Optcl Project

F.M.
AUTO CLG OPTCL
FOR THE PARTIAL FULFILMENT OF MASTER DEGREE OF

COMMERCE
Under the Guidance
Corporate Guide Faculty Guide

Sri Satyabrata Samal Abhijit Das
Manage of Finance Dept.of commerce,F.M
(auto) clg
OPTCL
Bhubaneswar
Submitted By
Monalisha Behera
Roll no.41113C032
Clg roll no :PC-13 -56
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F.M. AUTO CLG OPTCL
CERTIFICATE FROM THE CORPORATE GUIDE
This is to certify that the project work entitled financial statement analysis
is an authentic record of the project work done by MONALISHA
BEHERA of F.M(AUTO)CLG during the period of 2013-2015 in this
organization under my guidance and supervision for the partial fulfillment
of the Master degree of P.G IN COMMERCE
To the best of my knowledge and belief the thesis:

a) Embodies the work of the candidate himself.
b) Has duly been completed.
c) Fulfills the requirement of this rule and regulations relating to the
summer internship of the institute.
d) Is up-to the standard both in respect to contents and language being
referred by the examiner.
DATE Signature of the corporate guide
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F.M. AUTO CLG OPTCL
CERTIFICATE BY THE FACULTY GUIDE
This is to certify that the project work entitled FINANCIAL

STATEMENT ANALYSIS at OPTCL, JANPATH ROAD,
BHUBANESWAR has been carried out under my guidance by
MONALISHA BEHERA for partial fulfillment of his P.G IN
COMMERCE during the academic year 2013-2015.
To the best of my belief and knowledge this is an original piece of

work based on his own research and methodology.
DATE Signature of the internal guide
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F.M. AUTO CLG OPTCL
Student Declaration
I do here by declare that the project study entitled “FINANCIAL

STATEMENT ANALYSIS OF OPTCL” is submitted for award of P.G IN
COMMERCE is Based on the study under taken by me , information presented
in this report is correct to the best of my knowledge and belief .This report has
not been published anywhere else.This report is a part of my course curriculum.
Through a detail study of its financial statement from 2010-11 to 2012-13.The
information and date used in the report is collected from published Annual
report, financial statement and various articles of the OPTCL. This report shall
be used for academic purpose only.
NAME: MONALISHA BEHERA
ROLL NO:41114C032
REGD NO:01745/13
CLASS ROLL NO: PC13056
4th SEM,2nd YEAR
MASTER OF COMMERCE (2013-2015)
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F.M. AUTO CLG OPTCL
ACKNOWLEDGEMENT
I am thankful to the management and staff of OPTCL for the co-operation

and interest .They has extended for doing this project report for success. I also
owe my heartfelt thanks to Sri Satyabrata Samal Manager (fin.)Funds ,who
nicely helped me .I take the opportunity for exposing my gratitude and
admiration for the teaching member of SSMC , BBSR for having helpful me to
learn the basics of the subject and making me conceptually clear these by
enabling me to be competent now to shoulder higher managerial responsibilities
in this line.
NAME: MONALISHA BEHERA
ROLL NO:41114C032
REGD NO:01745/13
CLASS ROLL NO: PC13056
4th SEM,2nd YEAR
MASTER OF COMMERCE (2013-2015)
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F.M. AUTO CLG OPTCL
SL .No. Contents
1. INTRODUCTION
2. 0bjective of the study
3. Research Methodology
Research framework
Type of data
How data was collected
4. Limitation of the Study
5. Introduction And Review Literature
About the Topic
Studies on Financial statement
analysis
6. Company Profile
Mission & Vision
Objective of OPTCL
Function of OPTCL
Organization History
7. Analysis and Result
8. Interpretation
9. Suggestion
10. Conclusion
11. Bibliography
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F.M. AUTO CLG OPTCL
EXECUTIVE SUMMARY
Project Title: Financial Statement Analysis
Company Name: ORISSA POWER TRANSMISSION CORPORATION

LIMITED (OPTCL)
The training at OPTCL involved the day to day working at corporate

accounts departments with the senior & junior managers and research
department in the company. This project helped me to get the deeper
understanding of the process of Financial Statement Analysis and how decisions
are taken to strengthen the financial position.
For this study three years ‘comparative Income Statement & Balance
Sheet have been taken for calculating ratio analysis. Main objective in
undertaking this project is to supplement academic knowledge with absolute
practical exposure to day to day functions of the sector.
Financial analysis which is the topic of this project refers to an

assessment of the viability, stability and profitability of a business. This
important analysis is performed usually by finance professionals in order to
prepare financial or annual reports. These financial reports are made with using
the information taken from financial statements of the company and it is based
on the significant tool of Ratio Analysis. These reports are usually presented to
top management as one of their basis in making crucial business decisions.
During the summer training period at OPTCL, I had close connection

with preparation of financial statements and also their analysis which was made
by professionals in the accounting team of the company. This experience was an
emphasis on the importance of these Ratios which could be the roots of
decisions made by management that can make or break the company. So, I was
influenced to allocate the aim of this project to study the details about these
ratios and their possible effects on the decisions made by not only people inside
the company but also the outsiders such as investors.
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F.M. AUTO CLG OPTCL
OBJECTIVE OF THE STUDY
There have been various objectives for this study, the first of which is a
detailed analysis of the financial statements that is the balance sheet and the
income statement of OPTCL.
The second objective, however the most important one or in other word
the principle aim of this project is the understanding and assessment of financial
ratios based on the statements of the company.
The next aim of the project is to recognize the position of the company
through those ratios and data available. This recognition is a leading factor in
changes of each and every company and the base and root of lots of
management decisions.
RESEARCH METHODOLOGY
Research famework: This study is based on the data about OPTCL for a
detailed study of its financial statements, documents and system ratios and
finally to recognize and determine the position of the company.
Types of data which helped to prepare this report:
1. The secondary data which was already prepared so these data was only
used to reach the aims and objectives of this project. These data has been
collected from the financial reports of the company.
How the data was collected: The secondary one was collected from the
financial statements already available to the employees of the company and
some of which was published.
In some cases, I had the chance to ask my questions personally from the Head
of Accounts department and Head of HR Department regarding the information
I needed.
Different questions and information I could collect during these two methods
are
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F.M. AUTO CLG OPTCL
1. The beginning and history of the OPTCL.
2. Numbers of staff working for different departments.
3. The mission & vision of the company.
4. Areas of operations
5. Other company related information.
C) Printed and Digital Sources:
The secondary data I collected was through the study of the financial
statements already existed in the company in form of printed files or digital files
reserved in the company for further references. I had chosen these files because
of the reliability and suitability of these information which I was also sure about
the accuracy of them.
These files consist of:
1. Annual report of the company
2. Financial balance sheets
3. Income statements
4. Financial reports
5. Different reports prepared by Finance Department
LIMITATION OF THE STUDY:-
1. Due to shortage of time I cannot prepare any other things.

2. Due to shortage of data.
3. Secondary source of data.
4. As the financial matters are confidential was not disclosure to us.
5. Due to busy schedule they are not provide the fully information.
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F.M. AUTO CLG OPTCL
INTRODUCTION AND REVIEW LITERATURE
About the Topic:-
FINANCIAL STATEMENT ANALYSIS
Financial statements are summaries of the operating, financing, and

investment activities of a business. Financial statements should provide
information useful to both investors and creditors in making credit, investment,
and other business decisions. And this usefulness means that investors and
creditors can use these statements to predict, compare, and evaluate the amount,
timing, and uncertainty of potential cash flows. In other words, financial
statements provide the information needed to assess a company‘s future
earnings and therefore the cash flows expected to result from those earnings. In
this chapter, we discuss the four basic financial statements: the balance sheet,
the income statement, the statement of cash flows, and the statement of
shareholders‘ equity. The analysis of financial statements is provided in Part Six
of this book.
ACCOUNTING PRINCIPLES AND ASSUMPTIONS
The accounting data in financial statements are prepared by the firm‘s

management according to a set of standards, referred to as generally accepted
accounting principles (GAAP). The financial statements of a company whose
stock is publicly traded must, by law, be audited at least annually by
independent public accountants (i.e., accountants who are not employees of the
firm). In such an audit, the accountants examine the financial statements and the
data from which these statements are prepared and attest—through the
published auditor‘s opinion—that these statements have been prepared
according to GAAP. The auditor‘s opinion focuses on whether the statements
conform to GAAP and that there is adequate disclosure of any material change
in accounting principles.
The financial statements are created using several assumptions that affect how
we use and interpret the financial data:
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Transactions are recorded at historical cost. Therefore, the values shown in

the statements are not market or replacement values, but rather reflect the
original cost (adjusted for depreciation, in the case of depreciable assets).
The appropriate unit of measurement is the dollar. While this seems logical,
the effects of inflation, combined with the practice of recording values at
historical cost, may cause problems in using and interpreting these values.
The statements are recorded for predefined periods of time. Generally,

statements are produced to cover a chosen fiscal year or quarter, with the
income statement and the statement of cash flows spanning a period‘s time and
the balance sheet and statement of shareholders‘ equity as of the end of the
specified period. But because the end of the fiscal year is generally chosen to
coincide with the low point of activity in the firm‘s operating cycle, the annual
balance sheet and statement of shareholders equity may not be representative of
values for the year.
Statements are prepared using accrual accounting and the matching

principle. Most businesses use accrual accounting, where income and revenues
are matched in timing such that income is recorded in the period in which it is
earned and expenses are reported in the period in which they are incurred to
generate revenues. The result of the use of accrual accounting is that reported
income does not necessarily coincide with cash flows. Because the financial
analyst is concerned ultimately with cash flows, he or she often must
understand how reported income relates to a company‘s cash flows.
It is assumed that the business will continue as a going concern. The

assumption that the business enterprise will continue indefinitely justifies the
appropriateness of using historical costs instead of current market values
because these assets are expected to be used up over time instead of sold.
Full disclosure requires providing information beyond the financial

statements. The requirement that there be full disclosure means that, in addition
to the accounting numbers for such accounting items as revenues, expenses, and
assets, narrative and additional numerical disclosures are provided in notes
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F.M. AUTO CLG OPTCL
accompanying the financial statements. An analysis of financial statements is

therefore not complete without this additional information.
Statements are prepared assuming conservatism. In cases in which more

than one interpretation of an event is possible, statements are prepared using the
most conservative interpretation.
The financial statements and the auditors‘ findings are published in the firm‘s
annual and quarterly reports sent to shareholders and the 10K and 10Q filings
with the Securities and Exchange Commission (SEC).Also included in the
reports, among other items, is a discussion by management, providing an
overview of company events. The annual reports are much more detailed and
disclose more financial information than the quarterly reports.
There are three basic financial statement:
Balance sheet
Income statement
Cash Flow statement
THE BALANCE SHEET

