Scribd Logo
Upload

Welcome to Scribd!

  • 2K views

    NTPC Financial Statement Analysis

    Uploaded by

    prahladagarwal
    This document provides an outline for an accounting project on NTPC (National Thermal Power Corporation), a large Indian power company. It includes an overview of NTPC, its shareholding pattern, components of its annual report, accounting policies, and analysis of its current assets, cash flow statement, and key ratios from 2006-2009. The analysis finds increases in inventories, debtors, and loans/advances, as well as declines in operating and financing cash flows that were offset by strategic investing activities. Liquidity and profitability ratios remained strong compared to other power companies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    NTPC Financial Statement Analysis

    Uploaded by

    prahladagarwal
    2K views19 pages
    This document provides an outline for an accounting project on NTPC (National Thermal Power Corporation), a large Indian power company. It includes an overview of NTPC, its shareholding pattern, components of its annual report, accounting policies, and analysis of its current assets, cash flow statement, and key ratios from 2006-2009. The analysis finds increases in inventories, debtors, and loans/advances, as well as declines in operating and financing cash flows that were offset by strategic investing activities. Liquidity and profitability ratios remained strong compared to other power companies.

    Original Description:

    Prepared as a part of Financial Accounting project

    Original Title

    NTPC financial statement analysis

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document provides an outline for an accounting project on NTPC (National Thermal Power Corporation), a large Indian power company. It includes an overview of NTPC, its shareholding pattern, components of its annual report, accounting policies, and analysis of its current assets, cash flow statement, and key ratios from 2006-2009. The analysis finds increases in inventories, debtors, and loans/advances, as well as declines in operating and financing cash flows that were offset by strategic investing activities. Liquidity and profitability ratios remained strong compared to other power companies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    2K views19 pages

    NTPC Financial Statement Analysis

    Uploaded by

    prahladagarwal
    This document provides an outline for an accounting project on NTPC (National Thermal Power Corporation), a large Indian power company. It includes an overview of NTPC, its shareholding pattern, components of its annual report, accounting policies, and analysis of its current assets, cash flow statement, and key ratios from 2006-2009. The analysis finds increases in inventories, debtors, and loans/advances, as well as declines in operating and financing cash flows that were offset by strategic investing activities. Liquidity and profitability ratios remained strong compared to other power companies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 19

    Accounting Project on NTPC

    By:-
    Pijush Kanti Ghata
    Prahlad Agarwal
    Pranav Mishra
    Rinki Kumari
    Outline
     Company in brief

     Shareholding Pattern

     Major Components of Annual Report

     Disclosures

     Few Accounting Policies

     Analysis of Current Assets (2006-09)


     Net Take Away

     Analysis of the Cash Flow Statement (2006-09)


     Net Take Away

     Ratio analysis (Time series and Cross sectional)


     Liquidity Ratio
     Profitability Ratio

    National Thermal Power Corporation 2


    Company in brief
    Type: Public

    Founded: 1975

    Headquarters: Delhi, India

    CMD: R S Sharma

    Industry: Electricity Generation

    Employees: 23867 (2006)

    National Thermal Power Corporation 3


    Shareholding Pattern

    National Thermal Power Corporation 4


    Major Components of Annual Report

     Corporate mission & objectives

     Letter to the Shareholders

     Graphs & State-wise generation

     Financial Statements & Performance

     Director’s Profile

     Management Discussion & Analysis

    National Thermal Power Corporation 5


    Contd…

     Report on Corporate Governance

     Accounting Policies

     Auditor’s Report

     Awards & Accolades

     Subsidiary Companies

     Consolidated Financial Statements

    National Thermal Power Corporation 6


    Disclosures
     Related Parties
     Joint Ventures
     Subsidiaries
    NTPC Electric Supply Company Ltd

    NTPC Vidyut Vyapar Nigam Ltd

    NTPC Hydro Ltd

    Pipavav Power Development Co Ltd

    Kanti Bijlee Utpadan Nigam Ltd

    Bharatiya Rail Bijlee Co Ltd

    National Thermal Power Corporation 7


    Joint Ventures
    (Criteria: NTPC’s stake >=50%)

    Name of the company Promoter’s Equity Holdings


    Nabinagar Power Generating NTPC 50%
    Company Pvt Ltd.  
    NTPC Bihar
    State 50%
    Electricity Board
    Utility Powertech Ltd. NTPC 50%
     
    Reliance
    Infrastructure Ltd. 50%
    NTPC-SAIL Power Company Pvt Ltd. NTPC 50%
     
