1

CHAPTER- I
INTRODUCTION
========================================================


1.1 INTRODUCTION
Finance is the life blood of a business. Hence the financial requirement of a
company is a vital factor to be faced by all companies. The companies must be
financially sound to meet its short term and long term obligations.
Every company should know the financial strength of its operations. It
points out the problems faced or likely to be faced by the companies. The financial
information of a company is available in the financial statements or accounting
reports.
The financial statements of the companies are broadly classified into two
types viz., Trading & Profit and Loss Account and Balance Sheet. The Trading
account is the first part of final account which is prepared to find out either gross
profit or gross loss. The second part of the final account is Profit and Loss Account
which is prepared to know the net results of the business. The net result may be
net profit / net loss. The last part is called as Balance Sheet which is prepared to
know the financial position of the company as on the particular date. These
statements are generally prepared by all the companies which is more useful for
them and also to outsiders like bankers, investors, Government etc.
These statements show the static position of the company. In order to know
the changing position of the company, these statements are to be analysed.
Moreover, the preparation of financial statements is not the end aim. The main
aim of preparing these statements is to use them for decision making. Hence these
statements are to be analyzed and results are interpreted to know the financial
strength of the company.

Hence the proposed study entitled A STUDY ON FINANCIAL
PERFORMANCE OF NLC LTD. NEYVELI is undertaken mainly to know its
financial strength and soundness for the past five years viz. 2006-07 to 2010-11.



2

Statement of the Problem
The organization can survive and succeed only when it is financially sound.
In the present era, many firms face threat from MNCs and also severe crisis due to
global recession and meltdown. Under these circumstances, the PSUs in India are
going smoothly. Hence the effective functioning of public sector organization is a
vital factor. It also results in betterment of our economy and also the future of such
organization depends on its efficient operation. In this context, the present study is
undertaken to analyze the financial health of a renowned public sector undertaking
viz., NLC Ltd., Neyveli.

3

1.2. COMPANY PROFILE
NEYVELI LIGNITE CORPORATION LIMITED
(A NAVRATHNA government of India undertaking)
Registered office: Chennai, Corporate office: Neyveli
Indias energy bridge to the 21
st
century
Main business is Lignite excavation and Power generation.
The Mines and Thermal Power Station have got the ISO 9001:2001
ISO 14001:1996, ISO 14001:2004 and ISO 18001: 1999
certifications.

VI SI ON AND MI SSI ON:
Vision
To emerge as a leading Mining and Power Company, continue to be a socially
responsible company and strive for operational excellence in Mining and
Exploration.

Mission
Strive towards greater cost competitiveness and work towards continued financial
strength.
Continually imbibe best practices from the best Indian and International
Organizations engaged in Power Generation and Mining.
Be a preferred employer by offering attractive avenues of career growth and
excellent work environment and by developing human resources to match
international standards and play an active role in society and be sensitive to
emerging environmental issues.


Production Units
The important production units of NLC Ltd., are:
1.2.1. MineI
Demarcated over an area of 16.69 sq. km with a reserve of about 287 million
tons, Mine-I is situated on the northern part of the field adjacent to the Neyveli
Township.
The lignite seam was first exposed in August 1961 and regular mining of
lignite commenced in May 1962. The continuous mining technology in open cast
4

mining with German Bucket Wheel Excavators, Conveyors and Spreaders were put
to use for the first time in India. Mine-I with a capacity of 10.5 million tons lignite
per annum feeds Thermal Power StationI (600 MW).

1.2.2 MineII
In February 1978, the Govt. of India sanctioned the second Lignite mine
with a capacity of 4.7 million tons of Lignite per annum and in February 1983, it
has sanctioned the expansion of second mine to a capacity of 10.5 million tons.
Mine II had the problems in the excavation of sticky clay soil during the initial
stage. The method of mining and equipment used is similar to Mine-I. Similarly
the seam is the same as of Mine I and is contiguous to it.
Mine II is located at 5 Km south of Mine I. It is spread over an area of 26 sq.
km with 398 million tons reserve.
The lignite seam in Mine-II was exposed in September 1984 and lignite excavation
commenced in March 1985. The last overburden system (surface bench system)
under the expansion scheme was commissioned on 15.12.1991. The lignite
excavated from Mine-II meets the fuel requirements of Thermal Power Station II.

1.2.3 MineI (Expansion)
In March 1992, the Government of India had sanctioned the expansion of
Mine I from its present capacity of 6.5 million tons to 10.5 million tons per
annum with a capital cost of Rs. 1,336.93 crores. The Govt. of India approved the
revised cost estimate of this project in Dec. 2001 at a capital cost of Rs.1,658.38
crores. The project was commissioned on 24th March 2003 - one month ahead of
Revised Cost Estimate schedule. The cumulative capital expenditure incurred on
this project upto 31.03.2003 was Rs. 1,502.28 crores.

1.2.4. MineIA
The Government of India had sanctioned Mine-I-A project on 26th February
1998 for mining 3.0 million tons of lignite per annum at a total cost of Rs.1,032.81
crores for catering to the lignite requirement of private sector plant to be put up by
M/s. STCMS and also to meet additional requirements of lignite by the company.
Fuel supply agreement has been signed with M/s. STCMS Company on
29.4.1998. The Mine - IA project has been commissioned in the month of March
5

2003 and the amount of capital expenditure incurred on this project up to
31.03.2003 was Rs. 821.03 crores.
1.2.5 Lignite Production:
Neyveli Lignite Corporation Limited has achieved a remarkable growth in Lignite
production. Table 1.1 shows Lignite production from 2003-04 to 2007-08.
Table 1.1
Statement showing lignite production during the years
From 2006-07 to 2010-11
(Lakhs Tones)
YEAR LIGNITE
PRODUCTION
PERCENTAGE
06-07 210.14 0.00
07-08 215.86 1.02
08-09 213.07 1.01
09-10 223.38 1.06
10-11 231.44 1.10

Source: Compiled from Annual Reports of NLC Ltd.
It is evident from the table 1.1 that the lignite production in NLC Ltd.
increased year after year from 204.35 lakhs tons in 2005-06 to 223.38 lakhs tons in
2009-10.

