COMPARITIVE ANALYSIS OF FINANCIAL

STATEMENTS
USING RATIO ANAYLSIS OF
NATIONAL THERMAL POWER
CORPORATION
AND
TATA POWER COMPANY LTD.
SUBMITTED TO
PUNJAB UNIVERSITY, CHANDIGARH
IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE DEGREE OF
MASTER OF COMMERCE

SUBMITTED TO:
SUBMITTED BY:
DR. MANPREET KAUR
AMRIT KAUR
MAAN
(ASSISTANT PROFESSOR)
M.COM 2ND
SEMESTER
ROLL NO. 6831

POST GRADUATE DEPARTMENT OF COMMERCE

SHRI GURU GOBIND SINGH COLLEGE

SECTOR 26, CHANDIGARH

PUNJAB UNIVERISTY

DECLARATION

I, AMRIT KAUR MAAN, hereby declare that this project is the record of
authentic work carried out by me during the academic year 2015 2016 and has
not been submitted to any other University or Institute towards the award of any
degree.

DATE: _______
AMRIT KAUR MAAN
MCOM 2ND SEMESTER
ROLL NO. 6831
SHRI GURU GOBIND SINGH
COLLEGE,

SECTOR 26, CHANDIGARH

CERTIFICATE OF APPROVAL

This is to certify that Ms. Amrit Kaur Maan, student of MCOM 2nd Semester
in the Post Graduate Department of Commerce, Shri Guru Gobind Singh
College, Sector-26, Chandigarh has completed the project, Comparative
Analysis of Financial Statements using Ratio Analysis of National Thermal
Power Corporation and Tata Power Company Limited under my
supervision and guidance. She has done a lot of hard work in preparing the
project report.

DATE: _______
DR. MANPREET KAUR
(ASSISTANT PROFESSOR)
SHRI GURU GOBIND SINGH
COLLEGE
SECTOR- 26, CHANDIGARH

ACKNOWLDGEMENT

A formal statement of acknowledgement is hardly sufficient to express my

gratitude towards the people who helped me carry out this project. I hereby
convey my thankfulness to all those who provided me with valuable help,
support and guidance to carry on this project.
I would like to express my deep sense of gratitude to my project guide Dr.
Manpreet Kaur, my mentor, for her immerse support, help & cooperation at
every step of my project. Without her support this project would not have taken
in present form in reality.
I would like to thank all the faculty members of Shri Guru Gobind Singh
College for Women for extending help time to time for the fulfillment of this
project. Their invaluable guidance all through this project has enabled me to
complete project work in systematic manner.
I thank especially my parents for giving me monumental support and inspiration
during the course of this project. Last but not the least to all my friends who
helped me in every possible manner during the course of my project.

EXECUTIVE SUMMARY
India is one of the emerging giants of the world economy and international
energy markets. Energy development in India is transforming the global
energy system. India is increasingly exposed to changes in world energy
markets. The staggering pace of Indian economic growth in the past few
years, out ripping that of all other major countries, has pushed up sharply
their energy needs, a growing share of which has to be imported. The
momentum of economic development look set to keep their energy demand
growing strongly. As they become richer, the citizen of India are using more
energy to run their offices and factories, and buying more electrical
appliances
and cars. These developments are contributing to a big
improvement in their quality of life.
The consequences for India, the OECD and the rest of the world of unfettered
growth in global energy demand are, however, alarming. If government
around the world stick with current policies-the underlying premise of our
reference scenario-the worlds energy need would be well over 50% higher in
2030 than today, China and India together account for 45% of the increase in
demand in this scenario.
Globally, fossil fuels continue to dominate the fuel mix. These trend lead to
continued growth in energy-related emissions of carbon-dioxide (co2) and to
increased reliance of consuming countries to imports of oil and gas, much of
them from the Middle East and Russia. Both developments would heighten
concerns about climate change and energy security.
The challenges for all countries is to put in motion a transition to a more
secure, lower-carbon energy system, without undermining economic and social
development. There has so far been more talk than action in most countries.
Were all the policies that governments around the world are considering today
to be implemented, as we assume in an alternative policy scenario, the

worlds energy demand and related emissions would be reduced substantially.

Measure to improve energy efficiency stand out as the cheapest the fastest
way to curb demand and emissions growth in the near term.
The global increase in energy demand amounts to 6%, making it all the more
urgent for governments around the world to implement policies, such as those
taken into account in the alternative policy scenario, to curb the growth in
fossil-energy demand and related emissions.

INDEX
CHAPTE
R

TOPIC

PAGE
NO.

INTRODUCTION
1. SCENARIO OF POWER IN INDIA
INDUSTRY PROFILE
1. UNDERTAKING/COMPANY OVERVIEW
2. HISTORY
3. VISION, MISSION AND VALUES
4. OPERATIONS
5. LISTINGS AND SHAREHOLDERS
6. AWARDS AND RECOGNISTIONS
7. FUTURE GOALS
LITERATURE REVIEW
1. RATIO ANALYSIS
2. CLASSIFICATION OF RATIOS
RESEARCH METHOLOGY
1. MEANING
OF
RESEARCH
METHODOLOGY
2. OBJECTIVE OF THE STUDY
3. SCOPE OF THE STUDY
4. SOURCES OF INFORMATION
DATA
ANALYSIS
AND
INTERPRETATION

7-9

II

III

IV

10-21

2-27

28-31

32-46

VI

1. CURRENT RATIO
2. LIQUIDITY/QUICK RATIO
3. INVENTORY/
STOCK
TURNOVER
RATIO
4. DEBTOR TURNOVER RATIO
5. FIXED ASSET TURNOVER RATIO
6. DEBT TO EQUITY RATIO
7. NET PROFIT MARGIN RATIO
8. WORKING CAPITAL RATIO
CONCLUSIONS AND SUGGESTIONS
BIBLIOGRAPHY
APPENDIX

47-49
50
51

Chapter I
INTRODUCTION

 Scenario of Power in India

1.

