Management,Accounting,–,1

Term,Project
Financial,analysis,for,Power,Sector
(NTPC,and,TATA,Power)

Group,2

Hitesh,Yeolekar,(09P84)
Ayushi,Agrawal,(09P71),,,
Rinshul,Pruthi,(09P110),,,
Omkar,Parnandiwar,(09P97)

Management,Development,Institute

PGPM 2009-11, Section B, Group 2 Page 1

CONTENTS

TITLE PAGE,NO.
OVERVIEW,OF,POWER,SECTOR 3
NTPC,AND,TATA,POWER–,COMPANY 9
,OVERVIEW
COMMON,SIZE,ANALYSIS 16
RATIO,ANALYSIS 23
DU,PONT,ANALYSIS 34
CASH,FLOW,POSITION 35
REFERNCES 37
ANNEXURE 38

Overview,of,Indian,Power,Sector

PGPM 2009-11, Section B, Group 2 Page 2

Power,is,one,of,the,important,sectors,of,any,economy,which,define,its,growth.,In,India,the,powe
r,sector,has,shown,a,significant,growth,since,the,process,of,planned,development,of,the,econo
my,began,in,1950.,Hydro-
power,and,coal,based,thermal,power,have,been,the,main,sources,of,generation,of,electricity.,N
uclear,power,development,is,at,slower,pace,which,was,introduced,in,late,sixties.,The,concept,of
,operating,power,systems,on,a,regional,basis,crossing,the,political,boundaries,of,states,was,intr
oduced,in,the,early,sixties.,In,spite,of,the,overall,development,that,has,taken,place,,the,gap,bet
ween,supply,and,demand,still,remains,huge,due,to,growth,in,demand,for,power,,outstripping,the
,growth,in,generation,and,generating,capacity,addition.

.
The,installed,generation,capacity,in,the,Power,Utilities,in,the,country,as,on,30.06.2009,was,150
323.41,MW.,Region-wise,and,Category-wise,break-up,of,installed,capacity,is,given,below:

(All,figures,in,MW)

S.,NO. Region Hydro,(Renewable) Thermal Nuclear R.E.S.,@,(MNRE) Total

1 Northern 13425.15 22351.68 1180.00 1766.37 38723.20

2 Western 7448.50 33718.20 1840.00 4023.62 47030.32

3 Southern 10993.18 22072.02 1100.00 7047.90 41213.10

4 Eastern 3933.93 16863.58 0.00 227.41 21024.92

5 N.,Eastern 1116.00 968.74 0.00 171.00 2255.74

6 Island 0.00 70.02 0.00 6.11 76.13

7 All,India 36916.76 96044.24 4120.00 13242.41 150323.41

@,=,Renewable,Energy,Sources,(RES),includes,Small,Hydro,Project,(SHP),,Biomass,Gas,
(BG),,Biomass,Power,(BP),,Urban,&,Industrial,waste,Power,(U&l),and,Wind,Energy,

SIZE,OF,POWER,INDUSTRY
PGPM 2009-11, Section B, Group 2 Page 3
The,total,installed,capacity,in,India,is,calculated,to,be,145,554.97,mega,watt,in,which,75,837.93,
mega,watt,(52.5%),is,from,State,,48,470.99,mega,watt,
(34%),from,Centre,,and,21,246.05,mega,watt,(13.5%),is,from,Private,sector,initiative.
• Generation,capacity,of,141,GW;,663,billion,units,produced,(1,unit,=,1kwh)-
January,2008.,CAGR,of,5%,over,the,last,5,years
• India,has,the,fifth,largest,electricity,generation,capacity,in,the,world.,Low,per,capita,cons
umption,at,631,units;,less,than,half,of,China
• Transmission,&,Distribution,network,of,6.6,million,circuit,km,-,the,third,largest,in,the,worl
d
• Coal,fired,plants,constitute,54%,of,the,installed,generation,capacity,,followed,by,25%,fro
m,hydel,power,,10%,gas,based,,3%,from,nuclear,energy,and,8%,from,renewable,source
s,

GROWTH,OF,INDIAN,POWER,SECTOR

,
Power,development,is,the,key,to,the,economic,development.,The,Power,Sector,has,been,receiv
ing,adequate,priority,ever,since,the,process,of,planned,development,began,in,1950.,The,Power,
Sector,has,been,getting,18-
20%,of,the,total,Public,Sector,outlay,in,initial,plan,periods.,Remarkable,growth,and,progress,hav
e,led,to,extensive,use,of,electricity,in,all,the,sectors,of,economy,in,the,successive,five,years,pla
ns.,India,has,installed,power,generation,capacity,of,150323.41,MW,as,on,June,30,,2009,,which,
is,about,108,times,the,installed,capacity,in,1947,
(1362,MW).,Electricity,generation,growth,has,been,steadily,improving,year,after,year,,and,in,the
,year,2008-
09,,the,total,electricity,generation,was,about,723.55,billion,units,of,energy.,However,,despite,this
,the,per,capita,electricity,consumption,in,the,country,was,merely,704.2,KWh/Year,in,2007-
08,according,to,Ministry,of,Power,and,is,projected,at,1000,KWh,by,the,year,2012.

PGPM 2009-11, Section B, Group 2 Page 4

PGPM 2009-11, Section B, Group 2 Page 5
KEY,PLAYERS,

Key,players,currently,operating,in,the,Indian,power,sector,are,National,Thermal,Power,Corporati
on,Limited,,Tata,Power,,Nuclear,Power,Corporation,of,India,Limited,,North,Eastern,Electric,Pow
er,Corporation,Limited,,Power,Grid,Corporation,of,India,,etc.
,
Major,players,in,the,Power,sector,can,be,broadly,divided,into,public,,private,and,international,pri
vate,sectors.

•G,-,Generation,•T,-,Transmission,•D,–,Distribution

Source:,Ministry,of,Power,,Capitaline

POLICY

• 100%,FDI,permitted,in,Generation,,Transmission,&,Distribution,-,the,Government,is,kee
n,to,draw,private,investment,into,the,sector
• Policy,framework:,Electricity,Act,2003,and,National,Electricity,Policy,2005

• Incentives:,Income,tax,holiday,for,a,block,of,10,years,in,the,first,15,years,of,operation;,w
aiver,of,capital,goods',import,duties,on,mega,power,projects,
(above,1,000,MW,generation,capacity)
• Independent,Regulators:,Central,Electricity,Regulatory,Commission,for,central,PSUs,an
d,inter-state,issues.,Each,state,has,its,own,Electricity,Regulatory,Commission

PGPM 2009-11, Section B, Group 2 Page 6

BLUEPRINT,OF,MINISTRY

The,Ministry,of,Power,has,set,a,goal,-,Mission,2012:,Power,for,All.
A,comprehensive,Blueprint,for,Power,Sector,development,has,been,prepared,encompassing,an
,integrated,strategy,for,the,sector,development,with,following,objectives:-
• Sufficient,power,to,achieve,GDP,growth,rate,of,8%

• Reliable,of,power

• Quality,power

• Optimum,power,cost

• Commercial,viability,of,power,industry

• Power,for,all

Strategies,To,Achieve,The,Objectives:,

Power,Generation,Strategy,with,focus,on,low,cost,generation,,optimization,of,capacity,utilization
,,controlling,the,input,cost,,optimisation,of,fuel,mix,,Technology,up,gradation,and,utilization,of,N
on,Conventional,energy,sources,

Transmission,Strategy,with,focus,on,development,of,National,Grid,including,Interstate,connect
ions,,Technology,up,gradation,&,optimization,of,transmission,cost.

Distribution,strategy,to,achieve,Distribution,Reforms,with,focus,on,System,up,gradation,,loss,r
eduction,,theft,control,,consumer,service,orientation,,quality,power,supply,commercialization,,De
centralized,distributed,generation,and,supply,for,rural,areas

Regulation,Strategy,aimed,at,protecting,Consumer,interests,and,making,the,sector,commercia
lly,viable

Financing,Strategy,to,generate,resources,for,required,growth,of,the,power,sector,Conservation
,Strategy,to,optimise,the,utilization,of,electricity,with,focus,on,Demand,Side,management,,Load,
management,and,Technology,up,gradation,to,provide,energy,efficient,equipment,/,gadgets.

PGPM 2009-11, Section B, Group 2 Page 7

Communication,Strategy,for,political,consensus,with,media,support,to,enhance,the,general,pu
blic,awareness.

Roadblocks,in,Power,Sector,Development

1. Absence,of,a,clear,cut,policy,and,focus:,The,government,took,initiatives,like,mega,projec
ts,,naptha,etc,but,these,were,not,taken,to,the,end,and,implemented,completely.,This,wa
s,due,to,lack,of,focus,on,part,of,the,government.,

2. Poor,financial,health,of,the,State,Electricity,Boards,and,their,inexperience,to,operate,in,t
he,changed,market,environment:,Most,of,the,State,Electricity,boards,today,are,in,poor,fi
nancial,condition,and,hence,not,fit,to,handle,the,power,requirements,of,the,country.,

3. Unavailability,of,fuel:,It,is,one,of,the,major,roadblocks,in,the,development,of,power,secto
r,in,India.,Fuel,is,not,easily,available,and,in,India,it,is,scarcer.,Hence,the,unavailability,is,
a,major,concern

4. Delay,in,land,acquisition,,environmental,clearances,and,other,approvals,are,an,area,of,c
oncern,when,the,private,companies,are,concerned.,The,bureaucracy,brings,another,maj
or,roadblock,for,any,private,company,entering,any,sector,,not,just,power,sector.

5. ,
More,dependence,on,imported,coal,due,to,low,growth,in,domestic,coal,mining.,In,India,t
he,majority,of,power,is,still,generated,by,coal.,With,low,growth,in,coal,mining,in,the,coun
try,,the,thermal,power,plants,are,depending,more,on,imported,coal,which,the,companies
,can,be,vary,of.

