A STUDY ON

RATIO ANALYSIS IN NTPC LIMITED RAMAGUNDAM

Submitted in partial fulfillment of the requirements of MASTER OF BUSINESS ADMINISTRATION

By

D.CHARAN KUMAR (Roll no. 2225110106)

GITAMUNIVERSITY HYDERABAD CAMPUS

DECLARATION
In this regard, I have undergone my summer internship at Finance Department, of NTPC Administrative Building. It is difficult to say to what extant this report will help in formulating the policies and strategies by management. I hope that the report will provide some basic thinking and framework for different cost related policies. I have much pleasure in submitting the report on RATIO ANALYSIS OF POWER PLANT. Organization always wants to minimize the cost and increase the profit and increase efficiency. This report can be helpful to the organization for their policies to reduce cost and to me in learning through experience in organizational work culture.

D.CHARAN KUMAR
(2225110106)

CERTIFICATE

This is to certify that Mr. D. Charan Kumar is a student of MASTER OF BUSINESS ADMINISTRATION Hall Ticket No: 2225110106. The project report titled Ratio Analysis in NTPC LTD., RAMAGUNDAM A case study being submitted by him is a bonafide work done by him under my supervision. It is a original work carried out by him and it was not submitted to any Degree or Diploma to any University or Institute earlier. Hence may be agreed for evaluation .

ACKNOWLEDGEMENT
A live and meaningful exposure to the activities of a major industrial set up in the form of project studies is a vital training activity which the student undergoing MBA studies are required to undertake as part of their training curriculum, during their summer vacations. This activity offers an opportunity to the students to interface what they learn in classroom, to what practically happens in the actual day-to-day working environments of the business of management. During the phase of summer training, I was offered the opportunity to undertake Ratio analysis of power plant at NATIONAL THERMAL POWER CORPORATION (NTPC), Ramagundam. I acknowledge my gratitude and thanks to Mr.S.S.PrasadRao, Director, Gitam Hyderabad Business Sch ool, for every kindly exploring and making available this opportunity of summer training at NTPC, Ramagundam. I am grateful to, Shri K. Narayanan, DGM (F&A), Mr.E.Nandakishore DGM (HR-EDC), Mr. P.M.G.V.Srinivas, Sr.Mgr (HR-EDC) NTPC who was enough to permit my training to NTPC. I am deeply indebted to Shri M. Sudhir Ranjan, Manager (F&A) my project guide. Who in spite of their busy schedule, were always there to guide me and arrange for the requisite resources, whenever needed. I am grateful to my principal Mr.Anjaneyulu and Prof.Thomas Reddy (HOD ECE
DEPT) for having extended the cooperation in my project.

Thanks are also to and other members of the department for their valuable guidance & help during training and motivating me at time for completion of project. I am also thankful to my colleagues for their suggestions incorporated together with their precious time to help me during every course of my project and encourage me to work hard, which helped me a lot. Last but not least, I am thankful to all those who directly or indirectly lend me a helping hand at the time of need in completing this project successfully.
D.CHARAN KUMAR (2225110106)

PREFACE
Management is a tool which shapes our efforts in a systematic way to facilitate the achievement of certain pre-determined goals. In respect to this upcoming management concern, MBA may be considered as stepping-stone to such concern and summer training is an integral part of MBA curriculum. Summer training links the theoretical inputs and their practical a pplications, which are essential to keep pace with the dynamic environment. Realizing that practical experience is as important as academic for all round development of management personnel, as a part of the course curriculum for Post Graduate Diploma in Entrepreneurship and business Management, we have to undergo practical training for 8 weeks as summer internship. The major objective of the training is to make students familiar with the organization culture and practical work environment. Moreover it als o provides in depth knowledge of the topic assigned to them and links the theoretical inputs and their practical applications, which are essential to keep pace with the dynamic environment.

CONTENTS
CHAPTER 1 INTRODUCTION CHAPTER 2 ORGANIZATION PROFILE CHAPTER 3
THEORIOTICAL FRAME WORK OF RATIO ANALYSIS 44 64 05 43

PAGES
01 04

CHAPTER 4 ANALYSIS AND INTERPRETATION CHAPTER 5 CONCLUSIONS AND SUGGESTIONS CHAPTER 6 BIBILOGRAPHY
85 80 84 64 79

ABSTRACT

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

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

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

y y y

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

CHAPTER 1 INTRODUCTION

CHAPTER - 2

ORGANIZATION PROFILE

CHAPTER 3 THEORITICAL FRAME WORK OF RATIO ANALYSIS

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

CHAPTER 5 CONCLUSIONS AND SUGGESTIONS

CHAPTER - 6 BIBILOGRAPHY