A SUMMER INTERNSHIP PROJECT REPORT ON STUDY OF KAPS PLANT & FINANCIAL FUNCTIONING & RATIO ANALYSIS OF NPCIL &

KAPS

SUBMITTED BY: PRIYANKA.A.ZAVERI Enrollment No: 118120592013 (ID No: 11MBA23) Guided By: Mr. VIJYENDRA GUPTA MBA PROGRAMME (2011-2013) THE MANDVI EDUCATION SOCIETY INSTITUTE OF ADMINISTRATION & COMPUTER STUDY
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MANDVI

Contents
No. 1. 2. 3. 4. 5. 6. 7. 8.
9. 10. 11. 12 13

Subject ACKNOWLEDGEMENT INTRODUCTION COMPANY PROFILE INTRODUCTION OF KAPS ORGANIZATION STRUCTURE PRODUCT PROFILE INFORMATION ABOUT PLANT FINANCE DEPARTMENT
RETIO ANALYSIS RATIO ANALYSIS BETWEEN KAPS & NPCIL CONCLUSION ANNEXURE

Page No. 3 4 7 9 15 18 22 32
47 58 73 74 79

BIBLIOGRAPHY

ACKNOWLEDGEMENT
I am truly privileged that I got an opportunity to be trained in a reputed organization like KAPS (A unit of NPCIL). The association with such a focused and growth oriented company has left a positive imprint in my mind. Understanding the functionalities of this company helped me to develop a positive, professional, and honest attitude towards my work. I am extremely thankful to Mr. Arukn Kumar Mishra (DGMs FINANCE), for giving me permission to undergo summer Internship Training in KAPS. I am also thankful to Mr. Saket Patel ,Mr.Abdul Mohseen Lohar and MR.Pragnesh Shah for extending their full support in Finance & Accounts Department.

Finally, in this chain I would also be thankful to all officers and staff of Finance Department, whose efforts contributed for successful completion of my project work.

Thank you,

Yours faithfully Priyanka.A.Zaveri

CHAPTER-1 INTRODUCTION

INDUSTRY OVERVIEW
Indias power sector . The Indian economy has been growing steadily in the range of 8- 9 & the recent past and is expected to maintain its status as one of the fastest economies in the world with long term GDP growth estimated to be around 9% . Driven by strong economic growth, energy consumption in India has been growing over the last two decades. India is the worlds 5th largest producer of electricity. The total power generation in the country during the year 2009-2010 was 772 Billion Units (Bus) registering a growth of around 6.6%. The electricity supply is, however, insufficient to meet the demand. The prevailing shortages of 10.1% (energy) and 13.3% (peak) and by the substantial section of the population who lacks electricity access need to be addressed. The Integrated Energy Policy of the Government of India forecasts that the growth of per capita electricity consumption in Indias is expected to rise about four times from 700 KWh to 2500KWh(Kilowatt-Hours) in the next 25 years.

OPPORTUNITIES IN GENERATION
As per Integrated Energy Policy, countrys energy requirement, considering 8% growth in GDP, will be 3880 BUs by 2031 -32 needing an installed capacity of 778 GWs(Gigawatt). The projected nuclear power capacity by the year 2032 is at 63 GW.

NUCLEAR POWER A PREFERRED OPTION

Many countries are experiencing a nuclear renaissance after several years of no new builds. No capacity addition of nuclear power is to be viewed in context of stagnant demand, utilization of the nuclear fleet at higher capacity factors and plant life extension of the NPPs. A number of facts are now coming together to promote revival of nuclear capacity addition globally. The concerns of energy security, volatile and high prices of fossil fuels and their impact on climate change are causing Governments to rethink their energy policies and diversify fuel mix.

NUCLEAR POWER IN INDIA

To utilize uranium and large thorium reserves in the country for electricity generation, Indias nuclear power programme was envisaged as a three stage programme with a close fuel cycle. The three stages of the programme are:

Natural uranium fuelled Pressurized Heavy Water Reactors (PHWRs) in the first stage. Fast Breeder Reactors (FBRs) utilizing plutonium based fuel extracted from the spent fuel of the first stage, and

Advanced nuclear power systems for utilization of thorium.

NUCLEAR POWER CORPORATION OF INDIA LIMITED

Nuclear power corporation of INDIA limited has steered Indias nuclear power programme as a viable supplement to fossil power and a possible answer to Indias growing energy demands in the long term ever since NPCIL s inception in 1987 .

Now as India enters a sustained growth of about 9%, NPCIL is poised for a quantum growth to cater to Indias energy thirst through indigenous competence enhancement and global alliances.

CHAPTER-2 COMPANY PROFILE

COMPANY PROFILE
ROLE of NPCIL:

In India, nuclear power generation commenced as a Government activity and it entered the commercial domain in 1987 with the formation of the Nuclear Power Corporation of India Limited, a public sector enterprise under the aegis of Department of Atomic Energy, Government of India.

NPCIL has attained maturity in the first stage of nuclear power programme. Today, NPCIL is unique in having comprehensive capacity in the various facets of nuclear technology viz. site selection, design, construction, commissioning, operation, & maintenance and life extension of nuclear power plants.

NPCIL MISSION To develop Nuclear Power Technology land to Produce Nuclear Power as a safe environmentally viable sources of electricity energy to meet the increasing electricity of country.

VISION To set up 20000 MWe Nuclear Power capacity by the year 2020. NPCIL OBJECTIVES To maximization the power generation and profitability from nuclear [power station with a motto of Safety first and Production next . To increase nuclear power generation capacity in the country. Consistent with the available resources in safe, economical and rapid manner in keeping with growth of energy demand in the country. To continue and strengthen QA activities relating to nuclear power program within the organizational and those associated with it. To continue and strength the public awareness programmers for enchasing and improving the public perception of nuclear power in the country. To continue land strength the environmental protection measure relating to nuclear power generation. To share appropriate technological skill and expertise at nation and international level. 8

CHAPTER -3 INTRODUCTION OF KAPS

INTRODUCTION TO KAPS
Kakarapar Atomic Power Station (KAPS) is situated on the left bank of river Tapti in south Gujarat. It is about 85Km from Surat and 15Km from Vyara on Surat Bhusaval railway line in Tapti district of Gujarat state.

It is unit of Nuclear Power Corporation of India Limited (NPCIL), which is wholly owned undertaking of Government of India under the administrative control of Department of Atomic Energy (DAE) Government of India. The Mission is to develop nuclear power technology and produce in a safe reliant manner nuclear power as a safe environmentally being and an economically viable source of electric energy to meet the growing electricity need of the country. NPCIL has its vision to have an install nuclear power capacity of 20000MW (e) by the year 2020 AD. KAPS has two unit module with the capacity of 220 MW (e) each .Each unit consist of one reactor building and one turbine building , a common service building and other common facility. Provision is existing for extension by two more unit of same capacity. Both units are Pressurized Heavy Water Reactor (PHWR). The reactor use heavy water as moderator and natural uranium as a fuel in a sophisticated from, which is available in a large quantity in India. The plant is surrounded with greenery and water pound. The financial approval has been obtained in July 1981, for the construction of the Atomic Power Station. The Constructions of these two units are of Rs.1335 corers.