6. Slow,pace,of,opening,up,of,the,distribution,activities,to,private,sector.,Although,the,gover
nment,has,shown,and,taken,initiatives,for,opening,up,the,sector,for,the,private,players.,F
or,example:,the,opening,up,of,distribution,sector,is,being,taken,up,slowly,by,the,governm
ent.,Also,the,privatization,in,the,transmission,sector,needs,to,be,increased,to,nurture,mo
re,growth,in,the,sector.

PGPM 2009-11, Section B, Group 2 Page 8

 The,two,companies,chosen,by,us,for,our,assignment,are,NTPC,which,is,the,benchmark,
company,in,the,Power,sector,reporting,the,highest,turnover,year,on,year,and,TATA,Power,Limit
ed,,another,major,player,in,power,production,and,transmission.,

NTPC,–,Company,Overview

NTPC,Ltd,(NTPC),,a,Navratna,company,,was,incorporated,in,1975.,The,company’s,principal
business,comprises,generation,and,sale,of,bulk,power.,

Its,other,lines,of,business,include,consultancy,services,in,engineering,,project,management,,
construction,management,,operation,,and,maintenance,of,power,plants.,It,is,also,engaged,in,oil,
and,gas,exploration,,and,coal,mining.

NTPC,generates,power,through,15,coal-based,power,plants,with,22,895,MW,capacity,,7,gas-
based,power,plants,with,3,955,MW,capacity,,and,4,JV,projects,with,1,054,MW,capacity.,It,sells,
power,to,bulk,consumers,,mainly,SEBs.

The,salient,features,of,NTPC’s,depreciation,policy,are,as,follows:

(i),Depreciation,is,charged,on,straight,line,method,at,the,rates,specified,in,Schedule,XIV,of,the
,Companies,Act,,1956,except,for,the,following,assets,at,the,rates,mentioned,below:

a),Kutcha,Roads,47.50,%

b),Personal,computers,and,Laptops,including,peripherals,

c),Photocopiers,and,Fax,Machines,

d),Air,conditioners,,Water,coolers,and,Refrigerators,
Depreciation,on,additions,to/deductions,from,fixed,assets,during,the,year,is,charged,on,pro-
rata,basis,from/up,to,the,month,in,which,the,asset,is,available,for,use/disposal.

1. Assets,costing,up,to,Rs.5000/-,are,fully,depreciated,in,the,year,of,acquisition.
2. Cost,of,software,recognized,as,intangible,asset,,is,amortised,on,straight,line,method,
over,a,period,of,legal,right,to,use,or,3,years,,whichever,is,earlier.

PGPM 2009-11, Section B, Group 2 Page 9

 3. Where,the,cost,of,depreciable,assets,has,undergone,a,change,during,the,year,due,to,inc
rease/decrease,in,long,term,liabilities,on,account,of,exchange,fluctuation,,price,adjust-
ment,,change,in,duties,or,similar,factors,,the,unamortised,balance,of,such,asset,is,
charged,prospectively,over,the,residual,life,determined,on,the,basis,of,the,rate,of,
depreciation.

Analysis,of,depreciation,policy

i. The,depreciation,has,been,sufficient,enough,for,replacement,of,the,asset.,Looking,at,the
,annual,report,we,find,that,the,rate,of,depreciation,is,sufficient,enough,to,cover,the,value,
of,the,asset,over,its,useful,life.,
ii. Depreciation,has,been,charged,largely,through,SLM.,As,a,result,of,this,the,company,is,a
ble,to,report,higher,profits,then,what,would,otherwise,have,been,had,it,used,WDV,metho
d.,
iii. The,depreciation,method,used,by,the,company,for,different,assets,has,remained,consist
ent,over,the,observed,period,of,5,years.,
iv. There,is,a,significant,difference,in,depreciation,rates,used,by,company,
(prescribed,by,companies,act),and,the,rates,prescribed,by,the,IT,act,for,tax,purposes.,T
his,can,be,seen,in,the,deferred,tax,liability,amount,of,Rs.,513.5,Crores.

TATA,POWER,–,Company,Overview
The,Tata,Power,Company,Ltd,(Tata,Power),was,incorporated,in,1919.,

In,2000,,The,Andhra,Valley,Power,Supply,Co,and,The,Tata,HydroElectric,Power,Co,Ltd,
merged,with,Tata,Power.,
Tata,Power’s,core,business,is,to,generate,,distribute,,and,transmit,electricity.

PGPM 2009-11, Section B, Group 2 Page 10

Tata,Power,is,engaged,in,generation,,distribution,,and,transmission,of,power,,operating,in
Maharashtra,,Karnataka,,and,Jharkhand.,

The,salient,features,of,Tata,Power’s,depreciation,policy,are,as,follows:

(i),Depreciation,for,the,year,in,respect,of,assets,relating,to,the,electricity,business,of,the,
Company,as,Licensee,has,been,provided,on,straight,line,method,in,terms,of,the,repealed,
Electricity,(Supply),Act,,1948,on,the,basis,of,central,government,notification,,except,that,
computers,acquired,on,or,after,1st,April,,1998,are,depreciated,at,the,rate,of,33.40%,p.a.,on,the,
basis,of,approval,obtained,from,the,State,Government,.

(ii),In,respect,of,assets,relating,to,the,other,business,of,the,Company,,depreciation,has,been,
provided,for,on,written,down,value,basis,at,the,rates,and,in,the,manner,prescribed,in,Schedule,
XIV,to,the,Companies,Act,,1956,,except,in,the,case,of,technical,knowhow,which,is,written,off,on
,a,straight,line,basis,over,a,period,of,six,years.

(iii),Assets,costing,less,than,Rs.,5,000/-,are,depreciated,at,the,rate,of,100%.

(iv),Leasehold,Land,is,amortised,over,the,period,of,the,lease.

(v),Depreciation,on,additions/deletions,of,assets,is,provided,on,pro-rata,basis.

Analysis,of,depreciation,policy

i. The,depreciation,has,been,sufficient,enough,for,replacement,of,the,asset.,Looking,at,the
,annual,report,we,find,that,the,rate,of,depreciation,is,sufficient,enough,to,cover,the,value,
of,the,asset,over,its,useful,life.,
ii. For,assets,relating,to,the,electricity,business,company,has,charged,depreciation,on,a,
straight,line,basis,whereas,for,assets,pertaining,to,other,businesses,the,company,has,
charged,depreciation,at,the,written,down,value,method.,,Since,large,amount,of,
depreciation,is,being,charged,through,SLM,it,is,able,to,report,greater,profits,then,if,the,
company,was,WDV,method.,
iii. The,depreciation,method,used,by,the,company,for,different,assets,has,remained,
consistent,over,the,observed,period,of,5,years.,

PGPM 2009-11, Section B, Group 2 Page 11

 iv. There,is,a,significant,difference,in,depreciation,rates,used,by,company,(prescribed,by,
companies,act),and,the,rates,prescribed,by,the,IT,act,for,tax,purposes.,This,can,be,seen
,in,the,deferred,tax,liability,amount,of,Rs.,113.59,Crores.

Method,of,inventory,valuation,followed,by,the,company

Tata,Power

i. Inventories,of,stores,,spare,parts,,fuel,and,loose,tools,are,valued,at,or,below,cost.,Cost,is,
ascertained,on,weighted,average,basis.,
ii. Workinprogress,and,property,under,development,are,valued,at,lower,of,cost,and,net,
realizable,
value.,Cost,includes,cost,of,land,,material,,labour,,manufacturing,and,other,overheads.

There,has,been,no,significant,in,the,inventory,valuations,methods,followed,by,the,company,in,
the,past,few,years.

NTPC

i. Inventories,are,valued,at,the,lower,of,cost,,determined,on,weighted,average,basis,,and,net
,realizable,value.,
ii. The,diminution,in,the,value,of,obsolete,,unserviceable,and,surplus,stores,and,spares,is,asc
ertained,on,review,and,provided,for.

There,has,been,no,significant,in,the,inventory,valuations,methods,followed,by,the,company,in,
the,past,few,years.

Major,Accounting,Policies

The,following,table,gives,a,comparative,analysis,of,the,two,companies,on,the,basis,of,the,accoun
ting,policies,followed,by,them.

PGPM 2009-11, Section B, Group 2 Page 12

,

Basis Tata,Power NTPC

Preparatio The,financial,statements,have,been, The,financial,statements,are,prepared,on,accrual,b
n,of,accouprepared,and,presented,under,the,hi asis,of,accounting,under,historical,cost,convention
nts storical,cost,convention,,on,the,accr ,in,accordance,with,generally,accepted,accounting
ual,basis,of,accounting,and,in,accor ,principles,in,India,and,the,relevant,provisions,of,t
dance,with,the,generally,accepted,a he,Companies,Act,,1956,including,accounting,sta
ccounting,principles,in,compliance, ndards,notified,there,under.
with,the,relevant,provisions,of,the,
Companies,Act,,1956.

