Maximizing Returns on PF Investments at BHEL

MAXIMISING RETURNS ON
PROVIDENT FUND
INVESTMENTS
(Winter internship report)

SUBMITTED BY:
GAURAV GUPTA
MBA (DEPT. OF MANAGEMENT STUDIES,IIT ROORKEE)
EMAIL : im.guptagaurav@gmail.com
 Maximizing Returns on PF Investments at BHEL

ACKNOWLEDGEMENT

I wish to express my heart full gratitude to Mrs. Anita Bahri

(DGM Finance) for allowing me to take my summer training at
BHEL and Mr. Chaten Mehar (Deputy Manager Finance) for
being always readily available for all sorts of guidance, under
whose guidance I undertook this project, for extending his advice
and direction that is required to carry on a study of this nature, and
for helping me with the intricate details of the project at every step.
Their continued cooperation and encouragement have made it
possible for me to complete this report. They encouraged and
challenged me to throughout my winter process, never accepting
less than my best efforts.

I would like to thank all the other people at BHEL who always
helped me in the completion of my project. I would also wish to
thank my peers at DOMS, IIT ROORKEE for their constant
motivation and spontaneous help.

Gaurav Gupta
MBA, Roll No: 9810023
DOMS, IIT ROORKEE
 Maximizing Returns on PF Investments at BHEL

TABLE OF CONTENTS

• ACKNOWLEDGEMENT

• EXECUTIVE SUMMARY

• INTRODUCTION

• INVESTMENT POLICY

• STUDY BACKGROUND

• SIGNIFICANCE OF STUDY

• STUDY METHODOLOGY

• ABOUT BHEL

• OBSERVATIONS

EXECUTIVE SUMMARY
 Maximizing Returns on PF Investments at BHEL

The main focus of this report is to highlight the relative importance

of YTM analysis in investment decisions. The project required to
analyze the investments for FY 2009-10 and try to analyze any
kind o trend between YTM and different securities. The trends
analyzed were highlighting the fact that YTM for PSU bonds was
much higher as compared to central and State Govt. Securities.
Thus it was advised to invest in PSU Bonds for the first three
quarters of the year and investment in central and state securities
only at the end of the year for short duration to maximize returns.
Also provident fund as of now are not allowed to trade and are
required to maintain the investments till their maturity. This
restricts from resorting to any sophisticated active portfolio
management.
After having gone through the entire training and provident fund
management process at BHEL. It was observed that the most
crucial apart of the entire process was to take the right decision
related to investments. Unless the right investment is done in terms
of the YTM, tenure and type of security the portfolio cannot result
in optimum returns.
There has to be an investment strategy to in order to get a realistic
return on investment. Also an investment advisor is needed to help
monitor the investments and guide through new opportunities. And
in times of volatility and uncertainty in the market, maintain the
long-term perspective and keep investment plan on the right track.
The report details about BHEL Provident Fund Investment Trust.
The major objectives of the summer project wre to develop an
analytical tool through which following broad results could be
obtained:
• Minimum rate of 8.5% return has to be achieved.
• Out of the provident fund only 5% has to be retained for
emergency and rest has to be invested.
• Every month investments are done after the analysis.
• Yield to maturity is calculated at then end of the year.
 Maximizing Returns on PF Investments at BHEL

• Calculation of fund is done after taking in consideration the

following factors:
1. Monthly PF contribution detail
2. Monthly loan deduction details
3. Withdrawal details
4. Retirement employee list- as on month
5. Final settlement sheet
• Investment would follow a pattern as prescribed by Ministry
of labour. According to which central government securities
and mutual funds would attract 25% of the funds of an EPF,
whereas government securities would attract 15% of the
funds and securities of public financial institutions would
attract 30% of the funds. The rest residual category (one of
the three categories mentioned above) would attract 30%
percent of the funds.

