NTPC Complete Project Done For 6 Sem (3) NTPC

MAJORPROJECT
REPORT
ON
“A Study on Financial Analysis ratio of NTPC
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

In partial fulfillment of the require for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
2013-2016
SUPERVISED BY: -
Mrs.DEEPTI GAUR ANKITA KAR
(FACULTY GUIDE) ROLL NO: 01250601713
NEW DELHI INSTITUTE OF MANAGEMENT

61, TUGHLAKABAD, NEW DELHI-62
ACKNOWLEDGEMENT
Any accomplishment requires the effort of many people and this work is not different.
Regardless of the source, I wish to express my gratitude to those who may have contributed to
this work, even though anonymously.
First I would like to express my deepest sense of gratitude to NEW DELHI INSTITUTE OF
MANAGEMENT for providing me with an opportunity for training and encouragement in
conducting the research work.
I would like to pay my sincere thanks to my project guide, Mrs. DEEPTI GAUR under whose
guidance I was able to complete my project successfully. I have been fortunate enough to get all
the support, encouragement and guidance from her needed to explore, think new and initiate.
My final thanks go out to my parents, family members, teachers and friends who encouraged me
countless times to persevere through this entire process.
ANKITA KAR
CERTIFICATE
This is to certify that the project titled “A Study on Financial Analysis on NTPC” submitted by
ANKITA KAR to New Delhi Institute of Management, Guru Gobind Singh Indraprastha
University in partial fulfillment of requirement for the award of the Bachelor of Business
Administrationdegree is an original piece of work carried out under my guidance and may be
submitted for evaluation.
The assistance rendered during the study has been duly acknowledged.
No part of this work has been submitted for any other degree.
Place: New Delhi Faculty Guide:-MRS. DEEPTI GAUR

TABLE OF CONTENTS
PAGE
TOPIC CONTENT NO.
1.1 General Information about the industry
Chapter-1
Introduction 1.2 Industry profile
Chapter-2 2.1 origin
2.2 Growth and development

Profile of the
Organization 2.3 Present status of organization
2.4 Functional departments of organization
Organizational structure and organizational

2.5 chart
2.6 Product and service profile
2.7
Market profile of organisation
Chapter-3 3.1 Statement of Research Problem
3.2 Statement of Research Objectives
Study of the
Selected Research 3.3 Research design and mythology
Problem
Chapter-4 4.1
analysis of
data
analysis
4.2
summary
of findings

Chapter-5 5.1 Summary and Conclusion
Summary and
Conclusion 5.2 Recommendation
annexure
bibliography
CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION
NTPC Limited (formerly known as National Thermal Power Corporation Limited) is a
Central Public Sector Undertaking (CPSU) under the Ministry of Power, Government of India,
engaged in the business of generation of electricity and allied activities. It is a company
incorporated under the Companies Act 1956 and a "Government Company" within the meaning
of the act. The headquarters of the company is situated at New Delhi. NTPC's core business is
generation and sale of electricity to state-This report provides an analysis and evaluation of the
current and past profitability, liquidity and financial stability of NTPC Ltd. Method of analysis is
“ratio such as liquidity, owned power distribution companies and State Electricity Boards in
India. The company also undertakes consultancy and turnkey project contracts that comprise of
engineering, project management, construction management and operation and management of
power plants. The company has also ventured into oil and gas exploration and coal mining
activities. It is the largest power company in India with an electric power generating capacity of
42,964 MW.Although the company has approx. 18% of the total national capacity it contributes
to over 27% of total power generation due to its focus on operating its power plants at higher
efficiency levels (approx. 83% against the national PLF rate of78%).
It was founded by Government of India in 1975, which held 75% of its equity shares on 31
March 2013 (after divestment of its stake in 2009, 2010 and 2013).
In May 2010, NTPC was conferred Maharatna status by the Union Government of India. It is
listed in Forbes Global 2000 for 2014 at 424th rank in the world.
Other calculations include rates of return on shareholder’s equity and total assets and earnings
per share to name a few. All calculations can be found in the appendices.
NTPC Ltd. Is a global giant in power sector.It actually does not have tough competition in India.
While NTPC’S generate around 39000 MW its competitors like Reliance power and Tata
power’s generation is around 2500 MW. Clearly the capacity and performance are not
comparable. That is why this project does not include comparative financial analysis of NTPC
Ltd. and its competitors.
Source of the primary data was regular interaction with the officials at NTPC Ltd. Secondary
data includes the information gathered from various journals and periodicals, annual reports and
websites. The sampling procedure employed for this is judgmental sampling a convenience
sampling technique in which elements are based on the judgmental of researcher.
In financial analysis, a ratio is used as a benchmark for evaluation the financial position and
performance of a firm. The absolute accounting figures reported in the financial statements do
not provide a meaningful understanding of the performance and financial position of a firm.
Liquidity ratio measure’s the firm’s ability to meet current obligations. Liquidity ratios, by
establishing a relationship between cash and other current assets to current obligations, provide a
quick measure of liquidity.
Solvency ratios show the proportions of debt and equity in financing the firm’s assets there
should be an appropriate mix of debt and owners equity in financing the firm’s assets.
Turnover ratios reflect the firm’s efficiency in utilizing its assets. Activity ratios are employed to
evaluate the efficiency with which the firm manages and utilizes its assets.
Profitability ratio’s measure the overall performance and effectiveness of the firm. The
profitability ratios are calculated to measure the operating efficiency of the company.
Results of data analysis show that all ratios are competent and above industry’s average ratio.
Ratio analysis was done for past five years i.e. from March 2007-2011. Since NTPC Ltd. belongs
to power sector industry where gestation period for new projects is always more than 3-5 years,
therefore a part of capital gets blocked in such projects. Thus relationship cannot be established
between the capital and sales. That is the reason such capital do not form part of capital
employed for the purpose of calculation in different financial statements.
NTPC Ltd. has a company in its growth stage. In order to achieve its ambitious capacity,
additional targets, the company has to build on its capabilities and leverage its expertise in power
project execution. Accordingly NTPC Ltd. has revised its delegationof powers and has
empowered its regions and projects to enable faster decision making. The total income of NTPC
Ltd. for the year 2010-2011 increased by 16.59% to Rs. 57,399.49 corers from Rs. 49,233.88
corers during 2011-12.
In order to strengthen its competitive advantage in power generation business, the company is
continuing to plan, to diversify its portfolio to emerge as an integrated power major, with
presence across entire energy value chain through backward and forward integration into areas
such as coal mining, manufacturing activities, power trading etc.
The company is well on its way to becoming “an integrated power major’, having entered into
Hydro power, coal and mining; power trading.NTPC has made long strides in developing its Ash
utilization business. In its pursuit of diversification, NTPC has also developed strategic alliances
and joint ventures with leading national and international companies.
Objectives of Study
The main objectives of this study aimed are:
To evaluate the performance of the company by using ratios as a yardstick to measure the
efficiency of the company and analyze various facts of the financial performance of the
company.
To understand the liquidity, profitability and efficiency positions of the company during
the study period.
To make comparisons between the ratios during different ratios.
To gain the overall idea about the organization.
To gain and enhance different managerial skills.
To find out financial performance of the organization.
To find out the importance of finance in business.
To study the investment decisions based on the return.
To gain a firsthand knowledge about the structure and the functioning of the finance.
Ratio analysis is the process of establishing and interpreting various ratios for helping in making
certain decisions. There are numbers of ratios which can be calculated from the information
given in the financial statement, but for the purpose of this particular study we have selected
appropriate data and calculated only a few appropriate ratios.
SCOPE OF STUDY
The scope of the project on the topic “financial analysis ratio on NTPC” is limited to five
financial years i.e. march 2007-11. All the information, figures and findings mentioned in the
project are based on the data as available in the annual report of past five years. The study on the
financial statements will help the interested parties to know about the overall financial health of
the company. The ratios are helpful to forecast the future of the organization based on the past
performance.
NTPC Ltd. is a global giant in power sector. It actually does not have a tough competition in
India. While NTPC generates 39000 MW and its competitors like Reliance power and Tata
Power’s generation is around 2500 MW. Clearly the capacity and performance is not
comparable.
A study on the working capital management is done at NTPC India Ltd. It is an Indian leading
multi-product electric engineering organization with expertise and experience in the field of
Electrical products and its accessories. The study focuses on NTPC past five years working
capital management and its credit policy there by identifying how NTPC efficiently balance
between the risk and profitability.
1.2 INDUSTRY PROFILE
a. Origin and development of the industry
Before independence
The British controlled the Indian power industry firmly before independence. The then legal and
policy framework was conductive to private ownership with and much regulation with regard to
operational safety
Post independence
Immediately after independence, the country was faced with capacity restraint. India adopted a
socialist structure for economic growth and major industries were controlled by public sector
enterprise. By 1970’s India had nationalized most of its energy assets, due to its commitment to
social goals. By the late 1980’s the Indian economy felt the strain of the socialist agenda
followed since independence. Faced with a serious deterioration in public finance and balance of
payment crisis, the Union Government as part of its policy of economic liberalization allowed
greater investment by private sector in the power industry.
POWER
Constitutional position
Power as a matter of legislative and executive competence, falls in the concurrent list. Both the
Parliament and State legislatures have the right to pass laws on the matter and any law passed by
the Parliament overrides the existing state laws unless
The existing law is conserved or saved from such a repeal or

