Professional Documents
Culture Documents
Particulars
Sources of funds share holders funds
Capital
Reserves and Surpluses
Deferred revenue on account against
depreciation
LOAN FUNDS
Secured Loans
Unsecured Loans
Deferred tax liability (NET)
Less: Recoverable
TOTAL
APPLICATION OF FUNDS
FIXED ASSETS
Gross block
Less: Depreciation
Net Block
Capital work in progress
Construction stores & advances
Investments
Current assets loan & advances
Inventories
Sundry debtors
Cash & Bank balances
Other current assets
Loans & Advances
2010-2011
2011-12
Change
(Rupees)
(Rupees)
Amount
Percentage
(%)
82455
361132
443587
4408
82455
403513
485968
6567
42381
42381
2159
11.7
9.6
49.0
57327
144646
206381
53224
53223
1
649968
68229
176615
251411
54427
54426
1
737379
10902
31969
45030
1203
1203
87411
19.0
22.1
21.8
2.3
2.3
13.4
460396
299501
160895
103999
32341
297235
192891
507273
250792
256481
128567
39825
424873
160943
46877
(48709)
95586
24568
7484
127638
(31948)
10.2
(16.3)
59.4
23.6
23.1
23.1
(16.6)
23405
8679
84714
10161
30287
157246
25102
12583
133146
10580
40476
221887
1697
3904
48432
419
10189
64641
7.3
45.0
57.2
4.1
33.6
41.1
49102
12300
61402
54221
16042
70236
5119
3742
8861
10.4
30.4
14.4
95844
649968
151624
737379
55780
87411
58.2
13.4
Interpretation:
1. The company balance sheet of the company during the year 2009-10 reveals that the
current assets have increased by 64641 i.e. 41.1%.
2. There is increase in current assets we can say the short term solvency of the company is
good.
3. The current liabilities have increase by 8861 i.e. 14.4%.
4. Fixed assets have increased by 127638 i.e. 42.9%
5. There is increase in share holder funds of company that is why we can say the long term
solvency of the company is good satisfaction.
2011-2012
2012-13
Change
(Rupees)
(Rupees)
Amount
Percentage
(%)
82455
335308
417763
3374
82455
361132
443587
4408
25824
25824
1034
7.7
6.2
30.6
44407
26471
74252
50570
50569
1
492015
57327
144646
206381
53224
53223
1
649968
12920
118175
118175
2654
2654
157953
29.1
446.4
177.9
5.2
5.2
32.1
Investments
431062
207914
223148
67063
67063
322433
207977
460396
299501
160895
103999
32341
297235
192891
29334
91587
(62253)
36936
119
(25198)
(15086)
6.8
44.1
(27.9)
55.1
0.4
(7.8)
(7.3)
17777
13747
60783
23405
8679
84714
5628
(5068)
23931
31.7
(36.9)
39.4
9714
27052
129073
10161
30287
157246
447
3235
28173
4.6
12.0
21.8
52306
15161
67467
61606
492015
49102
12300
61402
95844
649968
3204
2861
6065
34238
157953
6.1
18.9
9.0
55.6
32.1
Interpretation:
1. The company balance sheet of the company during the year 2008-09 reveals that the
current assets have increased by 28172 i.e. 22%.
2. There is increase in current assets we can say the short term solvency of the company is
good.
3. The current liabilities have increase by 6065 i.e. 9.00%.
4. Fixed assets have decreased by -25198 i.e. -7.8%
5. There is increase in share holder funds of company that is why we can say the long term
solvency of the company is good satisfaction.
2011-2012
2012-13
Change
(Rupees)
(Rupees)
Amount
Percentage
(%)
78125
277376
355501
1591
82455
335308
417763
3374
4330
57932
62262
1783
5.5
20.9
17.5
112.1
45844
108684
156119
52280
82279
1
511620
44407
26471
74252
50570
50569
1
492015
(1437)
(82213)
(81867)
(1710)
(31710)
(19605)
(3.1)
(75.6)
(52.4)
(3.3)
(38.5)
(3.8)
400281
431062
30781
7.7
Less: Depreciation
Net Block
Capital work in progress
Construction stores & advances
Investments
Current assets loan & advances
Inventories
Sundry debtors
Cash & Bank balances
Other current assets
Loans & Advances
187736
212545
56413
18540
287498
173380
207914
223148
67063
67063
322433
207977
20178
10603
10650
13682
34935
34597
10.7
5.0
18.9
73.8
12.2
20.0
17380
4699
6091
80023
27275
135468
17777
13747
60783
9714
27052
129073
397
9048
54692
(70309)
(223)
(6395)
2.3
192.6
897.9
(87.9)
(0.8)
(4.7)
65244
15697
80941
54527
511620
52306
15161
67467
61606
492015
12938
536
(13474)
7079
(19605)
19.8
3.4
(16.6)
13.0
(3.8)
Interpretation:
1. The company balance sheet of the company during the year 2007-08 reveals that the
current assets have increased by -6395 i.e. 4.7%.
