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This report provides an analysis and evaluation of the current and past profitability,
liquidity and financial stability of NTPC Ltd. Method of analysis is ratio analysis
which includes ratios such as liquidity, solvency profitability and turnover ratios. Other
calculations include rates of return on Shareholders Equity and Total Assets and earnings
per share to name a few. All calculations can be found in the appendices.
NTPC Ltd is a global giant in power sector. It actually does not have tough competition
in India. While NTPCs generates around 39000 MW its competitors like Reliance Power
and Tata Powers generation is around 2500 MW. Clearly the capacity and performance
are not comparable. That is why this project does not include comparative financial
analysis of NTPC Ltd and its competitors.
Source of primary data was regular interaction with the officials at NTPC Ltd. Secondary
Data includes the information gathered from various Journals & periodicals, annual
reports and websites. The sampling procedure employed for this is judgmental sampling a
convenience sampling technique in which elements are based on the judgment of
researcher.
In financial analysis, a ratio is used as a benchmark for evaluation the financial position
and performance of a firm. The absolute accounting figures reported in the financial
statements do not provide a meaningful understanding of the performance and financial
position of a firm.
Liquidity ratios measure the firms ability to meet current obligations. Liquidity ratios,
by establishing a relationship between cash and other current assets to current
obligations, provide a quick measure of liquidity.
Solvency ratios show the proportions of debt and equity in financing the firms assets
there should be an appropriate mix of debt and owners equity in financing the firms
assets.
Turnover ratios reflect the firms efficiency in utilizing its assets. Activity ratios are
employed to evaluate the efficiency with which the firm manages and utilizes its assets.
Profitability ratios measure overall performance and effectiveness of the firm .The
profitability ratios are calculated to measure the operating efficiency of the company.
Results of data analyzed show that all ratios are competent and above industrys average.
Ratio analysis was done for past five financial years i.e. from March 2007-2011. Since
NTPC Ltd. belongs to power sector industry where gestation period for new projects is
always more than 3-5 years, therefore a part of capital gets blocked in such projects.
Thus, relationship cannot be established between that capital and sales (since it is not
generating any sales). That is the reason, such capital do not form part of capital
employed for the purpose of calculation in different financial statements. We have taken
the figures of capital employed exactly the way it is provided in Annual Report.
Detailed comparisons and analysis has been done and necessary conclusions have been
drawn.
NTPC Ltd as a company is in its growth stage. In order to achieve its ambitious capacity,
additional targets, the company has to build on its capabilities and leverage its expertise
in power project execution. Accordingly, NTPC Ltd. has revised its delegation of powers
and has empowered its regions and projects to enable faster decision making. The total
income of NTPC Ltd. For the year 2010-11 increased by 16.59% to Rs 57,399.49 crores
from Rs 49,233.88 crores during 2009-10
In order to strengthen its competitive advantage in power generation business, the
company is continuing to plan, to diversify its portfolio to emerge as an integrated power
major, with presence across entire energy value chain through backward and forward
integration into areas such as coal mining, manufacturing activities, power trading,
distribution etc. NTPC Ltd. has always discharged its social responsibility as a part of its
Corporate Governance Philosophy. It follows the global practice of addressing CSR
issues in an integrated multi stake holder approach covering the environment and social
aspects.
The company is well on its way to becoming an Integrated Power Major, having
entered Hydro Power, Coal Mining, Power Trading, Equipment Manufacturing and
Power Distribution. NTPC has made long strides in developing its Ash Utilization
business. In its pursuit of diversification, NTPC has also developed strategic alliances and
joint ventures with leading national and international companies.
THEORECTICAL BACKGROUND
Financial analysis is the process of identifying the financial strengths and weaknesses of
the firm and establishing relationship between the items of the balance sheet and profit &
loss account. Financial ratio analysis is a fascinating topic to study because it can teach us
so much about accounts and businesses. When we use ratio analysis we can work out
how profitable a business is, we can tell if it has enough money to pay its bills and we can
even tell whether its shareholders should be happy! Ratio analysis can also help us to
check whether a business is doing better this year than it was last year; and it can tell us if
our business is doing better or worse than other businesses doing and selling the same
things. In addition to ratio analysis being part of an accounting and business studies
syllabus, it is a very useful thing to know anyway! The overall layout of this section is as
follows: We will begin by asking the question, what do we want ratio analysis to tell us?
Then, what will we try to do with it? This is the most important question, funnily enough!
The answer to that question then means we need to make a list of all of the ratios we
might use: we will list them and give the formula for each of them. Once we have
discovered all of the ratios that we can use we need to know how to use them, who might
use them and what for and how will it help them to answer the question we asked at the
beginning? At this stage we will have an overall picture of what ratio analysis is, who
uses it and the ratios they need to be able to use it. All that's left to do then is to use the
ratios; and we will do that step- by-step, one by one
Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the
indicated quotient of two mathematical expressions and the relationship between two
or more things. In financial analysis, a ratio is used as a benchmark for evaluation the
financial position and performance of a firm. The absolute accounting figures reported in
the financial statements do not provide a meaningful understanding of the performance
and financial position of a firm. An accounting figure conveys meaning when it is related
to some other relevant information. For example, an Rs.5 core net profit may look
impressive, but the firms performance can be said to be good or bad only when the net
profit figure is related to the firms Investment. Financial ratio analysis can reveal much
about a company and its operations. However, there are several points to keep in mind
about ratios. First, a ratio is a "flag" indicating areas of strength or weakness. One or even
several ratios might be misleading, but when combined with other knowledge of a
company's management and economic circumstances, financial analysis can tell much
about a corporation. Second, there is no single correct value for a ratio. The observation
that the value of a particular ratio is too high, too low, or just right depends on the
perspective of the analyst and on the company's competitive strategy. Third, financial
ratios are meaningful only when compared with some standard, such as an industry trend,
ratio trend, a trend for the specific company being analyzed, or a stated management
objective.
Use and significance of ratio analysis:The ratio is one of the most powerful tools of financial analysis. It is used as a device to
analyze and interpret the financial health of enterprise. Ratio analysis stands for the
process of determining and presenting the relationship of items and groups of items in the
financial statements. It is an important technique of the financial analysis. It is the way by
which financial stability and health of the concern can be judged. Thus ratios have wide
applications and are of immense use today.
