A STUDY ON

“RATIO ANALYSIS”

WITH REFERNCE TO

BHARAT HEAVY ELECTRICALS LTD

VISAKHAPATNAM

A project report submitted to

SCHOOL OF MANAGEMENT STUDIES, JNTUK

In partial fulfilment for the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

TAMADA MADHAVI
Reg.No.21SM1E0034

Under the Esteemed Guidance of

Dr.P. V.V. Satyanarayana

MBA,M.com, M.Phil.,B.L,NET,Ph.D.

School Of Management Studies

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY, KAKINADA

KAKINADA-533003 (A.P) INDIA

(2021-2023)
 A STUDY ON

“RATIO ANALYSIS”

WITH REFERNCE TO

BHARAT HEAVY ELECTRICALS LTD

VISAKHAPATNAM

A project report submitted to

SCHOOL OF MANAGEMENT STUDIES, JNTUK

In partial fulfilment for the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

TAMADA MADHAVI
Reg.No.21SM1E0034

Under the Esteemed Guidance of

Dr.P. V.V. Satyanarayana

MBA,M.com, M.Phil.,B.L,NET,Ph.D.

School Of Management Studies

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY, KAKINADA

KAKINADA-533003 (A.P) INDIA

(2021-23)
 DECLARATION

I, TAMADA MADHAVI, student of School of Management Studies, JNTUK,

Kakinada hereby declare that the project report entitled “A STUDY ON
RATIOANALYSIS WITHREFERENCE TO BHEL, Visakhapatnam” has been
submitted by me, in partial fulfillment of the requirement for the award of the
Degree Master of Business Administration.

This project work is original and has not been submitted to any other university
for the award of any Degree or Diploma.

PLACE: KAKINADA TAMADA MADHAVI

DATE: Regd No: 21SM1E0034
 School of Management Studies
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY KAKINADA

Kakinada –533003(A.P) INDIA

Certificate
This is to certify that the project work entitled “ A STUDY ON
RATIO ANALYSIS WITH REFERENCE TO BHARAT HEAVY ELECTRICALS
LIMITED, VISHAKHAPATNAM” is a bonafide work of “ Miss. TAMADA
MADHAVI“ submitted in partial fulfilment of the requirement for the award of the degree
Master of Business Administration by JAWAHARLAL NEHRU TECHNOLOGICAL
UNIVERSITY KAKINADA. During the year 2022.

Project Guide Director, SMS

External Examiner
 JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY KAKINADA

SCHOOL OF MANAGEMENT STUDIES

GUIDE CERTIFICATE

This is to certify that the project report entitled “A STUDY ON RATIO

ANALYSISWITH REFERENCE TO BHARAT HEAVY ELECTRICALS
LIMITED, VISAKHAPATNAM” submitted in the partial fulfilment of the
requirements for Master of Business Administration to Jawaharlal Nehru
Technological University Kakinada by TAMADA MADHAVI with Regd
No.21SM1E0034 has worked under my supervision and guidance has
successfully completed the academic project.

DATE:
PLACE: KAKINADA PROJECT GUIDE
 ACKNOWLEDGEMENT

To the following people, I owe an enormous debt of gratitude and a great deal of joy for
helping me bring my idea to fruition.

I'd want to start by saying how grateful I am to the director of the school of management
studies, Dr. A. Krishna Mohan, who is also a B.Tech., M.Tech., MBA, and Ph.D.
candidate, for allowing me the chance to work on this project.

I am also thankful to the management of BHEL, VISAKHAPATNAM for their cooperation

during my project work.

I'd want to publicly acknowledge the invaluable assistance I received from my project's
guide, Dr.P.V.V.Satyanarayana (MBA, M.Com, M.Phil, B.L., NET, Ph.D.).

Finally, I'd want to thank my amazing professors and my wonderful parents, without whom I
never would have been able to complete this project. Sincere gratitude is also extended to the
friends and well-wishers who assisted me in finalising the project and submitting it on time.

TAMADA MADHAVI
Regd No:21SM1E0034
 CONTENTS PAGE NO

CHAPTER-1

• Introduction
• Need for study
• Scope of the study 1-13
• Objectives of the study
• Limitations of the study

CHAPTER-2
• Review of literature
• Research gap 14-29
• Statement of the problem
• Methodology of the study

CHAPTER-3

• Industry profile 30-50

• Company profile

CHAPTER-4

• Data analysis &Interpretation 51-69

CHAPTER-5

• Summary
• Findings
• Suggestions 70-79
• Conclusion
• Bibliography
• Annexure
CHAPTER-1

• INTRODUCTION

• NEED FOR THE STUDY

• SCOPE OF THE STUDY

• OBJECTIVES OF THE STUDY

• LIMITATIONS OF THE STUDY

 INTRODUCTION

FINANCIAL MANAGEMENT:
Administration that focuses on the organisation and management of a company's finances is
known as financial management. Prior to 1980, it was a subfield of economics; as a distinct
academic field, it emerged until recently. Even now, it continues to rely significantly on
economics for its theoretical principles and has no distinct body of knowledge of its own. If
you want to make informed choices about the money matters of your business, it helps to
have a firm grasp of the theoretical underpinnings of financial management.

Definitions in the field of financial management:

Use of capital funds efficiently is a primary focus of financial management. — EZRA

SOLOMAN

Management choices that lead to the firm's purchase and financing of long- and short-term
credits are what "Financial Management" is focused on. –PHILLIPPATUS.

"Financial Management" refers to the processes involved in securing and preserving money
to support the achievement of an organization's goals. - WHEEL

With these terms defined, we can learn about the roles played by financial managers. These
include the acquisition of finances and their efficient use, both of which make use of various
methods.

REPORTS OF FINANCIAL STATEMENTS

The purpose of preparing financial statements is to provide investors and creditors with a
periodic review or report on the progress made by management. These statements focus on
the following topics: the current state of the business's investments and the outcomes of
those investments over the period under review. The term "financial review statement" refers
to a report that compiles relevant information and presents it in a way that is compatible with
accepted accounting practises. The document's goal is to help readers gain familiarity with
and an appreciation for various monetary elements of a company. Financial statements are
the results of using accounting data to make these projections. Therefore, the following two
documents are what most people mean when they talk about a financial statement:

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Whichever name it goes by, it's the income statement or profit and loss statement.
One's balance sheet or statement of financial situation.

Shareholders will use these to choose whether to retain or sell their holdings, creditors will
reevaluate their lending practises, management will assess their fiscal results, and the
government may consider new tax policies.

ANALYSIS RESOURCES FOR FINANCIAL STATEMENTS

Both (a) analysing the data and (b) interpreting the data are necessary for a thorough analysis
of financial accounts.

Analysis refers to the process of using various methods of analysis to ascertain the character
of accounting information, while interpretation refers to the process of providing
commentary on the examined data.

Any interested party is now able to quickly and easily grasp the operational results and
financial health of a company from the company's financial statements. This is accomplished
by using the following financial analysis techniques.

• Comparative statement Analysis

• Common size statement analysis
• Trend Analysis
• Ratio Analysis

INTRODUCTION TO RATIO ANALYSIS

One of the most useful methods of analysing a company's financial health is the ratio
analysis. Finding meaning in numbers via ratio analysis. It's useful for comparing the relative
risks and returns of businesses of varying sizes. It's just a tool for figuring out where a
company stands financially.

Definition of Ratio

The Latin word for "Ratio" literally translates to "Reason." A ratio is a straightforward
numerical comparison of two quantities. It may be thought of as the division of the two

2
phrases given as input. This interpretation of Ratio applies to any mathematical connection
between two variables. Understanding a company's financial health with the use of ratios is
possible.

CLASSIFICATION OF RATIO’S:

The financial statements provide the raw data for a wide variety of ratios, each tailored to a
certain set of customers.

Numerous categories exist for dividing up accounting ratios. You might think about ratios as
falling into one of these major categories:
• Liquidity Ratios
• Leverage Ratios
• Activity ratios
• Profitability Ratios

I.LIQUIDITY RATIOS:
The company's short-term financial situation may be gleaned from the liquidity ratio. One
definition of liquidity is a company's capacity to pay its bills when they come due. As such,
the liquidity ratio is a way to assess the extent to which a company's short-term obligations
exceed its liquid assets. If you have sufficient liquid assets to cover your present obligations,
your liquidity situation is good. On the other hand, a precarious situation exists when short-
term obligations cannot be quickly covered by liquid assets.

1. Current Ratio:

You might think of the current ratio as the proportion of liquid assets to current debts. This
metric is sometimes referred to as the "working capital ratio." At 2.1 places, as per the rule of
thumb or arbitrary criteria, one is regarded to have achieved success. This proportion
consists of two parts:
1.Current assets
2.Current liabilities

CURRENT RATIO = CURRENT ASSETS

CURRENT LIABILITIES

3
2.Quick Ratio:
Quick Ratio is also known as Acid Test Ratio or Liquid Ratio. Itshows the link between
liquid assets to liquid / fast liabilities. The word liquidity refers to the capacity of a
corporation to fulfil its short-term commitments as and when they fall due.
Quick Assets=Current Assets– Stock

Quick Ratio = Quick Assets

Current Liabilities
3. Absolute Liquid Ratio:
This ratio enables us to known the immediate liquidity position of the firm. It is the
relationship between absolute liquid assets to current liabilities. Absolute liquid assets, which
can be converted into cash within a very short period.

Absolute Liquid Ratio = Absolute Liquid Assets

Current Liabilities
Absolute Liquid Assets = Current Assets - (Inventory + Debtors)

II.LEVERAGE RATIOS:
Leverage ratios, also known as capital ratios or solvency ratios, reveal a company's capacity
to satisfy its long-term financial commitments, including interest payments and principal
payments. Leverage ratios indicate how much of a company's funding comes from debt vs
equity.

Leverage ratios are used to evaluate a company's exposure to financial risk and its capacity
to leverage debt for shareholder value creation.

Leverage ratios can in many forms, including:

1.Debt-Equity Ratio:

The ratio between owner money and debt service provides insight into the financial health of
a company. This ratio is also known as the External - Internal Equity Ratio or the Debt to
Net Worth Ratio, and it shows how outside investors' money compares to the company's own
money.

From an organization's point of view, it's not ideal if the ratio is large since it indicates that
creditors' claims are stronger than the owners'. There may be instances when not even the

4
interest payments owed to creditors can be covered by earnings. For this reason, a low ratio
is indicative of a strong position.

Debt – Equity Ratio = Total debt

Total shareholders’ Equity

2. Proprietary / Equity Ratio:

A company's equity share holders' money as a percentage of its total assets may be calculated
using this ratio. One key indicator of a company's long-term solvency is the proportion of
proprietor's money to total funds (Total assets). Ownership to Net Worth Ratio is another
term for this metric.
Proprietary Ratio = Shareholders funds
Total Assets

3.Solvency Ratio:
Calculating this ratio allows you to see how your entire assets compare to your total
liabilities. The term "solvency" is used to describe a company's ability to pay its debts. In
order to pay off both its immediate and long-term debts. A corporation is considered to be
solvent in the long run if it can comfortably meet its long-term debt obligations. A
corporation is considered short-term solvent if it has sufficient cash on hand to meet its
immediate financial obligations.

Solvency Ratio = Total Liabilities

Total Capital
4. Interest Coverage Ratio:
Profit (before interest and tax) as a percentage of interest paid. That quantity is represented
as a count. Debenture investors and other lenders may benefit from this ratio.
Interest coverage Ratio = PBIT
Interest
Where PBIT = Profit before interest and Tax

5. Fixed Assets to Net Worth Ratio:

The ratio between a company's fixed assets and its shareholders' equity.
Fixed Assets to N.W. Ratio = Fixed Assets
Net Worth
Note: A ratio of 0.6 to 0.65 is considered favorable.

5
6. Fixed Assets Ratio:
When comparing a company's fixed assets to its long-term finances, this ratio is used to draw
conclusions about the two.
Fixed assets Ratio = Fixed Assets
Total Long-Term Funds
Note:A Ratio of 1:1 is considered satisfactory

PROFITABILITY RATIOS:
One may say that making money is the main reason for starting a company. Profitability is
crucial to the company's continued existence. Companies may be evaluated by calculating
profitability ratios to see how well they are doing in relation to their peers.

Following is a discussion of many Profitability ratios.

1. Gross Profit Ratio:

The ratio of gross profit to net sales is known as the gross profit ratio. It shows how much of
a drop in unit sales prices may be made before the business starts losing money. To gauge
profitability, examine the gross profit ratio and how it has changed over time for businesses
in the same industry.
When comparing two businesses, a larger ratio is always seen as an indicator of greater
profitability.

• Sales prices raised independently of input costs.

