main certificates

PROJECT REPORT

ON

WORKING CAPITAL

MANAGEMENT

DONE FOR

RAYALASEEMA THERMAL

POWER PROJECT

(APGENCO)

Submitted on Partial Fulfillment of the Award of the

degree of

“MASTER OF BUSINESS

DMINISTRATION”

Submitted By

T.HIMMAT

(Reg. No. 0010806020)

Under valuable Guidance of

Dr.P.JAYARAMA REDDY(Academic Consultant)

YOGI VEMANA UNIVERSITYKADAPA – 516003

(2008 – 2010)

A STUDY WORKING CAPITAL MANAGEMENT

Done For

RAYALASEEMA THERMAL POWER PROJECT

(Submitted on Partial fulfillment of the Award of the

Degree of)

“MASTER OF BUSINESS

ADMINISTRATION”

BY

T.HIMMAT

(0010806020)

UNDER VALUABLE GUIDANCE OF

Dr.P.JAYARAMA REDDY (Academic Consultant)

YOGI VEMANA UNIVERSITYKADAPA – 516003

(2008 – 2010)

YOGI VEMANA UNIVERSITY

KADAPA – 516003, A.P.

DEPARTMENT OF BUSINESS MANAGEMENT

CERTIFICATE

This is to certify the project work entitled “A

study on WORKING CAPITAL MANAGEMENT,

Andhra Pradesh Power Generation

Corporation Limited (APGENCO)” is a bonafied

record work carried out by T.HIMMAT

(Reg.No.0010806020) Department of Business

Management, YOGI VEMANA UNIVERSITY, Kadapa.

Submitted in partial fulfillment of the requirement of

the award of the degree” MASTER OF BUSINESS

ADMINISTRATION” from YOGI VEMANA UNIVERSITY,

Kadapa during 3rd Semester from

“I wish him all the success in this future

endeavors”.

Dr.P.JAYARAMA REDDY K.VALI

PASHA Faculty Guide Principal

Examiners :

1.

2.

DECLARATION

I here by declare that this project work entitled

“A Study on CASH MANAGEMENT” done for

“Andhra Pradesh Power Generation Corporation

Limited (APGENCO)”. Submitted by me as part of

Partial fulfillment for the award of the “Master of

Business Administration” at Yogi Vemana

University, Kadapa. It is of my own and it is not

submitted to any other university of published any

time before.

Place : Kadapa

T.HIMMAT

Date :

(0010806020)

ACKNOWLEDGEMENT

I sincerely acknowledge my thanks to Dr. M.

Sudhir Reddy, Yogivemana University college,

Kadapa his co-operation & help through out my

projects work.

I would like to acknowledge my sincere thanks

to college for giving me this opportunity.

I would like to thank R.T.P.P. people for giving

me an opportunity to work on this project.

I am thankful to my company guide Mr. P.

Rama Rao (AICWA A.O,) of R.T.T.P. who has

provided me with valuable suggestions of tips for

conducting the survey in my project.

I am very thankful to Dr.P.JAYARAMA REDDY.

for giving for their help & guidance in completing

my project work.

My heartful thanks to my parents & friends

whose kind help & understanding has effort

possible.

T.HIMMAT

Reg. No. 0010806020

BOARD OF DIRECTORS

SRI A.K. GOYAL, I.A.S.Chairman

SRI AJAY JAIN, I.A.S.Managing Director

SRI G. ADISHESUDirector / Hydel

SRI UG. KRISHNA MURTHYDirector / Technical

SRI D. PRABHAKAR RAODirector / Finance

SRI C. RADHA KRISHNADirector / Projects

SRI G. VAMAN RAODirector / HR

ANDHRA PRASEHS POWER GENERATION CORPORATION

LIMITED

BOARD OF DIRECTORS

S.V. Prasad, IAS., Chairman

A.K. Goyal, IAS., Chairman

Ajay Jain, IAS., Managing Director

D. Prabhakar Rao, Director (Finance)

G. Adiseshu, Director (Hydel)

U.G. Krishna Murthy, Director (Technical)

C. Radha Krishna, Director (Projects)

G. Vamana Rao, Director (HR)

A.K. Goyal, IAS., Director (Non – Executive)

I.Y.R. Krishna Rao, IAS., Director (Non – Executive)

N. Ramesh Kumar, IAS., Director (Non – Executive)

Hiralal Samariya, IAS., Director (Non – Executive)

Aditya Nathdas, IAS., Director (Non – Executive)

G. Adinarayana, Company Secretary.

STATUTORY AUDITORS COST AUDITIOR

M/S.JAWAHARAND M/S.NARAYANA MURTHYNARASIMHAASSOCIATES Chartered Accountants Cost AccountantsHyderabad. Hyderabad.

