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INDUSTRY PROFILE

POWER SECTOR REFORMS IN INDIA


Introduction :
The power sector has transited to an era or controlled competition giving a
meaningful role for the private sector and the market to play in the nations
infrastructure building. Reform in the power sector was officially kicked off in
September 1991 with the passing of the electricity laws (amendment act! allowing
the private sector in power generation. This was followed by the centers resolution in
"ctober 1991 that opened up electricity generation! supply and distribution to the
private sector. These came soon after the assumption of office by the #arasimha Rao
$overnment.
REFORMS IN THE STATE ELECTRICITY BOARD
The reforms process turned active only in late 199% with the adoption of the
&common minimum nation action plan for power' at the (hief )inisters conference.
The action plan! which laid the foundation for reforms! is the state electricity boards
*S+,s- have the following salient features.
.ormulation of national energy policy.
Setting up of the central and state electricity regulatory commissions.
Rationali/ation of retail tariffs.
0rivate sector participation in private distribution.
Streaming the role of central agencies concerned with pro1ect approvals.
2utonomy and improvement in the management and physical parameters of
S+,s.
3t took another 14 months before the reforms process got into implementation
mode with the promulgation of the electricity regulatory commissions ordinance by
the precedence of 3ndia 2pril 56! 1994. This ordinance primarily gave legal shape to
the two cardinal features of the common minimum action plan establishment of
regulatory commission and rationali/ation of retail tariff. This provision invited
considerable flak from the prefer power lobby and was unceremoniously shelved
when the ordinance was passed in to! an 3 act of parliament of 7uly 5! 1994! reducing
S+R(s to toothless tigers as far as rationali/ation of retail tariff was concerned.
8owever! the clause re9uiring the State $overnment to compensate the person
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affected by the grant of subsidy in the manner state commission may direct was
retained! there by giving some vestige of authority to the regulators.
2ndhra 0radesh 0ower $eneration (orporation :imited is one of the pivotal
organi/ations of 2ndhra 0radesh! engaged in the business of 0ower generation. 2part
from operation ; )aintenance of the power plants it has undertaken the e<ecution of
the ongoing ; new power pro1ects scheduled under capacity addition programmed
and is taking up renovation ; moderni/ation works of the old power stations.
=hen 20S+, came into e<istence in 1969! 20S+, started functioning with
the ob1ectives of maintaining the power sector efficiently and economically
simultaneously ensuring demand meets the supply.
>uring the last decade inade9uate capacity addition and low system fre9uency
operation of less than ?4.6 8/ for more than half a decade considerably reduced the
power supply reliability.
The consumer have grown up from two and half lakhs to over one crore! the
energy handled per annum from %4% )@ to over ?A!AAA )@. The annual revenue has
increased from mere Rs.%6 crore to Rs.?4AAA crore. 3n the after reforms process is
taken up in a big way and 20$+#(" could complete 5B56A)C DT0S @ E stage and
Srisailam left bank 0ower 8ouse. 3nternational agencies have are now interested in
taking part in @T0S stage E 3@.
HISTROY OF APGENCO
20$+#(" came into e<istence on 54.15.1994 and commenced operations
from A1.A5.1999. This was a se9uel to $overnments reforms in 0ower Sector to
unbundle the activities relating to $eneration! Transmission and >istribution of
0ower. 2ll the $enerating Stations owned by erstwhile 20S+, were transferred to the
control of 20$+#(".
The installed capacity of 20$+#(" as on F1.AF.5AAG is %G%A.9 )=
comprising F1G5.6A )= Thermal! F64%.? )= 8ydro and 5 )= =ing power
stations! and contributes about half the total +nergy Re9uirement of 2ndhra 0radesh.
20$+#(" is third largest power generating utility in the (ountry ne<t #T0( and
)aharashtra. 3ts installed 8ydro capacity of F64%.? )= is the highest among the
(ountry.
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20$+#(" has an e9uity base of Rs.51AG crore with 1A4A? dedicated
employees as on F1.15.5AA%. The company has an asset base of appro<imately Rs.
15AAA crores.
Power Sector Status in India :
$eneration during 5AAGHA4 (2pril.
>aily reservoir levels.
>aily generation report.
$eneration during 5AA%HAG (2pril E )arch.
OUR POWER PLANTS
"ur 0ower 0lants meet half the total +nergy Re9uirement of 2ndhra 0radesh.
2s on F1HAFH5AA6 20$+#(" "wns! "perates and )aintains .ive Thermal 0lants
with an installed capacity of F445.6A )=! 14 8ydel 0lants (including ? )ini 8ydel
0lants with an installed capacity of FGAF.?)=! among them! Tungabadhra 8+S is
1oint pro1ect (4AI5A with $ovt. of Darnataka and )achkund 0ower Ctility (GAIFA
with "rissa $overnment! and 5 )= Ramagiri =ind 0ower 0lant.
20$+#(" has also under taken "peration and )aintenance of $as 0ower
0lant at @i11eswaram owned by 20$0(:.
1 Thermal 0lants. 5 8ydel 0lants. F =ind 0lants
F
ORGANISATION STRUCTURE
?
Sri.A.K.Goyal I.A.S
Chairman
Sri.A.K.Goyal I.A.S
Chairman
Sri Ajay Jain I.A.S
Managing Director
Sri Ajay Jain I.A.S
Managing Director
Sri C. Radhakrishna
Adl.Charge - Director
(hermal!
Sri C. Radhakrishna
Adl.Charge - Director
(hermal!
Sri.G.Adishe
sh"
Director
(#ydel!
Sri.G.Adishe
sh"
Director
(#ydel!
Sri.U.G.Krishna
Murthy
Director (Technical)
Sri.U.G.Krishna
Murthy
Director (Technical)
Sri. C. Radha
Krishna
Director
(Projects)
Sri. C. Radha
Krishna
Director
(Projects)
Sri.D.Prabhakar
Rao
Director
(inance)
Sri.D.Prabhakar
Rao
Director
(inance)
G.!a"an
Rao
Director
(#R)
G.!a"an
Rao
Director
(#R)
Sri A. Rama Rao
$.D (In%ormation Systems!
Sri A. Rama Rao
$.D (In%ormation Systems!
Sri $.Sunder Ku"ar Das%&PS
Chie' o' !i(ilance ) Security
Sri $.Sunder Ku"ar Das%&PS
Chie' o' !i(ilance ) Security
C.* (Ci+il , *n+iron"ent)
C.* (Ci+il , *n+iron"ent)
G.M (Trainin()
G.M (Trainin()
C.* (- ) M , Srisaila")
C.* (- ) M , Srisaila")
C.*
Trainin( &nst (!TPS)
C.*
Trainin( &nst (!TPS)
C.* (TPC)
C.* (TPC)
S.* (- ) M , .S#*S)
S.* (- ) M , .S#*S)
C.* (Projects)
C.* (Projects)
C.* (- ) M , Sileru
Co"/le0)
C.* (- ) M , Sileru
Co"/le0)
C.* (Generation)
C.* (Generation)
C.* (- ) M , RTPP)
C.* (- ) M , RTPP)
C.* (- ) M , KTPS)
C.* (- ) M , KTPS)
C.* (R ) M , KTPS)
C.* (R ) M , KTPS)
S.* (- ) M , RTS12)
S.* (- ) M , RTS12)
$ ) CC$ ($ccounts)
$ ) CC$ ($ccounts)
$ ) CC$ (Resources)
$ ) CC$ (Resources)
C.* (- ) M , KTPS1!)
C.* (- ) M , KTPS1!)
Chie' *n(ineer
(Co""ercial)
Chie' *n(ineer
(Co""ercial)
Dy.CC$ ($udit)
Dy.CC$ ($udit) C.* (Ci+il , #ydro)
C.* (Ci+il , #ydro)
COMPANY PROFILE
HISTORICAL BACKGROUND OF RTPP, KADAPA Di!t", A#P
A BEGINNING
2lmost a century after the invention of electricity it was introduced in 3ndia
for commercial use in a humble way. .r the first time in the year 1449 a mini
hydroelectric power house with a capacity of 16D= was constructed on a small
rivulet in >ar1eeling district and electric power was supplied n its vicinity. =ithin!
two decades! in 19A9 a 1AD= diesel set was installed in 8yderabad for supply of
electricity to the kings palaces. This was the first step in the development of electric
power in 2ndhra 0radesh (8J>+R2,2>.
GENERAL
Rayalaseema Thermal 0ower 0ro1ect is one of the ma1or 0owers generating
facilities in 2ndhra 0radesh to meet the growing demand for power in the Southern
part of the state. The 0ro1ect envisaged the installation of 5B51A )= of Thermal
$eneration units under Stage E 1.
LOCATION
The 0ro1ect 3s located at a distance of 4 D) from )uddanur Railway station
of South (entral Railway on the (hennai E )umbai Railway line. The site selected is
at an ade9uate distance from populous Town and land belonged to the government
and was not in use. 3t is 9uiet near to the e<isting Railway line and Transmission lines
of 20 TR2#S(".
The water re9uirement for the 0ro1ect from )ylavaram Reservoir! which is at
5A D) from the 0ro1ect through two dedicated pipelines.
COAL LINKAGE
The main (oal :inkage to RT00 is )Ks S((: and is transported through rail.
"ccasionally RT00 gets the coal re9uirements from )Ks )(:! "rissa and this is
transported through LRailHSeaHRail )ethod.
OB$ECTI%E OF THE PRO$ECT
The Rayalaseema region is in the Southern part of the state and most of the
generation facilities are in the #orthern part of the state! e<cept for two ma1or 8ydel
stations in the (entral part of the state. The Rayalaseema region thus used to get
power through long +8T line and fre9uently it is used to face the low voltage
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problem particularly during the summer when the 8ydel stations generations goes
down. The region is a drought prone area and has to depend on 3ndustrial growth for
its economic development power bring basic need! RT00 has ensured the proper and
9uality supply the ob1ective also improved the base load Thermal generating capacity
of the 20 $rid.
PRO$ECT COST
The original cost of the 0ro1ect as approved by the 0lanning
(ommissioner is Rs. 6AF.G1 crores and the revised cost of the 0ro1ect based on actual
e<penditure is Rs. 4%A.FA crores and the increase over general cost is GAM.
2bout 20$+#("
:2#>)2RDS N 2chievements
Cnit F (51A )= of @i1ayawada Thermal 0ower Station
has established a #ational Record of continuous service for
??1 days from 1?.15.5AA? to 54.A5.5AA%
20$+#(" is the third :argest 0ower utility in the country
in terms of 3nstalled (apacity H G64G.9 )=
"ur 8ydro 3nstalled (apacity FGAF.? )= is highest in the
country.
Thermal plants are consistently winning the $old and
silver medals for )eritorious 0roductivity 2ward
2vailability of thermal plants has been (over a decade well
above the national average
Recently Srisailam :eft ,ank 0ower 8ouse! a uni9ue
complete under ground powerhouse is successfully
commissioned and being operated. This is the first such one
in southern region.
Thermal generation during 5AA?HA6 H 5FF%A )C H is
highest ever achieved by 20$+#("
2)R0 :3.T 3RR3$2T3"# Scheme is taken up and
completed well below the stipulated time ; budget .3n that!