Leases • Finance,Lease:,Assets,taken, • Assets,taken,on,lease,are,capitalized,at,fair

on,finance,lease,are,account
ed,for,as,fixed,assets,in,acco
rdance,with,Accounting,Sta
ndard,
(AS,19),–,“Leases”.,Accordi
ngly,,the,assets,are,accounte
d,at,fair,value.,Lease,payme
nts,are,apportioned,between,
finance,charge,and,reduction
,in,outstanding,liability.
• Operating,Lease:,Assets,tak
en,on,lease,under,which,all,r
isks,and,rewards,of,ownersh
ip,are,effectively,retained,by
,the,lessor,are,classified,as,o
perating,lease.,Lease,payme
nts,under,operating,leases,ar
e,recognised,as,expenses,on,
straight-line,basis.
Investmen • Long,term,investments,are,c
ts arried,at,cost,,less,provision,
for,diminution,other,than,te
mporary,,if,any,,in,the,value
,of,such,investments.,
• Current,investments,are,carr
ied,at,lower,of,cost,and,fair,
value.
Foreign,E • Transactions,denominated,in
xchange, ,foreign,currencies,are,recor
Transacti ded,at,the,exchange,rate,pre
,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,ty
pe,of,fixed,assets.
• If,the,leased,assets,are,returnable,to,the,les
sor,on,the,expiry,of,the,lease,period,,depre
ciation,is,charged,over,its,useful,life,or,lea
se,period,,whichever,is,shorter.
• Lease,payments,are,apportioned,between,t
he,finance,charges,and,outstanding,liabilit
y,in,respect,of,assets,taken,on,lease.
• Leasehold,buildings,are,amortised,over,the
,lease,period,or,30,years,,whichever,is,low
er.,Leasehold,land,and,buildings,,whose,le
ase,period,is,yet,to,be,finalised,,are,amortis
ed,over,a,period,of,30,years.
• Current,Investments,are,valued,at,lower,of,
cost,and,fair,value,determined,on,an,indivi
dual,investment,basis.,
• Long,term,investments,are,carried,at,cost.,
Provision,is,made,for,diminution,,other,tha
n,temporary,,in,the,value,of,such,investme
nts.,
• Premium,paid,on,long,term,investments,is,
amortised,over,the,period,remaining,to,mat
urity.
• Foreign,currency,transactions,are,initially,r
ecorded,at,the,rates,of,exchange,ruling,at,t
he,date,of,transaction.,

PGPM 2009-11, Section B, Group 2 Page 13

ons vailing,on,the,date,of,the,tra
nsaction.,
• All,monetary,assets,and,mo
netary,liabilities,in,foreign,c
urrencies,other,than,net,inve
stments,in,non-
integral,foreign,operations,a
re,translated,at,the,relevant,r
ates,of,exchange,prevailing,
at,the,year,end,and,exchange
,differences,are,recognised,i
n,the,Profit,and,Loss,Accou
nt.,
• Exchange,differences,relatin
g,to,monetary,items,that,are,
in,substance,forming,part,of,
the,Company’s,net,investme
nt,in,non-
integral,foreign,operations,a
re,accumulated,in,Exchange,
Translation,Reserve,Accoun
t.,
• In,respect,of,foreign,exchan
ge,contracts,,the,premium,or
,discount,arising,at,the,incep
tion,of,such,a,contract,is,am
ortised,as,expense,or,income
,over,the,life,of,the,contract.
PGPM 2009-11, Section B, Group 2 Page 14
• At,the,balance,sheet,date,,foreign,currency
,monetary,items,are,reported,using,the,clos
ing,rate.,Non-
monetary,items,denominated,in,foreign,cur
rency,are,reported,at,the,exchange,rate,ruli
ng,at,the,date,of,transaction.,
• Exchange,differences,
(loss),,arising,from,translation,of,foreign,c
urrency,loans,relating,to,fixed,assets/capita
l,work-in-
progress,to,the,extent,regarded,as,an,adjust
ment,to,interest,cost,are,treated,as,borrowi
ng,cost.,
• Exchange,differences,arising,from,settlem
ent,/,translation,of,foreign,currency,loans,
(other,than,regarded,as,borrowing,cost),,de
posits,/,liabilities,relating,to,fixed,assets,/,c
apital,work-in-
progress,in,respect,of,transactions,entered,
prior,to,01.04.2004,,are,adjusted,in,the,carr
ying,cost,of,related,assets.,Such,exchange,
differences,arising,from,settlement,/,transl
ation,of,long,term,foreign,currency,moneta
ry,items,in,respect,of,transactions,entered,
on,or,after,01.04.2004,are,adjusted,in,the,c
arrying,cost,of,related,assets.,
• Other,exchange,differences,are,recognized,
as,income,or,expense,in,the,period,in,whic
h,they,arise.
COMPANY,COMPARISION:,COMMON,SIZE,ANALYSIS

NTPC ,,,,,,,,,,

Year Mar,09 Mar,08 Mar,07 Mar,06 Mar,05

SOURCES,OF,FUNDS,:
Share,Capital 8.72709 10.1542 11.1821 12.5699 13.9278
6 3 7 7 6
Reserves,Total 54.6861 56.3608 55.6131 56.6399 57.2083
8 9 6 5
Equity,Share,Warrants 0 0 0 0 0
Equity,Application,Money 0 0 0 0 0
Total,Shareholders,Funds 63.4131 66.5151 66.7953 69.2099 71.1362
9 1 7 3
Secured,Loans 9.49348 9.00796 9.25290 8.73929 7.50099
9 3 8 8 2
Unsecured,Loans 27.0933 24.4769 23.9517 22.0507 21.3628
2 3 3 7
Service,Line,&,Sec.Dep.,from,Cust. 0 0 0 0 0
Total,Debt 36.5868 33.4848 33.2046 30.7900 28.8638
1 9 3 7
Total,Liabilities 100 100 100 100 100
APPLICATION,OF,FUNDS,: 0 0 0 0 0
Gross,Block 65.9948 65.7220 68.7940 70.1857 72.8126
6 3 7 4 8
Less:,Accumulated,Depreciation 31.1333 33.5879 34.0112 34.9866 35.1197
6 6 8 2 2
Net,Block 34.8615 32.1340 34.7827 35.1991 37.6929
7 9 3 6
Lease,Adjustment 0 0 0 0 0
Capital,Work,in,Progress 27.9471 27.6817 22.8365 20.7845 16.7651
3 5 6 5 2

PGPM 2009-11, Section B, Group 2 Page 15

Investments 14.8002 18.8013 21.8263 29.4055 35.1303
4 7 6 5 6
Current,Assets,,Loans,&,Advances 0 0 0 0 0
Inventories 3.43283 3.33179 3.44937 3.60215 3.04299
8 9 7 7
Sundry,Debtors 3.79354 3.67315 1.69831 1.32293 2.32207
3 8 3
Cash,and,Bank 17.2219 18.3900 18.0566 12.9143 10.2671
8 5 6 5 4
Loans,and,Advances 9.31345 6.10473 11.9558 10.0248 8.16921
4 1 6 8 9
Total,Current,Assets 33.7618 31.4997 35.1602 27.8643 23.8014
1 3 1 2 2
Less:,Current,Liabilities,and,Provisio 0 0 0 0 0
ns
Current,Liabilities 7.93128 7.14718 7.21949 7.48542 8.83524
5 6 9
Provisions 3.43929 2.96960 7.38629 5.76796 4.55444
4 9 7 4 5
Total,Current,Liabilities 11.3705 10.1167 14.6057 13.2533 13.3896
7 9 9 9 9
Net,Current,Assets 22.3912 21.3829 20.5544 14.6109 10.4117
4 4 2 3 3
Miscellaneous,Expenses,not,written,of 0 0 0 0 0
f
Deferred,Tax,Assets 1.97869 1.84994 1.43508 1.43787 1.10453
2 1 3 5 3
Deferred,Tax,Liability 1.97879 1.85006 1.43521 1.43802 1.10470
8 4 9 7 2
Net,Deferred,Tax -0.00011 -0.00012 -0.00014 -0.00015 -0.00017
Total,Assets 100 100 100 100 100
Contingent,Liabilities 8.28764 6.46124 5.78603 4.82676 3.32221
5 6 4 3

TATA,POWER

,,,Year Mar,09 Mar,08 Mar,07 Mar,06 Mar,05,

, , , ,
,,SOURCES,OF,FUNDS,:
,Share,Capital, 1.59 1.98 2.05 2.38 2.48
,,Reserves,Total, 60.98 70.20 60.37 64.47 61.76
,,Equity,Share,Warrants 0 0.55 0 0 0

PGPM 2009-11, Section B, Group 2 Page 16

,,,Equity,Application,Money 0 0 0 0 0
,,Total,Shareholders,Funds 62.58 72.73 62.41 66.85 64.23
,,Secured,Loans, 28.30 20.93 14.01 11.38 13.24
,Unsecured,Loans, 9.12 6.34 23.58 21.77 22.52
,,,Service,Line,&,Sec.Dep.,from,Cust. 0 0 0 0 0
,,Total,Debt 37.42 27.27 37.59 33.15 35.77
,,Total,Liabilities, 100.00 100.00 100.00 100.00 100.00
,,APPLICATION,OF,FUNDS,: 0 0 0 0 0
,Gross,Block, 64.69 58.21 64.45 71.29 68.35
,,Less:,Accumulated,Depreciation, 27.32 31.22 33.10 35.16 33.23
,Net,Block, 37.37 26.99 31.35 36.13 35.12
,,,Lease,Adjustment 0 0 0 0 0
,Capital,Work,in,Progress 5.48 15.10 8.08 2.55 5.47
,,Investments, 39.19 39.78 36.93 41.06 43.81
,,Current,Assets,,Loans,&,Advances 0 0 0 0 0
,Inventories, 4.64 4.25 4.1 5.32 3.71
,,Sundry,Debtors, 11.43 12.70 15.28 12.73 8.71
,Cash,and,Bank 0.33 0.26 14.15 11.92 12.25
,,Loans,and,Advances, 17.30 17.59 8.29 5.8 6.88
,,Total,Current,Assets 33.70 34.80 41.82 35.77 31.56
,,,Less:,Current,Liabilities,and,Provision 0 0 0 0 0
s
,,Current,Liabilities, 10.22 11.26 11.65 8.81 8.84
,Provisions, 4.69 5.26 6.53 7.09 7.26
,,,Total,Current,Liabilities 14.91 16.52 18.18 15.90 16.10
,,Net,Current,Assets 18.79 18.28 23.63 19.88 15.46
,,Miscellaneous,Expenses,not,written,off, 0 0.02 0.06 0.19 0.28
,,Deferred,Tax,Assets 0.66 0.73 0.65 0.75 0.66
,,,Deferred,Tax,Liability 1.48 0.9 0.71 0.56 0.8
,,Net,Deferred,Tax -0.82 -0.17 -0.06 0.19 -0.14
,,,Total,Assets 100.00 100.00 100.00 100.00 100.00
,Contingent,Liabilities 73.47 75.87 14.05 18.58 3.48

ANALYSIS:

Total,shareholder’s,funds,for,both,companies,form,nearly,the,same,percentage,of,the,total,asset
s.,This,indicates,similarity,in,debt,to,equity,ratios.,Capital,work,in,progress,for,NTPC,has,been,st
eadily,increasing,from,2005,to,2009,as,a,percentage,of,total,assets,,indicating,the,company’s,gr
eater,capital,expenditure,and,building,fixed,assets.,Current,assets,for,both,companies,are,about
,one,third,of,total,assets,,which,seems,to,be,the,industry,norm.