The balance sheet is a summary of the assets, liabilities, and equity of a business
at a particular point in time—usually the end of the firm‘s fiscal year. The
balance sheet is also known as the statement of financial condition or the
statement of financial position. The values shown for the different accounts on
the balance sheet are not purported to reflect current market values; rather, they
reflect historical costs.
Assets are the resources of the business enterprise, such as plant and equipment
that are used to generate future benefits. If a company owns plant and
equipment that will be used to produce goods for sale in the future, the company
can expect these assets (the plant and equipment) to generate cash inflows in the
future.
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Liabilities are obligations of the business. They represent commitments to

creditors in the form of future cash outflows. When a firm borrows, say, by
issuing a long-term bond, it becomes obligated to pay interest and principal on
this bond as promised. Equity, also called shareholders‘ equity or stockholders‘
equity, reflects ownership. The equity of a firm represents the part of its value
that is not owed to creditors and therefore is left over for the owners. In the
most basic accounting terms, equity is the difference between what the firm
owns—its assets—and what it owes its creditors—its liabilities.
ASSETS
There are two major categories of assets: current assets and noncurrent assets,
where noncurrent assets include plant assets, intangibles, and investments.
Assets that do not fit neatly into these categories may be recorded as either other
assets, deferred charges, or other noncurrent assets.
Current assets (also referred to as circulating capital and working assets) are
assets that could reasonably be converted into cash within one operating cycle
or one year, whichever takes longer. An operating cycle begins when the firm
invests cash in the raw materials used to produce its goods or services and ends
with.the collection of cash for the sale of those same goods or services. For
example, if Fictitious manufactures and sells candy products, its operating cycle
begins when it purchases the raw materials for the products (e.g., sugar) and
ends when it receives cash for selling the candy to retailers. Because the
operating cycle of most businesses is less than one year, we tend to think of
current assets as those assets that can be converted into cash in one year.
Current assets consist of cash, marketable securities, accounts receivable, and
inventories. Cash comprises both currency—bills and coins—and assets that are
immediately transformable into cash, such as deposits in bank accounts.
Marketable securities are securities that can be readily sold when cash is
needed. Every company needs to have a certain amount of cash to fulfil
immediate needs, and any cash in excess of immediate needs is usually invested
temporarily in marketable securities. Investments in marketable securities are
simply viewed as a short term place to store funds; marketable securities do not
include those investments in other companies‘ stock that are intended to be long
term. Some financial reports combine cash and marketable securities into one
account referred to as cash and cash equivalents or cash and marketable
securities. Accounts receivable are amounts due from customers who have
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purchased the firm‘s goods or services but haven‘t yet paid for them. To
encourage sales, many firms allow their customers to ―buy now and pay later,‖
perhaps at the end of the month or within 30 days of the sale. Accounts
receivable therefore represents money that the firm expects to collect soon.
Because not all accounts are ultimately collected, the gross amount of accounts
receivable is adjusted by an estimate of the uncollectible accounts, the
allowance for doubtful accounts, resulting in a net accounts receivable figure.
Inventories represent the total value of the firm‘s raw materials, work-in-
process, and finished (but as yet unsold) goods. A manufacturer of toy trucks
would likely have plastic and steel on hand as raw materials, work-in-process
consisting of truck parts and partly completed trucks, and finished goods
consisting of trucks packaged and ready for shipping. There are three basic
methods of accounting for inventory, including:
■ FIFO (first in, first out), which assumes that the first items purchased are the
first items sold,
■ LIFO (last in, first out), which assumes that the last items purchased are the
first items sold, and
■ Average cost, which assumes that the cost of items sold, is the average of the
cost of all items purchased.
The choice of inventory accounting method is significant because it affects
values recorded on the balance sheet and the income statement, as well as tax
payments and cash flows.
Another current asset account that a company may have is prepaid expenses.
Prepaid expenses are amounts that have been paid but not as yet consumed. A
common example is the case of a company paying insurance premiums for an
extended period of time (say, a year), but for which only a portion (say, three
months) is applicable to the insurance coverage for the current fiscal year; the
remaining insurance that is prepaid as of the end of the year is considered an
asset. Prepaid expenses may be reported as part of other current liabilities.
Noncurrent Assets
Noncurrent assets are assets that are not current assets; that is, it is not expected
that noncurrent assets can be converted into cash within an operating cycle.
Noncurrent assets include physical assets, such as plant and equipment, and
nonphysical assets, such as intangibles.
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Plant assets are the physical assets, such as the equipment, machinery, and
buildings, which are used in the operation of the business. We describe a firm‘s
current investment in plant assets by using three values: gross plant assets,
accumulated depreciation, and net plant assets. Gross plant and equipment, or
gross plant assets, is the sum of the original costs of all equipment, buildings,
and machinery the firm uses to produce its goods and services. Depreciation, as
you will see in the next chapter, is a charge that accounts for the using up of an
asset over the length of an accounting period; it is a means for allocating the
asset‘s cost over its useful life. Accumulated depreciation is the sum of all the
depreciation charges taken so far for all the company‘s assets. Net plant and
equipment, or net plant assets, is the difference between gross plant assets and
accumulated depreciation. The net plant and equipment amount is hence the
value of the assets—historical cost less any depreciation- according to the
accounting books and is therefore often referred to as the book value of the
assets.
Intangible assets are the current value of nonphysical assets that represent
long-term investments of the company. Such intangible assets include patents,
copyrights, and goodwill. The cost of some intangible assets is amortized
(―spread out‖) over the life of the asset. Amortization is akin to depreciation:
The asset‘s cost is allocated over the life of the asset; the reported value is the
original cost of the asset, less whatever has been amortized. The number of
years over which an intangible asset is amortized depends on the particular asset
and its perceived useful life. For example, a patent is the exclusive right to
produce and sell a particular, uniquely defined good and has a legal life of 17
years, though the useful life of a patent—the period in which it adds value to the
company-may be much less than 17 years. Therefore the company may choose
to amortize a patent‘s cost over a period less than 17 years. As another example,
a copyright is the exclusive right to publish and sell a literary, artistic, or
musical composition, and is granted for 50 years beyond the author‘s life,
though its useful life in terms of generating income for the company may be
much less than 50 years. More challenging is determining the appropriate
amortization period for goodwill. Goodwill was created when one company
buys another company at a price that exceeds the acquired company‘s fair
market value of its assets.
A company may have additional noncurrent assets, depending on their
particular circumstances. A company may have a noncurrent asset referred to as
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investments, which are assets that are purchased with the intention of holding
them for a long term, but which do not generate revenue or are not used to
manufacture a product. Examples of investments include equity securities of
another company and real estate that is held for speculative purposes. Other
noncurrent assets include long term prepaid expenses, arising from
prepayment for which a benefit is received over an extended period of time, and
deferred tax assets, arising from timing differences between reported income
and tax income, whereby reported income exceeds taxable income.
Long-term investment in securities of other companies may be recorded at cost
or market value, depending on the type of investment; investments held to
maturity are recorded at cost, whereas investments held as trading securities or
available for sale are recorded at market value. Whether the unrealized gains or
losses affect earnings on the income statement depend on whether the securities
are deemed trading securities or available for sale.
LIABILITIES
Liabilities, a firm‘s obligations to its creditors, are made up of current
liabilities, long-term liabilities, and deferred taxes.
Current Liabilities
Current liabilities are obligations that must be paid within one operating cycle
or one year, whichever is longer. Current liabilities include:
Accounts payable, which are obligations to pay suppliers. They arise from
goods and services that have been purchased but not yet paid.
Accrued expenses, which are obligations such as wages and salaries

payable to the employees of the business, rent, and insurance.
Current portion of long-term debt or the current portion of capital

leases. Any portion of long-term indebtedness—obligations extending beyond
one year—due within the year.
Short-term loans from a bank or notes payable within a year.
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The reliance on short-term liabilities and the type of current liabilities depends,
in part, on the industry in which the firm operates.
Long-term liabilities are obligations that must be paid over a period beyond
one year. They include notes, bonds, capital lease obligations, and pension
obligations. Notes and bonds both represent loans on which the borrower
promises to pay interest periodically and to repay the principal amount of the
loan.
A lease obligates the lessee—the one leasing and using the leased asset—to pay
specified rental payments for a period of time. Whether the lease obligation is
recorded as a liability or is expensed as lease payments made depends on
whether the lease is a capital lease or an operating lease.
A company‘s pension and post-retirement benefit obligations may give rise to
long-term liabilities. The pension benefits are commitments by the company to
pay specific retirement benefits, whereas post-retirement benefits include any