• Cost of products sold per unit has decreased.
• Variation in selling price and selling costs

Gross Profit Ratio = Gross Profit

Net Sales.
A higher ratio is considered favorable

2.Net Profit Ratio:

The net profit ratio compares the after-tax net profit to the total revenue. Management
effectiveness in the firm's production, sales, administration, and other functions is reflected
here.

6
The greater the ratio, the more lucrative the venture. Profits relative to investment or capital
utilised in the firm must also be taken into account when attempting to make sense of this
ratio.

Net profit ratio = Net Profit after Tax

Net sales.
Generally speaking, a larger ratio is preferred.
3. Operating Profit Ratio:
To do this, we divide the company's operating profit by its net sales.
Operating profit ratio = Operating Profit / Net Sales.

Where operating profit = Net Sales – Operating Cost.

(or)
Where operating profit =Gross Profit – Operation expenses.
Profitability increases as the ratio rises.
4.Expenses Ratio:
To what extent do certain costs as a percentage of revenue are shown. Operating ratio
measures the typical range of all operating costs. To get expenditure ratios, just divide the
total amount spent on all relevant expenses by the company's net revenue. Each category of
costs may have its own ratio determined.
Administrative expenses ratio =Administrative expenses
Net Sales
Cost of Goods sold = Cost of Goods Sold
Net Sales
Selling & Distribution expenses Ratio =Selling & Distribution Expenses
Net Sales
Non-operating expenses Ratio = non-operating expenses
Net Sales
OVERALL OTHER PROFITABILITY RATIOS:
The business's overall profitability may be gleaned from these ratios. A company's
profitability indicates its level of productivity. The more the company's earnings, the more
productive it is thought to be. There are many different sorts of profitability ratios, including
-

Return of Assets Ratio:

This ratio is helpful for gauging the return on the total capital put into the company's assets.
How profitably the fund as a whole is exploited is reflected by this metric.

7
Return Assets Ratio = Profit After Tax × 100
Total Assets
Return on Net Worth Ratio (RNW):
It represents the return on shareholders' equity and reserves after accounting for taxes. As
BHPV is a publicly traded corporation, dividends are not an issue. When analysing a
company's overall efficiency, this ratio is among the most crucial metrics to consider. Both
current and potential investors, as well as the company's leadership, should pay close
attention to this ratio. Since a greater value for this ratio indicates more efficient use of a
company's resources, it is indicative of success.
RONW = Profit after Tax× 100
Net Worth
Return on Equity Capital:
This ratio determines the proportion of paid-up equity share capital to net profit after tax,
dividends, and preferences.
Return on equity capital =Net Profit after Tax – Preference Dividend
Equity Share Capital
Earnings Per Share (EPS):
With this ratio, we can easily determine how much profit the firm is generating per share of
stock.

EPS = Net Profit after Tax – Preference Dividend

No. of Equity Shares
Earning Power Ratio (EPR):
It correlated after-tax profit with the amount of invested capital. Considering that it
quantifies the return earned on every single rupee invested, it is a critically important metric
for shareholders.
EPR = Profit After Tax
Capital Employed
IV.ACTIVITY RATIOS:
A company's activity ratio may provide insight into how well it makes use of its assets.
These ratios are sometimes referred to as "turn over ratios" since they measure the rate at
which an organization's assets are transformed into cash. How well assets are handled has a
direct bearing on how much money is made. A variety of turnover ratios may be computed,
including debtors' turnover, stock turnover, capital turnover, etc., depending on the objective.

8
1. Inventory Turnover Ratio:
When it comes to meeting customer demands, it's essential for every company to have a
stockpile of completed items on hand. On the other hand, there shouldn't be an excessively
large or low stock on hand.

A company's ability to handle its stock efficiently may be measured by looking at its
Inventory Turnover Ratio (I.T.R.). This ratio is the number of times inventory has been
turned over over the given time period. A lower proportion of total capital is held in the form
of working capital when turnover is high. Excessive stock is indicated by a relatively low
ratio.
ITR = Cost of Goods Sold
Average Inventory
2. Debtors Turn Over Ratio:
A company may offer products both immediately and on credit. One of the most effective
forms of advertising is offering customers credit. The velocity of debtors is the rate at which
they are traded over the course of a year. In most cases, a greater value of debtor turnover
indicates more effective management. Also, ineffective handling of debtors is indicated by a
low turnover rate.
Debtors turnover ratio = Net Credit Sales
Average Trade Debtors
3.Working Capital Turnover Ratio (WCTR):
The speed with which net working capital is being used is represented by this ratio. It
measures how many times in a year the company's working capital is used.
WCTR = Cost of Sales
Average Working Capital
4.Fixed Assets Turnover Ratio (FATR):
Use of fixed Assets as measured by this ratio provides insight into a company's operational
effectiveness.
F.A.T.R. = Cost of Goods sold
Fixed Assets
5.Capital Turnover Ratio:
The capital turnover ratio measures how often capital is used for production. You may use
this ratio to get an idea of how well a company is making use of the money it has on hand.
Capital turnover ratio = Cost of sales
Capital employed

9
 NEED FOR THE STUDY

Production, promotion, and money management are the three pillars upon which a company
is built. The financial side of things is notoriously difficult to isolate from the manufacturing,
marketing, and other departments. Financing, investment, and dividend choices are the
actions taken by a company to acquire capital, invest those funds, and distribute the resulting
profits to shareholders. This is an intentional effort to maintain a steady state between cash
input and outflow. Accounting requires careful preparation, management, and carrying out of
the company's actions.

The significance of the study, Financial Statement Analysis in BHEL, Vishakhapatnam, rests
on the premise that misinterpretation of financial aspects may be one of the main causes of
financial strains experienced by public sector enterprises in India during the late 1980s and
early 1990s, or of low levels of profit earned during those decades.
If businesses are able to efficiently oversee their financial processes as a whole, they will
have amassed the means necessary to fuel their own expansion as well as the economy at
large.

Financial results may be used by company shareholders to make investment decisions based
on this study’s findings, which illustrate the company’s operational efficiency and correct
use of cash. Liquidity, efficiency, leverage and profitability are all critical considerations, as
is the study of interrelationships between them so that enterprises make conclusions about
the company’s performance, as well as its strengths and weaknesses.

So, "RATIO ANALYSIS" is used to look at how the company operates.

10
 SCOPE OF THE STUDY

The research relates to one of the most important subfields of finance, namely the analysis
and interpretation of financial statements. Performance may be assessed using a variety of
approaches. In this case, the analysis will be confined to the ratio of the ratios. According to
the BHEL annual reports, the data for this research was gathered from 2017-2018 to 2021-
2022, the study’s scope is restricted to five years.

The study also confined to financial statement analysis through ratio analysis methods are
using for the study.

11
 OBJECTIVES OF THE STUDY

The following objectives have been set for this investigation of BHEL:

• To determine the extent to which BHEL is financially efficient.

• To determine BHEL's liquidity efficiency
• To evaluate BHEL's financial health by calculating its debt, equity, and leverage
• To evaluate BHEL's productivity in the workplace
• To Determine BHEL's earnings patterns in order to:
• Evaluate BHEL's financial health as a whole.

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 LIMITATIONS OF THE STUDY

These limitations apply to every study:

• Secondary financial data is all that is considered in this research, and no other factors
were included.
• The total time spent on the research is a short 45 days. There was no way to gather
absolutely reliable data.
• The analysis for this project was conducted using data collected from relevant
government agencies and published yearly reports. Only the first five years are
included in the submitted study. As a result, this will serve as the foundation upon
which the analysis is conducted.
• The organization is suffering with loses since last 5 years. So, that the taxes are not
paid by the organization. So, the net profit after tax is not calculated.

13
CHAPTER-2

• REVIEW OF LITERATURE
• RESEARCH GAP
• STATEMENT OF THE PROBLEM
• METHODOLOGY OF THE STUDY

14
 REVIEW OF LITERATURE

ARTICLE: International Journal of Research in Business and Management and Its Impact
on the Indian Economy has released an article analysing the ratio of Tata Steel to Jindal
Steel. Amandeep, an adjunct faculty member of Baba Farid University in Bathinda.

ABSTRACT:
Ratio analysis is an integral aspect of the financial statements, which are in turn crucial to the
process of company planning. Useful for comparing the financial health of two distinct steel
businesses in terms of liquidity, profitability, and solvency. Keeping enough cash on hand
reduces the likelihood of going bankrupt and points the way toward maximising profits by
preserving a strong reputation for trustworthiness. In this article, we utilise ratios like
Current Ratio, Quick Ratio, Normalized Profit Ratio, Operating Profit Ratio, and Financial
Analysis Turnaround Ratio to compare and contrast Tata Steel and Jindal Steel Power in
terms of their liquidity and profitability. The research used secondary data collected over the
last five years. All of the information for this research came from publicly available sources
online for both sectors. Profitability, quick access to cash, and low DER are all relevant
concepts.

Objectives of the Research:

• Analyze how well Tata Steel and Jindal Steel and Power are doing financially.
• To examine the similarities and differences in the business strategies of Tata Steel and
Jindal Steel and Power.

RESEARCH METHODOLOGY:

• The current study used an exploratory research approach to analyse and interpret the
existing data.
• Secondary data is utilised and gathered from corporate websites for research
purposes.
• Five years, from 2012-2013 to 2016-2017, are included in the study's time frame.
• Different ratios and correlation analysis are used to validate the comparative financial
statements in the research.

15
CONCLUSION:

Tata Steel Limited and Jindal Steel & Power Limited's liquidity, profitability, and solvency
have been compared and contrasted. That's why it's recommended that both businesses keep
their current and quick ratios healthy. Both revenue and profit are on the rise. The solvency
ratio indicates a precarious balance, which, to satisfy investors, must be maintained.

16
ARTICLE: The International Journal of Advanced Research (IJAR), Dr.G. Lakshmi, Afrin
Banu K., and others have released a study on ratio analysis based on financial analysis of
Reliance Industries Limited.

Reference: http://dx.doi.org/10.21474/IJAR01/12818.

ABSTRACT:
The financial analysis is useful for learning about the company's financial standing. It also
aids in forecasting future profitability, so that the corporation may adjust its strategies
accordingly. The purpose of the research is to examine Reliance Industries Limited's (RIL)
financial performance during the last five years. The study's goal is to calculate RIL's
turnover, profitability, and liquidity. Ratio analysis is the method used to evaluate the
company's financial health. The tool provides a basis for comparing the current year's
financial situation to that of previous years, and it also offers some ideas for how the
organisation might develop in order to achieve better results in the future. Secondary
resources, including annual reports, corporate websites, and other reputable online resources,
are mined for the information used in this study. The results of the investigation show that
the organisation is falling short in many key areas. Facilitating the achievement of the
company's target ratios via such enhancement. In comparison to liquidity ratios, profitability
and turnover ratios do well. While the firm was able to reach its desired profitability ratios in
a matter of years, it was unable to do so in terms of its liquidity ratios for even a single year.

Further, for the last five years, working capital turnover has been negative. If the firm wants
to increase its working capital and achieve a positive rate, it must reduce its current
liabilities. It's bad for business if the company's current obligations have consistently
outpaced its current assets.

All rights reserved, International Journal of Art and Research, 2021.

The aims of the research are as follows:

• Calculating cash flow, profits, and sales volume.
• Ratio analysis of the company's performance.

Analytical Tools:
Ratio analysis is the chosen method of statistical analysis for this investigation. Ratio
analysis is a method of studying a company's financial statements to learn more about its

17
liquidity, efficiency, profitability, and turnover rate. Ratio analysis is a useful tool for
assessing how an organisation is faring at the present time.

RESULT OF THE STUDY:

One, neither liquidity ratio met the standards set by the ideal ratios. As a result, it's obvious
that RIL has a lack of liquid assets and inadequate current assets.

Return on assets of 5% is considered optimal. In 2015–2016, 2016–2017, and 2017–2018,

the firm achieved its target ratio since its total assets kept growing. However, it was a total
bust in 2018–2019 and 2019–2020.

Third, when looking at all of RIL's financial years, 2018 had the best performance of its
turnover ratio in the whole sample (ISSN:2320-5407).

Int.J.Adv.Res.9(05),149-161162019.

As a result, the firm's investment efficiency has increased.

SUGGESTIONS:

• In order to improve the liquidity ratios, the corporation has to reduce its current
obligations and enhance its current assets.
• In order to preserve its profitability ratios at their current maximum, the firm will
need to work hard to increase its profit and net income in the following years.
• To improve its turnover rates, the firm has to consistently raise its net sales.