PGPM 2009-11, Section B, Group 2 Page 17

Contingent,liabilities,for,TATA,power,shoot,up,suddenly,in,2008,to,about,75,percent,of,total,ass
ets.,This,is,unnatural,and,should,be,looked,into,,as,to,the,reason,behind,the,spike.,A,contingent,
liability,for,NTPC,has,been,fairly,low,over,the,years.,

One,stark,difference,is,the,high,amount,of,unsecured,loans,compared,to,secured,loans,in,case,
of,NTPC,,whereas,Tata,Power,has,a,higher,percentage,of,secured,loans.,Normally,we,would,ex
pect,to,see,more,secured,long,term,loans,than,unsecured,long,term,loans.,This,seems,to,be,an,
exception,for,NTPC,probably,because,of,its,status,as,a,PSU.,

While,loans,and,advances,for,NTPC,declined,from,11%,to,6%,from,2007,to,2008,,for,Tata,Pow
er,,it,increased,from,8%,to,17%.,This,shows,a,more,conservative,approach,for,NTPC.

COMMON,SIZE,P/L,STATEMENTS

Tata,Power:

,,,Year Mar,09, Mar,08, Mar,07 Mar,06 Mar,05

,,INCOME, , , , , ,
,Operating,Income, 100.01 100.00 100.00 100.01 100.01
,,,Excise,Duty 0.01 0.00 0.00 0.01 0.01
,,Net,Operating,Income 100.00 100.00 100.00 100.00 100.00
,,Other,Income, 8.82 8.69 7.78 8.08 10.46
,Stock,Adjustment, 0.00 -0.01 -0.18 0.20 -0.21
,,,Total,Income 108.82 108.68 107.60 108.27 110.25
,,EXPENDITURE,: 0.00 0.00 0.00 0.00 0.00
,Electricity,&,Fuel,Expenses, 72.88 71.82 71.38 65.23 57.93
,,Operating,Expenses 4.87 5.45 6.44 9.42 9.59
,Employee,Cost, 4.24 4.34 4.18 3.76 3.90
,,Selling,&,Administration,expenses, 1.69 1.96 2.23 2.51 3.55
,Miscellaneous,Expenses 1.00 1.15 0.86 1.40 2.53
,,Less,:,Pre- 0.21 0.18 0.11 0.12 0.52

PGPM 2009-11, Section B, Group 2 Page 18

operative,Expenses,Capitalised,
,,Total,Expenditure 84.48 84.53 84.99 82.21 76.98
,,,Operating,Profit 24.33 24.15 22.62 26.06 33.27
,Interest, 4.50 2.93 4.05 3.62 4.86
,,,Gross,Profit 19.83 21.22 18.56 22.45 28.41
,,Depreciation 4.52 4.89 6.18 6.09 9.14
,,,Profit,Before,Tax 15.32 16.32 12.39 16.35 19.27
,Tax 1.27 1.36 -2.90 3.44 4.03
,,Deferred,Tax 1.31 0.22 0.46 -0.60 1.23
,,Reported,Net,Profit 12.66 14.65 14.74 13.37 14.01
,,Extraordinary,Items, 3.17 5.03 0.71 3.19 4.48
,,Adjusted,Net,Profit 9.50 9.62 14.03 10.18 9.53
,,Adjustment,below,net,profit, 0.00 0.00 0.00 0.00 -0.01
,,P,&,L,Balance,brought,forward 28.91 33.07 35.26 31.37 30.43
,,Statutory,Appropriations, -0.62 0.99 0.48 0.77 -0.09
,Appropriations, 11.25 11.28 7.97 7.49 8.12
,,,P,&,L,Balance,brought,forward 30.94 35.46 41.55 36.47 36.41
,,Dividend 3.51 3.91 3.98 3.69 3.78
,,,Preference,Dividend 0.00 0.00 0.00 0.00 0.00
,,Equity,Dividend,% 1.58 1.77 2.01 1.86 1.91
,,,Earnings,Per,Share-Unit,Curr 0.55 0.64 0.71 0.65 0.68
,,Book,Value-Unit,Curr 5.25 5.93 6.17 5.86 6.31

NTPC:

,,,Year Mar,09 Mar,08 Mar,07 Mar,06 Mar,05

,,INCOME,: , , , , ,
,Operating,Income, 100.53 100.57 100.57 100.66 100.74
,,,Excise,Duty 0.53 0.57 0.57 0.66 0.74
,,Net,Operating,Income 100.00 100.00 100.00 100.00 100.00
,,Other,Income, 8.10 8.34 8.89 11.02 13.96
,Stock,Adjustment, 0.00 0.00 0.00 0.00 0.00
,,,Total,Income 108.10 108.34 108.89 111.02 113.96
,,EXPENDITURE,: 0.00 0.00 0.00 0.00 0.00
,Electricity,&,Fuel,Expenses, 65.02 59.75 61.13 61.75 61.21
,,Operating,Expenses 2.75 2.89 2.97 3.02 3.22
,Employee,Cost, 6.99 6.10 4.19 4.25 4.50
,,Selling,&,Administration,expenses, 1.37 1.45 1.51 1.60 1.81
,Miscellaneous,Expenses 0.66 1.03 0.63 1.46 0.50

PGPM 2009-11, Section B, Group 2 Page 19

,,Less,:,Pre- 1.44 1.47 1.28 0.97 0.66
operative,Expenses,Capitalised,
,,Total,Expenditure 75.35 69.74 69.16 71.11 70.58
,,,Operating,Profit 32.75 38.60 39.73 39.91 43.38
,Interest, 4.82 5.19 6.07 7.52 7.77
,,,Gross,Profit 27.93 33.41 33.66 32.39 35.62
,,Depreciation 5.63 5.77 6.36 7.66 8.68
,,,Profit,Before,Tax 22.30 27.65 27.30 24.72 26.94
,Tax 2.71 7.61 6.21 2.87 1.20
,,Deferred,Tax 0.00 0.00 0.00 0.00 0.00
,,Reported,Net,Profit 19.54 19.99 21.04 21.77 25.73
,,Extraordinary,Items, -0.05 -0.02 -0.02 -2.54 -0.07
,,Adjusted,Net,Profit 19.59 20.01 21.06 24.32 25.80
,,Adjustment,below,net,profit, 0.00 0.00 0.00 0.00 0.00
,,P,&,L,Balance,brought,forward 0.05 0.24 0.23 0.30 0.25
,,Statutory,Appropriations, 0.00 0.00 0.00 0.00 0.00
,Appropriations, 19.55 20.18 20.99 21.80 25.63
,,,P,&,L,Balance,brought,forward 0.04 0.06 0.28 0.28 0.36
,,Dividend 7.07 7.78 8.09 8.64 8.77
,,,Preference,Dividend 0.00 0.00 0.00 0.00 0.00
,,Equity,Dividend,% 0.09 0.09 0.10 0.10 0.11
,,,Earnings,Per,Share-Unit,Curr 0.02 0.02 0.02 0.02 0.03
,,Book,Value-Unit,Curr 0.17 0.18 0.18 0.21 0.23

ANALYSIS:

NTPC,and,Tata,power,have,been,able,to,reduce,operating,expenses,over,the,years.,But,Tata,P
ower,has,brought,it,down,drastically,from,9%,to,about,4%.,

Operating,profit,margin,for,NTPC,has,dropped,from,42%,to,32%,over,the,years.,For,tata,power,,
it,has,stayed,constant,at,about,24%.,Interest,as,a,percentage,of,net,income,has,consistently,dro
pped,for,NTPC,,whereas,it,has,stayed,nearly,contant,for,tata,power.,This,shows,a,decrease,in,d
ependence,on,loans,by,NTPC,as,interest,payments,are,directly,proportional,to,the,debt,of,a,co
mpany.,Depreciation,margin,also,has,consistently,dropped,as,a,percentage,of,net,income,for,bo
th,companies.,

PGPM 2009-11, Section B, Group 2 Page 20

PBT,margin,has,stayed,nearly,constant,for,Tata,Power,,and,in,the,case,of,NTPC,there,was,a,re
duction,in,2009.

NTPC,has,shown,a,positive,trend,in,earnings,before,tax,,as,can,be,seen.,There’s,been,a,dip,after,
2008,,which,can,be,attributed,to,the,recession.,

PGPM 2009-11, Section B, Group 2 Page 21

Tata,power,also,shows,a,positive,trend,in,earnings,before,tax.,Over,2001,to,2007,its,EBT,growth
,has,been,lower,than,that,of,NTPC.,But,in,2008,and,2009,,the,EBT,has,increased,steeply,,beating
,industry,trend,of,lower,EBT’s,due,to,recession.

RATIO,ANALYSIS

Fixed,asset,turnover,ratio:

This,financial,ratio,is,used,to,determine,the,efficiency,of,use,of,the,fixed,assets.,It,is,the,ratio,of,
sales,to,the,total,fixed,assets.

PGPM 2009-11, Section B, Group 2 Page 22

Fixed,Asset,Turnover,Rati
o 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
0.729 0.855 0.739 0.725 0.656 0.699 0.727 0.768 0.763
NTPC 8 6 0 6 3 9 9 0 6 0.7073
0.980 0.947 1.000 1.168 1.217 1.212 1.421 1.239 1.266
Tata,Power 1 0 2 1 9 3 0 9 7 1.2235

Tata,Power,has,consistently,been,having,better,fixed,asset,usage,efficiency,compared,to,NTPC
.,This,shows,NTPC,is,not,utilizing,its,fixed,assets,in,accordance,with,their,potential.,But,a,very,hi
gh,turnover,ratio,can,also,mean,that,the,company,is,ill,prepared,for,scaling,up,operations,to,me
et,increased,demand,and,that,it,is,maintaining,bare,minimum,fixed,assets.

