The ICFAI university Tripura

Kamalghat , Tripura West

Internal - 2
A study on Hindustan Aeronautics Ltd (HAL)
At

Name – Roni Sarkar

ID no – 23IUT0160045
Program – MBA1st year
Batch – 2023/2025
Subject – Accounts For Managers
Subject code – INM511 Project Guid –
Dr . Tamaladipta Sen

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CONTENT -

SL NO TITLE PAGE NO.

1. Acknowledgement
2 Introduction
3. Objective
4. Company profile
6. Methodology
7. Facts and Observation
8. Conclusion
9. Conceptual Relevance

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ACKNOWLEDGEMENT –

I am over whelmed in all humbleness and gratefulness to acknowledge my

department to all those who have helped me to put those ideas , well above
the level of simplicity and into something concrete.

As a study of ICFAI UNIVERSITY TRIPURA , I would like to express my special

thanks of gratitude to my teacher Dr . Tamladitha Sen who give me the golden
opportunity to do this wonderful study .
I would like to express my sincere thanks to Dr . Sujit Deb (Deen of FMC
department) for giving his consideration of me to work in this Project .
I am really very grateful to my Bakery guide Rajat Datta for constantly guiding
me . advising me and introducing the project to me in a easy way to
understand which has helped me complete my project easily and effectively on
time .
I express my sincere thanks to all of the above inspiratory guide who helped
me a lot in gathering different information ,collecting data and guiding me
from time to time in making this project , despite of their busy schedule , they
gave me different ideas in making this project unique and also helped me in
doing a lot of research and I came to know about so many new things .
THANK YOU ALL …

Date – 1 /11/2023
Kamalghat, west Tripura yours obediently,
Roni sarkar

Signature ; ……………………………………….
ID 23IUT0160045
MBA (FNC) , ICFAI UNIVERCITY TRIPURA

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INTRODUCTION

Hindustan Aeronautics Limited (HAL), a cornerstone of India's aerospace and

defense prowess, stands as a testament to the nation's commitment to
technological self-reliance and innovation. Established in 1940, initially as
Hindustan Aircraft Limited, the company underwent a transformative merger
with Aeronautics India Limited in 1964, evolving into the formidable entity that
it is today.
Historical Footprint: HAL's journey mirrors the historical narrative of India's
aerospace development. From its inception, HAL has played a pivotal role in
shaping the nation's aviation landscape, witnessing and contributing to the
evolution of technology, strategy, and global partnerships in the aerospace and
defense sectors.
Aerospace Portfolio: At the heart of HAL's operations lies a diverse and
comprehensive portfolio encompassing the entire aerospace spectrum. The
company excels in the design, development, manufacturing, repair, and
overhaul of a wide array of products, including cutting-edge aircraft,
helicopters, avionics systems, and aero-engines.
Aircraft Manufacturing Excellence: HAL's expertise in aircraft manufacturing is
exemplified by its role in crafting a variety of aircraft for both civilian and
military applications. The indigenous HAL Tejas, a symbol of technological
prowess, underscores the company's commitment to developing and
producing world-class fighter planes.
Helicopters for Varied Needs: In the realm of rotary-wing aviation, HAL stands
tall as a premier helicopter manufacturer. The Dhruv Advanced Light
Helicopter (ALH), a versatile and widely used platform, is a testament to HAL's
prowess in helicopter technology. Further, projects like the Light Combat
Helicopter (LCH) and the Light Utility Helicopter (LUH) underscore the
company's commitment to addressing diverse operational requirements.

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Propelling Progress: HAL's contributions extend beyond airframes to the realm
of aero-engines, where the company has been a driving force in indigenous
engine development. By reducing dependency on foreign suppliers, HAL has
played a crucial role in enhancing India's strategic autonomy in the aerospace
domain.