Interpretation of Ratios:
The interpretation of ratios is an important factor. The inherent limitations of ratio
analysis should be kept in mind while interpreting them. The impact of factors such as
price level changes, change in accounting policies, window dressing etc., should also be
kept in mind when attempting to interpret ratios.
Key Ratios
Liquidity ratios
- short-term financial strength, measures the firms ability
to meet current obligations
Current Ratio:
Cash Ratio :
The ratio of a company's total cash and cash equivalents to its current
liabilities. The cash ratio is most commonly used as a measure of company
liquidity. It can therefore determine if, and how quickly, the company can
repay its short-term debt. A strong cash ratio is useful to creditors when deciding
how much debt, if any, they would be willing to extend to the asking party.
Quick Ratio
Quick ratio also called Acid-test ratio, establishes a relationship between quick,
or liquid, assets and current liabilities. An asset is a liquid if it can be converted
into cash immediately or reasonably soon without a loss of value. Cash is the
most liquid asset. Other assets that are considered to be relatively liquid and
included in quick assets are debtors and bills receivables and marketable
securities (temporary quoted investments). Inventories are considered to be less
liquid. Inventories normally require some time for realizing into cash; their value
also has a tendency to fluctuate. The quick ratio is found out by dividing quick
assets by current liabilities.
Solvency ratios
- long-term financial strength, shows the proportions of
debt and equity in financing the firms assets
Debt-Equity Ratio
A measure of a company's financial leverage calculated by dividing its total
liabilities by stockholders' equity. It indicates what proportion of equity and
debt the company is using to finance its assets. .The relationship describing the
lenders contribution for each rupee of the owners contribution is called debtequity (DE) ratio is directly computed by dividing total debt by net worth.
Proprietary ratio
Proprietary ratio refers to a ratio which helps the creditors of the company in
seeing that their capital or loans which the creditors have given to the company
are safe. Proprietary ratio highlights the financial position of the company and
therefore Proprietary ratio can be interpreted as good if it is high because a higher
proprietary ratio would imply that company has enough capital to repay its
creditors whenever any such demand is made by the creditors. A lower proprietary
ratio would imply that company is not in a position to pay all of its creditors and
therefore a low proprietary ratio is a cause of concern for the creditors of the
company.
Profitability ratios
- long term earning power, measures overall performance
and effectiveness of the firm
returns that a company is realizing from its capital employed. It is commonly used
as a measure for comparing the performance between businesses and for assessing
whether a business generates enough returns to pay for its cost of capital. The
main drawback of ROCE is that it measures return against the book value of
assets in the business. As these are depreciated the ROCE will increase even
though cash flow has remained the same. Thus, older businesses with depreciated
assets will tend to have higher ROCE than newer, possibly better businesses. In
addition, while cash flow is affected by inflation, the book value of assets is not.
Consequently revenues increase with inflation while capital employed generally
does not (as the book value of assets is not affected by inflation).
Earnings per Share (EPS)
The portion of a company's profit allocated to each outstanding share of common
stock. Earnings per share serve as an indicator of a company's profitability. The
profitability of the shareholders investments can also be measured in many other
ways. One such measure is to calculate the earnings per share. The earnings per
share (EPS) are calculated by dividing the profit after taxes by the total number of
ordinary shares outstanding.
Dividends per Share (DPS)
The the sum of declared dividends for every ordinary share issued. Dividend per
share (DPS) is the total dividends paid out over an entire year (including interim
dividends but not including special dividends) divided by the number of
outstanding ordinary shares. The net profits after taxes belong to shareholders.
But the income, which they will receive, is the amount of earnings distributed as
cash dividends. Therefore, a large number of present and potential investors may
be interested in DPS, rather than EPS. DPS is the earnings distributed to ordinary
shareholders dividend by the number of ordinary shares outstanding.
The payout ratio provides an idea of how well earnings support the dividend
payments. More mature companies tend to have a higher payout ratio.
Turnover ratios
- term of investment utilization, reflects the firms
efficiency in utilizing its assets
lower value of debt to equity ratio in the industry the return on capital is in the
moderately good condition.
CH-2
LITERATURE
REVIEW
LITERATURE REVIEW
Timo Salmi and Teppo Martikainen presented A Review of the Theoretical
and Empirical Basis of Financial Ratio Analysis This paper provides a critical
review of the theoretical and empirical basis of four central areas of financial ratio
analysis. The research areas reviewed are the functional form of the financial
ratios, distributional characteristics of financial ratios, classification of financial
ratios, and the estimation of the internal rate of return from financial statements. It
is observed that it is typical of financial ratio analysis research that there are
several unexpectedly distinct lines with research traditions of their own. A
common feature of all the areas of financial ratio analysis research seems to be
that while significant regularities can be observed, they are not necessarily stable
across the different ratios, industries, and time periods. This leaves much space
for the development of a more robust theoretical basis and for further empirical
research.
The paper aims to present the main financial ratios which provide a picture
about companys profitability, its financial position, use of its assets efficiency, its
long-term debt financing. Discussion is focused on: profitability ratios, short-term
financial ratios, activity ratios, long-term debt ratios or dividend policy ratios.
Also, will try to answer at the following main questions: What financial ratios
analysis tells us? What the users of these needs to know?
CH-3
INDUSTRY
PROFILE
INDUSTRY PROFILE
NTPC- A global giant in power sector
NTPC
Limited (formerly National
Thermal
Power
Corporation)
(BSE: 532555, NSE: NTPC) is the largest Indian state-owned electric utilities company
based in New Delhi, India. It is listed in Forbes Global 2000 for 2011 ranked it 348th in
the world. It is an Indian public sector company listed on the Bombay Stock Exchange in
which at present the Government of India holds 84.5% (after divestment the stake by
Indian government on 19th October, 2009) of its equity. With a current generating
capacity of 39,174 MW, NTPC has embarked on plans to become a 75,000 MW company
by 2017. It was founded on November 7, 1975.
Pursuant to a special resolution passed by the Shareholders at the Companys Annual
General Meeting on September 23, 2005 and the approval of the Central Government
under section 21 of the Companies Act, 1956, the name of the Company "National
Thermal Power Corporation Limited" has been changed to "NTPC Limited" with effect
from October 28, 2005. The primary reason for this is the company's foray into hydro and
nuclear based power generation along with backward integration by coal mining.
NTPC's core business is engineering, construction and operation of power generating
plants and providing consultancy to power utilities in India and abroad.
