HISTORY

BHEL was founded in 1950s. BHEL or the Bharat Heavy Electronics Limited is one of the largest engineering and manufacturing organizations in the country. BHEL was established more than 40 years ago. The Heavy Electrical Equipment Plant in Haridwar designs and manufactures turbo generators, AC and DC motors, gas turbines and huge steams. The Central Foundry Forge Plant in Haridwar deals with steel castings and manufacturing of steel forgings. With two large manufacturing plants, BHEL in Haridwar is among the leading industrial organizations in the state. Situate in Ranipur near Haridwar, the Bharat Heavy Engineering Limited employs over 8,000 people. Bharat Heavy Electricals Limited (BHEL) is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector.

Bharat Heavy Electricals Ltd. (BHEL) Haridwar has two manufacturing plants:- Heavy Electrical Equipment Plant (HEEP) and Central Foundry Forge Plant (CFFP).

The Heavy Electricals Equipment Plant (HEEP) located in Haridwar is one of the major manufacturing plants of BHEL. The core business of HEEP includes design and manufacture of large steam and gas turbines, turbo generators, hydro turbines and generators, hydro turbines and generators, large AC/DC motors.

Central Foundry Forge Plant (CFFP) is engaged in manufacture of Steel Castings: Up to 50 Tons per Piece Wt & Steel Forgings: Up to 55 Tons per Piece Wt.

Pollution Control & Research Institute (PCRI) is engaged in researching how to minimize the pollution generated by manufacturing of equipments made in BHEL.

Some functions of PCRI

• Monitoring of Environmental Parameters relating to Air, Water, Soil, Fuel, River water and Drinking water

• Environmental Impact Assessment (EIA) • Environmental Audit and Resource Conservation• Performance Evaluation of Pollution Control Equipment and

suggesting corrective measures

Over 65 percent of power generated in India comes from BHEL-supplied equipment. Overall it has installed power equipment with a total capacity of over 90,000 MW.

VISION, MISSION AND VALUES

VISION

A World-Class Engineering Enterprise Committed toEnhancing Stakeholder Value

MISSION

To be an Indian Multinational Engineering Enterpriseproviding Total Business Solutions through QualityProducts, Systems & Services in the fields of Energy,Industry, Transportation, Infrastructure and other potential areas.

VALUES

1. Zeal to Excel and Zest for Change2. Integrity and Fairness in all Matters3. Respect for Dignity and Potential of Individuals4. Strict Adherence to Commitments5. Ensure Speed of Response6. Foster Learning, Creativity and Team-work7. Loyalty and Pride in the Company

What it Manufactures?

BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc.

The wide network of BHEL's 14 manufacturing divisions, four Power Sector regional centers, over 100 project sites, eight service centers and 18 regional offices, enables the Company to promptly serve its customers and provide them with suitable products, systems and services -- efficiently and at competitive prices.

The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centers.

As an engineering conglomerate, BHEL offers over a wide spectrum of products and services for core sectors including power generation, transmission and distribution; transportation; and oil and gas as well as the supply of non-conventional energy systems.

BHEL provides customers worldwide with complete Custom- designed Boiler Island Solutions for power and process steam generation covering design, engineering, manufacture, erection and commissioning of boilers, boiler house auxiliaries and all associated systems and sub-systems.

In addition to Concept-to- Commissioning expertise for all types of steam generators.

BHEL has the unique advantage of world class, state-of-the-art manufacturing facilities for the entire gamut of components and systems for the boiler island including boilers, auxiliaries such as fans, air pre-heaters and electrostatic precipitators, piping and piping systems, valves, blowers, gravimetric feeders, controls & instrumentation etc.

BHEL offers over 180 products and provides systems and services to meet the needs of core sectors like: power, transmission, industry, transportation, oil & gas, non-conventional energy sources and telecommunication.