Global Collaborations: Embracing a collaborative ethos, HAL has engaged in

strategic partnerships and collaborations with leading international aerospace
and defense entities. These alliances have not only facilitated the exchange of
technological know-how but have also positioned HAL as a key player in the
global aerospace arena.
Research and Technological Advancements: Research and development form
the bedrock of HAL's capabilities. The company places a premium on
innovation, constantly pushing technological boundaries to develop cutting-
edge solutions. This commitment ensures that HAL remains at the forefront of
aerospace advancements, contributing to India's technological ascendancy.
Exporting Excellence: HAL's influence extends beyond national borders, with
the company actively participating in the global aerospace market. Through
the export of aircraft, helicopters, and associated components, HAL has
established itself as a reliable partner for nations seeking high-quality
aerospace solutions.
Maintenance, Repair, and Overhaul (MRO) Expertise: Complementing its
manufacturing prowess, HAL offers a comprehensive suite of Maintenance,
Repair, and Overhaul services. This ensures the longevity and operational
readiness of diverse aerospace platforms, a crucial aspect of sustaining defense
capabilities.
In essence, HAL's legacy is woven into the fabric of India's aerospace journey.
As the company continues to evolve, it remains a beacon of technological
excellence, contributing significantly to the nation's defense capabilities and
shaping the narrative of a self-reliant and globally competitive aerospace
industry in India.

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Objective –
To excel in aerospace manufacturing, HAL aims to provide state-of-the-art
solutions for national defense and technological self-sufficiency

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Company Profile –
Company Name: Hindustan Aeronautics Limited (HAL)
Founded: 1940 (as Hindustan Aircraft Limited, later merged with Aeronautics
India Limited in 1964)
Headquarters: Bangalore, India
Type: Public Sector Undertaking (PSU)
Industry: Aerospace and Defense
Key Focus Areas:
1. Aircraft Manufacturing: HAL is a leading aerospace company engaged in
the design, development, and manufacturing of a diverse range of
aircraft, including fighters, trainers, and transport planes.

.
2. Helicopter Production: The company is a key player in the production of
helicopters, with notable projects such as the Dhruv Advanced Light
Helicopter (ALH), Light Combat Helicopter (LCH), and Light Utility
Helicopter (LUH).
3. Aero-Engines: HAL is involved in the development and production of
aero-engines, contributing to India's self-reliance in this critical
aerospace component.
4. Research and Development: HAL places a strong emphasis on research
and development to stay at the forefront of aerospace technology,
innovation, and advancements.

5. Global Collaborations: The company actively collaborates with

international aerospace and defense organizations to enhance
technological capabilities and foster global partnerships.

6. Export of Aerospace Products: HAL exports aircraft, helicopters,

and related components to various countries, contributing to
India's presence in the global aerospace market.

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7. Maintenance, Repair, and Overhaul (MRO): HAL provides MRO
services to ensure the operational readiness and longevity of
aerospace platforms.
HAL is dedicated to advancing aerospace technology,
manufacturing cutting-edge aircraft and helicopters, fostering
self-reliance, and contributing to national defense and global
aerospace capabilities

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Methodology –
Data Type – Secondary Data
Method Use – Comparative Financial Statement Analysis
Software Use – Microsoft Word, Microsoft Excel

