A STUDY ON

RATIO ANALYSIS

OF

NATIONAL THERMAL POWER CORPORATION

(NTPC)

A Dissertation submitted by

ABHISHEK SHARMA

In partial fulfilment of the requirement of

“MASTER OF BUSINESS ADMINISTRATION”

AND

POST GRADUATE DIPLOMA IN ENTERPRENUERSHIP AND BUSINESS MANAGEMENT

(2009 – 2010)

GUIDEDBY:

Mr. P. Ananth.jagannath

From

INDRAPRASTH COLLEGE OF MANAGEMENT AND TECHNOLOGY (AFFILIATED TO PERIYAR UNIVERSITY, SALEM)

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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), Anta.

I acknowledge my gratitude and thanks to Mr. Ajay Modi, Director, Indraprastha college of management & technology, for every kindly exploring and making available this opportunity of summer training at NTPC, Anta.

I am grateful to Mr P. Anannth. Jagannath, H.R.Manager, NTPC who was enough to permit my training to NTPC.

I am deeply indebted to Mr. Narendra singh my project guide. Who inspite of their busy schedule, were always there to guide me and arrange for the requisite resources, whenever needed.

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.

ABHISHEK SHARMA

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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 Enterpreneurship 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. 

In this regard, I have undergone my summer internship at costing Department, of DCM Shriram Consolidated Ltd.

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.

ABHISHEK SHARMA

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EXECUTIVE SUMMARY 

PowertoLead Born to Succeed

NTPC Limited, India’s largest power company with an installed capacity of 29,894 MW is presently operating 15 coal based, 7 gas based power stations and 4 joint ventures. NTPC contributed around 28.5% of the country’s entire power generation during the year 2007-08 and plans to become a 75,000 MW power company by 2017. NTPC has moved ahead by diversifying its portfolio to emerge as an integrated power major with presence across the entire energy value chain. NTPC has been allocated 6 coal mine blocks which are expected to produce48milliontonsperannum.

NTPC has been ranked No. 1 in 'Best Workplaces for Large Organizations' and eighth overall in 2008 by Great Places to Work in collaboration with the Economic Times.

With its excellent practice in Human Capital Management, NTPC is the most admired organization in public sector. Powered by dynamic and dedicated workforce.

NTPC, India's largest power company, was set up in 1975 to accelerate power development in India. It is emerging as an ‘Integrated Power Major’, with a significant presence in the entire value chain of power generation business. NTPC ranked 317th in the ‘2009, Forbes Global 2000’ ranking of the World’s biggest companies. With a current generating capacity of 31,704 MW, NTPC has embarked on plans to become a 75,000 MW company.

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TABLE OF CONTENTS 

Cover page Certificate Acknowledgement Preface Executive Summary

NTPC limitedS.No.

TopicPage No.

1 Over view of organization 6

2 Board of directors 12

3 Human resourse 19

4 Recruitment 20

5 Diversified growth 22

6 Future capacity addition 23

7 Research methodology 36

8 Accounting policies 38

9 P&l , balance sheet, cash flows 44

10 Ratio analysis 48

11 Conclusion and SWOT analysis 58

12 Organizational process, learning experience, bibliography 60

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Overview of Organisation

India’s largest power company, NTPC was set up in 1975 to accelerate power development in India. NTPC is emerging as a diversified power major with presence in the entire value chain of the power generation business. Apart from power generation, which is the mainstay of the company, NTPC has already ventured into consultancy, power trading, ash utilisation and coal mining. NTPC ranked 317th in the ‘2009, Forbes Global 2000’ ranking of the World’s biggest companies.

The total installed capacity of the company is 31,704 MW (including JVs) with 15 coal based and 7 gas based stations, located across the country. In addition under JVs, 3 stations are coal based & another station uses naptha/LNG as fuel. By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources and around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries and takeover of stations.

NTPC has been operating its plants at high efficiency levels. Although the company has 18.10% of the total national capacity it contributes 28.60% of total power generation due to its focus on high efficiency.

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. The rest is held by Institutional Investors and the Public. The issue was a resounding success. NTPC is among the largest five companies in India in terms of market capitalisation.

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 2009, 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 e

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NTPC Limited (Formerly National Thermal Power Corporation) is the largest state-owned power generating company in India. Forbes Global 2000 for 2009 ranked it 317th [1] in the world. It is an Indian public sector company listed on the Bombay Stock Exchange although at present the Government of India holds 84.5%(after divestment the stake by Indian government on 19october2009) of its equity. With a current generating capacity of 31134 MW, NTPC has embarked on plans to become a 75,000 MW company by 2017. It was founded on November 7, 1975.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 31134 MW (including JVs) with 15 coal based and 7 gas based stations, located across the country. In addition under JVs, 3 stations are coal based & another station uses naphtha/LNG as fuel. By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources and around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries and takeover of stations.

NTPC has been operating its plants at high efficiency levels. Although the company has 18.79% of the total national capacity it contributes 28.60% of total power generation due to its focus on high efficiency. NTPC’s 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 2008-09. Every fourth home in India is lit by NTPC. 170.88BU of electricity was produced by its stations in the financial year 2005-2006. The Net Profit after Tax on March 31, 2006 was INR 58,202 million. Net Profit after Tax for the quarter ended June 30, 2006 was INR 15528 million, which is 18.65% more than for the same quarter in the previous financial year. 2005).

Pursuant to a special resolution passed by the Shareholders at the Company’s 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) is in the 138th position in Fortune 500 in 2009.

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10 Indian companies make it to FT's top 500

Company ranking

1. Platts Top 250 Global energy Company for 2009

India’s Biggest News Makers Survey

Business Standard's "BS1000" companies 

Overview of organisation

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India’s largest power company, NTPC was set up in 1975 to accelerate power development in India. NTPC is emerging as a diversified power major with presence in the entire value chain of the power generation business. Apart from power generation, which is the mainstay of the company, NTPC has already ventured into consultancy, power trading, ash utilisation and coal mining. NTPC ranked 317th in the ‘2009, Forbes Global 2000’ ranking of the World’s biggest companies.

The total installed capacity of the company is 31,704 MW (including JVs) with 15 coal based and 7 gas based stations, located across the country. In addition under JVs, 3 stations are coal based & another station uses naptha/LNG as fuel. By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources and around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries and takeover of stations.

NTPC has been operating its plants at high efficiency levels. Although the company has 18.10% of the total national capacity it contributes 28.60% of total power generation due to its focus on high efficiency.

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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. The rest is held by Institutional Investors and the Public. The issue was a resounding success. NTPC is among the largest five companies in India in terms of market capitalisation.

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 2009, by the Great Places to Work Institute, India Chapter in collaboration with

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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.

 

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Board of directorsShri R.S. Sharma Chairman and Managing Director, NTPC Limited, since May 01, 2008, has rich and varied experience spanning over thirty seven years in the Indian power industry out of which he has spent 30 years in power projects and stations. A graduate in Mechanical Engineering, Shri Sharma began his career in 1971 as Engineer in Madhya Pradesh Electricity Board where he laid the foundations of his exceptional expertise in the area of Operation & Maintenance of power stations.

He joined NTPC in 1980 and worked in equipment erection and plant maintenance areas prior to becoming head of various projects. He also headed the Southern Region of the Company. Later he served as Executive Director (Corporate Planning) and Executive Director (Commercial) and looked after key areas of Strategic Planning and Commercial Functions respectively.

Shri Sharma became Director (Commercial) in October, 2004 and took numerous initiatives to ensure robust commercial success of NTPC. He led NVVN, the trading arm of NTPC, to achieve a substantial share in the power trading market. As Director (Commercial), he also led the team of New Business Development in setting up various joint ventures, carrying out the due process for a power exchange and the Company's diversification into equipment manufacturing. He guided the efforts for acquisition of coal mines abroad and led the team in preparing the road-map for nuclear power. Besides his wide-ranging contribution to the power industry and the Company, Shri Sharma has demonstrated high commitment to corporate governance, corporate social responsibility and value based leadership.

Shri Chandan Roy, Director (Operations) is a graduate in Mechanical Engineering. A power engineer of repute with rich and varied experience of more than 37 years in the areas of project planning, conceptualisation, design, engineering and Operation & Maintenance of more than 29000 MW, Shri Roy has held various responsible positions in India and abroad. Prior to joining the Board of NTPC Limited in January 2004, he has held various important positions including the Executive Director of a Regional Head Quarter, Executive Director (Engineering) etc. He has also been the Chairman of Ratnagiri Gas and Power Private Limited (Part time), a joint venture company of NTPC Ltd and Gas Authority of India Limited (GAIL) for two (2) years and the chief architect of revival of the abandoned project. Prior to joining NTPC in 1977, he worked in Babcock & Wilcox, London. In recognition of his expertise in the area of power plant design, commissioning and generation he has been awarded “Eminent Engineer Award” by Institution of Engineers (India) in the year 2006.