other retirement benefit besides pensions, such as health care. Basically, if the
fair value of the pension plan‘s assets exceeds the projected benefit obligation
(the estimated present value of projected pension costs), the difference is
recorded as a long-term asset. If, on the other hand, the plan‘s assets are less
than the projected benefit obligation, the difference is recorded as a long-term
liability. In a similar manner, the company may have an asset or a liability
corresponding to post-retirement benefits.
DEFFERED TAXES
Along with long-term liabilities, the analyst may encounter another account,
deferred taxes. Deferred taxes are taxes that will have to be paid to the federal
and state governments based on accounting income, but are not due yet.
Deferred taxes arise when different methods of accounting are used for financial
statements and for tax purposes. These differences are temporary and are the
result of different timing of revenue or expense recognition for financial
statement reporting and tax purposes. The deferred tax liability arises when the
actual tax liability is less than the tax liability shown for financial reporting
purposes (meaning that the firm will be paying the difference in the future),
whereas the deferred tax asset, mentioned earlier, arises when the actual tax
liability is greater than the tax liability shown for reporting purposes.
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EQUITY
Equity is the owner‘s interest in the company. For a corporation, ownership is
represented by common stock and preferred stock. Shareholders‘ equity is also
referred to as the book value of equity, since this is the value of equity
according to the records in the accounting books. The value of the ownership
interest of preferred stock is represented in financial statements as its par value,
which is also the dollar value on which dividends are figured. For example, if
you own a share of preferred stock that has a $100 par value and a 9% dividend
rate, you receive $9 in dividends each year. Further, your ownership share of the
company is $100. Preferred shareholders equity is the product of the number of
preferred shares outstanding and the par value of the stock; it is shown that way
on the balance sheet. The remainder of the equity belongs to the common
shareholders. It consists of three parts: common stock outstanding (listed at
par or at stated value), additional paid-in capital, and retained earnings. The par
value of common stock is an arbitrary figure; it has no relation to market value
or to dividends paid on common stock. Some stock has no par value, but may
have an arbitrary value, or stated value, per share. Nonetheless, the total par
value or stated value of all outstanding common shares is usually entitled
―capital stock‖ or ―common stock.‖ Then, to inject reality into the equity part
of the balance sheet, an entry called additional paid-in capital is added; this is
the amount received by the corporation for its common stock in excess of the
par or stated value. If a firm sold 10,000 shares of $1 par value common stock at
$40 a share, its equity accounts would show:
Common stock, $1 par value $10,000
Additional paid-in capital $390,000
There are actually four different labels that can be applied to the number of
shares of a corporation on a balance sheet:
The number of shares authorized by the shareholders.
The number of shares issued and sold by the corporation, which can be less
than the number of shares authorized.
The number of shares currently outstanding, which can be less than the
number of shares issued if the corporation has bought back (repurchased) some
of its issued stock.
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The number of shares of treasury stock, which is stock that the company
has repurchased.
The outstanding stock is reported in the stock accounts, and adjustments must
be made for any treasury stock. The bulk of the equity interest in a company is
in its retained earnings. A retained- earnings is the accumulated net income of
the company, less any dividends that have not been paid, over the life of the
corporation. Retained earnings are not strictly cash and any correspondence to
cash is coincidental. Any cash generated by the firm that has not been paid out
in dividends has been reinvested in the firm‘s assets—to finance accounts
receivable, inventories, equipment, and so forth.
THE INCOME STATEMENT
An income statement is a summary of the revenues and expenses of a business
over a period of time, usually one month, three months, or one year. This
statement is also referred to as the profit and loss statement. It shows the
results of the firm‘s operating and financing decisions during that time.
The operating decisions of the company—those that apply to production and

marketing—generate sales or revenues and incur the cost of goods sold (also
referred to as the cost of sales or the cost of products sold). The difference
between sales and cost of goods sold is gross profit. Operating decisions.
Also result in administrative and general expenses, such as advertising
fees and office salaries. Deducting these expenses from gross profit leaves
operating profit, which is also referred to as earnings before interest and
taxes (EBIT), operating income, or operating earnings. Operating decisions
take the firm from sales to EBIT on the income statement.
The results of financing decisions are reflected in the remainder of the income
statement. When interest expenses and taxes, which are both influenced by
financing decisions, are subtracted from EBIT, the result is net income. Net
income is, in a sense, the amount available to owners of the firm. If the firm has
preferred stock, the preferred stock dividends are deducted from net income to
arrive at earnings available to common shareholders. If the firm does not
have preferred stock (as is the case with Fictitious and most no fictitious
corporations), net income is equivalent to earnings available for common
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shareholders. The board of directors may then distribute all or part of this as
common stock dividends, retaining the remainder to help finance the firm.
Companies must report comprehensive income prominently within their
financial statements. Comprehensive income is a net income amount that
includes all revenues, expenses, gains, and losses items and is based on the idea
that all results of the firm—whether operating or no operating should be
reflected in the earnings of the company. This is referred to as the all-inclusive
income concept. The all-inclusive income concept requires that these items be
recognized in the financial statements as part of comprehensive income.
It is important to note that net income does not represent the actual cash flow
from operations and financing. Rather, it is a summary of operating
performance measured over a given time period, using specific accounting
procedures. Depending on these accounting procedures, net income may or may
not correspond to cash flow.
CASH FLOW STATEMENT:
It is a statement, which measures inflows and outflows of cash on account of
any type of business activity. The cash flow statement also explains reasons for
such inflows and outflows of cash so it is a report on a company's cash flow
activities, particularly its operating, investing and financing activities.
FINANCIAL ANALYSIS
Financial analysis is a tool of financial management. It consists of the
evaluation of the financial condition and operating performance of a business
firm, an industry, or even the economy, and the forecasting of its future
condition and performance. It is, in other words, a means for examining risk and
expected return. Data for financial analysis may come from other areas within
the firm, such as marketing and production departments, from the firm‘s own
accounting data, or from financial information vendors such as Bloomberg
Financial Markets, Moody‘s Investors Service, Standard & Poor‘s Corporation,
Fitch Ratings, and Value Line, as well as from government publications, such as
the Federal Reserve Bulletin. Financial publications such as Business Week,
Forbes, Fortune, and the Wall Street Journal also publish financial data
(concerning individual firms) and economic data (concerning industries,
markets, and economies), much of which is now also available on the Internet.
Within the firm, financial analysis may be used not only to evaluate the
performance of the firm, but also its divisions or departments and its product
lines. Analyses may be performed both periodically and as needed, not only to
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ensure informed investing and financing decisions, but also as an aid in

implementing personnel policies and rewards systems.
Outside the firm, financial analysis may be used to determine the
creditworthiness of a new customer, to evaluate the ability of a supplier to hold
to the conditions of a long-term contract, and to evaluate the market
performance of competitors.
Firms and investors that do not have the expertise, the time, or the resources to
perform financial analysis on their own may purchase analyses from companies
that specialize in providing this service. Such companies can provide reports
ranging from detailed written analyses to simple creditworthiness ratings for
businesses. As an example, Dun & Bradstreet, a financial services firm,
evaluates the creditworthiness of many firms, from small local businesses to
major corporations. As another example, three companies—Moody‘s Investors
Service, Standard & Poor‘s, and Fitch—evaluate the credit quality of debt
obligations issued by corporations and express these views in the form of a
rating that is published in the reports available from.
FINANCIAL RATIO ANALYSIS
Ratio analysis is such a significant technique for financial analysis. It indicates

relation of two mathematical expressions and the relationship between two or
more things.
Financial ratio is a ratio of selected values on an enterprise's financial
statement.
There are many standard ratios used to evaluate the overall financial condition
of a corporation or other organization. Financial ratios are used by managers
within a firm, by current and potential stockholders of a firm, and by a firm‘s
creditor. Financial analysts use financial ratios to compare the strengths and
weaknesses in various companies.
Values used in calculating financial ratios are taken from balance sheet, income
statement and the cash flow of company, besides Ratios are always expressed as
a decimal values, such as 0.10, or the equivalent percent value, such as 10%.
Essence of ratio analysis:
Financial ratio analysis helps us to understand how profitable a business is, if it
has enough money to pay debts and we can even tell whether its shareholders
could be happy or not.
Financial ratios allow for comparisons:
1. between companies
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F.M. AUTO CLG OPTCL
2. between industries
3. between different time periods for one company
4. between a single company and its industry average
To evaluate the performance of one firm, its current ratios will be
compared with its past ratios. When financial ratios over a period of time are
compared, it is called time series or trend analysis. It gives an indication of
changes and reflects whether the firm‘s financial performance has improved or
deteriorated or remained the same over that period of time. It is not the simply
changes that has to be determined, but more importantly it must be recognized
that why those ratios have changed. Because those changes might be result of
changes in the accounting polices without material change in the firm‘s
performances.
Another method is to compare ratios of one firm with another firm in the same
industry at the same point in time. This comparison is known as the cross
sectional analysis. It might be more useful to select some competitors which
have similar operations and compare their ratios with the firm‘s. This
comparison shows the relative financial position and performance of the firm.
Since it is so easy to find the financial statements of similar firms through
publications or Medias this type of analysis can be performed so easily.
To determine the financial condition and performance of a firm, its ratios may
be compared with average ratios of the industry to which the firm belongs. This
method is known as the industry analysis that helps to ascertain the financial
standing and capability of the firm in the industry to which it belongs.
Industry ratios are important standards in view of the fact that each industry has
its own characteristics, which influence the financial and operating
relationships. But there are certain practical difficulties for this method. First
finding average ratios for the industries is such a headache and difficult.
Second, industries include companies of weak and strong so the averages
include them also. Sometimes spread may be so wide that the average may be
little utility. Third, the average may be meaningless and the comparison not
possible if the firms with in the same industry widely differ in their accounting
policies and practices. However if it can be standardized and extremely strong
and extremely weak firms be eliminated then the industry ratios will be very
useful.
What does ratio analysis tell us?
After such a discussion and mentioning that these ratios are one of the most
important tools that is used in finance and that almost every business does and
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calculate these ratios, it is logical to express that how come these calculations
are of so importance.
What are the points that those ratios put light on them? And how can these
numbers help us in performing the task of management?
The answer to these questions is: We can use ratio analysis to tell us whether
the business
1. is profitable
2. has enough money to pay its bills and debts
3. could be paying its employees higher wages, remuneration or so on
4. is able to pay its taxes
5. is using its assets efficiently or not
6. has a gearing problem or everything is fine
7. is a candidate for being bought by another company or investor
But as it is obvious there are many different aspects that these ratios can
demonstrate. So for using them first we have to decide what we want to know,
then we can decide which ratios we need and then we must begin to calculate
them.
CLASSIFICATION OF RATIOS
In isolation, a financial ratio is a useless piece of information. In context,