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PROFIT & LOSS ACCOUNT OF HINDUSTAN AERONAUTICS Ltd.
2022- 2021- ABSULAT REALTIV
Particulars 23(IN 2022(IN E E
CR.) CR.) CHANGE CHANGE
INCOME
26,360.5 24,361.6
REVENUE FROM OPERATIONS [GROSS] 6 6 1,998.90 8.2%
Less: Excise/Sevice Tax/Other Levies 0 0 0.00 0.0%
26,360.5 24,361.6
REVENUE FROM OPERATIONS [NET] 6 6 1,998.90 8.2%
26,927.8 24,620.2
TOTAL OPERATING REVENUES 5 1 2,307.64 9.4%
Other Income 1,671.80 986.34 685.46 69.5%
28,599.6 25,606.5
TOTAL REVENUE 5 5 2,993.10 11.7%
EXPENSES 0.00 0.0%
10,010.2
Cost Of Materials Consumed 6 8,755.25 1,255.01 14.3%
Purchase Of Stock-In Trade 799.15 656.68 142.47 21.7%
Operating And Direct Expenses 0 0 0.00 0.0%
Changes In Inventories Of FG,WIP And Stock-In Trade -691.45 592.29 -1,283.74 -216.7%
Employee Benefit Expenses 4,895.89 4,589.83 306.06 6.7%
Finance Costs 57.91 58.14 -0.23 -0.4%
Depreciation And Amortisation Expenses 1,783.91 1,286.30 497.61 38.7%
Other Expenses 2,155.39 1,531.89 623.50 40.7%
22,106.7 20,375.4
TOTAL EXPENSES 1 0 1,731.31 8.5%
PROFIT/LOSS BEFORE EXCEPTIONAL, EXTRAORDINARY ITEMS
AND TAX 6,492.94 5,231.15 1,261.79 24.1%
Exceptional Items 0 0 0.00 0.0%
PROFIT/LOSS BEFORE TAX 6,492.94 5,231.15 1,261.79 24.1%
TAX EXPENSES-CONTINUED OPERATIONS 0.00 0.0%
Current Tax 2,250.00 1,900.00 350.00 18.4%
Less: MAT Credit Entitlement 0 0 0.00 0.0%
Deferred Tax -594.77 -562.62 -32.15 5.7%
Tax For Earlier Years -973.46 -1,192.73 219.27 -18.4%
TOTAL TAX EXPENSES 681.77 144.65 537.12 371.3%
PROFIT/LOSS AFTER TAX AND BEFORE EXTRAORDINARY ITEMS 5,811.17 5,086.50 724.67 14.2%
PROFIT/LOSS FROM CONTINUING OPERATIONS 5,811.17 5,086.50 724.67 14.2%
PROFIT/LOSS FOR THE PERIOD 5,811.17 5,086.50 724.67 14.2%
Facts And Observations

Interpretation of profit and Loss Account

Income

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 Revenue From Operations [Gross]: In 2022-2023, the company generated a gross
revenue of ₹26,360.56 crore, which is a decrease of ₹1,998.90 crore, or a 8.2% decline
compared to the previous year (2021-2022).
 REVENUE FROM OPERATIONS : In the current year, there was an additional revenue of
₹26,360.56 crore under absolute change ₹ 1,998.90 ,and next year ₹ 24,361.66 while
there 8.2% such revenue in the previous year.
 Total Operating Revenues: The total operating revenue, which includes both revenue
from operations and other operating revenues, amounted to ₹26,927.85 crore in
2022-2023. This represents a decrease of ₹2,307.64 crore, or a 9.4% decline compared
to the previous year.
 Other Income: The company earned ₹1,671.80 crore from other sources, which is an
increase of ₹685.46 crore or 69.5% compared to the previous year.
 Total Revenue: The total revenue, which includes both operating and other income,
amounted to ₹28,599.65 crore in 2022-2023. This represents a decrease of 2,993.10
crore, or a 11.7% decline compared to the previous year

Expenses-
 Cost Of Materials Consumed: The cost of materials consumed decreased by
₹1,255.01 crore or 14.3% compared to the previous year.
 Purchase Of Stock-In Trade: There were expenses of ₹142.47crore in the current year,
while there was 21.7% in the previous year.
 Changes In Inventories Of FG, WIP, And Stock-In-Trade: There was a significant
decrease in these inventories, resulting in a decrease of ₹-1,283.74crore or -
216.7% compared to the previous year.
 Employee Benefit Expenses: Employee benefit expenses decreased by ₹306.06
crore or 6.7% compared to the previous year.
 Finance Costs: Finance costs increased by ₹-0.23crore or -0.4% compared to the
previous year.
 Depreciation And Amortisation Expenses: Depreciation and amortization
expenses decreased by ₹497.61 crore or 38.7% compared to the previous year.
 Other Expenses: Other expenses increased by ₹623.50 crore or 40.7% compared
to the previous year.