Scenario of Power in India:

Electricity consumption in India has more than doubled in the last decade,
outpacing the economic growth. If we analyze the various statistics of Indian
power sector, we will find that the generating capacity has gone up
tremendously from a meager 1712MW in 1950 to a whooping 303,083 MW
today.
The critical role played by the power industry in the economic progress of a
country has
to be emphasized. A self sufficient power industry is vital for a nation to achieve
economic stability.
The electricity sector in India is predominantly controlled by Government of
India's public sector undertakings (PSUs). Major PSUs involved in the generation
of electricity include National Thermal Power Corporation (NTPC), National
Hydroelectric Power Corporation (NHPC) and Nuclear Power Corporation of India
(NPCI). Besides PSUs, several sector players like Tata Power and Reliance Energy,
are also involved in the generation and intra-state distribution of electricity. The
Power Grid Corporation of India is responsible for the inter-state transmission of
electricity and the development of national grid.
India is world's 6th largest energy consumer, accounting for 3.4% of global
energy consumption. Due to India's economic rise, the demand for energy has
grown at an average of 3.6% per annum over the past 30 years.

G,-,Generation,T,-,Transmission,D,,Distribution
Source: http://powermin.nic.in (Ministry,of,Power)

The total installed power generation capacity as in 31st May, 2016 is

303,083MW.

Growth of Installed Capacity in India

%
Nuclea
Thermal (MW)

Installe

Renewable (MW)

(MW)

Total

Growth

(MW

(on

yearly
basis)

Capacit
y
as on
Coal

Dies

Gas

el

Sub-

Hyd

Total

el

Thermal

Other

Sub-Total

Renewabl Renewabl
e

31Dec-

756

98

854

508

508

1,362

1,004

149

1,153

560

560

1,713

1,200

188,898

5,780

41,267

35,777

77,044

993

210,675

5,780

42,783

42,727

85,510

919

211,670

5,780

42,783

42,849

85,632

1947

31Dec-

8.59%

1950

31 Mar
2015

31 Mar
2016

31 May
2016

169,11

23,06

185,17

24,50

186,24

24,50

SOURCE: https://en.wikipedia.org/wiki/Electricity_sector_in_India

271,72
2

301,96
5

303,08
3

11.98%

11.13%

9.88%

The,two,companies,chosen,by,us,for,our,assignment,are,NTPC,which,is,the,benchm
ark,company,in,the,Power,sector,reporting,the,highest,turnover,year,on,year,and,TA
TA,Power,Limited,,another,major,play-er,in,power,production,and,transmission.,

Chapter-II
INDUSTRY
PROFILE
1.
2.
3.
4.
5.
6.
7.

Undertaking/ Company Overview

History
Vision, Mission and Values
Operations
Listings and Shareholdings
Awards and Recognitions
Future Goals

NATIONAL THERMAL POWER

CORPORATION (NTPC)
1.

Overview:

NTPC Limited (also known as National Thermal Power

Corporation Limited) is an Indian PSU Public Sector Undertaking,
engaged in the business of generation of electricity and allied activities. It
is a company incorporated under the Companies Act 1956 and a
"Government Company" within the meaning of the act. The headquarters
of the company is situated at New Delhi. NTPC's core business is
generation and sale of electricity to state-owned power distribution
companies and State Electricity Boards in India. The company also
undertakes consultancy and turnkey project contracts that involve
engineering, project management, construction management and
operation and management of power plants.

The company has also ventured into oil and exploration and coal
mining activities. It is the largest power company in India with an electric
power generating capacity of 45,548 MW.[5] Although the company has
approx. 16% of the total national capacity it contributes to over 25%
of total power generation due to its focus on operating its power
plants at higher efficiency levels (approx. 80.2% against the national Plant
Load Factor rate of 64.5%).[5]
It was founded by Government of India in 1975, which now holds 74.96%
of its equity shares on 30.09.2015 [6] (after divestment of its stake in
2004, 2010, 2013, and 2014)

In May 2010, NTPC was conferred Maharatna status by the Union

Government of India.[7] It is ranked 424th in the Forbes Global 2000 for
2014.[3]

Growth of NTPC installed capacity and

generation

The total installed capacity of the company is 47,178 MW (including JVs) with
18 coal based, 7 gas based stations and 1 Hydro based station. 9 Joint
Venture stations are coal based and 9 renewable energy projects. The
capacity will have a diversified fuel mix and by 2032, non fossil fuel based
generation capacity shall make up nearly 28% of NTPCs portfolio.
NTPC has been operating its plants at high efficiency levels. Although the
company has 17.73% of the total national capacity, it contributes 24% 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 the Government of India.
NTPC thus became a listed company in November 2004 with the Government
holding 89.5% of the equity share capital. In February 2010, the
Shareholding of Government of India was reduced from 89.5% to 84.5%
through a further public offer. Government of India has further divested 9.5%
shares through OFS route in February 2013. With this, GOI's holding in NTPC
has reduced from 84.5% to 75%. The rest is held by Institutional Investors,
banks and Public.
NTPC is not only the foremost power generator; it is also among the great
places to work. The company is guided by the People before Plant Load
Factor mantra which is the template for all its human resource related
policies. NTPC has been ranked as 6th Best Company to work for in India
among the Public Sector Undertakings and Large Enterprises for the year
2014, by the Great Places to Work Institute, India Chapter in collaboration
with The Economic Times.

2. History:
1975 to 1994
The company was founded in November 1975 as "National Thermal Power
Corporation Private Limited". It started work on its first thermal power
project in 1976 at Shaktinagar (named National Thermal Power
Corporation Private Limited Singrauli) in Uttar Pradesh. In the same year,
its name was changed to "National Thermal Power Corporation Limited". In
1983, NTPC began commercial operations (of selling power) and earned
profits of INR 4.5 crores in FY 1982-83. By the end of 1985, it had achieved
power generation capacity of 2000 MW. In 1986, it completed
synchronisation of its first 500 MW unit at Singrauli. In 1988, it
commissioned two 500 MW units, one each in Rihand and Ramagundam. In
1989, it started a consultancy division. In 1992, it acquired Feroze Gandhi
Unchahar Thermal Power Station (with 2 units of 210MW capacity each)
from Uttar Pradesh Rajya Vidyut Utpadan Nigam of Uttar Pradesh. By the
end of 1994, its installed capacity crossed 15,000 MW.

