Summer Internship Project Report

“A COMPARATIVE ANALYSIS OF FINANCIAL

STATEMENTS
WITH REGARDS TO SOME PREVIOUS YEAR
DATA OF
THDC”

BY
Vishu Jawla
BBA V SEMESTER

NAME OF COMPANY- TEHRI HYDRO

DEVELOPMENT CORPORATION

Submitted to:
Supervised by: Dr.Anurag Kushwaha
A s s is tant pr of es s or
Mr. A.K. Nayak
DGM ACCOUNTS D ev Bhoo mi I n s titu te
THDC, RISHIKESH of Management Studies,
D ehr adun

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 CERTIFICATE BY FACULTY

This is to certify that Vishu Jawla is a student of BBA, Roll No: 210209290067
successfully completed Internship program entitled “A Comparative study of
Mahindra and Mahindra India" under my supervision the partial fulfillment for the
award of BBA degree.

He has done his job according to my supervision and guidance. He has tried to his
best to do this successfully. I think this program will help his in the future to build up
his finer career.

I wish his success and prosperity.

Dr. Anurag khushwaha

Internship Supervisor

AssistantProfessor

DEV BHOOMI INSTITUTE OF MANAGEMENT STUDIES (DBIMS),

DEHRADUN

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 ACKNOWLEGMENT
Behind every study their stands a myriad of people whose help and contribution make it
successful. Since such a list will be a prohibitively long .I may be excused for important
omissions.

I am highly thankful to the management of the THDC India LTD. (Rishikesh), who provided
me the opportunity to conduct the training at the organization.

I am extremely grateful to Mr.A.K. NAYAK (DGM Accounts), Mr. C.M Bhatt (Sr.Manager
Finance) and Km. Lajju Chauhan (Dy. Manager Finance) THDCIL, Rishikesh to inspire of
their pre-occupation could spare their valuable time and imparted me a lot of suggestion and
guidance to fulfill the goal of completing this challenging task.

Great deals appreciated go to the contribution of my faculty - Faculty of Management (FOM).

I am also would like to thankful to (FOM), Dr.Anurag Kushwaha, Dean Prof Dr. O. P. Soni and
HOD Prof. Dr.Vikash Tyagi and all the staff that patient in helping us complete this program.
Last but not least I would like to thank my friends especially those who work together as
interns at Tehri Hydro Development Corporation, Rishikesh.

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 CANDIDATE DECLARATION

I hereby declare that the project work entitled “An Comparative Analysis of Financial
Statements of THDC INDIA LTD. through Ratio Analysis” submitted to Dr. Anurag
Kushwaha, Asst. Professor, BBA Department, DBIMS in partial fulfillment of the
requirement for the degree of Bachelor of Business Administration.

It is my original work and not submitted for the award of other degree and diploma.

Date: Student Signature

Vishu Jawla
Place: BBA 3rd sem

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 ABSTRACT

I have completed the project report on ““A COMPARATIVE FINANCIAL ANALYSIS

WITH REGARDS TO PAST YEAR DATA OF THRI HYDRODEVLOPMENT
CORPORATION” and the main motive for choosing such a topic was my keen interest in the
industry practices in financial management.

Financial statements contain a wealth of information which, if properly analyzed and

interpreted, can provide valuable insights into a firm’s performance and position. Analysis of
financial statements is of interest to several groups interested in a variety of purposes.

The principal tool of financial statement analysis is financial ratio analysis which essentially
involves a study of ratios between various items of groups of items in financial statements.
Financial ratios may be divided into five broad types: liquidity ratios, leverage ratios,
turnover ratios, profitability ratios, and valuation ratios.

I have contributed to the company through my project report recommendation some of them
are as follows-

1. Profitability of the company

2. Stability of the company
3. Financial trend of THDC

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 TABLE OF CONTENTS

TRAINING CERTIFICATE 2
ABSTRACT 5
TABLE OF CONTENTS 6
LIST OF FIGURES 7
1 INTRODUCTION 8-18
1.1 BACKGROUND AND CONTEXT 9
1.2 SCOPE AND OBJECTIVES 10
1.3 ACHIEVEMENTS 11
1.4 OVERVIEW OF DISSERTATION 11-18
2 PROFILE OF ORGANIZATION 19-28
2.1 HISTORICAL BACKGROUND 20
2.2 VISION 21
2.3 MISSION 21
2.4 SWOT ANALYSIS 22-28
3 REVIEW OF LITERATURE 29-30
4 RESEARCH METHODOLOGY 31-32
4.1 Source Of Data 31
4.2 Limitation 32
5 DATA ANALYSIS 33-46
6 CONCLUSION 47
6.2 SUGGESTIONS AND RECOMMENDATIONS 47
6.3 FUTURE WORK 48
7 ANNEXURE 51-56
REFERENCES 57
APPENDICES 58

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 LIST OF TABLE

1. Common size statement 33-35

2. Comparative statement 36-37
3. Ratios
3.1 CURRENT RATIO 38
3.2 QUICK RATIO 39
3.3 NET FIANACIAL STATEMENT RATIO 40
3.4 CASH POSITION RATIO 41
3.5 ABSOLUTE RATIO 42
3.6 DEBT EQUITY RATIO 43
3.7 TOTAL ASSET RATIO 44
4. OVERALL LIQUIDITY POSITION 45
5. Annexure 50-55

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 INTRODUCTION

Financial statements represent merely the compilation of silent heaps of figures. The
financial statements are not an ends in themselves but they are means only. The significance
of financial statements lies not in their preparation but in their analysis and interpretation.
Analysis and interpretation provide tongue to these figures. Analysis of financial
statements is a systematic process of critical evolution of the financial information given
in financial statements so that this information may be understood properly. A total
reliance on what the financial statements reveal on their face may not give true picture.
Sometimes more is required to find out real truth and for this purpose these statements are
scrutinized. for the purpose of analysis individual items are studied, their relationship with
other relevant figures is established, the data is sometimes rearranged to have better
understanding of the information with the help of various techniques or tools like fund flow
statement, cash flow statement, ratio analysis, etc.

This report has been prepared with in overall objective of measuring the liquidity position
and performance of THDC ltd.

To be aware of firms position different parties concerned with the organization after go for
various type of analysis. One of them being financial analysis, which is done to know about
the present performance of the firm in which they are either going to invest or to business
with. The responsibility of the management is to look after the efficient utilization of
resources. To know the overall sound financial position of the organization there is a
requirement to have a detailed report or probably know each and every aspect of the financial
position which may be liquidity, activity, profitability.

Based upon their wide range of requirement the general trend is to going for financial ratio
analysis. It is also considered to be the most effective one i.e. capable of giving more detailed
and accurate information than any other type of financial analysis.