Total,asset,turnover,ratio:

This,financial,ratio,is,used,to,determine,the,efficiency,of,use,of,the,company’s,assets.,It,is,the,ra
tio,of,sales,to,the,total,assets.

PGPM 2009-11, Section B, Group 2 Page 23

Total,Asset,Turnover,Rati
o 2000 2001 2002 2003 2004 2005 2006 2007 2008
NTPC 0.4887 0.5351 0.4452 0.4256 0.3661 0.3812 0.4075 0.4425 0.4568
Tata,Power 0.4480 0.5273 0.5422 0.6028 0.6253 0.4921 0.5497 0.4889 0.5331

Tata,Power,has,been,performing,better,here,as,well.,Total,asset,turnover,takes,into,account,the
,current,assets,as,well.,For,a,power,industry,,this,ratio,is,a,better,indicator,of,asset,utilization,effi
ciency,than,just,the,fixed,asser,turnover,ratio,because,current,assets,form,a,significant,portion,o
f,total,assets.,

Working,capital,turnover,ratio,
This,ratio,indicates,whether,or,not,working,capital,has,effectively,utilized,in,making,sales.,The,ra
tio,is,calculated,as,(Net,Sales)/,(Working,Capital).

PGPM 2009-11, Section B, Group 2 Page 24

Working,Capital,Turnover,Rati
o 2000 2001 2002 2003 2004 2005 2006 2007 20
1.613 2.040 1.497 1.284 3.460 3.660 2.788 2.153 2.1
NTPC 7 6 3 5 4 8 9 0 1
4.244 2.612 2.673 4.543 8.248 3.183 2.765 2.068 2.9
Tata,Power 1 0 0 7 5 8 2 6 8

This,ratio,indicates,how,quickly,and,efficiently,working,capital,is,being,utilized,to,generate,reve
nue.,This,ratio,should,not,be,viewed,in,isolation,but,with,respect,to,that,of,the,industry.,Tata,pow
er,has,performed,better,in,this,regard,with,higher,turnover,ratios,over,the,years.,The,lower,turnov
er,of,NTPC,shows,that,it,is,utilizing,its,working,capital,less,efficieantly.

Debtors’,Turnover,Ratio,–,Debtors,constitute,an,important,constituent,of,current,assets,and,th
erefore,the,quality,of,debtors,to,a,great,extent,determines,a,firm’s,liquidity.,The,ratio,is,calculate
d,as,(Credit,Sales)/,(Average,accounts,receivable)

PGPM 2009-11, Section B, Group 2 Page 25

 Debtors,Turnover,Ratio 2008 2009
NTPC 7.5723 8.0269
Tata,Power 5.8205 7.6857

Debtors’,turnover,ratio,is,a,measure,of,how,quickly,the,company,is,able,to,recover,money,from,
debtors.,Tata,power’s,ratio,has,increased,from,2008,to,2009.,This,shows,it,has,had,more,succe
sful,collections,from,debtors.,A,high,ratio,doesn’t,necessarily,mean,its,good.,It,could,mean,that,t
he,company,is,following,strict,credit,policy,with,its,customers,which,might,lead,to,loss,of,market,
share.,This,ratio,should,be,viewed,with,respect,to,the,average,in,the,industry.

Current,Ratio,:

This,ratio,mainly,gives,an,idea,of,the,company's,ability,to,pay,back,its,short-term,liabilities,
(debt,and,payables),with,its,short-term,assets,
(cash,,inventory,,receivables).,The,higher,the,value,of,the,current,ratio,,more,capable,the,compa
ny,is,of,paying,its,obligations.,An,ideal,current,ratio,is,2.,The,ratio,of,2,is,considered,as,safe,mar
gin,of,solvency,due,to,the,fact,that,if,the,current,assets,are,reduced,to,half,,then,also,the,credito

PGPM 2009-11, Section B, Group 2 Page 26

 rs,will,be,able,to,get,their,payments,in,full.,A,very,high,current,ratio,is,also,not,desirable,since,it,
means,less,efficient,use,of,funds.

Current,Rati
o 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
3.055 3.720 1.661 1.777 2.102 2.407 3.113
NTPC 2.3898 2.3869 5 6 0 6 4 3 6 2.9692
2.071 1.620 1.435 1.960 2.250 2.299 2.107
Tata,Power 1.5689 2.0748 2 7 2 0 6 6 0 2.2600

This,is,one,of,the,most,important,ratios,for,evaluating,a,company’s,short,term,liquidity.,NTPC,ha
s,had,a,higher,ratio,for,about,half,the,years,compared,to,Tata,power.,A,high,ratio,is,desirable,as
,it,indicates,that,the,company,can,meet,its,short,term,liabilities.,But,too,high,a,ratio,can,mean,th
at,current,assets,aren’t,being,utilized,efficiently,,upto,their,potential.,This,ratio,should,not,be,vie
wed,independently,but,in,conjunction,with,the,industry,average.

PGPM 2009-11, Section B, Group 2 Page 27

 Liquid,Ratio

Liquid,Rati
o 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
NTPC 2.1084 2.1138 2.7087 3.3956 1.4503 1.5503 1.8306 2.1711 2.7843 2.6673
Tata,Power 1.3322 1.8183 1.8261 1.4032 1.1697 1.7293 1.9158 2.0741 1.8496 1.9490

Liquid,ratio,is,a,more,stringent,test,for,liquidity.,It,excludes,inventory,and,prepaid,expenses,as,a,
current,asset.,This,is,because,it,takes,time,for,conversion,of,these,assets,into,cash.,Inventory,n
eeds,to,be,converted,into,finished,goods,,then,sold,and,then,cash,has,to,be,realised,from,debto
rs.,,Both,companies,have,had,similar,raios,over,the,years,with,NTPC,having,higher,ratio,currentl
y.,This,ratio,again,needs,to,be,viewed,with,respect,to,industry,average.

PGPM 2009-11, Section B, Group 2 Page 28

Super,Quick,,Rati
o 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
0.077 0.056 0.207 0.099 0.073 0.766 0.974 1.236 1.817
NTPC 9 8 0 9 8 8 4 3 8 1.5146
0.046 0.853 0.230 0.083 0.044 0.760 0.749 0.778 0.015
Tata,Power 8 3 9 1 0 8 8 1 6 0.0220

This,is,not,a,important,measure,of,liquidity,,since,it,takes,only,cash,balances,into,account.,In,the,
power,sector,,where,project,timelines,can,run,into,many,years,,cash,should,be,invested,to,earn,g
ood,retuns.,The,high,ratio,of,NTPC,shows,that,its,been,conservative,by,holding,onto,cash,,especi
ally,since,2007.,Tata,power’s,ratio,decreased,drastically,in,2008-
09,probably,owing,to,investment,losses,during,thr,recession.

PGPM 2009-11, Section B, Group 2 Page 29

 PROFITABILITY

Overall,Profitability,Ratio,
(ROI),–,It,indicates,the,percentage,of,return,on,the,total,capital,employed,in,the,business.,It,is,c
alculated,as,(Operating,Profit,X,100)/,(Capital,Employed).

ROI 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
10.688 10.908 9.686 7.904 8.649 10.833 11.190
NTPC 7 9 7 8.3051 3.9121 0 0 0 3 8.4486
9.421 12.135 12.525 6.833 6.429
Tata,Power 8.4405 8.0862 0 8 3 1 5 4.3202 5.6372 5.7669

Return,on,investments,is,the,returns,on,total,investment,by,the,company.,This,includes,the,prefer
ence,and,normal,shareholders,and,also,creditors,who,made,long,term,loans,to,the,company,
(bondholders,,banks,etc).,NTPC,has,been,performing,better,than,Tata,power,since,2005.

Return,on,Equity(,ROE)
It,measures,the,net,income,as,a,percentage,of,the,shareholders’,investments.net,income,after,t
ax,is,the,amount,available,to,shareholders,for,compensating,their,investment,and,the,risk,of,bei
ng,carried,by,them.,It,is,calculated,as,(PAT),/,(Net,Worth)

PGPM 2009-11, Section B, Group 2 Page 30

ROE 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
14.945 14.460 12.353 11.438 14.577 13.788 12.866 13.968 13.759
NTPC 9 4 6 2 9 9 0 8 3 13.7235
12.869 10.128 14.327 10.384 10.309 11.836 10.458 12.114 10.976
Tata,Power 1 1 0 0 6 7 9 0 4 11.7708

Return,on,equity,is,the,retuns,to,the,common,shareholders,of,a,company.,NTPC,has,been,perfo
rming,consistently,better,in,this,regard,as,well.

Dividend,Payout,ratio

PGPM 2009-11, Section B, Group 2 Page 31

Dividend,Payout,Rati
o 2000 2001 2002 2003 2004 2005 2006 2007 2008
18.980 20.006 20.000 19.625 20.572 34.079 39.525 38.349 38.832
NTPC 7 4 2 2 9 6 1 7 3
20.327 25.285 16.335 26.273 26.636 24.441 28.983 25.753 26.095
Tata,Power 3 9 5 6 8 2 2 6 4

Dividend,payout,ratio,is,the,percentage,of,profits,after,tax,that,are,distributed,to,shareholders,as
,dividends.,NTPC,has,had,a,high,dividend,ratio,compared,to,tata,power.,This,shows,that,Tata,p
ower,has,been,reinvesting,its,profits,to,grow.,Whereas,NTPC,has,followed,a,more,liberal,policy,
by,distributing,higher,dividends.