the pumping station commissioned (14 )= is first such
one in 3ndia where water is lifted to an height of 1AA)ts.
Srisailam comple< is the largest hydro power station with
installed capacity 1%GA )= in the country.
#agar1una Sagar :eft canal 0ower 8ouse is the first hydro
%
station in the country to use S(>(2 for operation of the
units from control room besides enhancing the +<citation
and $overnor systems with microprocessor controls.
0ochampad 8ydro electric Scheme is the first hydro power
station to use microprocessor controls in the powerhouse
Thermal generation during 5AA?HA6 H 5FF%A )C H is
highest ever achieved by 20$+#("
APGENCO & RTPP ITS %ISION, MISSION AND CORE %ALUES
OUR %ISIONI
O To be the best power utility in the country and one of the best in the world.
OUR MISSION'
To generate ade9uate and reliable power most economically! efficiently and
ecoHfriendly.
To spearhead accelerated power development by planning and implementing
new power pro1ects.
To implement Renovation and )oderni/ation of all e<isting units and enhance
their performance.
CORE %ALUES'
To proactively manage change to the liberali/ed environment and global
trends.
To build leadership through professional e<cellence and 9uality.
To build a team based organi/ation by sharing knowledge and empowering
employees.
To treat everyone with personal attention! openness! honesty and respect they
deserve.
To break down all departmental barriers for working together.
G
To have concern for ecology and environment.
CORPORATE OB$ECTI%ES'
1. To operate and maintain 0ower Stations availability ensuring minimum cost of
generation.
5. To add generating capacity with in prescribed time and cost.
F. To maintain the financial soundness of the (ompany by managing financial
operations.
?. 3n accordance with good commercial utility practices.
6. To adopt appropriate 8uman Resources development policy leading to
creation of team of motivated and competent power professional.
(uot)tion! R*+)rdin+ Po,*r
&Save +nergy Today 2void (risis Tomorrow'.
&2 Thing =hich ,urns #ever Returns'.
&Save "ne Cnit 2 >ay Deep 0ower =T 2 =ay'.
&=hen it is ,right Switch of the :ight'.
ESSENTIAL INPUTS TO PRO$ECTS
:2#> ' 2n e<tent of 5%51.64G acres of government land has been ac9uired for the
main plant! colony! and ash pond and marshalling yard areas. 3n addition to that 65.69
acres of patta land was also ac9uired.
WATER SUPPLY '
The water re9uired for running of the power station is being drawn from the
)ylavaram reservoir through a 51)m long steel pipeline. The water flows from
)yalavaram to RT00 through gravity. $overnment of 2.0 irrigation department has
allocated 5A cusecs of water per day and 1.F T)( per year from the reservoir for the
pro1ect.
COAL SUPPLY '
The power station re9uires about 5.6 million tones of coal every year! which is
being supplied from S3#$2R+#3 ("::3R3+S under longHterm coal linkage
arrangements. The coal is being transported to powerhouse site by rail over a distance
of about 4AADm by one of the routes! @i1ayawadaH$unturHReniguntla. 2n approach
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railway line is formed from )uddanur Railway Station to the pro1ect site as a part of
the pro1ect.
E%ACUATION OF POWER '
The power generated at the pro1ect is evacuated through si< number 55AD@
transmission lines to Jerraguntla! Dadapa! and 2nantapur.
STATE OF CLEARENCE'
2ll the clearances re9uired for the construction of the pro1ect like &#"
",7+(T3"#' from 2irports 2uthority! &#" ",7+(T3"#' from state 0ollution
control ,oard and clearance of 3ndia wide letter dated A9HAFH1994 accorded
investment approval for the pro1ect at an estimated cost of Rs.6AF.G1 crores for the
power station based on 194G prices.
ELECTRICITY PROGRESS IN A#P -.--/-.00"
The electricity department was established in 1911 under the $overnment
)int. :ater 8ussain Sugar ,und was electrified on Saturday 56
th
"ctober! 191F 2.>
and street electrification work was started within and outside the )unicipal limits of
8yderabad and electricity was provided on the residency roads. 3n 8ederabad 1A
substations were erected for the distribution of power in the city. The tariff was %
annas ("smania sikka per unit with a minimum of Rs.6KH ".S. per month.
0rogrammes of e<pansion to cover other town if the #i/ams State was take up. Cnder
this programme steps were taken to generate electric power at 2urangabad! Raichur!
=arangal and $ulbarga etc.
The $overnment of 3ndia .ramed +lectricity rules in 191A so as to ensure fair
distribution and supply of power as well as take all necessary precaution for the use of
power by the consumers and concerned departments.
0"=+R >+@+:"0)+#T 3# 2.0 2# "00"RTC#3TJ D#"=D3#$
=e are standing at the entrance of 51
st
century and opportunity is knocking at
its door. The end of the century offers us the opportunity to assure 3ndias and in
particular out states electricity needs for decades to come.
+lectricity demand in 2.0 is estimated to grow at an annual compound growth
rate of around 1AM as against the #ational growth rage of %.4M. The installed
9
capacity of 2.0 state +lectricity ,oard has grown from 51F )= in 19%AH%1 to %15?
)= at present (+<cluding central share.
The available capacity in 2.0 is %1F6.6 )=! which includes 49G )= from
central generating stations. 2s the capacity addition could not keep pace with the
growth in demand! a shortage of 5AAA)= in the installed capacity e<ists now. The
growth in demand has been mainly due to e<tensive Rural +lectrification 0rogramme
and energisation of agricultural pump sets at one E lakhs pump sets per year since
1946H4% besides increase in domestic loads.
2.0.S.+., has long been a trendsetter in breaking new paths and adopting the
ST2T+H".HT8+2TR+ technology in its power plants. The technology adopted in the
power station has been continuously upgraded both in the 8ydro and Thermal station
and also in transmission distribution and general management to enhance the
productivity and improve the operations.
RAYALASEEMA THERMAL POWER PRO$ECT STAGE & I
Rayalaseema comprises of four districts Dadapa! Durnool! 2nantapur and
(hittoor which are considered to be in backward region and the area lags behind in all
respects such as 2griculture! 3ndustry and education prior to the 3ndustrial
development! 2griculture is purely dependent on rainfall. 0eople used to live on
2griculture sector owing to the advancement of Science and Technology some of
barites and )ine 3ndustries were started subse9uently and more industries were
established in this region. 2dded to this! the region is considered to be hottest region
and temperature often goes up to 6A degrees centigrade in summer. Therefore the need
for +lectricity to meet the necessity of the inhabitants and the 3ndustrial belt of this
region was felt! as the supply that was generated by the 2gencies was found
insufficient. 8ence the $overnment established Rayalaseema Thermal 0ower 0ro1ect
in 199?. Rayalaseema Thermal 0ower 0ro1ect is one of the ma1or power generation
facilities began developed in 2ndhra 0radesh to meet the growing demand for power.
The pro1ect envisages the installation of 51A )= power generation units under Stages
H 3.
The first 51A )= under commissioned on F1HFH199? and second unit on 56H
5H1996. Rayalaseema region is in the Southern part of the state and most of generating
facilities are in the #orthern part of the state e<cept two ma1or 8ydel stations in the
(entral part. The Rayalaseema region therefore gets in power! therefore gets power
1A
during summer when the 8ydo stations generations goes down. 0riority is therefore
given for 3ndustrial development and power being the basic infrastructureP it is
necessary to ensure proper power supplies. 3n this conte<t the RT00 is taken up not
only to improve the base load capacity of the $rid but also to ensure proper voltage
profile in the area under all conditions.
RAYALASEEMA THERMAL POWER PRO$ECT STAGE & II
S)1i*nt F*)tur*!'
3nstalled (apacity ?5A )= (5 B 51A )=
+stimated (ost Rs. 1%?A (r
:ocation @ @ Reddy #agarH61% F15! Dadapa (>t
(oal Source Singareni (oal (ollieries :imited
=ater Source )ailavaram >am
Cnits (ommissioning CnitH333 I 7anuary! 5AAG
Schedule CnitH3@ I 7uly! 5AAG
.inancial 2ssistance 0ower .inance (orporation! Rural +lectrification
(orporation! (entral ,ank ; 3ndian "verseas ,ank.
STATUS AS ON 23#24#0225
2ll Statutory (learancesK2pprovals obtained.
Total 0ro1ect cost including 3>( is about Rs. 1%?A (rores (Rs. F.9A (r per
)=.
(ontract of )ain 0lant and balance of plant e<cept coal ; ash plants and civil
works was awarded to ,8+: on 5G.15.5AAF at Rs. 1156 (r.
(ontract for ma1or civil works like .oundations! Structures! (ooling Towers!
(himney!
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(.=. 0ump 8ouse and Railway siding were also awarded and civil works are
under brisk progress.
.inancial (losure achieved through 0.(! R+(! (entral ,ank and 3ndian
"verseas ,ank
SALIENT FEATURES OF THE PRO$ECT
Single tower type boilers on concrete pylons with a capacity of %9A TK8R at a
pressure of 166DgKcm
5
and at 6?Aoc for each unit are installed.
MILLING PLANTI
Three hori/ontal tube mills each having capacity of 1A6 TK8R are provided for
each of the boilers.
ELECTROSTATIC PRECIPITATORS'
3n order to achieve total pollution control % field electrostatic precipitators
having capacity of 1F! 45!AAA )Ks and 99.49M efficiency are installed.
CHIMNEYI
2 55Amts tall chimney with two flues conforming to the latest re9uirement of
&+mission Regulators' is installed.
TURBO GENERATORS'
$erman designed steam turbines with lowest heat rate with F cylinders
reaction type were commissioned. )icroprocessors based automatic Turbine runs up
systems are installed.
PERFORMANCE SINCE INSPECTION
J+2R
2(83+@+>
0:2#T :"2>
.2(T"R (M
2=2R>S
="# R2#D
1996H199% GA.9 HHH HHH
199%H199G %%.5 HHH HHH
199GH1994 41.1 Silver )edal
1994H1999 91.6 $old )edal .irst in (ountry
1999H5AAA 9?.9 $old )edal Second in (ountry
5AA1H5AA5 95.? $old )edal Second in (ountry
5AA5H5AAF 9?.4 $old )edal .irst in (ountry
15
5AAFH5AA? 95.5 Second in 20$+#("
5AA?H5AA6 91.1% ,ron/e )edal Third in (ountry
5AA6H5AA% %?.?? HHH HHH
5AA%H5AAG 49.65 HHH HHH
5AAGHA4 46.%5 HHH HHH
5AA4HA9 91.99 +nergy conservation HHH
5AA9H5A1A 4?.?? HHH .ourth in (ountry
WORKING CAPITAL

