BUDGET & BUDGETARY CONTROL SYSTEM is essential tools of management of any organization reflect the plan of action for different levels of management useful to monitor various activities and initiate mid-course corrective actions.

1. SUMMER INTERNSHIP TRAINING at
NTPC Anta
SUBMITTED TO SUBMITTED BY
Prof. NASEEM ABIDI NEHA GAUTAM
15609076

2. NTPCPROFILE
NTPC is an Indian Central Public Sector Undertaking(PSU) under the Ministry of Power, GoI. In
May 2010, NTPC was conferred Maharatna status by the Union Government of India. NTPC is
guided by the People before PLF which is the layout for all its human asset related approaches.
NTPC is 6th Best Organisation to work for in India among the Public Sector Undertakings.
Core Business:
• Electricity generation and distribution
• Natural gas exploration & Coal Mining.
• Consultancy
• Power trading
• Ash utilisation
Installed capacity: 45548 MW
NTPC Anta is a natural gas power station with installed capacity of 419.3 MW comprising 3 gas
turbines of 88 MW each and a steam turbine of 155MW.

3. INDUSTRYANALYSIS
INDUSTRY STRUCTURE AND PERFORMANCE
• Capacity and Generation
• Transmission
• Distribution
• Fuel
• Renewable
Major Regulatory Improvements in sector
Outlook and opportunities for company
Competitive Analysis
• Barriers to entry
• Suppliers & Customers bargaining power
• Competition
Transmission
Fuel

4. PROFITABILITY&LEVERAGEDRATIO
Net Profit Ratio
0
5
10
15
20
Mar ' 15 Mar ' 14 Mar ' 13
14.04
15.23
19.21
11.64 11.05
9.95
NTPC TATA POWER
Operating Margin Ratio
0
5
10
15
20
25
30
Mar ' 15 Mar ' 14 Mar ' 13
21.22
24.59 25.8924.35
26.55
21.15
NTPC TATA POWER
Interest Coverage Ratio
0
2
4
6
8
10
Mar ' 15 Mar ' 14 Mar ' 13
4.72
6.78
8.72
2.45 2.72 3.51
NTPC TATA POWER
Debt –to- Equity Ratio
0
0.5
1
Mar ' 15 Mar ' 14 Mar ' 13
0.96
0.73
0.66
0.77 0.78
0.91
NTPC TATA POWER
FINANCIAL ANALYSIS

5. LIQUIDITY&ACTIVITYRATIO
Quick Ratio
0
0.5
1
1.5
2
Mar ' 15 Mar ' 14 Mar ' 13
1.23
1.51 1.681.64
1.13
1.64
NTPC TATA POWER LTD.
Current Ratio
0
0.5
1
1.5
2
Mar ' 15 Mar ' 14 Mar ' 13
1.76
1.23
1.8
1.43
1.69 1.83
TATA POWER LTD. NTPC
Inventory turnover ratio
0
5
10
15
20
Mar ' 15 Mar ' 14 Mar ' 13
9.92
13.52
16.32
12.97
12.16 12.57
NTPC TATA POWER LTD.
0
0.1
0.2
0.3
0.4
0.5
0.6
Mar ' 15 Mar ' 14 Mar ' 13
0.47
0.51 0.51
0.33
0.36
0.43
NTPC TATA POWER
Fixed asset turnover ratio

6. DETAILEDSTUDY
INTRODUCTION:
BUDGET & BUDGETARY CONTROL SYSTEM is essential tools of management of any organization
reflect the plan of action for different levels of management useful to monitor various activities
and initiate mid-course corrective actions.
OBJECTIVES:
• To comprehend the significance of Budget and Budgetary control & apply different
hypothetical parts of spending plan and budgetary control.
• To discover how budgetary control helps in arranging and coordination of different
operations in a venture.
• To determine how budgetary control helps in controlling all operations of the business
endeavor.
• To know whether there is impact of spending plans in benefit making or not.
• To know the steps taken by NTPC in planning of budgeting.
Methodology:
The data for the study has been acquired from two sources:
Primary data:
• Business profile and organization profile was assembled from HRD.
• Monetary allowance and budgetary control data accumulated from F&A Department.
Secondary data:
• Websites, annual reports, company journals.

7. BUDGETANDBUDGATERYCONTROLOFNTPC
In NTPC, Revenue Budgeting is assigned a name of O&M Budget, lays down the
physical and financial operating plan/targets for the budget period.
Budget concept:
• Zero-Based Budgeting
Budget Period: Prepared on an annual basis for a financial year.
• Revised estimates for the next financial year
• Budget estimates for the year there after
Responsibility for budget preparation
• Maintenance Planning Section (MTP) and Operation and Efficiency Section
(O&E)
• Finance and Accounts Department
Formulation of O&M Budget
• Finalization of Physical Parameters
• Finalization of Financial Parameters

8. BUDGETANALYSIS
REPAIR AND MAINTENANCE COST
EMPLOYEE COST
O&M Expenses

9. CONCLUSION
• In NTPC all types of expenses are estimated & analysed on monthly, quarterly
and yearly basis therefore cost control & reduction can be done.
• While preparing budget, all actual costs is compared with standards cost &
deviations are evaluated.
• Company has fixed Performa’s for each type of budget.
• SAP is used for preparing cost sheet which will help in getting accurate data.
• Proper coordination is required among various departments regarding data &
information.
• Budget preparation process is time consuming & very costly and is
complicated.

10. KEYLEARNINGSANDCONTIBUTION
KEY LEARNINGS:
• Learned how to work in ERP (SAP NetWeaver) including few modules:
• Asset accounting
• O&M Bugdet
• MIS Report
• Learned how purchasing order number is generated when there is an
agreement between two parties through open, single or limited tender.
• By making comparative analysis of various expenses incurred and income earned
by the company in the consecutive financial year got to know about financial
position of company.
CONTRIBUTION
• Analysis of CERC Data for providing reasons for need of capitalization on
particular assets (providing justification for capitalization).
• Tax audit report