Profit/Loss
 "Profit/Loss Before Exceptional, Extraordinary Items, and Tax" decreased by
₹1,261.79 crore or 24.1 % compared to the previous year.
 Profit/Loss Before Tax" decreased by ₹1,261.79 crore or 24.1% compared to
the previous year.

Tax Expenses
 Current Tax decreased by ₹350.00 crore or 18.4 % compared to the
previous year.

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  Deferred Tax increased by ₹-32.15 crore or 5.7% compared to the previous
year.
 Tax For Earlier Years by ₹219.27 crore or -18.4% compared to the previous
year.

 Total Tax Expenses decreased by 537.12 crore or 371.3% compared to

the previous year.

Profit/Loss for The Period:

The company's profit for the period in 2022-2023 was ₹5,811.17 crore, which is a decrease of
₹724.67 crore or 14.2% compared to the previous year.

This analysis suggests that Hindustan Aeronautics Ltd. experienced a decline in revenue and
profitability, primarily due to reduced gross revenue from operations. While cost reduction
measures were evident in some expense categories, finance costs increased, impacting the
overall profit. The absence of exceptional items in 2022-2023 was a positive factor.
However, the company needs to manage costs and improve revenue to enhance
profitability in the future.

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BALANCE SHEET OF HINDUSTAN AERONAUTICS (in Rs. Cr.)

2022-23(IN 2021-2022(IN ABSULATE REALTIVE

ParticularsA3:D25AA3:D33
CR.) CR.) CHANGE CHANGE
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 334.39 334.39 0 0.00%
Total Share Capital 334.39 334.39 0 0.00%
Reserves and Surplus 23,171.78 18,929.61 -4242.17 -22.41%
Total Reserves and Surplus 23,171.78 18,929.61 -4242.17 -22.41%
Total Shareholders Funds 23,506.17 19,264.00 -4242.17 -22.02%
NON-CURRENT LIABILITIES
Long Term Borrowings 0 0 0 0.00%
Other Long Term Liabilities 11,452.85 12,788.90 1336.05 10.45%
Long Term Provisions 1,332.94 1,248.24 -84.7 -6.79%
Total Non-Current Liabilities 12,785.79 14,037.14 1251.35 8.91%
CURRENT LIABILITIES
Short Term Borrowings 0 0 0 0.00%
Trade Payables 3,137.34 2,559.77 -577.57 -22.56%
Other Current Liabilities 20,911.43 17,404.30 -3507.13 -20.15%
Short Term Provisions 6,776.65 5,055.78 -1720.87 -34.04%
Total Current Liabilities 30,825.42 25,019.85 -5805.57 -23.20%
Total Capital And Liabilities 67,117.38 58,320.99 -8796.39 -15.08%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 5,791.56 5,919.85 128.29 2.17%
Intangible Assets 1,035.74 838.26 -197.48 -23.56%
Capital Work-In-Progress 635.81 948.01 312.2 32.93%
Intangible Assets Under Development 1,248.10 1,523.84 275.74 18.10%
Other Assets 0.03 0.03 0 0.00%
Fixed Assets 8,711.24 9,229.99 518.75 5.62%
Non-Current Investments 1,385.39 1,294.14 -91.25 -7.05%
Deferred Tax Assets [Net] 1,125.71 565.57 -560.14 -99.04%
Long Term Loans And Advances 6.21 6.23 0.02 0.32%
Other Non-Current Assets 4,002.52 2,217.94 -1784.58 -80.46%
Total Non-Current Assets 15,231.07 13,313.87 -1917.2 -14.40%
CURRENT ASSETS
Inventories 12,160.67 14,363.58 2202.91 15.34%
Trade Receivables 4,719.07 4,641.55 -77.52 -1.67%
Cash And Cash Equivalents 20,306.15 14,343.61 -5962.54 -41.57%
Short Term Loans And Advances 7.62 8.06 0.44 5.46%
Other Current Assets 14,692.80 11,650.32 -3042.48 -26.11%
Total Current Assets 51,886.31 45,007.12 -6879.19 -15.28%
Total Assets 67,117.38 58,320.99 -8796.39 -15.08%
Interpretation of Balance Sheet.