And the procedure followed for investment is :

• Monthly analysis of various factors is done to calculate the
amount of funds.
• Quotes are requested for various securities matching the
requirements.
• YTM is calculated for every security.
• Comparative analysis is done to choose on the best option.
• Final decision is taken by the committee consisting of any of
them- Trustee, Chairperson and secretary.
 Maximizing Returns on PF Investments at BHEL

1. INTRODUCTION

The question of making some provision for the future of the industrial
worker after he retires or for his dependents in case of his early death
engaged the attention of Government of India soon after independence. The
ideal way would have been provisions through old age and survivors
pensions as has been done in the industrially advanced countries. But in the
prevailing conditions in India, the institution of a pension scheme could not
be visualized in the near future another alternative was of provision of
gratutities after a prescribed period of service. But the gratuity scheme was
considered to be inadequate as the amount paid to a worker or his
dependents would be small. As the worker would no himself be making any
contribution to the fund. Taking into account the various difficulties,
financial and administrative, the most appropriate course appeared to be the
institution of contributory provident funds, compulsorily envisaging
contributions from both the worker and the employers. Instead of pension in
case of disability or for survivots, the government of India introduced
Contributory Provident Fund Schemes for different sections of the
employees.

In India, there are two types of provident funds, namely:

 Non-contributory Provident Fund
 Contributory Provident Fund

1.) Non-contributory Provident Fund

Non-contributory provident funds are employees own savings

mandatory provident fund schemes. These are more commonly
known as GENERAL PROVIDENT FUND and are generally meant
for central and state government employees. Contributions to these
fundsa are made solely by employees. These general provident funds
are governed by the GPF ACT,1925 and GPF RULES(Central
Services) Rules,1960.
 Maximizing Returns on PF Investments at BHEL

2.) Contributory Provident Fund

The contributory provident funds are applicable to industrial workers

not working in Government sector. The employers as well as
employees essentially contribute to these funds and the accumulation
with interest is paid back on exit from service or death.

Provident Funds have proved to vehicle of social protection on one hand an

effective instrument of savings for the country on the other. The effect fo
Provident Fund schemes on savings is very high importance in our country.
The provident fund scheme are also a means of mobilizing savings and an
internal source of resource for development purposes. As may be seen from
the extract of the Budgetary Transaction of the cental and state governments
and union territories.
 Maximizing Returns on PF Investments at BHEL

INVESTMENT POLICY OF PROVIDENT FUND AND ITS

FINANCIAL IMPACT

The investment of the Provident Funds and Pension Funds are made on the
pattern prescribed by the Government of India from time to time. In the
beginning of these schemes, major part of investible funds were required to
be invested in securities issued by state/central Government or in the
securities payment of principle and interest was guaranteed by the
central/state governments. Upto 1969/70, entire investment in respect of
Employees Provident Fund was required to be made in central and state
government securities only. However, since then the government has been
revising the investment pattern so as to reduce the investment of provident
fund accumulations in government securities were the yield is comparatively
less. At the same time, investment in special deposit scheme,
bonds/securities of public sector financial institutions and public sector
banks were also prescribed which generally carried higher rates of return.

Recently, the pattern has been further liberalized envisaging investment of a

small percentage in bonds/securities in the private sector as well. The
investment policy of the Provident Funds has a significant impact on the
quantity of benefits to the members. A question is generally raised whether
Provident Fund and Pension Schemes operated by Employees Provident
Fund are managed by professionals. One has to strike a balance between
security and profitability. Profitability could be ensured if investment made
in private sector but the more important principles of safety, security, social
and economic utility have also to be given due consideration.

Finally, when safety, yield and liquidity have been taken into consideration,
social security funds should, to the extent possible, be invested in order to
improve the overall quality of life. Investments in the health and education
infrastructure and in enterprises which create employment opportunities are
in this category. One important principle, however, in that the funds should
be invested only through financial intermediaries, so that the attention of the
management of the social security scheme is not diverted from its primary
concern of ensuring the efficient operation of the scheme.
 Maximizing Returns on PF Investments at BHEL

2. STUDY BACKGROUND

2.1 OBJECTIVE & SCOPE OF THE STUDY

PRIMARY OBJECTIVE

The broad objective of this project is to study how to maximize the returns
of Provident Fund Investment Trust at BHEL.

SECONDARY OBJECTIVE

In order to fulfill this objective the following complementary objectives

formed part of the project.

• Understanding of complete process of Provident Fund Investment

Trust.
• Studying the investment guidelines by Ministry of Labor.
• Analyzing the investment pattern for last three financial years.
• Analyzing the relation between YTM and different investment.

Along with the above objectives, some of the underlying objectives to do the
research are as follows:

• To gain a theoretical experience in one of the most debated topics in

academic as well as professional circles.
• To analyze the practical implication of the theoretical aspects learnt
during the MBA program.
• To gain practical knowledge of the Provident Fund activities in India.
 Maximizing Returns on PF Investments at BHEL

2.2 SIGNIFICANCE OF THE STUDY

Upon significance research it was found that, some of the inherent

shortcomings of these schemes are:
• Exposure to inflation leading to erosion of benefits.
• Exposure to recession and poverty affecting capacity of workers to
pay the contribution.
• Absence of provision for long term protection on regular basis.