CONCLUSION:

To measure any significant metric, Reliance Industries Limited is India's biggest firm. RIL is
able to acquire weaker companies and drive them out of business. Comparative balance
sheets and ratio analysis are used to draw conclusions about the company's financial health
from 2015–2016 through 2019–2020. Secondary resources were used for the analysis. A
complete image of the firm may be gleaned from this examination. The findings of this
research will also aid management in formulating new strategies and directions. The research
also provides insight into the practicality of the instruments. The business is in a good
position overall, but there are still certain areas where it may improve in order to reach the

18
optimum ratios. If the corporation had lowered its borrowings, its financial situation would
have been much better. One important downside is that the corporation has not been able to
attain its target liquidity ratios, and the reason for this is the excessive borrowings. As a
result, the organisation stands to benefit greatly by implementing the recommendations
presented in this research.

19
ARTICLE: International Journal of Innovative Science and Research Technology released
a study on ratio analysis using Bajaj Steel Industries Pvt.Ltdfinancial .'s statements in
volume 6, issue 2, February 2021 (ISSN: 2456-2165).

ABSTRACT:
The application of ratio analysis to Bajaj steel Industries Pvt. Ltd.'s financial statements is
the subject of this research. A review of the company's financial performance during the
previous three years is included in the report. Using Bajaj Steel Industries Pvt. ltdfinancial .'s
statements for the years 2016–2017, 2017–2018, 2018–2019, and 2019–20, this study
analyses and interprets the company's profitability, liquidity, performance, and financial
position. Financial ratios were utilised to get insight into how well a firm performed during a
certain time frame. Using the ratio, one may have a complete understanding of the state of
the business. The ratio shows that Bajaj Steel Industries has been successful, particularly in
terms of the net profit to total revenue. Using an average net profit margin as a proxy for
comparing direct costs is misleading. If the company's present assets are sufficient to cover
its current commitments, then it may avoid taking on any further long-term debt. It has been
suggested that the underperforming firm investigate means of increasing sales during periods
of low demand in order to boost profitability and so acquire more capital with which to build
and expand the business. Since the research is based on data from just three years, it is only
able to make restricted comparisons. All of the company's performance throughout the years
has been compared.

REQUIREMENT FOR THE STUDY:

• To analyse the financial health of Bajaj Steel Industries using ratios and other
metrics. This firm's profitability and output.
• The research is crucial and helpful in many ways, both directly and indirectly for
businesses.

The aims of the research are as follows:

• To learn how ratio analysis may help you make sense of the numbers in your financial
statements.
• To learn how to calculate and forecast a company's performance and finances using
financial ratios.
• Spend three years researching the sector's overall financial viability.

20
LIMITATIONS WITH THE STUDY:

• Inflationary pricing changes are not taken into account by the ratio. Numerous
comparisons have been made without taking into account the fact that prices have
fluctuated over time by utilising historical costs.
• This qualitative dimension of businesses is completely disregarded by accounting
ratios.
• The ratio's definition has not been standardised. This suggests that the ratio formula
may be used in a variety of ways by various companies.

METHOD OF STUDY:

• Methods for Selecting Samples at Random

• This section's population will consist of employees of Bajaj Steel Industries.
• Bajaj Steel Industries Pvt. Ltd., Sampling Unit.
• Sample Period: 1 April 2016–31 March 2020.
• Strategies for Taking Samples: Using a version of the Simple Random method used
by Bajaj Steel Industries Pvt.
• Size of Sample: All of the company's annual and financial reports over the last three
years.
• Secondary data collection occurs via perusing the Bajaj Steel Industries website for
information relevant to the major. Literature such as textbooks, periodicals, business
journals, and newspapers.

SUGGESTIONS:

• The business' bottom line will improve if it exercises cost discipline and makes an
honest effort to reduce expenses.
• Investors in Bajaj Steel Industries' stock would be well to familiarise themselves with
the company's background and operations before purchasing shares.
• Businesses may boost their earnings by focusing on growing their deposits and ROA.
• To boost their net profit ratio, they should: • Diversify their revenue streams and rein
down expenses.
• The firm's debtors are an important source of revenue, and the corporation would be
wise to keep them.

21
CONCLUSION:

The company's leaders must understand how to turn their capital into cash via the acquisition
of assets. The company's 2018–2019 fiscal year has been marked by nothing but careful
management of all assets. The ratio at the moment is stale. That the company's cash flow is
secure. The return on investment for the company's shareholders and owners is adequate.
The turnover of working capital is quite high, indicating that the working capital cycle is
functioning well. Capital belonging to the firm is being used effectively. The percentage of
long-term profitability known as Return on Capital Employed rises steadily over time. The
company's earnings would rise if the debtors ratio were adjusted. Although the proprietor
fund is already outstanding, it has to be enhanced. If the firm wants to expand its worth, it
must enhance its relationships with its creditors and debtors.

22
ARTICLE: Research Hub-International Multidisciplinary Research Journal(RHIMRJ)
released a study on ratio analysis based on a financial analysis of Hindustan Unilever
Limited(HUL) in issue 2-5 of their journal in May 2015.

ABSTRACT:

The data used in this article was gathered from "www.hul.com" and
"www.moneycontrol.com" from 2009-2010 to 2013-2014 with the goal of learning more
about Hindustan Unilever Limited (HUL). Ratios, Mean, Standard Deviation, and
Correlation Coefficient have been computed for the Company Data in the next phase. The
FMCG market is the country's fourth greatest economic driver. Ratio analysis and a t-test
were used to assess the results of Indian fast-moving consumer goods (FMCG) businesses in
the research.

OBJECTIVES:
1. Learn about Hindustan Unilever Limited's financial performance.
2. To forecast Hindustan Unilever Limited's future profitability.
3. To learn about Hindustan Unilever Limited's current liquidity situation.

SCOPE OF THE RESEARCH:

This report examines Hindustan Unilever Limited's (HUL) financial accounts for the years
2009-2010 through 2013-2014. It's possible to make it valid for a longer time frame. Sales,
inventories, profits, and other metrics may all be projected into the future using statistical
analysis. All ratios are fair game for the statistical analysis, and by using them together we
may get far more in-depth findings. In order to get insight into the state of the industry as a
whole, the statistical study might be extended to include other firms in the same field.

LIMITATIONS WITH THE STUDY:

1. It uses past information as its foundation.
2. The research is reliant on secondary data collected from www.money control.com and
www.gnfc.in.
3. There are caveats to the use of accounting methods like ratio analyses in the research.
It's a number figured up by looking at historical records. For this reason, it serves no use to
speculate about the future.
4. The cost notion is the mainstay of financial reporting. As a result, it is unable to provide
an up-to-date location.

23
CONCLUSION:

The company's sales have increased over the last five years, but the gross profit has not.
While revenue is rising rapidly, gross profit is expanding more slowly. The gap between the
gross profit ratio and the net profit ratio was not significant. The business has, therefore,
reduced its operational expenditures. While a 2:1 current ratio is ideal, the company's ratio
has been below 1 for the last five years, posing a risk to its financial stability. The usual
liquid ratio is 1:1, although for the previous five years, it often hovered around 0.5. The
corporation clearly had a cash problem.

24
ARTICLE: The Ratio Analysis of Maruti Suzuki India Ltd.: A Case Study was published in
the International Journal of Applied Research 2018;4(3):06-10 B. Navaneeth, A Pavithra and
R Padmasri.

ABSTRACT:

Many different types of businesses and organisations contribute to the car industry, which
encompasses everything from research and design to production and distribution. In terms of
global GDP, this is a major industry. When it comes to cars made in India, none beats Maruti
Suzuki India Limited. The purpose of this research is to get an awareness of Maruti Suzuki
India Limited's financial standing as a whole. For the last five years, Maruti Suzuki India
Limited's liquidity and profitability have been analysed using ratio analysis (2013 to 2017).
The study found that MSIL has been surviving in the sector with the effective growth rate
demonstrated by strong profit earning capability, and that liquidity situation may be
improved by adjusting credit regulations.
Search terms: vehicle, ratios, liquidity, and efficiency.

The aims of the research are as follows:

Maruti Suzuki India Limited's Liquidity Analysis Purpose

• To analyse the company's liquidity.

• The primary objective of this study is to use profitability measures to assess Maruti
Suzuki India limited's overall effectiveness.

LIMITATIONS:

• Secondary data were used for this investigation.

• Quantitative elements are used in the analysis, whereas qualitative considerations are
disregarded.

SUGGESTIONS:

The corporation may reallocate some of its capital to its current assets and reconsider its
lending strategy in order to better meet its short-term obligations.

25
• MSIL's rising sales trend is indicative of its implementation of efficient measures that
provide increased profits. The money made might be invested in new technologies and
methods of doing business in order to better compete with the rest of the market.

CONCLUSION:

Maruti Suzuki India Limited's financial health has been assessed using ratio analysis. By
keeping just the bare essentials in its coffers, MSIL is adhering to a prudent working capital
strategy. There is a greater danger that a business may be unable to satisfy its present
financial commitments if it has a low liquid asset to debt ratio. While liquidity ratios have
dropped, profitability ratios have increased for MSIL, cancelling out the effect. In order to
stay ahead of the competition, the corporation is investing a larger portion of its revenue. In
India, MSIL dominates the automobile market. MSIL's excellent profit margins and effective
growth rate have helped it thrive in the market for many years.

26
 RESEARCH GAP

The research gap identified with different reviews.

• As per Amandeep and others studied Tata steel ratio analysis explains with compared
to study between Tata steel and Jindal steel. It reveals solvency ratio shows mixed
position.
• As per Dr. G. Lakshmi and others study on financial analysis with ratios deals with
reliance industry limited. As per findings of study, the financial performance is very
good with using different types of tools.
• The third research paper explains the Bajaj steel industries financial performance
analysis through ratios. As per the discussions, the long-term profitability ratios
increase day by day profitability.
• As per the multi-disciplinary research journal publication, the Hindustan unilever
limited financial performance studied ratios with the approach of T test. As per the
study the company spent lower amount on operating expenses. It is a good sing of
organization.
• B. Navaneetha and others study the Maruti Suzuki India limited financial analysis
with ratios to know the overall efficiency of MSIL. It reveals MSIL has been
surviving by high profit earning capacity. As per above studies reveals ratio analysis
is best tool for study financial soundness of firm.

The previous studies concentrate on different type of industries but proper study is not made
on heavy plates and vessels.
The research gap is filled with this study “To study the ratio analysis with respective BHEL,
Visakhapatnam “, so that the selected area of Visakhapatnam, BHEL.

27
 STATEMENT OF THE PROBLEM

Financial statement analysis is very significant for knowing the organization financial health.
The research concludes that measures measuring a company's liquidity, debt, activity, and
profitability are crucial to grasping its financial predicament.

BHEL financial soundness studied with ratio analysis explains the financial conditions in
different areas of finance.

As per the problem the management will take necessary reactions for promoting wealth of
organization.

The problem of statement study with ratio analysis approach for development and
restructuring financial engineering.

28
 METHODOLOGY OF THE STUDY

The project was evaluated using the data at hand. The term "data" is used to describe any and
all relevant information. Primary and secondary sources were used to compile the data.

Type of Data:

• Primary Data
• Secondary Data

PRIMARY DATA:

"Primary data" refers to any information that is gathered for the very first time.

The basic data are distinctive in nature. Concerned staff members provide the data. The
material for this research was gathered from the staff and management of the finance
department.

SECONDARY DATA:

Secondary data refers to information that has previously been acquired and processed for a
specific purpose by another entity. Secondary information used in this analysis was gathered
from the
1. Balance sheets,
2. Profit and loss accounts,
3. Annual reports, and other books and manuals of the BHEL LTD

Secondary data is acquired from BHEL through proper channel of authorities.

The statements like trade account, profit and loss account, balance sheet with schedules of
different categories is mobilized as secondary data(printed).

29
CHAPTER-3

• INDUSTRY PROFILE
• COMPANY PROFILE

30
 INDUSTRY PROFILE

This company, known as "BHARATHEAVY PLATES& VESSELS LIMITED," was

founded in 1966 in Visakhapatnam, Andhra Pradesh. As of August 2013, it has been
renamed BHARATHEAVYELECTRICAL LIMITED - HEAVY PLATES & VESSELS
PLANT after merging with "BHARAT HEAVY ELECTRICALS LIMITED" (BHEL-
HPVP). It is now BHEL's 17th unit and the company's first coastal unit.

In 1971–72, when commercial manufacturing initially began, BHPV's revenue was a meagre
5 lakhs. Since then, BHPV's product line has expanded to include cutting-edge technologies
such as multi-layer vessels, Turn Key Cryogenics plants, Storage and Distribution systems,
Industrial Boilers, Waste heat Recovery systems, Oil and Gas Processing Systems, etc., and
the company's annual revenue has topped 200 crores.

