INTRODUCTION

PROFILE OF THE STUDY16

The power sector has registered significant progress since the process of planned development of the economy began in 1950. Hydro -power and coal based thermal power have been the main sources of generating electricity. Nuclear power development is at slower pace which was introduced in late si!ties. The concept of operating power systems on a regional basis crossing the political boundaries of states was introduced in the early si!ties. "n spite of the overall development that has ta#en place the power supply industry has been under constant pressure to bridge the gap between supply and demand.

INDIAN POWER SECTOR DATABASE16

$ll $cts %olicies &uidelines Notifications 'egulations and (rders issued by )entral &overnment *tate &overnment )entral and *tate 'egulatory )ommissions and other relevant authorities. %rofiles of )entral +lectricity 'egulatory )ommission and of 19 e!isting *tate +lectricity 'egulatory )ommissions with details of 'egulatory $cts &rid %erformance 'eviews (rders Transmission Tariffs and ,heeling )harges $vailability -ased Tariff 'eviews *tate Tariff philosophy .atest Tariff (rders and other important proposals and releases. "mportant /ocuments li#e +lectricity $ct and the *tanding )ommittee 'ecommendations on the +lectricity -ill 'eport of the &roup on Tariff %olicy National +lectricity %olicy "mportant *tatus and /etailed 'eport on 'enovation 0 1oderni2ation $ccelerated %ower /evelopment 0 'eform programme and .atest /evelopments .atest *tatus of *tate-wise 'eforms %erspective Transmission %lan Tenth and +leventh 3ive 4ear %lan for +nergy *ector 'eport on 1005 1etering &odbole 'eport +!pert &roup 'eport on *+- /ues *ecuriti2ation *trategy %lan for 6001-16 and many more. *+-s7+/s %rofiles covering Type-wise "nstalled )apacity $vailability &eneration %urchase 'e8uirement *hortages /emand 0 *upply %ro9ections %roposed %ower

%lants 0 )apacity +!pansion %lans %hysical 0 3inancial %erformance %lant %.3 Transmission .ines T0/ +!penditure 0 .osses )onsumer %rofile and Tariff details. +!haustive %rofiles and *tatus :pdates of all the "ndependent %ower %roducers which include important pro9ects li#e /abhol &autami ;emagiri <archam ,angtoo Hirma 1alana <onaseema %ower %ro9ects etc. 1onitoring 'eport on *tatus of %rivate %ower %ro9ects )risis 'esolution &roup =)'&> 1eetings? update 1odel %%$ 3uel .in#ages Ta!ation issues and other important documents. ss

TRANSMISSION & DISTRIBUTION: /etailed (verview of %ower&rid and

)entral Transmission *ector Transmission and &rid 1aps of *tates *tate-wise T0/ scenario "nter-regional transmission lin#s (utlay on T0/ *tate-wise Transformer )apacity T0/ .osses 0 Transmission .ine .ength *tatus of 1etering of %ower +lectricity )onnections /raft on /evelopment of National %ower Transmission &rid 'eports on &rid %erformance and /isturbances "@ 0 @ %lan =proposed pro9ects> and %rivate *ector %articipation. /emand 0 *upply %ro9ections for the #ey states including pro9ections of the 1A th +lectric %ower *urvey %ower on /emand =6016> )abinet 'eport on %ower *upply %osition and *tatus of %ower *upply to $griculture and %ower cut on "ndustries.

MINISTRY OF POWER17
"ndian power sector comes under the 1inistry of %ower "ndia. +arlier #nown as 1inistry of +nergy it comprised of separate departments for power coal and non-conventional sources of energy. "n 1996 the 1inistry of %ower started wor#ing independently with wor# areas covering planning and strategi2ing the "ndian power pro9ects and policies. The power management and implementation of the various power pro9ects underta#en formulation and amendments of the power laws in "ndia management of the power supply in "ndia monitoring of the power plants in "ndia power companies in "ndia power generation in "ndia and other power shortage problems etc.

The 1inistry of %ower =1o%> is coordinated by )entral +lectricity $uthority =)+$> in all technical and economic aspects. $long with the )+$ other subsidiary organi2ations of the 1op are1BC

National Thermal %ower )orporation =NT%)> National Hydro +lectric )orporation =NH+)> %ower 3inance )orporation of "ndia =%3)"> Nuclear %ower )orporation of "ndia .imited North +astern +lectric %ower )orporation =N++%)> 'ural +lectrification )orporation ='+)> /amodar ;alley )orporation =/;)> -ha#ra -eas 1anagement -oard =--1-> Tehri Hydro /evelopment )orporation =TH/)> *atlu9 Dal ;idyut Nigam =*D;N> %ower &rid )orporation of "ndia .td =%ower &rid "ndia> %ower Trading )orporation =%T)> -ureau of +nergy +fficiency =-++>

POWER INFRASTRUCTURE IN INDIA18:

The power industry in "ndia derives its funds and financing from the government some private players that have entered the mar#et recently ,orld -an# public issues and other global funds. The %ower 1inistry "ndia has set up %ower 3inance )orporation of "ndia that loo#s after the financing of the power sector in "ndia. The %ower 3inance )orporation .imited provides finance to ma9or power pro9ects in "ndia for power generation and conversion distribution and supply of power in "ndia.

%ower 3inance )orporation =%3)> .td "ndia also loo#s after the installation of any new power pro9ects as well as renovation of an e!isting power pro9ect "ndia. The %3) in association with central electricity authority and the ministry of power facilitates the development in infrastructure of the power sector "ndia. They have ta#en up construction of mega power pro9ects that will answer to the power shortage in various states through power Power Su transmission through regional and national power grids.

!" U#$%& I#'$(1):

%ower is derived from various sources in "ndia. These include thermal power hydropower or hydroelectricity solar power biogas energy wind power etc. the distribution of the power generated is underta#en by 'ural +lectrification )orporation for electricity power supply to the rural areas North +astern +lectric %ower )orporation for electricity supply to the North +ast "ndia regions and the %ower &rid )orporation of "ndia .imited for an all "ndia supply of electrical power in "ndia.

T*er+(! Power $# I#'$( is mainly generated through coal gas and oil. "ndia coal power forms a ma9ority share of the source of power supply in "ndia. The electric power in "ndia is generated at various thermal power stations in "ndia. The power generated at these thermal power plants is then distributed all over "ndia through a networ# of powergrid at regional and national levels. The power ministry organi2ation responsible for the thermal power management in "ndia is the NT%). H"'ro ower $& I#'$( is one of the mega power generators in "ndia. ;arious hydropower pro9ects and hydro power plants have been set up by the ministry of power for generation of hydro power in "ndia. ;arious dams and reservoirs are

constructed on ma9or rivers and the #inetic energy of the flowing water is utili2ed to generate hydroelectricity. The power generator here is the running water. The hydroelectric power plants and the hydro power generation companies are managed by the National Hydro +lectric %ower )orporation =NH%)>.

W$#' Power $# I#'$( is available in plenty as "ndia witnesses high intensity winds in various regions due to the topographical diversity in "ndia. +fforts have been made to utili2e this natural source of energy available free of cost for wind power generation. Huge wind energy farms have been set up by the government for tapping the wind energy by using gigantic windmills and them converting the #inetic energy of the wind into electricity by the use of power converters. The wind power advantages start with the very fact that a wind energy power plant does not re8uire much infrastructure input and the raw material i.e. wind itself is available free of cost. So!(r Power $# I#'$( is being utili2ed to generate electricity on smaller scale by setting up massive solar panels and capturing the solar power. *olar power "ndia is also being utili2ed by the power companies in "ndia to generate solar energy for domestic and small industrial uses. Nu,!e(r Power $# I#'$( is generated at huge nuclear power plants and nuclear power stations in "ndia. $ nuclear power plant generates the electricity using nuclear energy. $ll the nuclear power plants in "ndia are managed by the Nuclear %ower )orp of "ndia .td =N%).>. The electricity from all "ndia nuclear plants is distributed by the N%). as per the nuclear power pro9ect scheme. B$o-(& Pro'u,%$o# $# I#'$( is still in its infancy stage. $lso the number of biogas plants in "ndia is still very low. "ndia being the largest domestic cattle producer has plenty of biogas fuel and thus utili2ation of the fuel for mass biogas production by setting up more biogas plants in "ndia would solve the power shortage problem to some e!tend.

RESOURCES FOR POWER .ENERATION/1

*eparate strategies have to be adopted for the development of power systems in the long term. "n the short term the efforts should be to improve the performance and efficiency of the investments already made and tries to bridge the gap between demand and supply. "n the long run the approach would have to develop a system which would enable the demand to be met in an optimal manner with ade8uate reliability. De0e!o +e#% o1 ,o(! 2(&e' -e#er(%$o# )oal based thermal power stations are presently the mainstay of power development and this is li#ely to be so in the immediate future also considering the present status of the pro9ects and various constraints in development of hydro and nuclear power. $s per the present estimates the coal reserves in the country are the order of 606 billion tonnes with the bul# of the reserves lying in the +astern 'egion states of -ihar (rissa and ,est -engal. (f the coal produced about G05 is consumed in the power sector. %resently about 600 1illion Tonnes of coal is consumed yearly in the power sector and this re8uirement would continue to increase in the coming years. "t is estimated that the demand for coal by the power sector is li#ely to be substantially in e!cess of the production. This demand would need to be met by importing coal and augmenting domestic coal producing capability. -oth the options would re8uire special efforts and policy measures. The &overnment had ta#en a ma9or step in opening up coal mining to the private sector. "t is hoped that substantial private participation would give a boost to the domestic production. -esides 8uantity the 8uality of "ndian coal has been a ma9or problem and concern for the power supply industry. ,ith ash content of coals being in the range of E0-505 the beneficiation of coal assumes special significance. +stablishment of washeries therefore assumes a great importance and country has t o address this problem seriously. *o far the power sector has relied primarily on railways for coal transportation. However there are considerable constraints in this area and other modes of transport vi2. shipping rail-cum-sea route for coastal pro9ects will have to be e!amined on case to case basis. <eeping in view the problems of fly ash and the high ash content coal the desirable option would be to develop large pit head coal pro9ects and transmit the power to the load

centers. (nly ,ashed )oal should be transported to load centre stations and washery re9ects may be utili2ed through fluidi2ed bed boilers in power stations at the pit head itself. De0e!o +e#% o1 -(& (#' !$3u$' 1ue! 2(&e' -e#er(%$o#// $s per latest estimates recoverable reserve of oil is of the order of about GFA million tonnes and that of natural gas about A96 billion cubic meters. +ven today petroleum fuel is being imported on a large scale putting a heavy burden on foreign e!change outgo. The cost of power generation using imported fuel is higher than the cost of power generation using domestic coal at almost all locations. 3urther since fuel is to be imported the cost of generation would get lin#ed with fluctuations in the international oil prices foreign e!change variation and also sensitiveness to international tension etc. $ccordingly long term dependence on imported li8uid fuel for power generation should be minimum.

LIST OF POWER .ENERATIN. COMPANIES IN INDIA/4:5

1a9or power generating companies in "ndia are listed below C A#'*r( Pr('e&* Power .e#er(%$o# Cor or(%$o# L$+$%e' 6AP.ENCO7 A#'*r( %radesh %ower &eneration )orporation .imited is one of the pivotal organi2ations of $ndhra %radesh engaged in the business of %ower generation. $part from operation 0 maintenance of the power plants it has underta#en the e!ecution of the ongoing 0 new power pro9ects scheduled under capacity addition programme and is ta#ing up renovation 0 moderni2ation wor#s of the old power stations.

BIRLA POWER SOLUTIONS LIMITED

-irla %ower *olutions .imited a part of the 4ash -irla &roup was one of the first )ompanies to manufacture portable generators in "ndia in 19BA.The )ompany has ther e!pertise to manufacture 6 stro#e as well as F stro#e engines.The )ompany is at present manufacturing a wide range of &enerators catering to the power re8uirements from 500 , to 5.5 <,.

