ratio of .67 is considered ideal.The results forBHEL is much less at 0.1

Interest coverage ratio year 2006-07 2007-08 2008-09 2009-10 2010-11 PBIT 63290 68916 68478 86438 130330 Interest 2300 5870 6826 7101 8583 Ratios 27.51 11.74 10.03 12.17 15.18

Interest Coverage Ratio.= PBIT/INTREST Interest coverage ration of BHEL is not constant , from 2008-09 the ratio is10 as in 2009 -10 the ratio is 12.17, There is a random fluctuation in the ratio

Gross profit year 2006-07 2007-08 2008-09 2009-10 2010-11 Gross profit 63290 68916 68478 86483 130330 Net sales 289241 310235 414816 500342 665323 Ratios 0.218 0.2224 0.165 0.172 0.196

Gross Profit = Gross /net sales

Generally the higher gross profit ratio , the better for the performance of the concern .In BHEL , the company has started to increase from the year on year which is a very good sign for the company.

Operating ratios year 2006-07 2007-08 2008-09 2009-10 2010-11 Operating cost 221227 234677 338382 404647 524531 Net sales 289491 310235 414816 500342 665323 Ratios 0.76 0.76 0.81 0.8 0.79

Operating Ratio : Operating Cost / Net Sales Generally the lower the Operating Cost , the better for the concern.The ratio should be below1 which is satisfactory for the concern.

Debtors turnover ratio year 2006-07 2007-08 2008-09 2009-10 2010-11 Net credit sales 289491 310235 414816 500342 665323 Average debtors 177301 215291 287414 328201 537364 Ratios 1.63 1.44 1.44 1.53 1.24

Debtors Turnover Ratio = Net Credit Sales / Average Debtors The BHEL`s debtor turnover ratio was below 2 .Its has bee increasing since 2008-09 from 1.44 to 1.53 in 2009-10, the increasing trend Implies the efficient management of Debtor and credit sales.

Creditors turnover ratio year 2006-07 2007-08 2008-09 2009-10 2010-11 Net credit purchases 21772 25459 31900 60293 65700 Average creditors 46452 54586 58078 88228 103305 Ratios 0.48 0.4664 0.5493 0.68 0.64

Creditors Turnover Ratio : Net Credit Purchases /Average Creditors Interpretation : The BHEL`s creditors Turn Over Ratio is at 0.68 , it has been on the increasing trend since past two financial years.The management should try to reduce this by adopting proper payment policies.

Fixed asset turnover ratio year 2006-07 2007-08 2008-09 2009-10 2010-11 Net sales 289491 310235 414816 500342 665323 Fixed assets 12247 9909 17699 22595 31830 Ratios 23.63 31.3 23.43 22.14 20.9

Fixed Assets Turnover Ratio. = Net Sales / Fixed Assets At high fixed assets turnover ratio indicates better utilization of the firms fixed assets. A ratio around 5 is considered ideal for the concern .In BHEL it is more than 22.This is a very good sigh for the company.

Total asset turnover ratio year 2006-07 2007-08 2008-09 2009-10 2010-11 Total debt 607 587 2566 2034 2265 Equity 3252 3252 3252 3252 3252 Ratios 0.18 0.18 0.78 0.62 0.7

Total Assets Turnover Ratio : Net Sales / Total Assets The Total Assets turnover ratio of the BHEL is below 1 . This shows greater ability of the firm to utilize the investment in the business

FINDINGS 1. The ideal ratio for the concern is 2:1 i.e. current assets doubled for the current liabilities considered to be satisfactory. The current ratio of BHEL is less than ! .Thus it has to maintain its efficient current assets.

2. The ideal quick ratio is 1:1 which is considered satisfactory for the concern. The company is maintaining the ratio above the standard norm , thus the management of BHEL is label to meet its current obligations.

3. A higher networking capital ratio indicates efficient utilization of working capital . Therefore the company should concentrate more on working capital management 4. The debt equity ratio has been increasing over the years and it has been maintained at a level of .62 for the financial year 2009-10

5. Generally financially well managed company will have its fixed assets financed by long term funds. There fore , the fixed assets ratio should never be more than !.A ratio of .67 is considered ideal. The results for BHEL is much less at 0.11

6. Interest coverage ration of BHEL is not constant , from 2008-09 the ratio is10 as in 2009 -10 the ratio is 12.17, There is a random fluctuation in the ratio

7. Generally the higher gross profit ratio , the better for the performance of the concern .In BHEL , the company has started to increase from the year on year which is a very good sign for the company.

