Profile: Finance

                                          By:-                                                     Arvind Singh Mahor

 Internship Plan & Expectations:  Case: I  According to the given project• To gain the overall idea about the organization and the corporate

governance..• To gain knowledge about the structure and the functioning of the finance

department and Return-on-Investment policy. • To study the various financial statements like Income Statement, Balance

Sheet, Cash Flow Statement.• To see the applicability and usability of theory which have been taught

in the class to gain the practical knowledge.• To study the capital budgeting, Dividend Policy and Working Capital

Management policy. • To study the investment decisions based on the return.• Depending on the studies as started above suggest some new innovative

ideas which may be beneficial to the organization.

Internship Plan & Expectation:

Case: II No project is assigned immediately

•  Will gather all relevant data from NTPC site like their Balance sheet, Income statement & Cash flow statement and study and analyze  all the information pertaining to company's financial performance.

• Will try to seek help from senior persons regarding the financial performance.

• Will study all the past investments & their returns• Will try to find out about the future investment plans and their

funding issues.

 

Basic Capital Data related to Equity and Leverage Structure:

i.  Shareholder Patternii. Fund Mobilization    - Capital Structure    - Debt Fundingiii. Opportunities for cost effective Debt raising

Shareholding Pattern

 

Fund MobilizationLeveraging strong ratios to raise debt at optimal cost

Click to add conte

Final Takeaway from the Internship:

• Draw SWOT analysis chart for all the financial activities and clearly pointing the Strengths, Weaknesses, Opportunities, Threats.

• Study all the financial ratios like:      - Liquidity Ratios      - Solvency Ratios     - Solvency Ratios    - Profitability Ratios•   Risk Analysis of all the financial activities being taken.•  Knowing about the new beneficial venture areas.• Global expansion plan.• New ideas for further diversification like financing, leasing,

insurance.

Parag Goyal

• Profile Offered - Finance

• Business Development though Acquisitions– Add power generation capacity at low gestation period.– Recent acquisition- 705MW Badarpur Thermal Power Station Central

Electricity Authority. Original owner- Central Electricity Authority.• Financial Analysis of Acquisitions

– Discounted Cash Flow analysis approach to value target firm.– Estimating the Discount Rate and Valuing the Cash Flows.– Purchase Accounting, Income Statement effects and Tax

considerations.• Financial implications of Diversification, Joint Ventures, Backward

integration (coal mining).– Captive Coal mining business.– Nuclear Power generation (JV NPCIL)

Shareholding Pattern and Debt Management

• Public offering through Fast Track Route.– Reduce process time.

• Alternate Book building method.– Higher Weighted Average price than floor price.

• Disinvestment of equity shares by GOI.• Dividend Policy.

– Current Retention Rate of 70%.• Bonds on both Public and Private Placement basis.• Public Deposits to meet working capital requirements.

Sources for above Slides

• Official NTPC website http://www.ntpcindia.com/• http://www.ntpc.co.in/images/content/media/pressrelease/Performance

Highlight-2009-10.pdf• http://www.ntpcindia.com/images/content/investors/6thanalystmeet02a

ug2010.pdf

• FINANCE -- GAUTAM GOGOI

Project- Study of the financial aspects to be considered before undertaking a projectSteps- •Finding possible alternatives•NPV Analysis of alternatives

–Demand forecasting–Estimation of future cash flows–Estimating the discounting rate–Calculating the NPV’s

•Risk Analysis and risk mitigation•Sources of funding – Debt vs equity

Expected Learnings• Apply theoretical concepts like CAPM or NPV rule or whatever model they

are using to practical situations and understand how decisions are made keeping these things in mind

• To get an insight into the working of a successful PSU and understand how the model has been successful

• To get an understanding of end to end picture of the project given• Get an understanding about the interaction between various functions

and how they come to a joint decision by keeping the concerns of each department in mind.

• To go beyond numbers and get an insight into finer things like estimation, choosing correct rates, etc.

• To understand the tangible (facts and numbers) and intangible factors (judgment) which managers keep in mind while deciding on capital budgeting

FINANCE

Saurabh Singh

Pre requisites of the summer internship

• Study about the profile of the company.• SWOT analysis of NTPC

– Study of factors which may have a negative or positive impact on the business and operations of the company.

• Study of literature available about the company.

Objectives of summer internship-

• To gain the overall idea about the organization. • To gain a firsthand knowledge about the structure and the functioning of

the various departments.• To gain and enhance different managerial skills. • To understand the applicability and usability of theory and concepts which

have been taught to us during the first year of the course.• To find out the financial performance of the organization.• To find out the importance of finance in business. • To understand the major functions of finance & accounts department.• To gain understanding of basis of financial decisions made by managers

during the course of the project.

Key takeaways from summer internship-

• Understanding of integration of working of various departments in the company with specific stress on working of finance department.

• Understanding of different financial products a company avails to reduce its cost of borrowings.

• Understanding of various checks and controls implemented by company to control its operating costs.

• Understanding of various accounting procedures adopted by the company.• Understanding of financial position of the company, by making

comparative analysis of the various expenses incurred and income earned by the company in the consecutive financial years.