1.2.6. Thermal Power Station I (TPS I)
The production capacity of TPS-I is 600 MW. This power station consists of
six units of 50 MW each and three units of 100 MW each. The first unit of 600
MW capacity TPSI was synchronized in May 1962 and the last unit in September
1970. Some of the special features of this power station are:
First lignite fired power station in South East Asia.
First pit head power station in India.
First power station in India with the former Soviet collaboration.
First largest Thermal Power Station in South India.
6



1.2.7 Thermal Power Station II (TPS II)
The production capacity of Thermal Power StationII is 1470 MW. It
consists of 7 units of 210 MW each. In February 1978, the Government of India
sanctioned the second TPS of 630 MW capacity (3x210 MW) and in February
1983, the Government of India sanctioned the second TPS expansion from 630
MW to 1470 MW with an addition of 4 units of 210 MW each. The first 210 MW
unit was synchronized in March 1986 and the last unit was synchronized in June
1993.

1.2.8 Power Generation
NLC Ltd., has achieved a higher growth in power generation. Table 1.2
shows power generated from 2005-06 to 2009-10.power generation table is shown.
Table 1.2
(million units)
YEAR POWER
GENERATION
PERCENTAGE
06-07 15786.58 0.00
07-08 17456.89 1.10
08-09 15767.98 0.99
09-10 17656.04 1.12
10-11 17881.08 1.13
Source: Compiled from Annual Reports of NLC Ltd.

Table 1.2 reveals the power generated by NLC Ltd. during the period under study.
It has achieved a higher growth in power generation from 16242.43 million units in
2005-06 to 17656.04 million units in 2009-10, which is an increase by 1.08
percent.

1.2.9. Thermal Power Station I Expansion
The Thermal Power StationI was being expanded with an installation of two
units of 210 MW each. The expansion was sanctioned by the Govt. of India in
7

February 1996. Then the Government of India revised the cost estimate of this
project in December 2001 at a capital cost of Rs. 1,420.27 crores. The first unit
was synchronized on 21.10.2002. The second unit of the unit was synchronized in
July 2003. The cumulative capital expenditure incurred on these projects up to
31.03.2003 was Rs. 1,161.59 crores.

1.2.10 Sales
NLC Ltd. has recorded a higher sales growth. Table 1.3 shows sales
achieved from 2005-06 to 2009-10.
Table 1.3
(Rs. In Crores)
YEAR SALES PERCENTAGE
06-07 2108.11 0.00
07-08 2981.65 1.41
08-09 3354.91 1.59
09-10 4121.03 1.95
10-11 3949.08 1.87
Source: Compiled and Computed from Annual Reports of NLC Ltd.
Table 1.3 shows sales achieved by NLC Ltd. during the study period. It has
achieved a higher growth in sales from Rs. 2201.41 crores in 2005-06 to Rs.
4121.03 crores in 2009-10, which is an increase by 1.87 %.

1.2.11. Human Resource Development
NLC Ltd., takes pride in its highly motivated and trained human resource,
which has contributed its best for the company to achieve new heights. The total
manpower as on 31.03.2010
Executives 4051
Non-Executives 11915
Workmen 2390
Total 18,356

8



1.2.12 Service Units
The service units consist of Central Work Shop (CWS), Central Electrical
Repair Shop (CERS), Auto-yard, FC division and Bus section.
The CWS and CERS are undertaking the repair works and some fabrication
works for other six production units. The Auto-yard and FC divisions are
maintaining the vehicles like, bus, lorry, van, jeep, etc., which belongs to the
company.

1.2.13 Service centres
The following are the various service centres of NLC Limited. Unified
Water Supply, CMO - Mechanical Services, Central Workshop, Central Auto shop,
Printing Press, General Electrical, Civil Service Unit, CMO Repair Zone, CMO
Testing Zone.
1.2.14 Future Plans
The following projects mentioned in table 1.4 were identified to be implemented
during X plan period. The capacity and anticipated project cost are given in the
Table.
Table-1.4
Statement showing future plans
(Rs. in Crores)
Sl.
No.
Projects Capacity
Anticipated
Project Cost
1. Mine-II Expansion 10.5 MTPA 2161.28
2. TPS-II Expansion 2 x 250 MW 2030.78
3.
Rajasthan Project
Mine
2.1 MT of Lignite
/ annum
1368.25
4.
Rajasthan Project
TPS
2 x 125 MW
5.
Power Plant at B & C
site
210 MW 700.00
6. Mine III 8.0 MTPA
7500.00
7. TPS III 2 x 500 MW
9

8.
Power plant at
Tuticorin (JV with
TNEB)
1000 MW 4000.00
9. Orissa Power Project 200 MW 8000.00

Source: Compiled from the Annual Reports of NLC Ltd.
Of the above projects, the following projects namely Mine - II Expansion,
TPS - II Expansion and Rajasthan Mine cum Power Plant have received the
approval (Oct. 2004 & Dec. 2004) from the Government of India. The funds
required for the above projects will be met from internal resources and market
borrowing without any budgetary support from the Government.

1.3. OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:
To analyze the financial strength of NLC Ltd., for the period of 5 years from 2006-
07 to 2010-11 and to find out the Credit Worthiness of NLC Ltd.

SECONDARY OBJECTIVES:
Based on this main objective, the followings are the secondary objectives of the
present study.
To study the efficiency and effectiveness of companys performance by use of
profitability ratios.
To assess the actual position of functional performance in NLC Ltd., from the year
2006-07 to 2010-11
To analyze the reasons for the variation in profits for 5 years from 2006-07 to
2010-11
To offer suggestions and recommendations for improvement of financial position
of NLC Ltd.



10

1.4 SCOPE OF THE STUDY
In this Study, an attempt has been made to know about the companies
Financial Performance.
The study has been conducted with special reference to get a clear picture of
liquidity, Leverage, Activity and Profitability to assess efficiency level.
This study helps to calculate the value of different ratios to be carried out for
Ratio Analysis and also to calculate the value of different Assets and Liabilities to
be carried out for Comparative and Common Size balance Sheets of different
years.
This Study helps to find out the resources for further development of the
company.An attempt can be made during this study to understand the efficiency of
the company in other aspects of Financial Management.
This Study will be useful for the Comparison of Financial Position of NLC
Ltd., with any other Public Sector Organization.
This Study can be utilized to find out the Current Financial position of NLC
Ltd. The study concentrates on all the ratios, which are related to the assessment of
Financial Aspects.
11

CHAPTER - II
RESEARCH METHODOLOGY
=====================================================

The term Research refers to the systematic method consisting of enunciating
the problem, formulating a hypothesis, collecting the data, analyzing the facts
and reaching certain conclusions either in the form of solutions towards the
concerned problem or in certain generalized form of some theoretical
formulation.
According to Redman and Mory, the term Research was a Systematized Effort
to Gain New Knowledge.