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Shri A.K. Singhal, Director (Finance) since August 2005, a Chartered Accountant, comes with rich experience of 29 years of Corporate Finance Management. He is also a member of All India Management Association (AIMA) and Institute of Internal Auditors (IIA). Prior to joining NTPC in 2001, he was the Executive Director (Finance) in National Fertilizers Limited (NFL) as head of Finance & Accounts department. He held various managerial positions in Krishak Bharati Cooperative Limited (KRIBHCO) and Engineering Projects of India Limited (EPIL). As Finance Director on the Board of NTPC, he is responsible for formulating financial strategies and plans to enable the company in achieving its Vision. He gives directions with respect to the entire gamut of Financial Management of the organization including timely financial resource mobilization at minimum possible cost from Domestic & Global sources including equity issues, optimum utilization of funds, formulation of company’s annual financial budget and undertaking budgetary controls. He is also responsible for designing internal control systems commensurate with the size of the organization and for ensuring compliance of such systems. Being responsible for compliances of Company Law and other statutory requirements, he also gives direction to the Corporate Governance framework of the company. After company became listed he has been acting as one of the vital links between the shareholders of the company and the rest of the Board. In recognition of his contribution, he was adjudged as the Best CFO in the Public Sector category by the Committee for Members in Industry (CMII) of ICAI for the year 2007-08.

Sh. I.J.Kapoor, Director (Commercial) since December’ 2008 is a Graduate in Mechanical Engineering and Masters in Business Administration (Marketing). He joined NTPC in 1978 as 3rd batch Engineering Executive Trainee (EET) and is the first EET to be on the Board of the Company. He has a rich and varied experience of over 31 years in the areas of Commercial, Engineering, Contracts & Materials Management, Consultancy, Cost Engineering, Project co-ordination, Station Engineering and Quality Assurance & Inspection. Prior to his elevation as Director (Commercial), he was Regional Executive Director (National Capital), NTPC, responsible for management of ~ 3900 MW generating capacity, administering more than ¼th of NTPC’s turn over along with project implementation activities for 2x490 MW at Dadri Stage-II. As Director (Commercial), he is responsible for formulation & implementation of policies & strategies to ensure marketing of NTPC’s entire electrical output, appropriate pricing from regulatory authority and 100% & timely realization from customers, thereby generate adequate internal resources for the company to meet the future challenge of capacity addition. In addition, he is the Director In- charge of Consultancy and New Business Development activities. He is also part time Chairman on the Board of Aravali Power Company Private Limited (1500 MW) and part time Director on the Board of PTC India Limited, Meja Urja Nigam Private Limited (1320 MW) and NTPC BHEL Power Projects Private

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Limited. He is a Fellow of Institution of Engineers, India and Senior Member, IEEE, USA.

Shri D.K. Jain, has taken over the charge as Director (Technical) as on 13th May 2010.Shri D.K. Jain (58 years), is a graduate in Mechanical Engineering from IIT, Kharagpur. He joined NTPC Limited in 1978. He has rich and varied experience of over 35 years in design and execution of large power plants. He has worked in various capacities in the areas of renovation & modernisation, engineering and project execution. He was actively involved in design and engineering of first pit-head super thermal power station of NTPC at Singrauli. Before his elevation as Director (Technical), he was Executive Director (Engineering), responsible for identification of sites, taking up feasibilities studies, design and detailed engineering of coal, gas and hydro power projects. He also oversees the Mine Planning and Design of NTPC’s Captive Coal Blocks.

Sri B.P. Singh (55 yrs), Director(Projects), is a Graduate in Mining Engineering. He has rich and varied experience both in coal as well as power sector. He started his career in 1974 in coal mining sector firstly with Indian Iron & Steel Company and subsequently joined Bharat Coking Coal Ltd. He joined NTPC Ltd. in 1981 and worked in various capacities, at Corporate Centre and Power Projects, in the areas of Fuel Management, Coal Mining & Coal Washery. He was elevated as Executive Director (Coal Mining & Coal Washeries) in 2004. He played the pivotal role in formulation of NTPC’s overall strategy for fuel security. He has been instrumental in acquisition and development of fuel assets i.e. one Oil & Gas Exploration block under NELP V in Arunachal Pradesh, six coal mining blocks across various coalfields in the country besides two more blocks for joint operation through a 50:50 JV with CIL. He is also the Chairman of NTPC-SCCL Global Ventures Private Ltd. He joined the Board of the Company as Director (Projects) in Aug, 2009. Besides representing NTPC in various committees set up by Govt. of India on Integrated Coal Policy, fuels for Power Generation, Pricing of Coal, Techno-economics of using washed coal, etc. he has also been part of various Govt. teams & missions like U.K. Trade Mission, Indo–Australia Joint Working Group on Energy & Minerals, etc. He is also a 'Senate Member' of Dr. BR Ambedkar National Institute of Technology, Jalandhar, Expert Member’ on Research Council of “Central Institute of Mining & Fuel Research (CIMFR)” and represents NTPC as 'Member' in MGMI.

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Shri P.K. Sengupta is B. Com and FICWA. He has held the position of Director (Finance) in Eastern Coalfields Limited, Director (Finance) in Coal India Limited prior to becoming Chairman & Managing Director of Coal India Limited in January 1995. He has held directorship in Steel Authority of India and Neyveli Lignite Corporation as non-official part-time Director. He has expertise in the area of Financial Management and General Administration. He has been on the Board of the Company with effect from August 26, 2008 as a non-official part - time director.

Shri M.N. Buch is M.A. (History) from Delhi University, M. Phil (Public Administration) from Indian Institute of Public Administration, Punjab University, PG Diploma holder in Port Management and Administration from University College, London and an Indian Administrative Officer of Gujarat Cadre, 1964 batch. He has held various posts in Gujarat Government. He had held the position of Joint Secretary to the Government of India in Department of Banking, Ministry of Finance, Additional Secretary to the Ministry of Labour, GOI, Director- General, Sports Authority of India prior to becoming Member of Public Enterprises Selection Board, GOI. He has been also on the Board of various public sector banks. He has wide experience in both Development and Regulatory Administration at the Central, State and District levels. He has been on the Board of the Company with effect from August 26, 2008 as a non-official part - time director.

Shri Shanti Narain is B.Sc (Hons. in Physics) and M.Sc. (Mathematics) from Delhi University and has pursued Management Development Programme at British Transport Staff College, UK. He has held various posts in Railways prior to becoming Member (Traffic), Railway Board. He has key expertise in strategic management of transport systems with special focus on Railways, involving planning, marketing, customer relations, monitoring and control of operational and commercial activities and development of transport infrastructure. He has been on the Board of the Company with effect from August 26, 2008 as a non-official part - time director.

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Shri K. Dharmarajan, a retired IAS offier, has served as faculty and resource person at the IIFT, NIUA, TERI and University of Pennsylvania (USA). He was the Chairman at Expert Committee for Property Tax Reforms, Delhi and is well known in the areas of institutional development, administration, international trade & commerce, energy and poverty. He has been on the Board of the Company with effect from August 26, 2008 as a non-official part - time director.

Dr. M. Govinda Rao is Director, National Institute of Public Finance and Policy, New Delhi. He is also a Member, Economic Advisory Council to the Prime Minister. His past positions include Director, Institute for Social and Economic Change, Bangalore and Fellow, Research School of Pacific and Asian Studies, Australian National University, Canberra, Australia. He has played a number of advisory roles in various Expert Committees. He has published 12 books and monographs on various aspects of Public Finance besides technical articles in a number of journals. He has been on the Board of the Company with effect from August 26, 2008 as a non-official part - time director.

Shri Adesh Jain is a Bachelor of Science in Mathematics and an Electrical Engineer from the Indian Institute of Science, Bangalore. He has done his MS in Control Systems at Carleton University, Ottawa. He has over 40 years of experience in project oriented work beginning with two state-of-the-art projects in early 1970’s in USA. In 1973, he returned to India to help the country embark upon major computerization program. He has also served as the Head of IT and Project Management Services in BHEL. In 1992, he started the Centre for Excellence in Project Management. He has been conferred with 6 major awards in India, including the “Gem of India” award. He is author of the book “New Dimensions in Project Management”. He has been on the Board of the Company with effect from January 30, 2009 as a non-official part - time director.

Shri Santosh Nautiyal is a Post Graduate in Political Science and Public Administration. He belonged to Indian Administrative Services (Orissa 1968) and retired in July 2006 as Chairman (in the rank of Secretary to the Govt. of India,) National Highway Authority of India. He has held various positions like Additional Secretary, Govt of India in Department of Consumer Affairs, Principal Secretary of Government of Orrisa, Joint Secretary in Ministry of Steel and Managing Director in Industrial Promotion and Investment Corporation of Orrisa Ltd. He also served as

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Chairman of Food Corporation of India and after retirement was appointed as Chairman of the National Shipping Board constituted by the Central Government. He has been on the Board of the Company with effect from January 30, 2009 as a non-official part - time director.

Shri Kanwal Nath, is M.Sc. in Physics, and holds PG Diploma in Development Finance from the University of Birmingham, UK. He has over 37 years of experience in Indian Audit and Accounts service. He retired as Dy. Comptroller & Auditor General in February 2007. He has also held position of Joint Secretary & Financial Adviser (JS & FA) in Ministry of Water Resources and additional charge of JS & FA, Ministry of Power. He has wide experience in the Audit of Organisations in Power, Telecommunication and Railway Sector. He has been on the Board of the Company with effect from January 30, 2009 as a non-official part - time director.