INTRODUCTION ABOUT HPVP

In 1966, the Department of Heavy Industry (DHI) established a manufacturing facility in

Visakhapatnam, Andhra Pradesh with the technical assistance of SKODA Export,
Czechoslovakia, to produce and supply custom-built process plant equipment for Core
Sectorindustries like Fertilizers,Oil Refineries, Petrochemicals, Steel Plants, Nuclear, Space,
Defense, and Power Sectors. Visakhapatnam, Andhra Pradesh is home to the company's
headquarters and it is conveniently placed on National Highway 5 (NH-5) close to the
airport, train station, and sea port. There are a total of 386 acres devoted to the business.

HPVP is a leading manufacturer of HeatExchangers,Columns,StorageSpheres,Reactors, and

Strippers, Multilayer Vessels Reactor Regenerator Package, Air Separation Plants, Purge
Gas Recovery Units, Oxygen Plants, Nitrogen Plants, Hydrogen Plants, Sulphur Recovery
Units, Crude Stabilization Units, Mounded Storage Systems, Compact Heat Exchangers, On
Board Oxygen generating system, etc There is hope that the company will be able to meet
future demands in the power, oil and gas, nuclear, military, and other key industries. In
addition to being ISO 9001:2000 certified, HPVP has earned a number of other National &
International Quality Accreditations, all of which speak to the superiority and dependability
of the company's products.

In 1971–72, production at the first BHPV began with a turnover of just Rs.1.95 Cr, and by
1996–97, it had surpassed Rs.300 Crs. Over the previous two decades, the company has

31
made a contribution to the government equal to nearly one trillion rupees (around $US 200
million).

HPVP (formerly BHPV) is India's leading manufacturer of process equipment for the oil and
gas, fertiliser, chemical, and related sectors. It operates under Bharat Heavy Electrical
Limited, a Maharatna Central Public Sector Enterprise.

HPVP is easily accessible by road, train, and sea, and it has excellent aviation connections to
all major cities thanks to its location in Visakhapatnam, the "city of destiny" on the eastern
sea coast of the Deccan plateau.

The BHEL-HPVP has been chosen as the research site. Financial statement analysis with
specific focus on BHPV is the chosen subject.
BHPV is now part of BHEL (Bharat Heavy Electricals Ltd), a Maharatna Company based in
New Delhi.

Unit Description:

BHEL (Bharat Heavy Electricals Ltd) is a Maharatna Central Public Sector Enterprise and a
conglomerate that produces a wide variety of electrical equipment. One of its divisions is
HPVP.

Snapshot of the Market:

After being acquired by BHEL, HPVP expanded its product line to include machinery for
use in power plants both domestically and overseas. This included process plants,
combustion systems, boilers, cryogenic equipments for refineries, fertiliser plants, steel
pants, etc.

Types of Customers:

The fertiliser factories, petroleum refineries, and steel facilities in India and throughout the
world are only some of HPVP's many satisfied customers in the public, private, and
cooperative sectors. All of India's main power plants are now diversified. Customers from
the paper, chemical, defence, and aerospace industries are also quite important.

32
COMPETITOR PROFILE (for Legacy products)
In the area of process plant:L&T, GR Engr, Lloyd’s steel, ISGEC, John
Thomson, Godrej etc.,
In the area of cryogenics:ICCP, INOX, Shanghai’s oxygen, L&T, Linde,
VJU, Essar, LINDE, Air products, Kobe, Hitachi,
HOPM, Praxair
In the area of combustion system:ISGEC, Babcock Thermax, Ignifluid boilers, ABL
L&TKTI, Thermax etc.,
HEAVY ENGINEERING INDUSTRY IN INDIA:

The term "heavy industry" is used to refer to the engineering, machine tool, electrical,
industrial equipment, and automotive sectors in India. These businesses provide the economy
with essentials like electricity, rail, and highway infrastructure. Basic industries including
steel, non-ferrous metals, fertilisers, refineries, Petro-chemicals, shipping, paper, cement,
sugar, etc. all rely on the machine building sector for their equipment needs.

Industrial Effectiveness:

The rate of expansion in the manufacturing sector slowed to 5.8 percent from April to July of
2021-22, down from 9.7 percent in the same period the previous year.

The General Index increased by 5.8 percent from April to July of 2021-22 compared to the
same time the previous year, with increases of 1.1 percent in manufacturing, 6.0 percent in
mining, and 9.4 percent in electricity.

Between April and July of 2021-22, the capital goods industry grew by 7.6%, down from the
23.1% increase seen in the same period the year before.

In comparison to the previous period of April-July 2020-21, the growth rates for consumer
products, basic goods, and intermediate goods were 4.6%, 7.9%, and 0.8%, respectively.

The consumer durables industry had a decrease in growth from April to July of 2021-22,
down to 4.2% from the 18.4% seen in the same time in 2020-21.

The consumer non-durables industry expanded by 4.9% in 2021–22, up from 3.8%

expansion the previous year.

Divisions within the Manufacturing Sector

33
The 19 types of industries that make up Heavy Industry are as follows.

1. Boilers
2. The Cement Industry Machines
3. Industrial Equipment for Dairies
4. Electric Heating Oven
5. Transportable warehouses
6. Logistics machinery and tools
7. Industrial Equipment for the Metals Industry
8. Equipment for use in mines
9. Machines and Equipment
10. Machinery for the Petroleum Industry
11. Tools for making printed materials
12. Equipment for making paper and pulp
13. Equipment used in the production of rubber
14. Suger processing equipment
15. Equipment for making and adjusting switches and controlling movement
16. Locomotive shunting
17. Turbines and power plant xvii
18. Transformers
19. Textile processing equipment

BHPV: AN OVERVIEW

• The Company Began Operations in 1966

• Making specialised pieces of capital equipment is our top priority.
• For the manufacturing process.
• Skoda, of the Czech Republic, contributed technical support.
• The first stone was laid in 1968.
• Date of Construction Completion: 1971
• Production Begins in the Year 1971
• Budgetary Allotment of Rs. 17.5 crores ($2.8 million)
• Heat Exchangers, columns, pressure vessels, technological constructions, pipes, etc.
were all part of the product mix from the get-go.
• Capacity in Use: 23,210 metric tonnes
• Sales for 2016–17: Rs. 108 crores
34
FACILITIES FOR MAKING PRODUCTION
• Total Area of the Factory: 197 Acres
• In terms of square metres, the total covered area is 90,000.
• Production Shops Coverage Area: 56,000 sq. m.
• The amount of power needed is 3,000 KW from APSEB.

• About a Dozen Supplemental Devices

35
 COMPANY PROFILE

HEAD OFFICE: BHEL House, New Delhi

PLANT: HPVP, Visakhapatnam

Central Public Sector Undertaking Bharat Heavy Electricals Limited (BHEL) has its
headquarters in New Delhi and has 17 manufacturing facilities around the country. In
addition, other profit centers such as Erection service units with headquarters at Chennai,
Nagpur, Kolkata and Noidacovering all four regions of the country. Similarly International
Operations Division is at New Delhi to look after international services. It had centralized
R&D center at Hyderabad, which is also a profit center itself.

It manufacturesequipment required for power generation plants, power transmission plants,

power distribution units and power storage units.It covers Thermal, Hydro, Nuclear, Solar,
Renewable and all other types of power related plants. The scope of the company generally
includes design, engineering, manufacturing, supply and commissioning power plants.It
fulfills A to Z needs of types of power generation, transmission, distribution and storage
companies. There is no power plant in India without the contribution from BHEL. In fact, it
has its foot prints all over the world. It is among one of the Fortune 500 companies at one
point of time or other. In addition to the above, the company also diversified into other areas
like industry sector, defence sector, locomotives, metro rails, refineries, steel plants,
transport sectors.

While still maintaining production for its original goods and serving its current clientele,
HPVP is diversifying into the power plant market. This is a service-based economy based on
custom orders and shop manufacturing. Capital equipment for refineries, fertiliser units, steel
plants, and other process industries may be designed, engineered, manufactured, supplied,
and commissioned as part of this service. Anticipating a nation's need for the specialised
machinery that can only be produced in a factory setting, with the eventual goal of
decreasing reliance on imports and increasing domestic production. Formerly known as
BHPV, the company was founded in 1966 to provide the growing need for process
equipment in the chemical processing sector, particularly in the fertiliser, petrochemical,
petroleum, and other chemical sectors. Several constructed equipments, including pressure
vessels, heat exchangers, columns, internal trays, etc., were all made and provided by BHPV
utilising a wide variety of materials. HPVP was able to increase its turnover and profit
margins in subsequent years by expanding into the cryogenic area, pulp cooking plant,
36
evaporation plant, and industrial boilers on a comprehensive turnkey basis after successfully
completing a number of significant orders.

The official installed capacity is 23210MT. The preliminary investment is $1.95 million
(17.5 million). Heating and cooling equipment, storage tanks, pipes, and columns were all
part of the product range. In 1971–1972, the first full year of commercial manufacturing,
sales were less than Rs 5 lakhs. 1996–1997 was the best year ever for sales, with a total of Rs
29998 lakhs. Below is a table showing the results from the last five years.

S1 Year Licensed Capacity Achieved T/o (Rs-Crs)

1 2016-17 23210 MT 8335MT 240
2 2017-18 23210 MT 11551MT 156
3 2018-19 23210 MT 10180MT 70
4 2019-20 23210 MT 3871MT 82
5 2020-21 23210 4110MT 108

Market and Technology Concerns:

The firm is now undergoing an expansion programme, and the installation of over Rs 200 cr
worth of new machinery is scheduled for the near future.

Alternatives to a Single Item:

The business has taken on a number of EPC contracts on an EPC/LSTK basis in different
cities throughout India and internationally. Using money from the Aeronautical
Development Agency, the company's research and development department has created the
means by which a compact Heat Exchanger for the light Combat Aircraft (LCA) may be
produced (ADA). Since acquiring the necessary know-how from BHEL (Holding Company),
BHPV has expanded into manufacturing HRSG Boilers, Deaerators, etc. for use in power
plants.

The BHEL-BHPV commercial partnership:

The acquisition by BHEL will provide BHPV with many benefits beyond only an increase in
profits from ongoing operations.

37
In order to expand upon its current success in the market for selling process equipment to
industries like Oil, Petrochemicals, Fertilizers, etc., BHEL plans to increase HPVP's
capabilities and capacity. HPVP will also have its capabilities and capacity increased by
BHEL in the areas of industrial boilers, heat exchangers, condensers, etc. An estimated Rs.
200 Crs in capital expenditure is planned for the necessary upgrade of facilities. A rising
demand for HPVP's products is anticipated, particularly in the process equipment and
cryogenics sectors. Analysis of the market indicates that the engineering and fabrication
sector may anticipate annual orders of Rs. 1000 Crs from oil refineries and petrochemical
projects over the next five years.

HPVP has historically had a 15–18% share of this industry, and with the help of BHEL, the
company may overcome its financial limitations and enter additional bids. Because of this,
after the reorganisation of BHPV is complete and BHEL takes over its operations, the
company's financial difficulties will be reduced. Based on anticipated 12% industrial growth
over the next several years, the market for Captive Power Projects (CPP) and Industrial
boilers is forecast to increase from roughly Rs. 1800 Crs in 2007-08 to an estimated amount
of Rs. 2400 Crs in the following five years. If market expectations on delivery and pricing
can be met, BHPV may aim for a share of 25% to 30% of this market. Due to a backlog of
utility boiler orders, BHEL's Trichy plant is unable to focus on the industrial boilers market
at this time. From this perspective, BHEL may establish BHPV as a hub for manufacturing
industrial boilers. Based on higher volume, improved financial capabilities leading to
reduced working capital borrowing costs, etc., BHEL anticipates that this business segment's
sales turnover will reach the level of Rs, 800 Crs by the fifth year following functional take
over.

RESOURCES:

• Space dedicated to manufacturing: 197 acres

• A total of 900 square metres of cover has been provided.
• Shops for manufacturing have a total floor space of 56,000 square metres.

• A demand of 3,000 KW of power from APSEB is required.

