NTPC -FINANCIAL STATEMENT ANALYSIS

1. NTPC - FINANCIAL STATEMENT
ANALYSIS
Presented By,
Anirban Ghosh (A13001)
Arbind Kumar (A13003)
Ashish Ranjan (A13004)
Debayan Dutta (A13006)

2. AGENDA
About NTPC
Shareholding pattern
Director’s report and MD analysis
Accounting policy
Stock Analysis with NSE index and gold
Balance Sheet
P/L statement
Cash flow analysis
Ratio analysis

3. ABOUT NTPC

4. SHAREHOLDING PATTERN

5. Director’s report and MD analysis
Financial yr 2012-13 has been a yr of achievements for NTPC as it performed well in
various areas of its activities:
 Addition of 4170 MW capacity (including 1000 mw though JV Companies),by far the
highest ever any single yr and declared 4830 mw (including 1000 mw though JV
Companies) on commercial Generation, also the highest ever in a yr awarded
contracts for work of 8521mw
 CAPEX of 19,925,53 cr which was 24.58% higher than previous yr 15,994 cr
 100% realization of current bills from customers
 Highest ever PAT of 12,619.39 cr, an increase of 36.81% over the previous yr's PAT
of 9,223,73 cr and recorded Total income of 68,775,51 cr ,an increase of 6,07% as
compared to 68,841.88 cr in FY2011-12
 Highest ever Dividend of Rs.5.75/share (Rs, 3.75 paid in Mar'13 +special dividend of
Rs,1.25/equity share +final dividend of Rs,0.75/share, subject to approval of the
shareholders)
 Approval of power ministry for implementation of North Karanpura Thermal Power
Project(3*660mw) at existing site in Jharkhand by NTPC.
 Withdrawal of de-allocation of Chatti-Bariatu, Chatti-Bariatu(South) and Kerandari
Coal Block By coal Ministry ,which were de-allocated by ministry of coal in june'11

6. CONTD…
 Disinvestment of 9.5% holding by GOVT OF INDIA in the Equity of
Company, thus reducing its holding from 84.5% to 75%)
 Commissioned first two solar power plants of 5mw each at Dadri and
Andaman & Nicobar Islands.
 Power sector is a key enabler for India’s economic growth. As per XII th
investing plan, investment in electricity is projected to be 1/3 rd of the the
projected investment in infrastructure sector.
 Capacity utilization in the Indian power sector is measured by Plant Load
Factor .The PLF has shown a decline during the financial year 2012-13 vis a
vis financial year 2011-12.
 The total power generation in the country has increased by 4.01% in the
financial year 2012-13 compared to during last year.
 In terms of per capita power consumption, India ranks lowest in the world.
The per capita consumption has increased on a year -on- year basis.
 The energy deficit increased on a year-on-year basis in financial year 2012-13
to 8.7% from 8.5% in financial year 2011-12.

7. ACCOUNTING POLICY
NTPC
BASIS OF
PREPARATION
LEASES
TATA POWER
The financial statements are
prepared on accrual basis of
accounting under historical
cost convention in accordance
with the generally accepted
accounting principles in India
and the relevant provisions of
the company act 1956
including accounting
standards notified there
under.
Assets taken on lease are
capitalized at fair value or net
present value of the minimum
lease payments whichever is
lower. Depreciation on the
assets taken on lease is
charged at the rate applicable
to similar type of fixed assets
It is prepared on accrual basis
under the historical cost
convention. The accounting
policies adopted in the
preparation of the financial
statements are consistent with
those followed in the previous
year.
Assets leased by the Company
in its capacity as lessee where
substantially all the risks and
rewards of ownership vest in
the Company are classified as
finance leases.

8. CONTD…
NTPC
TATA POWER
INVESTMENTS
Current Investments are
valued at lower of cost and
fair value determined on an
individual investment basis.
Long term investments are
carried at cost.
Premium paid on long term
investments is amortised over
the period remaining to
maturity.
Long term investments are
carried at cost less provision, if
any, for permanent diminution
in value of such investments.
Current investments are carried
at lower of cost and fair value.
FOREIGN EXCHANGE
TRANSACTION
Foreign currency transactions
are initially recorded at the
rates of exchange ruling at the
date of transaction.
Transactions denominated in
foreign currencies are recorded
at the exchange rate prevailing
on the date of the transaction.