however, a financial ratio can give a financial analyst an excellent picture of a
company's situation and the trends that are developing. A ratio gains utility by
comparison to other data and standards.
Financial ratios quantify many aspects of a business and are an integral part of
financial statement analysis. Financial ratios are categorized according to the
financial aspect of the business which the ratio measures. Although these
categories are not fixed in all over the world however there are almost the same,
just with different names:
1. Profitability ratios which use margin analysis and show the return on sales
and capital employed.
2. Rate of Return Ratio (ROR) or Overall Profitability Ratio: The rate of
return ratios are thought to be the most important ratios by some accountants
and analysts. One reason why the rate of return ratios is so important is that they
are the ratios that we use to tell if the managing director is doing their job
properly.
3. Liquidity ratios measure the availability of cash to pay debt, which give a
picture of a company's short term financial situation.
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4. Solvency or Gearing ratios measures the percentage of capital employed

that is financed by debt and long term finance. The higher the gearing, the
higher the dependence on borrowing and long term financing.The lower the
gearing ratio, the higher the dependence on equity financing. Traditionally, the
higher the level of gearing, the higher the level of financial risk due to the
increase volatility of profits. It should be noted that the term ―Leverage‖ is
used in some texts.
5. Turn over Ratios or activity group ratios indicate efficiency of organization
to various kinds of assets by converting them to the form of sales.
6. Investors ratios usually interested by investors.
LIQUIDITY RATIOS:
The two liquidity ratios, the current ratio and the acid test ratio, are the most
important ratios in almost the whole of ratio analysis and they are also the
simplest to use. Liquidity ratios provide information about a firm‘s ability to
meet its short- term financial obligations. They are of particular interest to those
extending short term credit to the firm. Two frequently-used liquidity ratios are
current and quick ratio.
While liquidity ratios are most helpful for short-term creditors/suppliers and
bankers, they are also important to financial managers who must meet
obligations to suppliers of credit and various government agencies. A
company's ability to turn short-term assets into cash to cover debts is of the
utmost importance when creditors are seeking payment. Bankruptcy analysts
and mortgage originators frequently use the liquidity ratios to determine
whether a company will be able to continue as a going concern. A complete
liquidity ratio analysis can help uncover weaknesses in the financial position of
the business. Generally, the higher the value of the ratio, the larger the margin
of safety that the company possesses to cover short-term debts.
2. Quick or Acid-Test Ratio

The essence of this ratio is a test that indicates whether a firm has enough short-
term assets to cover its immediate liabilities without selling inventory. So it is
the backing available to liabilities that must be paid almost immediately. There
are two terms of liquid asset and liquid liabilities in this formula, Liquid asset is
all current assets except the inventories and prepaid expenses, because prepaid
expenses cannot be converted to cash. The liquid liabilities include all current
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F.M. AUTO CLG OPTCL
liabilities except bank overdraft and cash credit since they are not required to be
paid off immediately.
Quick/Acid test/Liquid ratio:-

Acid Test Ratio=Quick Assets/Current Liabilities
Quick Assets=Current Assets/Inventories
TURN OVER RATIOS

Accounting ratios that measure a firm's ability to convert different accounts
within their balance sheets into cash or sales. Companies will typically try to
turn their production into cash or sales as fast as possible because this will
generally lead to higher revenues.
Such ratios are frequently used when performing fundamental analysis on
different companies.
1. FIXED ASSETS TURN OVER RATIO:
It shows how the company uses its fixed assets to achieve sales. The formula is
as follows:
FIXED ASSETS TURN OVER RATIO = FIXED ASSET
NET SALES
CURRENT ASSETS TURN OVER RATIO:

It is almost like the fixed asset turnover ratio, it calculates the capability of
organization to earn sales with usage of current assets. So it indicates with what
ratio current assets are turned over in the form of sales.
This ratio is calculated as:current Asset Turn Over ratio=net sale/current asset
WORKING CAPITAL TURNS OVER RATIO:

As its name suggests it is the relationship between turnover and working capital.
It is a measurement comparing the depletion of working capital to the
generation of sales over a given period. This provides some useful information
as to how effectively a company is using its working capital to generate sales.
A company uses working capital to fund operations and purchase inventory.
These operations and inventory are then converted into sales revenue for the
company. The working capital turnover ratio is used to analyze the relationship
between the money used to fund operations and the sales generated from these
operations.
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The formula related is:

WORKING CAPITAL TURNOVER RATIO = NET SALES
WORKING
CAPITAL
Debt Equity ratio:
This ratio reflects the relative claims of creditors and share holders against the
assets of the firm, debt equity ratios establishment relationship between
borrowed funds and owner capital to measure the long term financial solvency
of the firm. The ratio indicates the relative proportions of debt and equity in
financing the assets of the firm.
It is calculated as debt ratio = debt
Share holders fund
GROSS PROFIT RATIO:

The gross profit margin ratio tells us the profit a business makes on its cost of
sales. It is a very simple idea and it tells us how much gross profit our business
is earning. Gross profit is the profit we earn before we take off any
administration costs, selling costs and so on. So we should have a much higher
gross profit margin than net profit margin.
High ratios are favorable in this, since it indicates the business is earning a good
return on the sale of its merchandise. Formula = Gross profit
___________ x 100
Net sales
NET PROFIT RATIO:

This shows the portion of sales available to owners after all expenses. A high
profit ratio is higher profitability of the firm. This ratio shows the earning left
for shareholder as percentage of Net sales.
Net Margin Ratio measures the overall efficiency of production, Administration
selling, financing, pricing and Taste Management.
Formula = Net profit After tax

___________ x 100
Net sales
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COMPANY PROFILE
ORISSA POWER TRANSMISSION CORPORATION LIMITED
(OPTCL), one of the largest Transmission Utility in the country was
incorporated in March 2004 under the Companies Act, 1956 as a company
wholly owned by the Government of Orissa to undertake the business of
transmission and wheeling of electricity in the State. The registered office of the
Company is situated at Bhubaneswar, the capital of the State of Orissa. Its
projects and field units are spread all over the State.
OPTCL became fully operational with effect from 9th June 2005
consequent upon issue of Orissa Electricity Reform (Transfer of Transmission
and Related Activities) Scheme, 2005 under the provisions of Electricity Act,
2003 and the Orissa Reforms Act, 1995 by the State Government for transfer
and vesting of transmission related activities of GRIDCO with OPTCL. The
Company has been designated as the State Transmission Utility in terms of
Section 39 of the Electricity Act, 2003.
ORGANIZATION PROFILE OF OPTCL
Started commercial operation from 01.04.2005 only as a Transmission

Licensee.(a deemed Transmission Licensee under Section 14 of Electricity Act,
2003)
Notified as the State Transmission Utility (STU) by the State Govt. and
discharges the State Load Dispatch functions.
Number of employees as on (01.05.2010) : 3145Executives-759, Non-

Executives - 2836
Number of posts vacant as on 01.05.2009: 1782Executives-845, Non-

Executives- 937
Number of Pensioners as on 01.05.2009: 6600
Number of Grid S/S including switching stations
Length of EHT lines
10,902.479 Ckt-Kms. Number of Bays1597
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F.M. AUTO CLG OPTCL
ORISSA POWER TRANSMISSION CORPORATION LIMITED

(OPTCL),
One of the largest Transmission Utility in the country was incorporated in

March 2004 under the Companies Act, 1956 as a company wholly owned by the
Government of Orissa to undertake the business of transmission and wheeling
of electricity in the State. The registered office of the Company is situated at
Bhubaneswar, the capital of the State of Orissa. Its projects and field units are
spread all over the State.
OPTCL became fully operational with effect from 9th June 2005 consequent
upon issue of Orissa Electricity Reform (Transfer of Transmission and Related
Activities)Scheme, 2005 under the provisions of Electricity Act, 2003 and the
Orissa Reforms Act, 1995 by the State Government for transfer and vesting of
transmission related activities of GRIDCO with OPTCL. The Company has
been designated as the State Transmission Utility in terms of Section 39 of the
Electricity Act, 2003.
Presently the Company is carrying on intra state transmission and wheeling of

electricity under a license issued by the Orissa Electricity Regulatory
Commission. The Company is also discharging the functions of State Load
dispatch Centre. The Company owns Extra High Voltage Transmission system
and operates about 9550.93 cktkms of transmission lines at 400 kV, 220 kV,
132 kV levels and 81 nos. of substations with transformation capacity of MVA.
The day-to-day affairs of the Company are managed by the Managing Director
assisted by whole-time Functional Directors as per the advice of the Board of
Directors constituted. They are in turn assisted by a team of dedicated and
experienced professionals in the various fields.
OBJECTIVES OF OPTCL:-
To effectively operate Transmission lines and Sub-Stations in the State for

evacuation of power from the state generating stations feed power to state
distribution companies, wheeling of Power to other states, maintenance of the
existing lines and sub-stations for power transmission and to undertakepower
system improvement by renovation, up-gradation and modernization of the
transmission network. OPTCL being a State Transmission Utility Public
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F.M. AUTO CLG OPTCL
Authority has set the following objectives. Undertake transmission and

wheeling of electricity through intra- State Transmission system
1. Discharge all functions of planning and coordination relating to intrastate,

inter State transmission system with Central Transmission Utility, State Govt.
Generating Companies, Regional Power Board, Authority, Licensees or other
person notified by State Govt. in this behalf.
2. Ensure development of an efficient and economical system of intra state

and inter State transmission lines for smooth flow of electricity from generating
station s to the load centers.
3. Provide non-discriminatory open access to its transmission system for use

by any licensee or generating company or any consumer as and when such open
access is provided by the State Commission on payment of transmission
charges/surcharge as may be specified by the State Commission.
4. Exercise supervision and control over the intra-state transmission system,

efficient operation and maintenance of transmission lines and substations and
operate State Load Dispatch Centers to ensure optimum scheduling and dispatch
of electricity and to ensure integrated operation of power systems in the State.
5. Restore power at the earliest possible time through deployment of