The total installed capacity of the company is 39,174 MW (including JVs) with 16 coal
based and 7 gas based stations, located across the country. In addition under JVs, 7
stations are coal based & another station uses naptha/LNG as fuel. The company has set
a target to have an installed power generating capacity of 1,28,000 MW by the year 2032.
The capacity will have a diversified fuel mix comprising 56% coal, 16% Gas, 11%
Nuclear and 17% Renewable Energy Sources(RES) including hydro. By 2032, non fossil
fuel based generation capacity shall make up nearly 28% of NTPCs portfolio.
NTPC has been operating its plants at high efficiency levels. Although the company has
17.75% of the total national capacity, it contributes 27.40% of total power generation due
to its focus on high efficiency.
NTPC has been operating its plants at high efficiency levels. Although the company has
19% of the total national capacity it contributes 29% of total power generation due to its
focus on high efficiency. NTPCs share at 31 Mar 2001 of the total installed capacity of
the country was 24.51% and it generated 29.68% of the power of the country in 200809.
Every fourth home in India is lit by NTPC. As at 31 Mar 2011 NTPC's share of the
country's total installed capacity is 17.75% and it generated 27.4% of the power
generation of the country in 201011.
NTPC became a Maharatna company in May, 2010, one of the only four companies to be
awarded this status.
In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as
fresh issue and 5.25% as offer for sale by Government of India. NTPC thus became a
listed company in November 2004 with the Government holding 89.5% of the equity
share capital. In February 2010, the Shareholding of Government of India was reduced
from 89.5% to 84.5% through Further Public Offer. The rest is held by Institutional
Investors and the Public.
At NTPC, People before Plant Load Factor is the mantra that guides all HR related
policies. NTPC has been awarded No.1, Best Workplace in India among large
organisations and the best PSU for the year 2010, by the Great Places to Work Institute,
India Chapter in collaboration with The Economic Times.
The concept of Corporate Social Responsibility is deeply ingrained in NTPC's culture.
Through its expansive CSR initiatives, NTPC strives to develop mutual trust with the
communities that surround its power stations.
Future Goals
The company has also set a serious goal of having 50000 MW of installed capacity by
2012 and 75000 MW by 2017. The company has taken many steps like step-up its
recruitment, reviewing feasibilities of various sites for project implementations etc. and
has been quite successful till date. NTPC will invest about Rs 20,000 crore to set up a
3,900-megawatt (MW) coal-based power project in Madhya Pradesh. Company will also
start coal production from its captive mine in Jharkhand in 201112, for which the
company will be investing about 18 billion. ALSTOM would be a part of its 660-MW
supercritical projects for Solapur II and Mouda II in Maharashtra. ALSTOM would
execute turnkey station control and instrumentation (C&I) for this project.
Power Burden
India, as a developing country is characterised by increase in demand for electricity and
as of moment the power plants are able to meet only about 6075% of this demand on an
yearly average. The only way to meet the requirement completely is to achieve a rate of
power capacity addition (implementing power projects) higher than the rate of demand
addition. NTPC strives to achieve this and undoubtedly leads in sharing this burden on
the country.
As per new corporate plan, NTPC envisages to have an installed capacity of 128 GW by
the year 2032 with a well diversified fuel mix comprising 56% coal, 16% gas, 11%
nuclear energy, 9% renewable energy and 8% hydro power based capacity.
As such, by the year 2032, 28% of NTPCs installed generating capacity will be based on
carbon free energy sources. Further, the coal based capacity will increasingly be based on
high-efficient-low-emission technologies such as Super-critical and Ultra-Super-critical.
Along with this growth, NTPC will utilize a strategic mix of options to ensure fuel
security for its fleet of power stations.
Looking at the opportunities coming its way, due to changes in the business environment,
NTPC made changes in its strategy and diversified in the business adjacencies along the
energy value chain. In its pursuit of diversification NTPC has developed strategic
alliances and joint ventures with leading national and international companies. NTPC has
also made long strides in developing its Ash Utilization business.
Hydro Power: In order to give impetus to hydro power growth in the country and
to have a balanced portfolio of power generation, NTPC entered hydro power
business with the 800 MW Koldam hydro project in Himachal Pradesh. Two more
projects have also been taken up in Uttarakhand. A wholly owned subsidiary,
NTPC Hydro Ltd., is setting up hydro projects of capacities up to 250 MW.
Renewable Energy: In order to broad base its fuel mix NTPC has plan of
capacity addition of about 1,000 MW through renewable resources by 2017.
Nuclear Power: A Joint Venture Company "Anushakti Vidhyut Nigam Ltd." has
been formed (with 51% stake of NPCIL and 49% stake of NTPC) for
Power Trading: 'NTPC Vidyut Vyapar Nigam Ltd.' (NVVN), a wholly owned
subsidiary was created for trading power leading to optimal utilization of NTPCs
assets. It is the second largest power trading company in the country. In order to
facilitate power trading in the country, National Power Exchange Ltd., a JV of
NTPC, NHPC, PFC and TCS has been formed for operating a Power Exchange.
Ash Business: NTPC has focused on the utilization of ash generated by its power
stations to convert the challenge of ash disposal into an opportunity. Ash is being
used as a raw material input by cement companies and brick manufacturers.
NVVN is engaged in the business of Fly Ash export and sale to domestic
customers. Joint ventures with cement companies are being planned to set up
cement grinding units in the vicinity of NTPC stations.
Subsidiaries
NTPC Electric Supply Company Ltd. (NESCL)
The company was formed on August 21, 2002. It is a wholly owned subsidiary company
of NTPC with the objective of making a foray into the business of distribution and supply
A subsidiary of NTPC under the name of Bharatiya Rail Bijlee Company Limited was
incorporated on November 22, 2007 with 74:26 equity contribution from NTPC and
Ministry of Railways, Govt. of India respectively for setting up of four units of 250 MW
each of coal based power plant at Nabinagar, Bihar. Investment approval of the project
was accorded in January, 2008. 90% power from this project is to be supplied to
Railways to meet the traction and non-traction power requirements.
NTPC, with a rich experience of engineering, construction and operation of around
35,000 MW of thermal generating capacity, is the largest and one of the most efficient
power companies in India, having operations that match the global standards.