9. CONTD…
NTPC
TATA POWER
INVENTORIES
Inventories are valued at the
lower of, cost determined on
weighted average basis, and
net realizable value. The
demolition in the value of
obsolete, unserviceable and
surplus stores and spares is
ascertained on review and
provided for.
FIXED ASSETS
Fixed assets are carried with
historical cost less
accumulated
depreciation/amortisation.
Inventories of stores and spare
parts and loose tools are valued
at or below cost. Cost is
ascertained on weighted
average basis. Work-in-progress
is valued at lower of cost and
net realisable value and in the
case of electronic products
includes attributed profits. Cost
includes material costs, labour
and manufacturing overheads
on the basis of absorption
costing.
All fixed assets are cost less
depreciation. Cost comprises
the purchase price and any
other applicable costs.

10. STOCK ANALYSIS WITH NSE INDEX AND GOLD
NTPC’s total return for six month is -20.76%. However for NSE
the total return for the same period is -2.42% and for gold the
total return is +8.14%.

11. STANDALONE BALANCE SHEET
Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)
BALANCE SHEET
31.03.2013
8,245.46
8,245.46
0
0
72,142.05
0
9,404.05
43,849.61
1,03,245.70
-40,309.60
37,109.42
10,760.10
4,057.19
5,365.49
16,867.70
26,290.38
24,020.46
0
50,310.84
0
19,730.83
7,744.46
27,475.29
22,835.55
0
1,33,641.17
63,299.15
97.49
in Rs.(Cr.)
80,387.51
53,253.66
1,33,641.17
62,936.10
31.03.2012
8,245.46
8,245.46
0
0
65,045.71
0
9,156.30
38,182.03
81,723.52
-36,465.12
41,827.82
11,206.38
3,702.85
5,832.51
16,146.11
25,681.47
16,863.73
0
42,545.20
0
16,388.98
3,819.32
20,208.30
22,336.90
0
1,20,629.50
42,308.16
88.89
73,291.17
47,338.33
1,20,629.50
45,258.40

12. P/L STATEMENT
31.03.2013
STANDALONE PROFIT AND LOSS ACCOUNT
Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses
Operating Profit
PBDIT
Financial Expense
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Retained Earning
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)
31.03.2012
in Rs.(Cr.)
66,200.24
-526.31
62,480.88
-428.65
65,673.93
4,785.69
0
62,052.23
3,103.42
0
70,459.62
46.35
41,661.34
3,360.12
1,782.45
0
1,739.33
0
65,155.65
45.24
42,171.65
3,090.48
1,529.24
0
1,478.12
0
48,589.59
48,314.73
17,084.34
21,870.03
1,924.36
19,945.67
3,396.76
0
16,548.91
188.57
16,737.48
4,118.09
12,619.39
0
4,741.16
781.87
7,096.36
13,737.50
16,840.92
1,711.64
15,129.28
2,791.70
0
12,337.58
452.64
12,790.22
3,241.49
9,223.73
0
3,298.19
527.92
5,397.62
82,454.64
15.3
57.5
97.49
82,454.64
11.19
40
88.89

13. CASH FLOW ANALYSIS
31.03.2013
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before tax
Adjustment for:
Depreciation / Amortisation
Prior period depreciation / amortisation
Provisions
Deferred revenue on account of advance against depreciation
Deferred foreign currency fl uctuation asset/liability
Deferred income from foreign currency fl uctuation
Interest charges
Guarantee fee & other fi nance charges
Interest/income on bonds/investments
Dividend income
Provisions written back
Profit on disposal of fixed assets
Loss on disposal of fixed assets
3396.76
-0.25
206.25
-9.87
240.28
79.56
1902.13
22.23
-2397.11
-241.32
-844.70
-4.62
59.91
Operating Profi t before Working Capital Changes
Adjustment for:
Trade receivables
Inventories
Trade payables, provisions and other liabilities
Loans & Advances and Other current assets
1307.69
-157.16
1550.38
-3298.04
Cash generated from operations
Direct taxes paid
Net Cash from Operating Activities - A
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets
Disposal of fixed assets
Purchase of investments
Sale of investments
Investment in subsidiaries/joint ventures
Loans & advances to subsidiaries
Interest/income on bonds/investments received
Income Tax paid on interest income
Dividend received
Net Cash from Investing Activities - B
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from long term borrowings
Repayment of long term borrowings
Grants received
Interest paid
Guarantee fee & other fi nance charges paid
Dividend paid
Tax on dividend
Net cash flow from Financing Activities - C
Net increase/decrease in cash and cash equivalents (A+B+C)
Cash and cash equivalents at the beginning of the year (see Note 1 below)
Cash and cash equivalents at the end of the period (see Note 1 below)
31.03.2012
in Rs.(Cr.)
16578.63
-16296.65
5.44
-17955.00
19577.46
-1177.22
-73.06
2417.32
-756.50
241.32
2409.25
18987.88
-597.13
18390.75
-2895.58
15495.17
-14016.89
11696.96
-4434.52
-3831.50
-114.57
-3504.34
-564.44
-752.41
725.87
16141.83
18867.70
12326.16
2791.70
-1.35
65.18
-73.58
-874.84
792.00
1681.75
29.89
-2307.65
-169.30
-315.86
-13.28
58.40
-2862.83
93.94
375.87
185.94
-10794.44
78.76
-23630.00
25433.87
-681.68
-2.98
2235.00
-688.37
169.30
8736.39
-3522.93
1.33
-3885.12
-84.18
-3545.55
-569.02
1663.06
13989.22
-2207.08
11782.14
-1072.29
10709.85
-7880.54
-2869.08
-39.77
16181.60
16141.83