More about BHEL

Bharat Heavy Electricals Ltd. (BHEL) is the largest engineering and manufacturing enterprises of its kind in India and is one of the leading international companies in the field of power equipment manufacture. The first plant of BHEL, set up at Bhopal in 1956, signalled the dawn of the Heavy Electrical Industry in India. In the sixties, three more major plants were set up at Haridwar, Hyderabad and Tiruchirapalli that form the core of the diversified product range, systems and services that BHEL offers today. BHEL’s range of services extends from project feasibility studies to after-sales-service, successfully meeting diverse needs through turnkey capability. The company has 14 manufacturing units, 4 power sector regions, 8 service centers and 15 regional offices, besides project sites spread all over India and abroad. BHEL has a well recognized track record of performance, making profits continuously since 1971-72 and paying dividends since 1976-77.Bharat Heavy Electricals Limited (BHEL) was conceived with a vision to make India self-reliant in the manufacture of power plant equipment and to change the face of industrial development in India. Today, BHEL is the largest engineering enterprise of its kind in India and one of the foremost companies in the international power arena. BHEL sets generate 73% of the total power generated in the country and account for over 81,000 MW of India’s total installed generating capacity. In real terms, that translates into three out of every four homes in India being lit up with power generated by BHEL equipment. “Product Finder’’ feels privileged to carry this Cover Feature profiling the BHEL and its far-flung and diverse activities in recognition of its outstanding achievements.

BHEL has already attained ISO 9000 certification for quality management and all the manufacturing units divisions have been upgraded to the latest ISO 9001-2000 version.BHEL has also secured ISO 14001 certification for environmental management systems & OHSAS – 18001 certification for occupational health and safety management systems for all its units/divisions. BHEL is continuing its journey towards Business Excellence.

Its operations are organized around three business sectors: Power, Industry- including Transmission, Transportation, Telecommunication & Renewable Energy. BHEL has a wide-spread network comprising 14 manufacturing divisions, 8 service centers, 4 power sector regional centers, 18 regional offices, and a large number of project sites spread all over India and abroad.

BHEL is one of the largest exporters of engineering products & services from India. BHEL has established its references in around 60 countries of the world, ranging from the United States in the West to New Zealand in the Far East. Its export range include: individual products to complete power stations, turnkey contracts for power plants, EPC contracts, HV/EHV Sub-stations, O&M services for familiar technologies, specialized after-market services like Residual Life Assessment (RLA) studies and retrofitting, refurbishing & overhauling, and supplies to manufacturers & EPC contractors.

BHEL also undertakes overhauling and rehabilitation jobs for BHEL/Non-BHEL equipment in overseas market. Overhaul and maintenance of power plant equipment have been accomplished in Libya, Iraq, Iran, Saudi Arabia, Nepal and Malaysia.

Recently, BHEL has also executed an order from Bangladesh for rehabilitation of Boiler and refurbishing of Condenser for Siddhirganj Power Station. Consultancy work overseas has also been undertaken.

BHEL has committed to support the Global Compact & the set of core values enshrined in its ten principles in the areas of human rights, labour standards and environment.

Product Range Of BHEL

BHEL's product range include: Steam turbines and generators of up to 500MW capacity for utility and combined-cycleapplications; Steam turbines for CPP applications; Gas turbines of up to 260MW (ISO) rating;Custom-built conventional hydro turbines of Kaplan, Francis and Pelton types with matching generators, pump turbines with matching motor-generators; Spherical, butterfly and rotary valves and auxiliaries for hydro station; HSD, LDO, FO, LSHS, natural-gas/biogas based diesel power plant; Industrial turbo-sets of ratings from 1.5 to 120MW; Steam generators for utilities, ranging from 30 to 500MW capacity, using coal, lignite, oil, natural gas or a combination of these fuels; Pulverized fuel fired boilers; Stoker boilers; Atmospheric fluidized bed combustion boilers; Circulating fluidized bed combustion boilers; Waste heat recovery boiler; Boiler Auxiliaries; Heat Exchangers & Pressure Vessels; Pumps; Power Station Control Equipment; Switchgears; Bus Ducts; Transformers; Insulators; Capacitors; Energy Meters etc.