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Financial ratio analysis is based upon various financial ratios which are calculated from the
data provided in company’s balance sheet and profits & loss account. As per I.M. Panday,
‘Financial ratio is the relationship between two accounting figure expressed mathematically.’
Salient features of this project:

1. The subject matter has been arranged and systematized according to prescribed
format of report writing.
2. The language and style of the presentation are very simple.
3. Subject matter has been divided into various heading and sub-headings so as to give a
flow in studying.
4. Both theoretical and numerical aspects of the subject have been given due importance.
5. All the necessary notes and schedules have also been given to clarify the working of
solution.

1. BACKGROUND AND CONTEXT

1.THDC, a Joint Venture Corporation of the Govt. of India and Govt. of U.P., was
incorporated as a Limited Company under the Companies Act,1956, in July’88, to develop,
operate and maintain the Tehri Hydro Power Complex and other Hydro Projects. The cost of
the Project is being shared in the ratio of 75:25 (equity portion) by Govt. of India & Govt. of
U.P.

2.The Corporation has an authorised share capital of Rs.4000 cr.

3.THDC is presently implementing theTehri Hydro Power Complex (2400 MW), on the river
Bhagirathi, comprising of Tehri Dam & Hydro Power Plant (HPP) (1000 MW), Koteshwar
Hydro Electric Project (HEP) (400 MW) and Tehri Pumped Storage Plant (PSP) (1000 MW).
4.The Corporation is also entrusted with the 444 MW VishnugadPipalkoti Project on River
Alaknanda, Kishau Dam & HPP (600 MW) on River Tons(tributary of Yamuna, and 6 other
Hydro Projects in Uttaranchal, totaling to 695 MW.

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 1.2) SCOPE

1.To provide information about a companies performance, financial position and chages in
financial position that are useful to wide range of users in making economic decisions.
2.Evaluating a merger and acquisition .
3.Determiing credit worthiness of company.
4.Extending credit to a customers.

OBJECTIVES OF THE STUTY

Financial statements are the indicators of the economic wealth and growth of any firm. The
Balance Sheet and Income Statement shows the net results of the operation of the firm during a
particular period, but on the basis of individual statement one cannot take any decision.

1.To study the Profitability trend analysis of THDC in terms of profitability.

2.To study the stability of the THDC in terms of their Capital structure.
3.To compare the financial statements of THDC.
4.To study the individual composition of assets and liabilities over a period of time.

1.3 Achievements
1. This project helped me in understanding the financial statements and major ratios of thdc .
2. This project has given me an understanding of the stability and profitability of company.
3. I understood how the assets and liabilities of various years changes and the impacts of those
changes in the FINANCIAL STATEMENTS of company.
4.This internship project also helped me in enhancing my financial management of company and
presentational skill.

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 1.4) Overview of Dissertation

ANALYSIS OF FINANCIAL STATEMENTS (AFS)

AFS refers to the process of the critical examination of the financial information contained in the
financial statements in order to understand and make decisions regarding the operations of the
firm. The AFS is basically a study of the relationship among various financial facts and figures
as given in a set of financial statements. The basic financial statements i.e. the BS and the IS
contain a whole lot of historical data. The complex figures as given in these financial statements
are dissected/broken up into simple and valuables elements and significant relationships are
established between the elements of the same statement or different financial statements.

OBJECTIVES OFTHE AFS

1.To assess the present profitability and operating efficiency of the firm as a whole as well as
for its different departments.
2.To find out the relative importance of different components of the financial position of the
firm.
3.To identify the reasons for the change in the profitability/financial position of the firm.

STATEMENT OF CHANGE IN FINANCIAL POSITION (SCFP)

The BS and the IS are two common financial statements and are also known as traditional
financial statements. The BS depicts the financial position at a point of time and the IS shows
the net results of operations of the firm during a particular period. But both these financial
statements fail to provide information regarded the change in financial position over the
period. For this purpose another financial statements may be prepared and it is known as
SCFP. The SCFP shows how the firms generated the funds during the period and how these
funds were utilized.

When the SCFP is prepared on the FINANCIAL STATEMENTS basis, it is also termed as
the Funds flow statement. The SCFP prepared on the cash basis is also known as the Cash
flow statement.

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TECHNIQUES/TOOLS OF THE AFS

The following are some of the common techniques of the AFS:

a. Comparative financial statements.

b. Common-size financial statements.
c. Trend Percentages analysis, and
d. Ratio Analysis.

COMPARATIVE FINANCIAL STATEMENTS (CFS)

In CFS, two of more BS and/or the IS of a firm are presented simultaneously in columnar
form. The CFS helps a financial analyst in horizontal analysis of the firm and in establishing
operation and positional trend of the firm. The CFS may be prepared to show

1. The absolute amount of different items in monetary terms.

2. The amount of periodic changes in monetary terms,
3. The percentages of periodic changes to reveal the proportionate changes.

The CFS can be prepared for both the BS and the IS.

COMPARATIVE INCOME STATEMENT (CIS)

A CIS shows the figures of different items of the ISs of the firm in absolute terms, the
absolute changes from one period to another and it desired the changes in percentage form.
From the CIS, a financial analyst can quickly ascertain whether sales are increasing of
decreasing and by how much amount or by how much percentage. Similarly, analysis can be
made for other items also.

COMPARATIVE BALANCE SHEET (CBS)

The CBS shows the different assets and liabilities of the firm on the firm on different dates to
make comparisons of absolute balances and also of changes if any, from one date to another.

COMMON SIZE STATEMENT (CSS)

The CSS represents the relationship of different items of a financial statement with some
common item by expressing each item as a percentage of the common item. In common size
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balance sheet, each item of the Balance Sheet is stated as a percentage of the total of the
balance Sheet. Similarly in common size income statement, each item is stated as percentage
of the Net Sales. The percentages for different items are computed by dividing the absolute
amount of that item by the common base (i.e., the Balance Sheet Total of the Net Sales as the
case may be) and then multiplying by 100. The percentages so calculated can be easily
compared with the corresponding percentages in some other period. Thus, the CSS is useful
not only in intra firm comparisons over a series of different year but also in making inter firm
comparisons for the same year or for several years.

TREND PERCENTAGE ANALYSIS (TPA)

The TPA is a technique of studying several financial statements over a series of years. In
TPA, the trend percentages are calculated for each item by taking the figure of that item for
some base year as 100. So, the trend percentage is the percentage relationship which each
item of different years bears to the same item in the base year, any year may be taken as the
base year, but generally the starting/initial year is taken as the base year. So, each item for
base year is taken as 100 and then the same item for other years is expressed as a percentage
of the base year

RATIO ANALYSIS

The RA has emerged as the principal technique of the AFS. A ratio is a relationship
expressed in mathematical terms between two individual or groups of figures connected with
each other in some logical manner. The RA is based on the premise that a single accounting
figure by itself may not communicate any meaningful information but when expressed as a
relative to some other figure, it may definitely give some significant information. The
relationship between two or more accounting figures/groups is called a financial ratio. A
financial ratio helps to summarize a large mass of financial data into a concise form and to
make meaningful interpretations and conclusions about the performance and positions of a
firm.