Shri Arun Kumar Sanwalka is M.Sc (Engg) from UK, I. Mech. (E), UK. and AMIE (India) – Mech. & Prod. He has held various positions in Indian Railways and retired from the position of General Manager, Northeast Frontier Railway after 38 years of service. He has wide expertise in the areas of General Management & Administration, Transport planning, Project management and coordination. He has also handled several projects for establishing large production, maintenance and repair facilities of Indian Railways. He also held the position of Executive Director (Motive Power), RDSO for several years. He has been on the Board of the Company with effect from January 30, 2009 as a non-official part - time director.

Shri I.C.P. Keshari, is a Government nominee Director. He graduated with a Master of Arts degree from Delhi University and holds Junior Research Fellowship of UGC for Master of Philosophy. Shri Keshari is an Indian Administrative Services officer of Madhya Pradesh cadre. He is currently Joint Secretary in the Ministry of Power. Prior to this, Shri Keshari was in the Ministry of Commerce & Industry and has also held various administrative posts in the State of Madhya Pradesh and Chattisgarh. Shri Keshari appointed as a Director on Board in May, 2009.

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Shri Rakesh Jain, born in 1957, is a Government nominee Director in our Company. He holds Masters Degree in Physics from Delhi University. He is an officer of Indian Audit & Accounts Service (1981). He is currently the Joint Secretary & Financial Adviser (JS & FA) in the Ministry of Power and also holds additional charge of the post of JS & FA of the Ministry of Labour & Employment. He has held various important positions such as Director General (Accounts, Enetitlement, Complaints & Information System); Principal Director (Report States) – Office of Comptroller & Auditor General of India; Accountant General (AG)(Audit), Rajasthan; AG(AE-II) Madhya Pradesh; Principal Director (Commercial Audit), Ranchi and Principal Director of Audit, Embassy of India, Washington, USA.

Chief Vigilance Officer

Shri T. Venkatesh, is an IAS officer of UP Cadre (1988 batch), He is Masters in Mechanical Engineering and Masters in Public Policy & Sustainable Development. Shri Venkatesh brings with him vast administrative experience from different Ministries and Departments. He was Joint Secretary (Vigilance) DOPT before joining NTPC and has also served as District Magistrate of Gonda, Almora, Bareilly and Commissioner of Gorakhpur.

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Human resource

People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut of HR policies at NTPC. We are strongly committed to the development and growth of all our employees as individuals and not just as employees. We currently employ approximately 24500 people at NTPC.

Competence building, Commitment building, Culture building and Systems building are the four building blocks on which our HR systems are based.

Our HR Vision

"To enable our people to be a family of committed world class professionals."

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RecruitmentWe believe in the philosophy of 'Grow your own timber'. Our 'Executive Trainee' scheme was introduced in 1977 with the objective of raising a cadre of home grown professionals. First Division Graduate Engineers/ Post graduates are hired through nation-wide open competitive examinations and campus recruitments. Hiring is followed by 52 weeks of fully paid induction training.

Career Advancement & OpportunitiesWe have a well established talent management system in place, to ensure that we deliver on our promise of meaningful growth and relevant challenges for our employees. Our talent management system comprises PERFORMANCE MANAGEMENT, CAREER PATHS and LEADERSHIP DEVELOPMENT.

Rewards & RecognitionsWe have, from inception, created a culture of rewards and recognitions through celebration of various achievements and events and recognising the contributions behind such success.

Innovate, Create, CompeteWe have introduced numerous initiatives which seek to enhance the creativity, innovation, functional aptitude and teamwork of our employees. These initiatives include National Open Competition for Executive Talent (NOCET), Professional Circles, Quality Circles, Business Minds and Medha Pratiyogita (a quiz for our employees). A management journal called “Horizon” is published quarterly to enable the employees to share their ideas and experiences across the organisation.

Quality of Work-LifeNTPC is proud of its systems for providing a good quality of work-life for its employees. In addition to providing beautiful and safe work places, NTPC encourages a culture of mutual respect and trust amongst peers, superiors and subordinates.

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Away from hectic city life, NTPC townships provide an environment of serenity, natural beauty and close community living. Numerous welfare and recreation facilities including schools, hospitals and clubs are provided at the townships to enhance quality of life & the well being of employees and their families. An entire range of benefits, from child care leave to post retirement medical benefits are extended to employees to meet any exigency that may arise in a person's life.

Knowledge Management in NTPC To meet our ultimate objective of becoming a learning organisation, an integrated Knowledge Management System has been developed, which facilitates tacit knowledge in the form of learning and experiences of employees to be captured and summarized for future reference.

Training & Development NTPC subscribes to the belief that efficiency, effectiveness and success of the organisation, depends largely on the skills, abilities and commitment of the employees who constitute the most important asset of the organisation.

Our Training Policy envisages a minimum of 7 man days of training per employee per year. We have developed our own comprehensive training infrastructure.

Education Up-gradation SchemesTo meet the academic aspirations of employees and match them with the needs of the organisation, NTPC has tie-ups with institutes of repute like MDI, Gurgaon; IIT Delhi; BITS Pilani, etc. NTPC sponsors fixed size batches of employees who are inducted into these courses based on their performance rating in the company and their performance in the entrance exam conducted by the respective institute. Unlike other study leave and sabbaticals, employees undergoing these courses do not forego their salary or growth during the duration of the course.

Seeking Feedback We actively seek and encourage employee feedback to ensure that our HR interventions and practices remain relevant and meaningful. We regularly conduct Employee Satisfaction and Organisational Climate Surveys.

AwardsWe derive immense satisfaction from the awards we receive and the resulting recognition they bestow. The awards are key indicators and milestones on our HR journey, and reinforce our HR philosophy and practices. NTPC has been awarded No.1, Best Workplace in India among large organisations for the year 2008, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times.

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 Diversified growth

NTPC’s quest for diversification started with its foray into Hydro Power. It has, since then, been moving towards becoming a highly diversified company through backward, forward and lateral integration. 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 Utilisation business. In its pursuit of diversification, NTPC has also developed strategic alliances and joint ventures with leading national and international companies.

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.

Coal Mining: In a major backward integration move to create fuel security, NTPC has ventured into coal mining business with an aim to meet about 20% of its coal requirement from its captive mines by 2017. The Government of India has so far allotted 7 coal blocks to NTPC, including 2 blocks to be developed through joint venture route. Coal Production is likely to start in 2009-10.

Power Trading: 'NTPC Vidyut Vyapar Nigam Ltd.' (NVVN), a wholly owned subsidiary was created for trading power leading to optimal utilization of NTPC’s 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 between 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 for 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.

Power Distribution: ‘NTPC Electric Supply Company Ltd.’ (NESCL), a wholly owned subsidiary of NTPC, was set up for distribution of power. NESCL is actively engaged in

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‘Rajiv Gandhi Gramin Vidyutikaran Yojana’programme for rural electrification and also working as 'Advisor cum Consultant' for Ministry of Power for implementation of Accelerated Power Development and Reforms Programme(APDRP) launched by Government of India.

Equipment Manufacturing: Enormous growth in power sector necessitates augmentation of power equipment manufacturing capacity. NTPC has formed JVs with BHEL and Bharat Forge Ltd. for power plant equipment manufacturing. NTPC has also acquired stake in Transformers and Electricals Kerela Ltd. (TELK) for manufacturing and repair of transformers.

Future Capacity Additions

NTPC has formulated a long term Corporate Plan upto 2017. In line with the Corporate Plan, the capacity addition under implementation stage is presented below:

PROJECT STATE MW

Coal

1. NCTPP II ( 2 x 490) Uttar Pradesh 980

2 Korba III ( 1 x 500) Chhattisgarh 500

3 Sipat I (3 x 660) Chhattisgarh 1980

4. Farakka III ( 1 x 500) West Bengal 500

5. Indira Gandhi STPP- JV with IPGCL & HPGCL ( 3 x 500) Haryana 1500

6. Simhadri II ( 2 x 500) Andhra Pradesh 1000

7. Vallur I -JV with TNEB ( 2 x 500) Tamilnadu 1000

8. Vallur Stage-I Phase-II  -JV with TNEB ( 1 x 500) Tamilnadu 500

9. Bongaigaon(3 x 250) Assam 750

10. Mauda ( 2 x 500) Maharashta 1000

11. Rihand III(2X500) Uttar Pradesh 1000

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12. Vindhyachal-IV (2X500) Madhya Pradesh 1000

13. Nabinagar TPP-JV with Railways (4 x 250) Bihar 1000

14. Barh II (2 X 660) Bihar 1320

15. Barh I (3 X 660) Bihar 1980

Hydro

1. Koldam HEPP ( 4 x 200) Himachal Pradesh 800

2. Loharinag Pala HEPP ( 4x 150) Uttarakhand 600

3. Tapovan Vishnugad HEPP (4 x 130) Uttarakhand 520

Total 17930

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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 of electrical energy, as a sequel to reforms initiated in the power sector.