ESSAR .ROUP
+ssar &roup is one of "ndia?s largest corporate houses with an asset base of 's.1G0 billion =:* H E.A billion>. "ts interests span the manufacturing and service sectors in both the old and new economiesC in &%ee! telecom shipping oil power and constructions. "ts massive investments over the past decade have created compelling tangible and intangible assets that have now begun to release value.

ESSAR POWER LTD8

515 1, Ha2ira %ower %lant "ndia?s first independent power plant.

 9INDAL STEEL & POWER LTD8

Dindal *teel 0 %ower. 1eeting the challenges of global mar#ets. 4oung. /ynamic. &rowing. /riven by business pragmatism. The largest coal-based sponge iron manufacturing capability in the world. Now producing rails of 160 metre length the longest produced anywhere in the world and %arallel 3lange -eams 0 )olumns in larger si2es. :AI.A ATOMIC POWER STATION .ocated in <aiga /ist.:ttar <annada <arnata#a. To develop #u,!e(r power technology and produce in a self-reliant manner nuclear power as a safe environmentally benign and an economically viable source of electrical energy to meet the growing electricity needs of the country.

:A:RAPAR ATOMIC POWER STATION

<a#rapar near *urat .u;(r(% in. To develop #u,!e(r power technology and produce in a self-reliant manner nuclear power as a safe environmentally benign and an economically viable source of electrical energy to meet the growing electricity needs of the country.

MADRAS ATOMIC POWER STATION 6MAPS7

.ocated in <alpa##am Tamilnadu. To develop #u,!e(r power technology and produce in a self-reliant manner nuclear power as a safe environmentally benign and an economically viable source of electrical energy to meet the growing electricity needs of the country.

MA.NUM POWER .ENERATION LTD

1agnum %ower &eneration .td a subsidiary of 1$&N:1 has been set up to implement %ower &eneration %ro9ects. $ team of e!perienced )onsultants and +ngineers has been put together to conceive %ower %ro9ects realise them through

construction

and

commissioning

and

thereafter

operate

them.

NARORA ATOMIC POWER STATION

.ocated in Narora /ist. -ulandshahar :%. To develop #u,!e(r power technology and produce in a self-reliant manner nuclear power as a safe environmentally benign and an economically viable source of electrical energy to meet the growing electricity needs of the country. *tarted its commercial operation on Dab 1 1991

NATIONAL THERMAL POWER CORPORATION 6NTPC7

NT%) was incorporated in 19G5. "n the last 6B years it has grown into the largest power utility of "ndia. NT%) is the *i!th largest %*er+(! power generator in the ,orld and the *econd most efficient utility in terms of capacity utilisation based on data of 199B

NEPC INDIA LTD

N+%) "N/"$ .imited is a %ublic .imited )ompany promoted by the <hem#a &roup with the primary ob9ective of promoting wind energy. The company manufactures the full range of wind energy e3u$ +e#%I N+%) "N/"$ is bac#ed by an efficient ( 0 1 /epartment and offers effective after - sales service.

PTC INDIA
%T) "ndia .td. =%T)> the leading provider of power trading solutions in "ndia is a &overnment of "ndia initiated %ublic-%rivate %artnership whose primary focus is to develop a commercially vibrant power mar#et in the country.

RELIANCE ENER.Y
'eliance +nergy .td is "ndia?s leading integrated power utility company in the private sector. "t has a significant presence in generation transmission and distribution of power in 1aharashtra &oa and A#'*r( %radesh.

10

 RA9ASTHAN ATOMIC POWER STATION 6RAPS7

To develop #u,!e(r power technology and produce in a self-reliant manner nuclear power as a safe environmentally benign and an economically viable source of electrical energy to meet the growing electricity needs of the country. N%)". has its vision to have an installed nuclear power capacity of 60 000 1,=e> by the year 6060. This capacity could be achieved by the development of more 660 1,=e> 0 550 ,=e> units of %ressuri2ed heavy water reactors importing light water reactors and by the introduction of fast breeder reactors.

TARAPUR ATOMIC POWER STATION

"ndia?s first commercial #u,!e(r power plant Tarapur $tomic %ower *tation =T$%*> is also $sia?s first and one of the longest serving nuclear power plants in the world. The plant was supplied by the &eneral +lectric )ompany of :*$ on a turn#ey basis and went into commercial operation in 19A9.T$%* has two units of 1A0 1,e each =present capacity> and has produced over 50E00 1:s during the last 6B years. T$%* provided the "ndian scientists and engineers an early lead and vita e!perience to operate a nuclear power plant in local grid conditions. Today at B6 paisa per unit nuclear power produced by T$%* still remains the most economic source of electricity

TATA POWER
6E001, capacity largest private sector %ower )ompany supplying power over 9 decades to Mu+2($. %resent now in many other states of "ndia.

TORRENT POWER
Torrent %ower is one of the leading brands in the "ndian power sector promoted by the 's. F5 billion Torrent &roup. ,ith an all-round e!perience in generation transmission and distribution of power sector player in .u;(r(%. and a proven trac# record of implementing large power pro9ects Torrent %ower is the most e!perienced private

11

TOP FI<E POWER PRODUCIN. INDIAN COMPANIES AS PER THERE MAR:ET CAPITALI=ATION/>

SRNO8 18 /8

Co+ (#" N(+e NTPC

POWER GRID CORPORATION

M(r?e% C( $%(!$@(%$o# 6IN RS8CR87

1A7B7>A87> >)B/C78CC

>8 C8 A8

RELIANCE ENER.Y TATA POWER NEYWELI LI.NITE CORPORATION LTD8

/8BA>C81/ //B87)876 18A/18)1

16

NATIONAL THERMAL POWER CORPORATION 6NTPC7/4

NT%) .imited is the largest thermal power generating company of "ndia. $ public sector company it was incorporated in the year 19G5 to accelerate power development in the country as a wholly owned company of the &overnment of "ndia. $t present &overnment of "ndia holds B9.55 of the total e8uity shares of the company and the balance 10.55 is held by 3""s /omestic -an#s %ublic and others. ,ithin a span of E1 years NT%) has emerged as a truly national power company with power generating facilities in all the ma9or regions of the country. NT%)s core business is engineering construction and operation of power generating plants. "t also provides consultancy in the area of power plant constructions and power generation to companies in "ndia and abroad. $s on date the installed capacity of NT%) is 6G 90F 1, through its 15 coal based =66 B95 1,> G gas based =E 955 1,> and F Doint ;enture %ro9ects =1 05F 1,>. NT%) ac8uired 505 e8uity of the *$". %ower *upply )orporation .td. =*%*).>. This D; company operates the captive power plants of /urgapur =160 1,> 'ou#ema =160 1,> and -hilai =GF 1,>. NT%) also has 6B.EE5 sta#e in 'atnagiri &as 0 %ower %rivate .imited ='&%%.> a 9oint venture company between NT%) &$". "ndian 3inancial "nstitutions and 1aharashtra *+- Holding )o. .td. The present capacity of '&%%. is GF0 1,. NT%)s share on E1 1ar 600G in the total installed capacity of the country was 60.1B5 and it contributed 6B.505 of the total power generation of the country during 600A-0G. NT%) has set new benchmar#s for the power industry both in the area of power plant construction and operations. "t is providing power at the cheapest average tariff in the country. ,ith its e!perience and e!pertise in the power sector NT%) is e!tending consultancy services to various organisations in the power business.

1E

NT%) is committed to the environment generating power at minimal environmental cost and preserving the ecology in the vicinity of the plants. NT%) has underta#en massive afforestation in the vicinity of its plants. %lantations have increased forest area and reduced barren land. The massive afforestation by NT%) in and around its 'amagundam %ower station =6A00 1,> has contributed reducing the temperature in the areas by about EJc. NT%) has also ta#en proactive steps for ash utilisation. "n 1991 it set up $sh :tilisation /ivision to manage efficient use of the ash produced at its coal stations. This 8uality of ash produced is ideal for use in cement concrete cellular concrete building material. $ K)entre for %ower +fficiency and +nvironment %rotection =)+N%++%>K has been established in NT%) with the assistance of :nited *tates $gency for "nternational /evelopment. =:*$"/>. )enpeep is efficiency oriented eco-friendly and eco-nurturing initiative - a symbol of NT%)?s concern towards environmental protection and continued commitment to sustainable power development in "ndia. $s a responsible corporate citi2en NT%) is ma#ing constant efforts to improve the socio-economic status of the people affected by the its pro9ects. Through it?s 'ehabilitation and 'esettlement programmes the company endeavours to improve the overall socio-economic status of %ro9ect $ffected %ersons. NT%) was among the first %ublic *ector +nterprises to enter into a 1emorandum of :nderstanding =1(:> with the &overnment in 19BG-BB. NT%) has been %laced under the ?+!cellent category? =the best category> every year since the 1(: system became operative. 'ecognising its e!cellent performance and vast potential &overnment of the "ndia has identified NT%) as one of the 9ewels of %ublic *ector Navratnas- a potential global giant. "nspired by its glorious past and vibrant present NT%) is well on its way to realise it s vision of being. $ world class integrated power ma9or powering "ndiaLs growth with increasing global presence.

1F

/78 POWER .RID CORPORATION OF INDIA LIMITED/4

Are(& o1 O er(%$o#
De0e!o +e#% o1 I#%er5S%(%e %r(#&+$&&$o# S"&%e+&
%lanning 0 /esign )onstruction Muality $ssurance 0 "nspection (peration 0 1aintenance

.r$' M(#(-e+e#%
+stablishment of modern .oad /espatch )entres 'eal-time &rid (peration (ptimum scheduling 0 despatch +nergy accounting including settlements

D$0er&$1$,(%$o#
-roadband Telecom *ervices. *ub-transmission /istribution 'ural +lectrification

15

NATIONAL POWER .RID/4

$ perspective transmission plan has been evolved and put into implementation by %(,+'&'"/ for establishment of an integrated National %ower &rid in a phased manner for strengthening the regional grids =five grids structured on geographical contiguity basis> and to support the generation capacity addition program of about 1 00 000 1, during @ 0 @" %lans. "nter-regional power transfer capacity of 9500 1, by the end of 34 0F-05 is e!pected to be enhanced to E0 000 1, by year 6016. 3or creation of such a National &rid total investment re8uirement in the central transmission sector during @ 0 @" plan periods has been envisaged to be about 's. G1 000 )rore =about :*/ 1A billion>. (ut of this %(,+'&'"/ plans to invest about 's. 50 000 )rore =G05> while the balance of 's. 61 000 )rore =E05> is envisaged to be mobili2ed through %rivate %articipation.