1995 to 2004
In 1995, it took over the Talchar Thermal Power Station from Orissa State
Electricity Board. In the year 1997, Government of India conferred it with
"Navratna" status. In the same year it achieved a milestone of generation
of 100 billion units of electricity in a year. [ In 1998, it commissioned its
first naptha-based plant at Kayamkulam with a capacity of 350 MW. In
1999, its plant in Dadri, which had the highest plant load factor (PLF) in
India of 96%, was certified with ISO-14001. During 2000, it commenced
construction of its first hydro-electric power project, with 800 MW capacity,
in Himachal Pradesh. In 2002, it incorporated 3 subsidiary companies:
"NTPC Electric Supply Company Limited" for forward integration by
entering into the business of distribution and trading of power; "NTPC
Vidyut Vyapar Nigam Limited" for meeting the expected rise in energy
trading; "NTPC Hydro Limited" to carry out the business of implementing

and operating small and medium hydro-power projects. In the same year
its installed capacity crossed 20,000 MW.
Listing: NTPC got listed on BSE and NSE on 5 November 2004. Against the
issue price of INR 62 per share, it closed the first day of listing with INR
75.55 per share. On the day of listing, it become the third largest company
in India in terms of market capitalisation.

2005 to present
In October 2005, the company's name was changed from "National Thermal
Power Corporation Limited" to "NTPC Limited".The primary reason for this
change was the company's foray into hydro and nuclear based power
generation along with backward integration by coal mining. In 2006, it
entered into an agreement with Government of Sri Lanka to set up two units
of 250 MW each in Trincomalee in Sri Lanka. During 2008 and 2011, NTPC
entered
into Joint
Ventures with
BHEL, Bharat
Forge, NHPC, Coal
India, SAIL, NMDC and NPCIL to expand its business of power generation. By
the end of 2010, its installed capacity crossed 31,000 MW.
The company in 2009 joined forces with other state enterprises Rashtriya
Ispat Nigam, Steel Authority of India, Coal India, National Minerals
Development Corporation and National Thermal Power Corporation to invest
in coal mining operations through a joint venture vehicle named
International Coal Ventures Private Limited (ICVL). In July 2014 ICVL acquired
a 65 percent stake in the Benga coal mine in Mozambique from the Rio Tinto
Group.

3. Vision and Mission:

VISION: To be the worlds largest and best power producer, powering Indias
growth.
MISION: Develop and provide reliable power, related products and services
at competitive prices, integrating multiple energy sources with innovative
and eco-friendly technologies and contribute to society.

CORE VALUES: BE COMMITTED

B Business Ethics

E Environmentally & Economically Sustainable

C Customer Focus

O Organizational & Professional Pride

Mutual Respect & Trust

Motivating Self & others

I Innovation & Speed

Total Quality for Excellence
T Transparent & Respected Organization
Enterprising
D Devoted

4.

Operations:

NTPC operates from 55 locations in India, one location in Sri Lanka and 2 locations in
Bangladesh.
Headquarters: In India, it has 8 regional headquarters (HQ):

Sr.

Headquarter

No.

City

NCRHQ

Delhi

ER-I HQ

Patna

Sr.

Headquarter

No.

City

ER-II HQ

Bhubaneswar

NRHQ

Lucknow

SR HQ

WR-I HQ

Mumbai

WR-II HQ

Raipur

Hydro HQ

Delhi

Secunderaba
d

Scheduling and generation dispatch: The Scheduling and Dispatch of all the
generating stations owned by National Thermal Power Corporation is done by
respective Regional Load Dispatch Centres which are the apex body to ensure
integrated operation of the power system grid in the respective region. All these Load
Dispatch Centres come under Power System Operation Corporation Limited (POSOCO).

5.

Listings and Shareholders:

The equity shares of NTPC are listed on the Bombay Stock Exchange, where it is a
constituent of the BSE SENSEX index, and the National Stock Exchange of India, where
it is a constituent of the S&P CNX Nifty. As of 30, Sep. 2015, Government of India held
around 74.96% equity shares in NTPC. Over 680,000 individual shareholders hold
approx. 1.92% of its shares. Life Insurance Corporation of India is the largest nonpromoter shareholder in the company with 10.03% shareholding.

6.

Awards and Recognitions :

NTPC was ranked 2nd among the 250 largest Power Producers and Energy Traders in
the world by Platts in 2015. On overall basis NTPC ranked 56th amongst Platts 250
Companies.

In 2009, it received ICSI National Award for Excellence in Corporate Governance.

7.

Future Goals:

The Company has developed a long term plan to become 128000 MW

company by the year 2032. NTPC Limited is on an expansion spree to meet
the power requirements of the country it has targeted to add 14,058 MW
in 12th Plan (From FY13 to FY 17) of which it had already added 4,170 MW in
the year 2012-13, 1835 MW in the year 2013-14 1290 MW in the year 201415 and 1150 MW from April 2015 to 30 November 2015.
As on 30 November 2015, the Company has 23004 MW under construction.
NTPC is diversifying its capacity mix with lots of emphasis on renewable
energy. As on 30.11.2015, NTPC has 110 MW Solar PV capacity under
operation, 250 MW under construction and 1260 MW under tendering. The
Company intends to add 10000 MW of Solar PV capacity in next 5 years. On
18.07.2015, NTPC declared commercial its first Hydro Power plant at Koldam
in the State of Himachal Pradesh. By the year 2032, Company has a long
term plan to reduce its fossil fuel capacity mix to 56%.
NTPC also plans to go global. The public sector company has signed a
memorandum of agreement with the Government of Sri Lanka and Ceylon

Electricity Board for setting up a 500 MW (2x250) coal-based thermal power

plant in the island nation. An MoU has also been signed with Kyushu Electric
Power Co. Inc., Japan, for establishing an alliance for exchange of
information and experts from different areas of the business. The company
is also in the process of finalising an MoU with Nigeria for setting up power
plants against allocation of LNG on long-term basis for NTPC plants in India.
NTPC also developing a joint-venture coal-based power plant 1,320 MW
(2x660) with Bangladesh Power Development Board known as Bangladesh
India Friendship Power Company in Bangladesh.
NTPC has also been allotted coal blocks namely, Pakri Barwadih, Chatti
Bariatu and Kerandari in Jharkhand, Talipalli, Chhattisgarh and Dulanga,
Odisha. Except Pakri Barwadih all other blocks were cancelled by a decision
of Supreme Court of India on 24 September 2014. However, the Company
was again allotted cancelled block under Section 5 of Coal Mines (Special
Provision Act 2015). Besides these blocks, Ministry of Coal has vide its press
release dated 3 July 2013 has allotted 4 more blocks namely, Banai and
Bhalmuda in Chhattisgarh, Chandrabila and Kudanli Laburi in Odisha. Two
more blocks namely Mandakini- II and Banhardih are expected to be allotted
to NTPC soon. All these mines are having estimated Geological Reserves of
6.7 Billion Tonnes. NTPC has appointed Mining Cum Development Operator
(MDO) for its Pakri Barwadih mine.