SOLVENCY:

Debt,to,equity,ratio

PGPM 2009-11, Section B, Group 2 Page 32

Debt,To,Equity,Rati
o 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
0.439 0.379 0.404 0.419 0.428 0.405 0.444 0.497 0.503
NTPC 8 7 2 0 2 8 9 1 4 0.5770
0.672 0.671 0.658 0.508 0.340 0.556 0.495 0.602 0.375
Tata,Power 2 6 9 3 9 8 9 2 0 0.5980

This,ratio,shows,how,much,a,company,has,relied,on,debt,as,a,source,of,financing.,As,we,see,,tat
a,power,has,consistently,been,having,a,higher,ratio,indicating,it,has,relied,on,debt,more,than,NT
PC.,NTPC,has,been,relatively,more,conservative,and,relied,on,owners’,equity,more.

Interest,coverage,ratio:
A,ratio,used,to,determine,how,easily,a,company,can,pay,interest,on,outstanding,debt.,T
he,interest,coverage,ratio,is,calculated,by,dividing,a,company's,earnings,before,interest,
and,taxes,(EBIT),of,one,period,by,the,company's,interest,expenses,of,the,same,period:

PGPM 2009-11, Section B, Group 2 Page 33

Interest,Coverage,Rati
o 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
3.588 3.559 4.489 3.748 0.598 2.670 2.822 4.030 4.723
NTPC 8 7 9 5 4 4 5 1 9 3.9460
2.320 2.120 1.899 2.532 2.989 2.854 3.232 2.179 3.610
Tata,Power 9 8 3 2 5 2 9 7 6 2.4440

This,ratio,shows,how,capable,is,a,company,in,meeting,its,interest,payments,on,long,term,loans.
,Lately,NTPC,has,been,having,better,ratios,than,Tata,power.,This,could,also,indicate,that,Tata,p
ower,has,been,taking,up,more,longter,debt,that,has,increased,interest,payment.

DU,PONT,ANALYSIS:

TATA,POWER:

Year 2009 2008 2007 2006 2005

ROE(Return,on,equity) 11.7708 10.97642 12.11398 10.45892 11.83673
Total,Asset,Turnover,Rati 0.524218 0.533143 0.488886 0.54968 0.492134
o
Financial,Leverage,Ratio 1.598019 1.375022 1.602237 1.495892 1.556805

PGPM 2009-11, Section B, Group 2 Page 34

 Net,Profit,Margin 0.140512 0.149729 0.154651 0.127197 0.154495

Return,on,equity,is,seperated,into,three,components,of,asset,turnover,ratio,,net,profit,and,financi
al,leverage.,The,increase,in,the,return,on,equity,from,2008,to,2009.,This,is,not,explained,by,eith
er,asset,turnover,or,net,profit,margin,,both,of,which,have,dropped.,The,increased,leverage,explai
ns,the,higher,ROE.,These,three,components,of,ROE,explain,the,effect,of,asset,utilization,efficien
cy,,leverage,and,net,profit,margin,on,ROE.,An,increase,in,these,ratios,leads,to,an,increase,in,RO
E.

NTPC:

YEAR 2009 2008 2007 2006 2005

ROE 13.72% 13.76% 13.97% 12.87% 13.79%
Total,Asset,Turnover,Ratio 0.44 0.46 0.44 0.41 0.38
Financial,Leverage,Ratio 1.58 1.50 1.50 1.44 1.41
Net,Profit,Margin 0.20 0.20 0.21 0.22 0.26

ROE,remained,fairly,stable,over,the,years,,except,a,dip,from,2005,to,2006.,This,can,be,attribute
d,to,a,reduction,in,net,profit,margin,from,0.26,to,0.22.,An,increase,in,leverage,alone,cannot,ens
ure,a,higher,return,on,equity,,as,the,company,should,be,able,to,generate,sufficient,profits,by,usi
ng,the,borrowed,money.,Otherwise,it’ll,lead,to,a,reduction,in,the,asset,turnover,ratio,which,balan
ces,the,increase,in,leverage,,and,there,is,no,net,effect,on,ROE.

CASH,FLOW,POSITION:

TATA,POWER

YEAR 2009 2008 2007 2006 2005

Cash,Flow,Summary
Cash,and,Cash,Equivalents,at,Beginning,of,the,yea 28.7 1002.7 974.05 986.4 51.9
r 1 9
Net,Cash,from,Operating,Activities, 648.61 1126.2 421.2 296.8 444.09
5 6
Net,Cash,Used,in,Investing,Activities, -2220.5 -2541.1 -931.06 144.4 -308.0
6
Net,Cash,Used,in,Financing,Activities, 1588.7 440.88 538.52 -453.7 798.58
1
Net,Inc/(Dec),in,Cash,and,Cash,Equivalent 16.8 -974.01 28.66 -12.44 934.59

PGPM 2009-11, Section B, Group 2 Page 35

Cash,and,Cash,Equivalents,at,End,of,the,year 45.5 28.7 1002.7 974.0 986.49
1 5

As,we,can,see,,the,operating,cash,flows,for,tata,power,are,inadequate,to,meet,its,investment,sp
ending.,From,2007,to,2009,,it,has,gone,in,for,lot,of,capital,expenditure,and,other,investment.,Th
e,financing,cashflows,has,been,positive,for,nearly,all,years.,This,is,because,the,company,has,g
one,in,for,raising,loans,as,a,form,of,financing.,The,negative,values,of,investing,cashflow,shows,t
hat,Tata,power,has,focussed,on,capacity,expansion,and,investing,in,other,assets.,

NTPC:

YEAR 2009 2008 2007 2006 2005

Cash,Flow,Summary
Cash,and,Cash,Equivalents,at,Beginning,of,the,yea 14933. 13314. 8471.4 6078. 6635.1
r 2 6 3
Net,Cash,from,Operating,Activities, 9688.1 9786 8065.3 5972 5099.8
Net,Cash,Used,in,Investing,Activities, -7500.4 -5818.7 -3145.8 -2699 -6413
Net,Cash,Used,in,Financing,Activities, -849.3 -2348.7 -76.3 -879.7 757
Net,Inc/(Dec),in,Cash,and,Cash,Equivalent 1338.4 1618.6 4843.2 2393. -556.8
1
Cash,and,Cash,Equivalents,at,End,of,the,year 16271. 14933. 13314. 8471. 6078.3
6 2 6 4

NTPC’s,cash,flow,statement,is,in,stark,contrast,with,that,of,Tata,power.,Here,,the,operating,cas
h,flows,in,all,years,are,more,than,sufficient,to,meet,both,investing,and,financing,activities.,The,n
egative,values,for,financng,activities,shows,that,NTPC,hasn’t,gone,in,for,issuing,new,debt,or,eq
uity,,and,is,just,paying,out,interests,and,dividends.,The,negative,values,for,investing,activities,in
dicate,NTPC,,like,Tata,Power,,is,going,for,capacity,expansion,and,investing,in,other,assets.,

PGPM 2009-11, Section B, Group 2 Page 36

References:,
1. http://www.capitaline.com

2. PROWESS

3. www.tatapower.com

4. www.ntpc.org

5. www.wikipedia.com

6. http://info.shine.com

7. www.powermin.gov.in

8. http://www.infraline.com/powersector/

PGPM 2009-11, Section B, Group 2 Page 37

ANNEXURE,

NTPC,BALANCE,SHEET
Mar, Mar, Mar, Mar, Mar, Mar, Mar, Mar, Mar, Mar,
,,,Year 09, 08, 07, 06, 05, 04, 03, 02, 01, 00,
,,SOURCES,OF,FUNDS,:
8,245 8,245 8,245 8,245 8,245 7,812 7,812 7,812 7,812 7,812.
,Share,Capital, .50 .50 .50 .50 .50 .50 .55 .55 .55 55
51,66 45,76 41,00 37,15 33,86 28,27 23,72 20,83 18,00 15,10
,,Reserves,Total, 8.30 6.50 8.00 4.00 8.20 5.10 7.30 9.93 8.24 0.27
,,Equity,Share,Warrants 0 0 0 0 0 0 0 0 0 0
,,,Equity,Application,Mon
ey 0 0 0 0 0 0 0 0 0 0
59,9 54,0 49,2 45,3 42,1 36,0 31,5 28,6 25,8
,,Total,Shareholders,F 13.8 12.0 53.5 99.5 13.7 87.6 39.8 52.4 20.7 22,91
unds 0 0 0 0 0 0 5 8 9 2.82

