INTRODUCTION

 
FINANCIAL MANAGEMENT:

Financial management is a management discipline that deals with the

planning and control of the financial resources of the business. It was a branch of
economics until 1980, and was of recent origin as a separate discipline. Yet it
doesn’t have a strong body of knowledge of its own and yet today draws heavily
on economics for its theoretical concepts. Financial management theory offers
skillful logical and empirical perspectives for making decisions about the financial
aspects of the company.
 NEED FOR THE STUDY

1.To check whether the working capital has been successfully used or not.

2.To check whether the working capital amount is sufficient or insufficient for
the business requirements.

3.To check whether the excess of insufficient working capital and funds will
result in the company’s profit which it might otherwise gain.
 
 OBJECTIVES OF THE STUDY
This BHPV research study was conducted to assess the
organization’s financial performance by setting the following
targets/objectives.
 
•To evaluate the differences in assets and liabilities between the end of one
period of time and the end of another.
•To know the different needs for which funds were collected during a specific
period in which those funds were used.
• To judge the financial position, i.e. the short-term liquidity position and the
long-term solvency of BHEL-HPVP (BHPV).
•To measure the operational efficiency of BHEL-HPVP (BHPV) To
determine the profitability trends of BHEL-HPVP (BHPV).
•To assess the overall financial position of the company through various
established techniques.
•To notify the client as to how the loans were used.
 SIGNIFICANCE OF THE STUDY

Assets flow statement is an important financial instrument that

analyzes a company’s changes in financial position showing the origins and
purposes of its assets. This provides useful information on the operating,
financing, and investment activities of the organization during a given period.
The following points underline the importance of a statement about both the flow
of funds.

•The company’s financial resources are analyzed in detail, and the changes made
between the two balance sheet dates are disclosed.
•It offers an answer to the question of an insufficient liquid cash position despite
more and more profits being generated by company.
•This shows the extent to which funds were provided for a given period of use.
 SCOPE OF THE STUDY
  The study’s focus is related to one of the main finance areas i.e. Financial
Statements Evaluating & Interpreting. The study assesses the company’s
fulfillment of core sector requirements for process industries such as fertilizers, oil
refineries, chemicals etc.
  Funds Flow Statement is a mathematical tool to evaluate shifts between
two dates in the financial state of the business enterprise. A statement on the flow
of funds is a statement that shows different ways in which the funds were
collected over a certain period and how those funs were used over the period.
• This study focuses over a period of time as sources of funds and as application of
funds.
•The analysis is verified to assess changes in the financial position of BHEL
between the start date and end date of the financial year.
•This Funds Flow Statement is a statement showing the various means by which
funds were collected over a given period of time.
 LIMITATIONS OF THE STUDY

1.It should be borne in mind that a Fund Flow Statement does not substitute an
income statement or a balance sheet.
2. It only indicates some additional information in terms of working capital.
3. Can’t reveal constant changes.
4.The analysis shall be based on the annual reports and internal information
available.
5.Time restrictions is another study limit, since the analysis is limited to
30 days.
 INDUSTRY PROFILE
 
Experienced in design of columns, multi layer vessels, heat exchangers, liquid
oxygen & nitrogen unit, evaporation plants, digesters, mounded vessels, sulphur recovery
unit, gas dehydration, heater treaters, crude stabilizations unit, storage vessels etc., backed
by Technology absorption & adoption from the world leaders.

•Skoda Exssport , Czechoslovakia.

•L’Air liquid, France.
• KAMYR - AB Sweden
• ARAMCO
• NRDC, India
• Hahn & Clay, USA.ETC.,
 
 COMPANY PROFILE
Incorporation of the Company
Primary Objective
Commencement of Construction :
Completion of Construction
Commencement of Production
Initial Project Cost
Initial Product Mix
Installed Capacity
Turnover for the year 2017-18
: 1966
: To manufacture custom built Capital
Equipment for the Process industries
such as Fertilizers, petrochemicals,
Petroleum refineries, chemicals etc
1968
: 1971
: 1971
: Rs. 17.5 crores
: Heat Exchangers, columns, pressure
Vessels, Technological Structures,
piping etc
: 23, 210 M.T.
: Rs. 138 Crores