Ntpc final

Presented By,

Anirban Ghosh (A13001)

Arbind Kumar (A13003)

Ashish Ranjan (A13004)

Debayan Dutta (A13006)

NTPC - FINANCIAL STATEMENT ANALYSIS

AGENDA

About NTPCShareholding patternDirector’s report and MD analysisAccounting policyStock Analysis with NSE index and goldBalance SheetP/L statementCash flow analysisRatio analysis

ABOUT NTPC

SHAREHOLDING PATTERN

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

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.

ACCOUNTING POLICY

NTPC TATA POWER

BASIS OF PREPARATION

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.

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.

LEASES 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

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.

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.

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.

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.

FIXED ASSETS Fixed assets are carried with historical cost less accumulated depreciation/amortisation.

All fixed assets are cost less depreciation. Cost comprises the purchase price and any other applicable costs.

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%.

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

P/L STATEMENTSTANDALONE PROFIT AND LOSS ACCOUNT

31.03.2013 31.03.2012 in Rs.(Cr.)

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

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

NET TAKE AWAY

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.

ACTIVITIES 2013(BILLION) 2012(BILLION)

OPERATING 154.95 107.09

INVESTING -140.16 -78.8

FINANCING -7.52 -28.69

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

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

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

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

RATIO ANALYSIS

DUPOINT NTPC TATA POWER Mar '13 Mar '12 Mar '13 Mar '12

Tax burden [PAT/PBT] 0.76 0.75 0.602 0.70Interest burden [PBT/PBIT] 0.90 0.88 0.715 0.77Operating income margin [PBIT/Sales] 0.28 0.23 0.249 0.26Asset turnover [Sales/Total Assets] 0.41 0.44 0.357 0.34Equity multiplier [Total Assets/Equity] 1.96 1.88 2.160 2.02ROE 0.15 0.12 0.083 0.09

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