PGPM 2009-11, Section B, Group 2 Page 38

 8,969 7,314 6,822 5,732 4,440 4,584 4,122 1,645 1,965 2,427.
,,Secured,Loans, .60 .70 .90 .70 .70 .40 .60 .50 .47 83
25,59 19,87 17,66 14,46 12,64 10,86 9,093 9,935 7,839 7,649.
,Unsecured,Loans, 8.20 5.90 1.50 4.60 7.10 8.40 .10 .68 .25 56
,,,Service,Line,&,Sec.Dep.
,from,Cust. 0 0 0 0 0 0 0 0 0 0
34,5 27,1 24,4 20,1 17,0 15,4 13,2 11,5
67.8 90.6 84.4 97.3 87.8 52.8 15.7 81.1 9,80 10,07
,,Total,Debt 0 0 0 0 0 0 0 8 4.72 7.39
94,48 81,20 73,73 65,59 59,20 51,54 44,75 40,23 35,62 32,99
,,Total,Liabilities, 1.60 2.60 7.90 6.80 1.50 0.40 5.55 3.66 5.51 0.21
,,APPLICATION,OF,FUN
DS,:
62,35 53,36 50,72 46,03 43,10 40,02 36,61 32,89 32,30 28,47
,Gross,Block, 3.00 8.00 7.30 9.60 6.20 8.10 0.60 1.15 7.35 6.24
,,Less:,Accumulated,Depr 29,41 27,27 25,07 22,95 20,79 18,77 16,74 15,21 13,84 11,44
eciation, 5.30 4.30 9.20 0.10 1.40 3.60 5.60 3.11 1.61 0.30
32,93 26,09 25,64 23,08 22,31 21,25 19,86 17,67 18,46 17,03
,Net,Block, 7.70 3.70 8.10 9.50 4.80 4.50 5.00 8.04 5.74 5.94
,,,Lease,Adjustment 0 0 0 0 0 0 0 0 0 0
26,40 22,47 16,83 13,63 9,925 7,495 6,386 6,558 3,816 5,055.
,Capital,Work,in,Progress 4.90 8.30 9.20 4.00 .20 .30 .30 .38 .53 27
13,98 15,26 16,09 19,28 20,79 17,33 3,667 4,028 3,991 901.5
,,Investments, 3.50 7.20 4.30 9.10 7.70 8.00 .40 .11 .46 9
,,Current,Assets,,Loans,&
,Advances
3,243 2,705 2,543 2,362 1,801 1,738 1,771 2,018 1,839 2,022.
,Inventories, .40 .50 .50 .90 .50 .00 .20 .34 .78 69
3,584 2,982 1,252 1,374 12,43 11,53 9,585 8,208.
,,Sundry,Debtors, .20 .70 .30 867.8 .70 469.9 4.90 2.82 .14 83
16,27 14,93 13,31 8,471 6,078 1,204 382.9 560.1
,Cash,and,Bank 1.60 3.20 4.60 .40 .30 609.1 544.7 .86 5 9
8,799 4,957 8,816 6,576 4,836 10,88 5,527 3,025 4,271 6,389.
,,Loans,and,Advances, .50 .20 .00 .00 .30 4.60 .80 .32 .50 08
31,89 25,57 25,92 18,27 14,09 13,70 20,27 17,78 16,07 17,18
,,Total,Current,Assets 8.70 8.60 6.40 8.10 0.80 1.60 8.60 1.34 9.37 0.79
,,,Less:,Current,Liabilities
,and,Provisions
7,493 5,803 5,323 4,910 5,230 6,524 3,420 3,145 2,766 2,468.
,,Current,Liabilities, .60 .70 .50 .20 .60 .40 .15 .85 .23 80
3,249 2,411 5,446 3,783 2,696 1,724 2,030 2,673 3,970 4,720.
,Provisions, .50 .40 .50 .60 .30 .50 .20 .60 .41 50
10,74 8,215 10,77 8,693 7,926 8,248 5,450 5,819 6,736 7,189.
,,,Total,Current,Liabilities 3.10 .10 0.00 .80 .90 .90 .35 .45 .64 30
21,15 17,36 15,15 9,584 6,163 5,452 14,82 11,96 9,342 9,991.
,,Net,Current,Assets 5.60 3.50 6.40 .30 .90 .70 8.25 1.89 .73 49
,,Miscellaneous,Expenses
,not,written,off, 0 0 0 0 0 0 8.7 7.24 9.05 5.92
1,869 1,502 1,058
,,Deferred,Tax,Assets .50 .20 .20 943.2 653.9 940.8 0 0 0 0
1,869 1,502 1,058
,,,Deferred,Tax,Liability .60 .30 .30 943.3 654 940.9 0.1 0 0 0
,,Net,Deferred,Tax -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 -0.1 0 0 0
94,4 81,2 73,7 65,5 59,2 51,5 44,7 40,2 35,6
81.6 02.6 37.9 96.8 01.5 40.4 55.5 33.6 25.5 32,99
,,,Total,Assets 0 0 0 0 0 0 5 6 1 0.21
7,830 5,246 4,266 3,166 1,966 1,950 2,048 1,420 2,410 2,142.
,Contingent,Liabilities .30 .70 .50 .20 .80 .80 .30 .32 .68 61
,
http://www.capitaline
.com

PGPM 2009-11, Section B, Group 2 Page 39

NTPC,PROFIT,AND,LOSS,STATEMENT
,,,Year Mar,09 Mar,08 Mar,07 Mar,06 Mar,05 Mar,04 Mar,03 Mar,02 Mar,01 Mar,00
(12), (12), (12), (12), (12), (12), (12), (12), (12), (12),
,,INCOME,:
,Operating,Income, 42,196. 37,302. 32,817. 26,904. 22,732. 18,868. 19,047. 17,911. 19,064. 16,123.
80 40 30 90 40 40 50 05 95 22
,,,Excise,Duty 221.6 211.4 185.6 175.7 167.4 0 0 0 0 0
,,Net,Operating,Income 41,975. 37,091. 32,631. 26,729. 22,565. 18,868. 19,047. 17,911. 19,064. 16,123.
20 00 70 20 00 40 50 05 95 22
,,Other,Income, 3,400.0 3,091.7 2,901.5 2,945.3 3,151.2 7,243.1 1,028.6 722.78 1,279.2 1,087.1
0 0 0 0 0 0 0 2 9
,Stock,Adjustment, 0 0 0 0 0 0 0 0 0 0
,,,Total,Income 45,375. 40,182. 35,533. 29,674. 25,716. 26,111. 20,076. 18,633. 20,344. 17,210.
20 70 20 50 20 50 10 83 17 41
,,EXPENDITURE,:
, 27,292. 22,160. 19,947. 16,504. 13,811. 12,284. 11,134. 10,582. 10,036. 8,141.7
Electricity,&,Fuel,Expe 30 70 60 20 30 20 40 88 52 7
nses,
,,Operating,Expenses 1,152.9 1,073.7 969.1 807.8 726.9 632.6 628.3 637.81 608.73 540.08
0 0
,Employee,Cost, 2,934.3 2,261.0 1,367.1 1,136.5 1,016.4 960.2 899.2 884.87 813.01 654.94
0 0 0 0 0
,,Selling,&,Administrati 574.9 536.3 494 429 408.1 323.2 239 300.65 242.17 201.07
on,expenses,
, 278.5 380.8 207 390.3 113.7 744.1 783 348.26 1,246.2 1,032.8
Miscellaneous,Expens 4 8
es
,,Less,:,Pre- 604.6 546.8 416.5 259.8 149.1 115.4 -117.5 124.04 93.71 59.2
operative,Expenses,Ca
pitalised,
,,Total,Expenditure 31,628. 25,865. 22,568. 19,008. 15,927. 14,828. 13,801. 12,630. 12,852. 10,511.
30 70 30 00 30 90 40 43 96 54
,,,Operating,Profit 13,746. 14,317. 12,964. 10,666. 9,788.9 11,282. 6,274.7 6,003.4 7,491.2 6,698.8
90 00 90 50 0 60 0 0 1 7
,Interest, 2,022.9 1,923.6 1,982.1 2,010.1 1,752.3 3,369.7 991.6 868.03 1,091.7 982.56
0 0 0 0 0 0 6
,,,Gross,Profit 11,724. 12,393. 10,982. 8,656.4 8,036.6 7,912.9 5,283.1 5,135.3 6,399.4 5,716.3
00 40 80 0 0 0 0 7 5 1
,,Depreciation 2,364.5 2,138.5 2,075.4 2,047.7 1,958.4 2,023.2 1,529.1 1,383.2 2,325.6 2,085.4
0 0 0 0 0 0 0 9 4 4
,,,Profit,Before,Tax 9,359.5 10,254. 8,907.4 6,608.7 6,078.2 5,889.7 3,754.0 3,752.0 4,073.8 3,630.8
0 90 0 0 0 0 0 8 1 7
,Tax 1,137.2 2,823.2 2,027.3 767.6 271.2 628.9 146.4 212.46 340.01 206.34
0 0 0
,,Deferred,Tax 0 0 0 0 0 0 0.1 0 0 0
,,Reported,Net,Profit 8,201.3 7,414.8 6,864.7 5,820.2 5,807.0 5,260.8 3,607.5 3,539.6 3,733.8 3,424.5
0 0 0 0 0 0 0 2 0 3
,,Extraordinary,Items, -20.13 -8.58 -7.13 -679.9 -15.48 856.06 6.73 -2.61 -2.47 -3.55
,,Adjusted,Net,Profit 8,221.4 7,423.3 6,871.8 6,500.1 5,822.4 4,404.7 3,600.7 3,542.2 3,736.2 3,428.0
3 8 3 0 8 4 7 3 7 8
,,Adjustment,below,net 0 0 0 0 0 0 0 0 0 0
,profit,
,,P,&,L,Balance,brough 21.1 89.9 75.2 81.2 56.6 68.1 149.6 280.81 11.68 140.57
t,forward
,,Statutory,Appropriati 0 0 0 0 0 0 0 0 0 0
ons,
,Appropriations, 8,207.3 7,483.6 6,850.0 5,826.2 5,782.4 5,272.3 3,689.0 3,670.8 3,464.6 3,553.4
0 0 0 0 0 0 0 4 7 2
,,,P,&,L,Balance,broug 15.1 21.1 89.9 75.2 81.2 56.6 68.1 149.59 280.81 11.68
ht,forward
,,Dividend 2,968.3 2,885.9 2,638.5 2,308.7 1,979.0 1,082.3 708 707.93 747 650
0 0 0 0 0 0

PGPM 2009-11, Section B, Group 2 Page 40

,,,Preference,Dividend 0 0 0 0 0 0 0 0 0 0
,,Equity,Dividend,% 36 35 32 28 24 13.85 9.06 9.06 9.56 8.32
,,,Earnings,Per,Share- 9.34 8.4 7.85 6.67 6.72 6.56 4.57 453.07 468.17 424.26
Unit,Curr
,,Book,Value-Unit,Curr 72.66 65.5 59.73 55.06 51.07 46.19 40.37 3,667.4 3,305.0 2,932.8
9 4 2
,
http://www.capitaline.c
om

