A Case Study on

RATIO ANALYSIS IN NTPC Ltd. - RAMAGUNDAM

SUMMER INTERNSHIP PROJECT Submitted in partial fulfillment of the requirements of MASTER OF BUSINESS ADMINISTRATION BY D. CHARAN KUMAR (Roll No.2225110106)

GITAM UNIVERSITY HYDERABAD

DECLARATION

The Project Report presented with the title RATIO ANALYSIS IN NTPC LTD. RAMAGUNDAM A Case study" is an original work done by me and submitted in partial fulfillment of the requirements of the MBA Summer Internship Project.

D. CHARAN KUMAR Roll No.2225110106

CERTIFICATE
This is to certify that the student D. CHARAN KUMAR Of GITAM University, Hyderabad has performed the Summer Training under my guidance from 02-052011 to 31-05-2011 at NTPC Ltd, Ramagundam Super Thermal Power Station, Jyothinagar, Dist-Karimnagar(A.P) on the project titled

"Ratio Analysis in

NTPC Ltd. Ramagundam".

M. SUDHIR RANJAN Manager (Finance)

ACKNOWLEDGEMENT

It is a great privilege for me to submit my deep sense of gratitude and indebtedness to this Ramagundam Super Thermal Power Station a flagship Unit of the Esteemed Organization of NTPC Ltd. for giving me this opportunity to carry out my project work on "Ratio Analysis ". I would also like to express my sincere thanks and gratitude to Shri K. Narayanan, DGM (F&A), Mr.E.Nandakishore DGM (HR-EDC), Mr. P.M.G.V.Srinivas, Sr.Mgr (HR-EDC) for providing the required facilities to complete the project work in time. I am very much grateful to my Project Guide Shri M. Sudhir Ranjan, Manager (F&A), for his overall guidance and motivation. I also take this opportunity to convey my gratitude to the entire staff of F&a Department, NTPC Ltd. Ramagundam for extending their co-operation and guidance throughout my Project Work. I am grateful to my principal Mr.SS Prasad and Mrs. Radhika (HOD of Finance) for having extended the cooperation in my project.

CONTENTS

CHAPTER 1 INTRODUCTION CHAPTER 2 ORGANIZATION PROFILE CHAPTER 3 THEORIOTICAL FRAME WORK OF RATIO ANALYSIS CHAPTER 4 ANALYSIS AND INTERPRETATION CHAPTER 5 CONCLUSIONS AND SUGGESTIONS CHAPTER 6 BIBILOGRAPHY

PAGES 01 04

05 16

17 31

32 47

48 50

51

ABSTRACT

The study was mainly to evaluate the financial position of NTPC LTD and to take look at the whole process of Financial Management. This study was undertaken for a period of 4 weeks in NTPC LTD. on Ratio Analysis. Based on the analysis and interpretations, the findings have been given.

In past five years the company equity capital is 82455 million it is not changed.

In past five years current ratio has decreased. During 2005-06 it has 2.56, but in 2007-08 it has increased to 3.22, during 2009-10 it has decreased to 2.86.

It is observed that the total assets are almost increased from year to year. Over all the company current position is good. In past year 2009-10 the return on capital employed is 13.97, but in past four years it has increased twice.