A law passed by the State legislature receives acknowledgement from the President of
India.
Post liberalization
Understanding the critical part played by the power industry, the Union Government passed
several laws and restricted the power industry to gear it up to meet the challenges passed to the
Indian economy post Liberalization.
NTPC Ltd. (formerly National Thermal Power Corporation) is the largest Indian state-owned
electric utilities company based in New Delhi, India. It is listed in Forbes Global 2000 for 2011
ranked it 348th in the world. It is an Indian public company listed on the Bombay stock exchange
in which at present the Government of India holds 84.5% of its equity. With a current generating
capacity of 39,174 MW, NTPC has embarked on plans to become a 75,000 MW company by
2017. It was founded on November 7, 1975.
Pursuant to a special resolution passed by the shareholder’s at the company’s Annual general
Meeting on September 23, 2005 and the approval of the central Government under Section 21 of
the Companies Act, 1956, the name of the company “ National Thermal Power Corporation
Limited”, has been changed to “NTPC Limited” with effect from October 28, 2005. The primary
reason for this is the company’s foray into hydro and nuclear based power generation along with
backward integration by coal mining.
NTPC’s core business is engineering, construction and operation of power generating plants and
providing consultancy to power utilities in India and abroad.
The total installed capacity of the company is 39,174 MW with 16 coal based and & gas based
stations, located across the country. In addition under JV’s, 7 stations are coal based and another
station uses naphtha/LNG as fuel. The company has set a target to have an installed power
generating capacity of 1,28,000 MW by the year 2032. The capacity will have a diversified fuel
mix comprising 56% coal, 16% gas, 11% nuclear and 17% renewable energy sources including
hydro. By 2032, non fossil fuel based generation capacity shall make up nearly 28% of NTPC.
b. GROWTH AND PRESENT STATUS OF THE INDUSTRY
NTPC has been operating its plants at high efficiency levels. Although the company has 17.75%
of the total national capacity, it contributes 27.40% of the total power generation due to its focus
on high efficiency.
NTPC has been operating its plants at high efficiency levels. Although the company has 19% of
the total national capacity it contributes 29% of the total power generation due to its focus on
high efficiency. NTPS’s share at 31 march 2001 of the total installed capacity of the country was
24.51% and it generated 29.68% of the power of the country in 2008-09. Every fourth home in
India is lit by NTPC. As at 31 march 2011 NTPC’s share of the country’s total installed capacity
is 17.75% and it generated 27.4% of the power generation of the country in 2010-2011.
C .FUTURE GOALS
NTPC Limited is on an expansion spree to meet the power requirements of the country – it has
targeted to add 14,058 MW in 12th Plan (From FY13 to FY 17) of which it had already added
4,170 MW in the year 2012-13 and 1,780 MW from April to 26 March 2014. Dr. Arup Roy
Choudhury, Chairman and Managing Director, NTPC, said that capacity addition through
greenfield projects, expansion of existing stations, joint ventures and takeover of SEB stations
were on the cards.
NTPC also plans to go global. The public sector company has signed a memorandum of
agreement with the Government of Sri Lanka and Ceylon Elecricity Board for setting up a 500
MW (2x250) coal-based thermal power plant in the island nation. AnMoU has also been signed
with Kyushu Electric Power Co. Inc., Japan for establishing an alliance for exchange of
information and experts from different areas of the business. The company is also in the process
of finalisinganMoU with Nigeria for setting up power plants against allocation of LNG on long-
term basis for NTPC plants in India. NTPC also developing a joint-venture coal-based power
plant 1,320 MW (2x660) with Bangladesh Power Development Board known as Bangladesh
India Friendship Power Company in Bangladesh..
NTPC has also been allotted coal blocks namely, PakriBarwadih, ChattiBariatu and Kerandari in
Jharkhand, Talipalli, Chhattisgarh and Dulanga, Odisha. Besides these recently Ministry of Coal
has vide its press release dated 3 July 2013 has allotted 4 more blocks namely, Banai and
Bhalmuda in Chhattisgarh, Chandrabila and KudanliLaburi in Odisha. All these mines are having
estimated Geological Reserves of 5.7 Billion Tonnes. The Company has also incurred a
cumulative expenditure of INR 18,360 million on these mines till December 2013. As per the
MOU dated 22 February 2014, signed between NTPC, BSPGCL (Bihar State Power Holding
Company Limited) and LBCPL (LakhisaraiBijlee Company Private Limited). NTPC will
develop a 1,320 MW (2x660) Thermal Power Project at KajraLakhisarai, India
 Hydro power: In order to give impetus to hydro power growth in the country and to have
a balanced portfolio of power generation, NTPC entered hydro power business with the
800 MW Koldam hydro projects in Himachal Pradesh. Two more projects have also been
Taken up in Uttarakhand .A wholly owned subsidiary, NTPC Hydro Ltd. , is setting up
hydro projects of capacities up to 250 MW.
 Renewable energy: In order to broad base its fuel mix NTPC has plan of capacity
addition of about 1,000 MW through renewable resources by 2017
 Nuclear power: A joint venture company “Anushakti Vidhyun Ltd.” has been formed for
development of nuclear power projects in the country.
 Coal mining: In a major backward integration move to create fuel security, NTPC has
ventured into coal mining business with an aim to meet about 20% of its coal requirement
from its captive mines by 2017.The Government of India has so far allotted 7 coal blocks
to NTPC, including 2 blocks to be developed through joint venture route.
 Power trading: ’NTPC Vidyut Vyapar Nigam Ltd.’ (NVVN), a wholly owned subsidiary
was created for trading power leading to optimal utilization of NTPC’s assets. It is the
second largest power trading company in the country. In order to facilitate power trading
in the country, ’National Power Exchange Ltd.’, a JV of NTPC , NHPC, PFC and TCS
has been formed for operating a power exchange.
 Ash business: NTPC has focused on the utilization of ash generated by its power stations
to convert the challenge of ash disposal into an opportunity. Ash is being used as a raw
material input by cement companies and brick manufacturers. NVVN is engaged in the
business of Fly ash export and sale to domestic customers. Joint ventures with cement
companies are being planned to set up cement grinding units in the vicinity of NTPC
stations.
 Power distribution: ‘NTPC Electric Supply Company Ltd.’ (NSECL), a wholly owned
subsidiary of NTPC, was set up for distribution of power. NESCL is actively engaged in
‘Rajiv Gandhi Garmin VidyutikaranYojana’ programmer for rural electrification.
 Equipment manufacturing: Enormous growth in power sector necessitates augmentation

of power equipment manufacturing capacity. NTPC has formed JV’s with BHEL and
Bharat forge Ltd. for power plant equipment manufacturing. NTPC has also acquired
stake in Transformers and Electricals Kerala Ltd. for manufacturing and repair of
transformers.
SUBSIDIARIES:-
NTPC ELECTRIC SUPPLY COMPANY LTD. (NESCL)
The company was formed on august 21, 2002. It is a wholly owned subsidiary company of
NTPC with the objective of making a foray into the business of distribution and supply of
electrical energy, as a sequel to reforms initiated the power sector. Company was also mandated
to take up consultancy and other assignments in the area of electrical distribution management
system.
Maiden entry into the power distribution by forming 50:50 companies KINESCO power and
utility power ltd. with Kerala industrial infrastructural development corporation already
distributing power in KINFRA owned industrial theme parks.
With the objective of sect oral support in the area of distribution, NESCL has assigned the
responsibility of implementing rural electrification works under Rajiv Gandhi
Garminvidyutikarayojana.
NTPC VIDYUT VYAPAR NIGAM LTD.
The company was formed on November 1, 2002 as a wholly owned subsidiary company of
NTPC. The company’s objective is to undertake sale and purchase of electric power, to
effectively utilize installed capacity and thus enable reduction in the cost of power. Company
holds category ‘I’ trading license from CERC and traded 5549.0 MUs in 2009-10. Company has
been designated as the nodal agency for across border trading with Bhutan and Bangladesh.
Future trends
According to experts the private sector plays a greater role in power generation and
foreign investments would increase.
The government of India’s hydrocarbon vision 2025 gives the guidelines for the policies
in India for the next 25 years.
CHAPTER 2
PROFILE OF THE ORGANISATION

2.1 ORIGIN OF THE ORGANISATION
India’s largest power company, NTPC was set up in 1975 to accelerate power development in
India; NTPC is emerging as a diversified power major with presence in the entire value chain of
power generation business. Apart from power generation, which is the mainstay of the company,
NTPC has already ventured into consultancy, power trading, ash utilization and coal mining.
NTPC ranked 317th in the ‘2009’, Forbes Global 2000’ ranking of the world’s biggest
companies.
The total installed capacity of the company is 32,694 MW with 15 coal based and 7 gas based
stations, located across the country. In addition, under JV’s 4 stations are coal based and another
station uses naphtha/LNG as fuel. By 2017, the power generation portfolio is expected to have a
diversified fuel mix with coal based capacity of around 53,000 MW 10,000 MW through gas,
9,000 MW through hydro generations about 2,000 MW from nuclear sources and around 1,000
MW from nuclear sources and around 1,000 MW from renewable energy sources. NTPC has
adopted a multi-pronged growth strategy which includes capacity addition through green field
projects.
NTPC has been operating its plants at high efficiency levels. Although the company 18.10% of
the total national capacity, it contributes 28.6%of total power generation to its focus on high
efficiency.
CORPORATE MISSIONS
Make available reliable and quality power in increasingly large quantities at competitive
prices and ensure timely realization of revenues.
Adopt a broad based capacity of portfolio including hydro power, LNG, nuclear power
and non-conventional and eco-friendly fuels.
Be an integrated utility by implementing strategic development in areas such as power
trading, generation assets etc.
Lead fundamental and applied research for adoption of State of the art technologies
breakthrough efficiency improvements and new fuels.
Be a socially responsible corporate entity with thrust on environmental protection as
community development and energy conservations.
Plan and speedily implement power projects using state of the art technologies.
Develop a strong portfolio of profitable business in overseas markets including technical
services, generation assets etc.
Continuously attract and develop competent and commitment human resources to match
world standards.
CORPORATE OBJECTIVE
In pursuance with the vision and mission, the following are the corporate objectives of NTPC:-
To realize the vision and mission, eight key corporate objectives have been identified. These
objectives would provide a link between the defined mission and the functional strategies.
Business portfolio growth
• To further consolidate NTPC's position as the leading thermal power generation company in
India and establish a presence in hydro power segment.
• The broad base the generation mix by evaluating conventional and non-conventional sources of
energy to ensure long run competitiveness and mitigate fuel risks.
• To diversify across the power value chain in India by considering backward and forward
integration into area such as power trading, transmission, distribution, coal mining, coal
beneficiation etc.
• To develop a portfolio of generation assets in international markets.
• To establish a strong services branding in the domestic and international markets
2.2 GROWTH AND DEVELOPMENT OF THE ORGANISATION
To further consolidate NTPC’s position as the leading thermal power generation