Bo(r' o1 D$re,%or&
1. /r. ' % *ingh =)hairman 0 1anaging /irector> 6. *hri * 1a9umdar /irector =%ro9ects> E. *hri D *ridharan /irector =3inance> F. *hri &.-. %radhan Doint *ecretary =$dmnI T0'ITransI+)I%T)> 5. *hri $nil < $garwal =Non-official part time /irector> A. *hri 3 $ ;andrevala =Non-official part time /irector> G. /r. $ * Narag =Non-official part time /irector> B. /r. % < *hetty =Non-official part time /irector> 9. *hri 'a9esh ;erma =/irector =1(%> D * 0 3$ 1inistry of %ower> 1A

>78 RELIANCE ENER.Y/1

Power$#- Pro-re&&B E#er-$@$#- %*e E,o#o+": 'eliance +nergy .imited incorporated in 1969 is a fully integrated utility engaged in the generation transmission and distribution of electricity. "t ran#s among "ndia?s top listed private companies on all ma9or financial parameters including assets sales profits and mar#et capitali2ation. $ #ey constituent of the 'eliance - $nil /hirubhai $mbani &roup "ndia?s third largest business house 'eliance +nergy is "ndia?s foremost private sector utility with aggregate group revenues of 's. 1E 01G crore =:*H E billion> and total assets of 's. 16 1AA crore =:*H 6.B0 billion>. 'eliance +nergy companies distribute more than 6B billion units of electricity to cover 65 million consumers across different parts of the country including 1umbai and /elhi in an area that spans over 1 6F E00 s8. #ms. "t generates 9F1 1, of electricity through its power stations located in 1aharashtra $ndhra %radesh <erala <arnata#a and &oa. 'eliance +nergy has emerged as one of the leading players in "ndia in the +ngineering %rocurement and )onstruction =+%)> segment of the power sector. 'eliance +nergy companies currently pursue several gas coal wind and hydro-based power generation pro9ects in 1aharashtra :ttar %radesh $runachal %radesh and :ttaranchal with aggregate capacity of over 1E 510 1,. These pro9ects are at various stages of development. 'eliance +nergy is also active in the trading and transmission of power ma#ing it a fully integrated player in the power sector.'eliance +nergy has also forayed as an e8uity investor in to the infrastructure business including in the prestigious 1umbai metro rail pro9ect and various road pro9ects of the National Highways $uthority of "ndia.

1G

'+. is committed to creating superior value for all its sta#eholders and be amongst the most admired and trusted utility companies in the world by setting new benchmar#s in

1B

standards of corporate governance operational and financial e!cellence responsible corporate citi2enship and profitable growth.

C78 TATA POWER COMPANY LIMITED17

TATA POWER IN PROFILE Dr$0e# B" .row%* D 1ue!!e' 2" Power 'ecogni2ed as "ndiaLs largest private sector power utility with a reputation for trustworthiness built up over nearly nine decades Tata %ower surges ahead into yet another year with plans of sustained growth greater value to consumer and reliable power supply. .ed by a powerful vision Tata %ower pioneered the generation of electricity in "ndia. "t has now successfully served the 1umbai consumers for over ninety years and has spread its footprints across the nation. Today it is the countryLs largest private player in the sector. $part from 1umbai and /elhi the company has generation capacities in Do9obera Dhar#hand and <arnata#a . Tata %ower has an installed power generation capacity of above 6E00 1ega ,atts with the 1umbai power business which has a uni8ue mi! of thermal and Hydro %ower generated at the Thermal %ower *tation Trombay and the Hydro +lectric %ower *tations 19

at -hira -hivpuri and <hopoli accounting for 1G9G 1,. "ts diverse generation capability facilitates the company in producing low cost energy thereby giving its consumers a greater value for money. $mong its many achievements that Tata %ower can proudly boast of are the installation and commissioning of "ndiaLs first 500 1, unit =at its Thermal %ower &enerating *tation Trombay> the 150 1, %umped *torage :nit at its Hydro &enerating *tation -hira and environmental control systems li#e the 3lue &as /esulphuri2ation plant.

Tata %ower has a first of its #ind 9oint venture with %ower &rid )orporation of "ndia for the 1600 #m Tala Transmission %ro9ect. Tata %ower Trading )ompany .imited =T%T).> a wholly owned subsidiary of the Tata %ower )ompany =T%)> has been awarded the first ever power trading license by the )entral +lectricity 'egulatory )ommission =)+')> under section 1F of the +lectricity $ct 600E enabling it to carry out transactions all over "ndia.

I#%er#(%$o#(! Pro;e,%&:
.everaging upon its engineering s#ills and understanding of the power business Tata %ower has carried out several overseas pro9ects and successfully completed erection testing and commissioning of ma9or power pro9ects in *audi $rabia -angladesh <uwait $lgeria 1yanmar and Thailand. The company has also underta#en pro9ects pertaining to power plant 7 operations management and plant operations training.

S%r(%e-$, E!e,%ro#$,& D$0$&$o# 6SED7: The *trategic +lectronics /ivision of Tata %ower has been in operation for over E0 years and has been pursuing development and production activities for the "ndian defence sector. *+/ successfully developed the 1ulti -arrel 'oc#et .auncher N%ina#aL proven in the field through e!tended user trials which led to its induction into the "ndian $rmy. The /ivision has developed speciali2ed e8uipment for $ir /efence and Naval )ombat

60

systems. THE PIONEERS Tata +lectric pioneered the generation of electricity in "ndia nine decades ago. Today it is the country?s largest private power utility established as a licensee in 1umbai and with ambitious e!pansion plans from being essentially 1umbai-centric to a ma9or national player not only in the fields of %ower but also in +nergy and -roadband )ommunication. Tata %ower is the one company with presence in all aspects of %ower be it Thermal Hydro *olar ,ind +nergy Transmission 0 /istribution. T(%( E!e,%r$,E& New E#%$%" %rior to 1st $pril 6000 the Tata +lectric )ompanies comprised of the following three )ompaniesC 1. The Tata Hydro-+lectric %ower *upply )ompany .imited established in 1910. 6. The $ndhra ;alley %ower *upply )ompany .imited established in 191A. E. The Tata %ower )ompany .imited established in 1919. ,ith effect from that day $ndhra ;alley and Tata Hydro merged into Tata %ower to result in one large unified entity. Mu+2($ Power I& T(%( Power /uring the ninety long years the energy produced by Tata %ower has coursed through 1umbai?s vitals reliably and economically helping the city achieve and retain its premium status -- the commercial capital of "ndia. The challenging tas# of meeting the ever-growing power needs of the industrial metropolis of the country has been possible because of efficient transmission and distribution of energy and constant upgrading of technology by the )ompany. Power S%(%u& Tata %ower is licensed to generate transmit and distribute power to the city of 1umbai and its suburbs. 3rom )olaba in the *outh to -assein )ree# on the Northern end and ;i#hroli on the )entral side the company services the domestic and commercial consumers through its distribution licensees -+*T and 'eliance +nergy .imited.

61

D$re,% M(r?e%$#The )ompany also supplies power directly to such bul# consumers as )entral and ,estern 'ailways 1umbai %ort refineries te!tile mills fertili2er factories -$') 1unicipal )orporation water pumping plants and other ma9or industries using continuous processes re8uiring uninterrupted power supply. The latest addition to the list is the commercial district at the -andra-<urla )omple! and ma9or commercial and residential comple!es in the suburbs.

Ne%wor? o1 Re!$(2$!$%" "n power supply grids ensure stability. Tata %ower?s power systems in ,estern "ndia are interconnected with the ,estern 'egion &rid including the *tate +lectricity -oards of 1aharashtra &u9arat 1adhya %radesh &oa and Tarapur Nuclear %ower *tation. Co+ e%$%$0e T(r$11& Tata %ower en9oys an unrivalled cost-advantage in electricity production which it has achived by regularly upgrading technology to the state-of-the-art and a uni8ue mi! of hydro and thermal generating capacity. The )ompany happily shares this advantage with its customers in terms of competitive tariffs ma9or beneficiaries being direct consumers as they pay the lowest tariffs in 1umbai.

66

RESEARCH OB9ECTI<E8
T*e O2;e,%$0e& o1 M" Re&e(r,* Were:5 178 Pr$+(r" O2;e,%$0e& &et familiar with the importance of %ower industry in the infrastructural development &et familiar with what is financial analysis and concept of mar#eting power gain. To analyse the ratio of the companies for the year 600A-0B. /78 Se,o#'(r" O2;e,%$0e& To study short term financial position. To study long term financial position. To find correlation between %7+ ratio and +%* of the firm. To find trend analysis of profit after ta!

6E

THEORETICAL FRAMEWOR:
Co#&%ru,% O1 M" S%u'":
PFE r(%$o EPS S*or% Ter+ R(%$o Lo#- Ter+ R(%$o

De e#'e#'e#% <(r$(2!e& :
PFE r(%$o Pro1$% A1%er T(G

I#'e e#'e#% <(r$(2!e&:

M(r?e% r$,e EPS S(!e EG e#&e&

6F

LITERATURE RE<IEW
(nce the research problem is formulated the researcher underta#es an e!tensive literature survey. The literature survey conducted here includes the academic boo#s and websites from internet . P(#'e"B I8M8 HF$#(#,$(! M(#(-e+e#%I1 long term financial position or solvency in this " studied about debt ratio fund debt to total capitali2ation ratio e8uity ratio etc. M(*e&*w(r$B HS8NB A'0(#,e' A,,ou#%$#-O6 Tools of financial analysis Se?r(# U+(8IT*e Re&e(r,* Pro,e&&I> <nowledge about research process 0 research design Ber$ .8C8B HM(r?e%$#- Re&e(r,*IC

65

This boo# helped in understanding the different research designs and analytical tools used here .u %( S*(&*$8?BBIM(#(-e+e#e% A,,ou#%$#-IA ,or#ing capital management and finance .oe! D8:B HA#(!"&$& o1 1$#(#,$(! &%(%e+e#%I6 'atio $nalysis li#e %7+ ratio +%* Do#(!' R8 Coo er HBu&$#e&& Re&e(r,* Me%*o'o!o-"I7 Helped in 'esearch /esign :o%*(r$ C8R8B HRe&e(r,* Me%*o'o!o-" Me%*o'& (#' Te,*#$3ue&O 8 1ethods of data collection collection of data and collection of secondary dataO referred before the data collection sampling distribution 9($#B BT8R8B (#' A--(rw(!B Dr8 S8C8B HS%(%$&%$,& For M8B8AI) )orrelation is studied to use T- test in study trend analysis .u %( S8P8 (#' .u %( M8P8B HBu&$#e&& S%(%$&%$,&I14 T-Test hypotheses testing Murr(" R8 S $e-e!B HT*eor" (#' Pro2!e+ o1 S%(%$&%$,&I11 correlation and regression

9our#(!&:5

6A

T*e C*(r%ere' A,,ou#%(#%1/ "nformation regarding profit of companies

C*(r%ere' F$#(#,$(! A#(!"&%1> -alance sheet of companies

9our#(! o1 1$#(#,e1C %7+ and +%* of )ompanies

'-" -:..+T"N1A
"ncome and e!penditure $7c

We2&$%e&:5
www.valuenotes.com7a9ain7a9ainPbhl16 "t tells about top power generation companies 1inistry of finance www.valuenotes.com7a9ain7a9ainPtatapower17 "t tells about ran#ing of Tata power www.e!plore.oneindia.in7industry7porew718 *ubsidy (rgani2ation. %ower infrastruture www.e!plore.oneindia.in7industry7porew7powergenerationindustry1) %ower supply 0 units in "ndia www.e!plore.oneindia.in7industry7porew7powergenerationindustry/4

6G

1ost strong sector in power information regarding NT%) %owergrid www.m9unction.in7mar#etPnews7/1 'esources of power generation 'eliance energy www.intiacatalog.com7webdirectory7electrical7G0F// development of gas 0 li8uid fuel based gas www.indiane!press.com7story760AG05/> 1ar#et )apitali2ation of companies

6B

Re&e(r,* Me%*o'o!o-"CB8B>

'esearch methodology is a way to systematically solve the problem. "t is a game plan for conducting research. "n this we describe various steps that are ta#en by the researcher A!! ro-re&& $& 2or# o1 $#3u$r"8 Dou2% $& o1%e# 2e%%er %*(# o0er,o#1$'e#,eB 1or $% !e('& %o $#3u$r" (#' $#3u$r" !e('& %o $#0e#%$o#8I 'esearch in a common parlance is a search for #nowledge. 'esearch is an art of scientific and systematic investition. Thus research comprises defining and redefining problems formulating hypothesis or suggested solutionsI collecting organi2ing and evaluating data ma#ing deductions and reaching conclusions. 'esearch methodology is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. 'esearch 1ethodology is the conceptual structure within which research is conducted. "t constitutes the blueprint for the collection measurement and analysis of the data. 'esearch methodology is a framewor# for the study and is used as a guide in collecting and analy2ing the data. "t is a strategy specifying which approach will be used for gathering and analy2ing the data. it also includes time and cost budget since most studies are done under these two constraints. The research methodology include over all research design the sampling procedure the data collection method and analysis procedure.E

I&&ue& re-(r'$#- re&e(r,* (re:

To gain familiarity with the phenomenon or to achieve new insight into it. To portray accurately the characteristics of a particular individual situation or group. To determine the fre8uency with which something occur.F

69

S$-#$1$,(#,e o1 Re&e(r,*
'esearch provides the basis for all government policies in our economic system. "t has its special significance in solving various operational and planning issues of business and industry. 3or professional in research methodology research may mean a source of live hood.