Registered Office :

Vidyut Soudha, Hyderabad – 500082.

CONTENTS

1.Introduction.

2.Project Design.

3.Theoretical Concepts.

4.Data Analysis.

5.finding & Suggestions.

6.Bibliography.

Introduction.

1.1. INDUSTRY PROFILE

POWER SECTOR REFORMS IN INDIA

INTRODUCTION

The power sector has transited to an era of

controlled competition giving a meaningful role for

the private sector and the market to play in the

nation’s infrastructure building. Reforms in the

power sector were officially kicked off in

September 1991 with the passing of the electricity

laws (amendment) act, allowing the private sector

in power generation. This was followed by the

center’s resolution in October 1991 that opened up

electricity generation, supply and distribution to

the private sector.

REFORMS IN STATE ELECTRICITY BOARD

The reforms process turned active only in late

1996 with the adoption of the “common minimum

nation action plan for power” at the chief minister’s

conference. This action plan, which laid the

foundation for reforms in State Electricity Boards

[SEBs], has the following salient features.

Formulation of a national energy policy

Setting up of central and state electricity

regulatory commissions.

Rationalization of retail tariffs.

Private sector participation in power

distribution.

Streaming the role of central agencies

concerned with project approvals.

Autonomy and improvement in management

and physical parameters of SEBs.

It took another 18 months before the reforms

process got into implementation mode with the

promulgation of the

electricity regulatory commissions ordinance

by the president of India on April 25, 1998.This

ordinance primarily gave legal shape to the two

cardinal features of the common minimum action

plan establishment of regulatory commission and

rationalization of retail tariff.

This provision invited considerable flak from

the prefer power lobby and was unceremoniously

shelved when the ordinance was passed into an

act of parliament on 2ND July 1998, reducing SERCs

to toothless tigers as far as rationalization of retail

tariff’ was concerned. However, the clause

requiring the state Government to compensate the

person affected by the grant of subsidy in the

manner the state commission may direct was

retained, there by giving some vestige of authority

to the regulators.

EXPERIENCES OF REFORMS PROCESS IN

FEW STATES

At the time the ERC act was enacted by

parliament, two states like Orissa and Haryana

already had their electricity reforms legislation in

place. Orissa was well into the reform process and

Haryana was just then started. The electricity

boards in these states had been split into separate

entities for generation, transmission and

distribution in accordance with the management

model formula. The user reforms were actively

assisted and funded by the World Bank and

bilateral agencies.

In early 1999, Andhra Pradesh also got on to

the reform bandwagon with a similar package and

received the first trance of World Bank assistance.

In July 1999, the Karnataka Electricity reforms act

received the president’s assent and the state also

got into the reform mode on the same pattern.

The central electricity Regulatory commission,

established in August 1998, has found its feet and

is now working on the national electric grid code

and availability tariff regime, both having a far

reaching impact on the power scenario in the

country. As far as states are concerned, SERCs can

be grouped into various categories depending on

the status and relationship to the reform process.

State’s where ERCs have been established and

are functioning along with a statutory, formal and

multilateral funded reform process- Orissa,

Haryana and Andhra Pradesh. Based on this

analysis a management model formula was

evolved and endorsed by the union ministry of

power and this has guided SEB reforms in Orissa,

Haryana, Andhra Pradesh and also Karnataka.

The World Bank and other aid agencies have

extensively adopted this formula while apprising

SEB reform! restructuring proposals. Hence, the

surprising uniformity of reform and reconstruction

package in all these states.

Adoption of the management model is being

set as necessary pre-condition for SEBs if they wish

to avail themselves of World Bank / Asian

Development Bank funds.

POWER SECTOR REFORMS IN

ANDHRA PRADESH

INTRODUCTION:

Andhra Pradesh became third state to initiate

power sector reforms and restructuring. Andhra

Pradesh State Electricity Board (APSEB) has been

split into two entities. APGENCO, the generation

arm, and APTRANSCO, the transmissions company

with effect from February 1999. In these 40 years

the installed capacity has been increased from 200

MW to 6406.7 MW. The consumers have grown up

from two and half lakhs to over one crore, the

energy handled per annum from 686 MU to over

40,000 MU. The annual revenues have increased

from mere Rs. 6.5 crores to Rs.4800 crores. In the

After Reforms process is taken up, the national and

international funding agencies have come up in a

big way and APGENCO could complete 2X250 MW

KTPS V stage, and Srisailam LBPH. International

agencies are now interested in taking part in VTPS

stage-IV. It is sure that the two corporations

APGENCO and APTRANSCO will act in tandem and

the only competition between them will be in

pursuit of excellence and to be of best service to

consumers of all sectors in our state. Towards this

endeavor, APGENCO promises its continued

unstinted co-operation and brotherly bonding to

APTRANSCO and there is no doubt that both the

entities together will flourish and provide service to

the consumers on par with international standards

near future.

