The video editing for films is one of the most expensive and time taking part for a Bollywood movie production. Video editing comprises with many phases such as audio editing, VFX creation then finally editing the video clips one by one. Every movie is edited after splitting it into many segments and each segment is edited with variety of video editors and elements.
Mostly editing companies uses Adobe Premiere or Final Cut Pro for film editing as it is completely end user softwares. In these software editors have no limitations for video editing. They can make their own video effects as well as transitions in such tools or they can modify or upgrade them according to their needs. Many editors uses Sony Vegas for film editing as well. Sony Vegas is much similar to Adobe Premiere.
There are other video editors available such as PowerDirector, Pinnacle Studio, MAGIX Video editor, iMovie, Camtasia etc which are often used for simple video editing. These programs are mostly used for editing local movies or editing events videos etc.
For creating Visual Effects and animations, Editors use Adobe After Effects, Autodesk Maya or Nuke. These softwares are the kings of VFX and Animation creation. Some people also uses Blender for animation and VFX as it's completely open source software so they can find a number of ready made VFX templates for their commercial use.
I hope my answer have enough information that clear all your doubts about film editing.