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STEPS IN RATIO ANALYSIS:

1.Calculation of a ratio.
2.Comparing the ratio with some predetermined standard. The standard ratio may be the past
ratio of the same firm or industry’s average ratio or a projected ratio of the most successful
firm in the industry.

TYPES OF COMPARISION: The ratios can be compared in two different ways.

1.Cross Section Analysis: One way of comparing the ratio is to compare with the ratio or
ratios of some other selected firm in the same industry at the same point of time. The cross
section analysis helps the analyst helps the analyst to find out as to how a particular firm has
performed in relations to its competitors.
2.Time-Series Analysis: The analysis is called the Time-Series Analysis when the
performance of the firm is evaluated over a period of time. The information generated the
time series analysis can be immense help to the firm to make planning to the future
operations. The Time-Series can also helps the firm to assess whether the firm is approaching
long term goals or not. The time series analysis looks for i) Important trends in financial
performances, ii) Shift in trend over the years, and iii) Significant deviations if any from the
other set of data.

3. Combined Analysis: If the Cross-Section and Time Series Analysis, both are combined
together to study the behavior and pattern of ratios, then meaningful and comprehensive
evaluation of the performance of the firm can definitely be made.A trend of ratios of a firm
compared with the trend of the ratios of the standard firm can give good results. For example,
the ratio of operating expenses to Net Sales for a firm, may be higher than the industry
average however, over the years it has been declining for the firm, whereas the industry
average has not shown any significant changes. This can be presented through the above
figure.The combined analysis as depicted is the above figure clearly shows that the ratio of
the firm is above the industry average, but it is decreasing over the years and is approaching
the industry average.

TYPES OF RATIOS

1.The Liquidity Ratios.

2.The Activity Ratios.
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3.The Leverage Ratios.
4.The Profitability Ratios.

1.THE LIQUIDITY RATIOS

The Liquidity Ratios study the firm’s short term solvency and its ability to pay off the
liabilities. Some of the common liquidity ratios are:

1. Current Ratio: It is the most common and popular measure of studying the liquidity of a
firm. It is calculated as follows:

Current ratio= Current Assets/Current Liabilities

Note: A current ratio of 2 times of 2:1 is considered to be satisfactory

2.Quick Ratio: It is called the Acid Test Ratio or Liquid Ratio. This ratio establishes the
relationship between quick/liquid current assets and the current liabilities.
Quick Ratio=Quick Asset /Quick Liabilities

3. Absolute Liquid Ratio: This Ratio is also known as Super quick Ratio of Cash Ratio of
Cash Reservoir Ratio. This ratio considers only the absolute liquidity available with the firm.
Cash Ratio= Cash in hand and in bank+ Marketable sequrities /Total current liabilities

2.THE ACTIVITY RATIOS

The Activity Ratios are also called the Turn Over Ratios or Performance Ratios. Some of the
important activity ratios are as follows:
1. Inventory Turnover Ratio: This ratio, also known as stock turn over ratio establishes
the relationship between the cost of goods sold during the year and average inventory
held during the year by the firm. It is calculated as follows:
Inventory Turnover Ratio=Cost of goods sold/Average inventory

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 2. Receivables Turnover Ratio: The R/T Ratio attempts to throw light on the collection
and credit policies of the firm.
Receivables Turnover Ratio=Annual Net Credit Sale/Average Receivables

3. Payables Turnover Ratio: It compares the annual credit purchases with the average
payables as follows:
Payables Turnover Ratio=Annual Net Credit Purchase/Average payables

4. FINANCIAL STATEMENTS Turnover Ratio: The WCT Ratio studies the velocity
of utilization of the FINANCIAL STATEMENTS of the firm during a year.

WCT Ratio=Annual Net Sales/Average FINANCIAL STATEMENTS

3.LEVERAGE RATIOS
The financial position of the firm can be studied and analyzed in two perspective i.e., the
short term financial position and the long term financial position. Some of the important
leverage ratios are as follows:
1. Debt Equity Ratio: The DE Ratio is the basic and the most common measure of
studying the indebtedness of the firm.
Debt-Equity Ratio=Debt/Share holders fund

2. Total Debt Ratio: The TD Ratio compares the total debt(long term as well as short
term) with the total assets. It is computed as follows:

Total Debt Ratio=Total Debts/Total Assets

3. Interest Coverage Ratios: It measures the ability of the firm to pay the fixed interest
liability. The IC Ratio may be calculated as follows:

IC Ratio=EBIT/Interest

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 4. Preference Dividend Coverage Ratio: This Ratio attempts to measure the ability of
the firm to pay the fixed preference dividend and tells as to how secure the preference
dividend is in relation to the earning power of the firm.

PC Ratio=Profit After Tax/Preference Dividend

4.PROFITABILITY RATIOS
The last group of financial ratios and probably the most often used group of ratios is the
profitability ratios. The P Ratios measures the profitability of the operational efficiency of
the firm.

1. Gross Profit Ratio: It is calculated by comparing the Gross Profit of the firm with the
Net Sales as follows:
GP Ratio=Gross Profit/Net Sales x 100

2. Operating Profit Ratio: The operating profit refers to the pure operating profit of the
firm.
OP Ratio=EBIT/Net Sales X 100

3. Net Profit Ratio: The NP Ratio Establishes the relationship between the net profit of
the firm and the net sales and may be calculated as follows:
NP Ratio=Profit(After Tax)/Net Sales X 100

4. Earningsper Share: The Profitability of the firm can also be measured in terms of
number of equity shares. This is known as EPS which is derived by dividing the PAT
by the number of equity shares. So,

Earning Per Share=PAT-Preference Dividend/Number of Equity Shares

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Chapter 2) PROFILE OF ORGANISATION

THDC India Limited(formerly Tehri hydro development corporation limited), is a company

jointly owned by government of India and government of Uttaar Pradesh.

It was incorporated in july88 to develop, operate and maintain the Tehri hydro power
complex and other hydro projects. THDC India Limited is a Mini Ratna Category-l
Enterprise.

At present the company has four power plants in operation namely TEHRI DAM (1000MW),
KOTESHWAR DAM(400MW), 50MW wind project in Patan (Gujarat) and 63MW Wind
project in Dwarka(Gujarat). In addition, more than 10 projects are under various stages of
construction. Tehri PSP (1000MW) and Vishnugad- Pipalkoti HEP (444MW) are in advantce
stage and are expected to commission by 2018. THDCIL has also ventured in to thermal
power generation with its 1320MW Thermal Power Project coming up near Dussehera village
which is near to Khurja, District Bulandshahr, and Uttar Pradesh.

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The Memorandum and Articles of Association of the Company has been modified to reflect
the current business reality of projects outside Bhagirathi Valley. The object clause has been
amended to incorporate development of conventional/ non –conventional/ Renewable
sources of Energy and River Valley projects.