However, the analytical study of different provident fund schemes reveals a

notable feature that the provident funds continue to occupy a place of
eminence in national context, in view of the following:
• Promotes the idea of self-help.
• Inculcates habit of regular savings.
• Provides a feeling of ownership.
• Simplicity and ease in administration.
• Financial participation from government not essential.
• Provides social security to members and family.

The nature and role of provident funds is, however, undergoing a change:
transformation from one that is primarily focused on providing financial
savings for meeting future needs, to the one that is concentrating on the
improvement of the well being and quality of life of its members. These
schemes are becoming increasingly relevant in developing countries today
as a result of transformation/diversification into social security schemes
like- pension schemes, provision for insurance cover against accidents,
disabilities and similar other benefits.

This report tries to find the best case scenario (best return scenario) in
the context of changing investment portfolio of employees provident
fund at BHEL based on two guidelines: Ministry of Labour Guidelines
and Ministry of Finance Guidelines. Finally, the report concludes with
some suggestions which if implemented could lead to better return’s in
the future.
 Maximizing Returns on PF Investments at BHEL

2.3 CONTRIBUTION OF THE STUDY AND FOR WHOM

This study is positioned to offer a comprehensive overview of the provident

fund practices in India. As an overview, it focuses on the resulting effects of
the various economic and market forces shaping its future. The study will be
of critical interest particularly to the provident fund departments and fund
managers at various public sector enterprises to help them get a perspective
into changing dynamics of provident management practices.

2.4 LIMITATIONS
In the course of the analysis, a number of hindrances and problem had
aroused. The limitations have been summarized below:
• Skeptical attitude of the managers to share their information
• Lack of know how from where to extract the proper data.
• At many times simplistic assumptions had to be made.

3. STUDY METHODOLOGY
 Maximizing Returns on PF Investments at BHEL

3.1 STUDY APPROACH

After getting equipped with enough background information, the much
needed first hand information was gathered, which laid foundation for
the sudy. The study was based on exploratory, descriptive, quantitative
and qualitative research.

3.1.1 EXPORATORY RESEARCH

The preliminary study was conducted on the background of the existing
secondary research materials published on provident fund management
in Indian perspective. Further, a study was carried out with the help of a
unstructured in-depth interview with the DM-Finance, BHEL. The study
gave an understanding of the evolving provident fund management
practices. Information collected through this method was qualitative in
nature. The exploratory research was conducted to achieve the following:
• To understand the existing literature on provident fund
management.
• To get acquainted with the various functional aspects of Provident
Fund department within an institution.
• To get familiar with the new developments in Provident Fund field
in India.

3.1.2 QUANTITATIVE RESEARCH

The exploratory research was followed by the quantitavie research with a
view to further analyze provident fund practices and to give a stronger base
to the research. This was a structured approach and included the quantitative
details about the provident fund management with in BHEL, written policy,
what kind of approach they used in making investments, etc. this served as
the analysis for the whole research.
After collecting the required information from the exploratory research, a
quantitative analysis was done. The quantitative research was directed
towards analyzing the existing provident fund management within BHEL.
Quantitative Research was mainly conducted using MS-Excel. The raw data
was entered and coded. The coded data was then entered into the computer
and charts were generated for graphical representation of the data. For the
purpose of graphs (Bar Chart, Pie Chart, Trend Analysis) Microsoft Excel
has been used.
Maximizing Returns on PF Investments at BHEL

ABOUT
BHEL
 Maximizing Returns on PF Investments at BHEL

BHEL is the largest engineering and manufacturing enterprise in India in the energy-
related/infrastructure sector, today. BHEL was established more than 40 years ago,
ushering in the indigenous Heavy Electrical Equipment industry in India - a dream
that has been more than realized with a well-recognized track record of
performance. The company has been earning profits continuously since 1971-72 and
paying dividends since 1976-77.

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 centres, over 100
project sites, eight service centres 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 centres.

BHEL has acquired certifications to Quality Management Systems (ISO 9001),

Environmental Management Systems (ISO 14001) and Occupational Health & Safety
Management Systems (OHSAS 18001) and is also well on its journey towards Total
Quality Management.