Power Sector

Generation

Power Generation Sector comprises thermal, gas, hydro & nuclear power plant business. As of 31.3.2006, BHEL-supplied sets account for nearly 76,742 MW or 65% of the total installed capacity of 118561 MW in the country, as against Nil till 1969-70.

BHEL has proven capabilities for executing power projects from concept to commissioning. It possesses the technology and capability to produce thermal sets with super critical parameters up to 1000 MW unit rating and gas turbine-generator sets of up to 250 MW units rating.

Cogeneration & combined-cycles plants have been introduced to achieve higher plant efficiencies. To make efficient use of the high-ash-content coal available in India, BHEL supplies circulating fluidized bed combustion boilers to both thermal and combined-cycle power plants.

The Company manufactures 235/250 MW nuclear turbine generator sets, and has commenced production of 500 MW nuclear turbine generator sets.

In all, Orders for more than 700 utility sets of thermal, hydro, gas and nuclear have been placed on the Company as on date. The power plant equipment manufactured by BHEL is based on contemporary technology comparable to the best in the world, and is also internationally competitive.

The Company has proven expertise in Plant performance Improvement through renovation, modernization and updating of a variety of power plant equipment, besides specialized know-how of residual life assessment, health diagnostics and life extension of plants.

Transmission

BHEL also supplies a wide range of transmission products and systems of up to 400 kV class. These include high-voltage power & instrument transformers, dry-type transformers, shunt & series reactors, 33 kV gas-insulated sub-station, insulators. For economic transmission of bulk power over long distances, High Voltage Direct Current (HVDC) systems are supplied. Series and shunt compensation systems, to minimize transmission losses, have also been supplied.

Industries

BHEL is a major contributor of equipment & systems to industries; cement, sugar, fertilizers, refineries, petrochemicals, steel, paper, etc. The range of systems & equipment supplied includes : captive power plants, DG power plants, high-speed industrial drive turbines, industrial boilers and auxiliaries, waste heat recovery boilers, gas turbines, heat exchangers and pressure vessels, centrifugal compressors, electrical machines, pumps, valves, seamless steel tubes and process controls. The Company is a major producer of large-size thyrister devices.It also supplies digital distributed control systems for process industries, and control & instrumentation systems for power plant and industrial applications.

BHEL is the only company in India with the capability to make simulators for power plants, defense and other applications.

The Company has commenced manufacture of large desalination plants to help augment the supply of drinking water to people.

Transportation

Most of the trains operated by Indian Railways, including the metro in Calcutta, are equipped with BHEL’s traction electrics and traction control equipment.

The Company supplies electric locomotives to Indian Railways and diesel shunting locomotives to various industries. 5000/4600 hp AC/DC locomotives developed and manufactured by BHEL have been supplied to Indian Railways. Battery-powered road vehicles are also manufactured by the Company.

BHEL also supplies traction electrics and traction control equipment for electric locos, diesel-electric locos, and EMUs/DEMUs to the Railways.

Telecommunication

BHEL also caters to Telecommunication sector by way of small, medium and large switching systems.

Renewable Energy

Technologies that can be offered by BHEL for exploiting non-conventional and renewable sources of energy include: wind electric generators, solar power based water pumps, lighting and heating systems.The Company manufactures wind electric generators of unit size up to 250 kW for wind farms, to meet the growing demand for harnessing wind energy.

Human Resource Development

           As a process of linking HRM to market forces/stakeholder driven policies, an e-enabled Performance Management System has been established for executives – a new benchmark in promoting performance-led growth. To encourage individuals for capability building and for continuous improvement through creativity & innovation in every sphere of activity, an

e-network based ‘Improvement Projects Rewards Scheme’ (IMPRESS) has been introduced company wide.