company in India and establish a presence in hydro power segment.
The broad base the generation mix by evaluating conventional and non conventional
sources of energy to ensure long run competiveness and mitigate fuel risks.
To diversify across the power value chain in India by considering backward and
forward integration into areas such as power trading, transmission, distribution, coal
mining etc.
To develop a portfolio of generation assets in international markets.
To establish a strong service branding in the domestic and international markets
CUSTOMER FOCUS
• To foster a collaborative style of working with customers, growing to be a preferred Brand for
supply of quality power.
• To expand the relationship with existing customers by offering a bouquet of services in
addition to supply of power e.g. trading, energy consulting, distribution -consulting, management
practices.
• To expand the future customer portfolio through profitable diversification into downstream
businesses, Intel alia retail distribution and direct supply.
• To ensure rapid commercial decision making, using customer specific information, with
adequate concern for the interests of the customer.
AGILE CORPORATION
To ensure effectiveness in business decisions and responsiveness to change in

the business environment by:
- Adopting a portfolio approach to new business development.
-Continuous and co-ordinate assessment of the business environment to identify and

respond to opportunities and threats.
To develop a learning organization having knowledge based competitive edge

in the future business.
To effectively leverage information strategy to ensure speedy decision- making

in the organization.
PERFORMANCE LEADERSHIP
To continuously improve on project execution time and use in order to

sustain long term competitiveness in generation.
To operate and maintain NTPC’s stations at par with the best utilities in
the world with respect to reliability, efficiency, productivity, and costs.
To aim for performance excellence in the diversification of business.
To embed quality in all systems and process.
HUMAN RESOURCE DEVELOPMENT
To enhance organizational performance by institutionalizing an objective and open

performance management system.
To enhance commitment of employees by recognizing and rewarding high-performance.
To build and sustain learning organization of competent world class professionals.
To align individual and organizational and develop business leaders by implementing a

career development system.
To enhance commitment of employees by recognizing and rewarding high performance.
To build and sustain learning organization of competent world class professionals.

To institutionalize core value and create culture of team building, empowerment, equity,
which would motivate employees and enable achievement of strategic objectives.
FINANCIAL SOUNDNES
To maintain and improved financial soundness of NTPC by prudent management of

financial resources.
To continuously strive to reduce the cost of capital through prudent management of
development funds, leveraging opportunities in domestic and international financial
markets.
To develop appropriate commercial policies and processes, which would ensure
remunerative tariffs and minimize receivables?
To continuously strive for reduction in cost of power generation by improving operating
practices.
SUSTAINABLE POWER DEVELOPMENT
To contribute to sustainable power development by discharging corporate social

responsibility.
To lead the sector in the area of resettlement and rehabilitation and environment
protection including effectiveness such as ash-utilization, peripheral development and
energy conservation practices.
To lead developmental efforts in the Indian power sector through efforts policy advocacy,
assisting customers in reform, disseminating best practices in the operations and
management of power plants.
SUCCESS IN OPERATION AND MAINTENANCE
The company was operating a sizeable feet of coal-based units with varying units sizes,
technologies and vintages. Having tasted unprecedented success in the project implementation,
the organization was keen on replicating its success story in operation and maintenance of its
power stations. It worked towards being a consistent performer in terms capacity utilization and
efficiency parameters. The highest figure of NTPC stations positively affected the overall
capacity utilization of the sector which otherwise hovered around the dismally low levels of
50%. Maintenance practices, in line with best international practices, resulted in NTPC plants
clocking efficiency parameters, which not only set benchmarks in the context but also compared
favorably with international figures.
NEW DIRECTION FOR THE COMPANY
These were indeed difficult times for generation. The company needed to respond quickly to the
changes in the business environment, deteriorating financial health of the customers, advent of
regulators into the sector and possibility of competition in the not so distant future. It started by
revisiting its corporate plan 1985-2000. This ambitious plan outlined strategy to enable NTPC to
retain its leadership position in the next millennium and help it to become a company.
NTPC record is very impressive PLF and availability in this decade. Capacity utilization figures
have been consistently higher than 80% since 2005-06. The PLF and availability touched an all
time high of 87.51% and 91.2% respectively in 2008-09. The company had drawn up an
ambitious capacity addition of plan over 9000 MW in the ninth and tenth plan.
2.3 PRESENT STATUS OF THE ORGANIZATION
In line with the Corporate Disclosure requirements, we wish to inform you that NTPC Ltd. has
signed a MoU with Government of Andhra Pradesh (GoAP) to develop 1000 MW Solar Power
Project(s) at suitable sites identified by GoAP in a phased manner. The projects will be
implemented on Build-Own-Operate basis in the State of Andhra Pradesh.
The Board of Directors of NTPC Ltd. at its meeting held on September 10, 2014 has accorded
the investment approval for the following:
 Tanda Super Thermal Power Project, Stage-II (2x660 MW) in the state of Uttar Pradesh
at an appraised current estimated cost of Rs. 9188.98 Core; and
 Rammam Hydro Electric Project, Stage-III (3x40 MW) in the state of West Bengal at an
appraised current estimated cost of Rs.1381.84 Core.
In accordance with the approval given by Cabinet Committee on Economic Affairs on

22.11.2012, Government of India offers up to 3, 67,86,240 equity shares of face value of Rs. 10/-
to the eligible employees of NTPC Ltd. at a discounted price of Rs. 138.27 per equity share (5%
discount to the cut-off price of Rs. 145.55 discovered in the offer for Sale of equity shares
ofNTPC Ltd. carried out by Government of India on 07.02.2013). The Department Of
Disinvestment, Ministry of Finance, Government of India vide their letter No. 4(18)/2012-DOD
Vol.II dated 09.04.2014 has advised NTPC to complete the formalities for issue of shares to the
eligible employees latest by 31.05.2014.
In connection with the above, action has been taken by NTPC for sale of equity shares to the
eligible employees of NTPC Ltd. by the Government of India. The offer shall remain open from
28.05.2014 to 30.05.2014 (both days inclusive).
2.4 FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION
FUNCTIONAL DEPARTMENTS
1.FINANCE AND 2. HUMAN RESOURCE 3. OPERATION
ADMINISTRATION MANAGEMENT
FINANCE AND ADMISNISRATION
Every businessman’s intention is to make profit, so business transaction needs to be recorded in a

specific format for the calculation of profit or loss at the end of year. Finance department is very
important for every organization to keep the finance related information. Finance department is
also responsible for planning of funds requirement in the future and it needs to find the sources
finance.
OBJECTIVES OF THE DEPARTMENT
a. Ensure regular and sufficient supply of capital in the business.

b. Ensure affair rate of return to the supplier of the capital
c. Ensure the best utilization of capital by following the principals of liquidity, profitability
etc.
STRUCTURE OF FINANCE AND ADMINISTRATION DEPARTMENT
It is very important for every organization to be set up. It is the backbone of any organization.
Similarly the finance department plays a very important role in setting and running up of Chief
accountant manager.
The chief manager and accounts manager handles various activities under the finance
department. Each of them has task cut out systematically in these areas.
In NTPC, finance and accounts department is divided into 8 sub departments:-
Books and budget

Commercial station
Store bill section
Works bill section
Establishment section
Miscellaneous section
Vetting and concurrence
Price store ledger section
HUMAN RESOURCE MANAGEMENT
HRM can be defined as managing, planning, organizing, directing and controlling the functions
human relations with a view to contribute proportional to the organization individual and
sectional goals.
Functions of HRM:-
Managerial function
Planning
Organizing
Directing
Controlling
Operative function
Employment
Human resource management
Compensation
OPERATION AND MAINTENANCE DEPARTMENT
NTPC has consistent track record of high availability of plant load factor across diverse
technologies. It has emphasized predictive systems to achieve this track record.
Planning start up including pre-operational checks
Laboratory tests and field tests
Supervision of equipment repairs and unit overall
Performance analysis and optimization
2.5 ORGANIZATION STRUCTURE AND ORANIZATION CHART

