Working Capital Management BHELPresentation Transcript
WORKING CAPITAL Company MANAGEMENT LOGO Bharat Heavy Electricals Limited Project Guide(s) By-Akanksha SinghMr.Ashok Srivastava Enrollment No.35Prof.Anil Sharma MBA General (A) Batch: 2010-2012 Amity Business School, Amity University Lucknow Campus
OBJECTIVESCompany name To Study In General The Working Capital Management In BHEL (HERP), Varanasi To Analyze The Operating Cycle Of The Company To Know How The Working Capital Is Being Financed. To know the various techniques being followed by BHEL for Inventory & Receivables Management To Make Recommendations And Give Suggestions For Better Working Capital Management In BHEL.
RESEARCH METHODOLOGYCompany name Research Methodology Used In This Project Is Descriptive Research. Primary Data Sources •This data has been obtained directly from discussions with head of Finance Department of the company. Secondary Data Sources •BHEL Annual Report •Internet •Books, Newspaper, Article
FINDINGSCompany name Turnover of BHEL has increased in 2009-10 to 34154 crore. Due to the outstanding orders (obtained in previous years) the orders secured in the year were less than previous year. Due to extensive hiring of employees the manpower of BHEL has risen to 46274 in 2009-10 from 42406 in 2005-06. The major part of the revenue raised by BHEL is from the Power Sector which is 71% of the total revenue. The current ratio is increased in 2010 to 2.186 from 2.017 in 2009.
LIMITATIONS OF THE STUDYCompany name It was not possible to make an exhaustive study on working capital management of BHEL in a limited duration. The data for 2010-11 has not been included in this report as the audit for the year has not been completed (at the time of preparation of this report). It was not possible to reveal some of the financial data owing to the policies and procedures laid down by BHEL.
CONCLUSIONSCompany name Only secondary data collected from BHEL Varanasi is used for the study, hence the accuracy of the findings will depend upon the accuracy of the given data. The limitations of the methods used in the study will also reflect in the outcome of the study. The Company is keeping a strict eye on cash management now-a- days. The Working Capital is also showing an increasing trend which is attributed to the increasing level of operations.
SUGGESTIONSCompany name Outstanding orders of recent past years are in increasing mode these orders should be minimize as far as possible. Automatic storage and retrieval system (ASRS) should be implemented in stores of BHEL. Periodic review on non moving and slow moving items of inventory should be done. All suppliers need to be educated on the requirement of various documents so that delay in processing of bills and payment may be reduced/avoided. Storage capacity should be made more reliable.