The greatest strength of BHEL is its highly skilled and committed manpower. Every employee is given an equal opportunity to develop himself and improve his position. Continuous training & retraining, career planning, a positive work culture ad participative style of management have engendered development of a committed and motivated work force ready to take up the challenge of making BHEL a competitive world-class organization.

           Provision of Rs 49.92 crore has been made for Corporate Dividend Tax on the final dividend proposed Corporation Dividend Tax of Rs 42.91 crore has already been paid on the interim dividend.

Year at a Glance(Rs. in crores)   2006-07 2005-06 Change (%)

Orders Received   35643 18938 88.21

    The Board of Directors in January, 2007 recommended the issue of Bonus Shares in the ratio of 1:1 to the Shareholders of the company. Subsequently, an Extraordinary General Meeting of the Shareholders of the Company was convened on 30th April, 2007. The Shareholders approved increase in the Authorised Share Capital from Rs 325 crore divided into 32.50 crore Equity Shares of Rs 10/- each to Rs 2,000 crore divided into 200 crore Equity Shares of Rs 10/- each and approved issue of Bonus Shares in the ratio of 1:1 i.e. one Bonus Share of Rs 10/- each for every one fully paid up Equity Share of Rs 10/- each held by them on the ‘Record Date’. The bonus share will rank pari-passu for payment of dividend along with the existing share capital of the company as per the listing requirement. The ‘Record Date’ to ascertain the names of the Shareholders who were eligible for Bonus shares, both in physical mode as well as in the electronic mode was fixed as 1st June, 2007. The Committee of Board of Directors of the Company allotted the Bonus Shares on 6th June, 2007 to all the Shareholders, whose names were in the Register of Members or in the respective beneficiary accounts with their depository participants, as on 1st June, 2007.

          

The Board has recommended a final Dividend of 60%, Rs 293.71 crore on the enhanced paid-up share capital consequent to 1:1 bonus issue equivalent to 120% on the pre-bonus equity share capital for the year 2006-07. An interim dividend of 125%,Rs 305.95 crore, on share capital of Rs 244.76 crore has already been paid for the year 2006-07. Thus the total dividend payment for the year 2006-07 is Rs 599.66 crore (exclusive of dividend tax) as against Rs 354.90 crore paid in the previous year.

Orders Outstanding   55000 37600 46.28

Turnover   18738.95 14525.49 29.01

Value Added   7182.27 5682.80 26.39

Employee (Nos.)   42124 42601 -1.12

Profit Before Tax   3736.07 2564.35 45.69

Profit After Tax   2414.70 1679.16 43.80

Dividend   599.66 354.90 68.97

Dividend Tax   92.83 49.78 86.48

Retained Earnings   1722.21 1274.49 35.13

Total Assets   22362.54 17505.92 27.74

Net Worth   8788.26 7301.38 20.36

Total Borrowings   89.33 558.24 -84.00

Debt: Equity   0.01 0.08 -87.50

Per Share (in Rupees):       - Net worth   359.06 298.31 20.36

 - Earnings   98.66 68.60 43.80

Economic value added   1657 1079 53.51

(US $ in million)      Turnover   4344 3270 32.84

Profit Before Tax   866 577 50.01

Profit After Tax   560 378 48.15

Conversion Rates (Rate as on 31st March):1 US $ = Rs 43.14 for 2006-071 US $ = Rs 44.42 for 2005-06

Order Received

Order received during the year increased by 88.21% from Rs 18938 crore in 2005-06 to Rs 35643 crore in 2006-07.

(Rs.in crore) 2006-07 2005-06

Power Sector 27730 10862

Industry Sector 6010 4728

International Operations 1903 3348

Total Orders Booked 35643 18938

Order Book outstanding at the end of the year

55000 37600

Performance of Business Segments

Following are the significant orders for main equipment

COAL   (8925 MW)

Orders worth Rs 27730 crore were booked by the Power Sector for supply and installation of 9724 MW for supply of generating equipment and also for spares & services. This is the highest ever orders booked by Power Sector, in any financial year, in financial and physical terms.

