PRESENTATION

ON
ANALYSIS OF FINANCIAL TRENDS
Of S.J.V.N.Ltd.(SHIMLA)

PRESENTED BY:
Pushp Raj
MBA 3rd Semester

Roll No. 95512266666

 Company Profile
 SJVNL Ltd is a Central Public Sector
Undertaking(CPSU) comes under the ministry
of power – SJVN (formerly Nathpa Jhakri
Power Corporation Limited - NJPC )
 Was incorporated or emerge on May 24, 1988
as a joint venture of the Government of India
( GOI ) and the Government of Himachal
Pradesh (GOHP)
 to plan, investigate, organize, execute, operate
and maintain Hydro-electric power projects.
Beneficiary States of Nathpa Jhakri
Hydro- Electric Project
Sr. No. State Allocation in MW % to the installed
capacity
1 Haryana 64 4.27
2 Himachal Pradesh 547 36.47
3 J&K 105 7.00
4 Punjab 114 7.60
5 Rajasthan 112 7.47
6 Utter Pradesh 221 14.73
7 Uttaranchal 38 2.53
8 Chandigarh 08 0.53
9 Delhi 142 9.47
10 Unallocated Area 149 9.93
Total 1500 MW 100
 Net Worth of SJVNL
The net worth of SJVN for the last four year:-

Year Net Worth (Rs in Crores)

2005-2006 4465.19

2006-2007 4925.29

2007-2008 5406.40

2008-2009 6047
 Objectives of the Project
 To determine the short term financial position
of the SJVN Ltd.
 To determine the long term financial position
of the organization.
 To determine the efficiency and earning
capacity of the organization.
 To determine the profitability and future
prospects of the organization.
 Research Methodology
For the project data has been collected from one source.
 Secondary Sources:-The secondary sources of data
refer to already publish data or data collected by other
agencies. It is second hand data. It is available in
published form. The secondary data used in this
project is obtained from the annual accounts of SJVNL.
For analysis of financial statements the following method
has been used:
 Ratio Analysis
 Comparative statements
 Study of Cash Flow Statement
 Current Ratio
Current Ratio = Current Assets
Current Liabilities
Particulars 31-03-2006 31-03-2007 31-03-2008 31-032009

Inventories 6,33,262 5,87,100 5,36,300 5,58,500

Sundry Debtors 62,00,699 14,08,200 11,60,900 36,31,800

Cash and Bank 13,33,403 62,10,400 69,36,000 1,27,14,400

Other Current Assets 41,714 2,35,300 3,28,600 8,25,700

Loans and Advances 18,24,411 32,63,300 66,62,600 46,24,600

Total Current Assets 1,00,33,489 1,17,04,300 1,56,24,400 2,23,55,000

Current Liabilities and 63,92,638 71,01,700 1,08,18,100 1,24,16,500

Provisions.
 Quick Ratio Table
Quick Ratio = Quick Assets
Current Liabilities

Particulars 31-3-2006 31-3-2007 31-3-2008 31-03-2009

Sundry 62,00,699 14,08,200 11,60,900 36,31,800
Debtors
Cash and Bank 13,33,403 62,10,400 69,36,000 1,27,14,400
Other Current 41,714 2,35,300 3,28,600 8,25,700
Assets
Loans and 18,24,411 32,63,300 66,62,600 46,24,600
Advances
Total 94,00,227 1,11,17,200 1,50,88,100 2,17,96,500
Current 63,92,638 71,01,700 1,08,18,100 1,24,16,500
Liabilities
 Debt-Equity Ratio
Debt-equity ratio is also known as external interval equity
ratio.
Particulars 31-03-2006 31-03-2007 31-03-2008 31-03-2009
Secured Loans 2,68,28,425 2,18,68,300 1,71,09,300 1,30,75,100
Unsecured 39,98,921 33,73,700 30,91,500 83,49,300
Loans
Current 63,92,638 71,01,700 1,08,18,100 1,24,16,500
Liabilities
Total 3,72,19,984 3,23,43,700 3,10,18,900 3,38,40,900
Share Capital 4,10,88,140 4,10,88,140 4,10,88,140 4,10,88,140
Reserve and 35,87,876 81,85,400 1,29,75,900 1,93,85,300
Surplus
Miscellaneous 24,106 20,600 ------ -------
expenditure
Total 4,47,00,122 4,92,94,140 5,40,64,040 6,04,34,40
 Debt- Equity Ratio = Total Debt
Net Worth

2006 = 37219984 = 0.833

44700122
2007 = 32343700 = 0.656
49294140
2008 = 31018900 = 0.573
54064040

2009 = 33840900 = 0.56

60430178

A higher ratio indicates a risky financial position

while a lower ratio indicates safer financial
position.
 Working Capital Turnover Ratio
The working capital turnover ratio for the year 2005 is
3.581, for the year 2006 it is 3.766. The working capital
Ratio has slightly improved in 2006 which is 3.766 and
almost constant in 2007 and 2008.
 Ratio Chart of SJVNL
In the year 2006, 2007 and 2008 net profit ratio has also
been increased (i.e. 36.33%, 45.27% and 50.82%
respectively). In 2009 it has shot and growth up to 80.3%
This shows that the profitability of the concern has been
increased continuously.

100.00%
90.00%
80.00%
70.00%
60.00% Gross profit ratio
50.00%
40.00% Administration & office
ratio
30.00%
Net profit ratio
20.00%
10.00%
0.00%
2006 2007 2008 2009
 Conclusion
 The short-term financial position of the company is
satisfactory as it is seen from current ratio and quick ratio.
 It also shows that company has enough cash and bank
balances to meet out any contingency that may arise in
future.
 The profitability position of the company is very good.
The profit earned in the reserve and surplus so that in the
future more and more investment can be done in other
projects.
 Long-term financial position of the company is going to
be better day by day as it is seen from the debt equity
ratio which shows that outsider loans are continuously
decreasing as compare to insider’s fund
 Suggestions
 SJVNL should have make efforts to control the generation,
administration and others expenses so that it will not increase in
future.
 SJVNL should restructure their loan plan. so that the advantage
of fluctuating interest rate should have been taken from the
present competitive financing market.
 SJVNL should take care of not to increase the amount of current
liabilities in future. Long-term financial position of the SJVNL is
satisfactory
 To make it better it is suggested that loans should be paid within
next five to ten years.
 Long-term financial position of the SJVNL is satisfactory. To
make it better it is suggested that loans should be paid within
next five to ten years
THANK YOU