emergency Restoration system in the event of any Natural Disasters like super
cyclone, flood etc.
ELECTRICITY SECTORS
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F.M. AUTO CLG OPTCL
MISSION:-
POWER SECTOR REFORM IN THE STATE - OPTCL.
The Power Sector Reforms in the State of Orissa was started during November
1993 in an organized manner. The main objective of the reform was to
unbundle generation, transmission and distribution and to establish an
independent and transparent Regulatory Commission in order to promote
efficient and accountability in the Power Sector. In order to implement the
reform, in the first phase, two corporate entities namely Grid Corporation of
Orissa Limited (GRIDCO) and Orissa Hydro Power Corporation Limited
(OHPC) were established in April 1995. GRIDCO was incorporated under the
Companies Act, 1956 in April 1995 to own and operate the transmission and
distribution systems in the State. Similarly OHPC was incorporated to own and
operate all the hydro generating stations in the State.The State Government
enacted the Orissa Electricity Reform Act, 1995 which came into force with
effect from 1.4.1996. In exercise of power under Section 23 and 24 of the
Orissa Electricity Reform Act, 1995,the State Govt. notified the Orissa
Electricity Reform (Transfer of Undertakings, Assets, Liabilities, proceedings
and Personnel ) Scheme Rules 1996. As per the scheme, the transmission,
distribution activities of the erstwhile OSEB along with the related assets,
liabilities, personnel and proceedings were vested on GRIDCO. Simultaneously
the hydro generation activities of OSEB along with related assets, liabilities,
personnel and proceedings were vested on OHPC. In order to privatize the
distribution functions of electricity in the State, four Distribution Companies
namely Central Electricity Supply Company of Orissa Limited (CESCO), North
Eastern Electricity Supply Company of Orissa Limited (NESCO), southern
Electricity Supply Company of Orissa limited (SOUTHCO) & Western
Electricity Supply Company of Orissa Limited (WESCO) were incorporated
under the Companies Act, 1956 as separate corporate entities. During
November 1998 the State Govt. issued the “Orissa Electricity Reform (Transfer
of Assets, Liabilities, Proceedings and Personnel of GRIDCO to distribution
Companies) Rules 1998” wherein the electricity distribution and retail supply
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F.M. AUTO CLG OPTCL
activities along with the related assets, liabilities, personnel and proceedings
were transferred from GRIDCO to the four Distribution Companies. Through a
process of international Competitive Bidding (ICB), the four Distribution
Companies were privatized during 1999.After separation of Distribution
business, GRIDCO left with electricity Transmission and Bulk Supply/Trading
activities. GRIDCO was also declared as the State Transmission Utility and was
discharging the functions of State Load dispatch Center (SLDC). The
Government of India enacted the Electricity Act, 2003 which came into effect
from 10th June 2003. Under the provisions of the said Act, trading in electricity
has been recognized as a distinct licensed activity, which can only be
undertaken by a licensee to be granted by the appropriate commission. The Act
specifically prohibits the STU and Transmission Company in the State from
engaging in the business of trading. GRIDCO being a State Transmission
Utility was not permitted to engage itself in the trading in electricity and was
required to segregate its activities in a manner within the transional period
allowed under the Act that, the entity which will undertake transmission STU
and SLDC function will not undertake the activities of Trading and Bulk
Supply of Electricity. Keeping in view the statutory requirement of the
Electricity Act for separation of trading and transmission functions into two
separate entities, the State Govt incorporated Orissa Power Transmission
Corporation Limited (OPTCL) to take over the transmission, STU/SLDC
functions of GRIDCO. In exercise of the power conferred under Section
39,131, 133 & 134 of the Electricity Act, 2003, read with Section 23 & 24 of
the Orissa Electricity Reform Act, 1995, the State Govt. issued the notification
“Orissa Electricity Reform (Transfer of Transmission and Related Activities)
Scheme 2005” on 9.6.2005. The Scheme was made effective from 1.4.2005. By
virtue of the Transfer Scheme, 2005, OPTCL now undertaking the functions of
transmission of electricity in the State of Orissa and has been declared as the
State Transmission Utility. GRIDCO is also discharging the functions of
SLDC.
IMPORTANT EVENTS OF ORISSA ELECTRICITY REFORMS

 OSEB unbundled by separation of generation, transmission and distribution
of electricity.
 2. Orissa Electricity Reform Act, 1995 enacted and came into force with
effect from 01.04.1996.
 Orissa Electricity Reform (transfer of Undertakings, Assets, Liabilities,
PAGE NO:
F.M. AUTO CLG OPTCL
Proceedings and Personnel) Scheme Rules, 1996 came into force with effect
from 01.04.1996. GRIDCO vested with transmission and distribution
activities and OHPC vested with hydro generation activities.
 Under the Orissa Electricity Reform Act, 1995 Orissa Electricity Regulatory
Commission, a regulatory body was created which became functional from
01.08.1996.
 5.Unbundling of transmission and distribution functions of GRIDCO by
creation of four distribution companies namely CESCO, NESCO, WESCO
and SOUTHCO.
 Orissa Electricity Reform (Transfer of Assets, Liabilities, Proceedings and
Personnel of GRIDCO to Distribution companies). Rules 1998 came into
force with effect from 26.11.1998 and the distribution related assets,
liabilities and personnel were vested with four distribution companies.
 BSES took over the management control of three distribution companies
namely NESCO, WESCO & SOUTHCO from 01.04.1999.
 AES took over the management control of CESCO from 01.09.1999. By this
, the privatization of distribution companies were completed.
 Eight Tariff Orders were issued by Orissa Electricity
 9.Eight Tariff Orders wear issued by Orissa Electricity Regulatory
Commission after public hearing.
 10. Orissa Power Transmission Corporation Limited(OPTCL) was
incorporated ON 29.03.2004 to carry on business of transmission,STU and
SLDC function of GRIDCO.
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F.M. AUTO CLG OPTCL
THE ELECTRICITY ACT, 2003.
The Govt. of India enacted the Electricity Act, 2003, which came into force with
effect from 10th June 2003. The Act has repealed the earlier Central Acts namely
the Indian Electricity Act, 1910, Electricity (Supply) Act, 1948 and the Electricity
Regulatory Commission Act, 1998. The main objectives of the Act as envisaged in
THE ORISSA ELECTRICITY REFORM ACT, 1995
 THE ORISSA ELECTRICITY REFORM ACT, enacted on 10th January,

1996 by the state after obtaining prior presidential assent. The Act came
into effect on 1st April 1996, with an objective to provide for the
restructuring of the electricity industry for the rationalisation of the
generation, transmission, distribution and supply of electricity for avenues
for participation of private sector enterpreneurs in the electricity industry
and generally for taking measures conducive to the development and
management of the electricity industry in the state in an efficient, economic
competitive manner including the constitution of an electricity regulatory
commission for the state and for matters connected therewith of incidental
there to.
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F.M. AUTO CLG OPTCL
the preamble are “an Act to consolidate the laws relating to generation,
transmission , distribution, trading and use of electricity and generally for taking
measures conducive to development of electricity industry, rationalization of
electricity tariff, ensuring transparent policies regarding subsidies, promotion of
efficient and environmentally benign policies, constitution of Central Electricity
Authority, Regulatory Commissions and establishment of Appellate Tribunal and
for matters connected therewith or incidental there to.”The Electricity Act, 2003 is
a comprehensive law intended for growth and development of Electricity sector as
a whole. This Act gives clarity to the investors, the regulators, the consumers and
other stakeholders at large and connected to the Electricity Sector in particular. It
also brings modern concept like power trading, open access and parallel networks.
The main features of the Act are as follows:
 Deli censing Generation except in case hydro.

 Captive generation free from control.
 Open Access to provide multiple choices for selection of suppliers/
consumers.
 Transmission utilities not to engage in the business of trading of power
 Power trading recognized as a distinct legal and licensed activity .
 Appellate Tribunal to replace High Courts to expedite court cases.
 Government to distance itself from regulatory function and to formulate
policies which will be the guiding principle for the regulators.
 SEBs will be restructured into separate companies and transmission will be
separated from other business.
 Stringent provisions for penalizing theft.
 Regulatory Commissions to issue licenses.
 Regulatory Commissions to determine tariff for sale of power to distribution
licensee. While determining tariff, regulatory commissions will be guided by
the National Power Policy and tariff policy issued by Central Government.
 Set up of State Regulatory Commissions is mandatory.
 Rationalization of traffic to reflect cost and cross subsidies to be eliminated
progressively.
From the above, it is evident that the new Electricity Act provides a comprehensive
enabling framework which can be considered as a milestone in further liberalizing
the electricity sector in the country as it paves the way for evaluation of a
genuinely competition in power sector. It is for the entire stakeholder as to utilize
the framework and take the electricity sector rapidly in the direction of realizing
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F.M. AUTO CLG OPTCL
the objectives stated in the Act which are in line with the National Electricity
policy.
POWER SECTOR REFORM IN THE STATE - OPTCL.
The Power Sector Reforms in the State of Orissa was started during November
1993 in an organized manner. The main objective of the reform was to
unbundle generation, transmission and distribution and to establish an
independent and transparent Regulatory Commission in order to promote
efficient and accountability in the Power Sector. In order to implement the
reform, in the first phase, two corporate entities namely Grid Corporation of
Orissa Limited (GRIDCO) and Orissa Hydro Power Corporation Limited
(OHPC) were established in April 1995. GRIDCO was incorporated under the
Companies Act, 1956 in April 1995 to own and operate the transmission and
distribution systems in the State. Similarly OHPC was incorporated to own and
operate all the hydro generating stations in the State. The State Government
enacted the Orissa Electricity Reform Act, 1995 which came into force with
effect from 1.4.1996. In exercise of power under Section 23 and 24 of the
Orissa Electricity Reform Act, 1995, the State Govt. notified the Orissa
Electricity Reform (Transfer of Undertakings, Assets, Liabilities, proceedings
and Personnel) Scheme Rules 1996. As per the scheme, the transmission,
distribution activities of the erstwhile OSEB along with the related assets,
liabilities, personnel and proceedings were vested on GRIDCO. Simultaneously
the hydro generation activities of OSEB along with related assets, liabilities,
personnel and proceedings were vested on OHPC. In order to privatize the
distribution functions of electricity in the State, four Distribution Companies
namely Central Electricity Supply Company of Orissa Limited (CESCO), North
Eastern Electricity Supply Company of Orissa Limited (NESCO), southern
Electricity Supply Company of Orissa limited (SOUTHCO) & Western
Electricity Supply Company of Orissa Limited (WESCO) were incorporated
under the Companies Act, 1956 as separate corporate entities. During
November 1998 the State Govt. issued the “Orissa Electricity Reform (Transfer
of Assets, Liabilities, Proceedings and Personnel of GRIDCO to distribution
Companies) Rules 1998” wherein the electricity distribution and retail supply
activities along with the related assets, liabilities, personnel and proceedings
PAGE NO:
F.M. AUTO CLG OPTCL
were transferred from GRIDCO to the four Distribution Companies. Through a