Commensurate with our countrys growth challenges, NTPC has embarked upon an
ambitious plan to attain a total installed capacity of 128,000 MW by 2032. Towards this
end, NTPC has adopted a multi-pronged strategy such as Greenfield Projects, Brownfield
Projects, Joint Venture and Acquisition route. Apart from this, NTPC has also adopted the
Diversification Strategy in related business areas, such as, Services, Coal Mining, Power
Trading, Power Exchange, Manufacturing to ensure robustness and growth of the
company.
To broad-base the business and also to ensure growth, diversification in the areas related
to NTPC's core business of power generation such as Hydro power, Distribution, Trading,
Coal mining, LNG etc. have been identified as priority areas.
CH-4
COMPANY
PROFILE
COMPANY PROFILE
VISION AND MISSION
VISION
" To be the worlds largest and best power producer, powering Indias growth
MISION
"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"
SWOT ANALYSIS
STRENGTHS:
Power purchase agreements with customers like, North Delhi Power Ltd,
Himachal Pradesh State Electricity Board ,Punjab State Power Corporation etc
The company has kept with itself sufficient liquid funds to meet any kind of cash
requirement.
Employee-friendly personnel policies. NTPC is the only PSU ranked among best
employers in several prestigious surveys
Low project cost of NTPCs plants and efficient working capacity of plants.
WEAKNESSES:
Depleting raw materials.
Some of the Plant have become old and need investment in Renovation
&Modernization.
Lack of availability of skilled manpower.
Slow Environmental and forest clearances for projects and coal blocks.
Slow development of coal mines allocated to power Developers.
Projects like Hydro Projects are highly capital intensive and have long gestation
period.
OPPORTUNITIES:
THREATS:
Slow investment in Power sector. Although 100% FDI is permissible in power
sector yet share of FDI in power sector is hovering around 5%. The reason is lack
of politico-administrative support .
High AT&C / T&D Losses. These losses captures technical and commercial losses
and also losses due non-realization of billed amount. The main reason include
overloading of existing lines and substation equipments, poor repair and
maintenance ,theft and tampering etc.
Deteriorating Financials of state utilities. The book losses of SPUs have increased
significantly due to reasons like, inability to enhance operating efficiencies and
reduce AT&C losses adequately and increasing gap between cost and revenue as
tariff increase has not kept pace with cost increases.
Fuel constraint. About 65% of installed capacity as on 31.03.2011 uses fossil
fuel .The production of coal as well as gas has not kept pace with the demand.
Imports are done to meet shortfall.
Competition in many critical segments of the industry, especially in distribution
companies, is inadequate ,while state owned distribution companies continue to
underperform.
PESTLE ANALYSIS
POLITICAL FACTOR:
The Government of India has a mission of POWER FOR ALL BY 2012. This mission would require
that our installed generation capacity should be at least 2, 00,000 MW by 2012 from the present level of 1,
14,000 MW. The Indian government has set an ambitious target to add approximately 78,000 MW
of installed generation capacity by 2012. The total demand for electricity in India is expected to cross
950,000 MW by 2030.
ECONOMICAL FACTOR:
India is in the rising phase of its economy curve, the economy of the country was growing at 9 %before it is
affected by recession in 2008. The Indian economy has the resilience to withstand the challenges arising out
of the global slowdown and the domestic drought situation. This inorganic growth in economy calls for a
watching rate of growth in infrastructure facilities. Power sector is one of the major aspects of this
infrastructure building; the demand for energy has grown at an average of 3.6% per annum over the past 30
years. In March 2009, the installed power generation capacity of India stood at 147,000 MW while the per
capita power consumption stood at 680 KWH. The per capita consumption is expected to increase 1000
KWH. So, this provides huge opportunity for NTPC
SOCIAL FACTOR:
With a population of India increasing and the scenario of the country is changing from survival to
consumption mode, the demand for electricity continue to be on increase. As a result of which power
generation sector promises increasing returns to those who have already positioned themselves strongly in
this sector.
TECHNOLOGICAL FACTOR:
The operational efficiency of a thermal power plant is only 30% that is very poor and also high maintenance
cost when compared to hydro power plants (these two are prevalent in India). The advantages of thermal
power plant are low installation cost, less time for installation and generation, and constant supply. But with
advent of nuclear power (after nuclear deal) these advantages are disserted.
LEGAL FACTOR:
Legal factors that main hindrance to enter this industry primarily licenses, environment protections laws and
work safety laws. This is the reason why the most of private companies although ventured a decade ago still
they are thriving for success.
ENVIRONMENTAL FACTOR:
Thermal power plants produce co2, so2 and other gases which are hazardous to the environment.. After
COPENHAGEN Climate Conference it became more imperative for the govt. to reduce pollution.. This
might put pressure on NTPC to go for alternatives
CH-5
OBJECTIVE
S
OF STUDY
OBJECTIVE & SCOPE OF STUDY
The main objectives of this study aimed are:
Ratio analysis is the process of establishing and interpreting various ratios for helping in
making certain decisions. There are a number of ratios which can be calculated from the
information given in the financial statements, but for the purpose of this particular study
we have selected only the appropriate data and calculated only a few appropriate ratios.
Standards of comparison:
The basis of ratio analysis is majorly of four types.
Past ratios, calculated from past financial statements of the firm.
Competitors ratio, of the some most progressive and successful competitor firm at the
same point of time.
Industry ratio, the industry ratios to which the firm belongs to
Projected ratios, ratios of the future developed from the projected or pro forma financial
statements
This project will include the first type i.e. Past ratios, calculated from past financial
statements of the firm.
In the view of functional classification following ratios have been calculated and studied
under this project.
Liquidity Ratios: This ratio explains the relationship between current assets and
current liabilities of a business.
Turnover Ratios: These ratios are calculated on the bases of cost of sales or
sales, therefore, this ratio is also called as Turnover Ratio. Turnover indicates
the speed or number of times the capital employed has been rotated in the process
of doing business. Higher turnover ratio indicates the better use of capital or
resources and in turn lead to higher profitability
Solvency Ratios: This ratio disclose the firms ability to meet the interest costs
regularly and Long term indebtedness at maturity
Limitations: The below mentioned are the constraints under which the study is carried
out.
The study is based on only secondary data.
The period of study was 2007-2011 financial years only.
Only the information available in public domain was used.
Time was an important limitation. Whole study was conducted in a period of just 45 days.
NTPC Ltd undertakes around 71 projects all over India. Individual balance sheets of each
project were not studied and only the aggregate figures as available in the annual report
were included.