The corporation has grown into a multi –project organization, with Projects spread over
various states as well as neighboring country, Bhutan.

THDCIL has obtained ISO 9001:2008 certificate of quality management system, Iso 14001-
2004 Certification ( Environment Management System) and Iso 18001:2007 ( Occupational
Health and Safety Management System) certification for corporation office , Rishikesh, Tehri
HPP, Tehri PSP, koteshwar HEP and Vishnugad pipalkoti.

2.1 HISTORICAL BACKGROUND OF THDC

1.The Tehri Dam & Hydro Electric Project had initially been accorded Investment
Clearance by the Planning Commission in June, 1972 for implementation by the
Government of U.P., with an installed generating capacity of 600 MW. The State
Government commenced the construction of the Project in 1978. Subsequently, in 1983,
the proposed installed generating capacity of the Project was increased by the State
Government to 1000 MW.
2.In view of the shortage of funds for implementation of the Project in the State sector, it
was decided in Nov.,1986 to implement the Tehri project as a Joint Venture of the Govt.
of India and Govt. of U.P. through financial and technical assistance from erstwhile
USSR.
3.In Nov.,1986, an agreement on economic and technical co-operation between the
Govt. of India and Govt. of USSR was signed, which internally included execution of the
2400 MW Tehri Hydro Power Complex comprising 1000 MW Tehri Dam & Hydro
Power Plant, 400 MW Koteshwar Dam & Hydro Power
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 Plant and 1000 MW Tehri Pumped Storage Plant. This agreement envisaged
financing in the form of credit amounting to 1000 million Roubles from USSR.
4.The Government had also approved seeking the technical and financial assistance from
the then USSR for implementing the Tehri Power Complex. However, with the
disintegration of USSR, the financial assistance from USSR was not available. It was
accordingly decided to initially implement Tehri Dam &HPP(1000 MW), as Stage-I of
Tehri Power Complex(2400 MW) and Associated Transmission System. Other
components of the Tehri Power Complex, viz., Koteshwar Project, and the Pumped
Storage Plant, were envisaged to be taken up at a later stage.
5.The Government approved the implementation of Tehri Dam and HPP Stage-I (1000
MW) in March,1994, along with the essential works of Pumped Storage Plant and
committed works of Koteshwar HEP.
6.The Koteshwar HEP (400 MW) was approved for implementation by the Government
in April’2000.

2.2Vision

1.A World class energy entity with commitment to environment and social values.
2.A major global player in power sector, providing quality , affordable and sustainable power.
3.With commitment to environment, ecology and social values.
4.Create work ethos of growth professionalism and achievement of excellence.

2.3) MISSION

1.To achieve performance excellence by fostering work ethos of learning and innovation.
2.To understand rehabilitation and resettlement of project affected persons with human face .
3.To adopt state of the art technologies.
4.To build sustainable value based relationship with stakeholders through mutual trust.

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2.4) SWOT ANALYSIS OF THE COMPANY

STRENGTH (S): -

1.Low cost producer of quality equipment due to cheap labor and fully depreciated plants.
2.Flexible manufacturing set up.
3. Entry barrier due to high replacement cost of its manufacturing facilities.

WEAKNESSES (W): -

1.High FINANCIAL STATEMENTS requirement due to its exposure to cash starved

SEBs (State electricity boards) and High WIP.
2.Inability to provide project financing.

OPPORTUNITIES (O): -
1.High-expected growth in power sectors (7000 MW/p.a. needs to be added)
2.High growth forecast in India’s index of industrial production would increase demand
for industrial equipment such as motors and compressors.

THREATS (T):-
1.Technical suppliers are becoming competitors with the opening up of the Indian
economy.
2.Fall in global power equipment prices can effect profitability.

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BOARD OF DIRECTOR

Shri D.V.Sing

Chairman and Managing director

Shri Rajpal

Economic Adviser, Mop, Govt. Nominee Director

Shri Sridhar Patra

Director(Finance)

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 THDC PROJECTS

State Installed Capacity(MW) Total Capacity

1 JADHG Uttarakhand 1 * 50 50

2 VISHNUGAD PIPALKOTI Uttarakhand 4 * 111 444

3 KISHAU DAM Uttarakhand 6 * 100 600

4 JELAM TAMAK Uttarakhand 2 * 30 60

5 MALARI JELAM Uttarakhand 2 * 27.5 55

6 GOHAN TAL Uttarakhand 2 * 30 60

7 KARMOLI Uttarakhand 2 * 70 140

8 BOKANG BALING Uttarakhand 3 * 110 330

Total 1739

PROJECT READY FOR COMPLETION

S Installed Total Capacity

Project State
No. Capacity(MW) (MW)

1 JADHGANGA Uttarakhand 1 * 50 50

VISHNUGAD
2 Uttarakhand 4 * 111 444
PIPALKOTI

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 Total 494

BENEFITS:

The main benefits from the Project when completed would be :-

1.Peaking Power 400 MW

2.Annual Energy generation 1234 MU (90% dependable year)
3.Re-regulation of water releases from Tehri Reservoir for Irrigation purposes.
4.Koteshwar Reservoir will function as the pre-requisite lower reservoir for Tehri PSP.

ECOLOGY AND ENVIRONMENT: -

Adequate measures for forestation, soil conservation and preservation of ecology and
environment are being taken up. The project provides for forestation of 36000 ha of land in
catchments area. Compensatory forestation in 4500 ha of land with intensity as 2000 trees per ha
is also being provided in caliper and Jhansi districts and integrated catchments area development
plan for Ganga valley costing Rs. 3050 million has been drawn for soil conservation and
preservation of eco-system encompassing disciplines of forestation, soil conservation,
horticulture, minor irrigation and animal husbandry. Tehri dam complex will share the cost of
this scheme to the extent of
Rs. 320 million.

SALIENT FEATURES OF TEHRI DAM PROJECT: -

1.A 260.5 meters high earth and rock fill dam, across the river Bhagirathi at tehri just after its
confluence with river Bhilananga for creation a storage reservoir to generate power and provide
irrigation facilities.

2.A under ground powerhouse of 1000MW (4*250mw) capacity with convention turbine
generating sets under stage-I at tehri.

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3.Second under ground power of 1000MW (4*250mw) capacity with reversible pump turbine sets
under stage-II at tehri (pump storage plant).

4.A 103.3-meter high concrete dam (which will provide a balancing reservoir) with a surface
powerhouse of 400MW (4*100mw) capacity at Koteshwar, 12 km down stream of tehri dam
across the river Bhagirathi.

