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Project Report on Financial Analysis of NTPC
Typology: Study Guides, Projects, Research
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(In partial fulfillment of MBA Course)
15 th^ June to 30st^ July, 2017
Mrs. Shweta Jaiswal
Submitted by
Nirbhay Kumar Class Roll no. - 13
University Roll no. - 05
Academic Session: 2016-
Master of Business Administration (Finance)
Presentation In-Charge Signature of the Candidate
(Faculty)
Countersigned
Director/Principal of the Institute
It is my pleasure to be indebted to various people, who directly or indirectly contributed in the development of this work and who influenced my thinking, behavior, and acts during the course of study.
I express my sincere gratitude to Prof.(Dr.) Pawan Kumar Poddar, Head of the Department, Department of Business Administration, TMBU, Bhagalpur for providing me an opportunity to undergo summer training at NTPC,
I am thankful to Mr. K. Barman, Senior Manager, Book & Budget Section, NTPC for his support, cooperation, and motivation provided to me during the training for constant inspiration, presence and blessings.
I also extend my sincere appreciation to Mrs. Shweta Jaiswal, Faculty Guide, MBA, TMBU, Bhagalpur who provided her valuable suggestions and precious time in accomplishing my project report.
Lastly, I would like to thank the almighty and my parents for their moral support and my friends with whom I shared my day-to-day experience and received lots of suggestions that improved my quality of work.
Nirbhay Kumar M.B.A. Finance 2016-
Table 1- Ratio Summery of last 5 years
CERTIFICATE I
ACKNOWLEDGEMENT II EXECUTIVE SUMMARY III LIST OF FIGURE IV LIST OF TABLES IV
1.1. (^) Meaning of Financial Analysis…………………………………………………………………………………………….
1.2. Operational & Financial Ratio ……………………………………………………………………………………………………………….. 22
1.3. Performance ratio ……………………………………………………………………………………………………………………… 24
1.4. Valuation Ratio…………………………………………………………………………………………………………………………..
1.1. WORKING CAPITAL RATIO………………………………………………………………………………………. ....
1.2. CURRENT RATIO……………………………………………………………………………………………………….
.
1.3. ACID TEST RATIO (Liquid/Quick Ratio) …………………………………………………… ……………………..
1.4. CASH RATIO……………………………………………………………………………………………………………. 1.5. INVENTORY TURNOVER RATIO…………………………………………………………………………………… 1.6. DEBTOR TURNOVER RATIO………………………………………………………………………………………… 1.7. CREDITOR TURNOVER RATIO……………………………………………………………………………………… 1.8. CURRENT ASSETS TO TOTAL ASSETS RATIO……………………………………………………………………. 1.9. WORKING CAPITAL TURNOVER RATIO…………………………………………………………………………..
Make other decisions that allow management to make an informed selection on various alternatives in the conduct of its business.
Financial analysts often assess the following elements of a firm:
Both 2 and 3 are based on the company's balance sheet, which indicates the financial condition of a business as of a given point in time.
Financial analysts often compare financial ratios (of solvency, profitability, growth, etc.):
Past Performance - Across historical time periods for the same firm (the last 5 years for example),
Future Performance - Using historical figures and certain mathematical and statistical techniques, including present and future values, This extrapolation method is the main source of errors in financial analysis as past statistics can be poor predictors of future prospects.
Comparative Performance - Comparison between similar firms.
These ratios are calculated by dividing a (group of) account balance(s), taken from the balance sheet and / or the income statement, by another, for example :
They say little about the firm's prospects in an absolute sense. Their insights about relative performance require a reference point from other time periods or similar firms.
One ratio holds little meaning. As indicators, ratios can be logically interpreted in at least two ways. One can partially overcome this problem by combining several related ratios to paint a more comprehensive picture of the firm's performance.
Seasonal factors may prevent year-end values from being representative. A ratio's values may be distorted as account balances change from the beginning to the end of an accounting period. Use average values for such accounts whenever possible.
Financial ratios are no more objective than the accounting methods employed. Changes in accounting policies or choices can yield drastically different ratio values.
Fundamental analysis.
Financial analysts can also use percentage analysis which involves reducing a series of figures as a percentage of some base amount. For example, a group of items can be expressed as a percentage of net income. When proportionate changes in the same figure over a given
for a national grid. Regional grids were initially interconnected by asynchronous HVDC back-to-back
links facilitating limited exchange of regulated power. The links were subsequently upgraded to high
capacity synchronous links.
The first interconnection of regional grids was established in October 1991 when the North Eastern and
Eastern grids were interconnected. The Western Grid was interconnected with the aforementioned grids in
March 2003. The Northern grid was also interconnected in August 2006, forming a Central Grid
synchronously connected operating at one frequency. [21]^ The sole remaining regional grid, the Southern
Grid, was synchronously interconnected to the Central Grid on 31 December 2013 with the commissioning
of the 765 kV Raichur-Solapur transmission line, thereby establishing the National Grid.[21] [22]
By the end of calendar year 2015, despite poor hydro electricity generation, India had become a power
surplus nation with huge electric power generation capacity idling for want of power demand. The
calendar year 2016 started with steep fall in the international price of energy commodities such as coal,
diesel oil, naphtha, bunker fuel and LNG which are used in electricity generation in India. Earlier
many of the power stations which are using fuels other than coal are unable to operate due to high cost of
LNG and petro products. This situation has changed due to glut in petroleum products globally. The prices
are falling to such an extent that these fuels have become cheaper to give competition for pit head coal
based power generators. Many of the stranded gas and liquid fuel based power stations would be
competing with indigenous coal based power stations in an electricity market where demand growth is not
encouraging. All the segments of the electricity sector such as fuel suppliers, fuel transporters (railways,
harbors, pipelines, etc.), electricity generators, electricity transmission companies and distribution
companies would be facing severe competition to cut down the prices and improve their operating
efficiency in a final consumer dictated market. [31]^ Due to tepid growth in electricity consumption, coal
stocks are continuously building up at power stations as well as coal mines.
On March 29, 2017 the Central Electricity Authority stated that for the first time India has become
net exporter of electricity. India exported 5,798 GWh to neighbouring countries, against a total import of
5,585 GWh.
NTPC Ltd., formerly known as National Thermal Power Corporation Limited, is an Indian Public Sector Undertaking, engaged in the business of generation of electricity and allied activities. It is a company incorporated under the Companies Act 1956 and a "Government Company" within the meaning of the act. The headquarters of the company is situated at New Delhi. NTPC's core business is generation and sale of electricity to state-owned power distribution companies and State Electricity Boards in India. The company also undertakes consultancy and turnkey project contracts that involve engineering, project management, construction management and operation and management of power plants.
The company has also ventured into oil and gas exploration and coal mining activities. It is the largest power company in India with an electric power generating capacity of 51,410 MW
. Although the company has approx. 16% of the total national capacity it contributes to over 25% of total power generation due to its focus on operating its power plants at higher efficiency levels (approx. 80.2% against the national PLF rate of 64.5%).NTPC currently produces 25 billion units of electricity per month.
Vision
TO BE THE WORLD’S LEADING POWER COMPANY, ENERGIZING INDIA’S GROWTH.
Mission
PROVIDE RELIABLE POWER AND RELATED SOLUTIONS IN AN ECONOMICAL, EFFICIENT AND ENVIRONMENT FRIENDLY MANNER, DRIVEN BY INNOVATION AND AGILITY.
Figure 3 :- Providing Schooling Facility
Core Values: ICOMIT
Figure 5 :- Providing Schooling Facility within campus for best education
Figure 6:- Develop Green Belt by NTPC