14. NET TAKE AWAY
ACTIVITIES
2013(BILLION)
2012(BILLION)
OPERATING
154.95
107.09
INVESTING
-140.16
-78.8
FINANCING
-7.52
-28.69
 Operating activity shows increment from 2012 to 2013. After
analyzing the balance sheet, we found that there is a drastic
decrease in trade receivables which infers that cash is being
collected from customers faster than the products are being
provided or services are being rendered.
 Investing activity has gone up due to purchase of fixed assets
and investing in subsidiary and joint venture.
 Financing activity shows improvement due to cash inflow from
long term borrowings.

15. RATIO ANALYSIS
SOLVENCY RATIOS
Long term debt/equity
Total debt/equity
Total assets/Equity called equity multiplier
Interest coverage ratio
NTPC
TATA POWER
Mar '13 Mar '12 Mar '13 Mar '12
0.66
0.65
0.91
0.78
1.00
0.92
1.15
1.13
2.00
1.92
2.15
2.13
11.36
9.84
4.05
5.38

16. RATIO ANALYSIS
LIQUIDITY RATIOS
Current asset/Current liability
Quick assets/Current liability
Cash/Current liability
Cash coverage=cash/average daily cash expense
NTPC
TATA POWER
Mar '13 Mar '12 Mar '13 Mar '12
0.96
1.27
0.394
0.46
0.81
1.09
0.139
0.26
0.85
0.99
0.194
0.02
126.71 121.98 19.992
3.19

17. RATIO ANALYSIS
EFFICIENCY RATIO
Asset turnover[sales/Average asset]
Excluding Cap WIP
Fixed asset turnover [sales/average FA]
Current asset Turnover [sales/average CA]
Inventory turnover [sales/ average inventory]
Debtors turnover ratio[sales/ average debtors]
DSO or Debtors' age
Inventory holding period
NTPC
Mar '13 Mar '12
0.47
0.51
0.65
0.76
0.77
0.96
2.53
3.30
16.93
16.90
11.73
9.02
31.12
40.46
21.56
21.59
TATA POWER
Mar '13 Mar '12
0.62
0.60
0.65
0.65
0.84
0.85
6.19
3.60
11.84
11.55
19.07
5.76
19.14
63.42
30.82
31.61

18. RATIO ANALYSIS
PROFITABILITY
NTPC
TATA POWER
Mar '13 Mar '12 Mar '13 Mar '12
ROA [Net Income After TAX/AVG TOTAL ASSETS]
0.08
0.07
0.040
0.05
ROE [Net Income After TAX/AVG SHAREHOLDER EQUITY]
0.16
0.13
0.085
0.10
OPERATING PROFIT MARGIN [EBIT/NET SALES]
0.28
0.23
0.249
0.26
ROCE [Ebit/(AVG TOTAL ASSET+CL)]
0.11
0.09
0.085
0.08

19. RATIO ANALYSIS
DUPOINT
Tax burden [PAT/PBT]
Interest burden [PBT/PBIT]
Operating income margin [PBIT/Sales]
Asset turnover [Sales/Total Assets]
Equity multiplier [Total Assets/Equity]
ROE
NTPC
Mar '13 Mar '12
0.76
0.75
0.90
0.88
0.28
0.23
0.41
0.44
1.96
1.88
0.15
0.12
TATA POWER
Mar '13 Mar '12
0.602
0.70
0.715
0.77
0.249
0.26
0.357
0.34
2.160
2.02
0.083
0.09

20. THANK YOU