• Number of Extra Machines: Roughly a Dozen

Essential Tools:

38
Although the official limit for the crane's lifting capability is 120 tonnes, it is possible to
raise up to 250 tonnes with some creative engineering. When cold, the maximum rolling
capacity is 60 mm, and when heated, it's 170 mm. BHPV's heat treatment furnace is the
biggest in India, measuring in at 5.5 metres in height, 36.5 metres in length. There is now
room for one additional furnace, this one holding 200 tonnes and measuring 15 metres in
total length. BHPV also has a Single Spindle CNC Deep Hole Drilling Machine with Gun
Drilling attachment, a Deep Drawing Hydraulic Press with a 1600T capacity, and 2Nos. of
hydraulic presses. Drilling machines that are computer numerically controlled yet may use
standard drills. HMT has just installed a new computer numerical control deep hole drilling
machine. A Slew of 250-Ton+ Capacity Welding Rotators Manual arc welders, submerged
arc welders, gas tungsten arc welders, metal inert gas welders, plasma cutters, and more, as
well as state-of-the-art, highly productive options including tune head submerged arc
welding and bi-cathode TIG. Mechanical Tube Cleaner. There are both horizontal and
vertical boring machines available, the latter having a maximum capacity of 200mm spindle
diameter and a maximum diameter of 5 metres. Nondestructive testing tools of many kinds.
Physical and Chemical Laboratories with All Necessary Equipment. A division devoted to
metrology, etc.

As a part of expansion following machinery including automatic / semi-automatic machinery

added to the plant in 2013-14.
1. Tube Edge Preparation Portable Machine
2. Recon. and retro. of 20&10 MM Thk Pl Shearing M/c
3. Recon. and retro. of double column planning M/c
4. Recon. and retro. of 10 MM Thick Plate Shearing M/c
5. 2x1000 KVA DG set with Synchronizing panel
6. Gouging Power Sources Rating 950A - Current rate 300-1200 Amps
7. Gouging Power Sources Rating 950A - 100% Duty Cycle Current rate 300-1200
Amps
8. Gouging Power Sources Rating 950A - Current rate 300-1200 Amps Model CPRA-
1200T Make ESAB20 Ton Powered Movement Trolley
9. 20 Ton Battery Operated Platform Truck
10. Ultrasonic Thickness measurement gauges
11. 350 AMP Welding Power Source
12. 20ton Gantry Crane
13. CNC Pipe Chambering M/c 660MM
14. Mooned rolled stand
15. UT Testing equipment

39
 16. Planetary Gear box
17. Shaft sliding hub- 1
18. Reconditioning of Flame cutting machine
19. 150T Drum Rotator
20. 100T Drum Rotator
21. Pipe Sizing Band Saw
22. 4 Ton Transloaders
23. 4 Ton Battery Operated Transloaders
24. Portable Tube Chambering M/c
25. Recon. and retro. of 2 burner Furnace
26. Recon. and retro. of 3 burner Furnace
27. Recon. and retro. of Tilting Furnace
28. Shaft sliding hub- 2
29. Nozzle Opening Machine, Mode No CBZ (CBO 2002)
Many more machines are coming up in 2014-15 valuing about Rs 170 Cr.

Manpower(As on 1stApril, 2018)

Workmen / Staff :666
Supervisors :76
Executives :188
Apprentices :95
Casual employees :295
Total :1320
Welfare facilities for staff:
• The township covers 151 acres.
• 192 is the total number of quarters.
• A Hospital with 20 Beds
• Safeguarded Water Sources
• Subterranean draining system
• A CBSE-accredited English-speaking institution
• Telugu-speaking classrooms that follow the AP curriculum
• A school tailored to the needs of students with intellectual disabilities.

• A place where the mentally disabled may get vocational training

• Open air theatre, sports complex, and cultural hub are some of the features of the
community centre.

40
 • Since its humble beginnings as a fabricator of process equipment, BHPV has come a
long way by integrating the knowledge of its many illustrious partners.
FIELD-TESTED/IN-PROGRESS NATIONALLY-SIGNIFICANT PROJECTS:
IOCL, Panipat Hydro cracker reactors-3Nos
IOCL, Panipat Reactor, Regenerator & Office Chamber
IOCL, Panipat Reformer & WHR Package
IOCL, Mumbai 150 MT Capacity LPC bullets
IOCL, Chennai Spheres
SAIL, Bokaro Argon Recovery unit
NRL, Numaligarh Air Fin coolers/SS Clad Vessels, Spheres etc.
HPCL, Vizag CDU Heater with APH System/VDU Heater
HPCL, Vizag Clad/CS Columns/CS heat Exchangers
HPCL, Vizag Co-boiler
HPCL, Vizag Revamping of 50TPH oil & gas fired boiler
HPCL, Mumbai 50 TPH Boiler
BPCL, Mumbai Nitrogen Plant
Hyundai, New Delhi Cryo Nitrogen plant
SAC, Ahmedabad 505m Dia thermal vacuus system
Technimont, Mumbai Nitrogen plant
OFL, Paradeep Waste Heat LP boilers
RINL, Vizag Buffer Vessels
SAIL, Bhilai Buffer Vessels
TISCO Buffer Vessels
IOCL, Paradeep Power Plant Boilers
JSPL, Paradeep Power Plant Boilers
HPVP obtained ISO 9001 certification in 1993–1994 as part of a comprehensive quality
management programme designed to increase exports and improve the company's position in
the global market.
We renewed our ISO 9001 accreditation in September of 1996.
The Quality Award came from the Confederation of Indian Industry (CII), Southern Region,
AP in honour of our commitment to excellence in quality.

RESEARCH WORK & DEVELOPMENT:

For the purpose of Applications Research and Product Development, the company's R&D
division was founded in 1975 and is stocked with state-of-the-art machinery. As of right
now, 136 Projects have been created by R&D. Among the marketed goods are:

41
 • Anodes Made of Titanium
• Aerosol Containers Made of Titanium
• Cold Storage Chambers
• Separate Unit for Rapid Freezing
• The Best Pipe Insulation Available.

Cryogenic storage tanks with extra insulation & D.M. water treatment facilities
Aeronautical Development Agency, Bangalore has placed a significant order for Heat
Exchanger Development for Light Combat Aircraft (LCA) Phase-II.

For their outstanding R&D, these companies have won awards such as:

The CIS Research and Development Award for 1992–1993.

ANCILLARISATION:

Because of HPVP's extensive needs, a number of supporting businesses have sprung up in

the area. In addition to providing these factories with enough work, HPVP has also been
contracting out to a variety of small-scale manufacturers. In order to meet BHPV's quality
standards, the Ancillaries rely on BHPV's provision of materials, transportation, and
inspection services.

CURRENT RESILIENCES:

1. Assistance from upper management and finance; Supervision from experienced

technicians;
2. Proficient in both Design and Engineering at a high standard.
3. Modern, cutting-edge factories, third.
4. A solid reputation as a provider of high-quality goods in both the local and
international markets.
5. Extensive trust from the market.
6. Collaborations in technology partnership.
7. An exceptionally prepared and educated group of engineers and other labourers.
8. A safe and productive workplace with cooperative working conditions.
9. Widespread use of computers.
10. Ability to provide complete Projects and Systems as a ten.

42
 11. Capabilities Required of Project Managers.

METHOD AND PLAN:

• Expanding our capabilities as an EPC firm.

• The goal is to increase exports.
• Reduce cycle time, boost quality, and save expenses by resorting to widespread
computerization and automation.
• In order to gain a competitive edge in the global market, we must: • Establish long-
term, mutually beneficial partnerships with leading corporations throughout the
world.
• Always making an effort to catch up technologically to rival foreign firms.
• Human Resource Development is a key area of emphasis.
• Workplace culture must be revised so that it better reflects customer needs.

WORKSHOPS:

Feeder shops create the components that are utilised in the Production shop during assembly.
There are six distinct categories of feeder stores, including

1. Material Preparation (MP)

2. The Second LMS: A Light Machine Shop
3. Heavy Machine Shop - HMS
4. Bending and pressing plates using a press
5. Nozzles: Welding and Pipe Preparation
6. The Rolling and Welding Process for Shells

STUDIO WORKPLACES:

Feeder shop-made components are put together at the assembly department. The following
five establishments qualify as manufacturing facilities.

1. "Pressure Vessels" or "PV"

2. "Heat Exchangers"
3. Cryogenic production (CP)
4. Combustion System Products, Type I (CSP I)
5. Combustion System Products II (CSPII)

43
Plate material is selected from stock and trimmed to size before being sent to the appropriate
manufacturing factories. Stainless steel plates up to 80 mm in thickness may be directly cut
using a plasma cutter. This also applies to carbon and low-alloy steels, which can be gas-cut
into squares, single bevels, and double bevels with noses.
ELECTRICAL COMPANY:
On this workshop, we will be doing all of the drilling and planning for minor components, as
well as marking holes in tube sheets. Welding from nozzles to flanges is performed here.
EQUIPMENT FOUND IN A LIGHT MACHINE SHOP:
1. Mini and medium-sized lathes
2. Auto-turning and radial drilling equipment
3. Miniature horizontal boring
4. Five, Horizontal Medium-Depth Boring
5. The Number Six, Burly Lathe
6. Drilling equipment for planes
7. CNC Drilling Machine
8. Computer numerically controlled drill for boring deep holes (HMT)
9. Cylinder Grinder
10. A surface grinder for a horizontal workbench
11. Machine that uses computer numerical control to turn metal

SPACE FOR MASSIVE MACHINERY:

Larger-than-L.M.S.-capable components will be machined, drilled, and surfaced here. The

facility has many different machinery, including one 5000mm, one 4000mm, and one
2500mm diameter heavy double column vertical turning and boring machines. The
maximum depth that a horizontal boring machine can drill to is 2000mm.

Heavier machinery found in a machine shop includes:

• Two-node radial drilling
• One-hole universal drill
• Use just one column for your plans, no
• Use a double column layout 1no
• A significant amount of horizontal drilling was done 2no

PRACTICE SPACE FOR THE PRESS:

44
In this workshop, dished ends for containers are constructed using single plate and petal
construction. Presses with a maximum capacity of 1600T made possible by hydraulics are
used to press dished ends, petals of storage spheres, and other components. Dished ends with
a maximum diameter of 5000 mm may be made in the shop, and plates as thick as 120 mm
are processed in phases.

PRESSROOM MACHINERY
• A roll for bending sections 1no
• A pneumatic hammer 1no
• Pipe bending is the third method 2no
• A hydraulic press with a capacity of 250 tonnes 1no
• A 400-ton hydraulic press 1no
• Hydraulic press, 1600 t 1no
• Rolling with a curve 1no

PARTITION ON SHELLS:

This facility does long seam and circumferential seam welding, as well as plate rolling to
size. Submerged arc welding is the primary method of construction welding. In this
establishment, 220mm is the maximum thickness for which welding is performed. This
facility has access to specialised narrow gap welding equipment that can join materials up to
350mm thick with groove widths of 20-24mm.

FABRICATION EQUIPMENT FOR THE SHELL BUSINESS:

1. 1200mm x 80mm thick plate edge planning - 2 no.

2. Rolls for bending plates, 235 mm wide by 3025 mm in height - 1 no.
3. Metal bending rollers 4000mm in diameter and 22mm in thickness for bending platet
- 1 no.
4. Steel plate bending rollers 3000mm in diameter and 75mm in thickness - 1 no.
5. Welding using an electric arc that is submerged in a liquid metal 3 no.

STUDIO WORKPLACES:

ASSEMBLY OF PRESSURE VESSEL

45
The nozzle, internal, and exterior supports required to complete the shell construction as
specified in the design were all welded at this facility. These containers are designed for use
in high pressure applications, and that is the major reason they are sold here. Multiple layers
of 6mm sheets are wrapped and welded together until the desired thickness is achieved.

THE VARIOUS FORMS OF SURFACE-DISHING:

There are typically three distinct dished end styles in use:

a. The hemispherical shape
b. Tory spherical
c. The ellipsoid

ASSEMBLY OF HEAT EXCHANGERS

Heat exchangers are made at this workshop. We create the tube bundles and the shell
assembly. The GTAW method is often used for welding tubes to sheets. This facility is
equipped to handle medium to high pressure heat exchangers subjected to test pressures of
up to 450kg/sq.cm and temperatures of -65 to 900C. In this workshop, titanium linings for
containers were fabricated.

Cryogenic manufacturing

Here, we create storage tanks and other containers suitable for use in cryogenic applications.
Here, we manufacture a wide range of apparatus, not only cryogenic tanks, such as Available
oxygen, nitrogen, and argon air separation machines have throughput rates from 50 Nm/h to
2200 TPD. Liquid oxygen, nitrogen, argon, and other vacuum insulators may be stored in
horizontal and vertical storage tanks with capacities ranging from 500 to 2,000,000 litres.

Products from BHEL-HPVP

The BHEL - HPVP facility produces the following goods:

VESSELS OF PRESSURE:

With a wide variety of steels and steel alloys, including carbon steel, stainless steel, clad
steel, Monel, etc., or any combination thereof.

46
COLUMNS

Columns made at a factory or on site, with or without reinforcements.