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Equities and Liabilities:

Shareholder's Funds: The equity share capital remained unchanged at ₹334.39 crore in both
years. The reserves and surplus increased by ₹-4242.17 crore or22.41% compared to the
previous year, resulting in total shareholder's funds of ₹23,506.17 crore, reflecting a 22.02%
increase.

Non-Current Liabilities: Other long-term liabilities increased significantly by ₹1336.05

crore or 10.45 %, while long-term provisions decreased by ₹-84.7 crore or -6.79 %. The total
non-current liabilities increased to ₹12,785.79 crore, showing a substantial increase of 8.91%.

Current Liabilities: Short-term borrowings remained the same. Trade payables decreased
by ₹-577.57 crore or 22.56 %, while other current liabilities decreased by ₹-3507.13crore or -
20.15%. Short-term provisions increased by ₹-1720.87crore or -34.04%. Total current
liabilities decreased to ₹30,825.42 crore, showing a -23.20% decrease.

Assets:
Non-Current Assets: Tangible assets decreased by ₹128.29 crore or 2.17 %, intangible assets
decreased by ₹-197.48crore or -23.56%, and capital work-in-progress increased by
₹312.2crore or 32.93%. Other non-current assets increased significantly by ₹-1784.58 crore
or -80.46%. The total non-current assets increased to ₹15,231.07 crore, showing a -14.40%
increase.
Current Assets: Inventories increased by ₹2202.91 crore or 15.34%, while trade receivables
decreased by ₹ -77.52 crore or 1.67 %. Cash and cash equivalents increased by ₹-5962.54
crore or- 41.57%, and other current assets increased by ₹0.44 crore or5.46%. The total
current assets increased to ₹51,886.31 crore, showing a significant -15.28% increase.

Total Capital and Liabilities:

The total capital and liabilities in 2022-2023 were ₹67,117.38 crore, which is a significant
increase of ₹-8796.39 crore or -15.08 % compared to the previous year.
This analysis suggests that Hindustan Aeronautics Ltd. experienced growth in shareholders'
funds and total capital and liabilities. Non-current liabilities significantly increased, possibly
indicating expansion or financial restructuring. The company's cash and cash equivalents
saw substantial growth, contributing to the overall increase in assets. However, the
decrease in trade receivables might warrant further examination.

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CONCLUSION-

Hindustan Aeronautics Limited (HAL) stands as a pivotal entity in India's

aerospace and defense landscape. With a rich history dating back to 1940, HAL
has evolved into a leading player in the design, development, and
manufacturing of aircraft, helicopters, and aero-engines. The company's
commitment to advancing aerospace technology, fostering self-reliance, and
contributing to national defense is evident in its diverse portfolio, global
collaborations, and export initiatives.
HAL's achievements extend beyond manufacturing; the company actively
engages in research and development, ensuring it remains at the forefront of
technological innovation. Through strategic collaborations with international
partners, HAL has strengthened its position in the global aerospace arena.
As India's premier aerospace organization, HAL continues to play a crucial role
in supporting the Indian Armed Forces, providing maintenance, repair, and
overhaul services, and contributing to the nation's quest for technological self-
sufficiency. With a focus on excellence and a dedication to advancing the
aerospace industry, HAL remains a cornerstone in India's pursuit of security,
innovation, and global competitiveness

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