 

NTPC Vidyut Vyapar Nigam Ltd. (NVVN)

The company was formed on November 1, 2002, as a wholly owned subsidiary company of NTPC. The company’s objective is to undertake sale and purchase of electric power, to effectively utilise installed capacity and thus enable reduction in the cost of power. NVVN

 

NTPC Hydro Ltd. (NHL)

The company was formed on December 12, 2002, as a wholly owned subsidiary company of NTPC with an objective to develop small and medium hydroelectric power projects of up to 250 MW. More>>

 

Pipavav Power Development Co. Ltd. (PPDCL)

A memorandum of understanding was signed between NTPC, Gujarat Power Corporation Limited (GPCL) and Gujarat Electricity Board (GEB) in 2004 for development of a 1000 MW thermal power project at Pipavav in Gujarat by forming a new joint venture company between NTPC and GPCL with 50:50 equity participation. Pursuant to the decision of Gujarat Government, NTPC Ltd. has dissociated itself from this company. PPDCL is under winding up.

 

Kanti Bijlee Utpadan Nigam Limited, (formerly known as Vaishali Power Generating Company Limited)

To take over Muzaffarpur Thermal Power Station (2*110MW), a subsidiary company named ‘Vaishali Power Generating Company Limited (VPGCL)’ was incorporated on September 6, 2006 with NTPC contributing 51% of equity and balance equity was contributed by Bihar State Electricity Board. This company was formed to renovate the existing unit and run the plant. The second unit has been successfully re-synchronised on October 17, 2007 after 4 years of being

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idle. Renovation and modernisation of the first unit is under progress. The company was rechristened as ‘Kanti Bijlee Utpadan Nigam Limited’ on April 10, 2008.

 

Bharatiya Rail Bijlee Company Limited (BRBCL)

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.

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New Business Development

NTPC, with a rich experience of engineering, construction and operation of over 30,000 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 country’s growth challenges, NTPC has embarked upon an ambitious plan to attain a total installed capacity of 75,000 MW by 2017. 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.

JOINT VENTURE (JV) COMPANIES

The following joint venture companies have been formed so far:

JVs FOR CAPACITY ADDITION

NTPC-SAIL POWER COMPANY (PVT) LTD (NSPCL)

1. A Joint Venture Company of  NTPC and SAIL with 50:50 equity participation.

2. BESCL(Bhilai Electric Supply Co. Pvt Ltd), another JV Co. of NTPC and SAIL with 50:50 equity participation), has merged with NSPCL w.e.f  2nd August 2006,

OBJECTIVE

To supply power to the Bhilai, Durgapur and Rourkela Steel Plants of Steel Authority of India Limited (SAIL) from its Coal based power stations at Bhilai (Chhattisgarh), 2x30MW+1X14MW+2x250 MW, Durgapur (West Bengal) 2x60MW and Rourkela (Orissa) 2x60 MW.

PROMOTERS' EQUITY

NTPC: 50% SAIL : 50%

 

NTPC TAMILNADU ENERGY COMPANY LIMITED

This JV was incorporated on 23rd May, 2003 with Tamil Nadu Electricity Board, a State run Electricity Board in the State of Tamil Nadu engaged in generation, transmission and distribution of electricity.

OBJECTIVETo set up a 1500 MW coal based power station at Ennore in Tamil Nadu utilising the existing infrastructure facility at Ennore and supply power mainly to Tamil Nadu and the states of Kerala, Karnataka and Pondicherry.

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PROMOTERS' EQUITY

NTPC: 50% TNEB : 50%

 

KANTI BIJLEE UTPADAN NIGAM LTD

This JV was incorporated on 06.09.2006 with Bihar State Electricity Board, a State run Electricity Board in the State of Bihar, engaged in generation, transmission and distribution of electricity.

OBJECTIVETo takeover Muzaffarpur Thermal Power Station (MTPS) (2x110MW), a coal based power station at Kanti, for carrying out restoration, R&M and supplying power to the state of Bihar.

PROMOTERS' EQUITY

NTPC: 51-74% * BSEB : 26-49%*(* Final equity holding subject to finalisation of transfer price of MTPS)

 

ARAVALI POWER COMPANY PRIVATE LTD

The JV Company was Incorporated on 21.12.2006 with, Indraprastha Power Generation Company Ltd. (IPGCL) and Haryana Power Generation Company Ltd(HPGCL).

OBJECTIVETo set up a coal-based power station of 1500MW capacity in Distt. Jhajjar, Haryana, in joint venture with IPGCL and HPGCL to supply power to Delhi and Haryana.

PROMOTERS' EQUITY

NTPC-50%, IPGCL-25%, HPGCL-25%

 

BHARATIYA RAIL BIJLEE COMPANY LTD

A JV Company and also a subsidiary of NTPC was incorporated with Railways on 22.11.2007

OBJECTIVETo set up a 1000 MW (4x250 MW) coal based power station as a mega project under captive status to meet traction and non-traction power requirement of Indian Railways.

PROMOTERS' EQUITY

NTPC - 74 %Railways – 26 %

 

MEJA URJA NIGAM PRIVATE LIMITED

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The Joint Venture Company has been incorporated on 02.04.2008 with UPRVUNL.

OBJECTIVE To set up a 2X 660MW Thermal Power Plant at Meja, Distt. Allahabad in UP.

PROMOTERS' EQUITYNTPC: 50%UPRVUNL : 50%

 

RATNAGIRI GAS & POWER PVT. LIMITED

This Joint Venture Company was Incorporated on 9th July 2005

OBJECTIVETo own and operate the assets of the erstwhile Dhabol Power Company ( 1x670 + 2x 740 MW) and 5 MMTPA LNG Regasification Terminal

PROMOTERS' EQUITY

NTPC: 28.33%GAIL: 28.33%ICICI: 10.65% SBI: 7.14% IDBI: 8.67% CANARA BANK: 1.87% MSEB HOLDING COM LTD.: 15.01%

 

NABINAGAR POWER GENERATING CO. PVT. LTD.

The JV Company was Incorporated on 09.09.2008 with Bihar State Electricity Board

OBJECTIVE To set up 3x660 MW Thermal Power Plant at New Nabinagar, Bihar

PROMOTERS' EQUITYNTPC: 50%BSEB: 50%

 

JVS FOR SERVICES

NTPC -ALSTOM POWER SERVICES PVT. LTD. (NASL)

The JV Company was incorporated in 1999 and formerly known as NTPC-ABB ALSTOM POWER SERVICES PVT. LTD)

OBJECTIVE Undertake Renovation & Modernisation of power stations in India and other

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SAARC countries

PROMOTERS' EQUITY

NTPC: 50% ALSTOM Power Generation AG : 50%

 

UTILITY POWER TECH LTD

This JV company incorporated in 1996 has been promoted with Reliance Infrastructure Limited (formerly BSES Limited) a private sector Indian power company.

OBJECTIVETo undertake project construction, erection and supervision in power sector and other sectors in India and abroad

PROMOTERS' EQUITY

NTPC: 50%Reliance Infrastructure Ltd.: 50%

 

ONLINE HIGH POWER TEST LABORATORY

This JV was incorporated along with NHPC, PGCIL and DVC on 22.05.2009

OBJECTIVE For short circuit testing facility for electrical equipments.

PROMOTERS' EQUITY

NTPC: 25%NHPC: 25%PGCIL: 25%DVC: 25%

 

JVs FOR POWER TRADING &POWER EXCHANGE

PTC(India) Ltd

This JV was incorporated in 1998, promoted by NTPC, Power Grid Corporation of India Ltd (PGCIL), Power Finance Corporation (PFC), and National Hydro Electric Power Corporation Ltd. (NHPC)

OBJECTIVETo trade, import, export and purchase power from identified power projects and sell it to identified SEBs/others

EQUITY COMPOSITION

Promoters’ Holding NTPC: 5.28% PGCIL: 5.28% PFC: 5.28%

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NHPC: 5.28% Others: Financial Institutions: 59.57%Non- Financial Institutions: 19.31

 

NATIONAL POWER EXCHANGE LTD.

This Joint venture Company was incorporated on 11.12.2008 alongwith NHPC, PFC and TCS

OBJECTIVETo facilitate nation - wide trading of all forms of contract for buying and selling of all forms of electrical energy for clearing and settlement of trade in a transparent, fair and open manner

PROMOTERS' EQUITY

NTPC: 16.67%NHPC :16.67%PFC: 16.66%TCS: 50%

 

JVs FOR COAL MINING

NTPC – SCCL GLOBAL VENTURES PRIVATE LTD

The JV Company with Singareni Coalieries Company Limited(SCCL) was incorporated on 31.07.2007

OBJECTIVETo jointly undertake Development and O & M of Coal Blocks(s) and Integrated Coal based Power Projects in India and overseas.

Promoters’ EQUITY

NTPC - 50 %SCCL – 50 %

 

INTERNATIONAL COAL VENTURES PVT. LIMITED (ICVL)

The JV Company was incorporated on 20.05.2009

OBJECTIVE For procurement of metallurgical coking coal and thermal coal from overseas.