CH-6
RESEARCH
METHODOLO
GY
RESEARCH METHODOLOGY
Research design: Research design helps in proper collection and analysis of the data. It
helps in further
Research approaches: The most appropriate research is descriptive. This is because the
goal of the study is clear research will help to understand to concept better.
Classification of data:
Primary data
Primary data will be through regular interaction with the officials of NTPC Ltd
Secondary data
This includes the information gathered from various Journals & periodicals, annual
reports and websites.
Sample Size
The sample size selected is of five years i.e. from 2007-2011.
Sampling technique
The sampling procedure employed for this is judgmental sampling a convenience
sampling technique in which elements are based on the judgment of researcher
Software tools used for the data analysis
The software tools used for data analysis in MS WORD & MS EXCEL.
The information is collected through secondary sources during the project. That
information was utilized for calculating performance evaluation and based on that,
interpretations were made.
CH-7
DATA
ANALYSIS
DATA ANALYSIS
(all figures
in Rs crore)
a) PROFITABILITY RATIOS
Gross profit ratio = Gross profit x 100
Net sales
Fuel expenses
35373
29462.74
271107
220202
198181
1966.1
1563.09
1336
1213.1
1105.9
37339.1
31025.83
28446.7
23233.3
20924
54874
46322.59
41923.8
37050.1
32595.2
17534.9
15296.76
13477.1
13816.8
11671.2
31.10
33.02
32.10
37.30
35.80
Other factory
expenses, e.g.
water charges,
power charges
etc
Total (A)
Net Sales(B)
Gross profit
(A-B)
Gross Profit
ratio
Notes:
For all 5 years apart from fuel charges following items were included as factory
expenses: Power
charges, water charges, stores consumed, rent, repairs &
maintenance , Construction equipment, charges for building, plant and machinery,
power stations and other charges
The above mentioned items were selected from schedule 22 under the head
Generation, Administration & Other expenses
Net sales were calculated by deducting electricity duty from Gross sales
Comments:
A high gross profit margin indicates that the company can make a reasonable
profit, as long as it keeps the overhead cost in control. A low margin indicates that
the business is unable to control its production cost.
As the gross profit is found by deducting cost of goods sold from net sales, higher
the gross profit better it is. There is no standard gross profit ratio.
Beginning from the year 2007 Gross Profit ratio has always been decently
maintained by the company
As it is very clear from the figures gross profit was highest in the year 2008
i.e.37.29%
After 2008 though the gross profit has declined, it is accompanied by huge
extension in operations as number of projects undertaken has also increased.
Gross profit was lowest last year i.e. 2011, 31.95% this indicates that overheads
cost has not been controlled as desired.
(ii)
Net profit ratio: It establishes the relationship between net profit and
Net profit
Net Sales
Net Profit ratio
9102.59
8728.2
8201.3
7414.8
6864.47
54874
46322.59
41923.8
37050.1
32595.2
16.60
18.80
19.60
20.01
Notes:
Net Profit was calculated by deducting operating expenses , interest & finance
charges and tax from the total operating income
21.
Total operating income includes income from sale of energy, consultancy and
other incomes.
Net sales were calculated by deducting electricity duty from Gross sales.
Comments:
Net profit is the number that really matters, as this is the true indication of your
profitability. It will tell you if you are making enough money to make this all
worth your time and effort.
Net profit for NTPC has been highest in the year 2007 i.e. 21.05%
Thereafter it has continuously declined. It was lowest in the year 2011 i.e. 16.58%
Though net profits of NTPC have declined they are still decent as compared to its
counterparts in industry.
It also means that business has the capital to grow. If the business is making
money, then it will be able to purchase more inventories that will become best
sellers for it, which will give a higher net profit.
We can suggest that overheads cost should be controlled as to increase the overall
profitability
Net profit
9102.59
8728.2
8201.3
7414.8
6864.
125248.2
112488.5
104251.4
89388.07
80764.
Total assets
Return on total
assets ratio
7.30
7.80
7.90
8.30
Notes:
Total Assets as per the balance sheet of 2010-11 is Rs 112,634.46 crores . For our
8.50
calculations, we have included current assets, loans & advances instead of net
current assets ( i.e after deducting current liabilities & provisions)
Net Profit was calculated by deducting operating expenses , interest & finance
charges and tax from the total operating income
Total operating income includes income from sale of energy, consultancy and
other incomes
Comments:
The Return on Total Assets measures how well the company is actually able to
make intelligent choices on how to spend its money on its assets.
The greater a company's earnings in proportion to its assets, the more effectively
that company is said to be using its assets
Though the ratio is much better than its other counterparts in the industry.
Returns have been highest in the year 2007 i.e. 8.9% and the same have been
lowest in the year 2011 i.e. 7.26%
Here we will also have to take into consideration that the company has
undertaken many new projects who are still under construction or are not used up
(ROCE):
PBIT
14198.68
12694.39
11356.69
99291.46853
90868.93343
14.3
13.97
12052.97
10766.81
79472.9881
85664.32125
77514.83081
14.29
14.07
13.89
Capital
Employed
Return on
Capital
Employed ratio
Notes:
Since NTPC Ltd. belongs to power sector industry where gestation period for new
projects is always more than 3-5 years , therefore a part of capital gets blocked in
such projects. Thus, relationship cannot be established between that capital and
sales (since it is not generating any sales). That is the reason , such capital do not
form part of capital employed for the purpose of calculation in different financial
statements.
In order to find the exact Return on Capital Employed we need to have data
regarding all projects undertaken, since the required data is not available we have
used information available in the annual report
PBIT was calculated by deducting operating expenses and depreciation from total
operating income.
Comments:
The Return On Capital Employed (ROCE), is one of the most important operating
ratios that can be used to assess corporate profitability.
ROCE should always be higher than the rate at which the company borrows,
otherwise any increase in borrowing will reduce shareholders' earnings.
In case of NTPC Ltd the Return on capital employed have been more than 10%
during past 5 years, which is commendable as compared to its counterparts in
industry.
(v)
PAIT
91025900000
87282000000
82013000000
74148100000
68647200000
8245464400
8245464400
8245464400
8245464400
8245464400
11.03
10.60
9.10
8.10
8.30
No. of equity
shares
Earnings per
share
Notes:
Number of Equity shares remains constant for all 5 years and it comprises of
equity shares of Rs 10 each fully Paid- up.
PAIT was calculated by deducting operating expenses , interest & finance charges
and tax from the total operating income
Total operating income includes income from sale of energy, consultancy and
other incomes.
