A

PROJECT REPORT ON
ANALYSIS OF FINANCIAL STATEMENTS

G.L.BAJAJ NSTITUTEOFM A N A G E M E N T AND RESEARCH

PRESENTEDBY
ROHIT KUMAR
NATIONALTHERMALPOWER CORPORATION

OBJECTIVE OF THE STUDY

• The study aimed at:
• ₪To gain the overall idea about the organization.
• ₪To gain a first-hand knowledge about the structure and the functioning of the
finance department and the return on investment policy.
• ₪To gain and enhance different managerial skills.
• ₪To find out the financial performance of the organization.
• ₪To find out the importance of finance in business.
 NATIONALTHERMALPOWER CORPORATION
INDUSTRY PROFILE
BOARD OF DIRECTORS
• The Management of the Company is vested with the Board of Directors. In terms of the
Articles of Association of the Company the Board of Directors can have minimum four
Directors and maximum twenty Directors. The Management of the Company is vested with the
Board of Directors.
• 1.SHRI GURDEEP SINGH Chairman & Managing Director (DIN: 00307037)
• 2.Shri S. C. Pandey Director (Projects) (DIN:03142319)
• 3.Shri Kulamani Biswal Director (Finance) (DIN:03318539)
INDEPENDENT DIRECTORS
1.SHRI RAJESH JAIN INDEPENDENT DIRECTOR(DIN:00103150)
2.DR. GAURI TRIVEDI INDEPENDENT DIRECTOR (NON-OFFICIAL PART-TIME
DIRECTOR)(DIN:06502788)

Vision
To be the world’s largest and best power producer, powering India’s growth.
Mission
“Develop and provide reliable power, related products and services at competitive
prices, integrating multiple energy sources with innovative and eco- friendly
technologies and contribute to society.”
COREVALUES–BECOMMITTED
B -Business Ethics.
-Environmentally & Economicall Sustainable.
-Customer Focus.
-Mutual Respect & Trust.
 RESEARCH M ETHODOLOGY
• The information was collected from various source which are listed
below:
• ₪For the official document.
• RESEARCH METHODOLOGY
• Plan of study:- A proper and systematic approach is essential project
work. Proper planning should be conducting the data collection, completion
and presentation of the project. Each and every step must be so planned that it
leads to the next step automatically.
 DATA ANALYSIS
Ratio Meaning & Technique
Classification of Ratios & interpretation
1.Grossprofitratio(GPratio):-Gross profit ratio is the ratio of gross profit to net
sales expressed as a percentage. It expresses the relationship between gross profit
and sales.
• GROSS PROFIT RATIO = (GROSS PROFIT /NET SALES*100)
gross profit ratio

70,506.80 73,246.05 72,018.93

80,000.00 65,673.93 62,052.23
70,000.00
60,000.00
net sales

50,000.00
40,000.00
30,000.00 17292.32 15654.78 17761.17 17000.77 13557.19
20,000.00
10,000.00 24.5 21.4 24.7 25.9 21.8
0.00
1 2 3 4 5
Axis Title
Interpretation
The Gross profit of NTPC was 24.5% in 2016. It had fallen up by 21.4%. In 2015. In 2014 it had
increase to 24.7%. But in 2013 had gone to25.9% .which Shows Company earned profit. In year
2012 it had fallen up to 21.8%.

2.Net profit ratio:

• Net profit ratio is the ratio of net profit (after taxes) to net sales. It is expressed
as percentage.
• Net profit ratio = (Net Profit/Net Sales *100)
net profit ratio