BHEL has
Installed equipment for over 90,000 MW of power generation -- for Utilities, Captive
and Industrial users.
Supplied over 2,25,000 MVA transformer capacity and other equipment operating in
Transmission & Distribution network up to 400 kV (AC & DC).
Supplied over 25,000 Motors with Drive Control System to Power projects,
Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.
Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway
network.
Supplied over one million Valves to Power Plants and other Industries.

BHEL's operations are organised around three business sectors, namely Power,
Industry - including Transmission, Transportation, Telecommunication & Renewable
Energy - and Overseas Business. This enables BHEL to have a strong customer
orientation, to be sensitive to his needs and respond quickly to the changes in the
market.

BHEL's vision is to become a world-class engineering enterprise, committed to

enhancing stakeholder value. The company is striving to give shape to its aspirations
and fulfill the expectations of the country to become a global player.

The greatest strength of BHEL is its highly skilled and committed 42,600 employees.
Every employee is given an equal opportunity to develop himself and grow in his
career. Continuous training and retraining, career planning, a positive work culture
and participative style of management � all these have engendered development of
a committed and motivated workforce setting new benchmarks in terms of
 Maximizing Returns on PF Investments at BHEL

productivity, quality and responsiveness.

Established in the late 50’s, Bharat Heavy Electricals Limited (BHEL) is, today, a
name to reckon with in the industrial world. It is the largest engineering and
manufacturing enterprise of its kind in India and one of the leading international
companies in the power field. 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. A
wide-spread network comprising 14 manufacturing divisions, 8 service centres, 4
power sector regional centres, 18 regional offices, besides a large number of project
sites spread all over India and abroad, enables BHEL to be close to its customers and
cater to their specialised needs with total solutions - efficiently and economically. An
ISO 9000 certification has given the company international recognition for its
commitment towards quality. With an export presence in more than 60 countries,
BHEL is truly India’s industrial ambassador to the world.

PRODUCT RANGE

THERMAL POWER PLANTS

Steam turbines and generators of up to 500MW capacity for utility and combined-
cycle applications; capability to manufacture steam turbines with super critical
steam cycle parameters and matching generator up to 1000 MW unit size.
Steam turbines for CPP applications; capability to manufacture condensing,
extraction, back pressure, injection or any combination of these types.

GAS BASED POWER PLANTS

Gas turbines of up to 260MW (ISO) rating.

Gas turbine based co-generation and combined-cycle systems for industry and utility
applications.

HYDRO POWER PLANTS

Custom-built conventional hydro turbines of Kaplan, Francis and Pelton types with
matching generators, pump turbines with matching motor-generators.
Mini/micro hydro sets.
Spherical, butterfly and rotary valves and auxiliaries for hydro station

DG POWER PLANTS

HSD, LDO, FO, LSHS, natural-gas/biogas based diesel power plants, unit rating up
to 20MW and voltage up to 11kV, for emergency, peaking as well as base load
operations on turnkey basis.

INDUSTRIAL SETS

Industrial turbo-sets of ratings from 1.5 to 120MW.

Gas turbines land matching generators ranging from 3 to 260MW (ISO) rating.
Industrial stream turbines and gas turbines for drive applications and co-generation
 Maximizing Returns on PF Investments at BHEL

applications.

BOILERS

Steam generators for utilities, ranging from 30 to 500MW capacity, using coal,
lignite, oil, natural gas or a combination of these fuels: capability to manufacture
boilers with super critical parameters up to 1000 MW unit size.
Steam generators for industrial applications, ranging from 40 to 450t/hour capacity
using coal, natural gas, industrial gases, biomass, lignite, oil, bagasse 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 boilers.
Chemical recovery boilers for paper industry, ranging from capacity of 100 to 1000
t/day of dry solids.
Pressure vessels.