PROMOTERS' EQUITY NTPC: 14.28%

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NMDC: 14.28%RINL: 14.28%CIL: 28.58%SAIL: 28.58%

 

JVs FOR MANUFACTURING & SUPPLY OF EQUIPMENT

NTPC-BHEL POWER PROJECTS PVT.LTD

The Joint Venture Company was incorporated on 28.04.2008 with BHEL

OBJECTIVE

To explore, secure and execute EPC contracts for Power plants and other Infrastructure projects in India and abroad.To engage in manufacturing and supply of equipments for power plants and other infrastructure projects in India and abroad.

Promoters’ EQUITY

NTPC: 50%BHEL : 50%

 

BF NTPCENERGY SYSTEM LIMITED.

This JV Company with Bharat Forge Limited(BF) was incorporated on 19.06.2008

OBJECTIVETo manufacture castings, forgings, fittings and High Pressure piping required for Power and other industries, Balance of Plant (BOP) equipment for the power sector etc.

PROMOTERS' EQUITY

NTPC: 49%BF : 51%

 

NTPC-TELK

The shares of Transformers & Electricals Kerala Ltd. (TELK)was bought by NTPC on 19.06.2009

OBJECTIVE For Manufacturing and repair of Transformers

PROMOTERS' EQUITY NTPC: 44.6%Govt. of Kerala: 54%

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Public: 1.4%

PROPOSED JOINT VENTURES /MOUs/ AGREEMENT’s

1.0 MOU signed amongst NTPC ADB,GE Energy Financial Services(USA),Kyushu Electric Power Inc.(Japan) and Brookfield Renewable Power Inc.(Canada) on 04.08.2008 for setting up a Joint Venture Company to undertake Renewable Power Generation projects.

2.0 A MoU was signed between NTPC, Govt. of Madhya Pradesh and MP Power Trading Company Ltd. on 9th of Nov, 2009 for setting up of a 4x660MW coal based thermal power station in Narsingpur District of MP.

3.0  A JVA was signed with Coal India Ltd.(CIL) on 12th Oct,2009 for mining coal from Brahmini and Chichro Patsimal coal mines and setting up of integrated power plants

4.0  JVA signed between NTPC, PFC, PGCIL and REC on 18th Nov, 2009 for implementation of Energy Efficiency Services

ACQUISITION

Business development through Acquisition serves both NTPC's own commercial interest as well as the interest of the Indian economy

Taking over, being a part of the acquisition process, is also an opportunity for NTPC to add to its power generation capacity at a very low gestation period. NTPC has, over the years, acquired the following three power stations belonging to other utilities/SEBs and has turned around each of them using its corporate abilities.

POWER STATIONS TAKEN OVER YEAR ORIGINAL OWNER

2x210 MW FEROZE GANDHI UNCHAHAR THERMAL POWER STATION

1991UP Rajya Vidyut Utpadan Nigam Limited

4x60 MW +2x110 MW TALCHER THERMAL POWER STATION Orissa State Electricity Board

1995 Orissa State Electricity Board

4x110 MW TANDA THERMAL POWER STATION 2000 UP Rajya Vidyut Utpadan

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Nigam Limited

705MW Badarpur Thermal Power Station Central Electricity Authority

2006 Central Electricity Authority

DIVERSIFICATION

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.

A.NUCLEAR POWER GENERATION

NTPC is also exploring possibilities to get into the field of Nuclear Power Generation. With this in view, NTPC is proposing to set up a nuclear power plant in Joint Venture with NPCIL.

B.BACKWARD INTEGRATION- COAL MINING

COAL MINING

The policy changes in coal sector provides an opportunity to NTPC to enter captive coal mining business. Production is expected by 2010 in one coal block already allotted (Pakri Barwadih in the state of Jharkhand). Five more blocks (~40MTPA) have been allotted to NTPC, including two in JV with CIL.

In addition to development of its own domestic coal mines NTPC is exploring various other options including acquisition of stake in coal mines abroad for sourcing of thermal coal for addressing fuel security concerns.

CONTACT ADDRESS

For further information and inquiry please contact us at the following address.

Executive Director (Consultancy Wing & New Business Development) NTPC Limited,Core-3, 5th Floor,Scope Complex,Lodhi Institutional Area,New DelhI-110003Tel: 91-11-24 363861,91-120-2410601 Fax: 91-11-24 360759,91-120-2410602Email: nksharma56@ntpceoc.co.in

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RESEARCH METHODOLGY 

The methodology section is the blue print for researcher activity and specifies how the investigator intents to study the policies and procedures of the industry. In other words, the methodology section make explicit the study desire and constitutes the “How to do it” phase. 

The project study has been conducted by taping both primary and secondary data is likely to play an important role for collecting the available data. I have put my best efforts to do this research and collect the necessary information to analyse about the topic thoroughly.

OBJECTIVE OF THE STUDY

First of all, it was necessary to define objective which becomes helpful to define boundaries so that the project can be concluded and can be completed on time with required and expected output. This objective can be divided or classified according to its size and subjects. So I define objective of my project and divided it in various sub parts so that each part can be completed subsequently and simultaneously as needed.

SCOPE OF THE STUDY

One can gain insight about what changes are desirable and needed. Evaluation of schedules of service charges of various banks helped in comparative analysis in the project. Evaluation process can help in formulating the financial policies and studies the different alternative sources, as it reveals the reduction in cost to the company. Scope can define the expectations and limit them in analysis. It helps to find out that

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what we want to do and what we can. In overall, scope of the study helps to limit expectations and give the idea and ways where we can move on the path.

SOURCES OF DATA

In the project we also had to decide the sources of data as every data is not as freely available every time. We need to identify our requirements and find out the source where we can acquire from at right time. For timely completion with accuracy we need right sources of data. These sources can be primary or secondary. Sometimes secondary sources need confirmation through primary for assurance. As the world is being dynamic so secondary data is not much reliable as well as each one can have their own views, perception so primary data is also not 100% accurate. We have to balance and find out our requirement on our own decisions according to need.

ASSUMPTIONS

During the project we have to make some assumptions because of many reasons such as all data is not available, some measurements are not possible, dynamic environments, volatile situations etc. We make some hypothesis and during the research and analysis, make some assumption with some relations to complete the project with expected output.

LIMITATION OF THE STUDY

In the study whatever, we want, is not possible. Our project can have some limitations because of reason like dependence of many variables. Such limitations sometimes restrict us but scope of the project gives us the guidelines at the same time. These limitations help in setting up boundaries for others in taking conclusion with some assumptions. 

I started with defining objective of my project, keeping in mind the objective of my summer internship given in the curriculum and my own learning experiences during the project. I learned various things in this duration apart from the study like work culture, organizational behaviour, management processes etc.

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NTPC Limited Consolidated Financial StatementsACCOUNTING POLICIES1. BASIS OF PREPARATIONThe financial statements are prepared on accrual basis of accounting under historical cost convention in accordance with generallyaccepted accounting principles in India and the relevant provisions of the Companies Act, 1956 including accounting standardsnotified there under.2. USE OF ESTIMATESThe preparation of financial statements requires estimates and assumptions that affect the reported amount of assets, liabilities,revenue and expenses during the reporting period. Although such estimates and assumptions are made on a reasonable andprudent basis taking into account all available information, actual results could differ from these estimates & assumptions and suchdifferences are recognized in the period in which the results are crystallized.3. GRANTS-IN-AID3.1 Grants-in-aid received from the Central Government or other authorities towards capital expenditure as well as consumers’contribution to capital works are treated initially as capital reserve and subsequently adjusted as income in the same proportionas the depreciation written off on the assets acquired out of the grants.3.2 Where the ownership of the assets acquired out of the grants vests with the government, the grants are adjusted in thecarrying cost of such assets.

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3.3 Grants from Government and other agencies towards revenue expenditure are recognized over the period in which therelated costs are incurred and are deducted from the related expenses.4. FIXED ASSETS4.1 Fixed Assets are carried at historical cost less accumulated depreciation.4.2 Expenditure on renovation and modernisation of fixed assets resulting in increased life and/or efficiency of an existing assetis added to the cost of related assets.4.3 Intangible assets are stated at their cost of acquisition less amortisation.4.4 Capital expenditure on assets not owned by the Company is reflected as a distinct item in Capital Work-in-Progress till theperiod of completion and thereafter in the Fixed Assets.4.5 Deposits, payments/liabilities made provisionally towards compensation, rehabilitation and other expenses relatable to landin possession are treated as cost of land.4.6 In the case of assets put to use, where final settlement of bills with contractors is yet to be effected, capitalisation is done onprovisional basis subject to necessary adjustment in the year of final settlement.4.7 Assets and systems common to more than one generating unit are capitalised on the basis of engineering estimates/assessments.5. CAPITAL WORK-IN-PROGRESS5.1 In respect of supply-cum-erection contracts, the value of supplies received at site and accepted is treated as Capital Workin-Progress.5.2 Administration and general overhead expenses attributable to construction of fixed assets incurred till they are ready for theirintended use are identified and allocated on a systematic basis to the cost of related assets.5.3 Deposit works/cost plus contracts are accounted for on the basis of statements of account received from the contractors.5.4 Claims on the Company for price variation/exchange rate variation in case of contracts are accounted for on acceptance.6. OIL AND GAS EXPLORATION COSTS6.1 The Company follows ‘Successful Efforts Method’ for accounting of oil & gas exploration activities.6.2 Cost of surveys and prospecting activities conducted in search of oil and gas are expensed off in the year in which these areincurred.6.3 All acquisition costs are initially capitalized as ‘Exploratory Wells-in-Progress’ under Capital Work-in-Progress.33rd Annual Report 183NTPC Limited Consolidated Financial Statements7. DEVELOPMENT OF COAL MINESExpenditure on exploration of new coal deposits is capitalized as ‘Development of coal mines’ under Capital Work-in-Progresstill the mines project is brought to revenue account.8. FOREIGN CURRENCY TRANSACTIONS