WHAT IS NUCLEAR ENERGY?

Nuclear energy is produced by controlled nuclear reactions. In a typical nuclear reactor, the energy released from continuous splitting of atoms of the fuel is harnessedas heat in either gas or water , and is used to produce steam. The steam drives the turbines that produce electricity. Control rods

are used to ensure a controlled rate of the nuclear reactions.

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NUCLEAR POWER PLANT IN INDIA

Except KAPS there are many nuclear power plants in India that are giving great contribution in generating electricity with indigenous technology & in safe as well as accurate manner. The name, location & reactor capacity are shown as under:

SR NO. 01

NAME

LOCATION

REACTOR CAPACITY

Tarapur Atomic Power Station 1&2 3&4

Tarapur (Thane) Tarapur (Thane)

1*160MWe 1*160MWe 1*540MWe 1*540MWe 1#100MWe 1#200MWe 1#220MWe 1#220MWe

02

Rajasthan Atomic Power Station 1, 2, & 4

(Kota) (Rajasthan)

03

Madras Atomic Power Station 1& 2

Kalpakkam (Chennai) 11

1*170MWe 1*170MWe

04

Narora Atomic Power Station 1 & 2

Bulandsahar (U.P.)

1*220MWe 1*220Mwe 1*220MWe 1*220Mwe 1*220MWe 1*220Mwe 1*220Mwe

05

Kakrapar Atomic Power Station 1 & 2

Anumala (Gujarat)

06

Kaiga Generating Station 1, 2 & 3

Kaiga (Karnataka)

07

Kaiga Atomic Power Station no. 4

Kaiga (Karnataka)

08

Rajasthan Atomic Power Station 5 & 6

Rawatbhata (Rajasthan)

1*220MWe 1*220Mwe

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UNDER CONSTRUCTION 09. Kakrapar Atomic Power Station Anumala (Gujarat) No. 3&4 10. RajasthanAtomic Station(RAPS) 7&8 11. Kundankulam Atomic Power Station 1 & 2 Tamilnadu 1*1000MWe 1*1000MWe Power Rajasthan 2*220MWe 1*700MWe

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CHAPTER -4 ORGANIZATION STRUCTURE

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ORGANISATION STRUCTURE AT HEADQUARTERS Chairman and Managing Director is the Chief Executive of the Company. Director Director (Finance), (Technical),

Director (Projects), Director (Operations) and Director (Human Resource)

represent the Company in the Board of Directors among the other part time Directors appointed by the Government.

Directors, Senior Executive Directors and/or Executive Directors head the various corporate functional directorates at Headquarters. Major corporate functional directorates are Technical, Engineering,

Projects, Operations, Human Resource, Finance, Contracts and Materials Management, Procurement, Quality Assurance, Research and Development, Knowledge Management, Safety, Corporate Services, Corporate Planning, Rehabilitation & Resettlement and Vigilance.

ORGANISATION STRUCTUR AT POWER STATION

Site Executive Director Site Director Station Director Chief Superintendent Maintenance Superintendent Operation Superintendent Technical Services Superintendent

(More than three twin units) (Two to three twin units) (Twin unit)

Quality Assurance Superintendent

Training Superintendent

Human Resource

Other functional Heads reporting to Unit Head Finance and Contracts and Materials Accounts Management

Medical Superintendent

ORGANISATION STRUCTURE AT POWER PROJECTS A Power Project is normally headed by a Project Director. The Project Director is assisted by a Chief Construction Engineer.Chief Engineers or Additional Chief Engineers head the various

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functional Groups like Civil, Mechanical, Electrical, Erection,etc.In the advanced construction stage, the Operation and Maintenance (O&M) organisation is also set up in parallel, for ensuring smooth transition from the construction phase to the commissioning phase and then to the O&M phase. The Human Resource, Finance and Contracts and Materials Management Groups are headed by officers at the level of Additional General Manager or Deputy General Manager in Projects.

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CHAPTER -5 PRODUCT PROFIL

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PRODUCT PROFILE
1. NUMBER OF PRODUCT There is only one product in this company and that is generation of electricity, which is produced through uranium and heavy water.

The NPCIL cannot sale the electricity directly as they want. They have to give all the production detail to the Central Government and distribute it as the government allocates it to different states.

2. Sales Volume (KAPS) NET SALES (IN CRORES) 101.80 56.83 356.10 583.91 402.86 668.35 821.24 852.53 886.47 928.17 629.78 478.40 457.61 423.61

YEAR 1995 - 1996 1996 - 1997 1997 - 1998 1998 - 1999 1999 - 2000 2000 - 2001 2001 - 2002 2002 - 2003 2003 - 2004 2004 - 2005 2005 - 2006 2006 - 2007 2007 - 2008 2008 - 2009

SALE (IN MUS) 490.730 270.471 1629.334 2814.474 1850.608 2556.538 3008.679 3111.214 3182.250 3301.340 2806.048 2177.700 2052.434 2136.261

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2009 - 2010 2010 - 2011 2011 - 2012 TOTAL

1728.469 1003.267 885.060 35082.85

348.29 205.20 189.34 8470.23

3.RAW MATERIAl: The raw material that is used in generation of electricity is: Uranium & Heavy Water.

1)

Uranium: The Uranium 253 is one of the main raw materials, which is available in Bihar State at

Jadugoda. It is sending for refinery in Hyderabad to enrich the Uranium.

2)

Heavy Water: Heavy water is also called D2O. It is a very costly input to produce electricity. It is used

instead of Simple Water [H2O], because H2O consume more neutrons and the D2O consumes fewer neutrons and D2O not converted in to steam and its boiling point is higher than simple water. These raw materials are provided by DAE [Department of Atomic Energy] to NPCIL.

4. GROWTH PROFILE Presently the company is producing electricity with the unit 1 & 2. Now unit 3&4 are work in progress so in near future the electricity will be produced through unit 3&4.

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5. MAJOR CUSTOMER There are total 8 major customer, all are listed out below: 1) 2) 3) 4) 5) 6) 7) Goa Madhya Pradesh (MPEB) Gujarat (GEB) Maharashtra (MSEB) Chhattishgarh (CSEB) Daman & Div (D&D) Dadra Nagar Haveli (DNH) Heavy water board ,(Bombay)

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CHAPTER -6 INFORMATION ABOUT PLANT

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INFORMATION ABOUT PLANT

1. PLANT LAYOUT The layout of the plant consisting all major buildings and facilities is shown below:

1. Reactor Building-1&2. 3. Purification Building. 5. Reactor Auxiliary Building. 7. Natural Draught Cooling Tower-1& 9. Raw Water Pump House. 11. Demineraliser Plant. 13. Waste Management Plant. 15. Central Alarm Station. 17. Stack. 19. Administrative Building.