8. Generally the lower the Operating Cost , the better for the concern. The ratio should be below1 which is satisfactory for the concern.

9. The higher the ROCE ratio , the better for the concern. The company has been keeping up the good performance is increasing at the rapid phase which in turn is a good sign for the company.

10. The BHEL`s debtor turnover ratio was below 2 .Its has bee increasing since 2008-09 from 1.44 to 1.53 in 2009-10, the increasing trend Implies the efficient management of Debtor and credit sales.

11. The BHEL`s creditors Turn Over Ratio is at 0.68 , it has been on the increasing trend since past two financial years. The management should try to reduce this by adopting proper payment policies.

12. At high fixed assets turnover ratio indicates better utilization of the firms fixed assets. A ratio around 5 is considered ideal for the concern .In BHEL it is more than 22.This is a very good sigh for the company.

13. The Total Assets turnover ratio of the BHEL is below 1 . This shows greater ability of the firm to utilize the investment in the business

CONCLUSIONS 1. In the year 2006-2007 the net working capital is Rs 67193 lacs. 2. There was decrease in the ratio up to the year 2007-2008. The ratio is decreasing year by year. But the BHEL is maintaining current ratio more than the standard norms of 2. 3. The organization is able to maintain both current ratio and quick ratio above the standard norms. i.e. the ideal current ratio for the concern is 2:1 and the quick ratio is 1:1 but the cash ratio is fluctuating. 4. The quick ratio of the organization is in decreasing trend year by year. 5. Investment in current assets has been increasing to Rs 310002 in 2007-2008. 6. The inventory turnover ratio of BHEL is fluctuating i.e., showing decreasing trend to 2003-2004. But there onwards it has slowly increased till the financial year. 7. The debtors turnover ratio has decreased from the year 2001-2002 to 2002-2003. It was 2.10 in the year 2003-2004. There was decrease in debtors turnover ratio till the financial year.

SUGGESTIONS 1. The current ratio of BHEL is decreasing year by year . it was 2.41 and during the year 2008-2009 it has gone down to 1.2 later in the next financial year 2009-2010 it has gone up to 1.46, so the company should concentrate effectively on the management of Current Assets and Current Liabilities.

2. The Net Working Capital of BHEL is good for almost in range for each and every year. It is always in the ideal ratio for every organization. 3. The BHEL is using the moving average method in valuation of stock. 4. The debtors constitute nearly 50% of the Total Current Assets. For the Company it is difficult to manage the accounts receivables. The company should collect debts as quickly as possible. 5. The company has to exercise cost of control and cost of reduction techniques to increase its profitability. 6. The debtors turn over ratio in 2005-2006 is 1.97. the ratio has increased than previous years except for 2003-2004, which had 2.10. the decreasing ratio shows the inefficient management. They should concentrate more on the collection of the debts. 7. The return on investment ratio of the BHEL is 59.40 in 2005-2006. It has increased when compared to previous years ratios. It is beneficial to investors who are interested to know the profits earned by the company. 8. The investment in loans and advances should be minimized to possible extent. 9. Effective internal control system should be established. So that it can have control over all aspects of the company.

Last 5 year Balance sheet of BHEL

Balance Sheet of Bharat Heavy Electricals Mar '11 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 489.52 489.52 0.00 0.00 24,883.69 0.00 25,373.21 0.00 123.43 123.43 25,496.64 Mar '12 12 mths Application Of Funds Gross Block 9,729.62

------------------- in Rs. Cr. ------------------Mar '10 12 mths 489.52 489.52 0.00 0.00 19,664.32 0.00 20,153.84 0.00 163.35 163.35 20,317.19 Mar '11 12 mths 8,049.30 Mar '9 12 mths 489.52 489.52 0.00 0.00 15,427.84 0.00 15,917.36 0.00 127.75 127.75 16,045.11 Mar '10 12 mths 6,579.70 Mar '8 12 mths 489.52 489.52 0.00 0.00 12,449.29 0.00 12,938.81 0.00 149.37 149.37 13,088.18 Mar '09 12 mths 5,224.43 Mar '08 12 mths 489.52 489.52 0.00 0.00 10,284.69 0.00 10,774.21 0.00 95.18 95.18 10,869.39 Mar '08 12 mths 4,443.03

Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

5,409.83 4,319.79 1,324.63 461.67 13,444.50 26,336.13 6,671.98 46,452.61 14,217.32 0.00 60,669.93 0.00 33,638.01 7,641.37 41,279.38 19,390.55 0.00 25,496.64 2,424.33 103.67

4,648.82 3,400.48 1,762.62 439.17 10,963.03 27,354.62 1,430.15 39,747.80 13,267.07 8,200.00 61,214.87 0.00 31,469.58 15,030.37 46,499.95 14,714.92 0.00 20,317.19 2,324.26 411.71

4,164.74 2,414.96 1,550.49 79.84 9,235.46 20,688.75 865.08 30,789.29 4,801.24 8,925.00 44,515.53 0.00 28,097.73 4,417.98 32,515.71 11,999.82 0.00 16,045.11 2,538.13 325.16

3,754.47 1,469.96 1,212.70 52.34 7,837.02 15,975.50 1,950.51 25,763.03 4,616.67 8,364.16 38,743.86 0.00 23,415.10 4,975.58 28,390.68 10,353.18 0.00 13,088.18 2,546.25 264.32

3,462.21 980.82 658.47 8.29 5,736.40 11,974.87 1,511.02 19,222.29 7,366.17 6,875.00 33,463.46 0.00 16,632.97 7,608.68 24,241.65 9,221.81 0.00 10,869.39 1,673.19 220.10

Consolidated Balance Sheet of Bharat Heavy Electricals

------------------- in Rs. Cr. -------------------

Mar '11 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Init. Contribution Settler Preference Share Application Money Employee Stock Opiton Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Minority Interest Policy Holders Funds Group Share in Joint Venture Total Liabilities 489.52 489.52 0.00 0.00 0.00 0.00 0.00 24,913.54 0.00 25,403.06 242.99 125.83 368.82 4.97 0.00 0.00 25,776.85 Mar '12 12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets 9,877.47 5,334.61 4,542.86 1,739.20 5.94 13,525.48 26,530.53 6,734.33 46,790.34 14,351.94 0.00 61,142.28 0.00 33,965.31 7,688.12 41,653.43 19,488.85

Mar '10 12 mths 489.52 489.52 0.00 0.00 0.00 0.00 0.00 19,665.56 0.00 20,155.08 0.00 270.17 270.17 0.00 0.00 0.00 20,425.25 Mar '11 12 mths 8,344.13 4,734.43 3,609.70 2,202.77 11.30 11,017.49 27,510.46 1,449.52 39,977.47 5,674.64 8,256.88 53,908.99 0.00 31,690.97 7,620.36 39,311.33 14,597.66

Mar '9 12 mths 489.52 489.52 0.00 0.00 0.00 0.00 0.00 15,406.46 0.00 15,895.98 1.83 146.47 148.30 0.00 0.00 0.00 16,044.28 Mar '10 12 mths 6,857.13 4,248.76 2,608.37 1,552.82 5.94 9,283.78 20,792.61 888.56 30,964.95 4,672.00 8,967.86 44,604.81 0.00 28,285.14 4,444.88 32,730.02 11,874.79

Mar '09 12 mths 489.52 489.52 0.00 0.00 0.00 0.00 0.00 12,433.22 0.00 12,922.74 0.00 166.56 166.56 0.00 0.00 0.00 13,089.30 Mar '09 12 mths 5,500.84 3,836.47 1,664.37 1,157.41 5.94 7,891.99 16,071.53 1,955.87 25,919.39 4,591.05 8,373.59 38,884.03 0.00 23,628.28 4,994.17 28,622.45 10,261.58

Minority Interest Group Share in Joint Venture Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

0.00 0.00 0.00 25,776.85 2,117.68 103.79

0.00 0.00 3.82 20,425.25 2,574.31 411.73

0.00 0.00 2.36 16,044.28 2,548.22 324.73

0.00 0.00 0.00 13,089.30 2,584.45 263.99

BIBILOGRAPHY

Books and references

1. Khan M.Y, Jain P.K., (2010), Financial Management, 3rd edtion, McGraw Hill Education. 2. Maheshwari S.N., (2009), Financial Management- Principles and Practice, 9th Edition Sultan Chand & Son.

Websites

1. http://www.bhel.com/financial_information/index.php 2. http://www.studyfinance.com/lessons/workcap

News paper 1. Economics times 2. Times of india