3f a firm wants to increase its profitability! it must also increase its risk. 3f it is
to decrease risk! it must decrease its profitability. The trade off between these
variables is that regardless of how the firm increases its profitability through the
manipulation of working capital. The conse9uence is a corresponding increase in risk
as measured by the level of working capital.
=orking capital in simple terms is the amount of funds which business
concerns have to finance its dayHtoHday operations. 3t can also be regarded as that
proportion of companys total capital which is employed in shortHterm operations.
Conc*6t! o7 ,or8in+ c)6it)1I
=orking capital can be defined through its two concepts! namelyI
(a $ross working capital (b #et working capital.
Gro!! ,or8in+ c)6it)1'
$ross working capital refers to the firms investment in current assets. (urrent
assets are the assets which can be converted into cash within an accounting year and
1F
include cash! short term securities! debtors! (accounts receivable or book debts bills
receivable and stock (inventory.
N*t ,or8in+ c)6it)1'
#et working capital refers to the difference between current assets and current
liabilities are those claims of outsiders which are e<pected to mature for payment within an
accounting year and include creditors (accounts payable! bills payable! and outstanding
e<penses. #et working capital can be positive or negative. 2 positive net working capital
will arise when current assets e<ceed current liabilities.
2 negative net working capital occurs when current liabilities are in e<cess of
current assets.
I96ort)nc* o7 Wor8in+ C)6it)1'
3nvestment is fi<ed assets only is not sufficient to run the business. Therefore
working capital or investment in current assets is a must for the purchase of raw
materials and for meeting the dayHtoHday e<penditure on salaries! wages! rents etc.
The main advantages of ade9uate working capital are as followsI
3f proper cash balance is maintained a (ompany can avail the advantage of
cash discounts by paying cash for the purchase of raw materials in the
discount period! which results in reducing the cost of production.
2de9uate working capital creates a sense of security! confidence and loyalty
not only through out the business itself but also its customers! creditors and
business associates.
2 firm can raise funds from the market! purchase of goods on credit and
borrow shortHterm funds from banks etc. 3f investors and borrowers are
confident that they will get their due interest and payment of principle in time.
(ertain contingencies like financial crises due to heavy lossesP business
oscillation etc. can be easily overcome! if the company maintains ade9uate
working capital.
2 continuous supply of raw material! research programs! innovation and
technical developments and e<pansion programs can successfully be carried
out if working capital is maintained in the business. 3t will increase the
production efficiency! which in turn increase the efficiency and morale of the
employees! lower the cost and create image in the community.
1?
D*t*r9in)nt! o7 Wor8in+ C)6it)1'
2 large number of factors! each having a different importance! influence
working capital needs of firms. 2lso! the importance of factors changes for a firm
over time. Therefore! an analysis of relevant factors should be made in order to
determine total investment in working capital. The following are the factors which
generally influence the working capital re9uirements of the firm.
#ature of the ,usiness
Sales and >emand (onditions
Technology and )anufacturing 0olicy
(redit 0olicy
2vailability of (redit
"perating +fficiency
0rice :evel (hanges
O6*r)tin+ c:c1*
"perating cycle is the time duration re9uired to convert sales! after the
conversion of resources into inventories! into cash. The operating cycle of a
manufacturing company involves three phases.
2c9uisition of resources such as raw material! labour! power and fuel etc.
)anufacture of the product which includes conversion of raw material into
workHinHprogress into finished goods
Sale of the product either for cash or on credit. (redit sales create account
receivable for collection.
The firm is re9uired to invest in current assets for smooth! uninterrupted
functioning. 3t needs to maintain li9uidity to purchase raw materials and pay e<penses
such as wages! salaries and other manufacturing! administrating and selling e<penses
as there is hardly a matching between cash inflows and outflows.
Stocks of raw material and workHinHprocess are kept to ensure smooth
production and to guard against nonHavailability of raw material and other
16
components. The firm holds stock of finished goods to meet the demands of
customers on continuous basis and sudden demand from some customers. >ebtors are
crated because goods are sold on credit for marketing and competitive reasons.
The operating cycle can be measured as followsI
R)(0 E Raw material (onversion 0eriod
=30(0 E =orkHinHprogress (onversion 0eriod
.$0 E .inished $oods (onversion 0eriod
S>(0Q Sundry >ebtors (onversion 0eriod
S((0Q Sundry (reditors (onversion 0eriod
"perating (ycleQR)(0R=30(0R.$(0RS>(0HS(00
0urchases 0ayment (redit Sale (ollection
R)(0R=30(0R.$(0
3nventory (onversion 0eriod Receivable (onversion 0eriod
0ayables #et "perating (ycle
$ross "peration (ycle
1%
P*r9)n*nt )nd %)ri);1* Wor8in+ C)6it)1'
The minimum level of current assets which is continuously re9uired by the
firm to carry on its business operations is referred to as permanent or fi<ed working
capital. >epending upon the changes in production and sales! the need for working
capital over and above permanent working capital will fluctuate.
The e<tra working capital needed to support the changing production and sales
activities is called fluctuating! or variable working capital. ,oth are necessary to
facilitate production and sale through operating cycle! but temporary working capital
is created by the firm to meet li9uidity re9uirements that will last only temporarily.
2mount of
=orking
(apital Temporary
.i<ed
Time
2mount of
=orking
1G
(apital Temporary
.i<ed
Time
.rom the above two graphs it is shown that permanent working capital is
stable over time! while temporary working capital is fluctuating. The permanent
working capital is increasing over a period if the firms re9uirement for working
capital is increasing.
O6*r)tin+ c:c1*'
"perating cycleQR)(0R=30(0R.$(0RS>(0HS(00
R)(0QRaw )aterial (onversion 0eriod
=30(0Q=orkHinHprogress (onversion 0eriod
.$(0Q.inished $oods (onversion 0eriod
S>(0QSundry >ebtors (onversion 0eriod
S((0QSundry (reditors (onversion 0eriod
=orking capital cycleKoperating cycle
Raw )aterial =orking progress
(ash
.inished
$oods
2ccounts receivables Sales
D*;tor! M)n)+*9*nt
Receivables occupy the second place among the various components of
working capital in any manufacturing concern. +ffective management of the
14
receivable investments is a re9uired characteristic of successful and growing
enterprise.
The main purpose of maintaining receivables is to push up the sales and also
profit by giving credit to the customers who find it difficult to purchase on cash. This
process involves so much risk! which is called credit risk. =hile giving credit to any
customer! credit manager has to consider the five (s of creditI (haracter! (apacity!
(apital! (ollateral and (onditions! otherwise loss of bad debts will increase. The
receivable improve the li9uidity position of an enterprise as it is a near cash item! and
the receivables should be at the satisfactory level.
The receivable in the strict accounting sense! arise out delivery of goods or
rendering of services on credit. 2ccording to this! receivables mean only a trade
debtor. ,ut in the present conte<t! the term receivable has been in its broader sense!
i.e.! to include trade debts! loans and advances in this preview.
The sale of the products against cash would be an ideal situation to eliminate a
stage in the working capital cycle thus achieving the ob1ective of drastic reduction in
its length and the re9uirement of =orking (apital. The e<istence of numerous
competitors in the era of globali/ation and liberali/ed economy! such sales on cash
could only be ne<t to impossibility if growth of the organi/ation is any aspiration. 3n
the present comple< market scenario one leads the other! in offering more value for
money to their customers and e<tending credit has been one such ma1or step. This
encounters the organi/ation with substantial blockage of =orking capital.
3ndiscriminant e<tension of credits in the name of growth could erase the entire
profitability and as stated above nonHe<tending of credit would keep the organi/ation
out of business. 2 great deal of planning and efficiency is warranted to keep the
receivables at optimum level. 2 little elaboration is needed in this level. There are two
measures in this regard.
)# Co11*ction 6*riod'
The collection period would be in terms of number of days average credit sale. Such a
calculation area wise! marketing personnel wise at fre9uent intervals would provide
informations for selective credit control. 2n application of incentive for faster
collection in certain selective areas also would render possible! the collection faster.
;# A+in+ o7 ;oo8 d*;t!'
19
The collection efforts could be intensified on greater analysis of receivables
from the point of view of the number of days it is outstanding. 8igher the number of
days the debt is outstanding! the probability of it becoming doubtful of recovery is
higher. +arlier detection of such outstanding from customers would facilitate taking
hard decisions of stoppage of further sales! in order to minimi/e bad debts. (ollection
of book debts 1ust as per credit policy would enable the organi/ation to achieve
planned profitability.3t would be an art and efficiency of marketing personnel in an
organi/ation! which enables overall monitoring of receivables effective and to keep at
an optimum level.
C)!< M)n)+*9*nt'
"ne of the main tasks of financial management is to hold and maintain an
ade9uate but not e<cessive cash balance. (ash is 1ust another commodity re9uired in
the process of production. 2 company should work hard to keep its inventory of cash
down to the minimum as it does to hold down the lock up in merchandise! inventory
and receivables. (ash is also the ma1or and much awaited output or result of the
companys operations and there is the need for the effective plan to deploy the li9uid
resource to utmost productive use. (ash is also the idlest of all current assets. The
ob1ective of any firm cash management is therefore to improve the cash turnover by
reducing the operating cycle period. Therefore its efficient management is crucial to
the solvency of the business.(ash is the starting point and the ending point of the
=orking (apital cycle. The management necessarily means! ways and means of
maintaining as low level in each stage possible! without hampering the laid down
ob1ectives of the organi/ation of growth and profitability. =hile e<plaining these! the
efforts were only to reduce the conversion period at each stage and to reach to the
cash stage as early as possible! process )anagement! and Receivables )anagement
etc.
(ash )anagement as such! of course! depends on the nature of the
"rgani/ation! market conditions for the products dealt with by the organi/ation
policies pursued! other e<ternal factors affecting etc.
The )anagement of cash mainly should serve the following ob1ectivesI
The cost of capital being a ma1or component in the determinants of
profitability! the optimum level of its maintenance is so essential that any
shortage even temporarily would disrupt the whole activity of the
5A
"rgani/ation. 3t would fail to meet its commitments to employees statutory
authorities etc. the suppliers would loose confidence in the "rgani/ation and
there could be lack of competitiveness in supplying the materials.
Cltimately leading to substantial higher inHout costs. "n the other hand of
indiscriminate holding of cash! higher than necessary! would result in the loss
of interest apart from stagnation in growth and profitability. 3t would be the
endeavor of the "rgani/ation to rotate cash as fast as possibility maintaining
cash in its form at the minimum.
The inflow and the outflow of cash could be nearly matched in order to enable
the company meeting of all its commitments on time at minimum cost.
The cash should available even at the time of an une<pected deviation in the
plan of production and sales.
E77ici*nt D*;t Co11*ction S:!t*9'
=hile dealing with monitoring receivables it have touched upon the need for
reducing book debts and also control of book debts through 2ging analysis. 3n
addition! the system could build in the following for accelerating debt collection even
within the overall credit policy of the "rgani/ation.
+<tending cash discounts for early payments by the customers. 2s long as
margin on the products sold is higher than the cost of borrowed capital! faster
collection by this system resulting in 9uicker rotation of cash could result in
higher profitability.
(ollection through demand drafts in the place of che9ues! particularly that
from outstations.
T*96or)r: In=*!t9*nt in M)r8*t);1* S*curiti*!'
There cannot be a perfect match between inflow and outflow of cash. 3n view
of necessity to provide for contingencies! temporary surplus cash situation might
e<ist.
51
3t would be desirable to invest such funds in readily marketable securities
like treasury bills! certificates of deposits etc.! so as to earn an income even in the
short run and convert those securities 1ust when the cash is re9uired.
SCOPE OF THE STUDY'
The basis scope of the study is to understand ; determine working
(apital management adopted by the department. The study also includes an
observation of different years working capital of 20$+#(" ; its financial position.
NEED FOR THE STUDY'
=orking capital is referred to be the lifeblood and nerve center of a business the
need for working capital is to run day to day activities cant be over emphasi/ed.
.irms aim at ma<imi/ing the wealth and should earn sufficient return from its
operations. The working capital is having the great influence on the development and
progress of any organi/ation. The efficient management of working capital is as
essential to maintain the smooth functioning of day to day operations .8ence there is a
need to study the importance of working capital management in &R2J2:2S+)2
T82R)2: 0"=+R 0R"7+(T
SIGNIFICANCE OF THE STUDY '
The working capital reflects the financial position and operation strengths and
weakness of the concern. These statements are useful to management investors!
creditors! bankers! $overnment and public at large. 3t served as a basis to decide the
wise dividend declaration by company.
OB$ECTI%ES OF THE STUDY'
S To know the efficiency of the company in investing the funds in the current
assets to perform the day EtoH day operations smoothly.
S To study the changes in #et working capital position..
S To evaluate the working capital position and its management in the company
through computing and analy/ing the financial ratios.
LIMITATIONS OF THE STUDY'
Time is one of the limiting factor of the study the duration of training was two
months which was too short period to study the whole organi/ation.
55
Second limiting factor is the busy schedule of the e<ecutives. 2s a result of this
it is very difficult to get minute information about the organi/ation.
Some aspects of financial information were not available because of the
confidentiality of 20$+#(".
METHODOLOGY OF THE STUDY'
The data that was obtained for the study can be classified into the following types.
0R3)2RJ >2T2
S+("#>2RJ >2T2
0rimary data comprises of information obtained during discussions with the officers
and staff in the finance department.
Secondary data comprises of information obtained from ratio analysis and ratio
analysis estimates of other financial statements files and some other important documents
maintained by the organi/ation are also the helpful. The administration report published by
20$+#(" is another source of data.
R+S+2R(8 )+T8">":"$J
Research >esign I 2nalytical
2nalytical Tools I Ratio analysis! statement Showing
(hanges in working capital.
>ata Sources I The secondary data has been
(ollected from (ompany records! 2nnual reports.
0eriod of the Study I 6 years i.e. from 5AA% to 5A1A.
.or analy/ing data simple mathematical ratios! percentages etc.! have been used.
The ratios relating to working capital have been selected and computed for the
study are as followsI
R+S+2R(8 T"":S
(urrent Ratio
Tuick Ratio
#et =orking (apital Ratio
5F
>ebtors Turn "ver Ratio
3nventory Stock Turnover Ratio
$ross 0rofit Ratio
#et 0rofit Ratio
=orking (apital Turnover Ratio
2verage collection period
=orking (apital Ratio
LI(UID RATIOS
-# C urr*nt r)tio'
The current ratio compares the total current asset with the total current
liabilities. 2 relative high ratio is an indication that the company is having high
li9uidity position and has the ability to pay its current obligation in time as and when
they became due.The current assets include cash! stock! work in progress! marketable
securities and accounts receivable. "n other hand current liabilities includes account
payable! sundry creditors! accrued income ta<es! proposed dividends and borrowings
from financial institutions.
Curr*nt )!!*t!
Curr*nt r)tio >
Curr*nt 1i);i1iti*!
(urrent ratio TableI @.1.1 Rs. 3n :akhs
Y*)r Curr*nt )!!*t! Curr*nt 1i);i1iti*! Curr*nt R)tio
5AA% 5G5?61.G4 116G1A.61 5.F6
5AAG 5%A%%4.95 16A141.64 1.GF
5?
5AA4 549F6G.16 5A5659.%G 1.?5
5AA9 F?GF?1.A1 5G?G56.?1 1.5F
5A1A ?1FA44.?% FA5F6%.99 1.F%
5A11 ?A99?G.1A ?A?F99.?% 1.A1