2.1. RESEARCH DESIGN:
Research design is the blue print for doing the research. It is the arrangement of
conditions for collection and analysis of data in a manner that aims to combine
relevance to the research purpose with economy in procedure
This is an empirical study based on the financial information contained in the
annual reports of NLC. The study adopts descriptive methodology for evaluating
the financial performance of the organisation.

A study on financial performance of Neyveli Lignite Corporation Limited has been
made by calculating various ratios. The data for such analysis have been extracted
from the financial statements. These ratios have been interpreted and conclusions
have been drawn. Based on which, suggestion have been made to improve the
financial performance of Neyveli Lignite Corporation Limited.
12

2.2. METHODS OF DATA COLLECTION
This Study is limited to Secondary data available from various records of Annual
Reports of Neyveli Lignite Corporation Limited.

SECONDARY DATA
Since the study mainly focused on Financial Analysis for five years, the
researcher had given immense importance to collect Secondary data from the
companys Annual Reports for the years 2006-2011. Information collected from
above sources helped the researcher to conduct the study successfully. The
present study covers a period of 5 years i.e., from 2006-2007 to 2010-2011.

2.3. LIMITATIONS OF THE STUDY
This Study is limited to Secondary data available from various records of
Annual Reports of Neyveli Lignite Corporation Limited.
The study discloses only monetary facts.
In respect of internal information, the outsiders cannot probe into the
internal confidential matters of a company.
The study has been made only for five years from 2006-2007 to 2010-2011
The study does not cover other areas of Financial Management such as
Capital Budgeting
The study is based on past Financial Statements, but exact forecast of future
could not be done on this study for want of time.











13

CHAPTER - III
FINANCIAL STATEMENTS - A CONCEPTUAL ANALYSIS
=====================================================


FINANCIAL STATEMENTS
Financial statements refer to formal and original statements prepared by a
business concern to disclose its financial information.
American Institute of Certified Public Accountants (AICPA) says Financial
statements are prepared for the purpose of presenting a periodical review or report
on the progress by the management to deal with i) the status of investments in the
business and ii) the results achieved during the period under review.
According to J.J.Hampton, The statement disclosing status of investments
is known as balance sheet and the statement showing the result is known as profit
and loss account. Hence the term financial statement has been widely used to
represent two statements prepared by accountants at the end of specific period.
They are:
Profit & Loss account (or) Income statement.
Balance sheet (or) Statement of financial position.

Now a days the statement of retained earnings and schedules are also prepared to
supplement the data contained in the Income statement and the Balance sheet.

Functions of Financial statements:
Financial statements provide meaningful, useful and valuable information
periodically regarding the financial position and future prospects of the business
organisation. Such statements are not only useful to the managements but also to
outsiders like creditors, bankers, moneylenders, investors, shareholders, stock
exchange, trade associations and Government.
These statements are useful to them to study the liquidity, profitability and
solvency position of the organisation. They can also obtain the financial
information as and when required for decision-making and control.
The effective utilisation of capital employed, efficient use of assets and
improvement in financial position can be better analysed and understood from the
financial statements.
14

The outsiders can probe into information like earning capacity, growth
potential, efficiency of the operation etc, by analysing such statements. Such
statements are also useful to tax authorities for bringing tax and for the Govt.
authorities for analysing the trend of the industry and to formulate tax policies and
prepare budget.

Types of Financial Statements:
The basic financial statements prepared for the purpose of external reporting
to owners, investors and creditors are:
i. The Balance Sheet or Statement of Financial Position
ii. Profit And Loss Account or Income Statement.

Balance Sheet
Balance Sheet is the most significant Financial Statement. Balance Sheet is a
statement containing the assets and liabilities of a business on particular date.
It indicates the financial condition or the state of affairs of a business at a
particular moment of time.

Profit and Loss Account
The Profit and Loss Account is a statement prepared to determine the
operational position of the concern. The establishment and other expenses are
changes to the Profit and Loss Account.
Profit and Loss Account is a statement of revenue earned and the expenses
incurred. If there is excess of revenues over expenditures it will show Profit and if
the expenditures are more than the income then, there will be a Loss.
It helps the businessman to know the Net Profit Earned or Net Loss suffered
by the business during a particular period. The profit shown by the Profit and Loss
Account for a particular period can be compared with that of the other period so
that it helps to determine whether the business is being run efficiently or not.
Thus Profit and loss Account provides the overall Profit made or Loss
suffered by the business concern during a particular period.

15

Limitations of Financial Statements:
Financial Statements provide useful information regarding the financial
health of the organization.
The Financial Statements suffer from the following limitations:
a) Financial Statements are Essentially Interim Reports:
The Financial Statements can be considered only as interim reports. They
are not final because the exact financial position can be known only when the
business is closed.
b) Influence of Personal Judgment:
Generally, most of the financial statements are based on personal judgments
of the accountant. (for ex, the period for writing off preliminary expenses, Method
of depreciation etc.,)
c) Accounting Concepts and Conventions:
Financial Statements are prepared on the basis of certain accounting
concepts and conventions. So any change in the method or procedure of accounting
will restrict the utility of financial statements.
d) Do not consider Price Level Changes:
Financial Statements do not consider the changes in price level. Hence their use is
limited during Inflationary periods.
e) Disclose only Monetary Facts:
Financial Statements do not depict those facts which cannot be expressed in terms
of money.
f) Accounting Records of Past Events:
Financial Statements are the accounting records of past events only. Past can
never be a hundred percent representative of the future.








16

CHAPTER IV
ANALYSIS AND INTERPRETATIONS


The Analysis and Interpretation of Financial Statements provide a
systematic classification of the data given in the Financial Statements.
The financial statements show a static position of an organisation. Hence
they must be re-arranged and interpreted to study the sufficiency as well as the
growth of a business.

FINANCIAL ANALYSIS
Financial Analysis is the process of identifying the financial strengths
and weaknesses of the firm by properly establishing relationship between the items
of the balance sheet and profit and loss account.
The analysis provides an idea about the profitability and financial
position of a company, and the financial statements have to be analyzed and
interpreted. The term analysis means a critical examination of financial
transactions effected during definite period of time. The analysis and interpretation
of financial statements is an attempt to determine the significance and meaning of
the financial statement data so that forecast may be made of the prospects for
future earnings, ability to pay interest and debt maturities and probability of a
sound dividend policy.