BENEFITS FROM THE PROJECT: -

Implementation of tehri hydropower complex has been conceived to meet the rapidly increasing
power demand in the northern region, particularly peaking requirements.
It is envisaged that from the tehri stage-I project itself, 3568 million units of energy would
become available annually which would help not only in meeting the peak time requirements of
power more efficiently. But would also add flexibility and reliability to the power system
operation. From the power generated at tehri, substantial of power would be able to the of Uttar
Pradesh benefits from the proposed tehri dam and hydro power project further include additional
irrigation to the extent of 2.7 lakh ha in Uttar Pradesh and stabilization in another 6.04 lakh ha.
The project will also provide 300 cusses of additional drinking water for Delhi. Which will meet
the requirements of about 40 lakh people. It would also provide 200 cusses of drinking water for
meeting requirements of the population in Uttar Pradesh.
Apart from these benefits, the project would also led to and overall integrated development of
the tehrigarhwal region, with improved communication facilities, industrialization, tourism,
further development of horticulture fisheries, forestation of the region and improved of highly
degraded catchments area in the surrounding hills. The project also involves development of new
tehri town (NTT) with all modern infrastructure facilities for town. NTT is expected to
ultimately develop as a tourist center, much to the advantage of the local population.

The rationale of the tehri hydro project, therefore, needs to be seen in terms country’s acute
power shortage as also its comparative cost advantages. The fact is that the country today faces a
31.9 percent loss in industrial production. In other words, the tehri hydro project truly seeks to
make an optimum use of abundant water resources of the Himalayas to provide not only power
and irrigation, but also strives to quench the thirst of millions in the national capital of New
Delhi, besides giving a fill up to regional development.

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Besides above benefits, the project will result in following additional benefits:-

1. Creation of vast reservoir shall bestow certain advantages to the water birds and aquatic
fauna.
2. 2.42 square kilometers lakh will be available for development of pisi-culture as has been
done at bark and pong.
3. 3.Potential for development of a very congenial tourist complex in the region having
great recreational value and tourist potential including additional generation of revenue.
4. 4.Regeneration of the environment due to investment from the project on various eco
balancing system.
5.Additional 300 cusses of water will be available to city of New Delhi for domestic
consumption.
6.Additional forest produce will be available because of forestation and soil consumption.
7.Various development plans will improve the communication and social life in the region.
With all modern facilities being created at New Tehri Town, there will be general up liftmen of
the economic end the social life of the local people.

THDC is poised to improve the quality of life of the people and will contribute to the green
revolution in THDC Genetic plains. Tehri project will be the savior of the region. What bark
gave to Punjab; Tehri will give to U.P. &Uttarakhand. In particular and the nation in general.

26
CHAPTER – 3) REVIEW OF LITERATURE

Many researchers have studied financial ratios as a part of FINANCIAL STATEMENTS

Management; however, very few of them have discussed the FINANCIAL STATEMENTS
Policies in specific. Some earlier work by Gupta and Heffner (1972) examined the
differences in financial ratio averages between industries. TheConclusion of both the studies
was that differences do exist in mean profitability, Activity, leverage and liquidity ratios
amongst industry groups. Pinches et al. (1973) used factor analysis to develop seven
classifications of ratios, and found that the classifications were stable over the 1951-1969 time
periods. In a regional study, Pandey and Parera (1997) provided an empirical evidence of
FINANCIAL STATEMENTS management policies and practices of the private sector
manufacturing companies in Sri Lanka. The information and data for the study were gathered
through questionnaires and interviews with chief financial officers of a sample of
manufacturing companies listed on the Colombo Stock Exchange. They found that most
companies in Sri Lanka have informal FINANCIAL STATEMENTS policy and company
size has an influence on the overall FINANCIAL STATEMENTS policy (formal or informal)
and approach (conservative, moderate or aggressive). Moreover, company profitability has
an influence on the methods of FINANCIAL STATEMENTS planning and control.

Chu et al. (1991) analyzed the hospital sectors to observe the differences of financial ratios
groups between hospital sectors and industrial firms sectors. Their study concluded that
financial ratios groups were significantly different from those of industrial firms’ ratios as
well these ratios were relatively stable over the five years period. A significance relationship
for about half of industries studied indicated that results might vary from industry to industry.
Another aspect of FINANCIAL STATEMENTS management has been analyzed by
Lamberson (1995) who studied how small firms respond to changes in economic activities by
changing their FINANCIAL STATEMENTS positions and level of current assets and
liabilities. Current ratio, current assets to total assets ratio and inventory to total assets ratio
were used as measure of FINANCIAL STATEMENTS while index of annual average
coincident economic indicator was used as a measure of economic activity. Contrary to the
expectations, the study found that there is very small relationship between charges in
economic conditions and changes in FINANCIAL STATEMENTS. However, Weinraub and
27
Visscher (1998) have discussed the issue of aggressive and conservative FINANCIAL
STATEMENTS management policies by using quarterly data for a period of 1984 to 1993 of
US firms. Their study looked at ten diverse industry groups to examine the relative
relationship between their aggressive/conservative FINANCIAL STATEMENTS policies.
The authors have concluded that the industries had distinctive and significantly different
FINANCIAL STATEMENTS management policies. Moreover, the relative nature of the
FINANCIAL STATEMENTS management policies exhibited remarkable stability over the
ten-year study period. The study also showed a high and significant negative correlation
between industry asset and liability policies and found that when relatively aggressive
FINANCIAL STATEMENTS asset policies are followed they are balanced by relatively
conservative FINANCIAL STATEMENTS financial policies.

Sathyamoorthi (2002) focused on good corporate governance and in turn effective

management of business assets. He observed that more emphasis is given to investment in
fixed assets both in management area and research. However, effective management
FINANCIAL STATEMENTS has been receiving little attention and yielding more
significant results. He analyzed selected Co-operatives in Botswana for a period of 1993-1997
and concluded that an aggressive approach has been followed by these firms during all the
four years of study. Filbeck and Krueger (2005) highlighted the importance of efficient
FINANCIAL STATEMENTS management by analyzing the FINANCIAL STATEMENTS
management policies of 32 non-financial industries in USA. According to their findings
significant differences exist between industries in FINANCIAL STATEMENTS practices
over time.

28
CHAPTER 4) RESEARCH METHODOLOGY

The research was conducted over a period of 60 Days based on the financial parameter. The
research methodology adopted for the proposed study includes the following:-

Research Design :- In the present study descriptive research design is adopted, As the
purpose of the research is to describe the Financial Statements and Financial Ratios of THDC
Ltd.

Data Type :- The present study is based on secondary data.

Data Source :- The data was collected through annual reports, financial statements, some
books , etc.

Data Analysis Tools :- Data is analyzed by using MS- Word, MS-Excel.

Data Analysis Techniques: Graphic presentation tehniques, Ratio analysis, percentage

analysis and trend analysis were used to analyze the data.

4.2) SOURCES OF DATA

The research study is based on secondary data , means data that are already available i.e, the
data which have been already collected and analysed by someone else.

Secondary data are used fopr the study of ratio analysis of company.To collect the data I
have refer- Company annual reports, annual magazines, last two years balance sheet and cash
flow statements.

Most of the calculation are made on the financial statements of the company provided
statements.