In line with the Corporate Disclosure requirements, we wish to keep you informed on the
following:
1) The three years’ tenure of the following non-official part-time Directors, who were
appointed by the President of India through Letter No. 8/6/2011-Th.I (Pt.) dated
26.08.2011 of Ministry of Power, has been completed on 25.08.2014:
 Shri S.B. Ghosh Dastidar
 Shri R.S. Sahoo
Accordingly, these Directors have ceased to be the non-official part-time Directors of NTPC
w.e.f. 25.08.2014.
2) The Office of the Comptroller & Auditor General of India, through Letter No./CA.
V/COY/CENTRAL GOVERNMENT, NTPC(6)/103 dated 30th July 2014 has appointed the
following firm(s) of Chartered Accountants as the Joint Statutory Auditors of the Company for
the year 2014-15:
 M/s. O P Bagla & Co., Chartered Accountants, New Delhi
 M/s. P S D Associates, Chartered Accountants, New Delhi
 M/s. P K F Sridhar & Santhanam, Chartered Accountants, Hyderabad

 M/s. V. Sankar Aiyar & Co., Chartered Accountants, Mumbai
 M/s. Ramesh C Agrawal & Co., Chartered Accountants, Allahabad
 M/s. A R & Co., Chartered Accountants, New Delhi
Thus, M/s. K.K. Sony& Co., Chartered Accountants, New Delhi have ceased to be the Joint
Auditors of the Company and in their place M/s P S D Associates, Chartered Accountants, New
Delhi have been appointed as Auditors for the year 2014-15.
In line with the Corporate Disclosure requirements, we wish to keep you informed on the
following:
1) The three years’ tenure of the following non-official part-time Directors, who were appointed
by the President of India through Letter No. 8/6/2011-Th.I (Pt.) dated 26.08.2011 of Ministry of
Power, has been completed on 25.08.2014:
 Shri S.B. Ghosh Dastidar
 Shri R.S. Sahoo
Accordingly, these Directors have ceased to be the non-official part-time Directors of NTPC
w.e.f. 25.08.2014.
2) The Office of the Comptroller & Auditor General of India, through Letter No./CA.
V/COY/CENTRAL GOVERNMENT, NTPC(6)/103 dated 30th July 2014 has appointed the
following firm(s) of Chartered Accountants as the Joint Statutory Auditors of the Company for
the year 2014-15:
 M/s. O P Bagla & Co., Chartered Accountants, New Delhi
 M/s. P S D Associates, Chartered Accountants, New Delhi
 M/s. P K F Sridhar & Santhanam, Chartered Accountants, Hyderabad
 M/s. V. Sankar Aiyar & Co., Chartered Accountants, Mumbai
 M/s. Ramesh C Agrawal & Co., Chartered Accountants, Allahabad
 M/s. A R & Co., Chartered Accountants, New Delhi

Thus, M/s. K.K. Sony& Co., Chartered Accountants, New Delhi have ceased to be the Joint
Auditors of the Company and in their place M/s P S D Associates, Chartered Accountants, New
Delhi have been appointed as Auditors for the year 2014-15.
CSR Structure
2.6PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION
It gets hot enough in India to stress even the healthiest resident, but India's largest power
company, National Thermal Power Corporation (NTPC), thankfully generates enough electricity
to run a lot of air conditioners, as well as keep the wheels of industry turning. State-run NTPC,
which generates more than 24% of India's power supply, has 16 coal-based and 7 gas-based
stations. The company's plants (including joint ventures) have a combined capacity of more
than 39,670 MW and feed distribution grids throughout India; prices are determined by India's
Electricity Act. NTPC also offers global power consulting and engineering and construction
services. India's national government controls most of NTPC's stock.
Top Competitors for NTPC LIMITED
 GAIL (INDIA) LIMITED
GAIL (India) Limited is no blowhard when it comes to turning energy into profits. The largest
gas transmission and marketing company in India, GAIL owns more than 9,500 km of pipeline
and has a 78% market share in India's natural gas transmission business. It has seven
gas processing units and owns India's largest gas-based petrochemicals complex. In
addition, GAIL has major domestic exploration and production operations. It also has a fiber-
optic cable network of 13,000 km that provides bandwidth to telecommunications carriers. It is
also involved in liquefied natural gas import projects. The company is also exploring buying US
shale assets.
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win more business with Hoover's Industry Report. Proprietary editorial analysis synthesizes
hundreds of sources into an easy-to-digest format so that you can quickly understand a client's
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financial benchmarks is an integral part of each report.
financial benchmarks is an integral part of each report.
CESC LIMITED
Power to the people is both the philosophy of the West Bengal Government and the practice
of publicly traded CESC, the sole power provider in Kolkata (formerly known as Calcutta) and
surrounding areas of eastern India. The utility transmits and distributes electricity to nearly 2.3
million customers and has a generating capacity of about 1,000 MW from four coal-fired
generating stations (Budge Budge, New Cross pore, Southern, and Titograd.
CESC's distribution network includes 9,300 circuit miles of power cable and 5,000
transformers.The company is controlled by RPG Enterprises.
Industry Report Electric Power Generation
business challenges.
Insight into critical business issues, industry trends and opportunities, and financial benchmarks
is an integral part of each report.
2.7 MARKET PROFILE OF THE ORGANIZATION
It gets hot enough in India to stress even the healthiest resident, but India's largest power
company, National Thermal Power Corporation (NTPC), thankfully generates enough electricity
to run a lot of air conditioners, as well as keep the wheels of industry turning. State-run NTPC,
which generates more than 24% of India's power supply, has 16 coal-based and 7 gas-based
stations. The company's plants (including joint ventures) have a combined capacity of more
than 39,670 MW and feed distribution grids throughout India; prices are determined by India's
Electricity Act. NTPC also offers global power consulting and engineering and construction
services. India's national government controls most of NTPC's stock.
NTPC reported revenues of INR181b, up 16% YoY but lower than our estimate of INR191b.
Similarly, EBIDTA stood at INR32.7b, below estimate of INR39.3b. Lower tax rate/adjustment
of tax refund in tax and revenues led to lower than estimated numbers, in our view. Reported
PAT stood at INR22b, which includes prior period revenue of INR2.3b. Adjusted PAT thus was
lower at INR19.7b, vs estimate of INR23.3b. We understand that NTPC has accounted tariffs as
per new regulations.
NTPC Limited (NTPC) is an India-based company engaged in the generation and sale of bulk
power to state power utilities. The Company’s other business includes providing consultancy,
project management and supervision, oil and gas exploration, and coal mining. The Company’s
projects under construction include Bongaigaon-I with a capacity of 750 Megawatts (MW), Bar-I
with a capacity of 1,980 MW, Bar-II with a capacity of1,320 MW, Gadarwara with a capacity of
1,600 MW, and Remand with a capacity of 500 MW. The Company has an installed capacity of
approximately 42,000 MW. The Company’s subsidiaries include NTPC Electric Supply
Company Limited, NTPC Vidyut Vyapar Nigam Limited, NTPC Hydro Limited, Kanti Bijlee
Utahan Nigam Limited and Bhartiya Rail Bijlee Company Limited
NTPC Limited has informed the Exchange that NTPC Ltd. has signed a MoU with Government
of Andhra Pradesh (GoAP) to develop 1000 MW Solar Power Project(s) at suitable sites
identified by GoAP in a phased manner. The projects will be implemented on Build-Own-
Operate basis in the State of Andhra Pradesh.
The government has priced the followon public offer of NTPC at Rs 201 per share, at a 5%
discount to Monday's closing price, hoping to attract individual investors who showed a lack of
interest in some of the high-profile offers that hit the market in recent months. ET NOW was the
first to announce the price of the follow-on offer.
The government will mop up a minimum of Rs 8,286 corer from the sale of 41.22 corer shares,
representing 5% of the existing paid-up capital of NTPC, India's largest power producer. The
proposed offer will open for subscription on February 3. Since this is the first issue through the
French auctioning route, the government mobilization may go up significantly. Half of the issue
will be sold through auctions.
At the time of giving the mandate, bankers had assured the government that they would be able
to sell the shares at Rs 250 per share or above, provided the market remained bullish, said a
senior NTPC official.
On Monday, the bankers recommended a discount of 8% to the current price of Rs 211 per share.
Based on the recommendations of the four bankers, the empowered group of ministers (eGoM),
which met on Monday evening, agreed to give a 5% discount to the current market price. "NTPC
issue should not be equated with recent public offerings of other power companies that failed to
make major gains in trading. The company's shares have been in the market for some time and
has given good returns to investors," said the government official quoted earlier.
NTPC last tested the market with its initial public offer in October 2004. That time the public
offer involved issue 5.25% of fresh equity shares and sale of equivalent (5.25%) number of
shares held by the government. The issue raised over Rs 5,000 corer
CHAPTER 3
STUDY OF THE SELECTED
RESEARCH PROBLEM
3.1 STATEMENT OF RESEARCH PROBLEM
To identify the areas of financial strength and financial weakness of the retail industry in India
by analyzing the financial health in terms of the liquidity position, solvency position, efficiency
level and the profitability position of the company.
STATEMENT OF RESEARCH OBJECTIVE
 To know the borrowings of the company as well as the liquidity position of the
company.
 To study the current assets and current liabilities so as to know whether the
shareholders could invest in Unicorn Investment Solutions or not.
 To study the profits of the business and net sales of the business and to know the
stock reserve for sales of the business.
 To know the solvency of the business and the capacity to give interest to the long
term loan lenders (debenture holders) and dividend to the share holders.
METHODOLOGY:-
With the help of past 5 years, data collected from annual reports of NTPC. We can analyze the
working capital through the following steps:-
(1).collection of data
(2).tabulation of data
(3) formulation of data
(4)analysis of data
Research is the systematic process of collecting and analyzing data in order to increase our
understanding of the phenomenon about which we are concerned or interested. It is the in depth
search for knowledge. It is a careful investigation or inquiry especially through search for new
facts in any branch of knowledge. The study exhibits exploratory research. The interpretation of
data is done based on ratio and percentage.
EXPECTED CONTRIBUTION FROM THE STUDY OF REPORT
The project report can facilities the understanding and analyzing the following point:-
(1) How to maintain the liquidity of the company
(2) It is helpful in understanding the credit policy of the company
(3) It is helpful in taking better short-term investment decision.
(4) It is helpful in analyzing the financial soundness of the company.
LIMITATIONS
 The project work may necessarily have the following limitations:
 It always considered the quantitative factor not the qualitative factor.
 It always provides historical information but cant provide any further information
 There are so many factors over which we have no control but they affect.
 The study is purely based on the information contained in the annual reports and
companywebsite, so the study is limited to the data collected from them.
 The data are collected from a single office of NTPC India Ltd., so it is difficult to
generalize on it about the working of entire NTPC operation.
 The reliability and accuracy of the calculation depends very much on the information
found in the financial statements and its reliability
3.3RESEARCH DESIGN AND METHODLOGY
Analytical research design is used in this study, which means the researcher has to use the facts
and information already available and analyze these to make a critical evaluation of the material.
RATIO ANALYSIS
Ratio analysis is the process of determining and interpreting numerical relationships based on
financial statements. A ratio is simply one number expressed in terms of another. It shows the
arithmetical relationship between any two figures. A ratio, in general, is a statistical yardstick by
means of which the relationship between the figures can be compared and measured. The
financial ratios focus attention on the inter- relationship between the figures appearing in the
financial statements.
Ratio may be expressed in the following three ways:
(A) Ratio. Specially the simple division of one number by another, e.g., current assert to current
liability ratio is 2:1
(B) Rate. The ratio between two numerical facts, usually ossver a period of time, e.g., ‘stock
turnover is three times a year’.
(C) Percentage. A special type of rate which expresses the relation in hundredth, e.g., ‘gross
profit is 25% on sales.
The technique of ratio analysis is the most important tool of financial analysis. It helps in
comparison of the performance of various firms and judging their financial soundness,
profitability and efficiency. Ratios must be worked out on the basis of figures which are related
to each other in a significant manner. Computations of ratios of unrelated figures do not serve
any purpose. For example, there is no meaningful relationship between total debtors and paid-up
capital. But there is a definite relationship between debtors and credit sales or between current
assets and current liabilities.
ADVANTAGES OF RATIO ANALYSIS
The ratio analysis is very useful because of the following reasons:
Helpful in simplifying financial data : Ratio analysis is helpful in simplifying the complex and
large figures of financial statements which enable to understand their relative importance.
 Helpful in determining trends: by the use of ratio analysis, the trend in profit, sales, cost,
etc. of the previous year can be determined by analyzing the financial statement and
future forecasts can be made accordingly.
 Helpful in controlling: by comparing the ratio regarding efficiency and financial position
with the standard ratios, unfavorable results can be controlled.
 Helpful in locating weak spots : with the help of ratio analysis, management can find out
which activities are being operated successfully and which are not and where more
control is required.
 Helpful in measuring operating efficiency ; ratio analysis is also helpful to asses the
managerial efficiency. It helps in determining whether the assets are being used optimally
or not.
 Benefits to other parties interested in the business: creditors can determine short term
solvency of business with the help of ratio analysis. Financial institutions and long term
creditor can determine whether the business is capable to repay their loan and interest in
time.
LIMITATIONS OF RATIO ANALYSIS
There are certain limitations of the ratio analysis technique and they should be kept in mind
while using them in interpreting financial statements:
 Limited use of single ratio: whether the conclusions are drawn from analyzing the
financial statements, they should not be based on single ratio, rather all the related
ratios should be considered for this purpose. Single ratio cannot provide all
information on a particular aspect.
 Wrong ratios based on wrong data: ratios are determined on the basis of information
presented in financial statements, but financial statements are also affected by a
number of limitations which affect the quality of ratios.
 Incorrect comparison: all ratios are not appropriate for all firms because the
circumstances are different for different industries. Accordingly, their standards are
also different.
 Different meaning: different persons interpret the ratios in different ways. For
example, profit may mean profit before interest or after interest or profit before tax or
after tax.
 Difficulty in forecasting: ratios are calculated on the basis of previous year’s

