Scribd
Upload
736 views19 pages

Accounting Project On NTPC: By:-Pijush Kanti Ghata Prahlad Agarwal Pranav Mishra Rinki Kumari

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.

Uploaded by

Swatantra Barik
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
736 views19 pages

Accounting Project On NTPC: By:-Pijush Kanti Ghata Prahlad Agarwal Pranav Mishra Rinki Kumari

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.

Uploaded by

Swatantra Barik
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 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