Re&e(r,* Pro,e&&C

1 OBSER<ATION -road area of research interest identified

> PROBLEM DEFINITION 'esearch %roblem /elineated

C THEORETICAL FRAMEWOR: ;ariables clearly identified and labelled

A &+N+'$T"(N (3 H4%(TH+*+*

6 *)"+NT"3") '+*+$')H /+*"&N

7 /$T$ )(..+)T"(N $N$.4*"* $N/ "NT+'%'+T$T"(N

/ PRELIMINARY DATA .ATHERIN. "nterviewing .iterature *urvey

8 /+/:)T"(N Hypotheses substantiatedQ 'esearch 8uestion answeredQ N( 4es 11 1anager ial decision ma#ing

) 'eport writing

14 'eport %resentat ion

E0

RESEARCH DESI.N8

$t the outset may be noted that there are several ways of studying and tac#ling a problem. The formidable problem that follows the tas# of defining the research problem is the preparation of the design of research pro9ect popularly #nown as research design.

TYPES OF RESEARCH DESI.N

+@%.('$T('4 '+*+$')H /+*"&N

/+*)'"%T";+ 0 /"$&N(*T") '+*+$')H /+*"&N

+@%+'"1+NT$. '+*+$')H /+*"&N

EJPLORATORY RESEARCH DESI.N6

+!ploratory research design is termed as formulating research studies. The main purpose of study is that of formulating a problem. The ma9or emphasis in such study is on discovery of new ideaLs and insights. $s such the research design appropriate for such studies must be fle!ible enough to provide opportunity for considering different aspects of problem.

DESCRIPTI<E AND DIA.NOSTIC RESEARCH DESI.N 6

/escriptive research designs are those design which are concerned with describing the characteristics of particular individual or of the group. ,hereas diagnostic research studies determine the fre8uency with which something occurs or its association with some else. "n descriptive and diagnostic study the researcher must be able to define clearly what he wants to measure and must find ade8uate method for measuring it.

E1

EJPERIMENTAL RESEARCH DESI.N6

These are those studies where the researcher tests the hypothesis of casual relationship between variables. *uch study re8uires procedure that will not only reduce biasness and increase reliability but will permit drawing influence about causality. :sually e!periments meets this re8uirement hence these research designs are prepared for e!periment.

RESEARCH DESI.N IN STUDY

"n the study " will apply 'e&,r$ %$0e re&e(r,* 'e&$-#8 $s 'e&,r$ %$0e re&e(r,* 'e&$-# is the description of state of affairs as it e!ists at present. "n this type of research the researcher has no control over the variablesI he can only report what ahs happened or what is happening.

E6

SAMPLIN. AND SAMPLIN. DESI.N8:

SAMPLIN. PLAN:5
The following factors will be ta#en into consideration within the scope of sampling planC

I8 S(+ !$#- U#$%:

"t defines the target population that will be sampled i.e. it answers who is to be surveyed. "n this study the sampling unit is consumers of three brands of 1.5 ton air conditioners.

II8 S(+ !$#- S$@e:

"t indicates the numbers of people to be surveyed. Though large samples give more reliable results than small samples but due to constraints of time and money the sample si2e was restricted to 100 respondents.

III. S(+ !$#- Te,*#$3ue&:

This refers to the procedure by which the respondents should be chosen. "n my study " used %robability sampling of the following typesC *imple random sample *tratified random sampling )luster =area> sample Muota *ampling +!tensive *ampling The 'esearcher has not ta#en any sample for the study. the data collection is through secondary sources.

EE

RATIO ANALYSIS/B6
MEANIN. OF RATIOC'atio analysis is one of the most powerful tools of financial analysis. "t is the process of establishing and interpreting various ratios. "t is the help of ratios that the financials statements can be analy2ed more clearly and decisions made from such analysis.

USE OF RATIOS:5
The use of ratio analysis is not confined to financial manager only. There are different parties interested in the ratio analysis for #nowing the financial position of firm for different purposes. "n view of various users of ratios there are many types of ratios which can be calculated from the information given in the financial statements. The particular purpose of user determines the particular ratios that might be used for financial analysis.

178 CURRENT RATIO6

This ratio is a rough indication of a firm?s ability to service its current obligations. &enerally the higher the current ratio greater the KcushionK between current obligations and a firm?s ability to pay them. The stronger ratio reflects a numerical superiority of current assets over current liabilities. However the composition and 8uality of current assets is a critical factor in the analysis of an individual firm?s li8uidity. )urrent ratio indicates the e!tent or ability of the organi2ation to meet its obligations8 "t measures short term solvency. Ideal ratio is 2:1

Current Ratio = Current Assets/Current liabilities

EF

CURRENT RATIOS OF POWER .ENERATION COMPANIES

PARTICULARS CURRENT RATIO FOR THE YEAR /446 CURRENT RATIO FOR THE YEAR /447 CURRENT RATIO FOR THE YEAR /448

NTPC LTD POWER LTD RELIANCE

/88A .RID 488C

/8/ 486A

/8C> 486>

CORPORATION

ENER.Y LTD TATA POWER LTD N+4;+." ."&N"T+ )('%N. .T/.

/8) /8)> C8/8

/8C/ /8A6 A8A1

18>) 18)) /881

# C(RENT RATIO " ! 2 1 0 200# 200$ 200% &EAR'

NTPC )TD )TD POWER GRID CORPORATION )TD RE)IANCE ENERG& )TD TATA POWER )TD NE&*E)I )IGNITE CORPN+ )TD+

INTERPRETATION OF CURRENT RATIO: )urrent ration is an indicator of the firms li8uidity and it ability to pay its current obligations in time when they become due. $s a convention the minimum of 6C1 is E5

referred to as a ban#erLs rule of thumb. "n 600A NT%) .T/ have the best ratio among all still it is not up to the mar# is 6C1 in 600G NT%) .T/ again maintained the current ratio and is best among all other companies and it have improved from last year in 600Bthe best current ratio is of T$T$ %(,+' .T/ and is near the rule of thumb

EA

/8 KUIC: RATIO/:
,ui-. Ratio = ,ui-. Assets/,ui-. )iabilities PARTICULARS KUIC: RATIO FOR THE YEAR /446 KUIC: RATIO FOR THE YEAR /447 KUIC: RATIO FOR THE YEAR /448

NTPC LTD LTD POWER .RID CORPORATION LTD RELIANCE ENER.Y LTD TATA LTD N+4;+." ."&N"T+ )('%N. .T/. POWER

18/8 48/C

1817 48//

1.EB 0.E

/8C/ /818 E.EB

187C 1886 F.69

0.GB 1.61 6.05

" ,(IC/ RATIO ! NTPC )TD )TD POWER GRID CORPORATION )TD RE)IANCE ENERG& )TD TATA POWER )TD 200# 200$ 200% NE&*E)I )IGNITE CORPN+ )TD+

2 1 0 &EAR'

EG

INTERPRETATION OF KUIC: RATIO:

:sually a high acid test ratio is an indication that the firm is li8uid and has the ability to meet its current or li8uid liabilities in time and on the other hand a low 8uic# ration represents that the firmLs li8uidity position is not good. $s a rule of thumb 8uic# ratio of 1C1 is considered satisfactory. "n 600A NT%) .T/ have the best ratio among all still it is not up to the mar# is 1C1 in 600G NT%) .T/ again maintained the ratio and is best among all other companies and it have improved from last year in 600Bthe best current ratio is of T$T$ %(,+' .T/ and is near the rule of thumb

0+ NET WOR/ING CAPITA) #

)IA2I)ITIE'

= C(RRENT A''ET' 1 C(RRENT

NET WOR:IN. PARTICULARS NTPC LTD POWER .RID CORPORATION LTD RELIANCE ENER.Y LTD TATA POWER LTD NEY<ELI LI.NITE CORPN8 LTD8 C))C81C /A488/1 A48688A CAPITAL FOR THE YEAR /446 1C6A88) 5A41846

NET WOR:IN. CAPITAL FOR THE YEAR /447 14C/8 51CAA87/

NET WOR:IN. CAPITAL FOR THE YEAR /448 1A>7C87 5/46>88

C))7841 /4688>8 AC668C

1CCA8)6 ///A8/1 C6AC87C

EB

NET WOR/ING CAPITA)

20000 NTPC )TD 1"000 10000 "000 0 3"000 200# 200$ 200% POWER GRIG CORPORATION )TD RE)IANCE ENERG& )TD TATA POWER )TD NE&*E)I )IGNITE CORPN+ )TD+

&EAR'

INTERPRETATION OF NET WOR:IN. CAPITAL ,or#ing capital of the organi2ation is directly related to the current assets li#e debtors cash and stoc# etc. There is an increase in wor#ing capital in comparison to lasts year for the companies NT%) and T$T$ %ower but there is decrease in wor#ing capital in comparison to last year for the companies Niyveli .gnite )orporation .T/ and 'eliance +nergy .T/. %ower grid )orporation .T/ have negative wor#ing capital for all years and should ta#e necessary steps to improve it. ,or#ing capital should be ade8uate for the companies.

E9

ANALYSIS OF LON. TERM FINANCIAL POSITION OR SOL<ENCY

The term solvency refers ton the ability of a concern to meet its long term obligation. The long term indebtedness of a firm includes debentures holders. 3inancial institution providing medium and long term loans and other creditors selling goods on instalment basis .long terms solvency ratios indicate a firm ability to meet the fi!ed interest and costs and repayment schedules associated with its long term borrowings.

18 DEBT EKUITY RATIO1

/ebt e8uity ratio R outsiders funds7shareholders funds

DEBT EKUITY PARTICULARS NTPC LTD POWER .RID CORPORATION LTD RELIANCE ENER.Y LTD TATA POWER LTD NEY<ELI LI.NITE CORPN8 LTD8 487A 48A6 4816 FOR THE YEAR /446 48C1 18A6

DEBT EKUITY FOR THE YEAR /447 48CA 18A)

DEBT EKUITY FOR THE YEAR /448 48A 1887

4861 48A 4816

4868 486 4818

F0

2 1+% 1+# 1+! 1+2 1 0+% 0+# 0+! 0+2 0 200# 200$ 200% &EAR'

NTPC )TD

DE2T E,(IT& RATIO

POWER GRIG CORPORATION )TD RE)IANCE ENERG& )TD TATA POWER )TD

NE&*E)I )IGNITE CORPN+ )TD+

INTERPRETATION OF DEBT EKUITY RATIO:

This ratio calculated to measure the e!tent to which debt financing has been used in business. -eing a manufacturing concern there is more investment in the capital goods. .ower of ratio gives the higher margin of safety. There is no standard norm or rule of thumb regarding this ratio. "t depends upon the policy of the company. Their no mach more ris# in the companies operation therefore they were rely on the shareholders funds

/78 SOL<ENCY RATIO 3:

F1

SOL<ENCY PARTICULARS NTPC LTD POWER .RID CORPORATION LTD RELIANCE ENER.Y LTD TATA POWER LTD NEY<ELI LI.NITE CORPN8 LTD8 1887 /8>> A846 RATIO FOR THE YEAR /446 >847 18A6

SOL<ENCY RATIO FOR THE YEAR /447 /88> 18A>

SOL<ENCY RATIO FOR THE YEAR /448 /87 18CA

/816 /8C A881

/846 /817 C847

$ 'O)*ENC& RATIO # " ! 2 1 0 200# 200$ &EAR' 200% NTPC )TD POWER GRIG CORPORATION )TD RE)IANCE ENERG& )TD TATA POWER )TD NE&*E)I )IGNITE CORPN+ )TD+

F6

INTERPRETATION OF SOL<ENCY RATIO:5

To 9udge the long term financial position of the firm solvency ratio is calculates. This ratio indicates mi! of funds provided by owner and lenders. $s a general rule there should be an appropriate mi! of debt and owners e8uity in financing the firm assets. The relationship depends upon company to company therefore there is no rule of thumb for the solvency ratio. $ll the companies have decreased there solvency ratio as compared to last years which is good for the companies.