The Role of Heat Exchangers
From U-tube, kettle type, etc. heat exchangers to low-pressure atmospheric fin coolers,
forged-head channels tested to 500kg/sq.cm and high-pressure designs are all possible.

RETENTION CELLS:

To accommodate fluids and gases like ammonia, ethylene, propylene, LPG, etc., they may be
made in any length (up to 60m) and thickness (up to 60mm).

MULTILAYERED VESSELS AT HIGH PRESSURE:

Ply wall construction is used in ammonia and urea reactors because it can withstand the high
pressure required for hydraulic testing (on the order of 300kg/sq.cm).

The Cryogenic Vessels:

An inner shell made of stainless steel and an exterior casing made of carbon steel are
separated by an evacuated area filled with pearlier (insulating material), ensuring very low
evaporation rates.

Air and gas separation facilities

These facilities are designed to separate coke oven gas and converter gas for ammonia
synthesis and produce oxygen, nitrogen, and argon. Different feed stocks such as bamboo
and hard woods may be processed with ease because to the design's flexible capacity and
absorption- or absorption-and-re-evaporation-based purifying cycle.

Plants that release their moisture by evaporation

Concentration plants that use steam heating and numerous evaporation bodies to concentrate
solids from wasted liquors. The alumina and paper and pulp industries are two examples of
possible uses.

47
All of the aforementioned tools have been manufactured in accordance with standard code to
guarantee their security during inspection and maintenance. ASME, BS5500, AD Mark
Blotter, IS 2825, TEMA, ANSI, API, etc., are some of the most widely used standards.
Welding is the most robust and risk-free method of construction for all of the aforementioned
apparatus since it can withstand extreme pressure.

Welding is also a common method of manufacturing in B.H.P.V-HP&VP. It takes a lot of

labour, including the creation of technologies, procedures, testing, and choosing appropriate
processes and appropriate consumables. The WT division is responsible for these tasks.

PROCEDURES FOR WELDING

A fabrication sector, the BHEL-HPVP factory relies heavily on welding technology. The
company's welding activities are regulated by welding technology. Welding technology has
been an important part of modern production. The welding technology division is in charge
of drafting the necessary protocols. All welding needs in manufacturing facilities will be
handled by the Welding Technology Department.

The primary purpose of this system is to provide the necessary technological resources to
retail outlets so that they may carry out their duties. Welding cost estimation, responding to
business inquiries, and solving construction-related issues are the other duties. All of the
necessary tools and supplies for the workshop will be chosen by the same division. Welding
technology is crucial to the success of any fabrication business.

In light of this, the BHEL-HPVP factory has established a welding technology department
under the direction of a competent and skilled team of workers. Throughout the business, all
welding operations are managed by this division.

BHEL-HPVP is an expert in almost every kind of welding, including TIG and MIG. High-
pressure piping, tube-to-tube sheet-joint, high-thickness multilayer welding, clad-vessel
construction, etc. are all areas of expertise.

The welding technology division plans and executes the following operations, for which it
has developed standard operating procedures.
Creating, reviewing, and approving welding process requirements and welding data sheets 1.
Welding consumables acquisition and certification.
Final need is qualification, with records of qualification for welding procedures being kept.

48
Record-keeping for welders and welding operators, including documentation of their
qualifications.
Researching and resolving welding quality issues, and welder education.
Publication of records pertaining to welding technique.
In order to appropriately distribute its obligations, welding technology may be roughly
broken down into five categories:

1. Questions and Answers

2. Tech Swarm
3. Classification division
4. Expendables
5. Collaborative problem-solving team

EXPLORATORY GROUP:

When the commercial divisions get enquiries or tender invites, they forward them to the
inquiry group in welding technology for analysis. In order to determine whether or not a task
can be completed effectively, these groups include of individuals with extensive expertise in
the relevant fields. Also, before receiving the sale order, they estimate the price of welding
materials so that it may be included into the final price provided to the buyer.
In the realm of technology, we are the following:

The criteria for the welding process will be decided by this committee. Depending on the
characteristics of the materials being connected, a welding process standard (WPS) will be
chosen. The PQR number is referenced on every WPS since they serve as the basis for the
WPS. The consumables team not only designs the welded junction, but also solicits bids on
the electrodes and other welding supplies that will be needed. The materials procurement
team is provided with these MIs.

MEMBER OF THE QUALIFICATION GROUP:

As soon as the technology team sends a request for a certification of a new welding
technique, this team gets to work. In order to validate the new process, they execute tests on
the welded joint, invite the relevant inspectors, and record the results of each test.
Additionally, they are responsible for certifying the current welder. They make sure that all
the welders have enough of practise at their jobs.

49
Group of Things That Can Be Consumed:

This team maintains inventory records for all necessary supplies. It consolidates needs
communicated by the IT team.

SPECIAL OPS TEAM:

In coordination with production, quality control, and production engineering staff, the group
shooting group is responsible for ensuring the efficient completion of welding operations on
a wide range of goods in production shops and at erection sites.

It is the responsibility of this team to ensure that those who need access to documents related
to welding technology get it. The team is also responsible for determining what went wrong
with the welding and what can be done to prevent it from happening again.

50
 CHAPTER-4

DATA ANALYSIS & INTERPRETATION

51
ANALYSIS:
Potentially, the firm will turn a profit in 2008-2009 and again in 2010-2011. After being
acquired by the Navaratna PSU BHEL, the firm looks to be making a comeback.

In 2010-2011, both order booking and production saw increases. However, there are
obstacles to reaching the planned output. Lack of operating capital and outdated equipment
are the primary obstacles.

Both a modernization and a capital expenditure programme are under underway.

For the purposes of analysis, the following ratios are computed, and in the instance of BHEL,
they are as follows:

I. LIQUIDITY RATIOS:

The firm's short-term financial situation may be gleaned from the liquidity ratio. The term
"liquidity" refers to a company's capacity to pay its bills when they come due. As a result,
the liquidity ratio provides a way to assess the extent to which a company's short-term
obligations exceed its liquid assets.

Assuming current assets are sufficient to cover current obligations, the liquidity situation is
considered to be adequate. However, if current obligations cannot be quickly and readily
covered by liquid assets, then the company is in a precarious situation.

52
a) CURRENT RATIO:
The ratio of current assets to current liabilities is known as the current ratio. Also known as
the "working capital ratio," this metric serves as an indicator of a company's financial health.
According to a well accepted rule of thumb or arbitrary norm, a 2:1 posture is adequate.
These proportion's fundamental elements are
Current Ratio = Current Assets
Current Liabilities
TABLE-1

YEAR CURRENT CURRENT RATIO

ASSETS LIABILITIES
2016-17 14562.5 20131.92 0.723
2017-18 19409.09 20549.85 0.944
2018-19 21871.1 23958.63 0.912
2019-20 29713.69 18612.61 1.596
2020-21 22896.65 16142.84 1.418
(Source: BHEL Audit Report)
GRAPHICAL REPRESENTATION-1

RATIOS
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION:
The standard optimum ratio for a current is 2:1. BHEL's current ratio in 2020-21 is 1.418,
whereas the ratio in 2019-20 is 1.596. The corporation was unable to make good use of its
present assets if the ratio was not less than two to one.

53
b)QUICK RATIO:
Acid Test Ratio and Liquid Ratio are other names for the Quick Ratio. The graph illustrates
the link between liquid assets and fast obligations. Liquidity is defined as a company's
capacity to meet its immediate financial commitments.
Quick Ratio= Quick Assets
Current Liabilities
Where Quick assets= Current Assets – Stock.
TABLE-2

QUICK CURRENT
YEAR RATIO
ASSETS LIABILITIES
2016-17 5715.57 20131.9 0.283
2017-18 9916.67 20549.9 0.482
2018-19 9017.2 23958.6 0.376
2019-20 15661.4 18612.6 0.841
2020-21 10384.7 16142.8 0.643

(Source: BHEL Audit Report)

GRAPHICAL REPRESENTATION-2

RATIOS
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION:
Fast ratios between 1 and 1 are generally safe. If it is lower than l, the corporation will be
unable to meet its debt commitments with cash on hand. The company's short-term liquidity
situation is inadequate.

54
c)ABSOLUTE LIQUID RATIO:
The company's immediate liquidity status may be determined using this ratio. This metric
measures the equity position of a company relative to its current obligations. Liquid assets
that can be quickly and easily turned into cash.
Absolute Liquid Ratio = Absolute Liquid Assets
Current Liabilities
TABLE-3

ABSOLUTE CURRENT
YEAR RATIO
ASSETS LIABILITIES
2016-17 205.03 20131.9 0.010
2017-18 216.52 20549.9 0.010
2018-19 227.75 23958.6 0.009
2019-20 241.35 18612.6 0.013
2020-21 254.56 16142.8 0.015

(Source: BHEL Audit Report)

GRAPHICAL REPRESENTATION-3

RATIOS
3.5

2.5

1.5

0.5

0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION:
When comparing two numbers, a ratio of 0.5:1 is regarded optimal. Business ratios range
from 0.010 in 2016–17 and 2017–18 to 0.009 in 2018–19 and 0.013 in 2019–20 and 0.015 in
2020–21. The company's absolute liquidity situation is below the norm and has not been
sufficient all year.

55
II.LEVERAGE RATIOS:
A company's solvency, as measured by a capital ratio or leverage ratio, is its capacity to pay
back its long-term debts when they come due. Leverage ratios illustrate how much of the
company's funding comes from debt vs equity.
Leverage ratios are used to evaluate a company's exposure to financial risk and its efficiency
in using debt to boost returns for shareholders.
Leverage ratios can in many forms, including:
a) DEBT-EQUITY RATIO:
How the owner's money compares to the money that has been borrowed is shown by this
ratio. This ratio, also known as the External-Internal Equity Ratio or the Debt-to-Net-Worth
Ratio, shows how outside investors' money compares to the company's own money, or
internal equity.
Debt – Equity Ratio =Total debt
Total shareholder’s equity
TABLE-4
TOTAL TOTAL SHAREHOLDERS
YEAR RATIO
DEBT EQUITY
2016-17 26502.33 3923.39 6.754
2017-18 24772.34 8271.92 2.994
2018-19 27892.03 6576.97 4.240
2019-20 22416.27 17562.63 1.276
2020-21 19546.31 13968.27 1.399
(Source: BHEL Audit Report)
GRAPHICAL REPRESENTATION-4

RATIOS
8
7
6
5
4
3
2
1
0
2016-17 2017-18 2018-19 2019-20 2020-21

56
INTERPRETATION:
The standard debt-to-equity ratio is 1:1. In comparison to a reasonable situation, the
company's debt levels are quite high over the years 2016–2021. Therefore, the company's
debt-to-equity ratio is unsatisfactory. Investors in the firm are taking a huge gamble.
b) SOLVENCY RATIO:
Using this ratio, we may determine the proportion of total outside debt to total capital.
Solvency Ratio = Total Liabilities
Total Capital
TABLE-5

TOTAL
YEAR TOTAL LIABILITIES RATIO
CAPITAL
2016-17 30425.72 10293.8 2.955
2017-18 33044.26 12494.41 2.644
2018-19 34469 10510.37 3.279
2019-20 39978.9 21366.29 1.871
2020-21 33514.58 17371.74 1.929
(Source: BHEL Audit Report)
GRAPHICAL REPRESENTATION-5

RATIOS
3.5

2.5

1.5

0.5

0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION:
If a company's solvency ratio is low, it's a good sign that it's financially stable. In 2016–17,
the company had a solvency ratio of 2.955; by 2020–21, it had dropped to 1.929 from 3.279.
The company's financial health is secure.

57
c) ASSETS TO EQUITY RATIO:
This metric illustrates how total assets compare to shareholders' equity. A formula for
determining the ratio is provided below.
Assets to equity Ratio = total assets
Stockholders’ equity
TABLE-6

STOCKHOLDERS’
YEAR TOTAL ASSETS RATIO
EQUITY

2016-17 30425.7 3923.39 7.754

2017-18 33044.3 8271.92 3.994
2018-19 34469 6576.97 5.240
2019-20 39978.9 17562.6 2.276
2020-21 33514.6 13968.3 2.399
(Source: BHEL Audit Report)
GRAPHICAL REPRESENTATION-6

RATIOS
9
8
7
6
5
4
3
2
1
0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION:
To the extent that the ratio is high, it suggests that the company has solid financial footing.
The ratio is 7.754 in 2016-17 and it is decreased in 2017-18. Increased to 5.240 in 2018-19
and decreases to 2.276 and 2.399 in the years 2019-20 and 2020-21 respectively. The assets
to equity ratio of the firm is not satisfactory.