TATA POWER COMPANY LIMITED

1.

Overview:

Tata Power is an Indian electric utility company based in Mumbai,

Maharashtra, India and is part of the Tata Group. The core business of the
company is to generate, transmit and distribute electricity. With an installed
electricity generation capacity of about 9183 MW, it is India's largest
integrated power company. At the end of August 2013, its market
capitalization was $2.74 billion (INR 182 billion).

Tata Power had its inception in 1915, establishing India's first large hydro-electric
project in Khopoli, Maharashtra and driven by its late founder, Shri Jamshetji N. Tata's
pioneering vision. Tata Power is Indias largest integrated power company with a
growing international presence.
The Company together with its subsidiaries and jointly controlled entities has an
installed gross generation capacity of 9184 MW and a presence in all the segments
of the power sector viz. Fuel Security and Logistics, Generation (thermal, hydro, solar
and wind), Transmission, Distribution and Trading. It has successful public-private
partnerships in Generation, Transmission and Distribution in India namely Tata
Power Delhi Distribution Limited" with Delhi Vidyut Board for distribution in North
Delhi, 'Powerlinks Transmission Ltd.' with Power Grid Corporation of India Ltd. for
evacuation of Power from Tala hydro plant in Bhutan to Delhi and 'Maithon Power
Ltd.' with Damodar Valley Corporation for a 1050 MW Mega Power Project at
Jharkhand.
Tata Power is serving more than 2.6 million distribution consumers in India and has
developed the countrys first 4000 MW Ultra Mega Power Project at Mundra (Gujarat)
based on super-critical technology. It is also one of the largest renewable energy
players in India with a clean energy portfolio of 1749 MW.
Its international presence includes strategic investments in Indonesia through a 30%
stake in the leading coal company PT Kaltim Prima Coal (KPC), 26% stake in mines at
PT Baramulti Suksessarana Tbk ("BSSR"); in Singapore through Trust Energy
Resources to securitize coal supply and the shipping of coal for its thermal power
generation operations; in South Africa through a joint venture called Cennergi to
develop projects in sub-Sahara Africa; in Zambia through 50:50 joint venture with
ZESCO for 120 MW Hydro which has become operational in 2016; in Georgia through
AGL which is a joint venture with Clean Energy, Norway & IFC for development of 185
MW hydro project which is scheduled to be commissioned in 2016; in Australia
through investments in enhanced geothermal and clean coal technologies and in
Bhutan through a hydro project in partnership with The Royal Government of Bhutan.
With its track record of technology leadership, project execution excellence, world
class safety processes, customer care and driving green initiatives, Tata Power is
poised for a multi-fold growth and committed to 'lighting up lives' for generations to
come.

2.

History:
The firm started as the Tata Hydroelectric Power Supply Company in 1911, which
amalgamated with the Andhra Valley Power Supply Company in 1916. It commissioned
Indias first large hydro-electric project in 1915 in Khopoli for 72 MW. Then second and
third power plants were installed in Bhivpuri (78 MW) in 1919 and Bhira (300 MW) in
1922.

Vision, Mission and Values:

3.

VISION:
To be the most admired and responsible Integrated Power Company with
international footprint, delivering sustainable value to all stakeholders.
MISSION:

To earn affection of customers by delivering superior

experience and value, thereby making them our ambassadors.
Driving competitiveness by operating our businesses at
benchmark levels

Executing
quality, cost and time

Growing profitably across the power value chain and allied

areas, in focus geographies

Being the lead adopter of technology with a spirit of

pioneering and calculated risk taking

Practicing Leadership with Care by pursuing best practices

on Care for our Environment, Community, Customers, Shareholders, People
and creating a culture that will reinforce our values

Enable employees and associates to achieve and unleash

their full potential to deliver outcomes in a sustainable way

projects

safely

with

predictable

benchmark

VALUES:
Our Values are SACRED to us

Safety - Safety is a core value over which no business

objective can have a higher priority

Agility - Speed, Responsiveness and being Proactive,

achieved through Collaboration and Empowering Employees

Care - Care for Stakeholders - our Environment, Customers

& Shareholders both existing and potential, our Community and our
People (our employees and partners)

Respect -Treat all stakeholders with respect and dignity

Ethics - Achieve the most admired standards of Ethics,

through Integrity and mutual Trust

Diligence - Do everything (set direction, deploy actions,

analyze, review, plan and mitigate risks etc) with a thoroughness that
delivers quality and Excellence in all areas, and especially in Operations,
Execution and Growth

4.

Operations:
Tata Power has operations in India, Singapore, Indonesia, South Africa and Bhutan.Tata
Power Group has its operations based in 35 locations in India.
The thermal power stations of the company are located
at Trombay in Mumbai, Mundra in Gujarat, Jojobera
and Maithon inJharkhand, Kalinganagar in Odisha, Haldia in West
Bengal and Belgaum in Karnataka. The hydro stations are located in the Western Ghats
of Maharashtra and the wind farms in Ahmednagar, Supa, Khanke,
Brahmanwel, Gadag, Samana and Visapur.

The company installed Indias first 500 MW unit at Trombay, the first 150 MW pumped
storage unit at Bhira, and a flue gas desulphurization plant for pollution control at Trombay. It
has generation capacities in the States of Jharkhand and Karnataka, and a distribution
company in Delhi, servicing over one million consumers spread over 510 square km in the
North Delhi. The peak load in this area is about 1,150 MW. Tata Power announced on 24 July
2012, commissioning of the second unit of 525 MW capacity of the Maithon mega thermal
project in Dhanbad. The first unit of identical capacity was commissioned in September
2011.

5.

Listings and Shareholders:

As on 31 March 2013, Tata Group held 32.47% shares in Tata Power. Around 210,000
individual shareholders hold approx. 14% of its shares. Life Insurance Corporation of

India is the largest non-promoter shareholder in the company with 12.90% shareholding.
The equity shares of Tata Power are listed on the Bombay Stock Exchange, where it is a
constituent of the BSE SENSEX index, and the National Stock Exchange of India, where it is
a constituent of the S&P CNX Nifty.
Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange and
the Luxembourg Stock Exchange.

6.

Awards and Recognitions:

Tata Powers Singapore-based subsidiary Trust Energy Resources

was conferred the 'International Maritime Awards 2013' by the Singapore
Government. The award grants the company tax exemption for shipping
operations, besides incentives.