performance. Forecasting the future on their basis is difficult because it is not
necessary that the past events like managerial policies, economic circumstances will
continue in future also.
 Lack of proper standards: there is no such standard which applies to all firms and
industries and on the basis of which comparative study can be made because the
nature of the firm and circumstances for each firm are different. Different ratios need
to be identified for them.
PLAN OF STUDY:-
A proper and systematic approach is essential in any project work. Proper planning should be
conducting the data collection, completion and presentation of the project. Each and every step
must be so planned that it leads to the next step automatically. This systematic approach is a
blend of planning and organization and major emphasis is given to independence of various
steps.
RESEARCH PURPOSE:-
The purpose of the research was to criteria on which investment of the company is raised every
year and a favorable rate of return is arrived at, increasing the net result of the company as per
their budget.
RESEARCH OBJECTIVE:-
Keeping in view the importance of NTPC the study generally aims at evaluating the final
performance of NTPC.
The main objective of the research is:-
To know the investment decisions.

To analyze the investment depending upon internal rate of return.
RESEARCH APPROACHES:-
The most appropriate research is descriptive. This is because the goal of the study is clear
approach which will help to understand the concept better.
The information was collected from various sources which are listed below:-
For the official document.
From records and manuals of different departments of the organization.

From a close observation of the functioning of various departments of the organizations.
Last but not least, knowledge, both positive and negative precipitated through informal
discussions with employees of different departments.
CLASSIFICATION OF DATA:-
SOURCES OF DATA
Primary Data Secondary Data
 PRIMARY
Primary data has been obtained through personal discussions with Finance manager and
senior officials of the organization.
 SECONDARY
Secondary data’s has been obtained from published reports like the annual reports of the
company, balance sheets, and profit and loss account, booklets, records such as files,
reports maintained by the company. Mainly the annual report consists of two parts;
 Profit and Loss Account
 Balance Sheet
Profit and loss account reveals the income and expenditure of the company. Balance
Sheet reveals the financial position of the organization. Those two statements are
prepared by the highly qualified and experts with the help of available information or
data
SAMPLING TECHNIQUE:-
The sampling procedure employed for this judgmental sampling a convenience sampling
technique in which elements are based upon the judgment of researcher software tools used for
the data analysis.
CHAPTER 4
FINDINGS AND ANALYSIS

THEORITICAL PERSPECTIVE
RATIO ANALYSIS:
financial statements. A ratio is simply one number expressed in terms of another. It shows the
arithmetical relationship between any two figures. A ratio, in general, is a statistical yardstick by
means of which the relationship between the figures can be compared and measured. The
financial ratios focus attention on the inter- relationship between the figures appearing in the
financial statements.
Ratio may be expressed in the following three ways:
(D) Ratio. Specially the simple division of one number by another, e.g., current assert to current
liability ratio is 2:1
(E) Rate. The ratio between two numerical facts, usually over a period of time, e.g., ‘stock
turnover is three times a year’.
(F) Percentage. A special type of rate which expresses the relation in hundredth, e.g., ‘gross
profit is 25% on sales.
The technique of ratio analysis is the most important tool of financial analysis. It helps in
comparison of the performance of various firms and judging their financial soundness,
profitability and efficiency. Ratios must be worked out on the basis of figures which are related
to each other in a significant manner. Computations of ratios of unrelated figures do not serve
any purpose. For example, there is no meaningful relationship between total debtors and paid-up
capital. But there is a definite relationship between debtors and credit sales or between current
assets and current liabilities
ADVANTAGES OF RATIO ANALYSIS

The ratio analysis is very useful because of the following reasons:
 Helpful in simplifying financial data: Ratio analysis is helpful in simplifying the complex
and large figures of financial statements which enable to understand their relative
importance.
 Helpful in determining trends: by the use of ratio analysis, the trend in profit, sales, cost,
etc. of the previous year can be determined by analyzing the financial statement and
future forecasts can be made accordingly.
 Helpful in controlling: by comparing the ratio regarding efficiency and financial position
with the standard ratios, unfavorable results can be controlled
 Helpful in locating weak spots: with the help of ratio analysis, management can find out
which activities are being operated successfully and which are not and where more
control is required.
 Helpful in measuring operating efficiency : ratio analysis is also helpful to asses the
managerial efficiency. It helps in determining whether the assets are being used optimally
or not.
 Benefits to other parties interested in the business: creditors can determine short term
solvency of business with the help of ratio analysis. Financial institutions and long term
creditor can determine whether the business is capable to repay their loan and interest in
time.
LIMITATIONS OF RATIO ANALYSIS
There are certain limitations of the ratio analysis technique and they should be kept in mind
while using them in interpreting financial statements:
 Limited use of single ratio: whether the conclusions are drawn from analyzing the
financial statements, they should not be based on single ratio, rather all the related
ratios should be considered for this purpose. Single ratio cannot provide all
information on a particular aspect.
 Wrong ratios based on wrong data: ratios are determined on the basis of information
presented in financial statements, but financial statements are also affected by a
number of limitations which affect the quality of ratios.
 Incorrect comparison: all ratios are not appropriate for all firms because the
circumstances are different for different industries. Accordingly, their standards are
also different.
 Different meaning: different persons interpret the ratios in different ways. For
example, profit may mean profit before interest or after interest or profit before tax or
after tax.
 Difficulty in forecasting: ratios are calculated on the basis of previous year’s
performance. Forecasting the future on their basis is difficult because it is not
necessary that the past events like managerial policies, economic circumstances will
continue in future also.
 Lack of proper standards: there is no such standard which applies to all firms and
industries and on the basis of which comparative study can be made because the
nature of the firm and circumstances for each firm are different. Different ratios need
to be identified for them.
CLASSIFICATION OF RATIOS
The following classification is based on the financial statement from which the ratios are
calculated. Thus, there are:
(A) Liquidity Ratios
(B) Leverage or Capital Structure Ratios
(C) Activity Ratios
(D) Profitability Ratios or Income Ratios
Examples of ratios that can be calculated under each of the above categories are as follows:
(A) Liquidity Ratios
 Current ratio
 Liquid ratio
(B) Leverage or Capital Structure Ratios
 Debt Equity Ratio
 Debt to Total Funds Ratio
 Proprietary Ratio
 Fixed Assets to Proprietor’s Fund Ratio
 Capital Gearing Ratio
 Interest Coverage Ratio
(C) Activity Ratios
 Stock Turnover Ratio
 Debtors Turnover Ratio
 Creditors Turnover Ratio
 Working Capital Turnover Ratio
 Fixed assets-turnover ratio
(D) Profitability Ratios
 Gross Profit Ratio
 Net Profit Ratio
 Operating Ratio
 Expenses Ratio
 Return on Capital Employed
ANALSIS FOR SHORT-TERM CREDITORS

