Adm Ananlysis for Ntpc

Only available on StudyMode
  • Download(s) : 77
  • Published : January 8, 2013
Open Document
Text Preview
Paper submission ADM for NTPC

NTPC Ltd.
NTPC Limited (earlier known as National Thermal Power Corporation) is the largest Indian state-owned electric utilities company, with headquarters in New Delhi, India. Ranked at 348, it is listed in Forbes Global 2000 for 2011. It is a public sector company (listed on the BSE) in which the Indian Government holds 84.5% (after divestment of the stake by Indian government on 19 October 2009) of its equity. Engineering, operation of power generating plants and construction are its core business as well as providing consultancy to power utilities in India and abroad.  It is plays a vital role in the entire value chain of the power generation business and diversified itself in the power sector. Its current total installed capacity across the country is 39,674 MW with 16 coal based and seven gas based stations. The company’s contribution towards total power generation due to its focus on high efficiency is 29% although it has only 19% of the total national capacity.  In October 2004, NTPC launched its Initial Public Offering (IPO) and thus became a listed company in November 2004 with the Government being the major shareholder. In February 2010, Further Public Offer reduced the Shareholding of Government of India.

It is considered as one of the Best Workplace in India among large organizations. The Great Places to Work Institute, India Chapter in collaboration with The Economic Times awarded NTPC as the best PSU for the year 2010. It has elaborate expansion plans in order to meet the huge power demand of the country — it has a multi-pronged growth strategy to become a 50,000-mw plus company in near future. In order to achieve its goal it has undertaken the task of acquiring, developing and maintain the coal blocks which is a major source of its raw material. It is also building alliances for exchange of information and experts from different areas of the business to emerge as a stronger player in this sector. P&L STATEMENT

From the Profit & Loss Account of the company for the last 4 years, we excluded the Non-operating Income and Non-operating Expenses. Then we found out the total operating income and the total operating expenses. They are as follows:

Items| 2012| 2011| 2010| 2009| 2008|
Raw Materials| 45.24| 31.33| 31.10| 31| 26.8|
Power & Fuel Cost| 42171.65| 35796.30| 29689.10| 27292.30| 22160.70| Employee Cost| 3090.48| 3395.27| 2496.80| 2897.60| 2229.30| Other Manufacturing Expenses| 1529.24| 1273.14| 1096.60| 940.00| 920.00| Selling and Admin Expenses| 0.00| 2264.01| 578.50| 473.20| 389.80| Miscellanous Expenses| 1478.12| 525.63| 436.40| 394.90| 368.20| Depreciation| 2791.70| 2485.69| 2650.10| 2364.50| 2138.50| Preoperative Exp Capitalised| 0.00| -1052.98| -866.90| -637.40| -544.70| Total Operating Expenses| 51106.43| 44718.46| 36561.70| 33756.10| 27688.60| Operating Profit| 13737.50| 12705.91| 12466.10| 10583.60| 11540.90| Table 1: Operating Expenses

 Items| 2012| 2011| 2010| 2009| 2008|
Inventory Level| 3702.85| 3639.12| 3347.70| 3243.40| 2657.70| Change in Inventories Level| 63.73| 291.42| 104.3| 567.7| -| Table 2: Inventory Levels

Items| 2012| 2011| 2010| 2009| 2008|
Raw Materials| 0.09%| 0.07%| 0.09%| 0.09%| 10.50%|
Power & Fuel Cost| 82.52%| 80.05%| 81.20%| 80.85%| 80.04%| Employee Cost| 6.05%| 7.59%| 8.06%| 8.58%| 8.05%|
Other Manufacturing Expenses| 2.99%| 2.85%| 3.00%| 2.78%| 3.32%| Selling and Admin Expenses| 0.00%| 5.06%| 1.58%| 1.40%| 1.41%| Miscellaneous Expenses| 2.89%| 1.18%| 1.19%| 1.17%| 1.33%| Depreciation| 5.46%| 5.56%| 7.25%| 7.00%| 7.72%|

Pre-operative Expenses Capitalised| 0.00%| -2.35%| -2.37%| -1.89%| -1.97%| Table 3: Cost Comparison

Item| Classification|
Change in inventory level| Variable Cost|
Raw materials| Variable Cost|
Power & fuel|...
tracking img