Tata Power won two awards at the Power Line Award 2013: Best
Performing Private Discom' award for its Delhi distribution arm Tata Power Delhi
Distribution Limited and Runners up award for 'Best Performing Renewable
Company'.

Trombay Thermal Power Station received Greentech Safety Award

2011 in the gold category (in thermal power sector) for Safety Management.

In 2011, Tata Power was conferred the BML Munjal award for
excellence in learning and development for the year 2011. Tata Power won the
award in private sector category.

7.

Future Goals:

Tata Power has a 51:49 joint venture with PowerGrid Corporation of

India for the 1,200 km Tata transmission project, Indias first transmission project
executed with public-private partnership financing.

Tata Power has plans to expand generation capacity of 4,000 MW Mundra

plant, the country's first operational ultra mega power project, to 5,600 MW.

The company has also a 74:26 joint venture with Damodar Valley
Corporation for 1050 MW coal-based thermal power plant at Maithon in Dhanbad district
of Jharkhand, named as Maithon Power Limited. The both units are commissioned on
24.07.2012. It has another a 74:26 joint venture with Tata Steel Limited for thermal
power plants to meet the captive requirements of Tata Steel, under name Industrial
Energy Limited.

Tata Power has announced its partnership with Sunengy an Australian firm
to build India's first floating solar plant based on Liquid Solar Array technology.

Chapter-3

LITERATURE
REVIEW
1. RATIO ANALYSIS
2. CLASSIFICATION OF RATIOS

1) Timo Salmi and Teppo Martikainen presented A Review of the

Theoretical and Empirical Basis of Financial Ratio Analysis
This paper provides a critical review of the theoretical and empirical basis of four
central areas of financial ratio analysis. The research areas reviewed are the
functional form of the financial ratios, distributional characteristics of financial
ratios, classification of financial ratios, and the estimation of the internal rate of
return from financial statements. It is observed that it is typical of financial ratio
analysis research that there are several unexpectedly distinct lines with research
traditions of their own. A common feature of all the areas of financial ratio
analysis research seems to be that while significant regularities can be observed,
they are not necessarily stable across the different ratios, industries, and time
periods. This leaves much space for the development of a more robust
theoretical basis and for further empirical research.

2) Daniel J. Fonseca, Gary P. Moynihan and Vineet Jain presented paper

An expert system for financial ratio analysis
According to them Financial analysis interprets a company's past and present
financial health and predicts its future condition. Although company financial
statements contain a wealth of information to support this analysis, their
interpretation may be complicated. Experts in this field are limited. This
research focuses on automating the current practice of financial ratio analysis to
identify the various features that need to be incorporated into the system. This
involves calculating the ratios, establishing the relationships between the ratios,
determining the technique for accurately forecasting the financial statements
and/or ratios, developing heuristics for analysing the ratios and providing a
system for recommendations. A prototype expert system was then developed.
The system is capable of performing five types of analysis: liquidity, leverage,
turnover, profitability, and past performance. The output of the system is a list
of conclusions and recommendations based on these analyses.

3) Mirela Monea presented Financial Ratios - Reveal How a Business Is

doing?
The paper aims to present the main financial ratios which provide a picture
about companys profitability, its financial position, use of its assets efficiency,
its long-term debt financing. Discussion is focused on: profitability ratios, shortterm financial ratios, activity ratios, long-term debt ratios or dividend policy
ratios. Also, will try to answer at the following main questions: What financial
ratios analysis tells us? What the users of these needs to know?

4) Dyson, R.G , Thanassoulis, E and Boussofiane, presented , A

comparison of data envelopment analysis and ratio analysis as tools for
performance
This paper compares data envelopment analysis (DEA) and ratio analysis as
alternative tools for assessing the performance of organisational units such as
bank branches and schools.

1.

RATIO ANALYSIS:

Financial analysis is the process of identifying the financial strengths and

weaknesses of the firm and establishing relationship between the items of the
balance sheet and profit & loss account.
Ratio analysis is one of the techniques of financial analysis to evaluate the
financial condition and performance of a business concern. Simply, ratio
means the comparison of one figure to other relevant figure or figures.
According to Myers , Ratio analysis of financial statements is a study of
relationship among various financial factors in a business as disclosed by a
single set of statements and a study of trend of these factors as shown in a
series of statements."
Ratio Analysis is a powerful tool of financial analysis. Alexander Hall first
presented it in 1991 in
Federal Reserve Bulletin. Ratio Analysis is a process of comparison of one
figure against other, which makes a ratio and the appraisal of the ratios of the
ratios to make proper analysis about
the strengths and weakness of the firms operations. The term ratio refers to
the numerical or
quantitative relationship between two accounting figures. Ratio analysis of
financial statements
stands for the process of determining and presenting the relationship of items
and group of items in the statements.
Ratio analysis can be used both in trend analysis and static analysis. A creditor
would like to know the ability of the company, to meet its current obligation
and therefore would think of current and liquidity ratio and trend of receivable.
Major tool of financial are thus ratio analysis and Funds Flow analysis.

Financial analysis is the process of identifying the financial strength and

weakness of the firm by properly establishing relationship between the items
of the balance sheet and the profit account. The financial analyst may use
ratio in two ways. First he may compare a present ratio with the ratio of the
past few years and project ratio of the next year or so. This will indicate the
trend in relation that particular financial aspect of the enterprise.
Another method of using ratios for financial analysis is to compare a financial
ratio for the company with for industry as a whole, or for other, the firms
ability to meet its current obligation. It measures the firms liquidity. The
greater the ratio, the greater the firms liquidity and vice-versa.

A ratio can be defined as a numerical relationship between two numbers

expressed in terms of
(a) proportion (b) rate (c) percentage. It is also define as a financial tool to
determine an
interpret numerical relationship based on financial statement yardstick that
provides a measure
of relationship between two variable or figures.
There are various groups of people who are interested in analysis of financial
position of
a company. They use the ratio analysis to work out a particular financial
characteristic of
the company in which they are interested. Ratio analysis helps the various
groups in the
following manner:

To workout the profitability: Accounting ratio help to measure

the profitability of the business by calculating the various profitability ratios. It
helps the management to know about the earning capacity of the business
concern. In this way profitability ratios show the actual performance of the
business.
To workout the solvency: With the help of solvency ratios,
solvency of the company can be measured. These ratios show the relationship
between the liabilities and assets. In case external liabilities are more than

that of the assets of the company, it shows the unsound position of the
business. In this case the business has to make it possible to repay its loans.
Helpful in analysis of financial statement: Ratio analysis help
the outsiders just like creditors, shareholders, debenture-holders, bankers to
know about the profitability and ability of the company to pay them interest
and dividend etc.
Helpful in comparative analysis of the performance: With
the help of ratio analysis a company may have comparative study of its
performance to the previous years. In this way company comes to know about
its weak point and be able to improve them.
To simplify the accounting information: Accounting ratios are
very useful as they briefly summarize the result of detailed and complicated
computations.

