The document discusses a study of the working capital management of Bharat Heavy Electricals Limited (BHEL). It outlines the objectives, research methodology, findings, limitations, conclusions, and suggestions of the study. The study analyzes BHEL's operating cycle, financing of working capital, inventory and receivables management techniques, and makes recommendations for improving working capital management.

1. WORKING CAPITAL
Company
MANAGEMENT
LOGO
Bharat Heavy Electricals Limited
Project Guide(s) By-Akanksha Singh
Mr.Ashok Srivastava Enrollment No.35
Prof.Anil Sharma MBA General (A)
Batch: 2010-2012
Amity Business School, Amity University
Lucknow Campus

2. OBJECTIVES
Company 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.

3. RESEARCH METHODOLOGY
Company 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

4. FINDINGS
Company 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.

5. LIMITATIONS OF THE STUDY
Company 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.

6. CONCLUSIONS
Company 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.

7. SUGGESTIONS
Company 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.

8. Company
LOGO