2. Turbine Building-1&2. 4. Service Building. 6. CW Pump House. 8. Induced Draught Cooling Tower-1&2. 10. Pretreatment Plant. 12. 220 KV Switchyard. 14. Solid Waste Burial Ground 16. Heavy Water Upgrading Plant. 18. Canteen Building. 20. Ware House. 23

Simplified Flow Diagram A conceptual flow diagram of all reactor and turbine-generator system in KAPS is shown below. The major systems are: Primary heat transfer transport system Moderator system Feed water system Steam system Condenser cooling water system Generator and switchyard

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CALANDRIA The photograph of one site end of Calandria is shown below:

The reactor vessel or Calandria is the main component of the reactor where heat is produced for power generation. This contains the Coolant Channel assembly and Fuel Bundles. The Calandria is filled with heavy water as Moderator. Calandria, integral with the End Shields, is a horizontal Cylindrical Shell of 6m diameter, 5m long, containing 306 nos. horizontal tubes. The Calandria is housed in Calandria Vault. The Calandria vault is filled with light water. This light water is continuously circulated to remove the heat.

The Calandria tubes and the coolant tubes are made of Zirconium Niobium alloy as improved material. Control and Shutdown of the reactor is achieved by reactivity control rods through automatic operation.

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FUEL

All 306 coolant channels in the Calandria are identical. The fuel is in the form of pellets made out of Sintered Natural Uranium Oxide contained in Zircoloy Sheath forming cylindrical elements, called pencil. 19 such pencils form a fuel bundle. Each coolant channel houses 12 fuel bundles. On power refueling system is the specialty of PHWR. Fuel is fed and discharged from both ends of the reactor by remotely operated and computer controlled fuelling machines.

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COOLING TOWER

Main cooling system for the station is a closed loop, which comprises of condenser, Natural Draught Cooling Tower (NDCT), Circulating Water pumps and associated large diameter buried piping. Approximately two third of the heat energy generated in the reactor is dissipated to atmosphere through the NDCTs.

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GENERATING SYSTEM

1 GENERATORS: Power is generated at 16.5kv by two turbo generators each rated for 237.7 MW (264KV, 0.9 lag pf). The rating of the generator is based on the standard BHEL m/c available in the country. The generator stator is water cooled. The rotor is hydrogen cooled while stator is water cooled.

The generator reactive power capabilities are as follows: maximum line charging 74 MVAR 203 MVAR maximum inductive power -

2 BUS DUCTS: Each generator is connected to its own generator transformer through isolated phase bus ducts. This unit connection arrangement affords a maximum reliabilities and availability of the unit. The isolated phase bus duct connection reduces the chances of phase to phase and phase to ground faults in the 16.5kv system .Tap off connection are provided in the bus duct for the following: unit transformer static excitation system transformer Generator potential transformer and surge protection.

The main bus ducts are rated for 10,000 amperes and the tap off bus ducts are rated for 2000 amperes. Continuous type of isolated phase bus ducts has been adopted to minimize inductive heating of supporting structures and associated losses.

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3.SWITCHYARD

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3.1 Switchyard Location: The switchyard is located on the northern side of the turbine building between grids 91K and L39 and 34. The startup transformers are located inside the switchyard. The generator transformers are located outside the turbine building on the northern side. These transformers are connected to the switchyard by 220KV overhead lines passing over the road between turbine building and switchyard. The startup transformers are connected to the 6.6KV station switchgear (located inside turbine building) through FRLS cables. 3.2 Switching Scheme: In all there are eight 220KV lines, two generator circuits and two startup transformer circuits. Considering the number of circuits involved, two main bus schemes have been adopted for this station. The scheme has following advantages. Any element can be connected to any of the two main bus bars at any time. Any one main bus can be taken out for maintenance by transferring all elements to the other main bus. In case of a bus fault, only elements connected to that bus will trip. These elements can be immediately restored to the other healthy main bus. 3.3 Bay: There are in all thirteen bays consisting of eight line bays, two generator bays, two startup transformer bays and one bus coupler bay. The eight lines interconnect KAPP to 220KV grid, at HALDARVA, VAPI, VAV (double circuit), UKAI and VAV (single circuits).The main bus bars are made of IPS aluminum tubes.

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3.3.1 The Circuit Breaker:

The circuit breakers are of SF6 type, manufactured by M/s CGL. The circuit breakers are of single pole type. The control scheme of line circuit breakers has provision for 3 pole tripping and reclosure. The reclosing scheme has also provision for reclosures on dead line or reclosing with synchronizing check features. There is a unitized compressed air system for feeding air to the circuit breakers. The compressors are located adjacent to the breakers in the switchyard. The air piping is made of copper tubes and is run inside cable trenches in the switchyard. Systems of two adjacent breakers are interconnected to maintain air supply in the event of failure of the compressor of one bay.

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CHAPTER -7 FINANCE DEPARTMENT

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FINANCE DEPARTMENT: Finance is the most important department in early organization. It is always interlink with all other department in the organization for doing any work. It can be relationship with administration, personnel, production, C&MM, and other. It can be relatively other department directly or indirectly. It involves the acquisition of fund and use of these funds.

In the HRD section many activities are done like promotion, recruitment, transfer, retirement, and other activities are required of fund and this requirements are fulfill by finance department. Finance department also pays payment of wages and salaries. The face department is one of the useful criteria to HRD section many activities.

In production section, many activities are done at automatic. In that more machinery, equipment and new technology are used, this all are very expensive. The purchasing of all machinery and equipments are only possible by finance department. The finance is main part of production system.

In C&MM department all material are purchase and store system connected with finance and account section. Finance is helpful to know the opening stock and closing stock of material and preparation of B/S of material management. It records material received, material issue, and credit system.

In the safety, transportation, maintenance, fire, health, civil and training section are also required finance for done its activities. Finance also related with labour welfare activities. The funds are requiring for labour service and other facilities provided to labour. That means in the KAPS finance department very importantly affected with whole organization system.

SUB DEPARTMENT

1)

PURCHASE FUNCTION

Purchase group is entrusted with the prime responsibility of procurement. Its strategy to procure the material and services are dealt with strict compliances of fundamental principles. CMM is engaged in the following function: 33

SUPPLIER -------CMM---------PURCHASE

STEPS FROM RECEIPT OF INDENT TO RELEASE OF PURCHASE ORDER:

(1) RECEIPT OF INDENT: a. Indent should be in a prescribed format i.e. CMM-01 and indenter Should be an officer not below the Rank of SO/B or Asst. Manager. b. Indent should be approved by Competent Authority as per Part A of HQI 2007 (Rev-1) c. Through site planning section, budget group and stores to ascertain availability of the indented material as per guideline given in A-4 of HQI 2007. d. Fulfilling all the pre-requisites of clauses A-1 to A-15 of HQI 2007 i.e

1. 2. 3. 4.

Breakup of estimated cost of Previous PO reference, A-6 Desired delivery schedule giving sufficient processing time, A-7 Necessary justification if mode of tendering proposed by intender. Specific note to obtain performance Bond A-11

e. Complete in all respect i.e. detailed descriptions, drawing, technical specification, quantity, installation & commissioning requirement, special condition, if any, FIM and its value, test certificate, place of delivery etc.

f. Entry/ Registration in Indented Register of Purchase group.