process of international Competitive Bidding (ICB), the four Distribution
Companies were privatized during 1999.After separation of Distribution
business, GRIDCO left with electricity Transmission and Bulk Supply/Trading
activities. GRIDCO was also declared as the State Transmission Utility and was
discharging the functions of State Load Dispatch Center (SLDC). The
Government of India enacted the Electricity Act, 2003 which came into effect
from 10th June 2003. Under the provisions of the said Act, trading in electricity
has been recognized as a distinct licensed activity, which can only be
undertaken by a licensee to be granted by the appropriate commission. The Act
specifically prohibits the STU and Transmission Company in the State from
engaging in the business of trading. GRIDCO being a State Transmission
Utility was not permitted to engage itself in the trading in electricity and was
required to segregate its activities in a manner within the transional period
allowed under the Act that, the entity which will undertake transmission STU
and SLDC function will not undertake the activities of Trading and Bulk
Supply of Electricity. Keeping in view the statutory requirement of the
Electricity Act for separation of trading and transmission functions into two
separate entities, the State Govt incorporated Orissa Power Transmission
Corporation Limited (OPTCL) to take over the transmission, STU/SLDC
functions of GRIDCO. In exercise of the power conferred under Section
39,131, 133 & 134 of the Electricity Act, 2003, read with Section 23 & 24 of
the Orissa Electricity Reform Act, 1995, the State Govt. issued the notification
“Orissa Electricity Reform (Transfer of Transmission and Related Activities)
Scheme 2005” on 9.6.2005. The Scheme was made effective from 1.4.2005. By
virtue of the Transfer Scheme, 2005, OPTCL now undertaking the functions of
transmission of electricity in the State of Orissa and has been declared as the
State Transmission Utility. GRIDCO is also discharging the functions of
SLDC.
PAGE NO:
F.M. AUTO CLG OPTCL
IMPORTANT EVENTS OF ORISSA ELECTRICITY REFORMS
1. OSEB unbundled by separation of generation, transmission and distribution of

electricity.
2. Orissa Electricity Reform Act, 1995 enacted and came into force with effect
from 01.04.1996.
3. Orissa Electricity Reform (transfer of Undertakings, Assets, Liabilities,

Proceedings and Personnel) Scheme Rules, 1996 came into force with effect
from 01.04.1996. GRIDCO vested with transmission and distribution activities
and OHPC vested with hydro generation activities.
4. Under the Orissa Electricity Reform Act, 1995 Orissa Electricity Regulatory
Commission, a regulatory body was created which became functional from
01.08.1996.
5. Unbundling of transmission and distribution functions of GRIDCO by creation

of four distribution companies namely CESCO, NESCO, WESCO and
SOUTHCO.
6. Orissa Electricity Reform (Transfer of Assets, Liabilities, Proceedings and

Personnel of GRIDCO to Distribution companies). Rules 1998 came into force
with effect from 26.11.1998 and the distribution related assets, liabilities and
personnel were vested with four distribution companies.
7. BSES took over the management control of three distribution companies namely
NESCO, WESCO & SOUTHCO from 01.04.1999.
8. AES took over the management control of CESCO from 01.09.1999. By this
, the privatization of distribution companies were completed.
Eight Tariff Orders were issued by Orissa Electricity
9.Eight Tariff Orders wear issued by Orissa Electricity Regulatory Commission

after public hearing.
10.Orissa Power Transmission Corporation Limited(OPTCL) was incorporated ON

29.03.2004 to carry on business of transmission,STU and SLDC function of
GRIDCO.
PAGE NO:
F.M. AUTO CLG OPTCL
Plan & operate the Transmission system so as to ensure that transmission system
built, operated and maintained to provide efficient, economical and coordinated
system of Transmission and meet the overall performance Standards.
(i) To upgrade the transmission system network so as to handle power to the tune
of 3000 MW by the year 2012 for 100% availability of power to each family.
(ii) To maintain the system losses at par with that of National level.
(iii) To impart advanced techno managerial training to the practicing engineer
and work force so as to professionalism them with progressive technology and
PAGE NO:
F.M. AUTO CLG OPTCL
capable commercial organization of the country so as to build up the most

techno-commercially viable model of the country.
VISION:
1.To build up OPTCL as one of the best Transmission utility in the Country
in terms of uninterrupted power supply, minimizing the loss, contributing to
state's Industrial growth. 2.Development of a well-coordinated transmission
system in the backdrop of formation of strong National Power Grid as a
flagship, endeavor to steer the development of Power System on Planned path
leading to cost effective fulfillment of the objective of 'Electricity to All' at
affordable price.
ODISHA POWER TRANSMISSION CORPORATION LIMITED
BOARD OF DIRECTORS
Sri Hemant Ku. Sharma Chairman-cum-Managing Director
Sri C. J. Venugopal , IAS Commissioner-cum-secretary to Govt.,

P.E. Department ,Govt. of Odisha
Sri D.K. Jena Joint secretary To Govt.
Finance Department, Govt. Of
Odisha,BBSR
Sri Santanu Kumar Rath Director(HRD)
Sri B.P. Mahapatra Director(Finance)
Sri Susanta Kumar Das Director (Engg.)
OPTCL SENIOR EXECUTIVES
Sri M. AnantaRao Chief General Manager (IT)
Sri Ramesh Chandra Chief General Manager(F) CF

Mishra
PAGE NO:
F.M. AUTO CLG OPTCL
Sri C.Rakshit Senior General Manager (Electrical)
Sri P.K Das Company Secretary
Sri R. Kamilla Senior General Manager (EI)
Sri Krushna Chandra General Manager (Mech) SVP &

Behera Stores & Services Circle BBSR I/C
Sri P.C Tripathy General Manager (Electrical)CPC
Sri S.K Hota General Manager (Electrical)SLDC
Sri Pradipta Kumar Dash General Manager (Electrical) EHT

(construction) Circle BBSR
Sri M.R Mohanty General Manager (Electrical)
PAGE NO:
F.M. AUTO CLG OPTCL
ANALYSIS, FINDING
&
INTERPRETATION
Ratio Analysis
Current Ratio:-
Current Ratio=Current Assets/Current Liabilities
Year Current Current Ratio=CA/C

Assets(C Liabilities(C L
A) L)
2010-11 63063.15 73040.56 0.86
2011-12 50793.75 82136.64 1.61
2012-13 44385.38 84234.81 0.52
INTERPRETATION:-According to the standard rule the current ratio of any

mfg. concern should be 2:1. The current ratio of OPTCL in the year 2010-11 is
0.86: , in the year 2011
-12 is 1.61 , in the year 2012-13 is 0.52. Which indicates that in the 3 year the
organization has not maintained standard ratio i.e 2:1 . so, According to
standard rule the current ratio of OPTCL is not satisfactory.
Quick/Acid test/Liquid ratio:-

Acid Test Ratio=Quick Assets/Current Liabilities
Quick Assets=Current Assets/Inventories
Year Current Inventories(I Current Ratio=CA/C

Assets(C ) Liabilities(C L
A) L)
2010-11 63063.15 8085.19 73040.56 0.75
2011-12 50793.75 9690.56 82136.64 0.50
2012-13 44385.38 11442.69 84234.81 0.39
PAGE NO:
F.M. AUTO CLG OPTCL
INTERPRETATION:-According to the standard rule the Quick ratio of any

mfg. concern should be 1:1. The current ratio of OPTCL in the year 2010-11 is
0.75:1 , in the year 2011-12 is 0.50:1 , in the year 2012-13 is 0.39:1. Which
indicates that in the 3 year the organization has not maintained standard ratio i.e
1:1 . so, According to standard rule the Quick ratio of OPTCL is not
satisfactory.
Absolute Liquid Ratio:-

Absolute Liquid Ratio=Absolute Liquid Assets/Current Liabilities
Absolute Liquid Assets=CA- (Inventories + Debtors)
Year Current Inventories( Debtors Current Ratio=CA/C

Assets(C I) Liabilities(C L
A) L)
2010-11 63063.15 8085.19 10550.9 73040.56 0.60
7
2011-12 50793.75 9690.56 10556.3 82136.64 0.37
1
2012-13 44385.38 11442.69 15587.3 84234.81 0.20:1
5
INTERPRETATION:-According to the standard rule the Absolute liquid ratio

of any mfg. concern should be 1:2.The current ratio of OPTCL in the year 2010-
11 is 0.60:1 , in the year 2011-12 is 0.37:1 , in the year 2012-13 is 0.20:1.
Which indicates that in the 3 year the organization has not maintained standard
ratio i.e 1:2 . so, According to standard rule the Absolute liquid ratio of
OPTCL is not satisfactory.
PAGE NO:
F.M. AUTO CLG OPTCL
Debt-Equity Ratio:-
Debt-Equity Ratio=Outsider Fund / shareholder Fund
Year Outsiders fund Shareholders Ratio

fund
2010-11 131166.82 55822.27 2.35
2011-12 103090.58 61051.74 1.68
2012-13 91885.77 68283.03 1.34
INTERPRETATION:-According to the standard rule the Absolute liquid ratio

of any mfg. concern should be 1:1.The current ratio of OPTCL in the year 2010-
11 is 2.35:1 , in the year 2011-12 is 1.68:1 , in the year 2012-13 is 1.34:1.
Which indicates that in the 3 year the organization has maintained standard
ratio i.e 1:1 . so, According to standard rule the Debt Equity ratio of OPTCL is
satisfactory.
Inventory Turnover Ratio:-