FE

ANALYTICAL TOOLS

A78 CO5RRELATION)
T*e ,orre!(%$o# (#(!"&$& re1er& %o %*e %e,*#$3ue& u&e' $# +e(#$#- %*e ,!o&e#e&& o1 %*e re!(%$o#&*$ 2e%wee# %*e 0(r$(2!e&8 T*e&e %wo 0(r$(2!e& (re:5 1. 6. *tatic /ynamic

T*u& w*e#e0er %wo 0(r$(2!e& (re &o re!(%e' %*(% ( ,*(#-e $# %*e 0(!ue o1 o#e $& (,,o+ (#$e' 2" ( ,*(#-e $# %*e 0(!ue o1 o%*erB $# &u,* ( w(" %*(% (# $#,re(&e or 'e,re(&e $# o#e 0(r$(2!e $& (,,o+ (#$e' 2" (# $#,re(&e or 'e,re(&e $# %*e o%*erB %*e# %*e 0(r$(2!e (re &($' %o 2e ,orre!(%e'8 DEFINITION HCorre!(%$o# $& (# (#(!"&$& o1 %*e ,o50(r$(%$o# 2e%wee# %wo or +ore 0(r$(2!e&I A. M. Tuttle HT*e e11e,% o1 ,orre!(%$o# $& %o re'u,e %*e r(#-e o1 u#,er%($#%" o1 o#eL& re'$,%$o#I Tippett

TYPES OF CORRELATION
)orrelation is classified in several different ways. Three of the most important ways areC Po&$%$0e (#' Ne-(%$0e Corre!(%$o#: ,hen two variable @ and 4 move in same direction is %ositive )orrelation and when both variables move in opposite direction that is Negative )orrelation. S$+ !eB P(r%$(! (#' Mu!%$ !e Corre!(%$o#& C ,hen we study the relationship between two variables only that is *imple )orrelation. ,hen three or more variables are ta#en but relationship between any two of the variable is studied assuming other variables as constant that is %artial )orrelation and when we study the relationship among three or more variables that is 1ultiple )orrelation.

FF

 L$#e(r (#' Cur0$5L$#e(r Corre!(%$o# C when the ratio of change of two variables @ and 4 remains constant throughout then they are said to be .inear )orrelated and when the ratio of change between the two variables is not constant but changing then correlation is said to be )urvi-.inear.

DE.REE OF CORRELATION:5
Sr8 No8 1 6 E F 5 De-ree o1 Po&$%$0e Ne-(%$0e -1 S.G5 -etween -.G5 to-1 S.65 -etween -.65

,orre!(%$o# %erfect correlation S1 High /egree of -etween correlation toS1 1oderate /egree of -etween )orrelation .ow /egree )orrelation $bsence )orrelation

toS.G5 of -etween 0 toS.65 of 0

to-.G5 -etween 0 to-.65 0

COEFFICIENTOF CORRELATION IS .I<EN BY:

MJ8Y RN OMJP/8MYP/

178NTPC LTD1C

F5

,(ARTER 7ar30$ 9un30$ 'e430$ De-30$ 7ar30% 9un30% 'e430% De-30%

P/E ratio 1%+$8 1%+ " 18+#1 2#+! 21+81 1%+!8 20+ % 20+08

EP' $+88 %+ 8+% 8+!# %+88 %+2 %+! 8

Correlations:
NTPC(P/E) NTPC(P/E) Pearson Correlation Sig. (2-taile ) N NTPC(EPS) Pearson Correlation Sig. (2-taile ) N 1 . " .565 .1!5 " NTPC(EPS) .565 .1!5 " 1 . "

Gra45:3
2".##

26.##

2!.##

0 E / 6 C P T N

22.##

2#.##

1".## ".## ".5# $.## $.5# 1#.##

NTPC6EP'0

INTERPRETATION:5 There is moderate degree of positive correlation between NT%) %7+ and NT%) +%*. ,ith 15 1ovement in NT%) %7+ there is movement of 0.5A55 in NT%) +%*.

/78TATA POWER1C

FA

,(ARTER 7ar30$ 9un30$ 'e430$ De-30$ 7ar30% 9un30% 'e430% De-30%

P/E ratio 1%+"$ 22+#" 2%+"" !#+$" 28+$ 2#+$ 22+8 20+%$

EP' 2$+! 28+#1 28+8" 1+!# 8+!2 8+! 8+"1 "+%8

Correlations T%T%(P/E) Pearson Correlation Sig. (2-taile ) N Pearson Correlation Sig. (2-taile ) N T%T%(P/E) 1 . " -.##$ .$"! " T%T%(EPS) -.##$ .$"! " 1 . "

T%T%(EPS)

Gra45:3
5#.##

!#.##

0 E / P 6 A T

&#.##

2#.##

26.##

2".##

&#.##

&2.##

&!.##

&6.##

&".##

!#.##

TATA6EP'0

INTERPRETATION: There is low degree of negative correlation between T$T$ %7+ and T$T$ +%*. ,ith 15 1ovement in T$T$ %7+ there is movement of 0.0095 in T$T$ +%*.

>78 NEY<ELI LI.NITE CORPORATION LTD81C

FG

,(ARTER 7ar30$ 9un30$ 'e430$ De-30$ 7ar30% 9un30% 'e430% De-30%

P/E ratio 21+2$ 1%+" 2"+#2 "%+#2 1#+! 12+!" 10+1 %+2"

EP' 2+ $ + " !+11 !+!2 $+ 1 %+"% %+ 1 %+0

Correlations N()(P/E) Pearson Correlation Sig. (2-taile ) N Pearson Correlation Sig. (2-taile ) N N()(P/E) 1 . " -.5## .2#' " N()(EPS) -.5## .2#' " 1 . "

N()(EPS)

Gra45:3
6#.##

5#.##

!#.##

&#.##

N E / P 6 ) & 0
2#.## 1#.## #.## 2.## &.## !.## 5.## 6.## '.## ".## $.##

N&)6EP'0

INTERPRETATION: There is 1oderate degree of negative correlation between N4. %7+ and N4. +%*. ,ith 15 1ovement in N4. %7+ there is movement of 0.55 in N4. +%*.

FB

C78POWER.RID1C
,(ARTER 'e430$ De-30$ 7ar30% 9un30% 'e430% De-30% P/E ratio 2"+2% !0+!% 2"+!1 22+1 2 +8 2 +!2 EP' +2! +!! +%" +"1 +"8 +""

Correlations P*+E,(P/E) Pearson Correlation Sig. (2-taile ) N Pearson Correlation Sig. (2-taile ) N P*+E,(P/E) 1 . 6 -.2#& .6$$ 6 P*+E,(EPS) -.2#& .6$$ 6 1 . 6

P*+E,(EPS)

Gra45:3
!#.##

&5.##

&#.##

0 / 6 R E W O P
25.## 2#.## &.2# &.&# &.!# &.5# &.6# &.'# &."# &.$#

POWER6EP'0

INTERPRETATION:5

F9

There is low degree of negative correlation between %(,+'&'"/ %7+ and %(,+'&'"/ +%*. ,ith 15 1ovement in %(,+'&'"/ %7+ there is movement of 0.65 in %(,+'&'"/ +%*.

A78RELIANCE ENER.Y LTD1C

,(ARTER 9un30% 'e430% De-30% P/E ratio !!+2$ 1$1+88 100+#! EP' 0+! 0+%8 1+18

Correlations ,E)-%NC E(P/E) 1 . 6 -.''! .#'1 6 ,E)-%NC E(EPS) -.''! .#'1 6 1 . 6

,E)-%NCE(P/E)

,E)-%NCE(EPS)

Pearson Correlation Sig. (2-taile ) N Pearson Correlation Sig. (2-taile ) N

Gra45:3
'##.## 6##.## 5##.## !##.## &##.## 2##.## 1##.## #.!# #.6# #."# 1.## 1.2#

0 / P 6 C N A I ) E R

RE)IANCE6EP'0

50

INTERPRETATION:5 There is high degree of negative correlation between '+."$N)+ +N+'&4 %7+ and '+."$N)+ +N+'&4 +%*. ,ith 15 1ovement in '+."$N)+ +N+'&4 %7+ there is movement of 0.GG5 in '+."$N)+ +N+'&4 +%*.

B78 LINEAR RE.RESSION LINE11

.OODNESS OF FIT COEFFICIENTS:
T*e ,oe11$,$e#% o1 ,orre!(%$o# 6R7B which is the s8uare-root of the coefficient of determinationI T*e ,oe11$,$e#% o1 'e%er+$#(%$o# 6R5&3u(re or RQ7B allows to evaluate the proportion of the variability of the dependent variable that is e!plained by the selected e!planatory variables. This coefficient ranges between 0 to 1. The closer the model to 1 the better the model. *ince the value lies very close to 1 therefore the model is 8uite befitting.

T*e (';u&%e' ,oe11$,$e#% o1 'e%er+$#(%$o# 6or (';u&%e' RQ7 which writes 'T6 R U=n-1> '6-1V7=n-p-1> ,here NnNis the number of observations and NpL the number of e!planatory

T*e &u+ o1 &3u(re& o1 re&$'u(!& 6SSR7B also named sum of s8uares of errors

=**+> which writes ,here yi is the observed value and Wi is the predicted value.

51

10+NTPC Re:ression:
b *ariables Entered/Re;o<ed

/o el 1

0aria1les Entere NTPC(P, -CE). NTPC(EP a S)

0aria1les ,emove .

/et2o Enter

a. %ll re34este varia1les entere . 1. 5e6en ent 0aria1le: NTPC(P/E)

b 7odel 'u;;ar=

/o el 1

, .$$$a

, S34are .$$$

% 74ste , S34are .$$"

St . Error o8 t2e Estimate .1#6!&

a. Pre ictors: (Constant). NTPC(P, -CE). NTPC(EPS) 1. 5e6en ent 0aria1le: NTPC(P/E)

ANO*Ab /o el 1 S4m o8 S34ares !$.65' .#5' !$.'1! 8 2 5 ' /ean S34are 2!."2$ .#11 9 21$2.#22 Sig. .###a

,egression ,esi 4al Total

a. Pre ictors: (Constant). NTPC(P, -CE). NTPC(EPS) 1. 5e6en ent 0aria1le: NTPC(P/E)

56

a Coe>>i-ients

/o el 1

(Constant) NTPC(EPS) NTPC(P, -CE)

;nstan ar i<e Coe88icients : St . Error 1$.&6$ .65# -2.#"" .1#2 .1#" .##2

Stan ar i<e Coe88icients :eta -.5#" 1.&5&

t 2$."15 -2#.512 5!.6&1

Sig. .### .### .###

a. 5e6en ent 0aria1le: NTPC(P/E)

C5arts:3 LINE OF BEST FIT

'-atter4lot

De4endent *ariable: NTPC6P/E0

2 1 # -1 -2 -& , S3 )inear = #.6#6 -!