17

4.1 LIQUDITY RATIO
A class of financial metrics that is used to determine a company's ability to
pay off its short-terms debts obligations. Generally, the higher the value of the
ratio, the larger the margin of safety that the company possesses to cover short-
termdebts.

4.1.1 CURRENT RATIO
Current Ratio is the relationship between the total current assets and current
liabilities. It is the ratio of the current assets and current liabilities and is found out
by dividing the current assets by the current liabilities. As the ratio is connected
with the working capital [Current Assets Current Liabilities] and it is also called
working capital ratio.

Current ratio is the indicator of short term liquidity position of a firm.

Current Assets
Current Ratio = -----------------------
Current Liabilities

Table 4.1
CURRENT RATIO
(Rs. in crores)
YEAR CURRENT
ASSETS
CURRENT
LIABLITIES
RATIO
06-07 5398.09 1653.28 3.27
07-08 5883.75 1834.04 3.20
08-09 7557.07 2851.56 2.65
09-10 7684.36 3003.19 2.56
10-11 5666.10 1863.84 3.04

Source: Companys Annual Report
18








FIGURE 4.1








Inference
The ideal current ratio is 2:1,the current ratio of company was 3.04:1 in the
year 2010-11 and 3.27:1 in the year 2006-07. This ratio is more than standard ratio
in all years taken for study. Hence it shows a satisfactory liquidity position.
19

4.1.2 QUICK RATIO
It is also a tool of testing the liquidity of an organisation. This ratio is also
called as Liquid Ratio (or) Acid test ratio.
Acid Test Ratio or Liquid Ratio is concerned with the relationship between Liquid
Assets and Current Liabilities.
Quick Ratio is an Indicator of Short term solvency of the company.

Liquid Assets
Quick Ratio = ----------------------
Current Liabilities

Table 4.2
QUICK RATIO
(Rs. in crores)
YEAR Liquid ASSETS CURRENT
LIABLITIES
RATIO
06-07 4947.6 1653.28 2.99
07-08 5435.7 1834.04 2.96
08-09 7021.22 2851.56 2.46
09-10 7181.4 3003.19 2.39
10-11 5311.94 1863.84 2.85

Source: Companys Annual Report








20



FIGURE 4.2














Inference
The Standard quick ratio is 1:1. Liquid ratio shows high variation and is very
much fluctuating.
21

4.2 ASSET MANAGEMENT RATIO
Asset management (turnover) ratios compare the assets of a company to
its sales revenue. Asset management ratios indicate how successfully a company is
utilizing its assets to generate revenues. Analysis of asset management ratios tells
how efficiently and effectively a company is using its assets in the generation of
revenues. They indicate the ability of a company to translate its assets into the
sales. Asset management ratios are also known as asset turnover ratios and asset
efficiency ratios.

4.2.1 ACCOUNTS RECIVABLE TURNOVER
The Accounts receivable turnover ratio indicates the velocity of a
company's debt collection, the number of times average receivables are turned over
during a year. This ratio determines how quickly a company collects outstanding
cash balances from its customers during an accounting period. It is an important
indicator of a company's financial and operational performance and can be used to
determine if a company is having difficulties collecting sales made on credit.
Net Sales
Accounts recivable turnover = ---------------------------------------------
Average Accounts Receivable
Table 4.3
ACCOUNTS RECIVABLE TURNOVER RATIO
(times)
YEAR SALES DEBTORS RATIO
06-07 2108.11 89.41 23.58
07-08 2981.65 218.33 13.63
08-09 3354.91 781.44 4.29
09-10 4121.03 1611.62 2.56
10-11 3949.08 2206.19 1.79
Source: Companys Annual Report
22




FIGURE 4.3













Inference
The accounts receivable turnover shows a decreasing trend. The outstanding
cash balance is high during the last year.
23

4.2.2 DAYS IN ACCOUNTS RECIVABLE

The Number of Days in Accounts Receivable is the average length of time
required to collect our receivables. A low number of days is desirable.

365
Days in accounts receivable = --------------------------- ------------
Accounts Receivable Turnover


Table 4.4
DAYS INACCOUNTS RECIVABLE
(days)
YEAR DAYS ACCOUNTS
RECIVABLE
TURNOVER
DAYS
06-07 365 23.58 15.5
07-08 365 13.63 26.8
08-09 365 4.29 84.8
09-10 365 2.56 146
10-11 365 1.79 202.7

Source: Companys Annual Report






24







FIGURE 4.4










Inference
A low number of days is desirable. The number of days is in a increasing
trend which is not good for the company.
25


4.2.3 INVENTORY TURNOVER

Inventory turnover is a measure of the number of times inventory is sold or
used in a given time period such as one year. It is a good indicator of inventory
quality, efficient buying practices, and inventory management. This ratio is
important because gross profit is earned each time inventory is turned over. Also
called stock turnover.

Cost of Sales
Inventory turnover=-----------------------------------
Average Inventory

Table 4.5
INVENTORY TURNOVER

(times)
YEAR SALES INVENTORY INVENTORY
TURNOVER
06-07 2108.11 455.49 4.6
07-08 2981.65 448.05 6.6
08-09 3354.91 535.85 6.2
09-10 4121.03 502.96 8.1
10-11 3949.08 491.71 8.0

Source: Companys Annual Report



26









FIGURE 4.5









Inference
A higher turnover rate is desirable.The year 2009-10 shows a higher turn
over rate which states the management does not hold onto excess inventory.
27

4.2.4 DAYS IN INVENTORY

Days in Inventory is the average number of days we held our inventory
before a sale. A low number of inventory days is desirable. A high number of days
implies that management is unable to sell existing inventory stocks.

365
Days in inventory = ----------------------------------------
Inventory Turnover
Table 4.6
DAYS IN INVENTORY
(days)
YEAR DAYS INVENTORY
TURNOVER
DAYS IN
INVENTORY
06-07 365 4.6 79.3
07-08 365 6.6 55.3
08-09 365 6.2 58.8
09-10 365 8.1 45
10-11 365 8.0 45.6

Source: Companys Annual Report







28







FIGURE 4.6










Inference
A lesser number of days is desirable. The year 2009-10 and 2010-11 shows
a lesser days which means the management is capable of selling existing inventory
stock.
29

4.2.5 OPERATING CYCLE

Expressed as an indicator (days) of management performance efficiency, the
operating cycle is a "twin" of the cash conversion cycle. While the parts are the
same - receivables, inventory and payables - in the operating cycle, they are
analyzed from the perspective of how well the company is managing these critical
operational capital assets, as opposed to their impact on cash.