The analysis is also called analysis for ‘short-term solvency’ of the company. Short-term
creditors of the company are primarily interested in knowing the company’s ability to pay its
short-term creditors as and when they become due. For this purpose creditors focus their
attention on the company’s cash- generation power and on company’s total current assets in
relation to its total current liabilities.
(i) LIQUIDITY RATIOS
Liquidity refers to the ability of the company to meet its current obligations. The liquidity ratios,
therefore, have to do with the size and relationships of current liabilities, which are the
obligations soon becoming due, and current assets, which presumably provide the source from
which these obligations will be met. A company’s financial position is not sound unless it has
adequate liquidity.
Liquidity ratios include two ratios:
(a) Current ratio.
(b) Quick ratio.
(a) CURRENT RATIO
The current ratio is computed by dividing current assets by current liabilities.

The formula for its computation is as follows:
Current Assets
Current Liabilities
OBJECTIVES:
Current ratio is the relation of a company’s current assets to its current liabilities. This ratio
establishes the ability of the business to meet its short-term obligations and is, therefore, of
particular significance to short-term creditors. It is always desirable that in a business there
should be a considerable excess of current assets over current liabilities. In a business, a 2:1 ratio
of current assets to current liabilities is treated a satisfactory relation, which may vary from
business to business. For example, there may be large amounts of bad debts or stocks may
become unsalable or losses may occur in realization of short-term investments.
(b) QUICK RATIO
Quick ratio is calculated by dividing quick current assets by current liabilities. The formula for
its computation is as follows:
Quick Current Assets
Current Liabilities
OBJECTIVES:
This ratio is a better test of financial strength than the current ratio as its gives no consideration
to stocks which may be very slow moving and may not be easily convertible into cash. Stock in
trade may take a lot of time before it is converted into debtors or bill receivable and finally into
cash. Similarly, ‘prepaid or unexpired expenses’ do not provide cash at all; they merely reduce
the amount of cash required in one period because of payment in a prior period. Quick ratio is a
measure of the instant debt paying capacity of the business enterprise. It is, therefore, a measure
of the extent to which liquid resources are immediately available to meet current obligations. It is
a supplementary measure of liquidity and places more emphasis on immediate conversion of
assets into cash than does the current ratio. A quick ratio of 1:1 has usually been considered
favorable since for every rupee of current liabilities there is a rupee of quick assets. But accounts
receivable (or sundry debtors) may not be convertible into cash at face value on a short notice.
SOLVENCY RATIO- AN ANALYSIS FOR LONG-TERM CREDITORS
Long-term creditors include debenture holders, vendors selling equipment in installment basis
and other financiers supplying long-term loans. Long- term creditors are primarily interested in
whether the company has ability to pay regular interest due to them and to repay the principal at
the maturity date. Solvency ratios indicate ability of the company to meet its interest costs and
repayment schedules associated with its long-term indebt ness. The lenders are mainly interested
in:
Security of their loans
Interest payable thereon
Repayment of their loans at maturity date
Thus, solvency ratios primarily include.
(a) Debt-equity ratio
(b) Interest coverage ratio
(c) Debt to total fund ratio.
(a) DEBT-EQUITY RATIO
This ratio expresses the relationships of long term liability to net worth. Long-term liabilities are
those which are repayable after one year and these are other than those appearing under ‘current
liabilities’. The long-term or term liabilities include debentures and other secured and unsecured
loans which are repayable after one year. Net worth or equity represents equity share capital,
reserves, irredeemable preference share capital and preference share capital not redeemable
within a period of 12years from the date of the balance sheet. Preference shares redeemable
within 12 years are considered as debt. It is computed as follows:
Debt
Equity
OBJECTIVES:
This ratio is a measure of owner’s stake in the business. Proprietors are always keen to have
more funds from borrowings because:
1. Their stake in the business is reduced and subsequently their risk too.
2. Interest on loans or borrowings is a deductible expenditure while computing taxable
profits. Dividend on shares is not so allowed by income tax authorities.
But creditors always like proprietors to have more stakes in the venture, because it provides a
margin of safety to them. Moreover, excessive outside debt may cause insolvency of the business
and is harmful. On net worth is possible, provided the growth plans are to be funded from
untapped borrowings. The other aspect of high debt is that profits would be adversely affected in
case of a fall in sales.
(b)INTEREST COVERAGE RATIO

Here, ‘net income’ stands for net income before charging income tax and interest on long-term
debts and ‘debt service’ stands for interest on long-term debts. This ratio is calculated as follows
Net Income Before Charging Interest and Income Tax
Periodic Interest on long term debt
OBJECTIVES:
Since the borrower has earned 5 times the fixed interest to be paid to long-term creditors after
meeting out his usual business expenses, he is likely to pay off his liability on account of interest
and other periodic fixed profits are calculated keeping future in mind, this type of ratio can serve
as a good index on long-term solvency. The interest coverage ratio of debt-service ratio indicates
how much interest charges are covered by operating profits available to pay the interest
charges..A low ratio indicates excessive use of debt or inadequate operations. Thus, both these
ratios- debt-equity ratio and interest coverage ratio- help the creditors and investors of the
company to assess the financial status of the company in order to take a rational decision for
long-term investment of their funds in the business.
(c) DEBTS TO TOTAL FUNDS RATIO

The ratio compares the total liabilities to total assets. It is computed by the formula:
Debts x 100
Total Assets
OBJECTIVES:
This ratio indicates the extent of trading on equity and measures the percentage of assets
financed through borrowings.
ACTIVITY RATIOS- AN ANALSIS FOR MEASURING THE MOVEMENT OF

CURRENT ASSETS
Both the current ratio ant the acid test ratio will be misleading if debtors are too high because of
slow credit collections. Similarly, the current ratio will be misleading if stock is too high because
it is not being turned over (sold) as fast as it should be. Since liquidity ratio (i.e., current ratio
and acid test ratio) ignore the movement of current assets, it is necessary for short-term creditors
to focus their attention on the analysis of policy for collection of debtors and turnover of stock.
Activity ratios signify the effective utilization of a concern of its available resources. Mainly,
activity ratios include:
(a)Capital Turnover Ratio
(b)Fixed Assets Turnover Ratio
(c)Net Working Capital Turnover Ratio
(d)Stock Turnover Ratio
(e)Debtors’ Turnover Ratio
(a) CAPITAL TURNOVER RATIO:
This ratio is computed by the following formula:

Net sales or Cost Of Sales
Capital Employed
OBJECTIVES:
This ratio measures the effectiveness with which a firm uses financial resources as its disposal.
An enterprise must make full use of fixed assets at its disposal, must maintain stocks at proper
levels and debts must be realized in time. Variations in capital turnover ratio must be properly
looked into. A low ratio may signify that the capital is lying idle or that there is a fall In sales
have been suppressed or that any of the constituents of capital employed has been inflated.
Management sometimes suppresses sales by resorting to deliberate manipulation. Sales relating
to current year may be shown as sales of the next accounting period. A high capital turnover
ratio.Indicates that either the business firm is overtrading to an extent that its financial health is
in risk or danger or there is manipulation in the figures.
(b)FIXED ASSETS TURNOVER RATIO
This ratio is computed by dividing the net sales or cost of sales of the concern bt its net fixed
assets.
The formula used is:
Net Sales
Fixed Assets Less Depreciation
OBJECTIVES:
This ratio is expressed in as number of times. Examples of fixed assets are land and buildings,
plant and machinery, furniture, etc. this ratio shows the efficiency of the business house in
utilizing its fixed assets. Higher this ratio, better it is because it indicates higher efficiency, i.e.,
every rupee invested in fixed assets generates higher sales. A lower ratio signifies inefficiency of
assets. It may also point to the underutilization or non-utilization of certain assets. With the help
of this ratio, arrangement for disposal or alternative uses of such unutilized or underutilized
assets may be made.
(c) NET WORKING CAPITAL TURNOVER RATIO
This ratio is computed by dividing the net sales, i.e., total sales less returns by net working
capital. The term net working capital means the excess of current assets over current liabilities.
The formula is:
Net sales or Cost Of Sales
Net Working Capital
Net working capital signifies the excess of current assets over current liabilities. Examples of
current assets are cash in hand, cash at work, bill receivable, sundry debtors, stock in trade,
short-term investments. Current liabilities include sundry creditors, bill payable, bank overdraft
etc.
OBJECTIVES:
The objectives of this ratio are:
 The efficiency of the use of working capital in the unit can be measured.
 For an expected increase in sales, the requirement of working capital can be calculated
by computing this ratio.
A high working capital turnover ratio (if it is expressed in %) indicates efficient use of working
capital and quick turnover of current assets like stock and debtors. A low ratio indicates low
turnover of these assets.
(d) STOCK TURNOVER RATIO
How many times stock is purchased during the year is an important calculation because this
depends on the company’s purchase policy. Buying in small lots results in repeated buying and
buying in bulk results in infrequent buying. Bulk buying though gives various advantages of
external and internal economies, yet results in heavy carrying costs and blocking of funds and
thus limiting liquidity of the concern. Buying in small lots keep funds quite free but gives the
danger of going out of stock at any time and reduces the bargaining power of the company. But
high turnover of stock does not necessarily mean that the company buys in small lots. It may be
that the company is efficient and sells it always quickly. It is calculated as under:
Cost of Goods Sold
Average Stock
This ratio is best calculated by dividing annual turnover by the average of the stock figures at the
end month, as ratios based upon opening or closing stock for the year, or the average of these,
may be misleading, unless stocks are constant throughout the year.
The ratio signifies the number of times, on an average, the inventory or stock turned over or sold
during the period. A higher stock turnover ratio is desirable because it leads to higher liquidity. It
indicates efficient sales performance. Care should be taken to ensure that turnover of stock does
not rise too much signified by a very low ratio, otherwise it may become difficult to fulfill
customer’s order promptly. A low stock turnover indicates that stock does not sell quickly and
remains in the godown for a long time. This will lead to excessive blocking up of working capital
in inventories. Moreover, slower stock turnover will reduce liquidity.
(e) DEBTORS’S TURNOVER RATIO:
Debtor’s turnover ratio establishes the relationship of receivables to net credit sales. Debtors, as
used in this context, include bills receivable bur exclude debtors which are not on account of
goods, e.g., debtors arising out of sale of furniture will not be included in this list of debtors for
this purpose.
This is calculated as follows:
Net Credit Sales
Average Debtors
OBJECTIVES:
The collection period so calculated is compared with the credit period allowed and then
conclusions are drawn. This shows, the rate at which customer are paying for credit sales. This
ratio should approximate to the credit terms allowed by the business and is, therefore, a comment
on the efficiency of credit control. If 90 day’s credit is extended to customers, then the normal
ratio should be 4:1. the higher the ratio, the more favorable the effect upon working capital,
because outsiders are being financed to a lesser extent while liquid resources will, other things
being equal, increase.
PROFITABILITY RATIOS
The main object of every business concern is to earn profits. A business must be able to earn
adequate profits in relation to the risk and capital invested in it. The efficiency and the success
of a business can be measured with the help of profitability ratios.
Profitability Ratios are calculated to provide answers to the following questions:
1. Is the firm earning adequate profits?
2. What is the rate of gross profit and net profit on sales?
3. What is the rate of return on capital employed in the firm?
4. What is the rate of return on proprietor’s funds?
5. What are the earnings per share?
(a)GROSS PROFIT RATIO:
This ratio shows the relationship between gross profit and sales. The formula for computing this
ratio is:
Gross Profit x 100
Net Sales
Net Sales = Sales –Sales Return

Significance:
This ratio measures the margin of profit available on sales. The higher the gross profit ratio the
better it is. No ideal standard is fix for this ratio, but the gross profit ratio should be adequate
enough not only to cover the operating expenses but also to provide for depreciation, interest on
loans, dividends and creation of reserves.
(b) NET PROFIT RATIO:
This ratio shows the relationship between net profit and sales. The formula for computing this
ratio is:
Net Profit x 100
Net Sales
Significance:
This ratio measures the rate of net profit earned on sales. It helps in determining the overall
efficiency of the business operations. An increase in the ratio over the previous year shows
improvement in the overall efficiency and the profitability of the business.
(c) RETURN ON CAPITAL EMPLOYED:
This ratio reflects the overall profitability of the business. It is calculated by comparing the
profit earned and the capital employed to earn it. This ratio is usually in percentage and is also
known as ‘Rate of Return’ or ‘Yield on Capital’.
The formula for computing this ratio is:
Profit before Interest, Tax and Dividend x 100
Capital Employed
Capital employed can be computed by any of the following two methods:
1. Capital Employed = Equity share capital + Preference share capital + All
reserves + P&L Balance+ Long term loans - Fictitious Assets - Non Operating Assets
2. Capital Employed = Fixed Assets + Current Assets - Current Liabilities
(d)RETURN ON TOTAL SHAREHOLDER’S FUNDS:
For calculating this ratio ‘Net Profit after interest and tax’ (but before preference dividend) is
divided by total shareholder’s funds. The formula for computing this ratio is:
Net Profit After Interest And
Tax
Total Shareholder's Fund
Here, Total Shareholder’s Funds= Equity Share capital + Preference share capital + All reserves
+ P&L a/c Balance - Fictitious Assets
FINDINGS AND ANALYSIS
4.1ANALYSIS OF DATA
RATIO ANALYSIS OF NTPC
financial statements. A ratio is a statistical yardstick that provides a measure of the relationship
between two variables or figures. This relationship can be expressed as a percent or as a quotient.
Liquidity Ratio
Current Ratio
3 2.81
2.5
2.13
1.97
2 1.83
1.69
NTPC
1.5
0.5
0
Mar'16 Mar'15 Mar'14 Mar'13 Mar'12
The above graph shows that March 2016 was having 1.69 current ratio and then it started
increasing to 1.83 and then 1.97.
Quick Ratio
Quick Ratio
20 18.34 17.72
18
15.85
16 14.69 14.22
14
12 NTPC
10
8
6
4
2
0
The graph shows that in march 2016 there was 14.69 increase and then it went to 18.34
which shows that there is sometimes increase and sometimes decrease.
Debt Equity Ratio

Debt Equity Ratio
20
18.34
17.72
18
15.85
16 14.69 14.22
14
12
NTPC
10
8
6
4
2
0
The graph shows that in march 2016 there was 14.69 increase and then it went to 18.34
which shows that there is sometimes increase and sometimes decrease.
Investment Turnover Ratio

Investment Turnover Ratio
20 18.34 17.72
18
15.85
16 14.69 14.22
14
12 NTPC
10
8
6
4
2
0
The graph shows that there is an increase in march 2016 of 14.69 and then it increased to 18.34
and then it gradually came down to 14.22
Fixed Assets Turnover Ratio

Fixed Assets Turnover Ratio
20
18.34
17.72
18
15.85
16 14.69 14.22
14
12
NTPC
10
8
6
4
2
0
Debtors Turnover Ratio
Debtors Turnover Ratio

20
18.34
17.72
18
15.85
16 14.69 14.22
14
12
NTPC
10
8
6
4
2
0
Interest Cover Ratio

INTEREST COVER RATIO
20
18.34
17.72
18
15.85
16 14.69 14.22
14
12
NTPC
10
8
6
4
2
0
Gross Profit Margin(%)

GROSS PROFIT MARGIN(%)
20
18.34
17.72
18
15.85
16 14.69 14.22
14
12
NTPC
10
8
6
4
2
0
Net Profit Margin

NET PROFIT MARGIN(%)
20
18.34
17.72
18
15.85
16 14.69 14.22
14
12
NTPC
10
8
6
4
2
0
and then it gradually came down to 14.22 which is the net profit margin.
Return on Assets
RETURN ON ASSETS
18
16 15.3
14 13.31
12 11.19 11.04 10.59

10 NTPC
0
The graph shows that there is no stability in return on assets. It was first 10.59 and then it
gradually started increasing to 11.04 and then it decreased.
Dividend Payout Ratio

Dividend Payout Ratio
18
16 15.3
14 13.31
12 11.19 11.04 10.59

10 NTPC
0
gradually started increasing to 11.04 and then it decrease
Earnings Per Share

EARNINGS PER SHARE
18
16 15.3
14 13.31
12 11.19 11.04 10.59

10 NTPC
0
gradually started increasing to 11.04 and then it decreased.
CHAPTER 5
SUMMARY AND CONCLUSION

5.1 SUMMARY OF LEARNING EXPERIENCE
(1) Very large amount invested in company. It means the profit is inversely proportional to
working capital.
(2) Operating cycle of working capital is very long.
(3) The new policy regarding the settlements of receivables is very good but precaution is
needed.
(4) The liquidity position of the company is very good.
(5) The relation of sales with his components is very good.
(6) There are some problem in managing cash, company does not manage cash effectively so that
holding period of cash is very high.
CONCLUSIONS AND RECOMMENDATIONS
After the study of the different chapter our conclusion is that NTPC power plant regulations has
a very systematic working capital as well as structured working capital has been involved. The
working capital has been maintained through the integration of different section like book
selection etc.
In every section there is a sequence and definite process of giving and seekingorders and
regulations. Every section has to be very much careful about their work.
Every section has to pass a definite rule and regulation which cannot be done by way of pass. On
the basis of these criteria, every section has to do work as that organization could not run without
working capital without any disturbance that’s why electricity capacity increase per year, there
trends are increasing. This organization has good proof of working capital management where
the sale has best done only on credit basis and cash management work smoothly. We have
studied all the subjects of working capital like inventory management in NTPC what are
different types of inventory material like coal, fuel, steel, cement which daily uses in the power
plant for the generation of electricity that we have studied there as natural as well as there
seemed different years through tabulation graph. We have studied about debtors, how debits are
made on the basis of credit sales. We have studied trend of debtors increasing or decreasing with
the past five years data and we have also showed advances which shows how loans has been
made, the payment of loans and advances be done? In the context of current liability we have
studied about overall current liability increase or decrease and as well as trend of different item
of current liability like creditors and provisions. We have studied how the creditors have to be
paid? How much creditors have been increased or decreased what is the rate of increasing or
decreasing, what is the proportion for increasing or decreasing? What are the different provisions
made, is the provisions increasing or decreasing, and then how much provisions are made to each
items
ANNEXURE
NTPC Previous Years »