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8.1 Foreign currency transactions are initially recorded at the rates of exchange ruling at the date of transaction.8.2 At the balance sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary itemsdenominated in foreign currency are reported at the exchange rate ruling at the date of transaction.8.3 Exchange differences (loss), arising from translation of foreign currency loans relating to fixed assets/capital work-in-progressto the extent regarded as an adjustment to interest cost are treated as borrowing cost.8.4 Exchange differences arising from settlement / translation of foreign currency loans (other than regarded as borrowing cost),deposits / liabilities relating to fixed assets / capital work-in-progress in respect of transactions entered prior to 01.04.2004,are adjusted in the carrying cost of related assets. Such exchange differences arising from settlement / translation of long termforeign currency monetary items in respect of transactions entered after 01.04.2004 are adjusted in the carrying cost ofrelated assets.8.5 Other exchange differences are recognized as income or expense in the period in which they arise.9. BORROWING COSTSBorrowing costs attributable to the fixed assets during construction/renovation and modernisation are capitalised. Such borrowingcosts are apportioned on the average balance of capital work-in-progress for the year. Other borrowing costs are recognised asan expense in the period in which they are incurred.10. INVESTMENTS10.1 Current Investments are valued at lower of cost and fair value determined on an individual investment basis.10.2 Long term investments are carried at cost. Provision is made for diminution, other than temporary, in the value of suchinvestments.10.3 Premium paid on long term investments is amortised over the period remaining to maturity.11. INVENTORIES11.1 Inventories are valued at the lower of cost, determined on weighted average basis, and net realizable value.11.2 The diminution in the value of obsolete, unserviceable and surplus stores and spares is ascertained on review and provided for.12. PROFIT AND LOSS ACCOUNT12.1 INCOME RECOGNITION12.1.1 Sale of energy is accounted for based on tariff rates approved by the Central Electricity Regulatory Commission(CERC). In case of power stations where the tariff rates are yet to be approved/agreed, provisional rates are adopted.12.1.2 The incentives/disincentives are accounted for based on the norms notified/approved by the CERC. In cases of

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power stations where the same have not been notified/ approved, incentives/ disincentives are accounted for onprovisional basis.12.1.3 Advance against depreciation, forming part of tariff to facilitate repayment of loans, is reduced from sales andconsidered as deferred revenue to be included in sales in subsequent years.12.1.4 Exchange differences on account of translation of foreign currency borrowings recoverable from or payable to thebeneficiaries in subsequent periods as per CERC Tariff Regulations are accounted as ‘Deferred Foreign CurrencyFluctuation Asset/Liability’. The increase or decrease in depreciation or interest and finance charges for the year dueto the accounting of such exchange differences as per accounting policy no. 8 is adjusted in sales.12.1.5 Exchange differences arising from translation/settlement of monetary items denominated in foreign currency to theextent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations areaccounted as ‘Deferred Foreign Currency Fluctuation Asset/Liability’ during construction period and adjusted in theyear in which the same becomes recoverable/payable.184 33rd Annual ReportNTPC Limited Consolidated Financial Statements12.1.6 The surcharge on late payment/overdue sundry debtors for sale of energy is recognized when no significant uncertaintyas to measurability or collectability exists.12.1.7 Interest/surcharge recoverable on advances to suppliers as well as warranty claims/liquidated damages are not treatedas accrued due to uncertainty of realisation/acceptance and are therefore accounted for on receipt/acceptance.12.1.8.1 Income from consultancy services is accounted for on the basis of actual progress/technical assessment of workexecuted, in line with the terms of respective consultancy contracts.12.1.8.2 Claims for reimbursement of expenditure are recognized as other income, as per the terms of consultancy servicecontracts.12.1.9 Scrap other than steel scrap is accounted for as and when sold.12.1.10 Insurance claims for loss of profit are accounted for in the year of acceptance. Other insurance claims are accountedfor based on certainty of realisation.12.2 EXPENDITURE12.2.1 Depreciation is charged on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956except for the following assets at the rates mentioned below:a) Kutcha Roads 47.50 %b) Enabling works- residential buildings including their internal electrification. 06.33 %

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- non-residential buildings including their internal electrification, water supply, 19.00 %sewerage & drainage works, railway sidings, aerodromes, helipads and airstrips.c) Personal computers and Laptops including peripherals 19.00 %d) Photocopiers and Fax Machines 19.00 %e) Air conditioners, Water coolers and Refrigerators 08.00 %12.2.2 Depreciation on additions to/deductions from fixed assets during the year is charged on pro-rata basis from/up tothe month in which the asset is available for use/disposal.12.2.3 Assets costing up to Rs.5000/- are fully depreciated in the year of acquisition.12.2.4 Cost of software recognized as intangible asset, is amortised on straight line method over a period of legal right touse or 3 years, whichever is earlier.12.2.5 Where the cost of depreciable assets has undergone a change during the year due to increase/decrease in long termliabilities on account of exchange fluctuation, price adjustment, change in duties or similar factors, the unamortisedbalance of such asset is charged prospectively over the residual life determined on the basis of the rate of depreciation.12.2.6 Where the life and/or efficiency of an asset is increased due to renovation and modernization, the expenditurethereon along-with its unamortized depreciable amount is charged prospectively over the revised useful lifedetermined by technical assessment.12.2.7 Machinery spares which can be used only in connection with an item of plant and machinery and their use isexpected to be irregular, are capitalised and fully depreciated over the residual useful life of the related plant andmachinery.12.2.8 Capital expenditure on assets not owned by the company is amortised over a period of 4 years from the year inwhich the first unit of project concerned comes into commercial operation and thereafter from the year in which therelevant asset becomes available for use. However, such expenditure for community development in case of stationsunder operation is charged off to revenue.12.2.9 Leasehold buildings are amortised over the lease period or 30 years, whichever is lower. Leasehold land and buildings,whose lease period is yet to be finalised, are amortised over a period of 30 years.12.2.10 Expenses on ex-gratia payments under voluntary retirement scheme, training & recruitment and research anddevelopment are charged to revenue in the year incurred.33rd Annual Report 185NTPC Limited Consolidated Financial Statements12.2.11 Preliminary expenses on account of new projects incurred prior to approval of feasibility report are charged torevenue.

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12.2.12 Actuarial gains/losses in respect of ‘Employee Benefit Plans’ are recognised in the statement of Profit & Loss Account.12.2.13 Net pre-commissioning income/expenditure is adjusted directly in the cost of related assets and systems.12.2.14 Prepaid expenses and prior period expenses/income of items of Rs.100,000/- and below are charged to naturalheads of accounts.12.2.15 Carpet coal is charged off to coal consumption. However, during pre-commissioning period, carpet coal is retainedin inventories and charged off to consumption in the first year of commercial operation. Windage and handlinglosses of coal as per norms are included in cost of coal.13. FINANCE LEASES13.1 Assets taken on lease are capitalized at fair value or net present value of the minimum lease payments, whichever is lower.13.2 Depreciation on the assets taken on lease is charged at the rate applicable to similar type of fixed assets as per accountingpolicy no. 12.2.1. If the leased assets are returnable to the lessor on the expiry of the lease period, depreciation is chargedover its useful life or lease period, whichever is shorter.13.3 Lease payments are apportioned between the finance charges and outstanding liability in respect of assets taken on lease.14. PROVISIONS AND CONTINGENT LIABILITIESA provision is recognised when the company has a present obligation as a result of a past event and it is probable that an outflowof resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions aredetermined based on management estimate required to settle the obligation at the balance sheet date and are not discounted topresent value. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts. These arereviewed at each balance sheet date and are adjusted to reflect the current management estimate.15. CASH FLOW STATEMENT

Cash flow statement is prepared in accordance with the indirect method prescribed in Accounting Standard (AS) 3 on ‘Cash flow statement’.