(2) SELECTION OF MODE OF PURCHASE (MOP): CHECKS BEFORE SELECTION OF MOP A) Possibility of repeat order (B-18 of HQI-2007 )

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B)

Previous PO reference & its scrutiny to check estimated cost, cost of supply, specification etc.

Mode of Purchase (MOP) is to be decided upon the estimated cost, urgency, /desired delivery schedule, nature of item/s etc as per various provisions given under Part-B of HQI-2007.

(3) Preparation of tender sets and fixing of due date: 1) Based on the nature of tender due date can be fixed. However , normal time period as given in D-3 of HQI-2007 shall be considered as given below : Public Tender (PT) = 45 days

Limited Tender (LT) = 21 days

Single Tender (ST) = 15 days

Time can be extended or reduced as per powers given by Headquarter.

(4) OPENING OF TENDER: 1) 2) As per provisions are made and in presence of finance representatives. Scrutiny of offers received whether correction & erasure are attested by both the agencies, unsigned quotation etc. 3) Follow proper procedure for opening of tender & maintenance of its recorders i.e. unsolicited offers etc. (5) PREPARATION OF COMPARATIVE STATEMENT (CST): 1. 2. Shows comparative status of offers, evaluate offers for its comparativeness. Uniform element shall be taken to put all the offers on an equal platform. 35

3.

It contains: a) Specification quantity unit price discount basis of price & loading of all commercial elements i.e. Packing & forwarding Freight Insurance etc. b) Statutory Levies Excise Duty Sales Duty Custom Duty Octroi Service Tax

c) d) e) f) g) h)

Validity and delivery period Payment terms Loading of interest for advance payment. Regret- Excluded items. Deviations in specification- specific remark, brand name, model no. etc. Price variation formula with ceiling. Testing Charge erection and commissioning charge & additional monetary liabilities e.g. Agency Commission etc.

4.

Signed by appropriate authority and forwarding to indenting section for recommendation.

(6) Processing & Scrutiny of purchase recommendation (PR): 1. Financial concurrence and approval of competent authority. 2. Necessary budget provision availability. 3. Validity of offer-efforts shall be made for re-validation of accepted offer. 4. Price negotiation/technical negotiation, if any. 5. Justification for reasonability of price.

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(7) Preparation of purchase order : 1. Depending upon the value in respective Forms- CMM-45, CMM-23, CMM-64 and in accordance with terms and conditions of GCCs-11/22/12 etc. 2. Complete in all respect- no ambiguity, contains- specification, description, quantity, unit rare, total value, commercial terms & conditions, payment terms and mode of payment, basis of price, place of delivery, delivery schedule, dispatch instruction, insurance etc. 3. 4. Comprehensive from all angles i.e. commercial, legal, and financial. Pre-audited when PR value exceeds margin, pre-auditing is to be done irrespective of individual PO value. 5. 6. Issue & signature by appropriate authorities as mentioned. Release of PO after allotting PO no..

(8) Post contract follow up : 1. 2. Receipt of clear order acceptance. Follow up/raising of proposal for amendments sought by the suppliers involving various deviations. 3. 4. 5. 6. 7. 8. 9. Approval of QS plan, samples etc. Issue of free issue material-instruction to stores & suppliers. Remainders for effecting supply (follow up). Receipt & acceptance of Material. Preparation of material Receipt Voucher (MRV). Obtain payment details. Close the case file.

LEAD TIME: Lead-time is the difference between placement of order and receipt of delivery. There is two types of lead-times are included in CMM department.

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They are; 1. 2. Administration Lead-time & Supplier Lead-time

1)

ADMINISTRATION LEAD-TIME: Anybody require any kind material they make an order. In which they include quantity, size, item no., etc. Then they send it to the material manager to pass the order legally. And the manager signs the order letter and makes order. All this procedure contains time is called Administration Lead-time.

2)

SUPPLIER LEAD-TIME: After ordering by particular company, the company who provides material will accept the order. Then they called the companys person who placed the order, to check whether the material is as per the order and requirement. After the material is being packed then it is transported to the company. The person again check the material if any problem like as per requirement, broken during transport is rejected and when it will replace or after payment when actually taking in use. All these activities contain time is called Supplier Lead-time.

WORK & ORDER CONTARCTS:A contract is an agreement enforceable by law (section 2w of the India contract act 1872)

When two or more persons have a common intention communicated to each other to create some obligation between them, there is said to be an agreement, which is enforceable by law, is called contract work.

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Works are classified as:

A) B)

Original works Repair or Maintenance work

PUBLICITY OF TENDER Tender must be invited in the most open and public manner possible, whether of advertisement in the press or by notice in English/Hindi and the vernacular language of the district, posted in public process.

Tender invited through the following modes: Public tender (PT) where estimated cost of work is above Rs.15Lakhs a brief advertisement inviting tenders (from NPCIL) should invariably be inserted in the press. Limited tender(LT) where estimated cost of work is estimated up to Rs.15 lakhs and in the case where estimated cost is above 15 lakhs but 1). Sources are known 2). Time does not permit to go for public tenders 3). Issue of public tenders is not in organization interest The limited tender can be called. List of parties to whom it is to be issued should be get approved from competent authority before issue of tender. Recommended parties should be technically and financially competent to take up to work if awarded. Single tender (ST):- when sources are limited to one party for specialized type of work. Without call of tender/nominations: - when necessary of work and time order does not permit the call of tender.

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Time limit for the publicity of tender The following time limits between the state of call for tenders and the date of opening of the tender to be adhered to any reduction in time shall be only in rare cases and need to be approved by competent authority.

Estimated cost of work

Time limit

A. Up to Rs10 lakhs B. Above Rs 10 lakhs and upto 50 lakhs c. More than Rs 50 lakhs

10 days

15 days 21days

Sales of tenders should be stopped 24 hours before the opening of the tenders for the works ratings up to Rs.2lakhs and 2 days before in the case of works costing above Rs.2lakhs

Every tender document issued must contain the following information at the time of its issue Name of the contractor The date of the application by tender, date of receipt of application by the corporation Date of issue of tender paper Last date of submission of tender

Tender for NPCIL works can be issued to contractors registered in NPCIL in appropriate classes. However in case where no contractor is registered with NPCIL comes forward for the tender or where such registration do not exist, the contractors registered with CPW, P&T, railways, state bank etc. in the appropriate classes may be considered

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 Tenders document cost

Sr. No. a. b. c. d.

Estimated cost of work Up to Rs.1lakh Between Rs.1lakh to Rs.50lakh More than Rs.50lakh but up to Rs.2crores More than 2crores

Cost of tender Rs.150.00 Rs.500.00 Rs.1000.00 Rs.1500.00

EARNEST MONEY DEPOSIT Paid by each tenders to corporation to ensure that a tenderer does not refuse to execute the work after it has been awarded to him. In case the tenderer fails to commence the work awarded to him. The earnest money is absolutely forfeited to the corporation the EMD is to be based on the estimated cost of work. Tenders not accompanied by EMD shall be rejected.

