A STUDY ON
RATIO ANALYSIS
IN
NTPC LIMITED – RAMAGUNDAM
Submitted in partial fulfillment of the requirements of
“MASTER OF BUSINESS ADMINISTRATION”
By
[Link] 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.
[Link] 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 [Link], Director,
Gitam Hyderabad Business School, 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), [Link] DGM
(HR-EDC), Mr. [Link], [Link] (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 [Link] and [Link] 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.
[Link] 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 applications,
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 also 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 PAGES
INTRODUCTION 01 – 04
CHAPTER – 2
ORGANIZATION PROFILE 05 – 43
CHAPTER – 3
THEORIOTICAL FRAME WORK OF RATIO ANALYSIS 44 – 64
CHAPTER – 4
ANALYSIS AND INTERPRETATION 64 – 79
CHAPTER – 5
CONCLUSIONS AND SUGGESTIONS 80 – 84
CHAPTER – 6
BIBILOGRAPHY 85
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.
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