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share Capital 8,245.46 8,245.46 8,245.46 8,245.46 8,245.50
Equity Share Capital 8,245.46 8,245.46 8,245.46 8,245.46 8,245.50
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 77,569.86 72,142.05 65,045.71 60,138.66 55,478.60
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 85,815.32 80,387.51 73,291.17 68,384.12 63,724.10
Secured Loans 12,311.00 9,404.05 9,156.30 9,910.68 9,079.90
Unsecured Loans 50,094.75 43,849.61 38,182.03 33,277.56 28,717.10
Total Debt 62,405.75 53,253.66 47,338.33 43,188.24 37,797.00
Total Liabilities 148,221.07 133,641.17 120,629.50 111,572.36 101,521.10
Application Of Funds
Gross Block 116,855.56 103,245.70 81,723.52 72,583.94 66,663.80
Less: Accum. Depreciation 44,744.73 40,309.60 36,465.12 33,519.19 32,088.80
Net Block 72,110.83 62,936.10 45,258.40 39,064.75 34,575.00
Capital Work in Progress 44,888.67 37,109.42 41,827.82 38,441.84 32,290.60
Investments 9,757.86 10,760.10 11,206.38 12,344.84 14,807.10
Inventories 5,373.35 4,057.19 3,702.85 3,639.12 3,347.70
Sundry Debtors 5,220.08 5,365.49 5,832.51 7,924.31 6,651.40
Cash and Bank Balance 15,311.37 16,867.70 16,146.11 326.34 634.00
Total Current Assets 25,904.80 26,290.38 25,681.47 11,889.77 10,633.10
Loans and Advances 26,892.02 24,020.46 16,863.73 7,648.10 6,357.10
Fixed Deposits 0.00 0.00 0.00 15,858.92 13,825.50
Total CA, Loans & Advances 52,796.82 50,310.84 42,545.20 35,396.79 30,815.70
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 23,151.15 19,730.83 16,388.98 10,945.55 7,896.80
Provisions 8,181.96 7,744.46 3,819.32 2,730.31 3,070.50
Total CL & Provisions 31,333.11 27,475.29 20,208.30 13,675.86 10,967.30
Net Current Assets 21,463.71 22,835.55 22,336.90 21,720.93 19,848.40
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 148,221.07 133,641.17 120,629.50 111,572.36 101,521.10
Contingent Liabilities 81,582.53 63,299.15 42,308.16 33,227.29 40,044.00

Book Value (Rs) 104.08 97.49 88.89 82.94 77.28
Source : Dion Global Solutions Limited
NTPC Previous Years »

Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
Income
Sales Turnover 72,018.93 66,200.24 62,480.88 55,216.69 46,623.60
Excise Duty 0.00 526.31 428.65 278.01 245.90
Net Sales 72,018.93 65,673.93 62,052.23 54,938.68 46,377.70
Other Income 2,688.89 4,785.69 3,103.42 2,525.48 2,872.80
Stock Adjustments 0.00 0.00 0.00 0.00 0.00
Total Income 74,707.82 70,459.62 65,155.65 57,464.16 49,250.50
Expenditure
Raw Materials 47.60 46.35 45.24 31.33 31.10
Power & Fuel Cost 46,510.29 41,661.34 42,171.65 35,796.37 29,689.10
Employee Cost 3,867.99 3,360.12 3,090.48 3,395.27 2,946.80
Other Manufacturing Expenses 0.00 1,782.45 1,529.24 1,273.14 1,096.60
Selling and Admin Expenses 0.00 0.00 0.00 2,264.01 578.50
Miscellaneous Expenses 3,815.67 1,739.33 1,478.12 525.63 436.40
Preoperative ExpCapitalised 0.00 0.00 0.00 -1,052.98 -866.90
Total Expenses 54,241.55 48,589.59 48,314.73 42,232.77 33,911.60
Operating Profit 17,777.38 17,084.34 13,737.50 12,705.91 12,466.10

PBDIT 20,466.27 21,870.03 16,840.92 15,231.39 15,338.90
Interest 2,406.59 1,924.36 1,711.64 2,027.21 1,861.90
PBDT 18,059.68 19,945.67 15,129.28 13,204.18 13,477.00
Depreciation 4,142.19 3,396.76 2,791.70 2,485.69 2,650.10
Other Written Off 0.00 0.00 0.00 4.50 4.30
Profit Before Tax 13,917.49 16,548.91 12,337.58 10,713.99 10,822.60
Extra-ordinary items -12.84 188.57 452.64 1,330.06 616.10
PBT (Post Extra-ord Items) 13,904.65 16,737.48 12,790.22 12,044.05 11,438.70
Tax 2,929.91 4,118.09 3,241.49 2,630.54 2,682.70
Reported Net Profit 10,974.74 12,619.39 9,223.73 9,102.59 8,728.20
Total Value Addition 54,193.95 48,543.24 48,269.49 42,201.44 33,880.50
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 4,741.15 4,741.16 3,298.19 3,133.26 3,133.20
Corporate Dividend Tax 804.74 781.87 527.92 514.77 527.60
Per share data (annualised)
Shares in issue (lakhs) 82,454.64 82,454.64 82,454.64 82,454.64 82,454.64
Earning Per Share (Rs) 13.31 15.30 11.19 11.04 10.59
Equity Dividend (%) 57.50 57.50 40.00 38.00 38.00
Book Value (Rs) 104.08 97.49 88.89 82.94 77.28
Source : Dion Global Solutions Limited

BIBLIOGRAPHY
Financial management I.M. Pandey
Financial management KHAN AND JAIN
Financial management SC KUCCHAL
Annual Reports of NTPC
General Articles of NTPC
Website:
www.google.com
www.singrauli.ntpc.co.in

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MAJORPROJECT

“A Study on Financial Analysis ratio of NTPC

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

NEW DELHI INSTITUTE OF MANAGEMENT

Place: New Delhi Faculty Guide:-MRS. DEEPTI GAUR

2.2 Growth and development

2.4 Functional departments of organization

Organizational structure and organizational

2.6 Product and service profile

Market profile of organisation

Chapter-3 3.1 Statement of Research Problem

3.2 Statement of Research Objectives

The main objectives of this study aimed are:

1.2 INDUSTRY PROFILE

a. Origin and development of the industry

The existing law is conserved or saved from such a repeal or

 Equipment manufacturing: Enormous growth in power sector necessitates augmentation

NTPC ELECTRIC SUPPLY COMPANY LTD. (NESCL)

NTPC VIDYUT VYAPAR NIGAM LTD.

PROFILE OF THE ORGANISATION

Business portfolio growth

• To develop a portfolio of generation assets in international markets.

• To establish a strong services branding in the domestic and international markets

2.2 GROWTH AND DEVELOPMENT OF THE ORGANISATION

To further consolidate NTPC’s position as the leading thermal power generation

To develop a portfolio of generation assets in international markets.

To establish a strong service branding in the domestic and international markets

To ensure effectiveness in business decisions and responsiveness to change in

- Adopting a portfolio approach to new business development.

-Continuous and co-ordinate assessment of the business environment to identify and

To develop a learning organization having knowledge based competitive edge

To effectively leverage information strategy to ensure speedy decision- making

To continuously improve on project execution time and use in order to

To aim for performance excellence in the diversification of business.

To embed quality in all systems and process.

HUMAN RESOURCE DEVELOPMENT

To enhance organizational performance by institutionalizing an objective and open

To enhance commitment of employees by recognizing and rewarding high-performance.

To build and sustain learning organization of competent world class professionals.

To align individual and organizational and develop business leaders by implementing a

To enhance commitment of employees by recognizing and rewarding high performance.

To build and sustain learning organization of competent world class professionals.

To maintain and improved financial soundness of NTPC by prudent management of

SUSTAINABLE POWER DEVELOPMENT

To contribute to sustainable power development by discharging corporate social

SUCCESS IN OPERATION AND MAINTENANCE

2.3 PRESENT STATUS OF THE ORGANIZATION

In accordance with the approval given by Cabinet Committee on Economic Affairs on

2.4 FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION

1.FINANCE AND 2. HUMAN RESOURCE 3. OPERATION

FINANCE AND ADMISNISRATION

Every businessman’s intention is to make profit, so business transaction needs to be recorded in a

OBJECTIVES OF THE DEPARTMENT

a. Ensure regular and sufficient supply of capital in the business.

In NTPC, finance and accounts department is divided into 8 sub departments:-

Books and budget

HUMAN RESOURCE MANAGEMENT

OPERATION AND MAINTENANCE DEPARTMENT

Laboratory tests and field tests

Supervision of equipment repairs and unit overall

Performance analysis and optimization

2.5 ORGANIZATION STRUCTURE AND ORANIZATION CHART

 Shri S.B. Ghosh Dastidar