Operating Cycle = Number of Days in Receivables + Number of Days in
Inventory.

Table 4.7
OPERATING CYCLE
(days)

YEAR NUMBER OF
DAYS IN
RECEIVABLES
NUMBER OF
DAYS IN
INVENTORY.

OPERATING
CYCLE
06-07 15.5 79.3 94.8
07-08 26.8 55.3 82.1
08-09 84.8 58.8 143.6
09-10 146 45 191
10-11 202.7 45.6 248.3

Source: Companys Annual Report







30





FIGURE 4.7












Inference
The operating cycle shows an increasing trend from the year 2008-09.

31

4.2.6 CAPITAL TURNOVER RATIO

Capital Turnover Ratio indicates the extent to which capital employed
contributes towards sales.
High ratio signifies that there exists efficient utilization of the capital employed by
the firm.
Sales
Capital Turnover Ratio = -----------------------------
Capital Employed

Table 4.8
CAPITAL TURNOVER RATIO
(Rs. in crores)

Year Sales
Capital
Employed
Ratio
06-07 2108.11 9313.45 0.23
07-08 2981.65 8910.94 0.33
08-09 3354.91 9303.62 0.36
09-10 4121.03 11166.88 0.37
10-11 3949.08 11621.00 0.33

Source: Companys Annual Report








32



FIGURE 4.8














Inference
The Capital turnover ratio shows a increasing trend from 2006-2007 to 2009-2010
and decreased in last year.
33

4.3 PROFITABLITY RATIO

Profitability ratios measure a companys ability to generate earnings
relative to sales, assets and equity. These ratios assess the ability of a company to
generate earnings, profits and cash flows relative to relative to some metric, often
the amount of money invested. They highlight how effectively the profitability of a
company is being managed.

4.3.1 OPERATING INCOME TO SALES

Operating Income to Sales compares Earnings Before Interest and Taxes
(EBIT) to Sales. By using EBIT, we place more emphasis on operating
results and we more closely follow cash flow concepts.
EBIT
operating income to sales= ----------------------------------------
Net Sales
Table 4.9
OPERATING INCOME TO SALES
(Rs. in crores)
YEAR EBIT NET SALES OPERATING
INCOME TO
SALES
06-07 1360.39 2108.11 0.64
07-08 1887.24 2981.65 0.63
08-09 1486.37 3354.91 0.44
09-10 1889.16 4121.02 0.45
10-11 2259.98 3949.08 0.57

Source: Companys Annual Report
34






FIGURE 4.9












Inference
This ratio shows a decreasing trend from 2006-07 to 2009-10 and increased
in last year.
35

4.3.2 RETURN ON ASSETS

Return on Assets measures the net income returned on each rupee of assets.
This ratio measures overall profitability from our investment in assets. Higher rates
of return are desirable.
Net Income
Return on assets= -------------------------------------------
Average Total Assets

Table 4.10
RETURN ON ASSETS
(Rs. in crores)

YEAR NET INCOME ASSETS RETURN ON
ASSETS
06-07 566.78 12174.77 4.6
07-08 1101.57 14273.96 7.7
08-09 821.09 17049.93 4.8
09-10 1247.46 17975.65 6.9
10-11 1298.33 18342.00 7.0

Source: Companys Annual Report










36






FIGURE 4.10











Inference
A higher rate of return is desirable. The return rate is high during the year
2007-2008.

37

4.4 LEVERAGE RATIO

Leverage ratio used to calculate the financial leverage of a company to get
an idea of the company's methods of financing or to measure its ability to meet
financialobligations.

4.4.1 DEBT TO EQUITY
Debt to Equity is the ratio of Total Debt to Total Equity. It compares the
funds provided by creditors to the funds provided by shareholders. As more debt is
used, the Debt to Equity Ratio will increase. Since we incur more fixed interest
obligations with debt, risk increases. On the other hand, the use of debt can help
improve earnings since we get to deduct interest expense on the tax return. So we
want to balance the use of debt and equity such that we maximize our profits, but
at the same time manage our risk.
Total Liabilities
Debt to equity= ----------------------------------
Shareholders Equity
Table 4.11
DEBT TO EQUITY
(%)

YEAR TOTAL
LIABLITIES
EQUITY DEBT TO
EQUITY
06-07 12174.77 1677.71 7.25
07-08 14273.96 1677.71 8.5
08-09 17218.77 1677.71 10.2
09-10 7650.98 1677.71 4.5
10-11 7167.47 1677.71 4.2

Source: Companys Annual Report
38




FIGURE 4.11













Inference
If the debt is high the ratio will also increase. The ratio shows a decreasing
trend in last to years.
39

4.4.2 DEBT RATIO

The Debt Ratio measures the level of debt in relation to our investment in
assets. The Debt Ratio tells us the percent of funds provided by creditors and to
what extent our assets protect us from creditors. A low Debt Ratio would indicate
that we have sufficient assets to cover our debt load. Creditors and management
favor a low Debt Ratio.

Total Liabilities
Debt ratio = -------------------------------------
Total Assets
Table 4.12
DEBT RATIO
(%)
YEAR TOTAL
LIABLITIES
TOTAL ASSETS DEBT RATIO
06-07 12174.77 12174.77 1.00
07-08 14273.96 14273.96 1.00
08-09 17218.77 17049.93 1.004
09-10 7650.98 17975.65 0.42
10-11 7167.47 18342.00 0.39

Source: Companys Annual Report






40









FIGURE 4.12









Inference
A low debt ratio is favorable. The debt ratio is low during
Last year
41

4.4.3 TIMES INTREST EARNED

Times Interest Earned is the number of times our earnings (before interest
and taxes) covers our interest expense. It represents our margin of safety in making
fixed interest payments. A high ratio is desirable from both creditors and
management.

Earnings Before Interest and Taxes
Times interest earned= -------------------------------------------
Interest Expense
Table 4.13
TIMES INTEREST EARNED
(times)
YEAR EBIT INTREST TIMES
06-07 1360.39 43.28 31.43
07-08 1887.24 8.80 214.45
08-09 1486.37 8.15 182.37
09-10 1889.16 33.58 56.25
10-11 2259.98 159.07 14.2

Source: Companys Annual Report







42






FIGURE 4.13












Inference
A high ratio is desirable. There is decreasing trend from the year 2007-08 to
2010-11 which is not good for the company.
43

4.4.4 RETURN ON EQUITY

For publicly traded companies, the relationship of earnings to equity or
Return on Equity is of prime importance since management must provide a return
for the money invested by shareholders. Return on Equity is a measure of how well
management has used the capital invested by shareholders. Return on Equity tells
us the percent returned for each rupees invested by shareholders.