Comments:
Earnings per share are generally considered to be the single most important
variable in determining a share's price.
It simply represents the share of net profit after meeting all obligations that is
actually left for the shareholders. Thus representing earnings per share.
While it was least in 2007 i.e. Rs 8.32 per share, it was maximum last year i.e. in
2011 i.e ,Rs 11.03 per share
Growing trend of EPS is definitely good for health of its share value in the
market.
(vi) Dividend per share: It represents to what extent the profit belongs to the
owners of a company.
Particulars
March 2011
March 2010
March 2009
March 2008
March 2007
31332700000 31332700000
29683600000
28859100000
26385500000
8245464400
8245464400
8245464400
8245464400
8245464400
3.80
3.80
3.60
3.50
3.20
Distributed
Profit
No. of equity
Shares
Dividend per
share
Notes:
Number of Equity shares remains constant for all 5 years and it comprises of
equity shares of Rs 10 each fully Paid- up.
Comments:
a stockholder will
receive
for
DPS is the part of earning that is actually distributed among the shareholders
after retaining a part of earning for the purpose of reinvestment.
It is quite evident from the figures that the DPS is continuously rising which will
of course positively affect the share value in the market for NTPC Ltd.
DPS has been highest in the year 2011 i.e. Rs 3.77 per share.
(vii)
Dividend payout ratio: The payout ratio provides an idea of how well
earnings support the dividend payments. More mature companies tend to have a
higher payout ratio.
Particulars
March 2011
March 2010
March 2009
March 2008
March 2007
3.80
3.80
3.60
3.50
3.20
11.03
10.60
9.10
8.10
8.30
0.344515
0.358491
0.395604
0.432099
0.385542
Dividend per
share
Earnings per
share
Dividend
payout ratio
Notes:
Number of Equity shares remains constant for all 5 years as it comprises of equity
shares of Rs 10 each fully Paid- up.
Distributed profits includes interim dividend and recommended final dividend for
all 5 years
Number of Equity shares remains constant for all 5 years as it comprises of equity
shares of Rs 10 each fully Paid- up.
Comments:
The payout ratio provides an idea of how well earnings support the dividend
payments. More mature companies tend to have a higher payout ratio.
Investors seeking capital growth may prefer lower payout ratio because capital
gains are taxed at a lower rate.
Investors seeking high current income and limited capital growth prefer
companies with high Dividend payout ratio.
b)
LIQUIDITY RATIO :
Current ratio: It relates current assets to the current liabilities and helps
the analyst in determining a firms ability to pay its current liabilities from
its current assets.
Current Assets:
Particulars
March 2011
Inventories
March 2010
March 2009
March 2008
March 2007
3639.12
3347.71
3243.4
2675.7
2510.2
7924.31
6651.46
3584.2
2982.7
1252.3
16185.26
14459.58
16271.6
14933.2
13314.6
1046.97
844.04
979.4
921.8
1058.0
6601.13
5513.11
6846.7
4035.4
4047.6
35396.79
30815.8
30925.3
25548.8
22182.7
Sundry
debtors
cash & bank
balances
Other Current
Assets
Loans &
Advances
Total
Current Liabilities:
Particulars
March 2011
March 2010
March 2009
March 2008
March 2007
Current
liabilities
10320.48
7687.58
7439.1
5548.3
5323.5
Provisions
2752.43
3070.58
3249.5
2381.6
1702.8
13072.91
10758.16
10688.6
7929.9
7026.3
Total
Particulars
March 2011
March 2010
March 2009
March 2008
March 2007
Current ratio
2.70
2.86
2.89
3.22
3.15
Adjustment
Figures of Current Assets and current Liabilities were derived as shown in the
above tables
Comments:
If the current ratio is greater than 2, then that company is generally considered to
have good short-term financial strength. If current liabilities exceed current assets,
then the company may have problems meeting its short-term obligations
However in the initial years i.e. during 2008 and 2007 current ratio has clearly
exceeded the ideal ratio i.e. 2:1. In 2008 it was 3.22:1 while in the year 2007 it
was 3.11:1.
Significant improvement has been shown in proceeding years and the ratio has
been best in the year 2011 as compared to other four years, as during this it was
2.70:1 that is quite close to the ideal ratio.
Thus we can say that considerable improvement has been shown by the company
and same should be continued further.
(ii) Quick ratio: This ratio is more rigorous test of a firms ability to pay its
obligations. It takes into account the fact that some accounts classified as current
assets are less liquid than others.
Quick assets
Particulars
March 2011
Sundry debtors
March 2010
March 2009
March 2008
March 2007
7924.31
6651.46
3584.2
2982.7
1252
16185.26
14459.58
16271.6
14933.2
13314
1046.97
844.04
979.4
921.8
1058
6601.13
5513.11
6846.7
4035.4
4047
31757.67
27468.19
27681.9
22873.1
19672
Current liabilities
Particulars
March 2011
March 2010
March 2009
March 2008
March 2007
Current
liabilities
10320.48
7687.58
7439.1
5548.3
5323.5
Provisions
Total
2752.43
3070.58
3249.5
2381.6
1702.8
13072.91
10758.16
10688.6
7929.9
7026.3
Particulars
March 2011
March 2010
March 2009
March 2008
March 2007
Quick ratio
2.40
2.60
2.60
2.90
2.80
Notes:
Here Quick assets were calculated by deducting stock from current assets
Instead of quick liabilities, current liabilities can be used as it is for quick ratio.
Comments:
Quick ratio as 1:1 is considered as ideal. However it also depends on the kind of
industry.
All current assets may not be quickly converted into cash, also their value may
differ, thats why we have to consider quick assets
As shown by the graph Quick ratio was highest in 2008 i.e. 2.88:1. This simply
means that assets forming part of quick assets were far more than the required.
Though by 2011 remarkable improvement has been shown and pile of unutilized
quick assets has been significantly reduced.
(iii) Cash Ratio/ absolute liquidity Ratios: It can therefore determine if,
and how quickly, the company can repay its short-term debt.