INTERPRETATION'

$enerally 5I1 is considered ideal for the concern ratio. (urrent assets should
be two times the current liabilities. ,ut this was not ideal for port trust because 2.0
$+#(" is a service oriented organi/ation. .rom the above table and (hart! it can be
known that the current ratio is constantly decreasing from 5AA%HA9. The current ratio
increased in the year 5A1A and then decreased in 5A11.
0 (UICK RATIOS'
The 9uick ratio is calculated by deducting inventories from current
assets and dividing the remainder by current liabilities. 3nventories are typically the
least li9uid of a firms current assets and assets on which losses are most likely to
occur in the event of li9uidation. Therefore! this measure of the firms ability to
payoff shortHterm obligations without relying on the scale of inventories is important.
The term 9uick assets refer to current assets! which can be converted into cash
immediately or at a short notice without diminution in value. 3ncluded in this category
of current assets are
Curr*nt A!!*t! / In=*ntori*!
(uic8 R)tio >
Curr*nt Li);i1iti*!
Tuick ratio TableI @.1.5 (Rs. 3n :akhs.
Y*)r (uic8 A!!*t! Curr*nt Li);i1iti*! (uic8 R)tio
5AA% 5?11F9.6% 116G1A.61 5.1A1
56
5AAG 5FF495.44 16A141.64 1.6%
5AA4 5?9AF9.%F 5A5659.%G 1.5F%
5AA9 FA?5?%.%% 5G?G56.?1 1.AG
5A1A F66FG1.51 FA5F6%.99 1.1G
5A11 F6F%54.5G ?A?F99.?% A.4G

INTERPRETATION'
The e<clusion of inventory is based on the reasoning that it is not +astland
readily convertible into cash. 0repaid e<penses by their very nature are not available
to pay off current debts. .rom the above table and (hart! it can be known that the
current ratio is increased in the year 5A1A compared to year 5AA9 and then decreased
in 5A11..
?# ABSOLUTE LI(UID RATIO '
The absolute li9uid ratio e<plains about the firms li9uidity position
now. 2 relative high ratio is an indication that the company is having high li9uidity
position and has the ability to pay its current obligation in time as and when they
became due.
C)!<@ M)r8*t);1* !*curiti*!
A;!o1ut* 1iAuid r)tio >
Curr*nt 1i);i1iti*!#
2bsolute li9uid ratio TableI @.1.F (Rs. 3n :akhsB
Y*)r Curr*nt )!!*t! Curr*nt 1i);i1iti*! Curr*nt R)tio
5AA% GAG5.?G 116G1A.61 A.A%
5AAG FGA4.F9 16A141.64 A.A5
5%
5AA4 F945.?1 5A5659.%G A.A1
5AA9 %9G?.?6 5G?G56.?1 A.A5
5A1A 119F5.?9 FA5F6%.99 A.AF9
5A11 165?4.%9 ?A?F99.?% A.AFG
(82RTI @.1.1.2
INTERPRETATION'