Net income
Return on equity = -----------------------------------
average shareholders equity




Table 4.14
RETURN ON EQUITY
(%)


Source: Companys Annual Report






YEAR NET INCOME EQUITY RETURN ON
EQUITY
06-07 566.78 1677.71 33.78
07-08 1101.57 1677.71 65.65
08-09 821.09 1677.71 48.94
09-10 1247.46 1677.71 74.35
10-11 1298.33 1677.71 77.38
44






FIGURE 4.14











inference
The retuen on equity is very much fluctuating and is high during the year
2010-11.
45

4.5 MARKET VALUE RATIO

Market value ratios attempt to measure the economic status of the
organization within the marketplace. Investors use these ratios to evaluate and
monitor the progress of their investments.

4.5.1 EARNINGS PER EQUITY SHARE

It is an indicator of profitability of investment from the point of view of
shareholders. Earnings per share are considered to be one of the important tools in
financing decisions. The higher the earnings per share, the more profitable is the
financing plan and vice versa.
Profit after Tax * face value/share
Earnings per Equity Share Ratio = ------------------------------------------
Number of Outstanding Shares

Table 4.15
EARNINGS PER EQUITY SHARE RATIO
(Rs. in crores)

Year
Profit
After tax
No. of
Equity
Shares
Ratio
06-07 566.78 1677.71 3.38
07-08 1101.57 1677.71 6.57
08-09 821.09 1677.71 4.89
09-10 1247.46 1677.71 7.44
10-11 1298.33 1677.71 7.73

Source: Companys Annual Report



46


FIGURE 4.15














Inference
It depends on the companys performance and also overallmarket conditions
and the market share of the company. Earnings per share ratio of the five years is
fluctuating depending on the net profit.

47

4.5.2 BOOK VALUE PER SHARE

It is an indicator of profitability of investment from the point of view of
shareholders. This ratio helps in determining the market price of the equity shares
of the company. It also helps in estimating the companys capacity to pay dividend
to its equity shareholders.
These are considered to be one of the important tools in financing decisions. The
higher the earnings per share, the more profitable is the financing plan and vice
versa.
Shareholders fund * face value/share
Book value Ratio = ------------------------------------------
Number of Outstanding Shares

Table-4.16
BOOK VALUE RATIO
(Rs. in crores)

Year
Sharehold
ers fund
No. of
Equity
Shares
Ratio
06-07 8330.51 1677.71 49.65
07-08 9008.79 1677.71 53.88
08-09 9469.23 1677.71 56.44
09-10 10324.67 1677.71 61.50
10-11 111215.3 1677.71 66.29

Source: Companys Annual Report






48


FIGURE 4.16

















Inference
This ratio shows an increasing trend for the past 5 years from 2006 till 2011.
49

4.8 COMPARING FINANCIAL STATEMENTS

One final way of evaluating financial performance is to simply compare
financial statements from period to period and to compare financial statements
with other companies. This can be facilitated by vertical and horizontal analysis.

4.8.1 HORIZONTAL ANALYSIS

It is also known as trend analysis.

Trend means the tendency of the financial statement for a series of years and may
be analyzed to determine the trend of the data contained therein.

Trend percentages are used to make a comparative study of the financial
statements for several years.

A trend percentage involves the calculation of percentage relationship that each
item bears to the same item in the base year. Any year may be taken as base year.
The figures of the base year are taken as 100 and trend ratios for other years are
calculated on the basis of base year.

Trend analysis rearranges the data in a manner, which makes it easy to identify
changes and interpret the same.
.
A trend statement will show the direction of financial strength of a concern.
Therefore, financial trend analysis is very helpful in making a comparative study of
the financial statement for several years.
.
Some important financial variables like Sales, EBIT, Net profit, Net work, Loan
fund, CA, CL Fixed assets, Net Assets and Total assets are taken into account for
which the trend percentages are calculated for the 5 years period and presented in
the following table(next page) .



50


Table-4.17
Trend % Analysis from 2006-07 to 2010-11

(%)
Particulars 2006-07 2007-08 2008-09 2009-10 2010-11
Sales 100 141.43 159.12 195.48
187.32
EBIT 100 137.99 109.26 138.86
166.12
Net Profit 100 194.35 144.86 220.09
229.07
Net Worth 100 108.41 113.28 123.06
133.84
Loan Fund 100 185.34 269.48 270.79
265.92
Current
Liabilities
100 118.54 166.48 193.25
156.39
Fixed Assets 100 92.83 85.9 133.57
131.00
Net Assets 100 99.42 114.77 110.03
123.85

Inference
Sales: Sales figure shows an increasing trend from 2007-08 to 2009-10. This
increase is because of no hectic competition in Power Supply. Sales percentage
ranges from 95.76% to 187.20%. in the past 4 years there is a gradual increase in
sales.

EBIT: EBIT also shows a varying trend from 2006-07 to 2010-11.

Net Profit: Net Profit shows up and down in the past five years, because of
increase and decrease in sales.

Net Worth: Net Worth shows an increasing trend from 2006-07 to 2010-11 .

Loan Fund: Loan Fund varies from year to year. Loan Fund is very high during
2009-2010 .
51


Current Asset: Current Asset percentage keeps fluctuating. The 2008-2009
position is good, compared to other years.


Current Liabilities: Current liabilities show an increasing trend from the year
2005-06, which is not good for the company.

Fixed Asset: Fixed Asset position shows a decreasing trend from the year 2005-
06 of 100% and there was increase in 2009-10.

Net assets: Net assets position is unstable. It fluctuates for each year starting from
2005-2010.






