2. CLASSIFICATION OF RATIOS:
Ratios may be classified in a number of ways to suit any particular purpose.
Different
kinds of ratios are selected for different types of situations. Mostly, the
purpose for which
the ratios are used and the kind of data available determine the nature of
analysis.

The various accounting ratios can be classified as follows:

A. Profitability ratios:
1 Gross profit ratio
2 Net profit ratio
3 Operating ratio
4 Return on shareholders investment or net worth
5 Return on equity capital
6 Earnings per Share Ratio
7 Price earnings ratio
B. Liquidity ratios:
1 Current ratio
2 Liquid /Acid test / Quick ratio
C. Activity ratios:
1 Inventory/Stock turnover ratio
2 Debtors/Receivables turnover ratio
3 Working capital turnover ratio
4 Fixed assets turnover ratio
5 Total assets turnover ratio
D. Leverage ratios or long term solvency ratios:
1 Debt equity ratio
2 Proprietary or Equity ratio
3 Ratio of fixed assets to shareholders funds
4 Current Assets to Proprietor's Fund Ratio
5 Interest coverage or debt service ratio

Chapter- V
RESEARCH
METHODOLOGY
1.

MEANING OF RESEARCH
METHODOLOGY

2.

OBJECTIVE OF THE STUDY

3.

SCOPE OF THE STUDY

4.

SOURCES OF INFORMATION

1. Meaning of Research Methodology:

Research methodology is a scientific and systematic search for pertinent
information on a specific topic. Research methodology is a way to systematically
solve the research problem. It is the conceptual structure within which the
research is conducted. It helps the researcher to know the criteria which they can
decide that certain technique and procedures will be applicable to certain
problem and other will not.

2. Objectives of the study:

To evaluate the performance of the entities by using

ratios as a yardstick to measure the efficiency and
analyze various facts of the financial performance of
the entities.
To understand the liquidity, profitability and efficiency
positions of the entity during the study period.
To make comparisons between the ratios during
different periods.
To analyze and interpret the trends as revealed by
various ratios.
To make comparisons between the ratios of NTPC and
Tata Power.
Depending on the studies as started above, suggest
some new innovative ideas which may be beneficial
for the entity.

3. Scope of the study:

The scope of my project on the topic Financial Analysis using Ratios is

limited to 5 financial years i.e. March 2011-2015. All the information,
figures and findings mentioned in the project are based on the data as
available in the annual report of past 5 years. The study on the financial
statements will help the interested parties to know about the overall financial
health of the company. The ratios are helpful to forecast the future of the
organization based on the past performance.

Ratio analysis is the process of establishing and interpreting various ratios

for helping in making certain decisions. There are a number of ratios which
can be calculated from the information given in the financial statements, but
for the purpose of this particular study we have selected only the
appropriate data and calculated only a few appropriate ratios.

For the purpose of this research, I have selected NTPC and Tata Power
which are the largest PSU and Private Company respectively in the
power industry in India.

4. Sources of Information:
This project involved a systematic and scientific search for information,
diagnosis of the present ratios and the use of practical knowledge to develop
an improved ratio analysis for the financial statements of the entities.
For a research, researcher may depend either on primary data on
secondary data. Primary data is usually collected with the help of
questionnaires. Secondary data is collected from published journals or
magazines or reports.
RESEARCH DESIGN: In the present study, most of the information is
collected Secondary Sources.
Secondary data regarding sales figures, gross profit, operating cost and other
operating expenses, operating profit, net profit, capital employed,
shareholders fund, total assets etc was collected from the companys annual
report to analyze the profitability, operational efficiency i.e. the firms ability
to earn maximum profits by the best utilization of its resources. The report
covers the data for the period of 2011 to 2015.

Secondary Sources included Annual reports of NTPC and Tata Power

Balance of the entities.
Other financial accounts and documents
Periodicals, manuals and text books.

SAMPLE SIZE: Sample size selected is 5 years.

Chapter- VI
DATA ANALYSIS
AND
INTERPRETATION

1. Current Ratio:

Current ratio may be defined as the relationship between current assets and
current liabilities. This ratio is also known as "working capital ratio ". It is a measure
of general liquidity and is most widely used to make the analysis for short term
financial position or liquidity of a firm. It is calculated by dividing the total of the
current assets by total of the current liabilities. Following formula is used to calculate
current ratio:

Current Ratio=

Current
Assets
Current

Current

2015

2014

2013

2012

2011

Ratio
NTPC
Tata

1.43
1.33

1.69
0.97

1.83
1.30

1.97
1.57

2.13
1.55

Power

2.5
2
1.5
NTPC

TATA POWER
0.5
0
2015

2014

2013

2012

2011

Interpretation:
A relatively high current ratio is an indication that the firm is liquid and has
the ability to pay its current obligations in time and when they become due.
On the other hand, a relatively low current ratio represents that the liquidity
position of the firm is not good and the firm shall not be able to pay its

current liabilities in time without facing difficulties.The ideal current ratio is

2:1.
NTPC in comparison has a better liquidity position than Tata in all the financial
years, 2011-15.
In NTPC, the current ratio is 1.43 in 2015, and in Tata Power, the current ratio
is 1.33 in 2015. It means that for one rupee of current liabilities, the current
assets are 1.43 rupee in NTPC and 1.33 rupee in Tata Power.
But if we look individually, the current ratio of NTPC has been decreasing
gradually from 2011. This is due to the increase in current liabilities year by
year.
Decreasing current ratio is not ideal because it means that the enterprise is
short of funds for honouring its commitment and this was lead to insolvency.
On the other hand a very high current ratio indicates that the firm has a very
large amount of current assets which are not utilized properly and are lying
ideal.
On the other hand, in case of Tata Power, its clear that the company has
been fluctuating in their liquidity position over the years following a zigzag
trend.