Referring standard texts and referred books collected some of the information regarding
therotical aspects.
29
Method to assess the performance of the company method of observation of the work in
fianance department in followed.

4.3) LIMITATIONS OF THE STUDY

1.Non-monetary aspects are not considered making the results unreliable.

2.Different accounting procedures may make results misleading.
3.In spite of precautions taken there are certain procedural and technical limitations.
4.Accounting concepts and conventions cause serious limitation to financial analysis.

30
 CHAPTER 5 : DATA ANALYSIS

TWO YEAR COMMONSIZE BALANCE SHEET FOR THE YEAR ENDING

2016&2017. Amount in 000’s

TEHRI HYDRO DEVELOPMENT CORPORATION LTD.

PARTICULARS ABSOLUTE
AMOUNT PERCENTAGE OF
TOTAL

31ST 31ST 31ST 31ST

MARCH MARCH MARCH MARCH
2016 2017 2016 2017

A. Equity & liabilities

(i)Shareholders funds 355888 359888 26.2% 24.3%
 Share capital
505517 533651 37.30% 36.03%
 Others equity
B. Non current liabilities

(i)Financial liabilities 349792 404185 25.8% 27.2%

 Long term borrowings 498 934 0.03% 0.06%

 Non current financial
liabilities
164 220 0.01% 0.01%
 Other non current
financial liability 21271 21271 1.56% 1.43%

(ii)Other non currentliablity 32733 38970 2.4% 2.6%

(iii)Long term provisions 3677 38724 0.27% 2.6%

31
C.Current liabilities 49 41 0.003% 0.002%

(i) financial liabilities 61376 68815 4.5% 4.6%

 Short term borrowings 3587 3749 0.26% 0.25%

20583 10347 1.51% 0.69%

 Trade payables
 Other current financial liability
ii. Other current liability
iii. Short term
provisions

TOTAL 1355135 1480795 100 100

B. Assets

(i)Non current assets 752398 780642 55.5% 52.7%

 Plant & equipment 209366 303496 17.6% 20.4%

 Capital work in progress
62 45 0.004% 0.003%

 Other intangible assets 33 33 0.002% 0.002%

 Tangible assets
4702 4694 0.3% 0.3%
 Financial assets
 long term loan 2177 1881 0.1% 0.1%
 other non current assets
62655 70941 4.6% 4.7%

 Deferred tax 61822 91914 4.5% 6.2%

 Other non current
assets
3190 3264 0.2% 0.2%
(ii) current assets

 Inventories 207198 173228 15.2% 11.69%

32
  Financial assets 7558 6707 0.55% 0.45%

37 25037 0.002% 1.690%

 Trade receivables
 Cash & cash 4421 4305 0.32% 0.29%
equivalent
204 179 0.015% 0.01%

 Bank balance 4039 8107 0.298% 0.54%

5573 6322 0.41% 0.42%

 Short term loans
 Other current
financial assets

 Current tax
assets
 Other current
assets

TOTAL 1355135 1480795 100 100

INTREPETATION:

The common size statement represent different items of a financial statements with some
common item by expressing each bitem as a percentage of common items. In the common
size statements there has been taken the two year balance sheet of the year ending 2016 and
2017 . Then the % of individual items are calculated on the basis of total assets.

As it can be seen that the share capital has been increased in the year 2017 as it can be
compared with the year 2016.Percentage of work in progress has increase; it can say that
company have started various new projects.

33
 TEHRI HYDRO DEVELOPMENT CORPORATION LTD.

TWO YEAR COMPARATIVE BALANCE SHEET FOR THE YEAR ENDING

2016&2017 Amount in 000’s

Particulars Schedu 31/03/201 31/03/201 Increase/decre %

le 6 7 ase in 2017 change
in 2017

A. NON CURRENT
ASSETS
752398 780642 28244 3.7%
a. PROPERTY
, PLANT AND 239066 303496 64430 26.9%
EQUIPMENT
b. Capital work
62 45 (17) (27.4)
in progress
%
c. Other 33 35 -
intangible assets -
d. Intangible
4702 4694 (8) (0.1)
under
development
e. Fixed Assets 2177 1881 (296) (13.5)
i. Long %
term loans
13.2%
ii. Other 62655 70941 8286
non current 48.6%
61822 91914 30092
assets
f. Deferred tax
11.6%
assets 1122915 1253646 130731
g. Other non current 26.2%
429482 105473 (37475)
assets

7.3%
TOTAL
34
 1265863 1359119 93256
B. FINANCIAL 15.1%
STATEMENTS
404458 465580 61122
(C.A-C.L)
3.7%
C. Capital employed
861405 893539 32134
(A+B)

C. Less :-
Non Current liabilities
D. Shareholders fund:-
Represented by-
 Equity
share 1.1%
capital
355888 359888 4000 5.5%
 Other
equity 505517 533651 28134 3.7%
E. Shareholders fund
861405 893539 32134

INTERPRETATION: The current assets of the company have been increased by Rs. 223885
in the year 2017 as compared to 2016 and current liability decreased which reveals that the
liquidity position of company is good.

Share capital also has increased by 533651 with regards to previous year which means that
maybe the company is not giving dividend to shareholders.

35
 RATIOS:

1. CURRENT RATIO:

This ratio measures the solvency of the company in the short term .current assets are those
assets which can be converted in to the cash with in a year current liability and provision are
those liability that are payable with in a year .

Year 2016 2017

Current Assets 232220 227149

Current Liabilities 89272 121676

Current Ratio 2.60 1.866

Interpretation:

After calculation we have observed that new year current ratio is 1.866:1 which is less
comparison to last year 2016 ratio which was 2.60 shows that liquidity position in not good.
So can concluded that margin of safety for the creditor is low for the current year. The ideal
ratio is 2; 1.

36
2. QUICK RATIO:
Quick ratio is a more rigorous test of liquidity than current ratio. Quick ratio may be defined
as the relationship between quick/liquid assets and current or liquid liabilities. An asset is
said to be liquid if it can be converted into cash with a short period without loss of value. It
measures the firms’ capacity to pay off current obligations immediately

Year 2016 2017

Quick Assets 229030 223885

Current Liabilities 89272 121676

Quick Ratio 2.56 1.84

INTERPRETATION: The overall quick ratio of the THDC is decreased in 2017

comparison to 2016 i.e. 1.84, and 2.56 because current assets decreased and current liabilities
increased. But we know the satisfactory ratio is 1; 1 which shows the liquidity ratio is little
satisfactory. Thus need is to improving the stability of inventories i.e. making them more
easily and efficiently convertible in to cash or we can say that investment in inventory must
be made which care and effort must be there to maintain the requisite amount of inventories,
However it again dependent on seasonally fluctuation in both sales and availability of the
row material. Thus due consideration must be given to these factors before deciding for
future investment in inventory.
37
3. NET FINANCIAL STATEMENTS RATIO

The difference between current assets and current liabilities excluding short term borrowing
is called net FINANCIAL STATEMENTS or net current assets. NWC is some times used as
a measure of the firm liquidity. It is considered that between two firms, the one having the
larger NWC has the greater ability to meet its current obligations, it is calculated by dividing
net FINANCIAL STATEMENTS by net assets.