     

      The above includes orders for supply & installation of 12 Nos of 500 MW sets and 12 Nos of 195/250 MW sets and orders worth Rs 3218 crore towards Spare & Services business, highest ever in any financial year, in financial and physical terms.

(a) Turnkey Orders:

• 2x500 MW Mejia Phase II of Damodar Valley Corporation (DVC)

• 1x250 MW Budge-Budge Unit-3 (Civil without Chimney & Switch Yard) of Calcutta Electricity Supply Co. (CESC)

• 1x250 MW Santaldih from West Bengal Power Development Corporation Ltd. (WBPDCL)

        (b) EPC Orders

           • 1x500 MW Bellary Unit 2 of Karnataka Power Corporation Ltd. (KPCL)

         (c) Power Plant Packages

         • 2x490 MW NCTPP Stage II, 1x500 MW Farakka Stage III and 2x500 MW Simhadri of National Thermal Power Corporation (NTPC)

         • 250 MW each New Parli & Paras Expansion (BTG with electricals) of Maharashtra State Power Generation Corporation Ltd. (MSPGCL).

          • 1x500 MW Khaperkheda Expansion & 2x500 MW Bhusawal Expansion BTG with electricals) of MSPGCL

          • 2x250 MW Paricha Expansion & 2x250 MW Harduaganj Expansion (Including Civil) of Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUN)

Hydro (799 MW excluding pump motor sets if 180 MW)

4x7.5 MW Koil Sagar St. I & II Pump-motor sets from IVRCL Infrastructure Ltd. for Irrigation Schemes of Andhra Pradesh Irrigation Deptt.

Plant Performance Improvement and Renovation & Modernisation Orders

Plant Performance Improvement (PPI) orders for uprating of 5 units of Obra of 200 MW to 216 Mw each, 2 units of Bhatinda TPS from 110 MW to 120 MW each, 5 units of Rihand HEP from 50 MW to 55 MW each were received during the year.

           Order for uprating of 5 units of Obra of 200 MW each to 216 MW was not only the largest Renovation & Modernisation (R&M) in the country but also the first order for uprating of 200 MW sets.

           Orders for Renovation & Modernisation (R&M) of 2x120 MW units at Gandhinagar TPS was also received during the year.

Special Facilities at HEEP, Haridwar

Over speeds Vacuum Balancing Tunnel (for Rotors up to 1300 MW unit size ST/TG)

Over speed Balancing installation for large TG rotors Micalastic Impregnation Plants Large size Turbo generator Test Bed Vacuum Pressure Impregnation (VPI) Plant Generator Research Institute Hydro Turbine Model Testing Laboratory World Class New Blade Shop

4x130 MW Parbati-III of National Hydro Power Corporation Ltd. (NHPC)

2x25 MW Nagarjunasagar TP Dam, 1x9MW Pochampad and 4x30 MW Pulichintala of APGENCO

3x33.3 MW UHL-III of Himachal Pradesh State Electricity Board (HPSEB)

(Other Hydro Orders: Pump Motor Sets for Irrigation Canal Lift System)

5x30 MW Kalwakurthy St. III Pump-Motor Sets from Gammon India

Manpower(as on 24.6.06)

ACHIEVEMENT

1. BHEL is one of the nine large Public Sector Undertakings known as navratnas or nine jewels.

2. The BHEL plants in Haridwar have earned the ISO - 9001 and 9002 certificates for its high quality and maintenance. BHEL have also earned the ISO - 14001 certificates.

3. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77.

4. Acquired certifications for Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001).

5. Installed equipment for over 90,000 MW of power generation. Supplied over 2,25,000 MVA transformer capacity and other equipment operating in Transmission & Distribution network up to 400 kV (AC & DC).

6. Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.

7. Supplied traction electrics and AC/DC locos to power over 12,000 km railway network.

8. Supplied over one million Valves to Power Plants and other Industries.

MAJOR MILESTONES OF THE UNIT

1962: Technical collaboration with Prommasho export, USSR for setting up HEEP.

