SECURITY ANALYSIS AND PORTFOLIO MANAGEMENTIn STOCK MARKET:FINANCIAL STATEMENT ANALYSIS OF BHARAT HEAVY ELECTRONIC LIMITED AND SUN PHARMACEUTICALS INDUSTRIES LIMITED

Assignment ReportSubmitted to Punjabi University in Partial fulfillment of the requirements for the degree ofMASTER OF BUSSINESS ADMINISTRATION4rd Semester

SUBMITTED TO : SUBMITTED By: Dr. APAR SINGH SHUBHAM GOYAL ROLL NUMBER 120426194

SCHOOL OF MANAGEMENT STUDIES, PU2012-2014

ACKNOWLEDGEMENT

Behind this successful undertaking is the blessing and guidance of many. This formal piece of acknowledgement may not be sufficient to express my feelings of gratitude and deep respect that have experienced during my learning process. This Endeavour would not have been successful without the help and encouragement of lot of people with whom I had good fortunate of interacting during course of journey.

I am indebted to DR. APAR SINGH for the knowledge and experience that I have gained from him during course which I can easily look at my most rewarding phase the course of my study.

Without his immaculate guidance, sustained efforts and friendly approach, it would have been difficult to achieve result in short span of period.

Shubham GoyalDATE:- FEBURARY 2nd - 2014

TABLE OF CONTENT

CHAPTERCONTENTPAGE No.

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3.

4.

INTRODUCTION

FINANCIAL STATEMENT ANALYSIS: BHELA. EXECUTIVE SUMMARY B. HORIZONTAL ANALYSIS C. VERTICAL ANALYSIS D. RATIO ANALYSIS E. CONCLUSIONS/RECOMMENDATIONSF. PUBLIC PERCEPTION AND RECENT RESULTS

FINANCIAL STATEMENT ANALYSIS: SUN PHARMAA. EXECUTIVE SUMMARY B. HORIZONTAL ANALYSIS C. VERTICAL ANALYSIS D. RATIO ANALYSIS E. CONCLUSIONS/RECOMMENDATIONSF. PUBLIC PERCEPTION AND RECENT RESULTS

BIBLIOGRAPHY/REFERENCES

4

FINANCIAL STATEMENT ANALYSIS: BHEL

SECTION 1EXECUTIVE SUMMARY

OFFICIAL NAME OF THE CORPORATION - Bharat Heavy Electricals limited

LOCATION OF THE CORPORATE HEADQUARTERS - BHEL House, Siri Fort, New Delhi - 110049, India.

HAVING 16 MANUFACTURING DIVISIONS, TWO REPAIR UNITS, FOUR REGIONAL OFFICES, EIGHT SERVICE CENTRES AND 15 REGIONAL CENTRES AND CURRENTLY OPERATE AT MORE THAN 150 PROJECT SITES ACROSS INDIA AND ABROAD.

COMPANY INTERNET ADDRESS - www.bhel.com

STOCK SYMBOL OF THE CORPORATION AND THE EXCHANGE ON WHICH IT IS TRADED

DATE OF THE 10-K FILING ACCORDING TO THE FINANCIAL STATEMENTS PROVIDED 30TH NOVEMBER.

THE COMPANYS INDEPENDENT ACCOUNTANT/AUDITOR J.C. BHALLA & CO. (CHARTED ACCOUNTANTS)

THE PRIMARY PRODUCTS(S) AND/OR SERVICES (S) OF THE CORPORATION - ENGAGED IN THE DESIGN, ENGINEERING, MANUFACTURE, CONSTRUCTION, TESTING, COMMISSIONING AND SERVICING OF A WIDE RANGE OF PRODUCTS AND SERVICES FOR THE CORE SECTORS OF THE ECONOMY, VIZ. POWER, TRANSMISSION, INDUSTRY, TRANSPORTATION (RAILWAY), RENEWABLE ENERGY, OIL & GAS AND DEFENCE.SECTION 2HORIZONTAL ANALYSIS

2004-05 2012-13 Revenue Gross Profit Net Income Income from Continuing Operations Net Cash from Operating Activities Assets What Company is experiencing the most growth? Where is the growth coming from? Graph your results in order to demonstrate the trend.