TATA,POWER,BALANCE,SHEET

,,,Year Mar,0 Mar,0 Mar, Mar, Mar, Mar, Mar, Mar, Mar, Mar,
9, 8, 07, 06, 05, 04, 03, 02, 01, 00,
,,SOURCES,OF,FUNDS,:
,Share,Capital, 221.4 220.7 197.9 197.9 197.9 197.9 197.9 197.9 197.9 115.5
4 2 2 2 2 2 1 1 1 4
,,Reserves,Total, 8,470. 7,817. 5,835 5,357 4,938 4,852 4,522 4,034 3,670 1,741
92 20 .19 .72 .55 .42 .33 .73 .15 .05
,,Equity,Share,Warrants 0 60.99 0 0 0 0 0 0 0 0
,,,Equity,Application,Mon 0 0 0 0 0 0 0 0 0 0.1
ey
,,Total,Shareholders,Fun 8,692 8,098 6,03 5,55 5,13 5,05 4,72 4,23 3,86 1,85
ds .36 .91 3.11 5.64 6.47 0.34 0.24 2.64 8.06 6.69
,,Secured,Loans, 3,931. 2,331. 1,354 946 1,059 721.7 1,340 1,506 1,337 624.3
71 09 .30 .07 3 .37 .54 .96 1
,Unsecured,Loans, 1,266. 706.1 2,279 1,809 1,800 999.6 1,058 1,282 1,259 623.6
49 8 .06 .00 .94 9 .83 .39 .93 9
,,,Service,Line,&,Sec.Dep 0 0 0 0 0 0 0 0 0 0
.
,from,Cust.
,,Total,Debt 5,198 3,037 3,63 2,75 2,86 1,72 2,39 2,78 2,59 1,24
.20 .27 3.36 5.00 0.01 1.42 9.20 8.93 7.89 8.00
,,Total,Liabilities, 13,89 11,13 9,666 8,310 7,996 6,771 7,119 7,021 6,465 3,104
0.56 6.18 .47 .64 .48 .76 .44 .57 .95 .69
,,APPLICATION,OF,FUND
S,:
,Gross,Block, 8,985. 6,482. 6,229 5,924 5,465 5,534 5,370 4,975 4,397 1,637
86 25 .71 .74 .84 .70 .79 .12 .42 .42
,,Less:,Accumulated,Dep 3,795. 3,476. 3,199 2,921 2,657 2,364 2,034 1,724 1,446 622.1
reciation, 32 76 .40 .72 .37 .36 .74 .57 .88 9
,Net,Block, 5,190. 3,005. 3,030 3,003 2,808 3,170 3,336 3,250 2,950 1,015
54 49 .31 .02 .47 .34 .05 .55 .54 .23
,,,Lease,Adjustment 0 0 0 0 0 0 0 0 0 0
, 761.1 1,681. 781.0 211.8 437.6 306.3 337.9 556.0 649.4 403.7
Capital,Work,in,Progress 6 74 5 1 5 9 5 5 8 9
,,Investments, 5,443. 4,430. 3,570 3,412 3,502 2,728 2,451 1,882 1,505 1,354
47 00 .15 .17 .92 .83 .83 .09 .19 .92
,,Current,Assets,,Loans,
&,Advances
,Inventories, 644.1 473.6 396.4 442.2 297.0 313.2 330.9 325.9 311.4 136.3
4 1 2 6 3 2 8 6 8 8
,,Sundry,Debtors, 1,587. 1,414. 1,476 1,058 696.6 718.2 889.0 765.9 573.3 293.8
97 52 .63 .23 3 1 1 1 3 9
,Cash,and,Bank 45.5 28.7 1,367 990.5 979.6 51.9 126.4 307.0 1,036 26.96
.72 5 1 1 .27

PGPM 2009-11, Section B, Group 2 Page 41

,,Loans,and,Advances, 2,403. 1,958. 801.5 482 550.3 609.6 1,119 1,355 598.6 446.4
53 68 6 6 8 .77 .07 8 9
,,Total,Current,Assets 4,681. 3,875. 4,042 2,973 2,523 1,693 2,466 2,753 2,519 903.7
14 51 .33 .04 .62 .01 .17 .95 .76 2
,,,Less:,Current,Liabilitie
s,and,Provisions
,,Current,Liabilities, 1,419. 1,253. 1,126 731.8 706.8 907.2 1,067 1,056 891.0 387.5
33 87 .26 1 7 1 .22 .41 2
,Provisions, 651.9 585.4 631.5 589.2 580.7 272.4 454.4 273.2 323.4 188.5
9 4 8 5 3 1 6 1
,,,Total,Current,Liabilitie 2,071. 1,839. 1,757 1,321 1,287 1,179 1,521 1,329 1,214 576.0
s 32 31 .84 .01 .57 .66 .65 .62 .48 1
,,Net,Current,Assets 2,609. 2,036. 2,284 1,652 1,236 513.3 944.5 1,424 1,305 327.7
82 20 .49 .03 .05 5 2 .33 .28 1
,,Miscellaneous,Expenses 0 1.69 6.17 15.46 22.71 15.61 28.52 42.16 55.46 3.04
,not,written,off,
,,Deferred,Tax,Assets 91.13 81.22 63.25 62.68 52.5 86.31 67.71 0 0 0
,,,Deferred,Tax,Liability 205.5 100.1 68.95 46.53 63.82 49.07 47.14 133.6 0 0
6 6 1
,,Net,Deferred,Tax - -18.94 -5.7 16.15 - 37.24 20.57 - 0 0
114.4 11.32 133.6
3 1
,,,Total,Assets 13,89 11,13 9,66 8,31 7,99 6,77 7,11 7,02 6,46 3,10
0.56 6.18 6.47 0.64 6.48 1.76 9.44 1.57 5.95 4.69
,Contingent,Liabilities 10,20 8,449. 1,358 1,543 278.0 236.3 181.8 189.8 179.2 152.4
5.10 38 .37 .81 3 7 2 9
,
http://www.capitaline.c
om

TATA,POWER,PROFIT,AND,LOSS,STATEMENT

,,,Year Mar,09( Mar,08( Mar,07( Mar,06( Mar,05( Mar,04( Mar,03( Mar,02( M

12), 12), 12), 12), 12), 12), 12), 12), 1
,,INCOME,:
,Operating,Income, 7,282.28 5,937.36 4,725.92 4,568.67 3,935.63 4,237.05 4,292.40 3,807.24 3
,,,Excise,Duty 0.6 0.18 0.12 0.48 0.29 2.66 0.75 0 0
,,Net,Operating,Income 7,281.68 5,937.18 4,725.80 4,568.19 3,935.34 4,234.39 4,291.65 3,807.24 3
,,Other,Income, 642.05 516.08 367.71 369.06 411.44 179.87 165.73 368.12 2
,Stock,Adjustment, -0.07 -0.74 -8.32 8.95 -8.08 -10.49 -11.98 -9.85 7
,,,Total,Income 7,923.6 6,452.5 5,085.1 4,946.2 4,338.7 4,403.7 4,445.4 4,165.5 3
6 2 9 0 0 7 0 1 0
,,EXPENDITURE,:
, 5,306.97 4,263.86 3,373.49 2,979.71 2,279.68 2,258.36 2,469.49 2,167.47 2
Electricity,&,Fuel,Expenses,
,,Operating,Expenses 354.81 323.28 304.18 430.29 377.26 273.19 187.92 179.67 1
,Employee,Cost, 309.06 257.8 197.67 171.97 153.51 189.66 139.5 134.82 1
,,Selling,&,Administration,e 123.3 116.43 105.61 114.76 139.64 206.11 183.4 189.56 1
xpenses,
,Miscellaneous,Expenses 72.85 68 40.68 64.17 99.52 132.5 133.41 192.69 1
,,Less,:,Pre- 15.21 10.46 5.36 5.38 20.3 7.56 4.11 0.12 0

PGPM 2009-11, Section B, Group 2 Page 42

operative,Expenses,Capitali
sed,
,,Total,Expenditure 6,151.78 5,018.91 4,016.27 3,755.52 3,029.31 3,052.26 3,109.61 2,864.09 2
,,,Operating,Profit 1,771.88 1,433.61 1,068.92 1,190.68 1,309.39 1,351.51 1,335.79 1,301.42 9
,Interest, 327.76 173.87 191.59 165.28 191.44 283.72 341.21 348.28 2
,,,Gross,Profit 1,444.12 1,259.74 877.33 1,025.40 1,117.95 1,067.79 994.58 953.14 7
,,Depreciation 328.85 290.5 291.92 278.34 359.62 333.95 318.04 281.65 2
,,,Profit,Before,Tax 1,115.27 969.24 585.41 747.06 758.33 733.84 676.54 671.49 5
,Tax 92.18 81.01 -137.12 157.05 158.42 223.66 198.37 74.93 1
,,Deferred,Tax 95.49 13.24 21.85 -27.47 48.55 -16.67 -58.25 88.33 0
,,Reported,Net,Profit 922.2 869.9 696.8 610.54 551.36 526.85 536.42 508.23 3
,,Extraordinary,Items, 230.59 298.81 33.56 145.6 176.19 26.83 25.19 183.39 5
,,Adjusted,Net,Profit 691.61 571.09 663.24 464.94 375.17 500.02 511.23 324.84 3
,,Adjustment,below,net,pro 0 0 0 0 -0.36 0 0 0 0
fit,
,,P,&,L,Balance,brought,for 2,105.22 1,963.66 1,666.15 1,432.83 1,197.64 1,019.41 897.87 823.05 7
ward
,,Statutory,Appropriations, -45.3 58.59 22.83 35.29 -3.73 42.16 69.91 126.85 2
,Appropriations, 819.51 669.75 376.46 341.93 319.54 306.46 344.97 306.56 2
,,,P,&,L,Balance,brought,for 2,253.21 2,105.22 1,963.66 1,666.15 1,432.83 1,197.64 1,019.41 897.87 8
ward
,,Dividend 255.26 231.98 188.22 168.41 148.6 138.69 128.78 99.06 9
,,,Preference,Dividend 0 0 0 0 0 0 0 0 0
,,Equity,Dividend,% 115 105 95 85 75 70 65 50 5
,,,Earnings,Per,Share- 40.21 38.19 33.59 29.66 26.8 25.72 26.27 25.68 1
Unit,Curr
,,Book,Value-Unit,Curr 382.06 352.27 291.77 267.76 248.36 245.02 229.85 206.13 1
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PGPM 2009-11, Section B, Group 2 Page 43