• Understanding of working capital requirements of the company with the help of ratio analysis. It includes how company manages its working capital cycle and its approach to the working capital handling.

• Understanding of the cash management, and debtors/ receivable management of the company

NTPC Summer Internship Operations

-Sathiyaseelan M [10BM60080]

NTPC Power Plants across India

Source: http://www.ntpc.co.in

Installed Capacity

NO. OF PLANTS Number of plants CAPACITY (MW)NTPC OwnedCoal 15 26,875

Gas/Liquid Fuel 7 3,955

Total 22 30,830Owned By JVsCoal & Gas 6 3,364Total 28 34,194

REGION COAL GAS TOTAL

Northern 8,015 2,312 10,327

Western 6,860 1,293 8,153

Southern 4,100 350 4,450

Eastern 7,900 - 7,900

JVs 1,424 1,940 3,364

Total 28,299 5,895 34,194

Reference : http://www.ntpc.co.in

Kind of Projects We expect NTPC is on expansion spree; Identifying Facility locations

for NTPC. NTPC is diversifying across the power value chain by

considering backward and forward integration into areas such as power trading, transmission, distribution, coal mining, coal beneficiation, Ash Business etc. ; Expect Supply chain related projects in these areas.

Projects on procurement process. Projects on coal import, transportation and handling. Projects on improving capacity utilization. Projects on Renewable Energy & Distributed Generation.

Internship plan

To get an overall view of production and operations management processes followed in NTPC.

Thorough study of projects where we would be put. Problem Formulation. Problem Analysis. Application of relevant methodologies discusses in

class. Submission of our proposals.

NTPC Summer Internship Operations

-Sandeep Kumar Jena [10BM60078]

WHAT AM I SUPPOSED TO DO ?Study different ongoing operational activities at the site.Finding out different pros and cons of the activities.Finding out different problematic areas in the process flow.Finding the solutions for the problemsApplying the things that I have learned till now.Help in improvement of the efficiency of the process flow.Respect the culture of the organization.Contribute positively to the organization.Become an useful asset to the organization.Create an good impression in the organization by my performance and develop a healthy relation with the organization.

Expected Projects at NTPC The diversification NTPC is very less which is a big threat

to the firm. Out of 34000(MW) installed capacity around 30000(MW)

power is generated from coal based power generation. So being a socially responsible company, NTPC is trying

to generate power from nonconventional energy sources like biomass, wind, solar, micro hydel, bio-fuel etc. which are considered as environmentally clean and less noise sourse of power.

So being from agricultural engineering background i would like to do a Project related to “Implementation of power generation projects in the rural areas using locally available renewable resources such as biomass, wind, solar, micro hydel, bio-fuel etc”.

Continued….

NTPC had planned to add about 1,000 MW thru renewable resources by 2017. In addition, capacity addition of 301 MW through Solar PV and Thermal by March 2014 has envisaged in line with National Solar Mission.

In this kind of project I would like to analyze different possible locations for power generation plant from renewable sources.

Check the feasibility of the operation. Check the cost effectiveness of the project. Consideration of different constraints. Conducting value chain analysis. Availability of raw materials and man power. Demand and supply analysis of power. Forecasting demand.

My Expectation from NTPC Allocation of live project. Support and clarification in different critical situations. Support and admiration of good ideas.

NTPC Summer Internship Operations

-Kranthi Kumar [10BM60001]

Internship plans and Expectations To understand the Organizational structure To study the project management of NTPC. (Integrated project

management and control) To gain knowledge about the key stakeholders like suppliers and also the

site activities To understand the laid out systems and procedures To study the system of quality assurance To study and understand the project cycle and breaking this cycle into

different steps in the project management(Project setup, Project plan, Budget allocation, Engg & procurement etc)

To study the new plans of expansion through backward, forward and lateral integrations

To understand the new technological implementations and capacity expansion plans

NTPC Internship Information Technology

- Amit Bhatia Rahul Aggarwal

IT

• Main Focus – Enterprise Resource Planning (ERP)• ERP was implemented in NTPC by SAP in 2008.• ERP integrated NTPC into ONE entity.• Plays a major role in every department of NTPC.• Increases productivity and efficiency of organization.• Ease of report analysis and issue resolutions.

IT(contd..)

Key focus areas for NTPC: Company efficiency depends highly on the

efficiency of ERP system of firm Senior management reporting Financial closure & reconciliations Material codification and Inventory

management Employee empowerment through self service &

knowledge management

Our Internship Plan (Phase-1: 2 weeks)

Project Lakshya-Detailed analysis

Our Internship Plan(Phase 2: 6 weeks)

• NTPC is considering implementation of (6 weeks):

– SAP Governance and Risk Compliance (GRC) Access Control, Process Control, Risk Management– SAP Master Data Management (MDM) Related to effectively Manage various SAP, non-SAP and legacy content Roadmap for deliverance a single version of information inter and intra-enterprise

• Our plan will be to work on the analysis, design and implementation of the above two projects and submitting a report on the feasibility of the above projects.

Thank You