0 P 6 l D ? d u t ' n o i s r : e R

l a u d i s e R

-5 -1.# -#.5 #.# #.5 1.# 1.5

Re:ression 'tandardi?ed Residual

INTERPRETATION: ' *8uare the coefficient of determination is the s8uaredX value of the multiple correlation coefficient. "t shows that about all the variation in %7+ratio is e!plained by the model. 5E

The significance value of the 3 statistic is less than 0.05 which means that the variation e!plained by the model is not due to chance Here cofficent of independent variables=+%* %'")+> are -6.0BB and .10B respectively so we can say that regression line will be %7+ R 19.EG - 6.0BB+%* S .10B%'")+

/78TATA POWER Re:ression

b *ariables Entered/Re;o<ed

/o el 1

0aria1les Entere T%T%(P,-C E). a T%T%(EPS)

0aria1les ,emove .

/et2o Enter

a. %ll re34este varia1les entere . 1. 5e6en ent 0aria1le: T%T%(P/E)

b 7odel 'u;;ar=

/o el 1

, .$$'a

, S34are .$$5

% 74ste , S34are .$$&

St . Error o8 t2e Estimate .'!#&2

a. Pre ictors: (Constant). T%T%(P,-CE). T%T%(EPS) 1. 5e6en ent 0aria1le: T%T%(P/E)

ANO*Ab /o el 1 S4m o8 S34ares 5!1.&#! 2.'!# 5!!.#!! 8 2 5 ' /ean S34are 2'#.652 .5!" 9 !$&."&# Sig. .###a

,egression ,esi 4al Total

a. Pre ictors: (Constant). T%T%(P,-CE). T%T%(EPS) 1. 5e6en ent 0aria1le: T%T%(P/E)

5F

a Coe>>i-ients

/o el 1

(Constant) T%T%(EPS) T%T%(P,-CE)

;nstan ar i<e Coe88icients : St . Error 2!.'&! 1.$1& -.'"5 .#61 .#&2 .##1

Stan ar i<e Coe88icients :eta -.!!$ 1.#$#

t 12.$2$ -12.$&$ &1.!26

Sig. .### .### .###

a. 5e6en ent 0aria1le: T%T%(P/E)

C5arts: LINE OF BEST FIT

'-atter4lot

De4endent *ariable: TATA6P/E0

l a u d i s e R

-1

, S3 )inear = #.$5$ -2

0 P 6 l D ? d u t ' n o i s r : e R

-1.5

-1.#

-#.5

#.#

#.5

1.#

Re:ression 'tandardi?ed Residual

INTERPRETATION:

55

' *8uare the coefficient of determination is the s8uaredX value of the multiple correlation coefficient. "t shows that about all the variation in %7+ratio is e!plained by the model.

The significance value of the 3 statistic is less than 0.05 which means that the variation e!plained by the model is not due to chance Here cofficent of independent variables=+%* %'")+> are -6.0BB and .10B respectively so we can say that regression line will be %7+ R 6F.GEF - .GB5+%* S .0E6%'")+

>78 NEY<ELI LI.NITE CORPORATION LTD8 Re:ression:3

b *ariables Entered/Re;o<ed

/o el 1

0aria1les Entere N()(P,-C E). a N()(EPS)

0aria1les ,emove .

/et2o Enter

a. %ll re34este varia1les entere . 1. 5e6en ent 0aria1le: N()(P/E)

b 7odel 'u;;ar=

/o el 1

, .$$!a

, S34are .$"$

% 74ste , S34are .$"!

St . Error o8 t2e Estimate 2.#&52'

a. Pre ictors: (Constant). N()(P,-CE). N()(EPS) 1. 5e6en ent 0aria1le: N()(P/E)

ANO*Ab /o el 1 S4m o8 S34ares 1'$6.56' 2#.'12 1"1'.2'$ 8 2 5 ' /ean S34are "$".2"! !.1!2 9 216."56 Sig. .###a

,egression ,esi 4al Total

a. Pre ictors: (Constant). N()(P,-CE). N()(EPS) 1. 5e6en ent 0aria1le: N()(P/E)

5A

a Coe>>i-ients

/o el 1

(Constant) N()(EPS) N()(P,-CE)

;nstan ar i<e Coe88icients : St . Error 16."15 2.&2# -&.#"! .&#" .211 .#12

Stan ar i<e Coe88icients :eta -.!'$ ."6#

t '.2!' -1#.#26 1".##2

Sig. .##1 .### .###

a. 5e6en ent 0aria1le: N()(P/E)

C5arts:3 LINE OF BEST FIT

'-atter4lot

De4endent *ariable: N&)6P/E0

!

l a u d i s e R
-2

, S3 )inear = #.'51

0 s r P 6 l D ? i n e d u t ' o : R

-! -2 -1 # 1

Re:ression 'tandardi?ed Residual

INTERPRETATION:

5G

' *8uare the coefficient of determination is the s8uaredX value of the multiple correlation coefficient. "t shows that about all the variation in %7+ratio is e!plained by the model.

The significance value of the 3 statistic is less than 0.05 which means that the variation e!plained by the model is not due to chance Here cofficent of independent variables=+%* %'")+> are -6.0BB and .10B respectively so we can say that regression line will be %7+ R 1A.B1 - E.0BF+%* S .611%'")+

C78POWER.RID Re:ression
b *ariables Entered/Re;o<ed

/o el 1

0aria1les Entere P*+E,(P ,-CE). P*+E,(E a PS)

0aria1les ,emove .

/et2o Enter

a. %ll re34este varia1les entere . 1. 5e6en ent 0aria1le: P*+E,(P/E)

b 7odel 'u;;ar=

/o el 1

, .$$$a

, S34are .$$$

% 74ste , S34are .$$"

St . Error o8 t2e Estimate .2$$#2

a. Pre ictors: (Constant). P*+E,(P,-CE). P*+E,(EPS) 1. 5e6en ent 0aria1le: P*+E,(P/E)

5B

ANO*Ab /o el 1 S4m o8 S34ares 2&2.'55 .26" 2&&.#2& 8 2 & 5 /ean S34are 116.&'' .#"$ 9 1&#1.5!2 Sig. .###a

,egression ,esi 4al Total

a. Pre ictors: (Constant). P*+E,(P,-CE). P*+E,(EPS) 1. 5e6en ent 0aria1le: P*+E,(P/E)

a Coe>>i-ients

/o el 1

(Constant) P*+E,(EPS) P*+E,(P,-CE)

;nstan ar i<e Coe88icients : St . Error 1$.2&6 2.!55 -5.2'6 .6'1 .2'& .##5

Stan ar i<e Coe88icients :eta -.15! .$"#

t '."&6 -'."61 !$.$55

Sig. .##! .##! .###

a. 5e6en ent 0aria1le: P*+E,(P/E)

C5arts:3 LINE OF BEST FIT

59

'-atter4lot

De4endent *ariable: POWER6P/E0

!

-2

l a u d i s e R

-!

-6 , S3 )inear = #."'' -"

0 P 6 l D ? d u t ' n o i s r : e R

-1# -1.2 -#.$ -#.6 -#.& #.# #.& #.6

Re:ression 'tandardi?ed Residual

INTERPRETATION: ' *8uare the coefficient of determination is the s8uaredX value of the multiple correlation coefficient. "t shows that about all the variation in %7+ratio is e!plained by the model. The significance value of the 3 statistic is less than 0.05 which means that the variation e!plained by the model is not due to chance Here cofficent of independent variables=+%* %'")+> are -6.0BB and .10B respectively so we can say that regression line will be %7+ R 19.6F - 5.6GA+%* S .6GE%'")+s

"0+RE)IANCE ENERG& )TD+

A0

Re:ression
b *ariables Entered/Re;o<ed

/o el 1

0aria1les Entere ,E)-%NCE (EPS). ,E)-%NCE a (P,-CE)

0aria1les ,emove .

/et2o Enter

a. %ll re34este varia1les entere . 1. 5e6en ent 0aria1le: ,E)-%NCE(P/E)

b 7odel 'u;;ar=

/o el 1

, .$"2a

, S34are .$6!

% 74ste , S34are .$!#

St . Error o8 t2e Estimate !6.11&&6

a. Pre ictors: (Constant). ,E)-%NCE(EPS). ,E)-%NCE(P,-CE) 1. 5e6en ent 0aria1le: ,E)-%NCE(P/E) ANO*Ab /o el 1 S4m o8 S34ares 1'#5#&.1 6&'$.&26 1'6""2.! 8 2 & 5 /ean S34are "5251.5&1 2126.!!2 9 !#.#$1 Sig. .##'a

,egression ,esi 4al Total

a. Pre ictors: (Constant). ,E)-%NCE(EPS). ,E)-%NCE(P,-CE) 1. 5e6en ent 0aria1le: ,E)-%NCE(P/E)

a Coe>>i-ients

/o el 1

(Constant) ,E)-%NCE(P,-CE) ,E)-%NCE(EPS)

;nstan ar i<e Coe88icients : St . Error 16'.52" 1#!.566 1."#5 .&2' -265."$2 "1.!6'

Stan ar i<e Coe88icients :eta .'#2 -.!16

t 1.6#2 5.51& -&.26!

Sig. .2#' .#12 .#!'

a. 5e6en ent 0aria1le: ,E)-%NCE(P/E)

C5arts:3
LINE OF BEST FIT

A1

'-atter4lot De4endent *ariable: RE)IANCE6P/E0

! & 2 1 #

, S3 )inear = #.$25

? d u t ' n o i s r : e R D a u i R 0 s r P 6 d t l e

-1 -#.5 #.# #.5

Re:ression 'tandardi?ed Residual

INTERPRETATION: ' *8uare the coefficient of determination is the s8uaredX value of the multiple correlation coefficient. "t shows that about all the variation in %7+ratio is e!plained by the model. The significance value of the 3 statistic is less than 0.05 which means that the variation e!plained by the model is not due to chance Here cofficent of independent variables=+%* %'")+> are -6A5.B9 and 1.B1 respectively so we can say that regression line will be %7+ R 1AG.5E S 1.B1 %'")+ - 6A5.B9+%*

C78 TREND ANALYSIS):

A6

178NTPC LTD
DE<IATION 6J7 51 4 1 NN> NET PROFIT 6Y7 A14C81 A)/68A 6)718A MY N 1844/81 J8Y 5A14C81 4 6)718A MJ8Y N 18678C JP/ 1 4 1 MJP/ N /

The e8uation of the straight line trend is 4R a S b@ *ince @R0 a R 47 N b R @47 !6 *ubstituting values we get a R1B006.1 7E RA000.GI b R 1BAG.F76 R 9EE.G Thus the straight line trend is 4R A000.GS9EE.G=@> (rigin R 6005 @ unit R 1 4ear OUTCOMES ARE: EJPECTED NET PROFIT A467 644487 6)>C8C 786881 884188 )7>A8A NET PROFIT 6OBSER<ED <ALUE7

YEARS /446 /447 /448 /44) /414 /411

A14C81 A)/68A 6)718A

555555555555 555555555555 555555555555

AE

TREND ANA)&'I' O@ NTPC )TD

12### 1#### "### 6### !### 2### # 2##6 2##' 2##" 2##$ 2#1# 2#11 &EAR'

PRO@IT

E>PECTE5 NET P,*9-T NET P,*9-T(*:SE,0E5 0%);ES)

INTERPRETATION:
The trend analysis shows that the profit of the company is increasing and it shows that it is going to increase for the ne!t years. There is very less difference in the e!pected net profit and observed net profit. This shows that the company is growing according to the trend.