Year 2016 2017

Net FINANCIAL STATEMENTS 139271 66749

Net assets 950677 1050215

Net working current ratio 0.146 0.06

INTERPRETATION:

The overall FINANCIAL STATEMENTS of THDC is decreased in 2017 comparison to 2016.

But still net FINANCIAL STATEMENTS of THDC is not sufficient to get the right liquidity
of the funds.

38
4. CASH POSITION RATIO

YEAR 2016 2017

Cash &marketable security 7558 6707

Current liability 89272 121676

Cash position ratio 0.08 0.055

INTERPRETATION:

The cash position ratio of the THDC is decreased in the financial year 2017 because liability
is increased. Which reflect insufficient amount of cash available with the company to meets
its current liabilities which indicate credibility declines, so whether company should increase
current assets or decline current liability to get its credibility or to maintain cash liquidity
position.

39
(5)ABSOLUTE LIQUIDRATIO

Although receivables, debtors and bills receivable are generally more liquid than inventories,
yet there may be doubts regarding their realization into cash immediately or in time. So
absolute liquid ratio should be calculated together with current ratio and acid test ratio so as
to exclude even receivables from the current assets and find out the absolute liquid assets.
Absolute Liquid Assets includes :

Absolute liquid ratio= Absolute liquid assets/ Absolute liquid liabilities

Absolute liquid assets= cash & bank balances

(Rupees in Crore)

Year 2016 2017

Absolute Liquid Assets 7595 31744

Current Liabilities 89272 121676

Absolute Liquid Ratio 0.085 0.260

INTERPRETATION:

These ratio shows that company carries a small amount of cash. But there is nothing to be
worried about the lack of cash because company has reserve, borrowing power & long term
investment. In India, firms have credit limits sanctioned from banks and can easily draw cash.

40
 6. Debt to Equity Ratio

Debt-Equity Ratio is computed to ascertain long – term financial position of the

enterprise. This ratio expresses a relationship between(debts)(external borrowings or
equities) and the equity (internal equities).

Debt equity ratio= Total debt / Shareholders fund

Year 2016 2017

Total Debt 353469 442909

Shareholders Fund 861405 893539

Debt to Equity 0.410 0.49

INTERPRETATION:

Here in both the year, 2016 and 2017 the companies debt to equity ratio is less than 1, i.e,0.41
and 0.49 which can be referred that it not utilizing the cheaper source of finance, it should
improve the solvency of enterprise but contradict management policy.

41
 7. Total Assets to debt ratio
It establishes a relationship between total assets and long term borrowing or debt. It
measures the extent to which debt is covered by the assets. A higher ratio meanas loans
to enterprises.

Total Assets to debt ratio = Total Assets / long term debt

Year 2016 2017

Total assets 1355135 1480795

Debts 349792 404185

Total assets to Debt 3.87 3.66

INTERPRETATION:

In both the years the total value of assets to debt ratio is 3.87 and 3.66 it will give better safety
of margin to the creditors of the company. Higher the ratio, better safety margin to the
creditors.

42
OVER ALL LIQUIDITY POSITION OF THE UNIT

Analysis the result obtained from various liquidity ratios we can say that the liquidity
position of the unit is satisfactory. However better analysis is possible by seeing the trend
the trend of various liquidity ratios shown in table.

Year 2016 2017

Current ratio ( 2:1) 2.60 1.866

Quick ratio ( 1:1) 2.56 1.84

Net FINANCIAL STATEMENTS ratio 0.14 0.06

Cash position ratio(5:1) 0.08 0.05

Absolute Liquid ratio(5:1) 0.085 0.260

Total assets to debt ratio 3.87 3.66

Debt to Equity Ratio(1.1) 0.41 0.49

INTERPRETATION:

The overall liquidity of the firm seems to be exhibit or reasonable stable trend and seems to be
bad. however analyzing stable trend and seem to be bad however analyzing the trends deeply we
can infer that the overall liquidity position has deteriorated but before deciding we which can be
very well know from the annual FINANCIAL STATEMENTS requirement and cash flow for the
year . this decoration can both favorable and unfavorable , much lies on the need of the cash to
meet current obligation if the need is less , trends shows not sound change of direction otherwise
note of valuation must be sounded against any further decoration , which can be otherwise
harmful for the credibility of the units.

43
CHAPTER 6) CONCLUSION

In the present study I have analyzed the working management THDCIndiaLtd. I found that
inventory is increasing which shows that company has sufficient stocks to meet up out
generation of the company. Inventory Turnover Ratio measures the velocity of conversion of
stock into sales.

The Inventory Turnover Ratio is decreasing which is not a good sign for the company. The
business firm has adequate internal control procedure commensurate with the size of the firm
and nature of its business for the purchase of stores, machinery, equipment and other assets
and with regards to sale of goods. From the comparative study of inventory turnover it is
clear that stock velocity indicates inefficient management of inventory during the year 2017.

So the company’s performance outlook continues to be positive and optimistic. .The

company remains confident of delivering of strong operating and financial performance.

6.1) Findings

The in-depth analysis and interpretation of financial statement of T.H.D.C. by using ratio
analysis as a tool following results are: -

1.As we know that ideal current ratio for any firm is 2:1. If we see the current ratio of
the company for last three years it has increased from 2016 to 2017. This depicts that
company’s liquidity position is sound. Its current assets are more than its current
liabilities.
2.A quick ratio is an indication that the firm is liquid and has the ability to meet its
current liabilities in time. The ideal quick ratio is 1:1. Company’s quick ratio is more
than ideal ratio. This shows company has no liquidity problem.
3.Inventory conversion period shows that how many days’ inventories take to convert
from raw material to finished goods. In the company inventory conversion period is
decreasing. This shows the efficiency of management to convert the inventory into
cash.

44
 4.Current liabilities shows company short term debts pay to outsiders. In 2017 the
current liabilities of the company increased. But still increase in current assets is more
than its current liabilities.
5.FINANCIAL STATEMENTS is required to finance day to day operations of a firm.
There should be an optimum level of FINANCIAL STATEMENTS. It should not be
too less or not too excess. In the company there is increase in FINANCIAL
STATEMENTS. The increase in FINANCIAL STATEMENTS arises because the
company has expanded its business.

6.2) SUGGESTION AND Recommendation

The in-depth analysis and interpretation of financial statement of T.H.D.C. by using ratio
analysis as a tool we finds that the liquidity position of the company is not so sound and good but
the financial position of the company is better than the liquidity position. So for improving the
liquidity position of the company I suggest following step company should take: -

1.The company should utilize its inventory control activities more efficiently.