    SAIL 50%

    National Thermal Power Corporation 8


    Contd…
    NTPC-Alstom Power Services NTPC 50%
    Private Ltd.  
    Alstom
    Power Generation 50%
    AG
    NTPC Tamil Nadu Energy NTPC 50%
    Company Ltd.  
    Tamil Nadu
    Electricity 50%
    Board
    Aravali Power Company Pvt Ltd. NTPC 50%
     
    Indraprastha
    Power 25%

    Haryana
    Power Corporation 25%

    National Thermal Power Corporation 9


    Contd…
    NTPC-SCCL Global Venture Pvt NTPC 50%
    Ltd.  
    Singareni
    Collieries 50%
    Ltd.
    NTPC BHEL Power Projects Pvt NTPC 50%
    Ltd.  
    BHEL 50%

    Meja Urja Nigam Pvt Ltd. NTPC 50%


     
    Uttar Pradesh
    Rajya Vidyut 50%
    Utpadan Nigam
    Ltd.

    National Thermal Power Corporation 10


    Few Accounting policies
     Basis of preparation
     Grants-in-aid
     Fixed assets
     Capital work-in-progress
     Foreign currency transactions
     Borrowing cost
     Investments
     Inventories
     Depreciation
     Provision and contingent liabilities

    National Thermal Power Corporation 11


    Analysis of current
    assets (2006-09)
    Current
    2006-07 2007-08 Change 2007-08 2008-09 Change
    Assets

    Inventories 25,102 26,757 6.59% 26,757 32,434 21.22%


    Sundry
    12,523 29,827 138.18% 29,827 35,842 20.17%
    debtors
    Cash &
    bank 133,146 149,332 12.16% 149,332 162,716 8.96%
    balance
    Other
    current 10,580 9,218 -12.87% 9,218 9,792 6.23%
    assets
    Loans &
    40,476 40354 -0.30% 40354 68,469 69.67%
    advances
    TOTAL 221,827 255,488 15.17% 255,488 309,253 21.04%

    Income Statement of NTPC.xls


    National Thermal Power Corporation 12
    net take away
    Inventories Net increase of (21.22% - 6.59%)
    14.63%.Imported coal (2.74m
    tonnes) to overcome temporary
    shortages
    Sundry Debtors Excessive increase in the debtors
    i.e. 138.18% because of two
    reasons:-
    • Lower rate of collection from the
    debtors in comparison to the
    frequency of credit sales

    • Irregularity in the payment from


    debtors

    Cash & Bank Balance Strategic diversification - foray into


    manufacturing

    National Thermal Power Corporation 13


    Contd…

    Other Current Assets NTPC is putting more money in


    its core current assets

    Loans & Advances • Decreased by 0.30% in 2007-08


    Reveals that a certain part of the
    loan has been paid back by the
    borrower

    • Increased by 69.67% in 2008-09


    Financing of new projects

    National Thermal Power Corporation 14


    Analysis of cash flow statement

    Particulars 2006-07 2007-08 change 2007-08 2008-09 change

    Operating
    7929.50 9520.60 20% 9520.60 9730 2%
    Activities

    Investing
    (3412.10) (6642.40) -94% (6642.40) (8383.10) -26%
    Activities

    Financing
    573.2 (1215.80) -312% (1215.80) 543.10 144%
    Activities
    Net Cash
    5090.60 1662.40 -67% 1662.40 1890 13%
    Flow

    Cash flow statement of NTPC.xls

    National Thermal Power Corporation 15


    Net take away
     Operating Activities
    Increased electricity production
    Expanded capacity utilization

     Investing Activities
    Scaled operations
    Acquired strategic assets

     Financing Activities
    Retired old debt and negotiated new debt
    Paid a higher dividend

    National Thermal Power Corporation 16


    Ratio analysis
    NTPC POWER GRID
    CORPORATION

    LIQUIDITY

    Financial Year 2006-07 2007-08 2006-07 2007-08

    Current Ratio: 3.15 3.22 0.49 0.68

    Quick Ratio: 2.64 3.23 0.51 0.71

    Net Current Assets: 1,51,564 1,76,189 -2,945.94 -1,839.05

    National Thermal Power Corporation 17


    Contd…
    NTPC Power Grid

    PROFITABILITY

    Net Profit Ratio: 0.27 0.28 0.31 0.29

    Return on 0.13 0.16 0.07 0.06


    Investment:

    Return on Equity: 0.14 0.14 0.11 0.11

    Return on Capital 0.15 0.15 0.08 0.10


    employed:

    National Thermal Power Corporation 18


    Thank You!

    References:
    www.ntpc.co.in
    CMIE database (Prowess)

    National Thermal Power Corporation 19

    You might also like