/78

POWER .RID CORPORATION LTD

DE<IATION 6J7 51 4 1 NN> NET PROFIT 6Y7 8>681 1/1181 147/8> MY N >11)8A J8Y 58>681 4 147/8> MJ8Y N />68/ JP/ 1 4 1 MJP/ N /

The e8uation of the straight line trend is 4R a S b@ *ince @R0 a R 47 N b R @47 !6

*ubstituting values we get a RE119.5 7E R10E9.BI b R 6EA.676 R 11B.1

AF

Thus the straight line trend is 4R E119.5S11B.1=@> (rigin R 6005 @ unit R 1 4ear OUTCOMES ARE: EJPECTED NET PROFIT )/187 14>)88 11A78) 1/76 1>)C81 1A1/8/ NET PROFIT 6OBSER<ED <ALUE7

YEARS /446 /447 /448 /44) /414 /411

8>681 1/1181 147/8>

555555555555 555555555555 555555555555

TREND ANA)&'I' O@ POWER GRID CORPORATION )TD

2### 15## 1### 5## # 2##6 2##' 2##" 2##$ 2#1# 2#11 &EAR'

PRO@IT

E>PECTE5 NET P,*9-T NET P,*9-T(*:SE,0E5 0%);ES)

INTERPRETATION:
The trend analysis shows that the profit of the company has increased in 600A and decreased in 600G. There is very less difference in the e!pected net profit and observed net profit. This shows that the company is growing according to the trend. >78

RELIANCE ENER.Y LTD8

DE<IATION

NET PROFIT

J8Y

JP/

A5

6J7 51 4 1 NN>

6Y7 A/C87 6/)8/ 66C8C MY N 18188>

5A/C87 4 66C8C MJ8Y N 1>)8C

1 4 1 MJP/ N /

The e8uation of the straight line trend is 4R a S b@ *ince @R0 a R 47 N b R @47 !6 *ubstituting values we get a R1B1B.E 7E RA0A.1I b R 1E9.F76 R A9.B5 Thus the straight line trend is 4R 1B1B.ESA9.B5=@> (rigin R 6005 @ unit R 1 4ear OUTCOMES ARE: EJPECTED NET PROFIT A>68/A 64681 67A8)A 7CA88 81A86A 88A8A NET PROFIT 6OBSER<ED <ALUE7

YEARS /446 /447 /448 /44) /414 /411

A/C87 6/)8/ 66C8C

555555555555 555555555555 555555555555

AA

TREND ANA)&'I' O@ RE)IANCE ENERG& )TD

1### "## PRO@IT 6## !## 2## # 2##6 2##' 2##" 2##$ 2#1# 2#11 &EAR' E>PECTE5 NET P,*9-T NET P,*9-T(*:SE,0E5 0%);ES)

INTERPRETATION:
The trend analysis shows that the profit of the company has increased in 600G and decreased in 600B. There is very less difference in the e!pected net profit and observed net profit. This shows that the company is growing according to the trend.

C78

TATA POWER LTD8

DE<IATION 6J7 51 4 1 NN>

NET PROFIT 6Y7 /6/8/ >)18> C/>8C MY N 14768)

J8Y 5/6/8/ 4 C/>8C MJ8Y N 1618/

JP/ 1 4 1 MJP/ N /

The e8uation of the straight line trend is 4R a S b@ *ince @R0 a R 47 N b R @47 !6 *ubstituting values we get a R10GA.9 7E RE5B.9I b R 1A1.676 R B0.A

AG

Thus the straight line trend is 4R E5B.9SB0.A=@> (rigin R 6005 @ unit R 1 4ear OUTCOMES ARE: EJPECTED NET PROFIT /788> >A88) C>)8A A/481 64487 6818> NET PROFIT 6OBSER<ED <ALUE7

YEARS /446 /447 /448 /44) /414 /411

/6/8/ >)18> C/>8C

555555555555 555555555555 555555555555

TREND ANA)&'I' O@ TATA POWER )TD

"## 6## PRO@IT !## 2## # 2##6 2##' 2##" 2##$ 2#1# 2#11 &EAR' E>PECTE5 NET P,*9-T NET P,*9-T(*:SE,0E5 0%);ES)

INTERPRETATION:
The trend analysis shows that the profit of the company has increased in 600A and decreased in 600G. There is very less difference in the e!pected net profit and observed net profit. This shows that the company is growing according to the trend.

A78 NEY<ELI LI.NITE CORPORATION LTD8

AB

DE<IATION 6J7 51 4 1 NN>

NET PROFIT 6Y7 14A48A AAC8> A>88) MY N /1C>87

J8Y 514A48A 4 A>88) MJ8Y N 8A1186

JP/ 1 4 1 MJP/ N /

The e8uation of the straight line trend is 4R a S b@ *ince @R0 a R 47 N b R @47 !6 *ubstituting values we get a R61FE.G 7E RG1F.5I b R -511.A76 R -655.B Thus the straight line trend is 4RG1F.5 SY-655.B=@>Z (rigin R 6005 @ unit R 1 4ear OUTCOMES ARE: EJPECTED NET PROFIT )748> 71C8A CA887 /4/8) 5A/8) 5>4887 NET PROFIT 6OBSER<ED <ALUE7

YEARS /446 /447 /448 /44) /414 /411

14A48A AAC8> A>88)

555555555555 555555555555 555555555555

A9

TREND ANA)&'I' O@ NE&*E)I )IGNITE CORPORATION )TD

15## PRO@IT 1### 5## # -5## 2##6 2##' 2##" 2##$ 2#1# 2#11 E>PECTE5 NET P,*9-T NET P,*9-T(*:SE,0E5 0%);ES)

&EAR'

INTERPRETATION:
The trend analysis shows that the profit of the company has decreased in 600G and increased in 600B. There is very less difference in the e!pected net profit and observed net profit. This shows that the company is growing according to the trend.

G0

DATA COLLECTION8
$fter the research problem has been identified and selected the ne!t step is to gather the re8uisite data. ,hile deciding about the method of data collection to be used for the researcher should #eep in mind two types of data i.e. primary and secondary.

T4%+* (3 /$T$

%'"1$'4 /$T$

*+)(N/'4 /$T$

Pr$+(r" D(%(:
The primary data are those which are collected afresh and for the first time and thus happened to be original in character. ,e can obtain primary data either through observation or through direct communication with respondent in one form or another or through personal interview.

METHODS OF PRIMARY DATA

(-*+';$T"(N 1+TH(/

"NT+';"+, 1+TH"(/

M:+T"(N$"'+ 1+TH(/

*)H+/:.+ 1+TH(/

Se,o#'(r" D(%(

G1

The secondary data on the other hand are those which have already been collected by someone else and which have already been passed through the statistical processes. ,hen the researcher utili2es secondary data then he has to loo# into various sources from where he can obtain them. 3or eg. -oo#s maga2ine newspaper "nternet publications and reports.

Me%*o'& U&e' I# S%u'"

" collected the data through the secondary sources such as. -oo#s 1aga2ines Newspapers "nternet

HYPOTHESIS TESTIN.)B14
G6

%5%e&%:
t-test is a small sample test. "t was developed by ,illiam &osset in 190B. He published this test under the pen name of [*tudentO. Therefore it is #nown as *tudentLs t-test.

!$,(%$o#& o1 %5%e&%: Te&% o1 *" o%*e&$& (2ou% %*e o u!(%$o# +e(#8 Te&% o1 *" o%*e&$& (2ou% %*e '$11ere#,e 2e%wee# %*e %wo +e(#& $# ,(&e o1 $#'e e#'e#% &(+ !e&8 Te&% o1 *" o%*e&$& (2ou% %*e '$11ere#,e 2e%wee# %*e %wo +e(#& $# ,(&e o1 'e e#'e#% &(+ !e&8 Te&% o1 *" o%*e&$& (2ou% (# o2&er0e' ,oe11$,$e#% o1 ,orre!(%$o#8

TEST OF HYPOTHESIS ABOUT THE POPULATION MEAN

We u&e %5%e&% (#' %*e ( ro r$(%e %e&% &%(%$&%$, % %o u&e' $& :

GE

178NTPC LTD1/
NET WOR:IN. PARTICULARS NTPC LTD CAPITAL FOR THE YEAR /446 1C6A88) NET WOR:IN. CAPITAL FOR THE YEAR /447 14C/8 NET WOR:IN. CAPITAL FOR THE YEAR /448 1A>7C87

T*e #u!! (#' (!%er#(%$0e *" o%*e&$& %o 2e %e&%e' $& (& 1o!!ow&C Nu!! H" o%*e&$& HoC ,or#ing capital of E years =600A-600B> is 16900 i.e. R N 1/)44 A!%er#(%$0e H" o%*e&$& H1: R \ 1/)44 T5TEST
One3'a;4le 'tatisti-s N ?c(nt6c) & /ean 1&!'".2# St . 5eviation 266&.$#'1' St . Error /ean 15&".##"

One3'a;4le Test Test 0al4e = # $5@ Con8i ence -nterval o8 t2e 5i88erence )o?er ;66er 6"6#.6"'' 2##$5.'1

?c(nt6c)

t ".'6&

8 2

Sig. (2-taile ) .#1&

/ean 5i88erence 1&!'".2##

INTERPRETATION:
S$#,e %*e 0(!ue 1or %wo %r$(! &$-#$1$,(#,e $& !e&& %*(# 84A6 S84A7B %*e# '$11ere#,e 2e%wee# %*e +e(# $& &$-#$1$,(#% (#' ,o#,!u'e %*(% wor?$#- ,( $%(! o1 > "e(r& 6/4465 /4487 $& 1/)44.

GF

/78 POWER .RID CORPORATION LTD1>

YEARS /446 /447 /448

NET PROFIT 8>681 1/1181 147/8>

T*e #u!! (#' (!%er#(%$0e *" o%*e&$& %o 2e %e&%e' $& (& 1o!!ow&C Nu!! H" o%*e&$& HoC N+T %'(3"T of E years =600A-600B> is 1000 i.e. R N 1444 A!%er#(%$0e H" o%*e&$& H1: R \ 1444

T3Test
One3'a;4le 'tatisti-s N 6ro8it(6o?er) & /ean 1#&$."&&& St . 5eviation 1"$.5$6!5 St . Error /ean 1#$.!6&56

One3'a;4le Test Test 0al4e = # $5@ Con8i ence -nterval o8 t2e 5i88erence )o?er ;66er 56"."!$6 151#."1'#

6ro8it(6o?er)

t $.!$$

8 2

Sig. (2-taile ) .#11

/ean 5i88erence 1#&$."&&&

INTERPRETATION
S$#,e %*e 0(!ue 1or %wo %r$(! &$-#$1$,(#,e $& !e&& %*(# 84A6 S84A7B %*e# '$11ere#,e 2e%wee# %*e +e(# $& &$-#$1$,(#% (#' ,o#,!u'e %*(% wor?$#- ,( $%(! o1 > "e(r& 6/4465 /4487 $& 1444

>78 TATA POWER LTD1>8

G5

NET WOR:IN. PARTICULARS TATA LTD POWER /A488/1 CAPITAL FOR THE YEAR /446

NET WOR:IN. CAPITAL FOR THE YEAR /447 /4688>8

NET WOR:IN. CAPITAL FOR THE YEAR /448 ///A8/1

T*e #u!! (#' (!%er#(%$0e *" o%*e&$& %o 2e %e&%e' $& (& 1o!!ow&C Nu!! H" o%*e&$& HoC ,or#ing )apital of E years =6005-600G> is 6650 i.e. R N //A4 A!%er#(%$0e H" o%*e&$& H1: R \ //A4

T3Test
One3'a;4le 'tatisti-s N ?c(tata) & /ean 226'.266' St . 5eviation 222.$1#'# St . Error /ean 12".6$'55

One3'a;4le Test Test 0al4e = # $5@ Con8i ence -nterval o8 t2e 5i88erence )o?er ;66er 1'1&.525" 2"21.##'5

?c(tata)

t 1'.61'

8 2

Sig. (2-taile ) .##&

/ean 5i88erence 226'.266'

INTERPRETATION
S$#,e %*e 0(!ue 1or %wo %r$(! &$-#$1$,(#,e $& !e&& %*(# 84A6 S84A7B %*e# '$11ere#,e 2e%wee# %*e +e(# $& &$-#$1$,(#% (#' ,o#,!u'e %*(% wor?$#- ,( $%(! o1 > "e(r& 6/4465 /4487 $& //A4