BOILER AUXILIARIES

Fan
Axial reaction fans of single stage and double stage for clean air application, with
capacity ranging from 25 to 800m3/s and pressure ranging from 120 to 1,480 m
of gas column.
Axial impulse fans for both clean air and flue gas applications, with capacity
ranging from 7 to 600m3/s and pressure up to 700 m of gas column.
Single and double-suction radial fans for clean air and dust-laden hot gases
applications up to 400oC, with capacity ranging from 4 to 600m3/s and pressure
ranging from 150 to 1,800 m of gas column.
Air-Pre-heaters
Ljungstrom rotary regenerative air-pre-heaters for boiler and process furnaces.
Large regenerative air-preheaters for utilities of capacity up to 1000 MW.
Gravimetric Feeders
Pulverizes
Bowl mills of slow and medium speed of capacity up to 100 t/hour.
Tube mills for pulverizing low-grade coal with high-ash content.
Pulse Jet and Reverse Air Type Fabric Filters (Bag Filters)
Electrostatic Precipitators
Electrostatic precipitators of any capacity with efficiency up to 99.9% for utility and
industrial applications.
Mechanical Separators
Soot Blowers
Long retractable soot blowers (travel up to 12.2m), wall deslaggers, rotary
blowers and temperature probes and related control panels operating on
pneumatic, electric or manual mode.
Swivel arm type soot blowers for regenerative air-preheaters.
Valves
 Maximizing Returns on PF Investments at BHEL

High-pressure and low-pressure bypass valves for utilities.

High and medium-pressure valves, cast and forged steel valves of gate, globe,
non-return (swing-check and piston lift-check) types for steam, oil and gas duties
up to 600 mm diameter, 250 kg/cm2 pressure and 540oC temperature.
High-capacity safety valves and automatic electrical operated pressure relief
valves for set pressure up to 200 kg/cm2 and temperature up to 550oC.
Safety relief valves for applications in power, process and other industries for set
pressure up to 175 kg/cm2 and temperature up to 565oC.
Piping Systems, Constant Load Hangers, Clamp and Hanger components, variable
Spring hangers for power stations upto 850 MW capacities, combined cycle plants,
industrial boilers and process industries.

HEAT EXCHANGERS AND PRESSURE VESSELS

CS/AS/SS/Nonferrous shell and tube heat exchangers and pressure vessels.

Air-cooled heat exchangers.
Surface condensers.
Steam jet air ejectors.
Columns.
Reactors, drums.
LPG/propane storage bullets.
LPG/propane store mounded vessels.
Feed water heaters.

PUMPS

Pumps for various applications to suit utilities up to a capacity of 660 MW.

Boiler feed pumps (motor or steam turbine driven).
Boiler feed booster pumps.
Condensate pumps.
Circulating water pumps.
Emergency oil pumps.
Lubricating oil pumps.
Standby oil pumps.

POWER STATION CONTROL EQUIPMENT

Microprocessor-based distributed digital control systems.

Data acquisition systems.
Man-machine interface.
Sub-station controls with SCADA.
Static excitation equipment/automatic voltage regulator.
Electro-hydraulic governor control.
Turbine supervisory system and control.
Furnace safeguard supervisory systems.
Controls for electrostatic precipitators.
Controls for HP/LP bypass valves.

SWITCHGEARS

Switchgear of the various types for indoor and outdoor applications and voltage
 Maximizing Returns on PF Investments at BHEL

ratings up to 400 kV.

Minimum oil circuit breakers (66K – 132kV).
SF6 circuit breakers (132 kV – 400 kV).
Vacuum circuit breakers (3.3 kV – 33 kV).
Gas insulated switchgears (36 kV).

BUS DUCTS

Bus-ducts with associated equipment to suit generator power output of utilities of up

to 500 MW capacity.

TRANSFORMERS

Power transformers for voltage up to 400 kV.

HVDC transformers and reactors up to + 500 kV rating.
Series and shunt reactors of up to 400 kV rating.
Instrument transformers:
Current transformers up to 400 kV.
Electro-magnetic voltage transformers up to 220 kV.
Capacitor voltage transformers up to 400 kV.
Cast resin dry type transformers up to 10 MVA 33 kV.
Special transformers: earthing; furnace; rectifier; electrostatic precipitator; freight
loco and AC EMU and traction transformers.

INSULATORS

High-tension ceramic insulators.

Disc/suspension insulators for AC/DC applications, ranging from 45 to 400 kn

electro-mechanical strength, for clean and pollute atmospheres.
Pin insulators of up to 33 kV.
Post insulators suitable for applications of up to 6 units.
Hollow porcelains of up to 400 kV.
Solid core insulators of 25 kV rating (both porcelain and hybrid) for railways.
Disc insulators for 800 kV AC and HVDC transmission lines (BHEL is the first Indian
manufacturer to supply such insulators).