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P & l of year 2008-2009

NTPC

« Previous Years Next Years »

Profit & Loss account ------------------- in Rs. Cr. -------------------

  Mar '08 Mar '09

  12 mths 12 mths

Income

Sales Turnover37,302.40

42,196.80

Excise Duty 211.40 221.60

Net Sales37,091.00

41,975.20

Other Income 3,119.70 3,012.80

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profit

NTP 200803

200803 200903

Stock Adjustments 0.00 0.00

Total Income40,210.70

44,988.00

Expenditure

Raw Materials 26.80 31.00

Power & Fuel Cost22,160.70

27,292.30

Employee Cost 2,229.30 2,897.60

Other Manufacturing Expenses 920.00 940.00

Selling and Admin Expenses 389.80 473.20

Miscellaneous Expenses 368.20 394.90

Preoperative Exp Capitalised -544.70 -637.40

Total Expenses25,550.10

31,391.60

Mar '08 Mar '09

  12 mths 12 mths

Operating Profit11,540.90

10,583.60

PBDIT14,660.60

13,596.40

Interest 1,982.20 1,737.00

PBDT12,678.40

11,859.40

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Depreciation 2,138.50 2,364.50

Other Written Off 3.10 3.60

Profit Before Tax10,536.80

9,491.30

Extra-ordinary items -114.00 1,305.20

PBT (Post Extra-ord Items)10,422.80

10,796.50

Tax 2,994.20 2,554.70

Reported Net Profit 7,414.80 8,201.30

Total Value Addition25,523.30

31,360.60

Preference Dividend 0.00 0.00

Equity Dividend 2,885.90 2,968.30

Corporate Dividend Tax 490.50 501.70

Per share data (annualised)

Shares in issue (lakhs)82,454.64

82,454.64

Earning Per Share (Rs) 8.99 9.95

Equity Dividend (%) 35.00 36.00

Book Value (Rs) 65.81 71.55

 

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balance

NTP 200503

200903 200903

NTPC

Balance Sheet ------------------- in Rs. Cr. -------------------

  Mar '08 Mar '09

  12 mths 12 mths

Sourses of fund

Total Share Capital 8,245.50 8,245.50

Equity Share Capital 8,245.50 8,245.50

Share Application Money 0.00 0.00

Preference Share Capital 0.00 0.00

Reserves 46,021.90 50,749.40

Revaluation Reserves 0.00 0.00

Networth 54,267.40 58,994.90

Secured Loans 7,314.70 8,969.60

Unsecured Loans 19,875.90 25,598.20

Total Debt 27,190.60 34,567.80

Total Liabilities 81,458.00 93,562.70

  Mar '08 Mar '09

  12 mths 12 mths

Gross Block 53,368.00 62,353.00

Less: Accum. Depreciation 27,274.30 29,415.30

Net Block 26,093.70 32,937.70

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200903 200903

Capital Work in Progress 22,478.30 26,404.90

Investments 15,267.20 13,983.50

Inventories 2,675.70 3,243.40

Sundry Debtors 2,982.70 3,584.20

Cash and Bank Balance 473.00 271.80

Total Current Assets 6,131.40 7,099.40

Loans and Advances 9,936.20 7,826.10

Fixed Deposits 14,460.20 15,999.80

Total CA, Loans & Advances 30,527.80 30,925.30

Deffered Credit 0.00 0.00

Current Liabilities 5,548.40 7,439.20

Provisions 7,360.60 3,249.50

Total CL & Provisions 12,909.00 10,688.70

Net Current Assets 17,618.80 20,236.60

Miscellaneous Expenses 0.00 0.00

Total Assets 81,458.00 93,562.70

Contingent Liabilities 29,361.80 66,083.20

Book Value (Rs) 65.81 71.55

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NTPC

« Previous Years  

Cash Flow ------------------- in Rs. Cr. -------------------

  Mar '08 Mar '09

  12 mths 12 mths

Net Profit Before Tax 10529.40 9467.80

Net Cash From Operating Activities 10171.10 9688.10

Net Cash (used in)/fromInvesting Activities

-6203.80 -7500.40

Net Cash (used in)/from Financing Activities

-2348.70 -849.30

Net (decrease)/increase In Cash and Cash Equivalents

1618.60 1338.40

Opening Cash & Cash Equivalents 13314.60 14933.20

Closing Cash & Cash Equivalents 14933.20 16271.60

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cashflow

NTP 200503

200903 200903

What is ratio analysis ?

When it comes to investing, analyzing financial statement information (also known as quantitative analysis), is one of, if not the most important element in the fundamental analysis process. At the same time, the massive amount of numbers in a company's financial statements can be bewildering and intimidating to many investors. However, through financial ratio analysis, you will be able to work with these numbers in an organized fashion.

The objective of this tutorial is to provide you with a guide to sources of financial statement data, to highlight and define the most relevant ratios, to show you how to compute them and to explain their meaning as investment evaluators.

In this regard, we draw your attention to the complete set of financials for Zimmer Holdings, Inc. (ZMH), a publicly listed company on the NYSE that designs, manufactures and markets orthopedic and related surgical products, and fracture-management devices worldwide. We've provided these statements in order to be able to make specific reference to the account captions and numbers in Zimmer's financials in order to illustrate how to compute all the ratios.

Among the dozens of financial ratios available, we've chosen 30 measurements that are the most relevant to the investing process and organized them into six main categories as per the following list:

1) Liquidity Measurement Ratioso - Current Ratioo - Quick Ratioo - Cash Ratioo - Cash Conversion Cycle

2) Profitability Indicator Ratioso - Profit Margin Analysiso - Effective Tax Rateo - Return On Assets o - Return On Equityo - Return On Capital

Employed 3) Debt Ratios

o - Overview Of Debto - Debt Ratioo - Debt-Equity Ratioo - Capitalization Ratioo - Interest Coverage Ratioo - Cash Flow To Debt Ratio

4) Operating Performance Ratioso - Fixed-Asset Turnovero - Sales/Revenue Per Employeeo - Operating Cycle

5) Cash Flow Indicator Ratioso - Operating Cash Flow/Sales Ratioo - Free Cash Flow/Operating Cash

Ratio o - Cash Flow Coverage Ratio o - Dividend Payout Ratio

6) Investment Valuation Ratioso - Per Share Datao - Price/Book Value Ratioo - Price/Cash Flow Ratioo - Price/Earnings Ratio o - Price/Earnings To Growth Ratioo - Price/Sales Ratioo - Dividend Yieldo - Enterprise Value Multiple

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1. Liquidity Measurement Ratio :-

The first ratios we'll take a look at in this tutorial are the liquidity ratios. Liquidity ratios attempt to measure a company's ability to pay off its short-term debt obligations. This is done by comparing a company's most liquid assets (or, those that can be easily converted to cash), its short-term liabilities.

Current ratio :-

Quick ratio :-

Cash ratio :-

Cash conversion cycle ratio :-

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2) Profitability Indicator Ratios

This measures of corporate profitability and financial performance. These ratios, much like the operational performance ratios, give users a good understanding of how well the company utilized its resources in generating profit and shareholder value.

The long-term profitability of a company is vital for both the survivability of the company as well as the benefit received by shareholders. It is these ratios that can give insight into the all important "profit".

Profit margin analysis :-

Effective tax rate:-

Return On Assets :-

Return On Equity :-

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Return On Capital Employed :-

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3) Debt Ratios

These ratios give users a general idea of the company's overall debt load as well as its mix of equity and debt. Debt ratios can be used to determine the overall level of financial risk a company and its shareholders face. In general, the greater the amount of debt held by a company the greater the financial risk of bankruptcy.

Debt Ratio:-

Debt-Equity Ratio :-

Capitalization Ratio :-

Interest Coverage Ratio :-

Cash Flow To Debt Ratio

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4) Operating Performance Ratios

Each of these ratios have differing inputs and measure different segments of a company's overall operational performance, but the ratios do give users insight into the company's performance and management during the period being measured.

Fixed-Asset Turnover :-

Sales/Revenue Per Employee :-

Operating Cycle :-

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5) Cash Flow Indicator Ratios

The cash being generated in terms of how much is being generated and the safety net that it provides to the company. These ratios can give users another look at the financial health and performance of a company.

Operating Cash Flow/Sales Ratio :-

Free Cash Flow/Operating Cash Ratio :-

Cash Flow Coverage Ratio :-

Dividend Payout Ratio

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6) Investment Valuation Ratios

This last ratio looks at a wide array of ratios that can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation.

Per Share Data :-

Per-share data can involve any number of items in a company's financial position. In corporate financial reporting - such as the annual report, Forms 10-K and 10-Q (annual and quarterly reports, respectively, to the SEC) - most per-share data can be found in these statements, including earnings and dividends.

Price/Book Value Ratio :-

Price/Cash Flow Ratio :-

Price/Earnings Ratio :-

Price/Earnings To Growth Ratio :-

Price/Sales Ratio :-

Dividend Yield :-

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Enterprise Value Multiple :-

ANALYSIS OF RATIO :- (all the figure in crores Rs.)

Current ratio = current asstes / current liabilities

2008 2009

Current ratio= 17618.80/5548.40 =20236.60/7439.20

= 3.17:1 = 2.72:1

Net profit ratio = net profit / net sales*100

2008 2009

Net profit ratio = 10529.40/37091.00*100 =9467.80/41975.20*100=28.38% =22.71%

Total assets turnover = sales / total assets

2008 2009

=37091.00/81,458.00 =37091.00/93562.70

= 0.45 times =0.39 times

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CONCLUSION 

From the analysis done it is clear that it is competitive era of all types of business. To survive in the corporate each has to be competitive and provide services and products in lesser cost with better services and quality which provides hassle free work to the user.  

During my project I learned that the current environment is dynamic and so much competitive . 