The Electricity Act, 2003 has come into force

with effect from 10th June, 2003 replacing three

legislations namely, The Indian Electricity Act,

1910, The Electricity (Supply) Act, 1948 and

Electricity Regulatory Commissions Act, 1998. Lot

of thrust is being given by the government for

development of power sector in order to achieve

the ultimate objective of “Power for all”

PERFORMANCE OF APGENCO POWER

PLANTS

During 2003-2004, performance of thermal

power stations has been very good as they

contributed 25420.22 MU against 26361.99

MU generated during 2002-2003.

APGENCO’S Coal based thermal stations

achieved an overall plant load factor (PLF) of

86%, the highest in the country for a utility,

against a national average of PLF of 72.70%.

Amongst APGENCO stations, Rayalaseema

Thermal power station achieved the highest

PLF of 92.2% and stood first in the country.

The Kothagudem Thermal power stations-

stage-V achieved a PLF of 91.90% and stood

second in the country. The Vijayawada thermal

power station achieved a PLF of 91.80% and

stood third in the country for year 2003-04.

Dr. A.P.J. Abdul Kalam, President of India

presented the National Meritorious Awards -

Gold Shields and Certificates for outstanding

performance to the station heads on 24th

August, 04 at New Delhi.

APGENCO has commissioned a mini hydro

plant of 2X 500 KW capacity at 16Th mile on D-

83 Kakatiya canal on 31st December 2000.

Annual overall works on sixteen thermal units

were completed.

APGENCO ACHIEVED RECORD PLF

APGENCO has maintained high level of

performance in generation during this year.

APGENCO’S coal based Thermal stations, Wind

generation Stations and Hydel generation stations

together generated 25420.22 million units of

electricity (Thermal 22455.29 million units, Wind

60 million units and Hydel 2964.33 million units) as

compared to previous year’s generation of

26361.99 million units (Thermal 23032.30 millions

units, Wind .36 million units and Hydel 3329.33

million units). APGENCO’S coal based thermal

stations achieved a plant load factor of 86.00%

against a national average of PLF of 72.7%. This is

in spite of backing down of APGENCO’S thermal

power stations due to system constraints or lack of

demand. Hydro generation in the year under

review is 2964.33 MU is only due to the poor

inflows into the reservoirs. Only 12% inflows were

realized at Srisailam reservoir during April, 2003 to

March 2004, against the last 10 years average.

Overall the APGENCO Thermal Power Stations

contributed about two thirds of the total Andhra

Pradesh Power systems.

ANDHRA PRADESH TO SET UP FINANCE

FIRM FOR POWER SECTOR

A finance company, exclusively to fund the

power sector, is to be set up by the Andhra

Pradesh government with equity of Rs.3000 crores.

This decision was taken by the state cabinet at its

meeting in Hyderabad on May 10, 2000. The

proposed company, Andhra Pradesh Power Finance

Corporation limited will be a government company

incorporated as a public limited company. The

cabinet also approved the following government

guarantees and sanction of loans.

Rs. 2100 crore for repayment of principal and

interest amount on due date in respect of the

APTRANSCO VIDYUT BONDS.

Rs.138 crores as an equity to APTRANSCO by

way of adjustment of power purchases dues

payable by

Rs. 100 crore to APGENCO for obtaining a loan

from the power finance Corporation Limited for

completion of on going Srisailam left bank

Hydro station pumped storage scheme.

Loan of Rs. 196 crore to APTRANSCO to meet

half yearly interest payment to the subscribers

of the current series of vidyut bonds

Rs.50 crore to the State Bank of Hyderabad for

availment of cash credit limits by APGENCO.

Rs. 20 crore each to the state bank of Mysore

and the development credit bank limited for

availment of cash credit limits by APGENCO

and

Rs. 6.40 crore to Power Finance Corporation

limited for the loan to APGENCO for Y2K

compliance of computer system.

FLY ASH UTILIZATION IN APGENCO

The annual generation of fly ash from the

Thermal Power Stations of APGENCO is presently

around 6.24 million tons.

APGENCO is making sincere efforts to improve

the ash utilization levels from the Thermal power

stations. Some of the measures taken are:

Dry fly ash & Pond ash are issued free of cost

to all consumers.