C78 NEY<ELI LI.NITE CORPORATION LTD1>8

GA

NET WOR:IN. PARTICULARS CAPITAL FOR THE YEAR /446 NEY<ELI LI.NITE CORPN8 LTD8

NET WOR:IN. CAPITAL FOR THE YEAR /447

NET WOR:IN. CAPITAL FOR THE YEAR /448

A48688A

AC668C

C6AC87C

T*e #u!! (#' (!%er#(%$0e *" o%*e&$& %o 2e %e&%e' $& (& 1o!!ow&C Nu!! H" o%*e&$& HoC ,or#ing )apital of E years =600A-600B> is 5050 i.e. R N A4A4 A!%er#(%$0e H" o%*e&$& H1: R \ A4A4

T3Test
One3'a;4le 'tatisti-s N ?c(nyl) & /ean 5#6$.21&& St . 5eviation !#6.1#6#& St . Error /ean 2&!.!65!&

One3'a;4le Test Test 0al4e = # $5@ Con8i ence -nterval o8 t2e 5i88erence )o?er ;66er !#6#.&$## 6#'".#&66

?c(nyl)

t 21.62#

8 2

Sig. (2-taile ) .##2

/ean 5i88erence 5#6$.21&&

INTERPRETATION
S$#,e %*e 0(!ue 1or %wo %r$(! &$-#$1$,(#,e $& !e&& %*(# 84A6 S84A7B %*e# '$11ere#,e 2e%wee# %*e +e(# $& &$-#$1$,(#% (#' ,o#,!u'e %*(% wor?$#- ,( $%(! o1 > "e(r& 6/4465 /4487 $& A4A4

LIMITATIONS OF STUDY

GG

.imitations are those difficulties which are faced by the researcher while his research wor#s. No study is without limitations whether it is of any type 0 so my study does have certain limitations

RESOURCE CONSTRAINT
$vailability of data was a constraint analysis was made only with data which is available and also there are some data 0 information which was re8uired but not made available due to secret records. COMPLEJ CALCULATIONS )alculations were typical and in crores that analysis was little difficult

SECONDARY DATA
$ll the information available was from secondary sources and data was very vast to analy2e properly 0 accurately

WIDE AREA TO STUDY

*tudy being conducted was very wide 0 analysis re8uire e!pertise #nowledge 0 s#ills which was lac#ing TIME CONSTRAINTS The time period for the study is very less because the study is so comple!.

RESULT & DISCUSSIONS

GB

178 FINANCIAL POSITION OF THE COMPANIES SHORT TERM FINANCIAL POSITION:

The current ratio of T$T$ %ower .T/ is good in comparison to other companies for NT%) and Neyveli .ignite is high then 6C1 and ratio of %ower &rid and 'eliance +nergy .T/ is lower then 6C1 The 8uic# ratio of T$T$ %ower .T/ is good in comparison to other companies but it is more then 1C1. 'atio of NT%) and Neyveli .ignite is high then 1C1 and ratio of %ower &rid and 'eliance +nergy .T/ is lower then 1C1 which is not good *hort term financial position of T$T$ %ower and NT%) .T/ is good as in comparison of other companies LON. TERM FINANCIAL POSTION The debt e8uity ratio of %ower &rid )orporation .T/ is 1.BG which is 8uite good in comparison to other companies. Neyveli .ignite has very low debt e8uity ratio this is not good for the company .ong term financial position of %ower &rid )orporation is good as in comparison to other companies

/78 CORRELATION
DE.REE OF POSITI<E CORRELATION The companies having degree of positive of correlation for the year 600A-0B are NT%) .T/ with moderate positive correlation 0.5A5 between %7+ and +%*. T$T$ %ower .T/ with correlation 0.9G9 between sales and profit Neyveli .ignite )orporation .T/ with correlation 0.99A between sales and profit

DE.REE OF NE.ATI<E CORRELATION The companies having degree of negative correlation for the year 600A-0B are G9

T$T$ %(,+' .T/ with low negative correlation 0.09 between %7+ and +%*. %(,+' &'"/ .T/ with high negative correlation 0.6 between %7+ and +%*. N+4;+." ."&N"T+ )('%('$T"(N .T/ with moderate negative correlation 0.5 between %7+ and +%*. '+."$N)+ %(,+' with low negative correlation 0.6 between %7+ and +%*.

>78RE.RESSION NTPC INTERPRETATION: ' *8uare the coefficient of determination is the s8uaredX value of the multiple correlation coefficient. "t shows that about all the variation in %7+ratio is e!plained by the model. The significance value of the 3 statistic is less than 0.05 which means that the variation e!plained by the model is not due to chance Here cofficent of independent variables=+%* %'")+> are -6.0BB and .10B respectively so we can say that regression line will be %7+ R 19.EG - 6.0BB+%* S .10B%'")+ TATAPOWER INTERPRETATION: ' *8uare the coefficient of determination is the s8uaredX value of the multiple correlation coefficient. "t shows that about all the variation in %7+ratio is e!plained by the model. The significance value of the 3 statistic is less than 0.05 which means that the variation e!plained by the model is not due to chance Here cofficent of independent variables=+%* %'")+> are -6.0BB and .10B respectively so we can say that regression line will be %7+ R 6F.GEF - .GB5+%* S .0E6%'")+

NEY<ELI LI.NITE CORPORATION LTD INTERPRETATION:

B0

' *8uare the coefficient of determination is the s8uaredX value of the multiple correlation coefficient. "t shows that about all the variation in %7+ratio is e!plained by the model.

The significance value of the 3 statistic is less than 0.05 which means that the variation e!plained by the model is not due to chance Here cofficent of independent variables=+%* %'")+> are -6.0BB and .10B respectively so we can say that regression line will be %7+ R 1A.B1 - E.0BF+%* S .611%'")+

POWER.RID INTERPRETATION: ' *8uare the coefficient of determination is the s8uaredX value of the multiple correlation coefficient. "t shows that about all the variation in %7+ ratio is e!plained by the model. The significance value of the 3 statistic is less than 0.05 which means that the variation e!plained by the model is not due to chance Here cofficent of independent variables=+%* %'")+> are -6.0BB and .10B respectively so we can say that regression line will be %7+ R 19.6F - 5.6GA+%* S .6GE%'")+ RELIANCEPOWER INTERPRETATION: ' *8uare the coefficient of determination is the s8uaredX value of the multiple correlation coefficient. "t shows that about all the variation in %7+ratio is e!plained by the model. The significance value of the 3 statistic is less than 0.05 which means that the variation e!plained by the model is not due to chance Here cofficent of independent variables=+%* %'")+> are -6A5.B9 and 1.B1 respectively so we can say that regression line will be %7+ R 1AG.5E S 1.B1 %'")+ - 6A5.B9+%*

B1

C78TREND ANALYSIS The trend analysis shows that the profit of the companies =NT%) T$T$ %ower &rid )orporation reliance +nergy and Neyveli .ignite )orporation .T/> has varied from 600A-0B. There is very less difference in the e!pected net profit and observed net profit. This shows that the company is growing according to the trend.

POLICY IMPLICATION
B6

NTPC:
)urrent ratio of company is 6.FE. "t gives a better short term financial position of firm. *o company should have to maintain it. Muic# ratio of company is 1.EB. )ompany has access money in hand. *o company should invest it. /ebt to +8uity ratio is 0.5. "t shows that company has more own money than debt. )ompany should rise from outside resources.

POWER.RID CORPORATION:
)urrent ratio of company is 0.AE. "t shows a bad short term financial position of firm. *o company should have to invest in short term assest. Muic# ratio of company is 0.E. )ompany has no access money in hand. *o company should have efficient money in hand to pay short term liability. /ebt to +8uity ratio is 1.BG. "t shows that company has less its own money than debt. )ompany should concentrate to increase his profit. RELIANCE ENER.Y LTD: )urrent ratio of company is 1.E9. "t shows a bad short term financial position of firm. *o company should have to invest in short term assest. Muic# ratio of company is 0.GB. )ompany has no access money in hand. *o company should have efficient money in hand to pay short term liability. /ebt to +8uity ratio is 0.AB. "t shows that company has ade8uate its own money . )ompany should have to maintain it.

BE

TATA POWER:
)urrent ratio of company is 1.99. "t gives a better short term financial position of firm. *o company should have to maintain it. Muic# ratio of company is 1.61. )ompany has access money in hand. *o company should invest it. /ebt to +8uity ratio is 0.A0. "t shows that company has ade8uate its own money than debt. )ompany should have to maintain it.

RELIANCE POWER INTERPRETATION:

)urrent ratio of company is 6.B1. "t gives a better short term financial position of firm. *o company should have to maintain it. /ebt to +8uity ratio is 6.05. "t shows that company has less its own money than debt. )ompany should concentrate to increase his profit. /ebt to +8uity ratio is 0.1B. "t shows that company has more own money than debt. )ompany should rise from outside resources.

BF

CONCUSION
"n last we can say that coal based thermal power stations are presently the main stay of power development and this is li#ely to be so in the immediate future also considering the present status of the pro9ects and various constraints in development of hydro and nuclear power. $s per the present estimates the coal reserves in the country are the order of 606 billion tonnes with the bul# of the reserves lying in the +astern 'egion states of -ihar (rissa and ,est -engal. (f the coal produced about G05 is consumed in the power sector. %resently about 600 1illion Tonnes of coal is consumed yearly in the power sector and this re8uirement would continue to increase in the coming years. "t is estimated that the demand for coal by the power sector is li#ely to be substantially in e!cess of the production. This demand would need to be met by importing coal and augmenting domestic coal producing capability. -oth the options would re8uire special efforts and policy measures. The &overnment had ta#en a ma9or step in opening up coal mining to the private sector. "t is hoped that substantial private participation would give a boost to the domestic production.

B5

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BA

9our#(!&:5
1/8 T*e C*(r%ere' A,,ou#%(#% /ec.600G %g.NoCF5-FB 1>8 C*(r%ere' F$#(#,$(! A#(!"&%B $pril 600A %g.NoCAF-AA 1C8 9our#(! o1 1$#(#,eBDe,8/448B %g.NoCGF-G5 1A8 RBI BULLETINBYr8/4475/448B %g.NoC160-1E0 150-1A6 1G6-1GA 168 )hartered 3inancial $nalyst 9an.6009 %g.NoCEF-E9

178We2&$%e&:5
188 www.valuenotes.com7a9ain7a9ainPbhl 1)8 www.valuenotes.com7a9ain7a9ainPtatapower /48 www.e!plore.oneindia.in7industry7porew7 /18 www.e!plore.oneindia.in7industry7porew7powergenerationindustry //8 www.m9unction.in7mar#etPnews7 />8 www.intiacatalog.com7webdirectory7electrical7G0F /C8 www.indiane!press.com7story760AG05 /A8 www.indiane!press.com7story760AG05-6 /68 www.infraline.com7contentbrochure /78 www.teri.res.in7teriin7opet7report7 /88 www.ntpc.co.in7aboutus7company7 /)8 www.ntpc.co.in7home7inde!7 >48 www.ntpc.co.in7companyperformance7results-E1160G >18 www.ntpc.co.in7companyperformance7results-E1160A

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>/8 www.ntpc.co.in7companyperformance7results-E11605 >>8 www.ntpc.co.in7companyperformance7results-E1160E >C8 www.ntpc.co.in7companyperformance7results-E1160F >A8 www.reliancepower.co.in7businessprofile >68 www.powergridindia.com7powergrid7 >78 www.powergridindia.com7powergrid7/()*7 >88 www.rel.co.in7aboutus7religlance >)8 www.rel.co.in7investorrelations7pdf7balance-sheet C48 www.tatapower.com7modules

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