COMPANY PROFILE

NTPC Limited is the largest thermal power generating company of India. A public

sector company, it was incorporated in the year 1975 to accelerate power development

in the country as a wholly owned company of the Government of India. At present,

Government of India holds 89.5% of the total equity shares of the company and the

balance 10.5% is held by FIIs, Domestic Banks, Public and others. Within a span of 31

years, NTPC has emerged as a truly national power company, with power generating

facilities in all the major regions of the country.

National Thermal Power Corporation is the largest power generation company in

India. The Forbes Global 2000 ranking for 2005 ranks it as the 5th leading company in

India and the 486th leading company in the world. It is a public listed (Bombay Stock

Exchange) Indian public sector company, with majority shares owned by the

Government of India. At present, Government of India holds 89.5% of the total equity

shares of the company and the balance 10.5% is held by FIIs, Domestic Banks, Public

and others. NTPC ranks amongst the top five companies, in terms of market

capitalisation.

NTPC's core business is engineering, construction and operation of power

generating plants and also providing consultancy to power utilities in India and

abroad. As on date the installed capacity of NTPC is 26, 404 MW through its 14
coal based (21,395 MW), 7 gas based (3,955 MW) and 4 Joint Venture Projects

(1,054 MW).

From the above graph it’s been clear that NTPC is creating that leading benchmark

in all over the country, like above graph is dictating that the intensive and

remarkable growth covered by NTPC was started in year 1986-87 from 3000MW

with 20000BU and goes to inconsistent growth in year 2006-07 by 30000MW with

200000BU. This shows the effective installed capacity is leading a terrific

generation of power.
NTPC’s core business is engineering, construction and operation of power

generating plants. It also provides consultancy in the area of power plant

constructions and power generation to companies in India and abroad. As on date

the installed capacity of NTPC is 27,904 MW through its 15 coal based (22,895

MW), 7 gas based (3,955 MW) and 4 Joint Venture Projects (1,054 MW). NTPC

acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL). This

JV company operates the captive power plants of Durgapur (120 MW), Rourkela

(120 MW) and Bhilai (74 MW). NTPC also has 28.33% stake in Ratnagiri Gas &

Power Private Limited (RGPPL) a joint venture company between NTPC, GAIL,

Indian Financial Institutions and Maharashtra SEB Holding Co. Ltd. The present

capacity of RGPPL is 850MW.

NTPC’s share on 31 Mar 2007 in the total installed capacity of the country was

20.18% and it contributed 28.50% of the total power generation of the country

during 2006-07.

NTPC has set new benchmarks for the power industry both in the area of power

plant construction and operations. It is providing power at the cheapest average

tariff in the country. With its experience and expertise in the power sector, NTPC

is extending consultancy services to various organisations in the power business.

NTPC is committed to the environment, generating power at minimal

environmental cost and preserving the ecology in the vicinity of the plants. NTPC

has undertaken massive afforestation in the vicinity of its plants. Plantations have

increased forest area and reduced barren land. The massive afforestation by NTPC

in and around its Ramagundam Power station (2600 MW) have contributed

reducing the temperature in the areas by about 3°c. NTPC has also taken proactive

steps for ash utilisation. In 1991, it set up Ash Utilisation Division to manage

efficient use of the ash produced at its coal stations. This quality of ash produced is

ideal for use in cement, concrete, cellular concrete, building material.

been established in NTPC with the assistance of United States Agency for

International Development. (USAID). Cenpeep is efficiency oriented, eco-friendly

and eco-nurturing initiative - a symbol of NTPC's concern towards environmental

protection and continued commitment to sustainable power development in India.

As a responsible corporate citizen, NTPC is making constant efforts to improve the

socio-economic status of the people affected by the projects. Through its

Rehabilitation and Resettlement programmes, the company endeavors to improve

the overall socio-economic status of Project Affected Persons.

NTPC was among the first Public Sector Enterprises to enter into a Memorandum

of Understanding (MOU) with the Government in 1987-88. NTPC has been Placed

under the 'Excellent category' (the best category) every year since the MOU system

became operative.

Recognising its excellent performance and vast potential, Government of the India

has identified NTPC as one of the jewels of Public Sector ‘Navratnas’- a potential

global giant. Inspired by its glorious past and vibrant present, NTPC is well on its

way to realise its vision of being “A world class integrated power major, powering

India’s growth, with increasing global presence”.

“TO BE ONE OF THE WORLD’S LARGEST AND BEST POWER UTILITIES,

POWERING INDIA’S GROWTH”.

MISSION
MAKE AVAILABLE RELIABLE, QUALITY POWER IN INCREASINGLY

LARGE QUALITIES AT APPROPRIATE TARIFFS, AND ENSURE TIMELY

REALISATION OF REVENUES.

SPEEDILY PLAN AND IMPLEMENT POWER PROJECTS, WITH

CONTEMPORARY TECHNOLOGIES .

IMPLEMENT STRATEGIC DIVERSIFICATIONS IN THE AREAS OF R&M,

HYDRO,LNGAND NON CONVENTIONAL AND ECOFRIENDLY FUELS AN

EXPLORE NEW AREAS LIKE TRANSMISSION, INFORMATION

TECHNOLOGY ETC.,

PROMOTE CONSULTANCY AND MAKE PRUDENT ACQUISITIONS

CONTINUOUSLY DEVELOP COMPETENT HUMAN RESOURCES TO MATCH

WORLD STANDARDS.

BE A RESPONSIBLE CORPORATE CITIZEN WITH TRUST ON

ASH UTILISATION .

CORE VALUES

(COMIT)

 CUSTOMER FOCUS

 ORGANISATIONAL PRIDE

 MUTUAL RESPECT AND TRUST

 INITIATIVE AND SPEED

 TOTAL QUALITY

Corporate objectives

 To add generating capacity within prescribed time and cost.

 To operate and maintain power stations at high availability ensuring

minimum cost Of generation.

 To maintain the financial soundness of the company by managing the

financial

Operations in accordance with good commercial utility practices.

 To develop appropriate commercial policy leading to remunerative tariffs

and
 Minimum receivables.

 To function as a responsible corporate citizen and discharge social

responsibility, In respect of environment protection and rehabilitation.

 The corporation will strive to utilize the ash produced at its stations to the

Maximum extent possible through production of ash bricks building

materials etc.

 To adopt appropriate human resources development policy leading to

creation of Team of motivated and competent power professional.

 To introduce, assimilate and attain self sufficiency in technology, acquire

expertise in utility management practices and to disseminate knowledge

essentially as a Contribution to other constituents of the power sector in the

country.

 To develop research & development (R&D) for achieving improved plant

Reliability.

 To expand the consultancy operations and to participate in ventures abroad.

In the management of working capital, the firm is faced with two key problems:

1. First, given the level of sales and the relevant cost considerations, what are the

optimal amounts of cash, accounts receivable and inventories that a firm should

choose to maintain?

2. Second, given these optimal amounts, what is the most economical way to

finance these working capital investments? To produce the best possible results,

firms should keep no unproductive assets and should finance with the cheapest

available sources of funds. Why? In general, it is quite advantageous for the firm

to invest in short term assets and to finance short-term liabilities.

The objectives of this project were mainly to study the inventory, cash and

receivable at NTPC Ltd., but there are some more and they are –

The main purpose of our study is to render a better understanding of

the concept “Working Capital Management”.

To understand the planning and management of working capital at NTPC

Ltd.

To measure the financial soundness of the company by analyzing various

ratios.

To suggest ways for better management and control of working capital at the

concern.