SALARIES The meaning of the term salary for the purposes of income tax is much wider than what is normally understood. Every payment made by an employer to his employees for service rendered would chargeable to tax as income from salaries. The term salary for the purpose of income tax Act will include both monetary payments (e.g. basic salary, bonus, commission, allowances etc.) as well as nonmonetary facilities (e.g. housing accommodation, medical facility, interest free loans etc.)

a. EMPLOYER-EMPLOYEE RELATIONSHIP b. FULL-TIME OR PART-TIME EMPLOYMENT c. FOREGOING OF SALARY d. SURRENDER OF SALARY e. SALARY PAID TAX-FREE f. VOLUNTARY PAYMENTS

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DEFINITION OF SALARY The term salary has been defined differently for different purpose in the ACT. The definition as to what constitutes salary is very wide. It is inclusive definition and includes monetary as well as non- monetary items. There are different definitions of salary say for calculating exemption in respect of gratuity, house rent allowance etc. Salary u/s 17(1) includes the following;

Wages Any annuity or pension Any gratuity Any fees, commission, perquisite or profits in lieu of or in addition to any salary or wages Any advance of salary Any payment received in respect of any period of leave not availed by him i.e. leave salary or leave encashment The portion of the annual accretion in any previous year to the balance at the credit of an employee participating in recognized provident fund to the extent it is taxable Transferred balance in recognized provident fund to the extent it is taxable The contribution made by the Central Government in the previous year to the account of an employee under a pension scheme referred to in section 80CCD

BASIS OF CHARGE 1. Section 15 of the Act deals with the basis of charge. Salary is chargeable to tax either on due or on receipt basis whichever is earlier. 2. However, where any salary paid in advance, is assessed in the year of payment, it cannot be subsequently brought to tax in the year in which it becomes due 3. If the salary paid in arrears has already been assessed on due basis, the same cannot be taxed again when it is paid

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PLACES OF ACCRUAL OF SALARY Under the section 9(1) (ii), salary earned in India is deemed to accrue or arise in India even if it is paid outside India or it is paid or payable after the contract of employment in India comes at an end.

PROFIT IN LIEU OF SALARY It includes the following: (i) The amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with the termination of his employment (ii) The amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with the modification of the terms and conditions of employment. Usually such

compensation is treated as a capital receipt.

ADVANCE SALARY Advance salary is taxable when it is received by the employee irrespective of the fact whether it is due or not. It may so happen that when advance salary is included and charged in a particular previous year, the rate of tax at which the employee is assessed may be higher than the normal rate of tax to which he would have been assessed. Section 89(1) read with Rule 21A provides for relief in these types of cases.

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LOAN OR ADVANCE AGAINST SALARY Loan is different from salary. When an employee takes a loan from his employer, which is repayable in certain specified installments, the loan amount cannot be brought to the tax as salary of the employee.

Similarly, advance against salary is different from advance salary. It is an advance taken by the employee from the employer. This advance is generally adjusted with his salary over as specified time period. It cannot be taxed as salary.

SALARY ARREARS Salary arrears must be charged on due basis. However, there are circumstances when it may not be possible to bring the same to charge on due basis i.e. if the pay commission is appointed by the central government and it recommends revision of salaries if employees, the arrears received in that connection will be charged on receipt basis. Here, also relief under section 89(1) read with Rule 21A is available.

ANNUITY 1. As per the definition, annuity is treated as salary. Annuity is a sum payable in respect of a particular year. It is a yearly grant. If a person some money entiting him to series of equal annual sums, such annual sums are annuities in the hands of the investor. 2. Annuity received by a present employer is to be taxed as salary. It does not matter whether it is paid in pursuance of a contractual obligation or voluntary. 3. 4. Annuity received from a past employer is taxable as profit in lieu of salary. Annuity received from person other than an employer is taxable as income from other sources.

GRATUITY [SECTION (10)] Gratuity is a voluntary payment made by an employer in appreciation of the services rendered by the employee. Now a-days gratuity has become a normal payment applicable to all employees. In fact,

44

payment of gratuity act, 1972 is a statutory recognition of the concept of gratuity. Almost all employers enter into an agreement with employees to pay gratuity.

PROVIDENT FUND Provident fund scheme is a scheme intended to give substantial benefits to an employee at the time of his retirement. Under the scheme, a specified sum is deducted from the salary of the employee as his contribution towards the fund. The employer also generally contributes the same amount out of his pocket, to the fund. The contribution of the employer and the employee are invested in approved securities. Interest earned thereon is also credited to the account of the employee. Thus, the credit balance in a provident fund account of an employee consists of the following: Employees contribution Interest on employees contribution Employers contribution Interest on employers contribution

The accumulated balance is paid to the employee at the time of the retirement or resignation. In the case of death of the employee, the same is paid to his legal heirs.

There are four of provident funds: Statutory provident fund (SPF) Recognized provident fund (RPF) Unrecognized provident fund (UPF) Public provident fund (PPF)

ALLOWANCES Different types of allowances are given to employees by their employers. Generally, allowances are given to employees to meet some particular requirement like house rent, expenses on uniform, conveyance etc. under the Income-tax Act; allowance is taxable on due or receipt basis, whichever is earlier.

45

PERQUISITE A perquisite is causal emolument, fee or profit attached to an office or position in addition to the salary or wages. In other words, perquisites are the benefits in addition to normal salary to which the employee has a right by virtue of his employment.

SOURCES OF FUNDS: The KAPS unit gets funds from the corporate office Mumbai. It also generates profit, which is one of the major sources of fund. No other source of funds are there with KAPS because most of the decisions are taken and operated from the head office only which is at Mumbai.

CAPITAL BUDGETING: Capital budgeting is done in the initial stage when KAPS was built and newly started. When generation of electricity is disrupted KAPS unit has to bear huge machinery, the first attempt is made to get the machinery at the earliest so that the working of unit goes on.

WORKING CAPITAL MANAGEMENT: Managing working capital is an important task because it deals with day-to-day transactions for which necessary funds are required and must be there maintained with the unit. KAPS prepares well in advance one weeks gross requirement of money to meet all the monitory transactions.

46

CHAPTER -8 RATIO ANALYSIS

47

RATIO ANALYSIS Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the indicated quotient of two mathematical expressions and as the relationship between two or more things.

Ratio helps to summaries large quantities of financial data and to make qualitative judgment about the firms financial performance.

Objective of the study: The objectives of analysis of financial statements have their genesis in the objectives of financial statements. We have been learning throughout this text that the objective of financial is to provide information about the financial position, performance, and cash flows of a company. Based on this information, objective of analyzing then is to evaluate:

The adequacy or otherwise of the profits earned by the company. The adequacy or otherwise of its financial strength. Its ability to generate enough cash and cash equivalents and the timing and certainty of their generation, and The future growth outlook of the company.

KAKRAPAR ATOMIC POWER STATION PERFOMANCE ANALYSIS

LIQUIDITY RATIOS: It measures the ability of the firm to meet its current obligations (liabilities). It is very necessary to maintain a proper balance between high liquidity and liquidity.