2.The company should pay attention towards the proper and efficient utilization of
FINANCIAL STATEMENTS.
3.The company can reduce the time for purchase order. The buffer should be
maintained in case of emergency. Insurance should be covered especially fire in case
of transit journey also.
4.The funds of sale of energy are not receivable within schedule time from the
beneficiary. These official should liaison to the beneficiaries for early recovery of
long pending funds for better fund management.

6.3) FUTURE WORK

1.Diversification of THDCIL into wind energy, solar energy and thermal energy.
2.Deterioration in rock mass properties due to blasting operations in underground
excavations.
3.Dam safety inspection of THDCIL by USBR.
45
 4.Local seismological network around Tehri Region.
5.Spatial technology and Swat modeling approach for assessment of Hydropower
potential.
6.Projects under DPR preparation/ updating , survey and investigation.

6.4) SUMMARY

The summer training is an integrated part of MBA course. In this period of 2 MONTH come
to know about the people & how to solve these problems. In this we gained practical
knowledge about the organizational work. I have done my training 2 MONTHS in an
organization “THDCIL” & undergone practical on the topic “RATIO ANALYSIS” & how to
solve the financial problems. The practical training had provided me the real scenario of
RATIO ANALYSIS.
The concept of this project is to check whether “THDCIL” is performing well year after year
or are lacking in performance.
The performance is majorly evaluated by having a look on various ratios. The purpose of this
project is to evaluate the performance of “THDCIL”& how to manage the funds for the
organization in the difficult circumstances. I have tried to find out whether ratio analysis in
the company is in adequate manner or not. I tried to find out the areas of improvement in
“THDCIL”.
The first part of the report is about the history of “THDC India Ltd” that is being undertaken
for study. The second part presents an overview of objective of the study & the literature
review. The third part consists of research methodology which includes sampling, data
collection, statistical & analytical tool & the limitations of the study. And last part covers the
interpretation of the findings & recommendations, along with bibliography & annexure.

46
 CHAPTER 7) ANNEXURE

BALANCE SHEET OF THDC LIMITED

Particulars As at31stmar2017 As at 31st As at 01 apr2015

mar2016
ASSETS
NON-
CURRENT 7,52,398 7,97,518
ASSETS 2,39,066 1,67,420
a) property, 7,80,62 62 79
plant and 33 33
equipment
b) capital
work-in-progress 3,03,46

c) other
4,694 4,702 4,741
intangible assets
45
d) intangible
assets under
1,881 33 2,177 2,119
development 6,879 6,860
e) financial 62,655 45,795
assets 61,822 32,354
i) long term
loans and 3,190 3,168
advances
ii )other non-
current
financial assets 6,575
F) deferred tax 70,941

47
assets(net) 91,914
g) other Non-
current Assets 3,264

CURRENT
1,73,228 2,07,19 2,38,71
ASSETS:
8 9
a. Invento 2,19,418 2,47,176
6,707
ries
7,558 4,098
25,037 4,039 2,446
 financial
37 5,573 37 4,828
assets

i) trade 4,305

receivables 4,421 4,136

ii)cash 179 2,09,456

and cash 204 186
equivalents
8,107
iii) bank
6,322
balances other
than
(iii)
above
iv) short
term loans and
advance
s
v) other
current financial
assets
c) current
tax assets( Net)
d) other
current assets

48
 14,80,79 13,55,13 13,07,67
TOTAL
5 5 7
EQUITY AND
LIABILITIES
3,59,888 3,55,88 3,52,88
EQUITY
5,33,651 8,93,539 8 8,61,405 8 8,00,681
a) eqity
5,05,51 4,47,79
share capital
7 3
b) other
eqity
NON-
CURRENT
LIABILITIES:
a. financia
l liabilities 4,04,185 3,49,79 3,27,56
934 2 6
i. long
498 168
term
borrowings 220 4,05,339 3,50,454 3,27,831
21,271 164 21,271 97 21,271
 non current
38,970 32,733 32,246
financial
liability

 other non-
current
financial
1,07,580 65,102 1,02,091
liabilities

b. other non- 3,749 3,587 3,360

current 10,347 20,583 18,085
liabilities

c. long term

49
 provisions 38,724 0 3,677 0 43,634 2112
41 49 72
Current
liabilities
68,815 61,376 58,385
a. financia
l liabilities

i. short
term
borrowings

 trade
payables

 other current
financial
liabilities

b. other
current
liabilities

c. short term
provisions

 current tax
liabilities( net)

14,80,79 13,55,13 13,07,67

TOTAL
5 5 7

50
PROFIT AND LOSS ACCOUNT OF THDC LIMITED

For the period For the period

ended ended
31st march2017 31st march2016

Income

Revenue from operation 2,09,474 2,46,649

Other income 14,123 1,481

Total Revenue 2,23,597 2,48,130

Expenses

Employee benefits expenses 25,425 22,857

Finance costs 29,106 32,887

Depreciation &amortization 52,557 49,663

Generation administration and other expenses 19,513 18,003

Provision for bad & doubtful debts and stores &

445 9
spares

TOTAL Expenses 1,27,046 1,23,419

PROFIT BEFORE EXCEPTIONAL ITEMS

96,551 1,24,711
AND TAX

Exceptional items-(Income)/ expenses-Net 16,146 34,830

PROFIT BEFORE TAX 80,405 89,881

TAX EXPENSES

Current tax

Income tax 17,154 24,252

Wealth tax 0 17,154 0 24,252

Deferred tax-assets (8,142) (8,142) (16,269) (16,269)

I PROFIT FOR THE PERIOD FROM

71,393 81,898
CONTINUING OPERATIONS

51
II OTHER COMPREHENSIVE INCOME

i) items that will not be classified to profit or loss:

Acturial gain/ (loss) through OCI (414) (301)

Income tax relating to items that will not be

144 104
reclassified to profit or loss- Deferred tax Assets

OTHER COMPRHENSIVE INCOME (270) (197)

TOTAL COMPRENENSIVE INCOME(I+II) 71,123 81,701

Earning per eqity share (for continuing

operations)
198.85 230.52

Basic(rs)

Diluted(rs) 198.85 230.52

52
REFERENCES

THDC: Profile
THDC: Insight
21ST Annual Report of THDC (2016-2017)
THDC: Journal (Ganga Vataranam)

Books:
Financial management M Y Khan P.K.Jain
(TATA McGraw-Hill, edition 4th)
Financial management Ravi M Kishore
(Taxman allied services (P) ltd, edition
6th)
Financial management Prasanna Chandra
(TATA McGraw-Hill, edition 6th)
Financial accounting theory William Scott
(Pearson education pte.ltd, edition 5th)
Fundamentals of financial management James Van Horne, john wachowicz
(Pearson Publications, edition 12th)
Research methodology C.R.Kkothari
(New age international publishers, edition 2nd)
Research methodology Naresh Malhotra
(Pearson education pte.ltd, edition 4th)
Website:
Web www.thdc.in
www.google.com

53