2. There is increase in current assets we can say the short term solvency of the company is
good.
3. The current liabilities have increase by 13474 i.e. 16.6%.
2010-2011
2011-12
Change
(Rupees)
(Rupees)
Amount
78125
237002
315127
271
78125
277376
355501
1591
7
40374
40374
1320
Percentage
(%)
17.0
12.8
487.1
depreciation
LOAN FUNDS
Secured Loans
Unsecured Loans
Deferred tax liability (NET)
Less: Recoverable
TOTAL
APPLICATION OF FUNDS
FIXED ASSETS
Gross block
Less: Depreciation
Net Block
Capital work in progress
Construction stores & advances
Investments
Current assets loan & advances
Inventories
Sundry debtors
Cash & Bank balances
Other current assets
Loans & Advances
41226
90931
132428
44379
44378
1
447555
45844
108684
156119
52280
82279
1
511620
4618
17753
23691
7901
37901
64065
11.2
19.5
17.9
17.8
85.4
14.3
366106
167456
198650
51543
12320
262513
36674
400281
187736
212545
56413
18540
287498
173380
34175
20280
13895
4870
6220
24985
136706
9.3
12.1
7.0
9.4
50.5
9.5
372.8
17712
124349
5447
25149
21475
194132
17380
4699
6091
80023
27275
135468
(332)
(119650)
644
54874
5800
(58664)
(1.9)
(96.2)
11.8
218.2
27.0
(30.2)
32202
11648
43850
150282
447555
65244
15697
80941
54527
511620
(33042)
(4049)
37091
95755
64065
(102.6)
(34.8)
84.6
63.7
14.3
Interpretation:
1. The company balance sheet of the company during the year 2012-13 reveals that the
current assets have increased by 58664 i.e. 30.2%.
2. There is increase in current assets we can say the short term solvency of the company is
good.
3. The current liabilities have increase by 37091 i.e. 84.6%.
4. Fixed assets have decreased by 24985 i.e. 9.5%
5. There is increase in share holder funds of company that is why we can say the long term
solvency of the company is good.
I.
LIQUIDITY RATIOS
CURRENT RATIO:
YEAR
Current Assets
Current Liabilities
Ratio
2008-09
160756
67324
2.39
2009-10
167799
48146
3.49
2010-11
194132
45850
4.23
2011-12
135468
80941
1.67
2012-13
159073
67467
2.36
Interpretation:
10
QUICK RATIO
YEAR
Quick Assets
Quick Liabilities
Ratio
2008-09
142400
67320
2.12
2009-10
147655
48140
3.07
2010-11
176420
45850
3.85
2011-12
118080
80946
1.46
2012-13
145650
67467
2.16
Interpretation:
11
YEAR
Long term
Liabilities
Shareholders fund
Ratio
2008-09
98047
258117
0.38
2009-10
115812
286453
0.4
2010-11
132157
315040
0.42
2011-12
138263
335501
0.41
2012-13
160878
417763
0.39
Interpretations:
12
PROPRIETARY RATIO:
YEAR
Net Worth
Total Assets
Ratio
2008-09
258117
423489
0.61
2009-10
280453
450411
0.62
2010-11
315040
493319
0.64
2011-12
355501
596346
0.6
2012-13
417763
659483
0.63
Interpretation:
13
YEAR
Fixed Assets
Capital Employed
Ratio
2008-09
184450
174657
1.06
2009-10
177697
176781
1.01
2010-11
190019
198650
0.96
2011-12
188178
212545
0.89
2012-13
225069
223148
1.01
Interpretation
14
YEAR
EBIT
Fixed Interest
Ratio
2008-09
51656
10918
4.73
2009-10
46201
8680
5.32
2010-11
47456
9916
4.79
2011-12
92594
33697
2.75
2012-13
77837
16958
4.59
Interpretation:
15
II.