1) CURRENT RATIO: It measures the firms short-term solvency. It indicates the availability of current assets in rupees for every one rupee of current liability.

48

Current ratio = Current assets Current liabilities YEAR 2010-11 2011-12 CURRENT ASSET 690436847 884475764 CURRENT LIABILITIES 437766889 281959545 RATIO 1.57 3.14

CURRENT RATIO
3.5 3 2.5 RATIO 2 1.5 1 0.5 0 2011 2012 1.58 3.14

INTERPRETATION: The ideal ratio is 2:1. As the current ratio has been increased in the amount of the current liabilities. In 2010-11 the current ratio was too low which showed firm was inefficient to meet its obligation and later in 2011-12 the amount of current asset has gradually increased with the decreased in current liabilities which display firms short-term solvency has been increased.

2)

QUICK RATIO: Generally, a quick ratio of 1:1 is considered to represent a satisfactory current financial condition. It is a more penetrating test of liquidity than the current ratio.

49

Quick ratio = Current Assets (Inventories+prepaid expense) Current Liabilities Bank Overdraft

YEAR 2010-11 2011-12

CA INVENTORIES 337587291 508247627

- CURRENT LIABILITIES 437766889 281959545

RATIO 0.77 1.80

QUICK RATIO
2 RATIO 1.5 1 0.5 0 2010-11 YEARS 2011-12 0.77 1.79

INTERPRETATION: There is increase in quick ratio, which is show, the sufficient current assets to meet its obligation because its quick assets are higher. TURNOVER RATIO

3) FIXED ASSETS TURNOVER RATIO: The ratio shows the efficiency of the assets. 50

The efficiency use of assets will generate greater sales per capital invested in all the assets of a concern. The inefficiency use of the asset will result in low sales and under utilization of the available capacity.

Fixed Assets Turnover Ratio = Net Sales Net Fixed Assets YEAR 2010-11 2009-10 NET SALES 2057138796 1893613205 NET FIXED RATIO ASSETS 3063966146 0.6713 2819339050 0.6716

FIXED ASSETS TURN OVER RATIO

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0.7 0.7

RATIO

2011 YEARS

2012

INTERPRETATION: In 2010 11 fixed assets, turnover ratio is 0.70 and in 2011 12, it same to 0.70 means due to the closure of the first unit, the utilization of fixed assets was not possible to be proper.

4) WORKING CAPITAL TURNOVER RATIO: This ratio shows the number of times working capital is turned over in stated period. The higher the ratio shows low investment in working capital and the greater are the profits.

51

Working Capital Turnover Ratio = Net Sales Net Working Capital

YEAR 2010-11 2011-12

NET SALES 2057138796 1893613205

NET WORKING RATIO CAPITAL 252669958 8.14 602516219 3.14

WORKING CAPITAL TURNOVER RATIO

10 8 RATIO 6 4 2 0 2011 YEARS 2012 3.14 8.14

INTERPRETATION: In 2011, the ratio was 8.14 and it decreased in 2012 is 3.14, which show the use of more working capital in 2012 as compare to 2011 due to maintenance of first plant.

5)

DEBTORS TURNOVER RATIO: It indicates the number of times on the average the receivable is turnover in each year. The higher the value of ratio, the more is the efficient management of debtors. It measures the accounts receivables in terms of number of days of credit sales during a particular period. 52

Debtors Turnover Ratio = Net Credit Sales Average Debtors 365 Collection period= -----------------------------Debtor turn over ratio

DEBTORS TURNOVER RATIO

50 TIMES & DAYS 40 30 20 10 0 DEBTORS TURNOVER COLLECTION PERIOD 8.87 13.99 26 41

INTERPRETATION: In 2011 Debtors turnover ratio and collection period was respectively 8.87 & 41 days and it is 13.99 and 26 days in 2012, which show the efficient receivable management. 6) INVENTORY TURNOVER RATIO: It denotes the speed at which the inventory will be converted into Sales. When all other factors remain constant, greater the turnover of inventory more will be efficiency of its management. Higher the ratio show finished stock is rapidly turned over.

Inventory Turnover Ratio =

Cost of Goods Sold Average Inventory

53

INVENTORY TURNOVER RATIO

3.4 3.35 3.3 3.25 3.2 3.15 3.1 3.34

TIMES

3.18

2011 YEARS

2012

INTERPRETATION: In 2011 Inventory turnover ratio was 3.18 and it increase in 2012 which is 3.34 which show fast inventory convert into Sales and also more inventory require like spare parts for maintenance of plant due to closer of 1st plant.

PROFITABILITY RATIOS: It is calculated to measure the overall efficiency of the company. Profit is the ultimate output of the company, and it will have no future if it fails to make a sufficient profit therefore the financial manager should continuously evaluate the efficiency of the company in terms of profit.

7) GROSS PROFIT RATIO: This ratio show gross margin on sale, higher the ratio show low cost of production and vice versa.

Gross Profit Ratio =

Gross Profit * 100 Net Sales

Gross Profit = Sales material cost

54

YEAR 2010-11 2011-12

EBIT 116205106 283990873

SALES 20571328796 1893613205

GROSS PROFIT RATIO
60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 47.93% 35.70%

RATIO 0.0565 0.1499

PERCENTAGE

2011 YEARS

2012

INTERPRETATION: The ratio above shows the decrease in the gross profit since the ratio has decreased from 47.93% to 35.71% in 2011 12. A low gross Profit margin show a higher cost of production due to the 1st plant closer and maintenance of plant. 8) EXPENSE RATIO: This ratio shows the proportion of expenses to the sales. The lower ratio shows low expenses and more profit and vice versa.

Expense Ratio = Expenses * 100 Net Sales

55

EXPENSES RATIO
-104.00% -106.00% -108.00% -110.00% -112.00% -114.00% -116.00% -118.00% -120.00%

2011

2012

PERCENTAGE

-110.25%

-119%

INTERPRETATION: In both the years, 2011 and 2012 expenses are more than sales due to the closer of 1 st plant and maintenance. In 2010 11 the ratio was 110.25% and it increased 2011 12 is 118.96% which show the increase expenses.

9) SALES GENERATION: This ratio show sales generation to the salaries & wages and show efficiency of the employees. Higher ratio is good for company.

Sales Generation = Salaries &wages Net sales

* 100

56

SALES GENERATION RATIO

0.4
PERCENTAGE

30.48% 22.39%

0.3 0.2 0.1 0 2011

YEARS

2012

INTERPRETATION: In 2010-11 sales generation was 30.48% and it decrease in 2011-12 is 22.39%, which shows increase efficiency of the employees and also show high sale generation to salaries & wages.