.rom the above table and (hart! it can be known that from 5AA% 2bsolute
li9uid ratio started falling up to 5AA4 due to increase in current liabilities.3n 5AA9 the
ratio increased as in increase in cash and bank balances is more than the increase in
the current liabilities. The 2bsolute li9uid ratio in the year 5A11 is A.AFG which is
decreased compared to the last year.
3 NET WORKING CAPITAL RATIOS'
The difference between current assets and current liabilities is called
networking capital. The net working capital ratio is calculated by dividing net
working capital with net assets or capital employed. (urrent asserts include cash and
bank balances! investment! raw materials! advance payments! consumable stores and
spares! finished goods! stock in process semi finished goods!
Wor8in+ C)6it)1
N*t Wor8in+ C)6it)1 R)tio >
N*t !)1*!
#et working (apital ratio TableI ?.1.? (Rs .in lakhs
5G
:*)r! Wor8in+
c)6it)1
!)1*! N*t ,or8in+ c)6it)1
R)tio
5AA% 16GG5%.F% F444%4.A% A.?A6
5AAG 11G4G5.41 ?19999.61 A.54A
5AA4 49A?%.1G ?%1FGA.55 A.19F
5AA9 G6545.A9 %55994.9% A.15A
5A1A 15?1?4.1% %?F?51.46 A.195
5A11
INTERPRETATION'
The ratio is used as a measure of firms li9uidity. The ratio measures the firms
potential reservoir of funds. .rom the above table and (hart! it can be known that the
current ratio is decreased from the year 5AA6HA% to 5AA4HA9. ,ut there after the
current ratio is increased up to the year 5AA9H1A.
5. ACTI%ITY RATIO
-# DEBTORS TURN O%ER RATIO'
The ma1or activity ratio receivables of debtors turnover ratio. 2llied and
closely related to this is the average collection period. The debtors turnover ratio is
test of the li9uidity of the debtors of a firm. The li9uidity of a firms receivable can be
e<amined in two types of debtors turnover ratio. >ebtorsKreceivables turnover ratio.
2verage collection period.
Sales Q operating income.
S)1*!
D*;tor! turn o=*r r)tio >
A=+ d*;tor
54
A=*r)+* d*;tor! > o6*nin+ d*;tor! @ c1o!in+ d*;tor!
0
>ebtors turn over ratio (Rs.in lakhs
Y*)r! S)1*!Co6*r)tin+
inco9*
A=+ d*;tor! D*;tor! turn o=*r
R)tio
5AA6HA% F444%4.A% 5AA66F.A1 1.9F4
5AA%HAG ?19999.61 1414AA.1? 5.F1A
5AAGHA4 ?%1GFA.55 16G54%.4F 5.9F6
5AA4HA9 %55994.9% 169FG5.?4 F.9A9
5AA9H1A %?F?51.46 51F4?F.G1 F.AA4
59
INTERPRETATION'
The debtors turnover shows the relationship between sales and debtors of
firm. >ebtors turnover indicated the number of times on the average the debtors
turnover each year. .rom the above table and (hart! it can be known that the current
ratio is F.AA9 in the year 5AA9H1A. The current ratio is F.AA4 in the year 5AA4HA9. The
ratio was decreased compared with last year.
0# A%ERAGE COLLECTION PERIOD'
The second type of ratio of measuring the li9uidity of a firms debtors is the
average collection period. This ratio is fact interrelated with the dependent upon! the
receivables turnover ratio.
No# o7 d):! in ) :*)r
A=+# Co11*ction 6*riod >
A=+# D*;tor! r)tio
2vg. (ollection period TableI @.5.5
R!# In L)8<!#"
Y*)r! No# o7 d):! in )
:*)r
A=+# d*;tor!
r)tio
A=+# Co11*ction
6*riod
5AA6HA% F%6 1.9F4 144
5AA%HAG F%6 5.F1A 164
5AAGHA4 F%% 5.9F6 156
5AA4HA9 F%6 F.9A9 9F
5AA9H1A F%6 F.AA4 151
(82RTI @.5.5.2
FA
INTERPRETATION'
The shorter the average collection period! the better the 9uality debtors! as a
short collection period implies the prompt payment by debtors. .rom the above table
and (hart! it can be known that the current ratio is 144 highest days in the year 5AA6H
A%. The average collection period ratio is 9F days in the year 5AA4HA9.The average
collection period ratio is 151 days in 5AA9H1A. The ratio was increased compared with
last year.
?# IN%ENTORY STOCK TURNO%ER RATIO'
3t indicates the number of times the average stock has turned over during period.
3t indicates the efficiency of the firms inventory management. The cost of goods is an
e<penditure including operating! administration! pro1ect establishment! interest on
loans! and depreciation on fi<ed assets! provision! for bad debts. The average
inventory used in the determination! in the average of opening and closing
inventories. 3t is calculated by dividing the cost of goods sold by average inventory.
Co!t o7 +ood! !o1d
In=*ntor: !toc8 turno=*r r)tio >
A=*r)+* In=*ntor:
Y*)r A=*r)+* In=*ntor: Co!t o7 +ood! !o1d In=*ntor: turno=*r
R)tio
5AA6HA% 56464.646 5A6%?1.A% G.965 Times
5AA%HAG 5G6%5.?%6 55A51%.6? G.949 Times
5AAGHA4 F541F.9G 5?91A?.41 G.691 Times
5AA4HA9 ?15?1.?5 FGFA91.AG 9.A?% Times
F1
5AA9H1A 6A?A6.4 FG5AG9.99 G.F41 Times
3nventory Stock Turnover Ratio TableI @.5.F (Rs. in :akhs
INTERPRETATION'
$enerally a high inventory turnovers indicative of good inventory
management and a low inventory turnover suggests an inefficient inventory
management. Therefore a balance should be maintained between too high and too low
inventory turnovers. .rom the above table and (hart! it can be known that the
3nventory stock turnover ratio is 9.A?% in the year 5AA4HA9. The average collection
period ratio is G.F41 in the year 5AA9H1A. The ratio was decreased compared with last
year.
PROFIT ABILITY RATIOS'
1. GROSS PROFIT RATIO'
$ross profit is sales minus cost of sales. The cost of production means cost of
raw materials consumed! direct labour! power! and fuel! repairs and maintenance!
other manufacturing etc. $ross profit is the contribution available to meet other
e<penses such as selling! general! and administrative and interest e<penses.
S)1*! & Co!t o7 Good! !o1d"D-22
Gro!! Pro7it R)tio >
S)1*!
Sales Q "perating 3ncomeP cost of goods sold Q "perating e<penditure
$ross 0rofit ratio TableI @.?.1 (Rs. 3n :akhs.
Y*)r! Gro!! Pro7it S)1*! Gro!! 6ro7it R)tio
5AA6HA% 14F55G F444%4.A% ?G.1A
5AA%HAG 199G45.9G ?19999.61 ?G.6A
5AAGHA4 515%56.?1 ?%1GFA.55 ?%.AA
F5
5AA4HA9 5?99AG.49 %55994.9% ?A.11
5AA9H1A 5G1F?1.4% %?F?51.46 ?5.1G
INTERPRETATION'
. The gross profit ratio is generally low! if the value added in the production is
low. .rom the above table and (hart! it can be known that the gross profit Ratio is
?A.11.A in the year 5AA4HA9. The gross profit Ratio is ?5.1G in the year 5AA9H1A. The
ratio was 3ncreased compared with last year.
5# NET PROFIT RATIOS'
This ratio indicated the earnings out of every 1AA rupees of sales and the unit
make a direct measure of the annual profit. 8ere! the net profit is taken as net profit
after ta<.
Pro7it )7t*r T)E"D-22
N*t Pro7it R)tio > S)1*!
#et 0rofit ratio tableI @.?.5 (Rs. 3n :akhs.
Y*)r! Pro7it )7t*r T)E S)1*! N*t 6ro7it R)tio
5AA6HA% %FAF.9? F444%4.A% 1.%51
5AA%HAG 161AA.%5 ?19999.61 F.696
5AAGHA4 19G%F.69 ?%1GFA.55 ?.54A
5AA4HA9 5?%?6.4G %55994.9% F.96%
5AA9H1A 544%%.A5 %?F?51.46 ?.?4%
(82RT I @.?.5.2
FF
INTERPRETATION'
.rom the above table and (hart! it can be known that the #et profit Ratio is
F.96% in the year 5AA4HA9. The #et profit Ratio is ?.?4% in the year 5AA9H1A. The ratio
was increased compared with last year.

?#WORKING CAPITAL TURNS O%ER RATIO'
The difference between current assets and current liabilities is called net
working capital. The net working capital ratio is calculated by dividing net working
capital with net assets or capital employed. (urrent assets include cash and bank
balances! investment! raw materials! advance payments! consumable stores and
spares! finished goods! stock in processK semi finished goods
S)1*! Co6*r)tin+ inco9*
Wor8in+ C)6it)1 Turn! O=*r R)tio >
N*t Curr*nt A!!*t!
=orking (apital Turn "ver Ratio (Rs in :akhs
:*)r! S)1*! N*t Curr*nt )!!*t! Wor8in+ c)6it)1
turn o=*r r)tio
5AA6HA% F444%4.A% 16GG5%.F% 5.?%6
5AA%HAG ?19999.61 11G4G5.41 F.6%F
5AAGHA4 ?%1GFA.55 49A?%.1G 6.146
5AA4HA9 %55994.9% G5%16.%A 4.6G9
F?
5AA9H1A %?F?51.46 11AGF1.?G 6.41A

INTERPRETATION '
The ratio is used as a measure of firms li9uidity. The ratio measures the firms
potential reservoir of funds. .rom the above table and (hart! it can be known that the
=orking capital turn over ratio is 4.6G9 in the year 5AA4HA9. The =orking capital turn
over ratio is 6.41A in the year 5AA9H1A. The ratio was decreased compared with last
year.
SCHEDULE OF CHANGES IN WORKING CAPITAL
AS ON ?-
ST
MARCH 0224
R!# In 1)8<!"
P)rticu1)r! A9ount
022F
A9ount
0224
C<)n+*! in
,or8in+
c)6it)1
Incr*)!*
C<)n+*! in
,or8in+
c)6it)1
d*cr*)!*
(urrent assetsI
3nventories 554F1.%9 54446.?4 %A6F.G9 HH
Sundry debtors 5AF1%1.%5 19G9??.?1 HH 651G.51
Sundry receivables 1A5?5.A% 594?%.A1 19%AF.96 HH
(ash and bank balance 1%41.?6 GAG5.?G 6F91.A5 HH
:oans and advances 9G55.?F 4GAF.?1 HH 1A19.A5
Total (urrent
2ssets(2 5?G%F9.56 5G5?61.G4
(urrent liabilitiesI
Sundry creditors ?9A?%.%G F999?.?G 9A65.5A HH
>eposits and retentions 1G%91.?9 194%A.A4 HH 51%4.69
0rovision for ta<ation %6A.6% 1F11.1% HH %%A.%A
F6
3nterest accrued but not
due
4549.?% 4G5?.A5 HH ?F?.6%
"ther current liabilities ?FA9G.G% ?645A.G4 HH 5G55.45
Total (urrent
:iabilities(, 114GG%.1? 116G1A.61
=orking capital (2H, 1544%F.11 16%G?1.5G
5G4G4.1%
#et increase in =.( 5G4G4.1%
Total net =.( 16%G?1.5G 16%G?1.5G ?A1AA.9% ?A1AA.9%
INTERPRETATION'
(urrent 2ssets like 3nventories! (ash; ,ank balance! "ther (urrent asset has
increased in 5AA% than in 5AA6. (urrent :iabilities has decreased in 5AA% than in
5AA6. So! it is the 2sset to the (ompany. The overall 0erformance of the company is
progressive than in 5AAF. The working capital of 5AA% has also increased to the e<tent
of Rs.5G4G4.1% than in 5AA%.
SCHEDULE OF CHANGES IN WORKING CAPITAL
AS ON ?-
ST
MARCH 0225
(Rs. 3n lakhs
P)rticu1)r! A9ount
0224
A9ount
0225
C<)n+*!
in
,or8in+
c)6it)1
Incr*)!*
C<)n+*!
in
,or8in+
c)6it)1
d*cr*)!*
(urrent assetsI
3nventories 54446.?4 5%5F9.?6 5%?%.AF
Sundry debtors 19G9??.?1 1%6%%6.44
F55G4.6F
Sundry receivables 594?%.A1 ?9?AA.A%
1966?.A6

(ash and bank balance GAG5.?G FGA4.F9 FF%?.A4
:oans and advances 4GAF.?1 16%66.1?
%961.GF
Total (urrent
2ssets(2
5G5?61.G4 5%A%%4.95
(urrent liabilitiesI
F%
Sundry creditors F999?.?G %5%4G.F4 55%95.91
>eposits and retentions 194%A.A4 566%F.65 6GAF.??
0rovision for ta<ation 1F11.1% GF46.?G %AG?.F1
3nterest accrued but not
due
4G5?.A5 946F.55 1159.5A
"ther current liabilities ?645A.G4 ??%91.99
1154.G9

Total (urrent
:iabilities(, 116G1A.61 16A141.64
=orking capital (2H, 16%G?1.5G 11A?4G.F? ?%56F.9F
#et decrease in =.( ?%56F.9F
Total net =.( 16%G?1.5G 16%G?1.5G GF444.6A GF444.6A
INTERPRETATION '
(urrent 2ssets like 3nventories! >ebtors! (ash; ,ank balance has increased in
5AAG than in 5AA%. (urrent :iabilities has decreased in 5AAG than in 5AA%.So! it is the
2sset to the (ompany. The overall 0erformance of the company is progressive than
in 5AA%. The working capital of 5AAG has also >ecreased to the e<tent of Rs.?%!56F.9%
than in 5AA%.
SCHEDULE OF CHANGES IN WORKING CAPITAL
AS ON ?-
ST
MARCH 022G
R!# In 1)8<!"
P)rticu1)r! A9ount
0225
A9ount
022G
C<)n+*! in
,or8in+
c)6it)1
Incr*)!*
C<)n+*! in
,or8in+
c)6it)1
d*cr*)!*
(urrent assetsI
3nventories 5%5F9.?6 F9F44.?9 1F1?9.A?
Sundry debtors 1%6%%6.44 1?491G.G4 1%G?4.1A
Sundry receivables ?9?AA.A% 9F%1G.66 ??51G.?9
(ash and bank balance FGA4.F9 F945.?1 5G?.A5
:oans and advances 16%66.1? F?6A.95 155A?.55
Total (urrent
2ssets(2
5%A%%4.95 549F6G.16
(urrent liabilitiesI
Sundry creditors %5%4G.F4 %1G14.A6 9%9.FF
>eposits and retentions 566%F.65 ??9AF.5A 19FF9.%4
0rovision for ta<ation GF46.?G 1FF41.%9 699%.55
FG
3nterest accrued but not
due
946F.55 G1AG.%9 5G?6.6F
"ther current liabilities ??%91.99 G6?19.A? FAG5G.A6
Total (urrent
:iabilities(, 16A141.64

5A5659.%G
=orking capital (2H, 11A?4G.F? 4%45G.?% 5F%69.4%
#et decrease in =.( 5F%69.4%
Total net =.( 11A?4G.F? 11A?4G.F? 46A16.5G 46A16.5G
INTERPRETATION '
(urrent 2ssets like 3nventories! >ebtors! (ash; ,ank balance has increased in
5AA4 than in 5AAG. (urrent :iabilities has decreased in 5AA4 than in 5AAG.So! it is the
2sset to the (ompany. The overall 0erformance of the company is progressive than in
5AAG. The working capital of 5AA4 has also decreased to the e<tent of Rs 5F!%69.4%
than in 5AAG.