INVENTORY RATIO:
YEAR
Cost of Goods
Sold
Average Inventory
Ratio
2008-09
14103
1975
7.14
2009-10
13830
1962
7.05
2010-11
15024
2096
7.17
2011-12
11250
1605
7.01
2012-13
10525
1512
6.96
Interpretation:
16
YEAR
Cost of Credit
Sales
Average Debtors
Ratio
2008-09
18256
2186
8.35
2009-10
17952
2170
8.27
2010-11
17236
2109
8.17
2011-12
17025
2052
8.3
2012-13
16986
2053
8.27
Interpretation:
17
YEAR
Credit Purchase
Average Creditors
Ratio
2008-09
18256
5256
3.47
2009-10
17952
4896
3.67
2010-11
17236
4860
3.55
2011-12
17025
5012
3.4
2012-13
16986
4806
3.53
Interpretation:
18
YEAR
Sales
Working Capital
Ratio
2008-09
189450
93427
2.03
2009-10
177697
119651
1.49
2010-11
190019
148282
1.28
2011-12
188178
54527
3.45
2012-13
225069
61606
3.65
Interpretation:
19
YEAR
Sales
Fixed Assets
Ratio
2008-09
189450
184657
1.03
2009-10
177697
176781
1.01
2010-11
190019
198650
0.96
2011-12
188178
212545
0.89
2012-13
225069
223385
1.01
Interpretations:
20
PROFITABILITY RATIOS
GROSS PROFIT RATIO:
YEAR
Gross Profit
Sales
Ratio
2008-09
51655
189450
0.27
2009-10
45700
179697
0.25
2010-11
38343
190019
0.2
2011-12
59080
188178
0.31
2012-13
60680
225069
0.26
Interpretation:
21
YEAR
Net Profit
Sales
Ratio
2008-09
37338
189450
0.2
2009-10
35396
179697
0.2
2010-11
36078
190019
0.19
2011-12
52608
188178
0.28
2012-13
58070
225069
0.26
Interpretation:
22
OPERATING RATIO:
YEAR
Operating
Profit
Sales
Ratio
2008-09
51656
189450
0.27
2009-10
46201
179697
0.26
2010-11
47456
190019
0.25
2011-12
92594
188178
0.49
2012-13
77758
225069
0.35
Interpretation:
23
YEAR
Average Total
Assets
Ratio
2008-09
37338
211745
0.18
2009-10
35396
225205
0.16
2010-11
36075
246660
0.15
2011-12
52608
298173
0.18
2012-13
58070
329742
0.18
Interpretation:
24
YEAR
EBIT
Capital Employed
Ratio
2008-09
51656
174657
0.3
2009-10
46201
176781
0.26
2010-11
47456
198650
0.24
2011-12
92594
212545
0.44
2012-13
77837
223148
0.35
Interpretation:
25
YEAR
PAT
Net worth
Ratio
2008-09
37338
258117
0.14
2009-10
35396
280453
0.13
2010-11
36075
315040
0.11
2011-12
52608
355501
0.15
2012-13
58070
417763
0.14
Interpretation:
26
CONCLUSIONS
The present study entitled Techniques of financial analysis in National Thermal Power
Corporation Ltd. Is taken up by me in partial fulfillment of the award of Degree of Master of
Business Administration. During my study, based on the data collected and presented the earlier
chapter the following observations were made.
1. The sales to assets ratio is reveals that except in 2007-08, in all the years it is more than I
indicating good sales position of the firm in the market.
2. During the study period the working capital position is found to be satisfactory. In last 2
years of study current assets are more than double to that of current liabilities.
3. The net profit is more in the last year i.e. 63.7% because of the reduced operation
expenses.
4. It is observed that the total assets are almost same during the same period with a slight
variation of 1% to 3%.
5. Over all the company current position is good but years 2005-06 & 2005-04 the company
current position not good.
6. The company paid to the dividend to shareholders in last year 2009-2010 it is the more
than the last 4 years company debt position is good.
7. The company equity capital in year 2005-06 is 78125 millions but last 3 years capital is
82455 millions is increase of 5.5%.
27
SUGGESTIONS
1. Company should maintain adequate liquidity.
2. To improve the liquidity position of the company it is suggested that the company shall
finance more in current assets or pay off part of current liabilities from long term funds.
3. Company should take the measure to promote its sales, which improves the profit of the
firm.
4. It should concentrate on long term funds. If long term funds are utilized for working
capital problem will not arise in future.
5. Company should maintain adequate reserves.
6. It should try to raise its owner equity to see that the interest burden (because of debt
capital) be reduced.
7. It should control the operating costs further and should also see that the cost of
production will be low.
8. A wise policy will be taken by the company to finance fixed assets by raising long term
funds.
9. Company should take some measure to increase the return on investment. It should try to
utilize the funds to the maximum extent.
28
BIBLIOGRAPHY
BOOKS:
Foster G, Financial Statements Analysis, Prentice-Hall, Englewood Cliff, 1986.
Helfert. EH Techniques for Financial Analysis, Irwin, Homewood, 1997.
M.Y.Khan and P.K Jain Financial Management, Tata McGraw-Hill.
R.K sharma and Shashi K.Gupta, Management Accounting, Sultan Chand & Sons, New
Delhi.
WEBSITES:
www.ntpc.co.in
www.ntpcindia.com
29