All the thermal power stations are equipped

with dry fly as collection, storage and

dispensing systems.

Brick plants are set up at all thermal power

stations for in-house consumption. All other

promotional measures are being implemented.

The ash utilization scenario has witnessed

improvement over the years as below :

Sl.No.

Year

Ash production

(million MT)

Ash utilization (million

MT)

% utilized

1 1998-1999 6.80 0.15 02.18

2 1999-2000 7.11 0.40 05.64

3 2000-2001 6.8 0.68 10.00

4 2001-2002 6.8 0.56 0.20

5 2002-2003 6.9 0.99 14.30

6 2003-2004 6.24 1.78 28.50

7 2004-2005 6.04 1.94 32.12

8 2005-2006 5.64 2.15 38.10

9 2006-2007 6.13 1.98 29.45

10 2007-2008

1.2. COMPANYPROFILE

HISTORICAL BACKGROUND OF RTPP,

KADAPA (DT), A.P.

A Beginning: Almost a century after the

invention of electricity it was introduced in India for

commercial use in a humble way. For the first time

in the year 1889 a mini hydroelectric powerhouse

with a capacity of 15KW was constructed on a

small rivulet in Darjeeling district and electric

power was supplied in its vicinity. Within, two

decades, in 1909 a 10KW diesel set was installed in

Hyderabad for supply of electricity to the king’s

palaces. This was the first step in the development

of electric power in Andhra Pradesh (HYDERABAD).

ELECTRICITY PROGRESS IN A.P (1911-

1922):

The electricity department was established in

1911 under the Government Mint. Later Hussain

Sagar Bund was electrified on Saturday 25th

October; 1913A.D. and street electrification work

was started within and outside the Municipal limits

of Hyderabad and electricity was provided on the

residency roads. In Hyderabad 10 sub-stations

were erected for the distribution of power in the

city. The tariff was 6 annas (osmania sikka) per

unit with a minimum of Rs.5/- O.S. per month.

Programmes of expansion to cover other town if

the Nizams State was take up. Under this

programme steps were taken to generate electric

power at Aurangabad, Raichur, Warangal, and

Gulbarga etc.

The Government of India framed Electricity

rules in 1910 so as to ensure fair distribution and

supply of power as well as take all necessary

precaution for the use of power by the consumers

and concerned departments.

The management of the Secunderabad

Electricity supply remained with department.

Nearly 3 miles of cable of various sizes and three

and half miles of overhead mains were laid for 261

consumers. The work of changing the feeding

voltage from 3300 to 6600 was completed. There

were altogether 12 main and feeder lines, and 50

sub stations at the end of the year 1922. The total

number of consumers increased from 2977 to

3328.

During 1939-40 the department constructed

first outdoor substation at Toli Chowki. This is a

modern form of construction usually associated

with high voltage systems, and was used at Toli

Chowki to initiate the new 11000 volt extensions.

Two old style sub-stations, Tank Bund and Begum

Bazaar were enlarged in order to accommodate

extensions to their equipment and were at the

same time converted into the new style of

architecture. Thus raising the total number of sub

stations built in this style to 19.

POWER DEVELOPMENT IN A.P - AN

OPORTUNITY

KNOCKING:

We are standing at the entrance of 21st

century and opportunity is knocking at its door.

The end of the century offers us the opportunity to

assure India’s and in particular our state’s

electricity needs for decades to come.

Electricity demand in A.P is estimated to grow

at an annual compound growth rate of around 10%

as against the National growth rate of 6.8%. The

installed capacity of A.P state Electricity Board has

grown from 213 MW in 1960-61 to 6124MW at

present (Excluding central share).

The available capacity in A.P is 6136.5 Mw

which includes 897 MW from central generating

stations. As the capacity addition could not keep

pace with the growth in demand, a shortage of

2000 MW in the installed capacity exists now. The

growth in demand has been mainly due to

extensive Rural Electrification Programme and

energisation of agricultural pump sets at one lakh

pump sets per year since 1985-86 besides increase

in domestic loads.

A.P.S.E.B has long been a trendsetter in

breaking new paths and adopting the STATE-OF-

THEATRE technology in its power plants. The

technology adopted in the power station has been

continuously upgraded both in the Hydro and

Thermal station and also in transmission

distribution and general management to enhance

the productivity and improve the operations.

APGENCO -R.T.P.P- IT’S VISION AND

MISSION

VISION

To be the best power utility in the country and

one of the Best in the World.

MISSION

To generate and supply adequate and reliable

Power in the state of Andhra Pradesh in the

most economic manner.

To spearhead accelerated economic power

development by planning, implementing new

power projects within stipulated cost and time.

