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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM68052
Volume:
10 |
10 |
Oct 2026
Pages:
1-10
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Mangement
Lovely professional university
Mangement
Lovely professional university
Mangement
Lovely professional university
Mangement
Lovely professional university
Mangement
Lovely professional university
Any business organisation, whether big or small, privately owned or government owned, and from any industry, has to raise funds for the purchase of fixed assets, meeting operating expenses, and to enable the firm’s expansion. The sources from which such funds are raised, and their mix, have a direct bearing on the firm’s cost of capital, financial risk, ownership control and value creation. The choice between owned funds, (equity and retained earnings) and borrowed funds (debt), and their proportion make up the firm’s capital structure decision. This study looks into the sources of finance (owned and borrowed) that have been used by Bharat Electronics Limited (a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Defence, Government of India) for the last three financial years for which audited results are available: FY2023-24, FY2024-25 and FY2025-26. BEL has been selected for the study as it presents an interesting corporate finance scenario in the Indian corporate world: its listed and dividend-paying status as a government-owned, defence electronics manufacturer has financing choices dictated by market discipline (being listed on the BSE and NSE), government ownership guidelines (dividend and capital restructuring policies issued by the Department of Investment and Public Asset Management, or DIPAM) and the unique cash-flow characteristics of long-cycle defence production contracts. The report is structured into several sections. Section 2 contains a review of the literature/theory related to the sources of finance and capital structure. In section 3, there is a brief description of the firm under analysis – BEL. Section 4 defines the objectives and methodology of the research. Section 5 presents theoretical background on the main sources of finance. In section 6, the analysis of the firm’s sources of finance for FY2024-FY2026 is undertaken using the published financial statements. Section 7 contains the interpretation of results; the concluding remarks, recommendations, and limitations of the study are given in sections 8-10, respectively. References are provided at the end of the document.
KEYWORDS
The research aimed at determining, examining, and explaining the sources of financing of Bharat Electronics Limited for three financial years which are FY2023-24 through FY2025-26. Data obtained from research show the major role of equity financing. This became the result of the markable rise of retained earnings starting from 15,595 crores Indian Rupees to 23,257 crore Indian Rupees during the period under consideration. The equity financing constitutes over half of the total amount of financing. Loans play an insignificant part in financing of BEL and do not exceed one P.C. on the balance sheet even despite the highest credit rating according to Indian legislation and the firm’s access to over ₹7,000 crore bank facilities which are committed but not yet drawn. Trade payables and customer advances account for the second most important source of financing being a low-cost alternative for the formal working capital borrowing. The share of trade and advances financing among total financing has fallen because the amount of own reserves has grown in a faster way.
Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and the Theory of Investment. American Economic Review, 48(3), 261-297. Modigliani, F., & Miller, M. H. (1963). Corporate Income Taxes and the Cost of Capital: A Correction. American Economic Review, 53(3), 433-443. Myers, S. C., & Majluf, N. S. (1984). Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have. Journal of Financial Economics, 13(2), 187-221. Myers, S. C. (1984). The Capital Structure Puzzle. Journal of Finance, 39(3), 574-592. Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, Government of India. (2024). Revised Guidelines on Capital Restructuring of Central Public Sector Enterprises (CPSEs). ICRA Limited. (2026, February 20). Rating Rationale: Bharat Electronics Limited — Ratings Reaffirmed. Retrieved from icra.in. ICRA Limited. (2025). Rating Rationale: Bharat Electronics Limited — Ratings Reaffirmed. Bharat Electronics Limited. Annual Reports, FY2023-24, FY2024-25 and FY2025-26. Retrieved from bel-india.in. Screener.in. Bharat Electronics Ltd — Financial Statements (Balance Sheet, Profit & Loss, Cash Flow). Retrieved September 2026 from screener.in. Pandey, I. M. Financial Management. Vikas Publishing House, New Delhi. (Latest edition). Khan, M. Y., & Jain, P. K. Financial Management: Text, Problems and Cases. McGraw Hill Education. (Latest edition). Modigliani, F., & Miller, M. H. (1958). The Cost of Capital, Corporation Finance and the Theory of Investment. American Economic Review, 48(3), 261-297. Modigliani, F., & Miller, M. H. (1963). Corporate Income Taxes and the Cost of Capital: A Correction. American Economic Review, 53(3), 433-443.
Publication Date
10/16/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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