2. Liquidity or Acid Test or Quick Ratio:

Liquid ratio is also termed as "Liquidity Ratio, Acid Test Ratio or
"Quick Ratio ". It is the ratio of liquid assets to current liabilities. The
true liquidity refers to the ability of a firm to pay its short term
obligations as and when they become due.
Following formula is used to calculate quick ratio:

Quick
Liquidity Ratio
= Assets
Current
liabilities

Quick Ratio

2015

2014

2013

2012

2011

NTPC
Tata Power

1.23
1.64

1.51
1.13

1.68
1.64

1.80
1.66

1.93
1.82

2
1.8
1.6
1.4
1.2
NTPC

TATA

0.8
0.6
0.4
0.2
0
2015

2014

2013

2012

2011

Interpretation:
This ratio measures the firm's capacity to pay off current obligations
immediately and is more rigorous test of liquidity than the current ratio.

Usually a high liquid ratio an indication that the firm is liquid and has the
ability to meet its current or liquid liabilities in time and on the other hand
a low liquidity ratio represents that the firm's liquidity position is not good.
As a convention, generally, a quick ratio of "one to one" (1:1) is considered
to be satisfactory.
Since both NTPC and Tata Power have quick ratio exceeding 1:1 in previous 5
financial years, they are in good liquid position, i.e both will be able to meet their
immediate obligations promptly.

Though liquidity ratio of NTPC has been gradually declining since 2011 due
to declining current ratio, its favourable because it exceeds 1:1 ratio.
NTPC has more liquidity than Tata Power in all the years except 2015.

3. Inventory/ Stock Turnover Ratio:

Stock turnover ratio and inventory turnover ratio are the same. This
ratio is a
Relationship between the cost of goods sold during a particular period of time
and the cost of average inventory during a particular period. It is expressed in
number of times. Stock turnover
ratio / Inventory turnover ratio indicates the number of time the stock has
been turned over during the period and evaluates the efficiency with which a
firm is able to manage its inventory. This ratio indicates whether investment
in stock is within proper limit or not.

Formula of Stock Turnover/Inventory Turnover Ratio:

Inventory Turnover ratioCost
= of Goods Sold
Inventory

Average Inventory
at cost

Turnover Ratio
NTPC
Tata Power

2015

2014

2013

2012

2011

9.92

13.52

16.32

16.87

15.2

12.97

12.16

12.59

9.96

11.0

18
16
14
12
10

NTPC

TATA

6
4
2
0
2015

2014

2013

2012

2011

Interpretation:
Inventory turnover ratio measures the velocity of conversion of stock into
sales. Usually a high inventory turnover/stock velocity indicates efficient
management of inventory because more frequently the stocks are sold;
the lesser amount of money is required to finance the inventory. A low
inventory turnover ratio indicates an inefficient management of inventory.
In case of NTPC, stock turnover ratio has been gradually declining which is
because although the average inventory is increases, so are the debtors.

Thus the speed of the corporation to convert inventory into sales is

declining.
In case of Tata Power the stock turnover ratio has gradually increased is
indicative that the stock is selling quickly, that is reflected with the higher
sales.

4. Debtors Turnover Ratio or Receivables

Turnover Ratio:
A concern may sell goods on cash as well as on credit. Credit is
one of the important
elements of sales promotion. The volume of sales can be increased by
following a liberal credit policy. Debtors turnover ratio indicates the velocity of
debt collection of a firm. In simple words it indicates the number of times
average debtors (receivable) are turned over during a
year.

Net Credit Sales

Debtors Turnover Ratio =
Average Trade
Debtor

Debtors Turnover

2015

2014

2013

Ratio
NTPC

11.42

13.61

11.73

17.08

5.99

6.59

8.31

9.21

Tata Power

2012

2011

13.6

4.91

18
16
14
12
10

NTPC

TATA

6
4
2
0
2015

2014

2013

2012

2011

Interpretation:
This ratio indicates the number of times the debtors are turned over a
year. The higher the value of debtors turnover the more efficient is the
management of debtors or more liquid the debtors are. Similarly, low
debtors turnover ratio implies inefficient management of debtors or less
liquid debtors.
NTPC has had a fluctuating graph. The debtor turnover ratio for 2011 is
13.62 which shows efficient management and effective sales policy and
it further increased in 2012. After that it fell in 2013, rose again in 2014
to 13.61, and was 11.42 in 2015.
Tata Power experienced a steep increase in the ratio in 2012 which is
very good for the company since it shows the speed with which the

money is being recovered from the debtors. But after 2012 gradually
starts declining which is not a good sign and therefore it means that
credit sales have been made to the debtors who do not deserve so
much of credit and therefore the company must revise its sales policy.

5. Fixed Assets Turnover Ratio:

Fixed assets turnover ratio is also known as sales to fixed assets
ratio. This ratio measures the efficiency and profit earning capacity of the
concern. Higher the ratio, greater is the intensive utilization of fixed assets.
Lower ratio means under-utilization of fixed assets. The ratio is calculated by
using following formula:

Cost
Fixed Asset Turnover Ratio
= of Sales
Net Fixed
Assets

Fixed Assets
Turnover Ratio
NTPC
Tata Power

2015

201

2013 2012

2011

0.57

4
0.62

0.64

0.76

0.76

0.54

0.58

0.71

0.68

0.66

0.8
0.7
0.6
0.5
NTPC

0.4

TATA
0.3
0.2
0.1
0
2015

2014

2013

2012

2011

Interpretation:
To ascertain the efficiency & profitability of business the total fixed assets are
compared to sales. The more the sales in relation to the amount invested in
fixed assets, the more efficient is the use of fixed assets. It indicates higher
efficiency. If the sales are less as compared to investment in fixed assets it
means that fixed assets are not adequately utilized in business. Of course
excessive sale is an indication of over trading and is dangerous.
NTPC has constantly had better,fixed,asset,usage efficiency,compared,to,Tata
Power except for in year 2013. But a,very,high,turnover
ratio,can,also,mean,that,the,company,is,ill prepared,for
,scaling,up,operations,to, meet,increased,demand,and,that
it,is,maintaining,bare,minimum ,fixed,assets.
NTPC had high fixed asset turnover ratio for years 2011 and 2012, which
indicates efficient utilization of fixed assets in generating sales. After that it
started to decline.
Similarly Tata Power had increasing fixed asset turnover till year 2013 after
which it started to decline.