58
d) FIXED ASSETS TO NET WORTH RATIO:
This ratio determines how much of a connection there is between a company's fixed assets
and its net value.
Fixed Assets to N.W. Ratio = Fixed Assets
Net Worth
TABLE-7

YEAR FIXED ASSETS NET WORTH RATIO

2016-17 15863.2 3923.39 4.043

2017-18 13635.3 8271.92 1.648
2018-19 12597.9 6576.97 1.915
2019-20 10265.2 17562.6 0.584
2020-21 10617.9 13968.3 0.760

(Source: BHEL Audit Report)

GRAPHICAL REPRESENTATION-7

RATIOS
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION:
The optimal ratio of fixed assets to net value is between between 0.06 and 0.65. The fixed to
net worth ratio of the firm is 4.043 in the year 2016-17 and in 2017-18 the ratio of the firm is
1.648 and it was increased to 1.915 in 2018-19 and it was decreased in the next years. As the
net worth is not in between 0.06 to 0.65 so,the position is not satisfactory.

59
e) FIXED ASSETS RATIO:
The correlation between a company's fixed assets and its long-term finances is measured by
this ratio.
Fixed assets Ratio = Fixed Assets
Total Long-term liabilities
TABLE-8

LONG TERM
YEAR FIXEDASSETS RATIO
LIABILITIES
2016-17 15863.2 6370.41 2.490
2017-18 13635.3 4222.49 3.229
2018-19 12597.9 3933.4 3.202
2019-20 10265.2 3803.66 2.698
2020-21 10617.9 3403.47 3.119
(Source: BHEL Audit Report)
GRAPHICAL REPRESENTATION-8

RATIOS
3.5
3
2.5
2
1.5
1
0.5
0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION:
A ratio of one to one between fixed assets and liquid assets is considered optimal. Company
fixed-assets to total assets ratio starts at 2.490% in 2016–17, rises to 0.180% in 2017–18,
drops to 2.9680% in 2019–20, and rises to 3.119.0% in 2020–21. The company's ratio is
much higher than average. Therefore, we cannot recommend this company.

60
III)PROFITABILITY RATIOS:
Making a profit is, of course, crucial to the success of any firm. Making a profit is critical to
any company's long-term success, and profitability measures are used to evaluate operations
on a whole.

a) GROSS PROFIT RATIO:

Gross profit ratio, expressed as a percentage, compares gross profit to net sales to determine
the profitability of an organisation. It shows how low per-unit sales prices may go before
hurting a company's bottom line. Profitability may be assessed by looking at how the gross
profit ratio has changed over time for businesses operating in the same industry.
Any or all of the following may contribute to a higher ratio, however it is universally
understood that a larger ratio indicates more profitability.
• Price per unit increased without an equivalent rise in selling prices for inputs.
• The selling price per unit of product has decreased.
• Variation in both the retail price and the cost to produce the product.
Gross Profit Ratio = Gross Profit
Operating income

TABLE-9

YEAR GROSS PROFIT OPERATING INCOME RATIO

2016-17 -7969.51 10184.74 -0.7825

2017-18 -9215.18 13793.1 -0.6681
2018-19 -2697.02 18782.02 -0.1436
2019-20 -7135.73 14862.06 -0.4801
2020-21 -9867.89 8929.73 -1.1051
(Source: BHEL Audit Report)

61
 GRAPHICAL REPRESENTATION-9

RATIOS
0
2016-17 2017-18 2018-19 2019-20 2020-21
-0.2

-0.4

-0.6

-0.8

-1

-1.2

INTERPRETATION:
If a company has a high gross profit ratio, it is doing well financially. Because the firm's
gross profit ratio is negative, its current situation is not favourable.

b) NET PROFIT RATIO:

The net profit ratio compares the after-tax net profit to the total revenue. It reflects how well
the company's management handles production, sales, and administration.
As the ratio increases, profitability improves. Profits relative to investment or capital utilised
in the firm must also be considered when analysing this ratio.
Net profit ratio = Net Profit after Tax
Net sales
NOTE: Since the company is facing losses in the last 5 years, it hasnot been paying taxes,
hence the profit after tax cannot be calculated.
Therefore, net profit ratio can’t be calculated as it is facing losses.

62
c) OPERATING PROFIT RATIO:
The ratio between a company's operational profit and its net sales is calculated here.
Operating profit ratio = Operating Profit / Net Sales.
Where operating profit = Net Sales – Operating Cost. (Or)Gross Profit–Operation expenses.

TABLE-10

OPERATING
YEAR NET SALES RATIO
PROFIT
2016-17 -7969.51 10184.74 -0.7825
2017-18 -9215.18 13793.1 -0.6681
2018-19 -2697.02 18782.02 -0.1436
2019-20 -7135.73 14862.06 -0.4801
2020-21 -9867.89 8929.73 -1.1051

(Source: BHEL Audit Report)

GRAPHICALREPRESENTATION-10

RATIOS
0
2016-17 2017-18 2018-19 2019-20 2020-21
-0.2

-0.4

-0.6

-0.8

-1

-1.2

INTERPRETATION:
A higher operational profit ratio is indicative of a successful business. During the years
2016-21 the OPR are on negative note which is not favorable. So, the firm is not satisfactory.

63
 d)EXPENSES RATIO:
The chart shows how different costs compare to revenue. Indicated by the operating ratio is
the typical range in total costs. Each expenditure or collection of expenses may be broken
down into a ratio by dividing it by net sales. Each category of costs may have its own
expenditure ratio determined.
Expenses ratio = (Administrative expenses + cost of goods slod + selling & distribution
Expenses + non-operating expenses) / Net sales

TABLE-11

YEAR EXPENSES NET SALES RATIO

2016-17 14132.61 10184.74 1.387

2017-18 17369.69 13793.1 1.259
2018-19 14597.92 18782.02 0.777
2019-20 16104.87 14862.06 1.083
2020-21 15026.66 8929.73 1.682

(Source: BHEL Audit Report)

GRAPHICAL REPRESENTATION-11

RATIOS
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION:
For the company, a greater ratio of costs to revenue is acceptable. The ratio was 1.387 in
201617, but it went down to 1.259 the next year. It is 0.777 in the year 2018-19 and in the
next years the expenses ratio is increased slightly. The ratio is higher so the firm is in
satisfactory position.

64
IV)ACTIVITY RATIOS:
The Activity Ratio is a key performance indicator for every business, as it quantifies how
well they are able to make use of the assets and resources at their disposal. Because they
measure how quickly assets are transformed into sales, the ratios are sometimes referred to
as turn over ratios. Asset management efficiency has a direct bearing on sales output. A
variety of turnover ratios may be computed, including debtors' turnover, stock turnover,
capital turnover, etc., depending on the context.
a) INVENTORY TURNOVER RATIO:
Indicating the number of times stock has been turned over throughout the period, the
Inventory Turnover Ratio (I.T.R.) measures how well a business is able to manage its
inventory. A lower proportion of total capital is held in the form of working capital when
turnover is high. Excessive stock is indicated by a relatively low ratio.
ITR = Cost of Goods Sold
Average Inventory
TABLE-12
COST OF AVERAGE
YEAR RATIO
GOODS SLOD INVENTORY
2016-17 8846.93 10020.13 0.882
2017-18 9473.28 9169.68 1.033
2018-19 12853.9 11173.17 1.150
2019-20 14052.3 13453.11 1.044
2020-21 12512 13282.16 0.942
(Source: BHEL Audit Report)
GRAPHICAL REPRESENTATION-12

RATIOS
1.4

1.2

0.8

0.6

0.4

0.2

0
2016-17 2017-18 2018-19 2019-20 2020-21

65
INTERPRETATION:
For optimal results, a ratio of 8 or higher between sales and inventory should be sought.
BHEL's inventory turnover rate has been dropping for some time. The ratio of ITR is 0.882
in 2016-17 and it is increased up to 1.150 in 2018-19 and current year 2020-21 is slightly
decreased. Then the firm is inefficient inventory management.
b) DEBTORS TURN OVER RATIO:
An enterprise may provide both cash and credit sales of products. Offering customers credit
is a powerful sales incentive. In accounting, the turnover rate is measured in terms of the
number of times a group of debtors is "turned over" in a certain time period. An indicator of
a well-run organisation is its ability to generate a high rate of return on its borrowers'
investments. Similarly, minimal turnover among debtors is an indicator of ineffective debt
management.
Debtors turnover ratio = Net Credit Sales
Average Trade Debtors
TABLE-13
AVERAGE
YEAR NET SALES RATIO
DEBTORS
2016-17 3496.7 16378.2 0.213
2017-18 5117.9 19245.8 0.265
2018-19 3633.45 19073.5 0.190
2019-20 4583.92 12532.3 0.365
2020-21 2010.37 5889.92 0.341
(Source: BHEL Audit Report)
GRAPHICAL REPRESENTATION-13

RATIOS
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2016-17 2017-18 2018-19 2019-20 2020-21

66
INTERPRETATION:
As a measure of how well debtors are being managed, a high turnover rate is seen
favourably. The ratio of DTR is 0.213 in the year 2016-17 and there slightly increase in the
year 2018-19 and after it is decreased to 0.190 in 2018-19 and it is 0.341 in 2020-21and it is
not satisfactory.
c)WORKING CAPITAL TURNOVER RATIO (WCTR):
The speed with which net working capital is being put to use is measured by this ratio.
Represents the number of times in a year that working capital is converted into new assets.
WCTR = Cost of goods sold
Average Working Capital
TABLE-14

COST OF AVERAGE
YEAR RATIO
GOODS SOLD W.C
2016-17 8846.93 3923.39 2.254
2017-18 9473.28 8271.92 1.145
2018-19 12853.9 6576.97 1.954
2019-20 14052.3 17562.6 0.800
2020-21 12512 13968.3 0.895
(Source: BHEL Audit Report)
GRAPHICAL REPRESENTATION-14

RATIOS
2.5

1.5

0.5

0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION:
Increases in the W.C. turnover ratio point to careful management of cash flow. In 2016–17,
the W.C.T.R. is 2.254; in 2017–18, 1.145; in 2018–19, 1.954; in 2019–20, 0.8; and in 2020–
21, 0.895. Small shifts occur in the company's working capital turnover ratio from one year
to the next. The current year working capital are low and not satisfactory.

67
d) FIXED ASETS TURNOVER RATIO (F.A.T.R.):
How well a company makes use of its fixed assets is measured by this ratio.
F.A.T.R=Net sales
Fixed Assets
*A high F.A.T.R. is considered favorable.
TABLE-15

FIXED
YEAR NET SALES RATIO
ASSETS
2016-17 15863.22 10184.7 1.557
2017-18 13635.25 13793.1 0.988
2018-19 12597.9 18782 0.670
2019-20 10265.21 14862.1 0.691
2020-21 10617.93 8929.73 1.189

(Source: BHEL Audit Report)

GRAPHICAL REPRESENTATION-15

RATIOS
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION:
A greater turnover of fixed assets is indicative of competent management. The fixed assets
turnover ratio in the year 2016-17 is 1.557. The FATR of the firm is 0.988 in 2017-18 then it
got decreased in the year 2018-19 to 0.670.But in the year 2019-20 and 2020-21 the FATR
increased respectively. The high value of the firm's FATR is a reflection of the competent
management it has.

68
e) CAPITAL TURNOVER RATIO:
The ratio of capital utilised to cost of products sold is known as the capital turnover ratio.
This ratio is used to evaluate how well a company makes use of its capital and other
available resources.
Capital turnover ratio = Cost of sales
Capital employed
TABLE-16

CAPITAL
YEAR COST OF SALES RATIO
EMPLOYED
2016-17 13756.9 15096.2 0.911
2017-18 16876.5 8403.29 2.008
2018-19 13206.5 5823.14 2.267
2019-20 15185.9 11078.5 1.370
2020-21 14419.2 9703.01 1.486
(Source: BHEL Audit Report)
GRAPHICAL REPRESENTATION-16

RATIOS
2.5

1.5

0.5

0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION:
The ratio shows how effectively and consistently capital from owners and long-term
creditors is being used. The company's capital turnover ratio was 0.911% in 2016–17, 2.08%
in 2017–18, 2.26% in 2018–19, 1.370 in 2019–20, and 1.486 in 2020–21. The current year
and the previous year (i.e,2019-20&2020-21) CTR is low comparing with before years and
not satisfactory.