57

CHAPTER-9 RATIO ANALYSIS BETWEEN KAPS & NPCIL

58

RATIO ANALYSIS BETWEEN KAPS & NPCIL (Rs. In Lakhs) BALANCE SHEET of NPCIL as at March 31, 2012 As at Schedule March 31, 2012 (Rs.) 1.SOURCES OF FUNDS 1.shareholders funds a)share capital b)Reserves&surplus 2.Loan funds a)secured loans b)unsecured loans 3 4 918720.00 627470.17 1546190.17 3.Deferred Tax Liability Less:deferred Tax Recoverable TOTAL II.APPLICATION OF FUNDS 1.Fixed Assets a)Gross Block Less:Depreciation Net Block b)capital Work in progress 7 1611243.65 2853938.70 2.Investments 3.Heavy Water Lease Charges 7 241277.81 41209.94 1735960.55 2807788.90 273262.64 18348.90 6 5 1923057.97 680362.92 1242695.05 1675855.23 604026.88 1071828.35 184628.67 184628.67 0.00 3844786.04 656300.00 745621.61 1401921.61 178665.69 178665.69 3666333.05 1 2 1014533.27 1284062.60 1014533.27 1249878.17 As at March 31, 2011(Rs.)

Recoverable

59

4.Current Assets, Loans and advance a)Inventories b)Sundry Debtors c)Cash and Bank Balances d)Other Current Assets e)Loans and Advances 8 38877.10 50348.96 744913.13 40296.90 58845.37 37813.72 50655.97 515512.65 40102.44 46681.06

933281.46 Less:current Liabilities and provisions a)Liabilities b)provisions 9

690765.84

180949.71 43972.16 224921.87

93506.16 30327.07 123833.23 708359.59 566932.61

Net Current Assets significant Accounting policies & notes on Accountsschedules 1 to 16 form integral part of accounts Total 16

3844786.04

3666333.05

60

(Rs. In Lakhs) PROFIT & LOSS ACCOUNT For the year ended March 31, 2012 Schedule For the year ended March31,2012 For the year ended march 31,201209 INCOME Sales: Electricity Energy Other Income Total EXPENDITURE Fuel &Heavy Water Operation and maintenance Expenses Employees remuneration and benefits Administration and other expenses Interest On bond & term loan On foreign loans 48578.27 21645.01 70223.28 Less: Transferred to expenditure during construction period (sch.6A) 26120.25 44103.03 30937.38 48878.27 53506.12 26309.53 79815.65 14 24270.75 20325.56 13 66182.99 64259.45 11 12 141767.09 30685.69 105503.12 28892.00 10 380681.76 67252.97 447934.73 301055.51 77103.24 378158.75

Depreciation

72107.60

70608.52

61

Total Expenditure

379117.15

338466.92

Profit For the Year Prior period Adjustments (Net) PROFIT BEFORE TAX Provision for: Income tax Current Tax Earlier Year Tax Fringe Benefit Tax Current Tax Earlier Year Tax Wealth Tax Current Tax Earlier Year Tax 42.00 16.40 58.40 5706.00 0.00 5706.00 15

68817.58 21411.85 47405.73

39691.83 (8385.41) 48077.24

3291.36 0.00 3291.36 585.05 23.38 608.43 26.00 23.05 49.05

Provision for Deferred Tax Less: Deferred Tax Recoverable

5962.98 5962.98 0.00 5764.40

8399.89 8399.89

PROFIT AFTER TAX Balance Brought forward from previous year Balance available for appropriations APPROPRIATIONS: Interim dividend paid Tax on interim dividend paid Proposed Dividend for the year Tax on proposed Dividend 62

41641.33 98064.65

44128.40 79424.67

139705.98

123553.07

15000.00 2549.25 0.00 0.00

10000.00 1699.51 3238.52 550.39

Transfer to General Reserve Balance carried to Balance sheet significant Accounting policies 16 & notes on accounts Schedules 1 to 16 from integral part of accounts

10000.00 112156.73

10000.00 98064.65

Total EARNING PER SHARE (EPS) BASIC & DILUTED, (FV of Rs.1000 each) (Amount in Rs.)

139705.98 41.04

123553.07 43.50

LIQUIDITY RATIOS:

It measures the ability of the firm to meet its current obligations (liabilities). It is very necessary to maintain a proper balance between high liquidity and liquidity.

1)

CURRENT RATIO:

Current ratio =Current assets Current liabilities

63

CURRENT RATIO
5 4 3 2 1 0 KAPS NPCIL

INERPRETATION: In 2012 Current ratio of KAPS is 3.14 and NPCIL is 4.15 which show Current position of KAPS is better than NPCIL because Current assets of NPCIL is more than required which show idle Capital in Company and KAPS Current ratio is near standard ratio.

2)

QUICK RATIO

Quick ratio=

current Assets(Inventories +prepaid) Current liabilities bank overdraft

QUICK RATIO
5 4 3 2 1 0 KAPS COMPANY NAME NPCIL

RATIO

64

INTERPRETATION: In 2012 Quick assets of KAPS is less than Current Liabilities, which show inefficiency to meet its Current liabilities and NPCIL Quick assets are more than its Current liabilities, which show timely payment to creditors, but here Quick ratio is 3.98 which show idle capital in company.

TURNOVER RATIO

3)

Capital Turnover Ratio:

Net Sales = ---------------------Capital employed

Capital employed =Fixed assets + Current assets -Current liabilities

CAPITAL TURNOVER RATIO

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 KAPS NPCIL
COMPANY NAME

RATIO

65

INTERPRETATION:

Here, Capital Turnover ratio of NPCIL is higher than KAPS and it is respectively 0.57 and 0.73, which show low sales and profit of KAPS compare to NPCIL.

4)

Fixed Assets Turnover Ratio:

Net Sales = ---------------------Net fixed assets

FIXED ASSETS TURNOVER RATIO

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 KAPS COMPANY NAME NPCIL

INTERPRETATION:

RATIO

Fixed Assets Turnover ratio show how many times Assets are turnover in sales, here KAPS turnover ratio is more than NPCIL which is respectively 0.7 and 0.16 which show high sales Generation of KAPS by Fixed Assets.

66

5)

Working Capital Turnover Ratio:

Net sales = --------------------Net Working Capital

Net working capital= Current Assets Current Liabilities

WORKING CAPITAL TURNOVER RATIO

3.5 3 2.5 2 1.5 1 0.5 0 KAPS NPCIL COMPANY NAME

INTERPRETATION:

RATIO

67

Here Working Capital Ratio of KAPS is higher than NPCIL, which is respectively 3.14 and 0.63, which show lower investment in working capital and high sales of KAPS than NPCIL.

6)

Debtors Turnover Ratio:

Net Credit Sales = --------------------------Avg. Debtors

Opening Debtor + Closing Debtor Avg. Debtors = --------------------------------------------

365 Collection period = --------------------------Debtor Turnover Ratio

DEBTORS TURNOVER RATIO

60
TIMES & DAYS

50 40 30 20 10 0 DEBTOR TURNOVER COLLECTION PERIOD

68

INTERPRETATION:

In 2010 Debtors turnover ratio and collection period of KAPS is respectively 8.87 & 41 Days and NPCIL is 6.43 and 57 Days which show the efficient receivable of KAPS.

