Business Development though Acquisitions Add power generation capacity at low gestation period. Recent acquisition- 705MW Badarpur Thermal Power Station Central Electricity Authority. Original owner- Central Electricity Authority. Financial Analysis of Acquisitions Discounted Cash Flow analysis approach to value target firm. Estimating the Discount Rate and Valuing the Cash Flows. Purchase Accounting, Income Statement effects and Tax considerations. Financial implications of Diversification, Joint Ventures, Backward integration (coal mining). Captive Coal mining business. Nuclear Power generation (JV NPCIL)
Shareholding Pattern and Debt Management Public offering through Fast Track Route. Reduce process time. Alternate Book building method. Higher Weighted Average price than floor price. Disinvestment of equity shares by GOI. Dividend Policy. Current Retention Rate of 70%. Bonds on both Public and Private Placement basis. Public Deposits to meet working capital requirements.
Sources for above Slides Official NTPC website http://www.ntpcindia.com/ http://www.ntpc.co.in/images/content/media/pressrelease/PerformanceHighlight-2009-10.pdf http://www.ntpcindia.com/images/content/investors/6thanalystmeet02aug2010.pdf
FINANCE -- GAUTAM GOGOI
Project- Study of the financial aspects to be considered before undertaking a project Steps-
Finding possible alternatives
NPV Analysis of alternatives
Estimation of future cash flows
Estimating the discounting rate
Calculating the NPV’s
Risk Analysis and risk mitigation
Sources of funding – Debt vs equity
Expected Learnings Apply theoretical concepts like CAPM or NPV rule or whatever model they are using to practical situations and understand how decisions are made keeping these things in mind To get an insight into the working of a successful PSU and understand how the model has been successful To get an understanding of end to end picture of the project given Get an understanding about the interaction between various functions and how they come to a joint decision by keeping the concerns of each department in mind. To go beyond numbers and get an insight into finer things like estimation, choosing correct rates, etc. To understand the tangible (facts and numbers) and intangible factors (judgment) which managers keep in mind while deciding on capital budgeting
FINANCE Saurabh Singh
Pre requisites of the summer internship Study about the profile of the company. SWOT analysis of NTPC Study of factors which may have a negative or positive impact on the business and operations of the company. Study of literature available about the company.
Objectives of summer internship- To gain the overall idea about the organization. To gain a firsthand knowledge about the structure and the functioning of the various departments. To gain and enhance different managerial skills. To understand the applicability and usability of theory and concepts which have been taught to us during the first year of the course. To find out the financial performance of the organization. To find out the importance of finance in business. To understand the major functions of finance & accounts department. To gain understanding of basis of financial decisions made by managers during the course of the project.
Key takeaways from summer internship- Understanding of integration of working of various departments in the company with specific stress on working of finance department. Understanding of different financial products a company avails to reduce its cost of borrowings. Understanding of various checks and controls implemented by company to control its operating costs. Understanding of various accounting procedures adopted by the company. Understanding of financial position of the company, by making comparative analysis of the various expenses incurred and income earned by the company in the consecutive financial years.
Understanding of working capital requirements of the company with the help of ratio analysis. It includes how company manages its working capital cycle and its approach to the working capital handling. Understanding of the cash management, and debtors/ receivable management of the company
NTPC Summer Internship Operations -Sathiyaseelan M [10BM60080]
NTPC Power Plants across India Source: http://www.ntpc.co.in
NTPC is on expansion spree; Identifying Facility locations for NTPC.
NTPC is diversifying across the power value chain by considering backward and forward integration into areas such as power trading, transmission, distribution, coal mining, coal beneficiation, Ash Business etc. ; Expect Supply chain related projects in these areas.
Projects on procurement process.
Projects on coal import, transportation and handling.
Projects on improving capacity utilization.
Projects on Renewable Energy & Distributed Generation.
To get an overall view of production and operations management processes followed in NTPC.
Thorough study of projects where we would be put.
Application of relevant methodologies discusses in class.
Study different ongoing operational activities at the site.
Finding out different pros and cons of the activities.
Finding out different problematic areas in the process flow.
Finding the solutions for the problems
Applying the things that I have learned till now.
Help in improvement of the efficiency of the process flow.
Respect the culture of the organization.
Contribute positively to the organization.
Become an useful asset to the organization.
Create an good impression in the organization by my performance and develop a healthy relation with the organization.
Expected Projects at NTPC
The diversification NTPC is very less which is a big threat to the firm.
Out of 34000(MW) installed capacity around 30000(MW) power is generated from coal based power generation.
So being a socially responsible company, NTPC is trying to generate power from nonconventional energy sources like biomass, wind, solar, micro hydel, bio-fuel etc. which are considered as environmentallyclean and lessnoisesourse of power.
So beingfromagriculturalengineeringbackground i wouldliketo do a Project relatedto“Implementation of power generation projects in the rural areas using locally available renewable resources such as biomass, wind, solar, micro hydel, bio-fuel etc”.
NTPC had planned to add about 1,000 MW thru renewable resources by 2017. In addition, capacity addition of 301 MW through Solar PV and Thermal by March 2014 has envisaged in line with National Solar Mission.
In this kind of project I would like to analyze different possible locations for power generation plant from renewable sources.
Check the feasibility of the operation.
Check the cost effectiveness of the project.
Consideration of different constraints.
Conducting value chain analysis.
Availability of raw materials and man power.
Demand and supply analysis of power.
My Expectation from NTPC
Allocation of live project.
Support and clarification in different critical situations.
To study the project management of NTPC. (Integrated project management and control)
To gain knowledge about the key stakeholders like suppliers and also the site activities
To understand the laid out systems and procedures
To study the system of quality assurance
To study and understand the project cycle and breaking this cycle into different steps in the project management(Project setup, Project plan, Budget allocation, Engg & procurement etc)
To study the new plans of expansion through backward, forward and lateral integrations
To understand the new technological implementations and capacity expansion plans
NTPC Internship Information Technology - Amit Bhatia Rahul Aggarwal
IT Main Focus – Enterprise Resource Planning (ERP) ERP was implemented in NTPC by SAP in 2008. ERP integrated NTPC into ONE entity. Plays a major role in every department of NTPC. Increases productivity and efficiency of organization. Ease of report analysis and issue resolutions.
IT(contd..) Key focus areas for NTPC:
Company efficiency depends highly on the efficiency
of ERP system of firm
Senior management reporting
Financial closure & reconciliations
Material codification and Inventory management
Employee empowerment through self service &
Our Internship Plan (Phase-1: 2 weeks)Project Lakshya-Detailed analysis
Our Internship Plan(Phase 2: 6 weeks) NTPC is considering implementation of (6 weeks): SAP Governance and Risk Compliance (GRC)Access Control, Process Control, Risk Management SAP Master Data Management (MDM)
Related to effectively Manage various SAP, non-SAP and legacy content
Roadmap for deliverance a single version of information inter and intra-enterprise
Our plan will be to work on the analysis, design and implementation of the above two projects and submitting a report on the feasibility of the above projects.