SCHEDULE OF CHANGES IN WORKING CAPITAL
AS ON ?-
ST
MARCH 022.
R!# In 1)8<!"
P)rticu1)r! A9ount
022G
A9ount
022.
C<)n+*! in
,or8in+
c)6it)1
Incr*)!*
C<)n+*! in
,or8in+
c)6it)1
d*cr*)!*
(urrent assetsI
3nventories F9F44.?9 ?FA9?.F6 FGA6.4%
Sundry debtors 1?491G.G4 1%945G.19 5A9A9.?1
Sundry receivables 9F%1G.66 15F461.19 FA5FF.96
(ash and bank
balance
F945.?1 %9G?.?6 5995.A?
:oans and advances F?6A.95 F69F.65 1?5.64
Total (urrent
2ssets(2
549F6G.16 F?GF?1.A1
(urrent liabilitiesI
Sundry creditors %1G14.A6 9%6GF.96 F?466.9
>eposits and ??9AF.5A %?45A.FG 1991G.1G
F4
retentions
0rovision for
ta<ation
1FF41.%9 15%%%.?9 G16.5
3nterest accrued but
not due
G1AG.%9 4F99.AG 1591.F4
"ther current
liabilities
G6?19.A? 955%6.6F 1%4?%.?9
Total (urrent
:iabilities(,

5A5659.%G
5G?G56.?1
=orking capital (2H
,
4%45G.?% G5%16.%A 1?511.4%
#et increase in =.( 1?511.4%
Total net =.( 4%45G.?% 4%45G.?% G591A.9 G591A.9
INTERPRETATION '
(urrent 2ssets like 3nventories! >ebtors! (ash; ,ank balance has increased in
5A1A than in 5AA9. (urrent :iabilities has decreased in 5A1A than in 5AA9.So! it is the
2sset to the (ompany. The overall 0erformance of the company is progressive than in
5AA9. The working capital of 5A1A has also decreased to the e<tent of Rs 1?511.4%
than in 5AA9.
SCHEDULE OF CHANGES IN WORKING CAPITAL
AS ON ?-
ST
MARCH 02-2
R!# In 1)8<!"
P)rticu1)r!
A9ount
022.
A9ount
02-2
C<)n+*! in
,or8in+
c)6it)1
Incr*)!*
C<)n+*! in
,or8in+
c)6it)1
D*cr*)!*
(urrent assetsI
3nventories ?FA9?.F6 6GG1G.56 1?%55.9
Sundry debtors 1%945G.19 56G4%A.5? 44AFF.A6
Sundry receivables 15F461.6 45%GG.91 ?11GF.69
(ash and bank
balance
%9G?.?6 119F5.?9 ?964.A?
:oans and advances F69F.65 59AA.6G %95.96
Total (urrent
2ssets(2
F?GF?1.A1 ?1FA44.?%
(urrent liabilitiesI
Sundry creditors 9%6GF.96 4?194.46 15FG6.1
F9
>eposits and
retentions
%?45A.FG 4A416.?F 16996.A%
0rovision for ta<ation 15%%%.?9 1F?1%.%9 G6A.5
3nterest accrued but
not due
4F99.AG 1AA6%.A? 1%6%.9G
"ther current
liabilities
955%6.6F 11F4%9.94 51%A?.?6
Total (urrent
:iabilities(,
5G?G56.?1 FA5F6%.99
=orking capital (2H
,
G5%16.%A 11AGF1.?G F4116.4G
#et decrease in
working capital
F4116.4G
Total net =.( 11AGF1.?G 11AGF1.?G 119949.A9 119949.A9
INTERPRETATION'
(urrent 2ssets like 3nventories! (ash; ,ank balance! :oans and 2dvances has
3ncreased in 5AA9 than 5A1A. (urrent :iabilities has >ecreased in 5A1A than in 5AA9.
So! it is the 2sset to the (ompany. >ebtors have increased in5AA1A than in 5AA9.The
overall 0erformance of the company is progressive in 5A1A. The working capital of
5A1A has also decreased to the e<tent of Rs.F4116.4G than in 5AA9.
FINDINGS
#et working capital ratio has decreased from A.?A6 to A.15A from the year
5AA% to 5AA9 respectively and later in 5AA9 and 5A1A the ratio has increased
to A.15A and A.195. 2ll the years of #et =orking (apital show in the
following table.
J+2RS 5AA% 5AAG 5AA4 5AA9 5A1A
R2T3" A.?A6 A.54A A.19F A.15A A.195
(urrent ratio has increased from 5.FG to 1.54 ..rom 5AA% to 5AAG! 5AA4 and
5AA9 the current ratio has been decreased. The ideal ratio of current ratio 5 I1
2ll the years of (urrent ratio show in the following table.
J+2RS 5AA% 5AAG 5AA4 5AA9 5A1A
R2T3" 5.FG 1.45 1.?? 1.54 1.?F
?A
The 9uick ratio has decreased from 5.1A to 1.15! from 5AA% to 5AA9. .rom
5AA9 and 5A1A the 9uick ratio has been increased. 2ll the years of Tuick ratio
show in the following table.
J+2RS 5AA% 5AAG 5AA4 5AA9 5A1A
R2T3" 5.1A 1.%? 1.5? 1.15 1.5F
The debtors turnover ratio has increased from 5AA% to 5AA9. 3t increased. 2ll
the years of debtor s turnover ratio show in the following table.
J+2RS 5AA% 5AAG 5AA4 5AA9 5A1A
R2T3" 1.91 5.F1 5.9? F.91 F.A1
3nventory stock turnover ratio has increased from G.96 to 9.A6 in the year
5AA% to 5AA9. ne<t year 5AA9 to 5A1A it is decreased. 2ll the years of
inventory stock turnover ratio show in the following table.
J+2RS 5AA% 5AAG 5AA4 5AA9 5A1A
R2T3" G.96 G.99 G.69 9.A6 G.F4
2verage collection period from 5AA% to 5AA9! decreased. 2ll the years of
2verage collection period show in the following table.
J+2RS 5AA% 5AAG 5AA4 5AA9 5A1A
R2T3" 144 164 156 9F 151
The #et profit Ratio is F.969 in the year 5AA9. The nest year ?.?4% in the year
5A1A. 2ll the years of #est profit ratio show in the following table.
J+2RS 5AA% 5AAG 5AA4 5AA9 5A1A
R2T3" 1.%51 F.696 ?.54A F.969 ?.?4%
The gross profit ratio has decreased from 5AA% to 5AA9. 2ll the years of gross
profit ratio show in the following table.
J+2RS 5AA% 5AAG 5AA4 5AA9 5A1A
R2T3" ?G.1
A
?G.6
A
?%.A
A
?A.1
A
?5.5
=orking capital turnover ratio has increased from 5.?%6 to 4.6G9 from the
year 5AA% to 5AA9! the working capital turnover ratio has been decreased5AA9
?1
to 5A1A. 2ll the years of =orking capital turnover ratio show in the
following table.
J+2RS 5AA% 5AAG 5AA4 5AA9 5A1A
R2T3" 5.?%6 F.6%F 6.146 4.6G9 6.41A
There is a fluctuation in cash ratio of RT00 from 5AA% to 5A1A continuously.
2ll the years of cash ratio shown in the following table.
J+2RS 5AA% 5AAG 5AA4 5AA9 5A1A
R2T3" A.A669 A.AA69 A.AA56 A.AA51 A.AA19
SUGGESTIONS
it is suggested to the company to maintain stable working capital. ,ecause the
profitability of the organi/ation is on sound working capital.
3t is suggested to company to proper utili/ation of funds in current assets.
3t is suggested to company to maintain re9uired in hand and bank. "therwise it
difficult to meet short term obligations.
CONCLUSION
The working capital management system followed by URT00U shows
&ade9uate working capital' in last three financial years! the study also under
takes to establish a cause and effect! relationship between variables to aid the
management in making effective forecasts! various crucial areas that need
attention were identified and practical suggestions were given to improve
performance#
?5
BIBLIOGRAPHY
3.).02#>2J! .inancial management!G
th
edition! @ikas publishing house 0vt
ltd! #ew >elhi.1996.
S. #.)28+S=2RJ! .inancial management! ?
th
edition! sultan chand ; sons!
#ew >elhi!199G.
0R2S2##2 (82#>R2! .inancial management! F
rd
edition! Tata mc.
$raw8ill publishing co.ltd! #ew >elhi.194?.
).J.D82# ; 0.D.723#! .inancial management! 5
nd
edition! Tata mc.
$raw8ill publishing co.ltd! #ew >elhi.
=+,S3T+I www. 2pgenco. gov. in.
)2$V3#+SI
(harted financial analysisI 3(.23.