Inventory Turnover Ratio=Net Sales / Inventories
Year Net Sales Inventori Ratio=Net

es sales/
Inventories
2010-11 67892.95 8085.19 8.39
2011-12 30516.27 9690.56 3.14
2012-13 40519.14 11442.69 3.54
INTERPRETATION:
Inventory turnover ratio measures the velocity of conversion of stock into sale.
A Inventory turnover ratio indicate efficient management of inventory because
more the stock are sold the lesser amount of money required to finance the
inventory. In the year 2012 the ratio is 3.54:1 and the inventory conversion
period is 103 days which has decreased from the year 2011.
PAGE NO:
F.M. AUTO CLG OPTCL
Inventory Conversion period:-

Inventory Conversion period=365/ Inventory Turnover Ratio
Days Inventories Inventory

Turnover Conversion
Ratio(ITR) period=365/ITR(Da
ys)
365 8.39 43
365 3.14 116
365 3.54 103
Debtors Turnover Ratio:-

Debtors Turnover Ratio=Net Credit Sales / Avg. Trade Debtors
Year Net Credit Avg. Ratio

Sales Debtors
2010-11 67892.95 10550.97 6.43
2011-12 30516.27 10556.31 2.81
2012-13 40519.14 15587.35 2.59
Avg. Collection Period:-

Avg. Collection Period=365/Debtors Turn Over Ratio
Year Days Debtors Avg. Collection

Turnover period=365/DTR(Day
Ratio(DTR) s)
2010-11 365 6.43 56
2011-12 365 2.89 126
2012-13 365 2.59 140
PAGE NO:
F.M. AUTO CLG OPTCL
Working Capital Turnover Ratio:-

Working Capital Turnover Ratio=Sales/ Net Working Capital
Here, Net W.C = CA - CL
Year Net Net W.C = CA- Ratio

Sales CL
2010-11 67892.95 (-) 9977.41 (-) 6.80
2011-12 30516.27 (-) 31342.89 (-) 0.97
2012-13 40519.14 (-) 39849.43 (-) 1.01
Net Profit Ratio:-

Net Profit Ratio=Net Profit /Net Sales
Year Net Net Sales Ratio

Profit
2010-11 (- 67892.95 (-)0.027
)1854.26
2011-12 (- 30516.27 (-)0.233
)7137.17
2012-13 (- 40519.14 (-)0.031
)1273.12
INTERPRETATION:
It establishes a relationship between net profit/sales. Net profit ratio incurring a
lot of losses that shows negative percentage. The net profit of OPTCL is not
satisfactory, because it shows negative balance.
PAGE NO:
F.M. AUTO CLG OPTCL
COMPARATIVE BALANCE SHEET:-
The year ending 2011 (Rs. In lakhs)
Assets 2010 2011 Amount of % Increase or

(Rs.) (Rs.) increase or Decrease
Decrease
Current Assets
Stores & Spares 7668.65 8085.19 416.54 5.43%
Sundry debtors 10524.79 10550.97 26.18 0.24%
Cash & Bank balance 4908.81 9070.19 4161.38 84.77%
Other current Assets 6525.53 6669.51 143.98 2.20%
Loansand advances 1433.39 28687.25 27253.86 1901.35%
Total 31061.17 63063.11 32001.94 103.02%
Fixed Assets
Net Block 123852.61 127150.68 3298.07 2.66%
Capital W-I-P 72214.40 67110.33 5104.07 (7.06%)
Total
196067.01 194261.01 8402.14 (0.9%)
Investments
2705.50 2705.50 0.00 0.00%
Liabilities 2010 2011 Amount of % Increase or

Decrease
Current Liabilities 20551.68 24764.86 4213.18 20.50%
Provisions 13045.17 48275.70 35230.53 270%
ConsumerSecurity Deposits 0.83 0.83 0.00 0.00%
Total 33597.68 73041.39 39443.71 117.4%

Long –Term Loans 50946.01 40349.67 (10596.34) (20.8%)
Secured Loans 90583.14 90816.29 233.15 .25%
Unsecured Loan
Total 141529.15 131165.96 (10363.19) (7.32%)
Capital & Reserve 6007.00 8312.55 2305.55 38.39%
Share Capital 53683.62 55316.76 1633.14 3.04%
Reserve & surplus 4923.24 7776.78 2853.54 57.96%
Less:-
Misc. Expenses
Total 54767.38 55852.52 1085.15 1.98%
PAGE NO:
F.M. AUTO CLG OPTCL
year ending 2012 (Rs. In lakhs)

Decrease
Current Assets
Stores & Spares 8085.19 9690.56 1605.37 19.85%
Sundry debtors 10550.97 10556.31 5.34 0.05%
Cash & Bank balance 9070.19 7271.06 (1799.13) (19.83%)
Loans and advances 27861.57 15826.86 (12034.71) (43.19%)
Total 62957.43 50793.73 (12163.7) 19.32%
Fixed Assets 127150.68 135177.23 8026.55 6.31%
Net Block 67110.33 57607.03 (9503.3) (14.16%)
Capital W-I-P
194261.01 192784.26 (1476.75) (0.76%)
Total
2705.50 2705.50 0.00 0.00%
Investments

Decrease
Provisions 48170.02 56956.67 8786.65 18.24%
Consumer Security Deposits 0.83 4.55 3.72 448.19%
Total 72935.71 82141.18 9205.47 117.4%

Long –Term Loans 40349.67 29708.43 (10641.24) (26.37%)
`Secured Loans 90816.29 73382.14 (17434.15) (19.19%)
Unsecured Loans
Total 131165.96 103090.57 (28075.39) (21.40%)
Capital & Reserve 8312.55 8812.55 500.00 38.39%
Share Capital 55316.76 68246.66 12929.90 3.04%
Reserve & surplus 7776.78 16007.47 8230.69 57.96%
Less:-
Misc. Expenses
55852.53 61051.74 5199.21 9.30%
Total
PAGE NO:
F.M. AUTO CLG OPTCL

Decrease
Current Assets
Stores & Spares 9690.56 11442.69 1752.13 18.08%
Sundry debtors 10556.31 15587.35 5031.04 47.65%
Cash & Bank balance 7271.06 5794.33 (1476.73) (20.30%)
Loans and advances 15826.86 4047.66 (11779.2) (74.42%)
Total 50793.73 44385.36 6480.37 (12.61%)
Fixed Assets
Net Block 135177.23 141766.28 6589.05 4.87%
Capital W-I-P 57607.03 55625.15 (1981.88) (3.44%)
Total 192784.26 197391.43 4607.17 2.39%
Investments 2705.50 2705.50 0.00 0.00%

Decrease
Provisions 56956.67 56299.60 (657.07) (1.15%)
Consumer Security Deposits 4.55 78.68 74.13 1629.23%
Total
82141.18 84313.49 2172.31 2.64%
Long –Term Loans
Secured Loans 29708.43 18828.08 (10880.35) (36.62%)
Unsecured Loans 73382.14 73057.69 (324.45) (0.44%)
Total 103090.57 91885.77 (11204.80) (10.86%)

Capital & Reserve
Share Capital 8812.55 16007.00 7194.45 81.63%
Reserve & surplus 68246.66 70745.04 2498.38 3.66%
Less:-
Misc. Expenses 16007.47 18469.01 2461.54 15.38%
Total 61051.74 68283.03 7231.29 11.84%
PAGE NO:
F.M. AUTO CLG OPTCL
Particulars 2011 2012 2013
(A)Sources of funds
1. Share holder Fund
(a) Share Capital 600,700,000 831,255,000 881,255,000
(b)Reserve & surplus
2. Loan Funds 53,683,62,657 5,531,676,826 6,824,666,950
(a) Scured Loans

(b) Unsecured Loans 5094601256 4034967573 2970843099
(c) Consumer Security 9058314752 9081629634 7338214991

Deposits
83334 83334 455334
Total
20,122,061,999 19,479,612,367 18,015,435,374
(B)Application funds
1. Fixed Assets
2,27,25,369,686 24,15,2,614,571 26,037,473,415
(a) Gross Block
10,340,108,668 11,437,546,544 12,519,750,138
Less=Accumulated Depreciation
12,385,261,018 12,715,068,027 13,517,723,277
Net block
7,22,440,474 6,711,033,019 5,760,703,817
(b)Capital W-I-P
270,550,000 270,550,000 270,550,000
2. Investments
3. Current Assets Loans &
Advances 766,865,262 808,519,278 969,056,460
1,052,479,982 1,055,097,473 1,055,631,698
(a)Stores & Spares
490,881,183 907,019,750 727,106,129
(b)Sundry debtors
652,553,304 738,951,177 744,894,758
(c)Cash & Bank balance
143,339,572 2,786,157,419 1,582,686,333
(d)Other current Assets
2,53567,205 997,743,553 3,134,288,896
(e)Loans and advances
Net Current Assets 6052846 3026423
4. (a)Misc. Expenses 492324866 777678451 1600747175
(b)Profit & loss Account
Total 20,122,061,999 19,479,612,367 18,015,435,374
PAGE NO:
F.M. AUTO CLG OPTCL
INTERPRETATION:
CURRENT ASSETS:-Comparative balance sheet of the current financial year

of 2013 of OPTCL show that there is an increase and decrease of current assets
but as compare to previous financial year comparative balance sheet was
decreased of current assets in 2012 . In 2012 it was Rs.63063.11 which is
decrease to Rs.50793.73 in 2013 and was further decrease to Rs.44385.36 in
2013 which reveals that the liquidity position of the company is not good , the
reason behinds that economy is slow down.
FIXED ASSETS: - From the above data show that total fixed assets of 2013
have been increased as compare to other financial year like in2012 and 2011.
CAPITAL & RESERVE:- the capital has been increased to Rs.16007.00 as

compare to other financial year.
LONG TERM LOANS:- In the year 2011 the long-term loan was Rs.1433.39
cr. and in 2012 it was 228687.25 cr. as it was increased which is not good for
company and in 2013 it was Rs.15826.86 Cr. as it was decreased and in 2013 it
was Rs.4047.66 Cr. as it was decreased .which shows a positive sign that the
company is recovery from its past deficits.
PAGE NO:
F.M. AUTO CLG OPTCL
COMPARATIVE INCOME STATEMENT
Particulars 2010 2011 Amount of % Increase or