70,506.80 73,246.05 72,018.93

80000 65,673.93 62,052.23
60000

40000 14.9
14.0 19.2
14.5 15.2
10,242.91 10,290.86 10,974.74 12,619.39 9,223.73
20000
2016 2015 2014 2013 2012
0
1 2 3 4 5
YEAR net profit net sales ratio
Interpretation:
The net profit ratio of NTPC was 14.5% in 2016 it had fallen up by 14% in 2015. Again in 2014 it
had increase to 15.2%. Further it had increase to 19.2% in2013 and again in year 2012 it had fallen
down up to 14.9% which shows the loss.
• 3.Earnings per Share (EPS) Ratio:-
• Definition: Earnings per share ratio (EPS Ratio) are a small variation of
return on equity capital ratio and are calculated by dividing the net profit
after taxes and preference dividend by the total number of equity shares.
Formula of Earnings per Share Ratio: The formula of earnings per share is:
• Earnings per Share= (Net profit after tax - Preference
dividend)*10/No. of Equity share.
 EPS

14000
12619.39

12000
10974.74
10242.91 10290.86

10000 9223.73

8245.46 8245.46 8245.46 8245.46 8245.46

8000

6000

4000

2016 2015 2014 2013 2012

2000

12.4 12.5 13.3 15.3 11.2

0
1 2 3 4 5
Column1 2016 2015 2014 2013 2012
PAT 10242.91 10290.86 10974.74 12619.39 9223.73
NO OF SHARE 8245.46 8245.46 8245.46 8245.46 8245.46
RATIO 12.4 12.5 13.3 15.3 11.2
Interpretation:
NTPC EPS was Rs. 12.4 in 2016. Which has raises to Rs.12.5 in 2015 further in the year 2014. It has increased to Rs 13.3. In
2013 the ratio gone to Rs 15.32 and in 2012 follow down to Rs11.2 which shows A higher value of EPS in these years shows
that the company is trying to maintain its net profit available to equity shareholder of NTPC, which also assure efficient
utilization of equity capital.

Operating ratio: -Operating ratio is the ratio of cost of goods sold plus operating
expenses to net sales. It is generally expressed in percentage. It measures the cost of
operations per dollar of sales. This is closely related to the ratio of operating profit to net
sales.

operating profit ratio

80000 70,506.80 73,246.05 72,081.93

65,673.93
70000 60036.8 62,052.23
55849.75 56228.38
60000 50566.18 49954.64
50000
40000
30000
20000
10000 79.2 82.0 78.0 77.0 80.5
0
1 2 3 4 5
COGS+Operating exe 55849.75 60036.8 56228.38 50566.18 49954.64
net sales 70,506.80 73,246.05 72,081.93 65,673.93 62,052.23
COGS+Operating exe net sales operating ratio
operating ratio 79.2 82.0 78.0 77.0 80.5
Operating ratio = (Cost of goods sold+Operating expenses/Net
Sales)*100
Interpretation:
In The graph Operating ratio of NTPC was 79.2% in 2016. It had
increase by 82%.in 2015. In 2014 it had gone to 78%. Further it had
fallen to 77% in 2013 and again in year 2012 it had increase up to
80.5% which shows company earned maximum profit.
 FINDING
NTPC is a key organization in India as far as the supply of power is
concerned. After successfully conducting this project work, it can be said that
the financial health of NTPC is sound and it appears positive in accordance
with its balance sheet and profit & loss A/c which are available to me. Some
other finding there are
1.We can easily found that company net profit ratio in 2012-2016 was 20 this
ratio fallen compare to previous year means company profit decrease.
2.Return on equity capital ratio compare to previous year ratio .90 which shows
the company regularly dividend paid.
3.Company earning per ratio increase year by year.
4.Company current ratio is very good which shows highly liquidity available.
SUGGESTION & RECOM M ENDATIONS
• ₪Company should try to get ultra-mega power plant project.
• ₪They should try to improve the operational efficiency and
financial performance of state utilities.

• ₪Company has sound data system from where they can start the
cost cut methods at different measures to improve their performance.
CONCLUSION
• The operational inefficiency and financial losses often lead to poor
quality of supply and underinvestment.
• The Electricity Act 2003 led to deepening of the reform process by
enabling competition in the wholesale electricity market and retail
electricity supply, in phases.
• The emerging competition in the bulk power market and phased direct
access to large consumers is aimed at reducing the risks associated
with sales to financially weak state utilities
Thank you