69
CHAPTER-5

• SUMMARY
• FINDINGS
• SUGGESTIONS
• CONCLUSION
• BIBLIOGRAPHY
• ANNEXURE

70
 SUMMARY

Heavy industry in India comprises of the heavy engineering industry, machine tool
Industry, heavy electrical industry, industrial machinery and auto-industry.
These industries provide goods and services for almost all sectors of the economy, including
power, rail and road transport. The machine building industry caters the requirements of
equipment for basic industries such as steel, on-ferrous metals, fertilizers, refineries, Petro
chemicals,shipping,paper,cement,sugaretc.,
BHEL ltd manufactured and supplied several built equipment such as pressure vessels, heat
exchangers, columns, internal trays etc., after executing some important orders, BHEL ltd
gained full confidence of customers which cleared the way to enter the line of cryogenic
field, pulp cooking plant, evaporation plant and industrial boilers on a total turnkey basis
which of later years helped in augmenting turnover of the company and increasing
profitability
Financial ratio analysis is calculation and comparison of main indicators ratios which are
derived from the information given in a company’s financial statements. It involves methods
of calculating and interpreting financial ratios in order to assess a firm’s performance and
status.
This analysis is primarily designed to meet informational needs of the investors, creditors
and management. The objective of ratio analysis is the comparative measurement of
financial data to facilitate wise investment, credit and management decisions.
And basically, ratio analysis helps in acknowledging liquidity, coverage, solvency,
profitability and efficiency of the firm as a whole by assessing several sources available
through the financial statements. Since, it acknowledges the relationship between two
variables to notice the pros and cons of such activity or the department as whole to ascertain
corrective measures being implemented.

71
 FINDINGS

• Post 2000, most of the central public sector enterprises in India are doing well. The
reason is, the PSUs have had introspection about their declining performance during
late 80s and entire 90s and started applying various techniques for improvement,
thereby to compete with the private sector and global entrepreneurs and stand
themselves in the national as well as international markets.
• Government policy towards PSUs also encouraged the PSUs to improvise
themselves. As a part of rehabilitation program, GOI has written off loans and
waived interest valuing Rs 415 crores. Government of AP waived various state and
local taxes to the tune of Rs 47 crores, besides registering the land possessed by the
company as a gift deed.
• Similarly, BHEL also with the help of Government policy coupled with change in the
management started showing positive results. The year 2008 can be said as
Turnaround year or Rebirth year for BHEL.
• After take-over of BHPV by BHEL, the company is enjoying good monetary support
from its holding company. With the support of the funds pumped by holding
company, the company cleared the outstanding loans of consortium banks, liquidated
most of the statutory and other liabilities and enjoying working capital requirements.
• Its holding company has already cleared the Capex program and in the coming two to
three years, an amount of Rs 230 crores would be invested towards Capex.
• Higher operating profit ratio is an indicator of good financial performance of the
company. The operating profit is negative in 2020-21hence operating profit ratio of
the firm isnot good.
• The higher the return on net worth ratio the better is the financial performance of the
firm from the perspective of the shareholders. The net worth ratio of the firm is low
during the above period. It indicates the bad financial performance of the firm.
• An Inventory turnover ratio of 8 is considered ideal.The inventory turnover ratio
shows decrease in recent years in BHEL. Then the firm is inefficient inventory
management
• A higher W.C. turnover ratio indicates the efficient management of working
capital.The W.C.T.R. is 0.895in 2020-21 which is very low and, It indicates
inefficient management of working capital.
These are few important findings I have noticed while reviewing the study on BHEL
(Ratio Analysis).

72
 SUGGESTIONS

• The ratio indicates the stability of efficient utilization of owners and long – term
creditors’ funds. However, as the Capital employed has become negative, the ratios
could not be calculated. It indicates inefficient utilization of funds.
• The marketing department can be further strengthened for order book of more legacy
products.
• Interest free advances should be collected from the customers. With this the liquidity
position improves.
• Young and energetic workforce induction is need of the hour for BHELas its average
employee age is above 40.
• In order to increase its production and profitability, BHEL has to secure more export
orders. The company has to identify new export markets. Effort is to be made to earn
more return on capital employed.
• There must be better coordination among purchase, production, marketing and
financial divisions. This will help in achieving greater efficiency in inventory
management.
• BHEL has to check the man power as per the requirement and existed at present.
• The cost control mechanism of the firm should be improved so that wasteful
expenditure can be avoided and areas of costs reduction can be identified.
• Reduce the loses of BHEL with incorporation of increasing the sales.
• To reduce internal consequences for reducing labour cost, material cost and other
costs of manufacturing components.
• To minimizing cost of production of the firm with external changing policies of
environment.

73
 CONCLUSION

The study in analysis of “Ratio Analysis” is also a brief knowledge and experience of that
how to analyze the financial performance of the BHEL, Vishakhapatnam. The study
undertaken has brought into the light of following conclusions. According to the study report
done, the study revolves around that from the analysis of financial statements, it is clear that
BHEL, Vishakhapatnam have been incurring loss during the period of study. So, the firm
should focus on getting of profits in the coming years by taking care internal as well as
external factors.

74
BIBILIOGRAPHY

Annual Reports of BHEL.

BHEL official website
(https://www.bhel.com/annual-reports)
Moneycontrol.com
(https://www.moneycontrol.com/financials/bharatheavyelectricals/ratiosVI/BHE)
Business-standard.com
(https://www.business-standard.com/company/b-h-e-l-2306/financials-ratios)
Moneyrediff.com
(https://money.rediff.com/.../Bharat-Heavy-Electricals-Ltd/13510039/ratio)
Stocks-financials.valuestocks.in
(https://stock-financials.valuestocks.in/en/bhel-ratio-analysis)
The-Economic-Times
(https://economictimes.indiatimes.com/bharat-heavy-electricals-ltd/yearly/companyid-
11831.cms)
Management Accounting by KHAN M.Y and JAIN P.K
Financial Management by I. M. PANDEY
Financial Management Theory and Practice by KHAN and JAIN
To notice various ratios.

75
 ANNEXURE

OPERATING RESULTS -
BHEL
DESCRIPTION 2016-17 2017-18 2018-19 2019-20 2020-21
TURNOVER [a] 10184.74 13793.10 18782.02 14862.06 8929.73

Cost of Direct Material

Consumption, Civil & 2441.39 5965.45 7881.49 6295 3401
Erection [b]
(Acc)/Dec to WIP/FG [c] 1173.98 -619.29 -458.23 -428 197
Cost of Indirect Material-
223.49 288.29 317.90 481 401
Stores & Spares [d]
Power & Fuel [e] 558.41 497.35 531.41 463 380
VALUE ADDED (VA)
5787.47 7661.30 10509.45 8050.15 4551.32
[f=a-b-c-d-e]
Operating Expenses
[g]
Employee benefits
11993.12 14181.94 11272.99 10947 9246
expenses [i]
Other expenses of Mfg.,
admn., selling & 1868.04 1961.71 2053.31 2590 2789
distribution [ii]
Provisions including Write
-2120.70 -2003.67 -342.15 396 886
Off [iii]
Depreciation &
1751.84 1835.66 1396.89 1427 1412
amortisation expenses [iv]
Finance Costs [v] 642.06 1396.00 221.72 749 680
ERV Losses / (Gain) [vi] -1.75 -1.95 -4.84 -5 14
Total Operating Expenses
14132.61 17369.69 14597.92 16104.87 15026.66
[g]
Less: Other Operational 1391.45 919 607
375.63 493.21
Income [h]
Less: Inter Unit 0 0
Income/(expenses) [i]
Net Operating Expenses
13756.98 16876.48 13206.47 15185.88 14419.21
[j=g-h-i]
Operating Profit - MoU -2697.02 -7135.73 -9867.89
-7969.51 -9215.18
[k=f-j]
Other Income [l] 227.20 251.08 63.24 98.58 66.86
PROFIT BEFORE TAX -7742.31 -8964.10 -2633.78 -7037.15 -9801.03
[m=k+l]

76
BALANCE SHEET - BHEL
DESCRIPTION 2016-17 2017-18 2018-19 2019-20 2020-21

ASSETS
1 Non-current assets
(a) Property, plant and 8258.62 6907.35
11968.30 10638.05 9377.26
equipment
(b) Capital work-in- 3.65 487.57
564.08 135.94 117.27
progress
(c) Intangible assets 43.26 17.91 8.49 1.44 0.53

Total 12575.64 10791.90 9503.02 8263.71 7395.45

(e) Financial assets

(i) Investments 0.05 0.05 0.05 0.05 0.05

(ii) Trade receivables 1795.53 945.39 385.65 347.85 406.12

(iii) Loans 332.84 310.74 310.72 308.92 338.04

(iv) Other financial assets 0.00 0.00 0.00 0.00

(f) Deferred tax assets (net 0.00 0.00
of liabilities)
(g) Other non-current 2398.46 1344.68 2478.27
1159.16 1587.17
assets
Total 3287.58 2843.35 3094.88 2001.50 3222.48

2 Current assets
(a) Inventories 8846.93 9492.43 12853.90 14052.32 12512.00

(b) Financial assets

(i) Investments 0.00 0.00 0.00

(ii) Trade receivables 3496.70 5117.90 3633.45 4583.92 2010.37

(iii) Cash and cash 227.75 241.35 254.56
205.03 216.52
equivalents
(iv) Bank balances other 0.00 0.00 0.00
0.00 0.00
than (iii) above
(iv) Loans 19.38 10.25 12.82 81.82 0.67

(vi) Other financial assets 496.90 480.79 455.94 466.51 450.32

Total 13064.94 15317.89 17183.86 19425.92 15227.92

(c) Current tax assets (net of 96.64 174.97 159.77 127.55 35.10
provisions)
(d) Other current assets 1400.92 3916.15 4527.47 9699.47 7633.63

(5) Funds to & from corp. 460.75

77
off -CCC A/c (Dr. bal.)
Total 1497.56 4091.12 4687.24 10287.77 7668.73

TOTAL ASSETS 30425.72 33044.26 34469.00 39978.90 33514.58

LIABILITIES 2016-17 2017-18 2018-19 2019-20 2020-21

1 Equity

(a) Equity share capital 0.00 0.00 0.00

- - -
(b) Other equity (refer to -
SOCIE)
-70126.96
62519.00 69103.45 76101.39 85612.86
Inter division accounts (Cr
Bal)
66442.07 78391.44 75680.42 93664.02 99578.22
Funds to & from corp. off - 2.91
CCC A/c (Cr. Bal)
0.32 7.44
Total 3923.39 8271.92 6576.97 17562.63 13968.27
Liabilities

2 Non-current liabilities

(a) Financial liabilities

(i) Borrowings 90.99 50.96 36.18 28.08 38.36

(ii) Trade payables
(i) Total outstanding dues
of micro enterprises and 0.00 0.00 0.00
small enterprises
(ii) Total outstanding dues
of creditors other than 0.00 0.00 7.53
micro enterprises and small
enterprises
(iii) Other financial 0.00 38.96 38.96
liabilities
(b) Provisions 5764.44 4056.30 3897.22 3736.62 3318.62
(c) Other non-current 115.23
liabilities
514.98
Total 6370.41 4222.49 3933.40 3803.66 3403.47
3 Current liabilities

(a) Financial liabilities

(i) Borrowings

(ii) Trade payables 5975.71 7124.27

(i) Total outstanding dues 408.59
of micro enterprises and
78
small enterprises

(ii) Total outstanding dues

of creditors other than 10985.11 7150.89 5490.10
micro enterprises and small
enterprises
(iii) Other financial 5994.54 3179.92 2165.25 1503.34
liabilities
3999.77
(b) Provisions 4485.90 2347.78 2931.52 4497.62 3338.31
(c) Other current liabilities 5670.54 5083.26 6862.08 4798.85 5402.50

Total 20131.92 20549.85 23958.63 18612.61 16142.84

TOTAL LIABILITIES 30425.72 33044.26 34469.00 39978.90 33514.58

INVENTORY
DESCRIPTION 2016-17 2017-18 2018-19 2019-20 2020-21
Raw material & 5536.74 8827.30 9464.16 7855.64
5095.37
components
Material-in-transit 54.72 42.97 22.70 65.80 248.58

Work-in-progress 1935.61 1993.33 2327.81 2912.59 2968.30

(Including items with sub-
contractors)
Finished goods 2527.70 2348.91 2379.33 2430.58 2469.52
Inter - division transfers in 749.47 842.80 634.27 121.62
28.27
transit
Stores & spare parts
Production 632.31 611.34 653.71 795.66 789.68

Fuel stores 0.00 0.00 0.00

Miscellaneous 5.67 5.60 8.17 8.34 8.37

Materials with 131.37 110.78 112.90 133.49 580.95
fabricators/contractors
Loose tools 22.81 31.53 34.24 27.72 25.80
Scrap (at estimated
307.32 225.91 268.30 371.03 592.48
realisable value)
Less: Provision for non- -
-2183.30 -2623.36 -2791.32 -3148.94
moving inventory 1894.22
TOTAL INVENTORY 8846.93 9473.28 12853.90 14052.32 12512.00

79
80