CAPACITORS

Power capacitors for industrial and power systems of up to 250 kVAr rating for
application up to 400 kV.
Coupling/CVT capacitors for voltages up to 400 kV.
Low Tension Thyristor Switched Capacitors (LTTSC) for dynamic power factor
correction

ENERGY METERS

Single Phase, Poly Phase and Special-purpose electro-mechanical and electrical

meters.
 Maximizing Returns on PF Investments at BHEL

INDUSTRIAL ELECTRICAL MACHINES

AC squirrel cage, slipring, synchronous motors, industrial alternators and DC

machines are manufactured as per range summarized below. Special-purpose
machines are manufactured on request.

AC Machines for Safe Area Application

Induction Motors
Squirrel cage 150 to 35000 kW
Synchronous motors 200 to 15000 kW
Variable-Frequency
500 to 17500 kW
drives
Synchronous motors 1000 to 17500 kW
Induction motors 200 to 35000 kW
AC Machines for Hazardous Area Application
Flame-proof motors (Ex.
150 to 1600 kW
'D')
Pressurised (Ex 'P') 150 kW and above
Non-sparking (Ex. 'N') Variable Speed
Non-sparking (Ex. 'N')
Synchronous and Squirrel
Increased safety (Ex 'E')
Cage
DC Machines
Mill Duty 3.5 to 186 kW
Medium/Large 100 to 12000 kW
Industrial Alternators
Steam turbine, gas turbine and diesel engine driven from
2000 kVA to 60,000 kVA..
Voltage & Enclosure
Voltage AC - 415 V to 13800 V
Enclosure SPDP, CACW, CACA

COMPRESSORS

Centrifugal compressors of varying sizes, driven by steam turbine/gas

turbine/motor, for industrial applications handling almost all types of gases; range
covers pressure up to 800 kg/cm2 and capacity up to 350,000 Nm3/hour.

CONTROL GEAR

Industrial Control gear

Control panels and cubicles for applications in steel, aluminum, cement, paper,
rubber, mining, sugar and petrochemical industries.
Liquid rotor starters for slipring induction motors of up to 2500 hp rating.
Liquid regulators for variable-speed motors.
Contractors
LT air break type AC for voltages up to 660 V.
LT air break type DC contactors for voltages up to 600 V.
HT vacuum type AC for voltages up to 11 kV.
Traction Control gear
Control gear equipment for railways and other traction applications.
 Maximizing Returns on PF Investments at BHEL

Control and Relay Panels

Control panels for voltages up to 400 kV and control desks for generating stations
and EHV sub-stations.
Control and relay boards.
Turbine gauge boards for thermal, gas, hydro and nuclear sets.
Turbine electrical control cubicles.
Outdoor-type control panels and marshalling kiosks, swinging type synchronizing
panel and mobile synchronizing trolley.
Transformer tap changer panels.

SILICON RECTIFIERS

Silicon power rectifiers with matching transformers for industrial applications like
aluminum/copper/zinc smelting, for electrolysis in chemical industry and AC/DC
traction application.

THYRISTOR EQUIPMENT

Thyristor converter equipment.

Thyristor inverter equipment.
Static AC variable-speed drive systems.
Thyristor valves for HVDC transmission up to 500 kV.

POWER DEVICES

High power capacity silicon diodes, thyristor power devices and solar photovoltaic
cells.

TRANSPORTATION EQUIPMENT

AC Electric locomotive
AC-DC Dual Voltage Electric locomotive.
Diesel-Electric Shunting locomotive
Diesel Hydraulic Shunting locomotive
OHE Recording cum Test Car.
Electric Traction Equipment (for diesel/electric locos electric multiple units, diesel
multiple units and urban transportation systems).
Traction motors.
Transformers smoothing reactors.
Traction generators/alternators.
Rectifiers.
Bogies.
Vacuum circuit breakers.
Auxiliary machines.
Microprocessor-based electronic control equipment.
Power converter/inverter.
Static inverter for auxiliary supply.
Loco control resistances i.e. field diverters, dynamic braking resisters and inductive
shunts.
Traction control gear.
 Maximizing Returns on PF Investments at BHEL

OIL FIELD EQUIPMENT

Oil Rigs: A variety of on-shore rigs, work-over rigs, mobile rigs, heli-rigs, desert
rigs for drilling up to depths of 9,000 m, completer with matching draw-works and
hoisting equipment including: Mast and substructure; Rotating equipment; Mud
system including pumps; Power packs and rig electrics; Rig instrumentation; Rig
utilities and accessories.
Well Heads and Christmas Trees/Sub Sea Equipment
Well Head and X-Mas Trees for working pressures up to 10,000 psi.
Choke and kill manifolds.
Mud valves.
Full bore valves.
Block valves.
Mudline suspension system.
Casing support system.
Sub sea Well Heads.