52

4.8.2 VERTICAL ANALYSIS

Vertical analysis compares line items on a financial statement over an
extended period of time. This helps us spot trends and restate financial statements
to a common size for quick analysis. For the Balance Sheet, we will use total assets
as our base (100%).
Table-4.18
Vertical Analysis from 2006-07 to 2010-11

06-07 07-08 08-09 09-10 10-11
SOURCES OF FUNDS
Share capital 15.9 13.4 11.8 11.2 10.6
Reserves and
surplus
63.2 59.1 54.8 57.7 60.2
Secured loans 6.4 15.0 21.8 21.6 19.9
Unsecured
loans
7.8 7.3 6.7 5.6 5.4
Deferred tax
liability
6.5 4.8 4.7 3.8 3.6
TOTAL 100 100 100 100 100
APPLICATION OF FUNDS
Fixed assets 55.3 60.5 60.7 61.0 60.1
Investments 8.8 6.6 5.7 6.9 6.1
Current assets 35.5 32.5 33.1 31.2 33.4
Miscellaneous
expenditure
0.2 0.2 0.3 0.6 0.3
TOTAL 100 100 100 100 100

Inference The reserves and surplus contribute a lot in sources and the fixed assets
contribute a lot in the application for all the years.
53

4.9 FUND FLOW STATEMENT

According to working capital concept of funds, the Flow of fund
refers to movements of funds described in terms of the flow in and out of the
Working Capital. The Flow of funds refers to transfer of economic Values from
one asset to another, from equity one to another, from an asset to equity or vice
versa or a combination of any of these.
The statement of sources and applications of funds also called fund flow
statement or statement of derivation and disposition of the means of operation.
It is the flow of funds between the various assets and equity items during an
accounting period. It provides a missing link in the complement of final account
statements.
Secondly, it acts as an instrument for the allocation of resources. The amount of
funds to be available from current business operations for meeting the needs of
such programmes is estimated by the financial manager through the projection of
the fund flow analysis.
Thirdly, Funds statement also evaluates the urgency of operational issues. Finally,
funds statement points to the effectiveness with which management has handled
working capital during the period and review the adequacy or otherwise of the
present funds and tells the shareholders or investors something of managements
plans for the future.













54

Table - 4.19
(Rs. in crores)
No
.
Particulars
YEARS
2006-07 2007-08 2008-09 2009-10 2010-11
A SOURCES
1
Funds from
operation
758.41 1132.77 857.60 1116.03
335.69
2
Decrease in
capital work-
in- progress
- - - 127.93
1237.36
3
Increase in
secured loan
78.15 974.85 1225.15 137.5

4
Sales of
investment
1662.01 26.65 14.85 -

5
Decrease in
working
capital
- - 24.34

6
Recovery of
advances
1.77 2.77 117.42 85.67
80.76
7.
increase in
unsecured
loan
140.84 604.84 41.87
8.95
8.
Increase in
deferred tax
liability
65.55

Total 2641.18 2741.88 2322.44 1491.47 1662.76
B
Application
s


1
Purchases of
fixed assets
249.84 582.39 1212.9 1039.07
530.92
2
Purchase of
investment
- -

233.55
80.19
3
Increase in
working
868.56 304.90 655.80
1042.7
55

capital
4
Increase in
capital work-
in- progress
1431.74 1763.55 453.74 -

5
Repayment
of loans
- - 117.81

6
Decrease in
deferred tax
liability
91.04 91.04 - 101.04
8.95
7.
Increase in
advance


Total 2641.18 2741.88 2322.44 1491.47
1662.76


Inferences:
The main source of funds is from operations.
The companys borrowed funds have increased in the years 2005-2008 and a
decrease is experienced in 2008-09.
The company has used most of the funds to purchase fixed assets.
The company used Rs.142.98 crores, 117.81 crores for repayment of loan in
2009-10.
The company sold investment during 2006-2009 and purchased investment
during the year 2009-11.
The working capital of the company shows an uneven increased trend during
the 2006-07 to 2008-09 and a decrease in 2009-10 and again a increase in
2010-2011.
There was no increase in advance for the past five years.
Capital Work in progress of company increased during 2006-07 till
2008-09 and a decrease in the year 2009-10 and 2010-11.




56

4.10 TEST OF HYPOTESIS
A statistical hypothesis test is a method of making decisions using data,
whether from a controlled experiment or an observational study . use of hypothesis
testing is deciding whether experimental results contain enough information to cast
doubt on conventional wisdom.A result that was found to be statistically
significant is also called a positive result; conversely, a result that is not unlikely
under the null hypothesis is called a negative result or a null result.

4.10.1 Z TEST
A Z-test is a statistical test for which the distribution of the test
statistic under the null hypothesis can be approximated by a normal
distribution. Due to the central limit theorem, many test statistics are
approximately normally distributed for large samples. Therefore, many statistical
tests can be performed as approximate Z-tests if the sample size is large.
The last 10 years net profit(from annual report) is taken as the population,
from that a random sample of 5 years net profit is taken. The samples are
566.78,1101.57, 821.09, 1247.46, 1298.33
d D
2
566.78

321239.56
1101.57 1213456.46
821.09

674188.78
1247.46 1556156.45
1298.33 1685660.78
Sum = 5035.23 Sum = 3241817.23
57



n - no of samples
- population mean
- sample mean
S - standard deviation

n = 5
= 1007.05
= 1006.37
S = 302.8



On calculating we get Z = 0.005
Table value of Z at 5% level is 1.96

Since I Z I < 2.58 , the hypothesis is accepted






Inference
The calculated value is less than the tabulated value states that the
hypothesis is accepted which means the industry is financially performing well.
58


4.11 CORRELATION
Correlation refers to any of a broad class of statistical relationships
involving dependence. dependence refers to any statistical relationship between
two random variables or two sets of data.

On taking the net profit and sales of last five years we are going to find weather the
dependency exist between them or not.

SALES NET PROFIT
2108.11 566.78
2981.65 1101.57
3354.91 821.09
4121.02 1247.46
3949.08 1298.33

By using SPSS the following table is computed,


Descriptive Statistics

Mean Std. Deviation N
VAR00001
1.0070E3 308.21820 5
VAR00002
3.3030E3 809.36683 5












59




Correlations

VAR00001 VAR00002
VAR00001 Pearson Correlation
1 .873
*

Sig. (1-tailed)

.027
N 5 5
VAR00002 Pearson Correlation
.873
*
1
Sig. (1-tailed) .027

N 5 5
*. Correlation is significant at the 0.05 level (1-tailed).















Inference
Since the correlation is significant at 5% level there exist a dependency i.e.
the profit is dependable on sales.
60


On taking the net profit and investment of last five years we are going to find
weather the dependency exist between them or not.

