A Summer training Project Report ON

ASSESMENT OF FINANCIAL POSITION OF NTPC WITH EMPHASIS ON INVENTORY MANAGEMENT

Submitted in the Partial fulfillment for the Award of the degree of Master of business Administration MBA (2006-08) U.P. TECHNICAL UNIVERSITY, LUCKNOW

Submitted to: Head of deptt Department of management

Submitted by: SHIPRA SRIVASTAVA MBA-3 rd semester Roll No-0603370098

RAJ KUMAR GOEL INSTITUTE OF TECHNOLOGY, 5km STONE, MEERUT ROAD, GHAZIABAD

WELCOME TO NTPC/SSTPS, SHAKTINAGAR SONEBHADRA (U.P.) PIN-: 231222

____________________________________
Declaration Certificate of college Certificate by Organization ________________________________________________________________

TABLE TO CONTENTS
CONTENTS 1. Preface 2. Acknowledgement 3. Executive summary 4. Introduction Core Value NTPC Vision Corporate Mission Corporate Objective Awards & Accolades Organization Profile Important Dates Singrauli Super Thermal Power Station (SSTPS) 5. Inventory Management Meaning & Objective Techniques Of Inventory Management Inventory Management in NTPC 35 39 41 4 5 6 7 11 12 24 27 PAGE NUMBERS 1 2 3

 Ratios Involved In Inventory Management 6. Research Methodology Title & Objectives Research Instruments Tools Used & Steps Need Of Study Limitation 7. Inventory Valuation Method Of Inventory Valuation (Weighted Average Method ) Decision Regarding Choice Of Method 8. Performance Analysis Trends Of Various Inventory Components & Spares Loose tools Coal Fuel Oil Naptha Chemical & Consumables Steel Scraps 9. Ratios Related To Inventory Inventory To Total Current Assets Inventory To Profit Inventory To Sales Inventory To Turn Over ratio

47 48 48 49 49 50 51 53 54 56 57 58 59 60 61 62 63 64 65 66 67

 Inventory To Holding Period

68 69 70 71 72 73 74 75 82 85 86 87

Fuel To Inventory

Components & Spares To Inventory Chemicals & Consumable To Inventory Loose Tools To Inventory Inventory To Total Generation Inventory To Total Installed Capacity 10. Interpretations 11. Problems of Inventory in NTPC 12.Suggestions & Conclusion 13.Annexure Financial Highlights Bibliography

Preface
I chose SSTPS as my organization for study as it has number one position in generation and a flagship stations of NTPC, a Navaratna Company During the introductory phase when I was being introduced by my guide to the functionaries and administrators in the Finance department of NTPC/SSTPS. I came to know much about financial positions and their assignments.Subsequently, through Annual Reports of different years of NTPC, & with help of journals,we came to be acquainted with the financial results of the Company and other facts about it. I know much more under guidance of Finance Manager. I decided inventory management of organization as my subject. My work is totally concerned with collecting the facts, figures and than compiling them so as to know what is the working capital position of organization (NTPC,SSTPS).

ACKNOWLEDGEMENT:I am extremely grateful to all the employees SSTPS/NTPC who have helped me in completing my training here. Their guidance has helped me in completing my training here and enabled me to gain knowledge about the financial position of organization. I shall forever remain indebted to my project guide, Mr. Deepak Dube who given me his valuable guidance & precious time. He had been a constant source of inspiration all through out my project work been able to complete my project successfully. I am also very thankful the officers of Finance Department who have helped me in completing my project.

SHIPRA SRIVASTAVA

EXECUTIVE SUMMARY
ASSESMENT OF FINANCIAL POSITION OF NTPC WITH EMPHASIS ON INVENTORY MANAGEMENT was carried out on NTPC SINGRUALI from JUNE 8,2007 TO JULY 30,2007. The project is undertaken to have an insight view into the Inventory management . The study also investigates the details about the constraints due to which the a company has to keep inventory . Secondary data have been collected by the

means of face to face informal conversation with the employee unit and technical professionals. After collection of data an independent analysis has been done and certain recommendatory measures have been suggested in the end. By analyzing the ratio related to inventory in NTPC it can be easily concluded that Singuralli project of NTPC is the most profit earning plant. The main problem of NTPC is that their all power plants are based on the coal and gas with different technologies & hence inventory is the most recognized problem.

DECLARATION

I, SHIPRA SRIVASTAVA, here by declare that I have carried out the reseach training project on the topic ASSESSMENT OF FINANCIAL POSITION IN NTPC WITH EMPHASIS ON INVENTORY MANAGEMENT I further declare that the research project is my original work and no part of this report has been published or submitted to any body or university for award for any degree/diploma.

DATE:PLACE:SIGNATURE