SECTION 3VERTICAL ANALYSIS (COMMON-SIZE ANALYSIS) Current Year100%

Revenue COGS Operating Expense Interest Expense Income Tax Expense Net Income

Current Year

Current AssetsProperty, Plant and EquipmentAll Other Assets

TOTAL ASSETS 100%Current LiabilitiesTotal LiabilitiesStockholders Equity

CONCLUSIONS:-

SECTION 4RATIO ANALYSIS

Liquidity Solvency or Financial Strength Activity or Efficiency Profitability Market or Valuation

Category: Short-Term Liquidity

Ratio 2012-13 2004-05Current Ratio 1.1 1.4

What is the relative position of each of the corporations? What is being measured? What does it mean? At the end of each category/section, comment on: As a category, what is being measured? Who are the users of this information? Which company is in the best overall position?

SECTION 5CONCLUSIONS/RECOMMENDATIONS

Draw conclusions from the data that was gathered in Sections 2 - 4, and determine the relevant position of each of the corporations in all of the analyses. The conclusions/recommendations must address the following as a comparison between the two Annual Reports. The thoughtfulness of the analysis will be the most important factor in the evaluation of this section. 1. What are the overall strengths and weaknesses of each corporation? 2. What recommendation would you make to current and potential private or organizational investors in the two corporations? 3. What recommendation would you make to lenders regarding the credit-worthiness of the corporations? 4. Position, salary and benefits being equal, which company would you prefer to work for?

FINANCIAL STATEMENT ANALYSIS: SUN PHARMA

SECTION 1EXECUTIVE SUMMARY

OFFICIAL NAME OF THE CORPORATION Sun Pharmaceutical Industries Ltd.

LOCATION OF THE CORPORATE HEADQUARTERS - VAPI, GUJARAT

SUN PHARMA WAS ESTABLISHED WITH FIVE PSYCHIATRY PRODUCTS AND A TWO PERSON MARKETING TEAM. A COMPACT MANUFACTURING FACILITY FOR TABLETS AND CAPSULES WAS SET UP AT VAPI, GUJARAT

COMPANY INTERNET ADDRESS - www.sunpharma.com

DATE OF THE 10-K FILING ACCORDING TO THE FINANCIAL STATEMENTS PROVIDED 30TH NOVEMBER.

THE COMPANYS INDEPENDENT ACCOUNTANT/AUDITOR J

THE PRIMARY PRODUCTS(S) AND/OR SERVICES (S) OF THE CORPORATION - SUN PHARMA IS THE LARGEST SPECIALTY PHARMACEUTICAL COMPANY IN INDIA WITH ESTABLISHED BRANDS ACROSS NICHE THERAPIES SUCH AS PSYCHIATRY, NEUROLOGY, CARDIOLOGY, NEPHROLOGY, GASTROENTEROLOGY, ORTHOPEDICS AND OPHTHALMOLOGY.

SECTION 2HORIZONTAL ANALYSIS

Revenue Gross Profit Net Income Income from Continuing Operations Net Cash from Operating Activities Assets Which Company is experiencing the most growth? Where is the growth coming from? Graph your results in order to demonstrate the trend.

SECTION 3VERTICAL ANALYSIS (COMMON-SIZE ANALYSIS) Current Year100%

Revenue COGS Operating Expense Interest Expense Income Tax Expense Net Income

Current Year

Current AssetsProperty, Plant and EquipmentAll Other Assets

TOTAL ASSETS 100%Current LiabilitiesTotal LiabilitiesStockholders Equity

CONCLUSIONS:-

SECTION 4RATIO ANALYSIS

Liquidity Solvency or Financial Strength Activity or Efficiency Profitability Market or Valuation

Category: Short-Term Liquidity

Ratio 2012-13 2004-05Current Ratio 1.1 1.4

What is the relative position of each of the corporations? What is being measured? What does it mean? At the end of each category/section, comment on: As a category, what is being measured? Who are the users of this information? Which company is in the best overall position?

SECTION 5CONCLUSIONS/RECOMMENDATIONS

Draw conclusions from the data that was gathered in Sections 2 - 4, and determine the relevant position of each of the corporations in all of the analyses. The conclusions/recommendations must address the following as a comparison between the two Annual Reports. The thoughtfulness of the analysis will be the most important factor in the evaluation of this section. 1. What are the overall strengths and weaknesses of each corporation? 2. What recommendation would you make to current and potential private or organizational investors in the two corporations? 3. What recommendation would you make to lenders regarding the credit-worthiness of the corporations? 4. Position, salary and benefits being equal, which company would you prefer to work for?