6. Debt to Equity Ratio:

Debt-to-Equity ratio indicates the relationship between the

external equities or outsiders funds and the internal equities or
shareholders funds. It is also known as external internal equity ratio. It is
determined to ascertain soundness of the long term financial policies of
the company. The ratio is calculated by using following formula:

Debt to Equity Ratio = External

Equities
Internal

Debt to Equity Ratio

NTPC
Tata Power

2011

201

2013

2012

2011

0.73

0.74

0.87

0.71

0.67

0.96

0.73

0.66

0.63

0.59

1
0.9
0.8
0.7
0.6
0.5

NTPC

0.4

Tata Power

0.3
0.2
0.1
0
2015

2014

2013

2012

2011

Interpretation:
Debt to equity ratio indicates the proportionate claims of owners and the
outsiders against
the firms assets. The purpose is to get an idea of the cushion available to
outsiders on the
liquidation of the firm. However, the interpretation of the ratio depends upon
the
financial and business policy of the company
Generally, a ratio of 2:1 is considered to be safe for the long term lenders and a
ratio below 2:1 provides sufficient protection to the long term lenders and thus
they are more secure and a higher ratio thus would indicate a more risky
financial position of the firm.
The debt- equity ratio for all the years and of both NTPC and Tata Power has
been less than 2:1 and this is indicative of a sound financial position of the firm.

7. Net Profit Margin Ratio:

Net profit margin (or profit margin, net margin, return on revenue) is a
ratio of profitability calculated as after-tax net income (net profits)
divided by sales (revenue). Net profit margin is displayed as a
percentage. Net profit margin is a key ratio of profitability. It is very
useful when comparing companies in similar industries. A higher net
profit margin means that a company is more efficient at converting
sales into actual profit.
Formula of Net Profit Margin Ratio:

Profit
after
Net Profit Margin Ratio
=
tax
Revenue
Earnings per Share Ratio
NTPC
Tata Power

201

20

14

2013 2012 2011

14.04

15.23

19.21

11.64

11.05

10.71

14.8
6
13.7
6

16.5
3
13.6
0

20
18
16
14
12
NTPC

10

TATA

8
6
4
2
0
2015

2014

2013

2012

2011

Interpretation:
NP ratio is used to measure the overall profitability and hence it is very useful
proprietors. The ratio is very useful as if the net profit is not sufficient, the firm
shall not be able to achieve a satisfactory return on its investment. This ratio
also indicates the firm's capacity to face adverse economic conditions such as
price competition, low demand, etc. Obviously, higher the ratio the better is the
profitability. But while interpreting the ratio it should be kept in minds that the
performance of profits also be seen in relation to investments or capital of the
firm and not only in relation to sales.
NTPC saw a fluctuating graph with Net Profit Margin Ratio initially decreasing
due to increase in operating expenses. It increased in 2013 with increase in
sales, but decreased to 14.04 in 2015.
Tata Power had an almost constant graph showing an overall good position of
the company.

Chapter- VI
CONCLUSIONS
AND
SUGGESTIONS

There is a huge crisis over energy in the world especially in the field of
electricity. India is also victim of the same condition. In spite of several efforts
taken by the governments in this regard, there is enormous possibility exists.
NTPC and Tata Power are key organizations in India as far as the supply of
power is concerned. After successfully conducting this project work, it can be

said that the financial health of both NTPC and Tata Power is sound enough and
it appears positive in accordance with its balance sheet and profit & loss A/c
which are available to me.
Some other findings are:
1. The liquidity position of NTPC has been gradually declining while that of Tata
Power shows a fluctuating trend. NTPC is has a better liquid position than Tata
Power on an average.
2. The quick ratio of NTPC shows a declining trend with 1.93, 1.80, 1.68, 1.51,
1.23. Whereas the quick ratio of Tata Power shows a fluctuating trend.
3. The inventory turnover ratio for NTPC declined drastically from 15.21 to 9.92
between 2011-2015 and that of Tata Power increased slowly from 11.08 to
12.27 between 2011-2015.
4. Debtor Turnover ratio for both NTPC and Tata Power show a fluctuating trend
with NTPC having 11.42 and Tata Power having 5.99 in 2015.
5. Fixed Asset Turnover Ratio is high for all years on average for both NTPC and
Tata Power which indicates they are efficiently utilizing fixed assets.
6. The debt- equity ratio for all the years and of both NTPC and Tata Power has
been less than 2:1 and this is indicative of a sound financial position of the
firm, although an increasing trend shows more usage of debt as a source of
finance.
7. Net Profit Margin ratio showed fluctuating trend in both NTPC and Tata Power.
8. NTPC and Tata Power belong to power sector industry where gestation
period for new projects is always more than 3-5 years, therefore a part of
capital gets blocked in such projects.

SUGGESTIONS:

1. Looking at the profitability, size and promising future prospects, we can say
that for NTPC Ltd. And Tata Power there is still a room for including more of
debt into its capital structure as debt is a cheaper source of finance so thereby
it would lead to more of profitability.
2. The company can increase its sources of funds to make effective research
and development system for more profits in the years to come.
3. The liquid ratio of NTPC decreasing year after year. Though the ratio is above 1 in
all the five years, it is preferable to improve upon the situation. This may be due to the
fact that the stock is major composition of current assets, which excludes liquid
assets. The firm should try to clear the stocks.
4. The inventory turnover ratio for the five years in Tata Power indicated a good
inventory policy and efficiency of business operations of the company, whereas NTPC
showed a declining trend. Thus the management should rethink the inventory policy.
5. Efforts should be taken to increase the overall efficiency in return out of

capital employed by making used of the available resource effectively.

6. Both NTPC and Tata Power should tighten the debt collection efforts and
should reduce the amount tied up in debtors. In order to improve the quality of
debtors and also to bring down the amount tied-up in debtors, a periodical
report of the overdue may be prepared and effective action may be taken by
the management time to time to expedite the collections
7. Inventory turnover ratio is lesser in Tata Power compared to NTPC which
indicates inefficient management of inventories. So it is advisable to keep less
inventories to minimize costs and improve efficiency.

BIBLIOGRAPHY

REFERENCE BOOKS:
1. Financial Management,

I M Pandey, Vikas Publication House Pvt

Ltd, Noida, 2010

OTHER SOURCES:
1. Annual Reports of NTPC from 2011-15
2. Annual Reports of Tata Power from 2011-15

WEBSITES:

www.ntpc.co.in
https://en.wikipedia.org/wiki/NTPC_Limited
www.tatapower.com
https://en.wikipedia.org/wiki/Tata_Power
financials.morningstar.com
money.livemint.com
money.rediff.com
www.moneycontrol.com
https://www.google.co.in

ANNEXURE