1967: First product (Electric Motor) rolled out.

1969: Manufacturing of first 100MW Steam Turbine

1971: Manufacturing of first 100MW Turbo Generator

1974: Breakeven achieved. Technical collaboration withKWU (Siemens), Germany for coal based thermal sets

1976: First 200MW coal based Thermal Set commissioned

1983: First 500MW coal based Thermal Set commissioned

1989: Technical collaboration with KWU for Gas Turbine

1991: Collaboration with Oto-Melara, Italy signed for Defense Project

1993: Accreditation of ISO-9001- Quality System

2000: Accreditation of ISO-14001- EMS

2001: Technical collaboration with KWU for coal based Thermal sets up to 1000MW extended for 10 years

2002: Accreditation of OHSAS-18001

2004: New Blade Shop Established.

2005: Commendation for Significant achievement in CIIEXIM Bank Award with TQ Score 550-600

Major Orders Secured:

           • Traction electrics for 3-phase 6000 HP electric Locos.

           • 91 sets of traction electrics for EMU/MEMU.

           • Traction electrics for Diesel Electric Locos.

           • 17 nos. Shunting Locomotives.

           Industrial products business:

           — Industrial Products (Electrical)

           • All time high order for 1301 nos motors booked. This includes orders for HT motors from major Cement manufacturers like Grasim, JP, ACC, GACL etc and special large sized slow speed pressurized synchronous motors (3450kW/18P) for refineries.

           • New H Compact series energy efficient HT motors introduced. Orders for 25 nos procured and commercial production started by Bhopal.

           — Industrial Products (Mechanical)

           • Order for Recycle Gas compressor from Bharat Oman Refinery at Bina in Madhya Pradesh.

           • Order for BCL406B + ST Recycle gas compressor from IOCL Haldia, West Bengal through M/s Punj Lloyd.

           • All time high order-booking of Well Heads and X-Mas tree valves.

           Transmission Business:

           The major orders won against competition from national/international players are as follows:

           — secured order for +/- 500 KV 2500 MW Balia - Bhiwadi HVDC Project from POWERGRID.

          Following Orders received in the area of new indigenous technologies in Transmission:

           • First commercial Order for 145 kV GIS from APTRANSCO.

      

National Recognition to Employees

PRIME MINISTER’s SHRAM AWARDS

VISHWAKARMA RASHTRIYA PURSKAR

Six employees won Vishwakarma Rashtriya Puraskars on 17 Sept, 2005

15211110

Total2004200320022001Upto 2000

1396154123

Total2004200320022001Upto 2000

BHEL’s USP

Indo Asian produces a wide variety of electrical distribution and transmission equipment right from Heavy Duty Switch Boards and Panels used in power distribution network, a variety of wires for transmission of electricity, Circuit Protection Equipment including Moulded Case Circuit Breakers, MCBs and Distribution Boards etc to electronic controls.

           Apart from that Indo Asian manufactures whole range of lighting equipment including power efficient CFLs, PLLS and a variety of other power efficient lighting sources and luminaries for domestic, commercial and industrial applications.

           Indo Asian’s USPs are its offer of wide range of electrical switchgears & control equipment for perfect reliability, Lighting products for maximum power conservation and their easy availability/access all over India.