?F
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ?-ST MARCH 0224
Ru6**! in 1)8<!"
PARTICULARS Sc<*du1* Curr*nt Y*)r Pr*=iou! Y*)r

INCOME
R*=*nu* -4 ?GGG4G#24 3-50FF#F4
Ot<*r Inco9* -5 -0254#25 322.33#-? -0234#?G 30.?2-#.3

EHPENDITURE
Co!t o7 G*n*r)tion )nd
Purc<)!* o7 Po,*r -G 02F43-#24 0-F4FG#03
O6*r)tion ,M)int*n)nc*,
Ad9, )nd G*n*r)1 EE6*n!*! -. ?G??F#4F 3GG33#G2
Su;/tot)1 03?.54#5- 043F2?#23
Int*r*!t )nd Fin)nc*
C<)r+*! 02 50-.3#25 ?-4-52#5G G-.35#G? ?343F2#G5
D*6r*ci)tion 5-3-3#?3 530.-#5G
TOTAL ?G5FGF#-0 302530#4F
Pro7it ;*7or* 6rior 6*riod
it*9! -??F.#2- GFF.#0.
Prior P*riod It*9! 0- 53#.G" ?G2#02"
??
EEt)r Ordin)r: It*9! ?5#G?
Pro7it ;*7or* t)E -??.4#-4 G.?.#3.
Curr*nt t)E -0?5#GF 522#.5
D*7*rr*d T)E F4F.#FF ?253#50
Frin+* B*n*7it T)E 50#?.
T)E 7or 6r*=iou! :*)r! -00#3?
N*t Pro7it )7t*r T)E 4?2?#.3 F-4?#G2
Add' Brou+<t 7or,)rd 1o!! 02?GF#5-" 0FF3.#F-"
B)1)nc* C)rri*d to
B)1)nc* S<**t -32G-#55" 02?GF#5-"
E)rnin+! 6*r S<)r* B)!ic
I Di1ut*d" 0#.. 0#3F
F)c* =)1u* o7 R!#-22 6*r
S<)r*"
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
BALANCE SHEET AS AT ?-!t M)rc< 0224
Ru6**! in 1)8<!"
P)rticu1)r! Sc<*du1*
A! )t ?-/?/0224 A! )t ?-/?/022F
Curr*nt Y*)r Pr*=iou! Y*)r
I# SOURCES OF FUNDS
S<)r*<o1d*r! 7und!
S<)r* C)6it)1 - 0-24G2#2- 0-24G2#2-
R*!*r=*! )nd Sur61u! 0 2#22 0-24G2#2- 2#22 0-24G2#2-
Lo)n Fund!
S*cur*d Lo)n! ? 0323F3#.F 02?FF0#.2
Un!*cur*d Lo)n! 3 ?0-240#F5 ?3?240#.?
E961o:** R*1)t*d 7und! F 33G4G?#5. -2-202-#?- 33G452#GF ..F0G4#4G

Tot)1 -002GG-#?0 -02F.44#4.

II# APPLICATION OF
FUNDS

FiE*d A!!*t! 4
Gro!! B1oc8 -32540?#?G -32?.52#5G
L*!!' D*6r*ci)tion FG5.5.#G. F-4GF-#.4
?6
G-.43?#3. GG5--G#G0
C)6it)1 ,or8 in 6ro+r*!! 5 -3.?22#-? .4G.3?#40 4?-2G#?? .F2005#-F

In=*!t9*nt! G 544?3#3- .40?-#.-
Curr*nt A!!*t!, Lo)n! I
Ad=)nc*!
In=*ntori*! . 0GGGF#3G 00G?-#4.
Sundr: D*;tor! -2 -.5.33#3- 02?-4-#40
C)!< )nd B)n8 ;)1)nc*! -- 5250#35 -4G-#3F
Ot<*r Curr*nt A!!*t! -0 0.G34#2- -2030#24
Lo)n! )nd Ad=)nc*! -? G52?#3- .500#3?
0503F-#5G 0354?.#0F
L*!!' Curr*nt Li);i1iti*! )nd
Pro=i!ion! -3 --F5-2#F- --G554#-3
N*t Curr*nt A!!*t! -F453-#05 -0GG4?#--
D*7*rr*d T)E A!!*t -4?-G4#?4 -GG.4?#G4
L*!!' D*77*r*d T)E Li);i1it: -FG.33#-5 3030#-. -5.240#-? ..2-#5?
Mi!c*11)n*ou! EE6*nditur* -F
to t<* *Et*nt not ,ritt*n o77 Or
AdJu!t*d 0?G#24 ?F5#2G
Pro7it )nd 1o!! )ccount -32G-#55 02?GF#5-

Tot)1 -002GG-#?0 -02F.44#4.
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ?-ST MARCH 0225
Ru6**! in 1)8<!"
PARTICULARS Sc<*du1* Curr*nt Y*)r Pr*=iou! Y*)r

INCOME
R*=*nu* -4 3-....#F- ?GGG4G#24
Ot<*r Inco9* -5 -035F#.- 3?035F#30 -0254#25 322.33#-?

EHPENDITURE
Co!t o7 G*n*r)tion )nd Purc<)!* o7
Po,*r -G 0020-4#F3 02F43-#24
O6*r)tion, M)int*n)nc*, Ad9, )nd
G*n*r)1 EE6*n!*! -. F3F3G#25 ?G??F#4F
Su;/tot)1 053543#4- 03?.54#5-
Int*r*!t )nd Fin)nc* C<)r+*! 02 FG25-#3. 50-.3#25
D*6r*ci)tion 52G?G#F0 32?453#40 5-3-3#?3 ?G5FGF#-0
Pro7it ;*7or* 6rior 6*riod it*9! 0GG22#G2 -??F.#2-
Prior P*riod It*9! 0- --3#33 53#.G"
EEt)r Ordin)r: It*9! 2#22 ?5#G?
Pro7it ;*7or* t)E 0G4G4#?4 -??.4#-4
Curr*nt t)E ?0.-#5G -0?5#GF
?%
D*7*rr*d T)E -20-3#.- F4F.#FF
Frin+* B*n*7it T)E 53#25 50#?.
T)E 7or 6r*=iou! :*)r! 3#.G -00#3?
N*t Pro7it -F-22#40 4?2?#.3
Add' Brou+<t 7or,)rd Pro7it 1o!!" -32G-#55" 02?GF#5-"
B)1)nc* C)rri*d to B)1)nc* S<**t -2-G#GF -32G-#55"
E)rnin+! 6*r S<)r* B)!ic I
Di1ut*d" 5#-5 0#..
F)c* =)1u* o7 R!#-22 6*r S<)r*"
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
BALANCE SHEET AS AT ?-!t M)rc< 0225
Ru6**! in 1)8<!"
P)rticu1)r! Sc<*du1*
A! )t ?-/?/0225 A! )t ?-/?/0224
Curr*nt Y*)r Pr*=iou! Y*)r
I# SOURCES OF
FUNDS
S<)r*<o1d*r! 7und!
S<)r* C)6it)1 - 0-24G2#2- 0-24G2#2-
R*!*r=*! )nd Sur61u! 0 -2-G#GF 0--4.G#G4 2#22 0-24G2#2-
Lo)n Fund!
S*cur*d Lo)n! ? 0.3.F5#G0 0323F3#.F
Un!*cur*d Lo)n! 3 ?235.2#.0 ?0-240#F5
E961o:** R*1)t*d 7und! F 3?230.#4? -2?2-5G#?5 33G4G?#5. -2-202-#?-
D*77*r*d T)E Li);i1it: -F-?4.#40
L*!!' D*77*r*d T)E A!!*t -3F?.4#.2 F.50#50
Tot)1 -035G3.#.F -002GG-#?0
II# APPLICATION
OF FUNDS
FiE*d A!!*t! 4
Gro!! B1oc8 -3-4G0-#2. -32540?#?G
L*!!' D*6r*ci)tion 4F4FFF#30 FG5.5.#G.
54204F#45 G-.43?#3.
C)6it)1 ,or8 in 6ro+r*!! 5 ?-5F5F#3- -255G3-#2G -3.?22#-? .4G.3?#40

?G
In=*!t9*nt! G F.320#F2 544?3#3-
Curr*nt A!!*t!, Lo)n! I
Ad=)nc*!
In=*ntori*! . 040?.#3F 0GGGF#3G
Sundr: D*;tor! -2 -4F44F#GG -.5.33#3-
C)!< )nd B)n8 ;)1)nc*! -- ?52G#?. 5250#35
Ot<*r Curr*nt A!!*t! -0 3.322#24 0.G34#2-
Lo)n! )nd Ad=)nc*! -? -F4FF#-3 G52?#3-
04244G#.0 0503F-#5G
L*!!' Curr*nt Li);i1iti*!
)nd Pro=i!ion! -3 -F2-G-#FG --F5-2#F-
N*t Curr*nt A!!*t! --23G5#?3 -F453-#05
D*7*rr*d T)E A!!*t -4?-G4#?4
L*!!' D*77*r*d T)E
Li);i1it: -FG.33#-5 3030#-.
Mi!c*11)n*ou!
EE6*nditur* -F
to t<* *Et*nt not ,ritt*n
o77 or AdJu!t*d --.#2? 0?G#24
Pro7it )nd 1o!! )ccount -32G-#55

Tot)1 -035G3.#.F -002GG-#?0
?4
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ?-ST MARCH 022G
Ru
6**! in 1)8<!"
PARTICULARS Sc<*du1* Curr*nt Y*)r Pr*=iou! Y*)r

INCOME
R*=*nu* -4 34-5?2#00 3-....#F-
Ot<*r Inco9* -5 F5G03#45 F-.FF3#G. -035F#.- 3?035F#30

EHPENDITURE
Co!t o7 G*n*r)tion )nd
Purc<)!* o7 Po,*r -G 03.-23#G- 0020-4#F3
O6*r)tion, M)int*n)nc*,
Ad9, )nd G*n*r)1
EE6*n!*! -. -203F0#24 F3F3G#25
Su;/tot)1 ?F-FF4#G5 053543#4-
Int*r*!t )nd Fin)nc*
C<)r+*! 02 4F5F-#.0 FG25-#3.
D*6r*ci)tion 4.2.F#5? 3G4323#F0 52G?G#F0 32?453#40
Pro7it ;*7or* 6rior 6*riod
it*9! ??-F2#?5 0GG22#G2
Prior P*riod It*9! 0- -?5?#GF" --3#33
EEt)r Ordin)r: It*9! 05#.. 2#22
Pro7it ;*7or* t)E ?33.4#0? 0G4G4#?4
Curr*nt t)E ?.2G#30 ?0.-#5G
D*7*rr*d T)E -25?.#3? -20-3#.-
Frin+* B*n*7it T)E G3#5. 53#25
T)E 7or 6r*=iou! :*)r! 3#.G
N*t Pro7it -.54?#F. -F-22#40
Add' Brou+<t 7or,)rd
Pro7it 1o!!" -2-G#F -32G-#55"
B)1)nc* C)rri*d to
B)1)nc* S<**t F-.-#-F -2-G#GF
E)rnin+! 6*r S<)r*
B)!ic I Di1ut*d" .#?G 5#-5
F)c* =)1u* o7 R!#-22 6*r
S<)r*"
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
?9
BALANCE SHEET AS AT ?-!t M)rc< 022G
Ru6**! in 1)8<!"
P)rticu1)r! Sc<*du1*
A! )t ?-/?/022G A! )t ?-/?/0225
Curr*nt Y*)r Pr*=iou! Y*)r
I# SOURCES OF
FUNDS
S<)r*<o1d*r! 7und!
S<)r* C)6it)1 - 0-24G2#2- 0-24G2#2-
R*!*r=*! )nd Sur61u! 0 -.54?#F. 0?233?#42 -2-G#GF 0--4.G#G4
Lo)n Fund!
S*cur*d Lo)n! ? 3G-?03#4- 0.3.F5#G0
Un!*cur*d Lo)n! 3 0?0?F.#.4 ?235.2#.0
E961o:** R*1)t*d 7und! F 3-43??#20 --?2--5#F. 3?230.#4? -2?2-5G#?5
D*77*r*d T)E Li);i1it: -F-?4.#40
L*!!' D*77*r*d T)E A!!*t -45-0#-4 -3F?.4#.2 F.50#50
Tot)1 -?-?5505?#?F -035G3.#.F
II# APPLICATION OF
FUNDS
FiE*d A!!*t! 4
Gro!! B1oc8 -424-..#.2 -3-4G0-#2.
L*!!' D*6r*ci)tion 50F435#50 4F4FFF#30
GG2FF0#-G 54204F#45
C)6it)1 ,or8 in 6ro+r*!! 5 32?4.-#-. -0G303?#?5 ?-5F5F#3- -255G3-#2G