INVESTMENT NET PROFIT
929.41 566.78
826.22 1101.57
811.37 821.09
1044.94 1247.46
964.75 1298.33

By using SPSS the following table is computed,


Descriptive Statistics

Mean Std. Deviation N
VAR00001
1.0070E3 308.21820 5
VAR00002
9.1534E2 97.70825 5

Correlations

VAR00001 VAR00002
VAR00001 Pearson Correlation
1 .417
Sig. (1-tailed)

.242
N 5 5
VAR00002 Pearson Correlation .417 1
Sig. (1-tailed) .242

N 5 5
Inference
Since there is no significance in the computed table there is no dependency
exist between the investment and the net profit. This is so because the investments
are made only if the project is proposed. These investment made are long term
investment.
61

4.12 REGRESSION

In statistics, regression analysis includes many techniques for modeling and
analyzing several variables, when the focus is on the relationship between
a dependent variable and one or more independent variables. Regression analysis
helps one understand how the typical value of the dependent variable changes
when any one of the independent variables is varied, while the other independent
variables are held fixed.

On taking the net profit and sales of last five years we are going to find weather a
relationship exist between them or not

SALES NET PROFIT
2108.11 566.78
2981.65 1101.57
3354.91 821.09
4121.02 1247.46
3949.08 1298.33

By using SPSS the following tables are computed,

Model Summary
b

Model R R Square Adjusted R Square
Std. Error of the
Estimate
1
.873
a
.762 .682 173.72143
a. Predictors: (Constant), VAR00002

b. Dependent Variable: VAR00001








62


ANOVA
b

Model Sum of Squares df Mean Square F Sig.
1 Regression
289456.428 1 289456.428 9.591 .053
a

Residual 90537.404 3 30179.135

Total 379993.831 4

a. Predictors: (Constant), VAR00002

b. Dependent Variable: VAR00001


Coefficients
a

Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant)
-90.743 362.885

-.250 .819
VAR00002 .332 .107 .873 3.097 .053
a. Dependent Variable: VAR00001



Residuals Statistics
a


Minimum Maximum Mean Std. Deviation N
Predicted Value 609.9208 1.2789E3 1.0070E3 269.00577 5
Residual -2.03224E2 2.01314E2 .00000 150.44717 5
Std. Predicted Value -1.476 1.011 .000 1.000 5
Std. Residual -1.170 1.159 .000 .866 5
a. Dependent Variable: VAR00001



Inference
From the above tables we find that there exist a relationship between the net
profit and sales i.e. profit is dependent on sales

63

CHAPTER V
FINDINGS, SUGGESTIONS AND CONCLUSIONS


5.1. FINDINGS FROM THE STUDY

The study reveals that share capital of company is constant. Equity share capital of
NLC Ltd., have been effectively utilised. The profitability of company on shareholder
point of view is appreciable.
Reserves and surplus increased throughout the year continuously due to profit made
by the company.
The net worth of the company shows an increasing trend.
Cash position of NLC Ltd., is favourable.
Lenders position is safe regarding long term credit and NLC Ltd., has a good
opportunity of raising additional funds in future. At present NLC Ltd., has signed loan
agreements to the tune of Rs. 7500 Crore with Power Finance Corporation, Rural
Electrification Corporation & Consortium of Banks led by Canara Bank (Rs. 2500
Crore from each Organisation) for executing its ongoing projects.
The Liquidity position of the concern is positive. The current ratio are above the
required ratio of 2:1 and quick ratio is also beyond the expected level of 1:1.
NLC Ltd., maintained a well debt equity position.
The companys (NLC Ltd.,) Investment in fixed assets contribute to sales. Thus its
investment is judicious.
NLC Ltd., effectively utilized its working capital in making sales.
64

The companys main source of funds was through operation. It utilized its funds for
purchasing fixed assets. Some funds were utilized to pay loan in 2006-07.
NLC Ltd., can well survive due to safe Return on Investment.
Operating expenses of NLC Ltd., is high and it tries to reduce further in forth coming
years.
NLC Ltd., is trying to improve its business condition through Expansion and New
Projects.

65



5.2. SUGGESTIONS AND RECOMMENDATIONS
Company must take immediate steps to reduce the inventory holding so that it may
improve the profit position.
The Net Profit position of the company is very low during 2006-07 and it is high from
the there on. Hence, the company must pay attention to reduce expenses in order to
increase the over all profitability of the organisation.
Bank borrowings have to be reduced in order to reduce the interest burden.
Operating expenses of NLC Ltd., have to be reduced by replacing old machineries,
worn-out parts and through proper maintenance. So that, frequent break-downs can
be avoided.
Disposal of unutilized assets and spares may be a desired one for NLC Ltd.
NLC Ltd., have to maintain existing assets properly by keeping the schedule of
overhaul properly.
There was a decrease in profit 2008-09, which was mainly due to decrease in
production. The company should try to avoid such fluctuations.
Cash position of NLC Ltd., have to be still strengthened. This can be achieved by
following same average collection period of its debtors, by giving additional rebates
for early payments by Electricity Boards.

66


5.3. CONCLUSION
It may be concluded that the organisation overall financial performance is good.
The liquidity position of the concern is positive. The company has maintained the
current assets and current liabilities position effectively which means the current ratio is
above the required ratio of 2 : 1. The liquid ratio and cash ratio of Neyveli Lignite
Corporation Limited are favorable and the organisation can very well meet its current
obligation.
The profitability of the company was found to be comfortable, which means that
the company is making more profit, which is the basic requirement for any business and
also the working capital assessment in Neyveli Lignite Corporation Limited has been
effectively and properly maintained.
The long-term credit position of NLC Ltd., is safe and so the company has a
great opportunity of raising additional funds in future to meet its capital expenditure to
enlarge its capacity base.
Hence, the companys financial position is fine and expansion of the business
and diversification can be done with its rich Human resources spread over Mining &
Power sector.
The buoyant business growth and the financial acumen is one of the traits paved
way for receiving the NAVRATHNA status from Government of India in. March 2011.





67

BIBLIOGRAPHY:

1. T.S. Reddy & Y. Hari Prasad Ready Financial and Management Accounting
Margham publishers, Chennai.

2. Man Mohan and Shiv. N. Goyal Six Edition (1995), PRINCIPLES OF
MANAGEMENT ACCOUNTING Sahitya Bhawan Publications, Agra-282 003,
PP. 388-415, 416-507.

3. C.R.Kothari Second Edition, Reprinted (2004), RESEARCH
METHODOLOGY - New Age International (P) Limited Publications, New Delhi-
110 002, PP. 1-4, 31.

4. S.N. Maheswari Management Accounting Sultan chand & Co., New Delhi.

5. Brown Coal House Journal of Neyveli Lignite Corporation Limited - Public
Relation Department Publications, Neyvli-607 801.

6. Annual Reports (2005-06 to 2009-10) collected from the library of Neyveli
Lignite Corporation Limited., Neyveli.

7. Referral Website: www.nlcindia.com
www.lignitemining.com