Decrease
Net sales 39975.58 67892.95 27917.37 69.83%
Add=Other Income 2821.03 3684.47 863.44 30.60%
Total 42796.61 71577.42 28780.81 67.25%
Less=Operating expenses 23999.88 52776.66 28776.78 119.90%
EBIT 18796.73 18800.76 4.03 .02%
Less=Depreciation 10854.85 10982.41 127.56 1.17%
EAD 7941.88 7818.35 (123.53) (1.5%)
Less=Intrest& Finance charges 11065.54 9724.54 (1341.0) (12.11%)
Net prior period income/exp. 2758.67 75.90 (2682.77) (97.24%)

EBT -(364.99) -(1830.29) 1465.30 401.4%
Less=Tax 21.13 23.96 2.83 13.39%
EAT
-(386.12) -(1854.25) 1468.13 380.22%

Decrease
Net sales 67892.95 30516.27 (37376.68) (55.05%)
Add= Other Income 3684.47 13662.18 9977.71 270.80%
Total 71577.42 44178.45 (27398.97) (38.27%)
Less= Operating expenses 52776.66 34984.56 (17792.10) (33.71%)
EBIT 18800.76 9193.89 (9606.87) (51.09%)
Less= Depreciation 10982.41 10803.34 (179.07) (1.6%)
EAD 7818.35 (1609.45) (9427.80) (79.41%)
Less=Intrest& Finance charges 9724.54 5416.01 (4308.53) (44.30%)
Net prior period income/exp. 75.90 (111.72) (187.62) (47.19%)

-(1830.29) -(7137.18) (8967.47) 289.94%
EBT 23.96 23.93
Less=Tax
EAT
-(1854.25) -(7137.18) 5282.93 284.94%
PAGE NO:
F.M. AUTO CLG OPTCL

Decrease
Net sales 30516.27 40519.14 10002.87 32.77%
Add= Other Income 13662.18 2550.68 (11111.50) (81.33%)
Total 44178.45 43069.82 (1108.63) (2.5%)
Less= Operating expenses 34984.56 27213.85 (7770.71) (22.2%)
EBIT 9193.89 15855.97 6662.08 72.46%
Less= Depreciation 10803.34 12233.79 1430.45 13.24%
EAD (1609.45) 3622.18 5231.63 (125.05%)
Less=Interest&Finance charges 5416.01 4243.77 (1172.24) (21.64%)
Net prior period income/exp. (111.72) (651.52) 763.24 (483.17%)

-(7137.18) -(1273.12) 5864.06 (82.16%)
EBT
Less=Tax
EAT
-(7137.18) -(1273.12) 5864.06 (82.16%)
PAGE NO:
F.M. AUTO CLG OPTCL
INTERPRETATION:
SALES AND EXPENDITURE:-
Comparative income statement shows that there has been decrease in net sales
in the current final year 2013 as compare to previous final year i.e Rs.10002.87
with a percentage of 32.77%
Although the operating expenses has decreased by 22.2%.
CASH FLOW STATEMENT
Other current asset (14,398,325) (24,471,317)
Loans & advances (2,725,085,618) 246,076167
Current liabilities 428,803,928 420,127,401
Provisions 3,523,100,656 473,652,124
Net working capital change..(B) 1,163,735,296 821,929,662
Cash generated from operation..(A+B) 3,049,718,374 3,076,560,656
Cash flow from investing activities
Capital expenditure(CAPEX) (916,837,432) (1,039,180,694)
Interest received.. Revenue 69,009,008 50,360,383
Cash generated from financial activities
Proceeds from secured loan 1,059,633,683 1,026,695,328
Proceeds from un secured loan 69,582,984 386,601,393
Interest paid 877,089,752 831,911,252
PAGE NO:
F.M. AUTO CLG OPTCL
Proceeds from share capital 230,555,000
Cash flow from financial activities..(D) (1,785,751,383) (2,245,207,973)
Net cash generated from all 416,138,567 157,395,628

activities..(A+B+C+D)
Cash and cash equivalent at beginning at the 490,881,183 648,276,812
year
Cash and cash equivalent at the end of year 907,019,750 490,881,184
PAGE NO:
F.M. AUTO CLG OPTCL
FINDINGS & SUGGESTIONS:-

 The major finding is that sundry debtors are increasing year to
year. Although sundry debtors is a part of current asset & current
assets increases due to increases in sundry debtors but the
receivable cost of financing receivables & bad debt will increased
from year to year.
 The evidence from the study suggests that current liabilities
&provisions are kept more than required as a result it decreases to
working capital .So management should pay an active part in
maintaining the provision because provisions are more than the
current liabilities .So the management should take care of it.
 For improvement of organization’s profitability, much emphasis is
needed to improve the better working capital management by
decreasing the current liabilities through reducing of unplanned
overhead expenses.
 One of the most significant finding to emerge from the study is that
the management should try to purchase its fixed assets from long
term sources not from current assets.
 The finding of this study suggests that OPTCL holding consumer
deposits from GRIDCO period. So the management should plan for
its proper utilization or they can reduce the liability.
PAGE NO:
F.M. AUTO CLG OPTCL
CONCLUSION
After critically examining the various financial aspects relating to
FINANCIAL STATEMENT ANALYSIS OF ORISSA POWER
TRANSMISSION CORPORATIONLIMITED (OPTCL), I have reached into
the conclusion that, this company is a pioneer in transmission of power not only
in the state Orissa but also to its neighbor states.There is a satisfactory
management of liquidity position of the company .During the 2012-13 it is
satisfactory. But 2010-11 there is an increase in total current liabilities&
decrease in total current assets which leads to decrease in the working capital of
company. However, the current status of the company in managing working
capital is satisfactory, which is evident from managing the services rendered
within Orissa in treating electricity.
PAGE NO:
F.M. AUTO CLG OPTCL
BIBLIOGRAPHY
1. Financial management-R K SHARMA & SASHI K GUPTA

2. Financial management-I M PANDEY
3. Financial management-M Y KHAN &P K JAIN
4. Annual Report of OPTCL
5. Cases & Problems On Financial Management -- Rao, A. P.
Everest
6. Cases In Financial Management -- Pandey, I/ Bhat, R. TMH
7. Financial Management- Inamdar, S. M. Everest
8. Financial Management - Kishore, R. M. Taxman Allied Service
9. Financial Management-- Kuchhal, S. C. Chaitanya
10.Financial Management - Kulkarni, M. A. Career
11.Financial Management - I. M. Vikas
12.Website of OPTCL
WWW.OPTCL.COM
WWW.OPTCL.IN
WWW.OPTCL.CO.INs
PAGE NO:

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F.M.

AUTO CLG OPTCL

FOR THE PARTIAL FULFILMENT OF MASTER DEGREE OF

Under the Guidance

Corporate Guide Faculty Guide

Clg roll no :PC-13 -56

CERTIFICATE FROM THE CORPORATE GUIDE

To the best of my knowledge and belief the thesis:

DATE Signature of the corporate guide

CERTIFICATE BY THE FACULTY GUIDE

This is to certify that the project work entitled FINANCIAL

To the best of my belief and knowledge this is an original piece of

DATE Signature of the internal guide

I do here by declare that the project study entitled “FINANCIAL

NAME: MONALISHA BEHERA

CLASS ROLL NO: PC13056

4th SEM,2nd YEAR

MASTER OF COMMERCE (2013-2015)

I am thankful to the management and staff of OPTCL for the co-operation

NAME: MONALISHA BEHERA

CLASS ROLL NO: PC13056

4th SEM,2nd YEAR

MASTER OF COMMERCE (2013-2015)

Project Title: Financial Statement Analysis

Company Name: ORISSA POWER TRANSMISSION CORPORATION

The training at OPTCL involved the day to day working at corporate

Financial analysis which is the topic of this project refers to an

During the summer training period at OPTCL, I had close connection

OBJECTIVE OF THE STUDY

Types of data which helped to prepare this report:

1. The beginning and history of the OPTCL.

2. Numbers of staff working for different departments.

3. The mission & vision of the company.

5. Other company related information.

C) Printed and Digital Sources:

These files consist of:

1. Annual report of the company

2. Financial balance sheets

5. Different reports prepared by Finance Department

LIMITATION OF THE STUDY:-

1. Due to shortage of time I cannot prepare any other things.

INTRODUCTION AND REVIEW LITERATURE

About the Topic:-

FINANCIAL STATEMENT ANALYSIS

Financial statements are summaries of the operating, financing, and

ACCOUNTING PRINCIPLES AND ASSUMPTIONS

The accounting data in financial statements are prepared by the firm‘s

Transactions are recorded at historical cost. Therefore, the values shown in

The statements are recorded for predefined periods of time. Generally,

Statements are prepared using accrual accounting and the matching

It is assumed that the business will continue as a going concern. The

Full disclosure requires providing information beyond the financial

accompanying the financial statements. An analysis of financial statements is

Statements are prepared assuming conservatism. In cases in which more

There are three basic financial statement:

Cash Flow statement

THE BALANCE SHEET

Liabilities are obligations of the business. They represent commitments to

Accrued expenses, which are obligations such as wages and salaries

Current portion of long-term debt or the current portion of capital

Short-term loans from a bank or notes payable within a year.

pay specific retirement benefits, whereas post-retirement benefits include any

The number of shares authorized by the shareholders.

The operating decisions of the company—those that apply to production and