In=*!t9*nt! G 4020#F2 F.320#F2
Curr*nt A!!*t!, Lo)n! I
Ad=)nc*!
In=*ntori*! . ?.?GG#3. 040?.#3F
Sundr: D*;tor! -2 -3G.-5#5G -4F44F#GG
C)!< )nd B)n8 ;)1)nc*! -- ?.G0#3- ?52G#?.
Ot<*r Curr*nt A!!*t! -0 .?4-5#FF 3.322#24
Lo)n! )nd Ad=)nc*! -? ?3F2#.0 -F4FF#-3
0G.?F5#-F 04244G#.0
L*!!' Curr*nt Li);i1iti*!
)nd Pro=i!ion! -3 020F0.#45 -F2-G-#FG
N*t Curr*nt A!!*t! G4G05#3G --23G5#?3
D*7*rr*d T)E A!!*t
L*!!' D*77*r*d T)E Li);i1it:
Mi!c*11)n*ou! EE6*nditur* -F
to t<* *Et*nt not ,ritt*n o77
or AdJu!t*d --.#2?
Pro7it )nd 1o!! )ccount

Tot)1 -?5505?#?F -035G3.#.F
6A
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ?-ST MARCH 022.

Ru6**! in 1)8<!"
PARTICULARS Sc<*du1* Curr*nt Y*)r Pr*=iou! Y*)r

INCOME
R*=*nu* -4 400..G#.4 34-5?2#00
Ot<*r Inco9* -5 -?GG3#F? 4?4GG?#3. F5G03#45 F-.FF3#G.

EHPENDITURE
Co!t o7 G*n*r)tion )nd
Purc<)!* o7 Po,*r -G ?5?2.-#25 03.-23#G-
O6*r)tion, M)int*n)nc*,
Ad9, )nd G*n*r)1 EE6*n!*! -. 4.3?.#4? -203F0#24
Su;/tot)1 330F?2#52 ?F-FF4#G5
Int*r*!t )nd Fin)nc*
C<)r+*! 02 45-4F#02 4F5F-#.0
D*6r*ci)tion 550.4#2- FG4..-#.- 4.2.F#5? 3G4323#F0
Pro7it ;*7or* 6rior 6*riod
it*9! 3.G.-#FG ??-F2#?5
Prior P*riod It*9! 0- -?42#??" -?5?#GF"
EEt)r Ordin)r: It*9! 0#02 05#..
Pro7it ;*7or* t)E F-03.#5- ?33.4#0?
Curr*nt t)E FG24#F. ?.2G#30
D*7*rr*d T)E 025--#?2 -25?.#3?
Frin+* B*n*7it T)E -?F#00 G3#5.
T)E 7or 6r*=iou! :*)r! 3.#05"
N*t Pro7it 0343F#G5 -.54?#F.
Add' Brou+<t 7or,)rd
Pro7it 1o!!" F-.-#-F -2-G#F
B)1)nc* C)rri*d to B)1)nc*
S<**t -F.2G#2G F-.-#-F
E)rnin+! 6*r S<)r*
B)!ic I Di1ut*d" --#52 .#?G
F)c* =)1u* o7 R!#-22 6*r
S<)r*"
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
BALANCE SHEET AS AT ?-!t M)rc< 022.
Ru6**! in 1)8<!"
61
P)rticu1)r! Sc<*du1*
A! )t ?-/?/022. A! )t ?-/?/022G
Curr*nt Y*)r Pr*=iou! Y*)r
I# SOURCES OF
FUNDS
S<)r*<o1d*r! 7und!
S<)r* C)6it)1 - 0-24G2#2- 0-24G2#2-
R*!*r=*! )nd Sur61u! 0 3332.#34 0FF2G.#35 -.54?#F. 0?233?#42
Lo)n Fund!
S*cur*d Lo)n! ? 5-G432#G3 3G-?03#4-
Un!*cur*d Lo)n! 3 -..3.F#4. 0?0?F.#.4
E961o:** R*1)t*d 7und! F ?.G330#.5 -?-4F5.#F2 3-43??#20 --?2--5#F.
D*77*r*d T)E Li);i1it:
L*!!' D*77*r*d T)E A!!*t ?530?#34 -45-0#-4
Tot)1 -42.2.0#3? -?-?5505?#?F
II# APPLICATION
OF FUNDS
FiE*d A!!*t! 4
Gro!! B1oc8 -432332#2- -424-..#.2
L*!!' D*6r*ci)tion G20G55#5F 50F435#50
G?5F40#04 GG2FF0#-G
C)6it)1 ,or8 in 6ro+r*!! 5 4.G.-0#25 -F?4353#?? 32?4.-#-. -0G303?#?5

In=*!t9*nt! G G?2?#F2 4020#F2
Curr*nt A!!*t!, Lo)n! I
Ad=)nc*!
In=*ntori*! . 3?2.3#?F ?.?GG#3.
Sundr: D*;tor! -2 -4.G05#-. -3G.-5#5G
C)!< )nd B)n8 ;)1)nc*! -- 4.53#3F ?.G0#3-
Ot<*r Curr*nt A!!*t! -0 --FFF-#F2 .?4-5#FF
Lo)n! )nd Ad=)nc*! -? ?F.?#F0 ?3F2#.0
??.23-#2- 0G.?F5#-F
L*!!' Curr*nt Li);i1iti*!
)nd Pro=i!ion! -3 05350F#3- 020F0.#45
N*t Curr*nt A!!*t! 43?-F#42 G4G05#3G
D*7*rr*d T)E A!!*t
L*!!' D*77*r*d T)E
Li);i1it:
Mi!c*11)n*ou!
EE6*nditur* -F
to t<* *Et*nt not ,ritt*n
o77 or AdJu!t*d
Pro7it )nd 1o!! )ccount

Tot)1 -42.2.0#3? -?5505?#?F
65
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ?-ST MARCH 02-2
Ru6
**! in 1)8<!"
PARTICULARS Sc<*du1* Curr*nt Y*)r Pr*=iou! Y*)r

INCOME
R*=*nu* -4 43?30-#GF 400..G#.4
Ot<*r Inco9* -5 -F?3G#24 4FG54.#.- -?GG3#F? 4?4GG?#3.

EHPENDITURE
Co!t o7 G*n*r)tion )nd
Purc<)!* o7 Po,*r -G ?5025.#.. ?5?2.-#25
O6*r)tion, M)int*n)nc*,
Ad9, )nd G*n*r)1 EE6*n!*! -. 53G0-#4F 4.3?.#4?
Su;/tot)1 334.2-#43 330F?2#52
Int*r*!t )nd Fin)nc* C<)r+*! 02 G2-52#-0 45-4F#02
D*6r*ci)tion G24G.#52 42554-#34 550.4#2- FG4..-#.-
Pro7it ;*7or* 6rior 6*riod
it*9! F-22G#3F 3.G.-#FG
Prior P*riod It*9! 0- G.0#55" -?42#??"
EEt)r Ordin)r: It*9! ?304#F5 0#02
Pro7it ;*7or* t)E 3G353#4F F-03.#5-
Curr*nt t)E G0?G#05 FG24#F.
D*7*rr*d T)E --?52#?4 025--#?2
Frin+* B*n*7it T)E -?F#00
T)E 7or 6r*=iou! :*)r! 3.#05"
N*t Pro7it 0GG44#20 0343F#G5
Add' Brou+<t 7or,)rd Pro7it
1o!!" -F.2G#2G F-.-#-F
B)1)nc* C)rri*d to B)1)nc*
S<**t 32203#?G -F.2G#2G
E)rnin+! 6*r S<)r* B)!ic
I Di1ut*d" -?#52 --#52
F)c* =)1u* o7 R!#-22 6*r
S<)r*"
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
BALANCE SHEET AS AT ?-!t M)rc< 02-2
Ru6**! in 1)8<!"
P)rticu1)r! Sc<*du1* A! )t ?-/?/02-2 A! )t ?-/?/022.
6F
Curr*nt Y*)r Pr*=iou! Y*)r
I# SOURCES OF
FUNDS
S<)r*<o1d*r! 7und!
S<)r* C)6it)1 - 0-24G2#2- 0-24G2#2-
R*!*r=*! )nd Sur61u! 0 532F0#0G 0G35?0#0. 3332.#34 0FF2G.#35
Lo)n Fund!
S*cur*d Lo)n! ? GG.-F5#5F 5-G432#G3
Un!*cur*d Lo)n! 3 -G4243#45 -..3.F#4.
E961o:** R*1)t*d 7und! F ?GG544#.4 -34?.G.#?G ?.G330#.5 -?-4F5.#F2
D*77*r*d T)E Li);i1it:
L*!!' D*77*r*d T)E A!!*t 3G5.?#G0 ?530?#34
Tot)1 -5.5F-F#3. -42.2.0#3?
II# APPLICATION OF
FUNDS
FiE*d A!!*t! 4
Gro!! B1oc8 -G53-0F#32 -432332#2-
L*!!' D*6r*ci)tion GG?-.G#G2 G20G55#5F
..2.04#42 G?5F40#04
C)6it)1 ,or8 in 6ro+r*!! 5 4.FG2F#.0 -4G45?0#F0 4.G.-0#25 -F?4353#??

In=*!t9*nt! G F-#F2 G?2?#F2
Curr*nt A!!*t!, Lo)n! I
Ad=)nc*!
In=*ntori*! . F55-5#0F 3?2.3#?F
Sundr: D*;tor! -2 0F5G42#03 -4.G05#-.
C)!< )nd B)n8 ;)1)nc*! -- --.?0#3. 4.53#3F
Ot<*r Curr*nt A!!*t! -0 G0455#.- --FFF-#F2
Lo)n! )nd Ad=)nc*! -? 0.22#F5 ?F.?#F0
3-?2GG#34 ??.23-#2-
L*!!' Curr*nt Li);i1iti*! )nd
Pro=i!ion! -3 ?20?F4#.. 05350F#3-
N*t Curr*nt A!!*t! --25?-#35 43?-F#42
D*7*rr*d T)E A!!*t
L*!!' D*77*r*d T)E Li);i1it:
Mi!c*11)n*ou! EE6*nditur* -F
to t<* *Et*nt not ,ritt*n o77
or AdJu!t*d
Pro7it )nd 1o!! )ccount

Tot)1 -5.5F-F#3. -42.2.0#3?
6?