This report provides a comprehensive financial analysis of BHEL, examining its income statements and statements of financial position for the years 20X1 and 20X2. The analysis highlights key variances in sales, cost of goods sold, profit margins, and asset valuations. It delves into the implications of these variances, including increased inventory, changes in loan stock, and the importance of effective capital utilization. The report assesses financial risks, such as the need to manage costs and improve retained profits, and emphasizes the role of ratio analysis and other financial techniques in strengthening BHEL's financial status. The study concludes with recommendations for strategic financial management to improve the company's overall financial health and performance, including suggestions for investment strategies.