I have analysis of ratio of NTPC on which I have found that the production of NTPC is goes on increasing day by day and the profit margin is also increasing simultaneously

SWOT ANALYSIS OF NTPC

STRENGTHS:

NTPC is a diversified company manufacturing electricity. The company is having its own power plant, thus reducing dependence on RSEB. Computerize plants having less dependence on work force. Quality improvement program at anta plant improves the quality of product.

.

WEAKNESSES:

Wet process of cement production consumes high power cost. Budgetary control is not implicated properly. Actual performance is very far from

budgeted estimates. The plant is not gas based, thus manufacturing costs are high. NTPC have different joint ventures and having a plants in different part of the country. NTPC produces power with hydel energy, coal energy, as well as gas power plant.

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OPPORTUNITIES:

Govt. infrastructure efforts provide good fortune for power industry. . NTPC is emerging power plant industry in country.

THREATS:

Number of growing competitors.

Overall growth of Indian economy is very less comparison to other developing countries...

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ORGANIZATIONAL PROCESSES 

The objective of the summer internship is not necessarily to apply the theories we learned in the course but also to learn the organizational behaviour and observe the relationship between technology and human processes. As I spent my 7 weeks in the organizational named NTPC national thermal power corporation Ltd., Anta, I observed various human processes going on there. I am no-one to define and analyse them but can make my own assumption and of course there can be biased ness from my side during this observation. I observed the work culture of staff, people related to NTPC somehow. 

As I observed, the behaviour among the staff were dependent on the hierarchy of management. The same level of management seems to be quite informal but the difference in hierarchy makes it formal. In my department there was one Addl. General Manager then Managers of different sections, then section officer of grade A and then grade B. This hierarchy also seems sometime because of age. The older people get respect and informal to all but the younger generation were quite formal to seniors. All the employees used to call each other by surnames or names if common. Sometimes to respect older or senior they used to call ‘sir’ or ‘bade Sahab’. When I was working there, I was confused in such formalities sometimes because some new recruited were too informal to me. 

The relationship in the section was stronger than in whole department. It may be because of confidentially part of the organization. All the employees sit together for lunch and chit chats. They gossip on personal matters as well as about seniors and company policies. Some seniors participate in the processes and become informal at that time. All these talks informed me about the processes and culture prevalent in the organization. I liked to observe such processes and used to do it during my work also. Till my ending of project, I have become familiar to all and seem as employee there. 

My experience of the summer training and the comments on the processes prevalent in the organization is as follows: 

RESOURCES

I observed during the training that availability of resources affects the productivity a lot. Simultaneously it affects the work culture indirectly. As the organization is completely SAP implemented but many times it happened that the limitation of logins became a hurdle to the work. Some employee who were informal to me, used to come and sit with me for a time when login is not available and they were unable to work. The security also became issues sometime because of same logins were being used by more than one. It was a big hurdle in productivity but sometimes it helps to relax employees. Many times if network fails or system fails, employee got relaxed for a certain period. Sometimes I also felt same problem with me because there was no arrangement for summer interns so I used to work on others computers or tables. 

MOTIVATIONAL FORCES

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I observed the policies followed by HR department to improve productivity and satisfaction of employees. There were weekly meeting on fire & safty, compulsory course of meditation and yoga, relaxation techniques during work, care of section technical things. Once I observed, a person came with machine to analyse the lighting on each table so that employee can be satisfied and it was precaution for some health problems. Fire and safety meeting led to no clam and injury in the department. I observed there were only one injury in last 6 years which was also required only first aid. It affects the employees’ relationship with the organization. I also attended workshops of Meditation and Yoga as it was compulsory for all. The employees were satisfied and also curious to know more about their health improvement. There was feedback session of everything which helps to know more what must be there. It was totally informal so there was no question of management behaviour. Parking was compulsory in ‘Ready to move’ direction for all so anybody who did wrong was told by others to do it right. It also ensures the informal behaviour in precautionary measures. 

MOTIVATIONAL FORCES

Employees are motivated to work hard for the company when they feel that they matter for the company. I could not know the reason behind it but for the company they were loyal. It may be because of satisfaction, long work relationship, attachment with company, company policies, good salary or perks. There are certain awards and rewards given to the employees for the excellence achieved in the work. There were also some small moments matter at times e.g., celebrating an employee’s birthday, arranging a party to get together. I cannot say to what extent these things lead to an employee’s attachment with the organization but all these celebrations really get the people closer. 

COMMUNICATION PROCESSES

Communication in the company is both ways. During the internship I have observed that there is an open culture prevalent in the organization wherein anyone can approach any of the departmental heads at any point in time. This was the best thing which I also liked most. Anybody can approach anyone in the department, with reason to talk. No reception or security person stops to meet within the department. It looks quite good so that any little problem can be discussed and problem in communication can not lead to lost in data.  

INTERACTION-INFLUENCE PROCESSES

As I wrote earlier that the difference in level, sometimes, makes difference in the way of interaction. Same level was informal in interaction but different level was formal about the work

DECISION MAKING PROCESSES

Since SAP is implemented all through the company it seems but obvious that the data made available to the decision makers is accurate. But, I observed that finance department does not share its data with other departments and sections within also. I was also ordered not to share the data with anyone. I was even asked to delete all the soft copies of my work apart from the one submitted to my guide. This is the main reason that although I was working continuously but

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without showing the requirements I could not use the data from the company and also could not go to the banks directly to gather the data. I could not get the data many times when I needed. 

OVERTIME WORK

I observed during the internship that although the time was 8.30 AM to 5.00 PM, the employees of finance department used to stay late and come to office on Saturdays-Sundays also, which was supposed to be the weekly half or off. It might be because of they had to prepare the final consolidated report of financial year. But later I knew that this is usual to be here till late or on Saturday at least. But nobody was frustrated because to this reason, perhaps they enjoyed the work. 

WASTE

Everybody in the organization was supposed to make wastage lesser. Maximum work was paperless. They used to have soft copy and one hard copy to store. But as company is SAP implemented mostly work is done on computers. Communication is also through intranet so paper stationary was not being wastage. As my work was too much to thing, so I was supposed to submit soft copies and sometimes hard copy also to show seniors. Hard copies were used to make the data confidential. 

EMPLOYEE DRIVEN ACTIVITIES

Some activities I observed were totally employee driven. The sign board required in the department were designed and decided by employees themselves. Some internal policies of section were also decided by staff only. There is no interference of management in sectional policies. The notice board was also opened to all to put their suggestions and feedback. 

MANAGEMENT AND LABOUR

The most important thing I observed in the organization was worst. As I used to go to factory canteen to have my lunch, the timing was not arranged. My department lunch break was 1:15 pm to 2 pm. But canteen closing time was 1 pm. It led to dissatisfaction in employees sometimes. They had to go to guest house for lunch at that time by paying higher cost. The other important thing was the relationship among the workers and management. I used to observe many times that there is partiality done by staff with workers. Once I listen the statement “Sir, we do physical work, at least we have right to have food before and better than you.” I was shocked when I heard it. But it was not because of company policies, it is personal behaviour maintained by canteen staff, management, and workers. But this important experience was really shocking to me and to know about the labour relationship within the company. 

The other all organizational processes were usual, not to mention specially. The management processes are really difficult to implement. It’s not easy to implement what management thinks every time. The theories are not 100% true for implementation every time. It can give different output whether input is right, it also depends on processes.

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THE LEARNING EXPERIENCE 

It was really a learning experience for me to do Summer Internship training in the organization NTPC Ltd. The learning experience includes my hypothesis, expectation, experience in organization and also some experience out of the organization. It was my first experience to work in such a big organization with no guidelines and with liberty. I got the liberty to plan out my activities by my own but restricted by some boundaries. This training taught me that the classroom learning is very different from real life situations. I really experience that practical experience is far different than theoretical learning. I felt that it is important to apply the classroom learning in the work in your own way as each individual is different and have some qualities in own to do some in his own style. 

Initially I was loaded with a lot of perceptions and worried about the way summer trainees are treated in the organizations. But, I found the reality completely different from what I heard before. There is some difference in summer trainees and employees but trainees are not treated as labour in the organization because they are showcase of organization with two months experience. 

I learned various things apart from my project studies like HR policies, Organizational Behaviour, Management Process, System Thinking, Information studies etc. This experience changed my perspective of looking at things. The practical seems easier than reading and analysing in theories. The more important is that we can observe the processes in between and can look at outputs and fold processes in between. 

I learned to work in a system which is interconnected closely. Some have to give to get something. As I was good enough in technical tools of computer so many times I saved my self in problematic situation and as well as may times I helped to save other time. During my training, I have become so familiar that new trainees were forced to do work with me so that they can achieve their goal quicker. I really observed that different one have different qualities and combination make stronger. I learned team work there with colleagues. Some old trainees helped me to make me aware about the work culture which was really important for me. It was like training before training by the colleagues. 

I learned the work of department and observed the unseen bond within the departments which is necessary in the systems. It helps me to focus on my subject of system thinking that there are some boundaries and interconnection in sub-systems. 

I can not say that this training can make me perfect to work in any organization or in finance department but this can give me a guideline for future which can help me to fold my self according to situation, so that I can give my input in the system to be processed.

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BIBLIOGRAPHY 

Online Information

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NTPC intranet

1. https://www.ntpc.co.in/2. www.ntpcindia.com/

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