Cash Ratio: Cash + Marketable securities
Current Liabilities
Cash
Bank balance
with RBI
Other Current
Accounts
Balance
Term Deposit
Accounts
Total
March 2011
March 2010
March 2009
March 2008
March 2007
295.18
600.64
239.5
439.2
722.8
15858.92
13820.55
15999.8
14453.6
12557.8
16185.26
14459.5
16271.6
14933.2
13314.9
0.36
30.80
2.52
30.80
1.5
30.80
9.6
30.8
3.5
30.8
Current Liabilities
Particulars
March 2011
March 2010
March 2009
March 2008
March 2007
Current
liabilities
10320.48
7687.58
7439.1
5548.3
5323.5
Provisions
2752.43
3070.58
3249.5
2381.6
1702.8
13072.91
10758.16
10688.6
7929.9
7026.3
March 2008
March 2007
Total
Particulars
March 2011
Cash Ratio
1.20
March 2010
1.30
March 2009
1.50
1.90
Adjustment
Figures of Current Assets and current Liabilities were derived as shown in the
above tables
Comments:
Marketable securities are very liquid as they tend to have maturities of less than
one year. Furthermore, the rate at which these securities can be bought or sold has
little effect on their prices.
This ratio should not be used in determining companys value, but simply as one
factor in determining liquidity.
1.90
For NTPC Ltd it was highest in the year 2007-2008 i.e 1.41 times.
NTPC Ltd has quite ambitious plans regarding diversification ,accordingly it opts
to keep majority of its current assets in the form or cash and bank balances which
includes term deposits earning interests
c) Turnover ratios
Net Sales
Net Fixed Assets
Net Fixed
Assets
39235.96
34761.29
32937.7
26093.7
25648.1
54874
46322.59
41923.8
37050.1
32595.2
1.40
1.30
1.30
1.40
1.30
Net Sales
Fixed assets
Turnover
Ratio
Notes:
Net sales were calculated by deducting electricity duty from Gross sales.
Gross Fixed Assets include tangible assets such as Land, building, Railway siding,
construction equipment etc and intangible assets which includes Right of Use and
Software.
Comments:
The higher the ratio, the better, because a high ratio indicates the business has less
money tied up in fixed assets for each unit of currency of sales revenue.
For NTPC Ltd this ratio was highest in the year 2008, i.e. 1.41 times .A high fixed
asset turnover is preferred since it indicates a better efficiency in fixed assets
utilization.
It was quite low in the year 2007 & 2009 i.e. 1.27 times. That shows that
company had more money stuck in fixed assets for each unit of sales revenue.
However after 2009 we can see continuous growth that will definitely affect
companys business positively and shows efficient management of funds
Net sales
Capital Employed
Net Sales
54874
Capital Employed
46322.59
41923.8
37050.1
32595.2
99291.46853
90868.93343
79472.9881
85664.32125
77514.8308
0.55
0.50
0.52
0.43
0.4
Capital
Turnover
Ratio
Notes:
Net sales were calculated by deducting electricity duty from Gross sales.
Since NTPC Ltd. belongs to power sector industry where gestation period for new
projects is always more than 3-5 years, therefore a part of capital gets blocked in
such projects. Thus, relationship cannot be established between that capital and
sales (since it is not generating any sales). That is the reason , such capital do not
form part of capital employed for the purpose of calculation in different financial
statements.
In order to find the exact Return on Capital Employed we need to have data
regarding all projects undertaken, since the required data is not available we have
used information available in the annual report.
Comments:
Capital turnover establishes relationship between the net sales and capital
employed.
The higher the ratio is, the more efficiently a company is using its capital.
In the case on NTPC Ltd trends show that capital turnover is continuously rising
from 2007-2011.
Capital turnover was highest during the year 2011 i.e. 0.55 this indicates the
relationship between the capital employed and sales generated.
Operating profit ,
employees
remuneration and
other expenses
19037.6
17332.39
13947.01
12783.96
11092.
23797
23743
23639
23674
236
0.8
0.73
0.59
0.54
0.4
Average no. of
employees
Value added per
employee
Notes:
Comments:
Value added per employee is defined by customer perception of service and then
measured using the customer's perception per employee.
In context to NTPC Ltd trends show the increasing value added per employee, it
shows that even this aspect is now been given due attention.
d) SOLVENCY RATIOS
Proprietary Ratio = Shareholders Funds
Total assets
Shareholders
Funds
67892.25
62437.5
57370.07
52638.6
48596.8
125248.22
112488.49
104251.41
89388.07
80764.33
54:46
55:45
55:45
58:42
60:40
Total Assets
Proprietary
Ratio
Notes:
Shareholders funds for all 5 years includes the amount of share capital i.e Rs
8,245.46 crores (constant for all 5 years) and Reserves & Surplus.
Total Assets as per the balance sheet of 2010-11 is Rs 112,634.46 crores . For our
calculations, we have included current assets, loans & advances instead of net
current assets ( i.e after deducting current liabilities & provisions)
Therefore, Total assets include Net Block, Capital Work- in- Progress ,
Construction Stores & advances, Investments, Current Assets , Loans &
Advances.
Comments:
A higher proprietary ratio would imply that company has enough capital to repay
its creditors whenever any such demand is made by the creditors.
A lower proprietary ratio would imply that company is not in a position to pay all
of its creditors and therefore a low proprietary ratio is a cause of concern for the
creditors of the company.
For NTPC Ltd as per the trend of last 5 years this ratio is continuously declining.
It was least in last year i.e. in 2011, 0.542. Still company is always in a position to
repay its creditors comfortably.
This ratio for NTPC Ltd is good as compared to its counterparts in the industry.
This helps the creditors of the company in seeing that their capital or loans which
the creditors have given to the company are safe.
(ii) Debt-Equity Ratio: This describes the relationship between the lenders
contribution for each rupee of the owners contribution.
Shareholders
Funds
67892.25
62437.5
57370.07
52638.6
48596.8
43174.98
37783.63
34566.33
27177.67
24451.65
63:37
60:40
60:40
51:49
50:50
Total long
term debt
Debt-Equity
Ratio
Notes:
Total Long term loan as per the Balance Sheet 2010-11 was Rs 43,188.24 crores .
However, for our calculation we have deducted the amount of working capital
loan in the form of fixed deposits(due for payment within 1 year) i.e Rs 13.26
crores. Therefore, the figure for total long term debt comes out to be Rs 43174.98
crores. Same has been done for previous 4 years as well.
Shareholders funds for all 5 years includes the amount of share capital i.e Rs
8,245.46 crores (constant for all 5 years) and Reserves & Surplus.
Comments:
A high debt/equity ratio generally means that a company has been aggressive in
financing its growth with debt.