7)

Inventory Turnover Ratio :

Cost of good sold = ------------------------------------Avg. Inventory

Cost of good sold = sales gross profit

Opening Inventory +Closing inventory = --------------------------------------------2

INVENTORY TURNOVER RATIO

6 5 4 3 2 1 0 KAPS COMPANY NAME NPCIL

INTERPRETATION:

In KAPS Inventory, turnover ratio was 3.34 and it is 4.79 in NPCIL, which show fast inventory convert into sales, and more efficiency of inventory management in NPCIL than KAPS. 69

RATIO

PROFITABILITY RATIO:

It is calculated to measure the overall efficiency of the company. Profit is the ultimate output of the company, and it will have no future if it fails to make a sufficient profit therefore the financial manager should continuously evaluate the efficiency of the company in terms of profit.

8)

GROSS PROFIT RATIO:

Gross profit =--------------------------------* 100 Net sales

Gross profit = sales material cost

GROSS PROFIT RATIO

42.00% PERCENTAGE 40.00% 38.00% 36.00% 34.00% 32.00% KAPS COMPANY NAME NPCIL

INTERPRETATION: In 2012, the gross profit ratio of KAPS is 35.7% and NPCIL is 41%, which show high Gross profit of NPCIL than KAPS, and we can say the average cost of Electricity Generation of NPCIL is lower than KAPS 70

9)

EXPENSE RATIO:

Expense = ---------------- * 100 Net Sales

EXPENSES RATIO
-107.00% -108.00% -109.00% -110.00% -111.00% -112.00% -113.00% -114.00% -115.00% -116.00%

KAPS

NPCIL

PERCENTAGE

COMPANY NAME

INTERPRETATION:

In 2012, both the companies have more expenses than sales. Now a days there is scarcity of uranium in India so the government has distribute uranium on equal bases to all plant in India for continue run all plants.

10)

SALES GENERATION:

Salaries & wages = -------------------------------* 100 Net sales

71

SALES GENERATION RATIO

35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% KAPS NPCIL COMPANY NAME

INTERPRETATION:

In 2012, sales Generation ratio of KAPS is 30.48% and NPCIL is 21.34%, which show high salaries & wages expense of KAPS than NPCIL due to closer of first plant of KAPS.

PERCENTAGE

72

CONCLUSION

After completing the training this has come to my view that KAPS is one of the best Atomic power stations of Nuclear Power Corporation India Ltd. That has been working accurately and significantly.

In my training, I observed keen cooperativeness between the employees. They works together, solves problem together, make fun together. And I think that this reason why the administration of the plant has become so powerful and efficient.

After the training, I conclude that the functions of KAPS in finance and account section have more than normal work.

I believe that in KAPS is never going to be cause of any major accidents in the future because the safety of the station begins with technical advancements.

Lastly I conclude that, for efficient and accurate working proper management is necessary and the KAPS deserves it because running such a big plant is not the task but KAPS have done it easy with proper management application at proper places.

73

ANNEXURE (Rs. In Lakhs) BALANCE SHEET of NPCIL as at March 31, 2012 As at Schedule March 31, 2012 (Rs.) 1.SOURCES OF FUNDS 1.shareholders funds a)share capital b)Reserves&surplus 2.Loan funds a)secured loans b)unsecured loans 3 4 918720.00 627470.17 1546190.17 3.Deferred Tax Liability Less:deferred Tax Recoverable TOTAL II.APPLICATION OF FUNDS 1.Fixed Assets a)Gross Block Less:Depreciation Net Block b)capital Work in progress 7 1611243.65 2853938.70 2.Investments 3.Heavy Water Lease Charges 7 241277.81 41209.94 1735960.55 2807788.90 273262.64 18348.90 6 5 1923057.97 680362.92 1242695.05 1675855.23 604026.88 1071828.35 184628.67 184628.67 0.00 3844786.04 656300.00 745621.61 1401921.61 178665.69 178665.69 3666333.05 1 2 1014533.27 1284062.60 1014533.27 1249878.17 As at March 31, 2011(Rs.)

Recoverable

74

4.Current Assets, Loans and advance a)Inventories b)Sundry Debtors c)Cash and Bank Balances d)Other Current Assets e)Loans and Advances 8 38877.10 50348.96 744913.13 40296.90 58845.37 37813.72 50655.97 515512.65 40102.44 46681.06

933281.46 Less:current Liabilities and provisions a)Liabilities b)provisions 9

690765.84

180949.71 43972.16 224921.87

93506.16 30327.07 123833.23 708359.59 566932.61

Net Current Assets significant Accounting policies & notes on Accountsschedules 1 to 16 form integral part of accounts Total 16

3844786.04

3666333.05

75

(Rs. In Lakhs) PROFIT & LOSS ACCOUNT For the year ended March 31, 2012 Schedule For the year ended March31,2012 For the year ended march 31,201209 INCOME Sales: Electricity Energy Other Income Total EXPENDITURE Fuel &Heavy Water Operation and maintenance Expenses Employees remuneration and benefits Administration and other expenses Interest On bond & term loan On foreign loans 48578.27 21645.01 70223.28 Less: Transferred to expenditure during construction period (sch.6A) 26120.25 44103.03 30937.38 48878.27 53506.12 26309.53 79815.65 14 24270.75 20325.56 13 66182.99 64259.45 11 12 141767.09 30685.69 105503.12 28892.00 10 380681.76 67252.97 447934.73 301055.51 77103.24 378158.75

Depreciation

72107.60

70608.52

76

Total Expenditure

379117.15

338466.92

Profit For the Year Prior period Adjustments (Net) PROFIT BEFORE TAX Provision for: Income tax Current Tax Earlier Year Tax Fringe Benefit Tax Current Tax Earlier Year Tax Wealth Tax Current Tax Earlier Year Tax 42.00 16.40 58.40 5706.00 0.00 5706.00 15

68817.58 21411.85 47405.73

39691.83 (8385.41) 48077.24

3291.36 0.00 3291.36 585.05 23.38 608.43 26.00 23.05 49.05

Provision for Deferred Tax Less: Deferred Tax Recoverable

5962.98 5962.98 0.00 5764.40

8399.89 8399.89

PROFIT AFTER TAX Balance Brought forward from previous year Balance available for appropriations APPROPRIATIONS: Interim dividend paid Tax on interim dividend paid Proposed Dividend for the year Tax on proposed Dividend 77

41641.33 98064.65

44128.40 79424.67

139705.98

123553.07

15000.00 2549.25 0.00 0.00

10000.00 1699.51 3238.52 550.39

Transfer to General Reserve Balance carried to Balance sheet significant Accounting policies 16 & notes on accounts Schedules 1 to 16 from integral part of accounts

10000.00 112156.73

10000.00 98064.65

Total EARNING PER SHARE (EPS) BASIC & DILUTED, (FV of Rs.1000 each) (Amount in Rs.)

139705.98 41.04

123553.07 43.50

78

BIBLIOGRAPHY

A.

REFERENCE BOOKS: I.M.PANDEY, FINANCIAL Mgt., EIGHT EDITION AMBRISH GUPTA, FINANCIAL ACCOUNTING FOR Mgt. Companys Annual Report

B. WEBSITES: www.npcil.nic.in

79