OBJECTIVE OF NEW DEVELOPMENTS

• MORE EFFICIENT AND RELIABLE PRODUCT• REDUCED EQUIPMENT & INSTALLATION COST• SHORTER DELIVERY & COMMISSIONING TIME• HIGHER AVAILABILITY• INDIGENISATION• MEET SPECIFIC CUSTOMER REQUIREMENT• RENOVATION / MODERNIZATION / UPRATING OF OLDER

SETS• NEW RATING SETS WITH STATE OF ART TECHNOLOGY

SOCIAL WELFARE

BHEL has also been indulging in some social & welfare activities. In Haridwar it has made some buildings & institutions for the welfare of people whose expense is itself beard by BHEL. Some of the activities are-

1) 180 Bedded Hospital2) 8 Dispensaries & 1 Charitable Dispensary3) 9 Ladies Welfare Central4) 5 adopted villages5) 18 School & Colleges including Bal Bhawan6) 2 Sports Complex (Stadium & Khel Bhawan)7) 2 Barat Ghar8) 4 Club & Community Centers9) 6186 Residential houses

Some other welfare activities are-

1) Rainwater harvesting for conservation of underground water.2) Has planted near about 50,000 trees.3) Organize literacy camp for contract labors.

Recent Achievement

Bharat Heavy Electricals Limited has outbid French equipment maker Alstom by winning a Rs 2,200-crore turnkey contract for setting up a Combined Cycle Power Plant in Tripura. The order for supply & commissioning of two fuel efficient gas turbine has been placed by ONGC Tripura Power Company Ltd (OTPCL), a joint venture of ONGC, IL&FS and the Government of Tripura.

Finance Section

There are total 12 sections in the finance department:-

1) Book Section & Budget2) Sales3) Cost4) System Group5) Store Bills6) Foreign Payment7) Cash Section8) Payroll Section9) Administration10) Stock Verification11) PSL (Price, Stored, Ledger)12) Purchase Finance

There are total 60 executives & about 55 non-executives (Accountants).

Details of various sections of finance in BHEL-

1) Book Section- This section prepares all the books/records of the company i.e. records of the company and reports to the corporate office various information from time to time as required by them relating to the budget etc. The main function of this section is to keep update records of the company.

2) Sales Section- All sales are recorded by this section. This section prepares the invoices of all the sales made to various customers and records the turnover. It prepares all MIRs related to turnover and provided to corporate office.

3) Cost Section- This section computes the cost of the products manufactured by the company and provides the information to the management so that they can take decision regarding the price policy etc.

4) System Group- This section prepares programs prepared by various departments of finance so that MIRs and other important information can be generated and produced properly.

5) Stores Bill- All payment of purchases is done by this section. After scrutinizing the bill of vendors properly payment is made to the vendors.

6) Foreign Payment- All payments of purchases related to foreign vendors are made by this section. All LCs are also dealt by this section.

7) Cash Section- All payments are made by this section e.g. salary payment, advances and any other expanses. All vouchers are send by various sections to cash section and on that basis cash section made the payments.

8) Payroll Section- All functions related to personnel payments are dealt by this section e.g. salary processing, TA/DA advances, miscellaneous payments etc. All recoveries from employees also made by payroll section regarding various facilities provided to employees e.g. Rent, Electricity, Water, Qtr etc.

9) Administration Section- All works relating to administration is done by this section.

10) Stock Verification- Total physical verification of stock is done by this section. They do the verification and reports to the management.

11) Store Finance- All purchases concurrence are done by this section. This section is also called purchase finance.

Pay Roll Department

Pay roll department includes many sections. Following are the name of various sections in pay roll:-

1. Salary Section2. Establishment Section3. TA Section4. Medical Reimbursement 5. Miscellaneous Section6. Final Payment( Retired employees)7. Revenue Section8. PF Section( Temporary & Permanent PF loan)9. Family Pension

Tour Allowance

Procedure

• First of all, an advanced application was received from the applier and all the calculations were there by made as per above notifications.

• Then Advanced sum was paid and a receipt was taken from the applier.

• In the other case of Medical and others, claim is received and they are checked as per there entitlement and are recovered through supplementary salary.

CONCLUSION

The Transparency of the BHEL Employees was tested during this experience and it also helped to recognize the Procedural ways through which the Benefits of the Govt. Employees are disbursed through various methods in various cases.

The procedural encomplishments were learnt and understood completetly and thus it was entertained with the purpose of looking into the financial Implications on the BHEL by the Tour allowances.