CASTINGS AND FORGINGS

Sophisticated heavy castings and forgings of creep-resistant alloy steels, stainless

steel and other grades of alloy steels meeting stringent international specifications.

SEAMLESS STEEL TUBES

Hot-finished and cold-drawn seamless steel tubes with a range varying from outer
diameter of 19 to 133 mm and wall thickness of 2 to 12.5 mm, in carbon steel and
low-alloy steels to suit ASTM/API and other international specifications.
Studded tubes: Extended surface tubes for high performance heat transfer
applications
Spiral finned tubes: High frequency resistance welded finned tubes for WHR
systems, economizers and heat furnaces.

NON-CONVENTIONAL ENERGY SYSTEMS

Wind electric generator of up to 250 kW rating.

Solar PV systems and power plant.
Solar water heating systems.
Solar lanterns.
Maximizing Returns on PF Investments at BHEL
Maximizing Returns on PF Investments at BHEL
Maximizing Returns on PF Investments at BHEL

OBSERVATIONS
 Maximizing Returns on PF Investments at BHEL

ISSUER WISE BREAKUP (IN Cr.)

T DEP 39.63
GOI 72.56
PSU BONDS 72.69
PRIVATE SECTOR BONDS 14.90
PUBLIC SECTOR BANKS 33.65
SDL 54.75
TOTAL 288.19

ISSUER WISE BREAKUP(IN Cr.)

T DEP
54.75 39.63
19% 14%
GOI

PSU BONDS
33.65
72.56
12% PRIVATE SECTOR
25%
BONDS
14.90
5% PUBLIC SECTOR
BANKS
72.69 SDL
25%
 Maximizing Returns on PF Investments at BHEL

INVESTMENT IN PSU BONDS + TERM DEPOSITS

ISSUER NAME INVESTMENT (IN Cr.) %
BOB 0.59 0.40
BOI 2.00 1.37
CANARA BANK 2.42 1.65
EXIM BANK 0.96 0.66
HUDCO 2.76 1.89
IDBI 17.42 11.93
IDFC 2.00 1.37
IOB 13.53 9.27
NABARD 10.77 7.37
NCRPB 8.56 5.86
OBC CALL2016 1.43 0.98
PNB 6.62 4.53
POWERGRID 1.71 1.17
REC BONDS 2.50 1.71
SAIL 0.94 0.64
PFC 13.28 9.10
SBI 4.12 2.82
SYNICATE BANK 2.00 1.37
IFCI 12.75 8.73
T DEP 39.632 27.15
TOTAL 145.98 100.00

INVESTMENT IN PSU BONDS+ T DEP(%)

30.00
27.15

25.00

20.00

15.00
11.93
9.27 9.10 8.73
10.00 7.37
5.86
4.53
5.00 2.82
1.37 1.65 0.66 1.89 1.37 0.98 1.17 1.71 0.64 1.37
0.40
0.00
REC BONDS
POWERGRID
HUDCO

OBC CALL2016
EXIM BANK

NCRPB

T DEP
IDFC

IFCI
CANARA BANK

IDBI

PFC
PNB
IOB
BOB

SYNICATE BANK
SBI
SAIL
NABARD
BOI
 Maximizing Returns on PF Investments at BHEL

MATURITY YEAR WISE BREAKUP(IN Cr.)

YEAR OF MATURITY TOTAL INVESTMENT

2009 5.61
2010 39.59
2011 13.59
2012 12.96
2013 25.42
2014 12.23
2015 0.00544
2016 9.51
2017 8.12
2018 22.35
2019 11.13
2020 3.46
2021 13.69
2022 11.06
2023 3.49
2024 2.97
2026 10.32
2028 3.21
2032 6.80
CALL 2016 11.28
 Maximizing Returns on PF Investments at BHEL

OBSERVATIONS

• The performance of the fund has matched and

surpassed the benchmark of 8.5% as the
returns on the investment portfolio.
• Diversified portfolio as not more than 5%
investment is done in any company.
• Investment only in AAA rated bonds hence no
risk portfolio.
• Lack of active portfolio management due to
non allowance of trading into equity and
mutual funds.
• No investment in real estate, gold and
commodities etc.