This can result in volatile earnings as a result of the additional interest expense.
The cost of this debt financing may outweigh the return that the
company generates on the debt through investment and business activities and
become too much for the company to handle. This can lead to bankruptcy, which
would leave shareholders with nothing.
Regarding NTPC Ltd this ratio is continuously increasing for last 5 years.
It would have been considered ideal if the company would have maintained ratio
nearly 70:30.
It was highest during last year i.e. 2011, 0.64. So the Company has ample scope
to introduce more debt in its structure. For a matter of fact it should intro
Therefore we can say that the ratios in past 5 years are suitable for NTPC Ltd and
it must continue to increase the debt proportion in its structure till it reaches
70:30.
Equity share
capital
8245.46
8245.46
8245.46
8245.46
8245.46
43174.98
37783.63
34566.33
27177.67
24451.65
19:81
21:79
23:77
30:70
33:67
Total long
term debt
Capital
Gearing Ratio
Notes:
Here Fixed Income Securities means: Total Long Term Debt + Preference Share
Capital
Since Preference share capital is nil amount remains same as Total Long Term
Debt.
Total Long term loan as per the Balance Sheet 2010-11 was Rs 43,188.24 crores .
However, for our calculation we have deducted the amount of working capital
loan in the form of fixed deposits(due for payment within 1 year) i.e Rs 13.26
cores. Therefore, the figure for total long term debt comes out to be Rs 43174.98
cores. Same has been done for previous 4 years as well.
Comments:
The higher a company's degree of leverage, the more the company is considered
risky.
It is the proportion between the fixed interest or dividend bearing funds and non
fixed interest or dividend bearing funds.
For NTPC Ltd the ratio is continuously declining from the year 2007. This is
good as it shows reducing risk. It reveals the suitability of company's
capitalization
It was highest in the year 2007 i.e. 0.33 and gradually declined to just 0.19 by
2011.
EBIT
Interest
charges on
long term
borrowing
14198.68
12694.39
11356.69
12052.97
10766.81
2149.08
1808.93
1996.22
1798.04
1859.38
Interest
Coverage
Ratio
6.60
7.01
5.70
6.70
5.80
Comments:
The lower the ratio, the more the company is burdened by debt expense. When a
company's interest coverage ratio is 1.5 or lower, its ability to meet interest
expenses may be questionable.
For NTPC Ltd data shows that company is not under much of debt expense.
It was highest in the year 2010 i.e 7.01 times and lowest in the year 2009 i.e 5.68
times
CH-8
FINDINGS
Findings
The total income of NTPC Ltd. For the year 2010-11 increased by 16.59% to Rs.
57399.49 crores from Rs. 49233.88 crores during 2009-2010
The net profit after tax increased from Rs 9102.59 crores from Rs 8728.20 crores
registering a growth of 5.29 % over last year.
During the year 2010-11, company realized 100% payment for current bills raised
for sale of power for the 8th successive year.
It was observed that a major portion of current assets comprised of Cash and Bank
balances.
The supply of power improved during the year 2010-11 owing to increase in
capacity in coal as well as gas based plants.
NTPC Ltd. has always discharged its social responsibility as a part of its
Corporate Governance Philosophy. It follows the global practice of addressing
CSR issues in an integrated multi stake holder approach covering the environment
and social aspects.
CH-9
SUGGESTIO
NS
&
CONCLUSIO
N
Gross Profit ratios have continuously gone under various fluctuations in the last
five years. However the ratios are more than the industry standard. Gross profit
ratio was lowest last year i.e. 2011, 31.95% this indicates that overheads cost has
not been controlled as required. Such low margin indicates that the business is
unable to control its production cost.
Net profit is the number that really matters, as this is the true indication of
profitability. The total income of NTPC Ltd. For the year 2010-11 increased by
16.59% to Rs 57,399.49 crores from Rs 49,233.88 crores during 2009-10
Net profit ratio for NTPC has been highest in the year 2007 i.e. 21.05%.
Thereafter it has continuously declined. It was lowest in the year 2011 i.e. 16.58%
Though net profits ratio of NTPC have declined they are still decent as
compared to its counterparts in industry.
In the initial years i.e. during 2008 and 2007 current ratio has clearly exceeded
the ideal ratio i.e. 2:1. In 2008 it was 3.22:1 while in the year 2007 it was 3.11:1.
Significant improvement has been shown in proceeding years and the ratio has
been best in the year 2011 as compared to other four years, as during this it was
2.70:1 that is quite close to the ideal ratio.
In case of NTPC Ltd this returns on total assets ratio is continuously declining
which shows that return as compared to the assets is declining.
NTPC Ltd. belongs to power sector industry where gestation period for new
projects is always more than 3-5 years, therefore a part of capital gets blocked in
such projects.
In last financial year debt has registered a growth of 14% which seems to be
matching with companys rate of diversification.
The debt-equity ratio at the end of financial year 2010-11 increased to 0.64 from
0.61 at the end of previous financial year.
The amount raised through term loans, bonds and foreign currency borrowings
was used for capital expenditure and re-financing while amount raised through
deposits have been used for working capital purposes.
Looking at the profitability, size and promising future prospects , we can say that
for NTPC Ltd. there is still a room for including more of debt into its capital
structure as debt is a cheaper source of finance so thereby it would lead to more of
profitability
For NTPC Ltd the Fixed assets turnover ratio was highest in the year2008 i.e.
1.41. Company should put in efforts to increase it further as a higher fixed asset
turnover indicates better efficiency in fixed assets utilization.
Trends show the increasing value added per employee, it shows that even this
aspect is now been given due attention
More earnings can be retained for fast-track implementation of new projects with
ultimate of increasing net worth.During all five years more than 60% of net
earnings after tax is retained with an aim efficient reinvestment which will fetch
better returns.
CH-10
BIBLIOGRAPHY
Bibliography
Published sources
Goel, D.K. ,2007, D.K. Goels Accountancy, Arya Publications, New Delhi, Pg.
no. 84-102
Internet sources,
Daniel J. Fonseca, Gary P. Moynihan and Vineet Jain, Retrieved June 24,2012
http://ideas.repec.org/a/ids/ijfsmg/v1y2006i2p141-154.html
Glossary
T&D Losses Transmission and Distribution Losses
AT&C Losses Aggregate technical and commercial Losses
PLF Plant load Factor
SPU State Public Utilities
ANNEXURE