To implement renovation and modernization of

all existing units and enhance their

performance.

To operate power stations economically,

efficiently and Eco-friendly.

CORE VALUES

Excellence in all aspects of the company.

Honesty, integrity and ethical business.

People, as the source of strength.

Respect for the individual and personal

growth.

Tackling challenges and solving problems.

Continued self improvement, never being

satisfied.

CORPORATE OBJECTIVES

To operate and maintain power stations at high

availability ensuring minimum cost of

generation.

To add generating capacity, with in prescribed

time and cost.

To maintain the financial soundness of the

company by managing financial operations in

accordance with good commercial utility

practices.

To adopt appropriate human resources

development policy leading to creation if a team

of motivated and competent power

professionals.

To develop R&D for achieving improved plant

reliability.

RAYALASEEMA THERMAL POWER PROJECT–STAGE-I

Introduction :

Andhra Pradesh power generation corporation

limited (APGENCO) was established by Government

of Andhra Pradesh under the Andhra Pradesh

electricity reform act 1998 on 01.02.1999 with the

Principal object of engaging in the business of

generation of electricity. The Govt. of Andhra

Pradesh (GOAP) embarked upon reforms in Andhra

Pradesh Power sector and as a sequel. Erstwhile

Andhra Pradesh state electricity board (APSEB) was

unbundled and restricted into Andhra Pradesh

generation corporation limited

(APGENCO) and transmission & distribution

respectively with the business of generation and

transmission and distribution respectively with

effect from 01.02.1999. By segregating the

distribution activity from APTRANSCO four

distribution companies were formed subsequently

and started functioning from 01.02.1999.

MILEST ONCES OF THE ORGANISATION :

Foundation stone laid on 20.03.1988 by

Honourable Chief Minister N.T. Rama Rao.

Drum lifting unit (25.06.1992) unit-2

(25.10.1992).

Hydraulic test unit (26.03.1996) unit-2

(27.10.1993).

Boiler light up uni-1 (12.01.1994) unit-2

(12.08.1994).

Turbine erection starts unit-1 (31.12.1992),

unit-2 (07.08.1993)

Turbine rolling unit-I (31.03.1994), Unit-2

(25.02.1995)

SYNCH Unit-I (25.11.1994), unit – 2

(30.03.1995)

Dedicated to nation – 29.11.95 by Honorable

Chief Minister N.Chandra Babu Naidu.

ACHIEVEMENTS :

Sl.No.

Particulars Unit-I Unit-II

1 Max Demand MW 215 (31.10.98)

MW 216(04.08.98)

2 DLY.STN.GEN.MAX

MU 10.457 (22.12.97)

3 DLY.GEN.MAX MU 5.277 (22.12.97)

MU 5.265(30.08.99)

4 Service from 02.08.03 22.11.05

5 Run days (present)

208 158

R.T.P.P. Salient Features

Civil :

1. Land acquired : 2674.18ac

2. Project cost : 842 crores

3. Mylavaram Dam capacity : 9.967mc FRL

202.65m

4. Plant Reservoir capacity : 0.008TM FRL 180M

(3,06,000)

5. Cooling Tower 3500 cum (430c – 350c) (natural / draught) HT – 125M DIA – 100m.

6. Chimney : HT – 220M (Flue-2)

Name & address

Stage / station

sUnits

Capacity (MW)

Date of Installatio

nRTPP, VV Reddy Nagar-516312, Kadapa Dist.Ph : 08563-232103Fax : 08563-232102

Stage – I Unit-I 210

30.03.1994

Unit-II 210 25.02.1995

Total 420

Stage-II

Unit-III 210 24.08.2007

Unit-IV 210 05.03.2008

Stage-III

Under construction

Rayalaseema comprises of four districts Kadapa,

Kurnool, Anantapur and Chittoor which are

considered to be in backward region and the area

lags behind in all respects such as agriculture,

industrial and educational. Prior to the growth of

industrial development, agriculture is based and

dependent solely on the rainfall. People used to

live on agricultural sector. The returns of

agriculture sector were at very low ebb. Owing to

the advancement of Science and Technology some

mines of baryties were found in rocky area of

Cadapa, which necessitated the workers to shift

from agriculture to baryties.

Many baryties and mine industries were

started subsequently more and more industries

were established in this region. Added to this, this

region is considered to be hottest region and

temperature often go up to 500C in summer.

Therefore, the need for electricity to meet the

necessity of the inhabitants and the industrial belt

of this region was felt, as the supply that was

generated by the agencies was found insufficient.

Hence, the Government established the

Rayalaseema Thermal Power Project (R.T.P.P) in

the year 1988.

Rayalaseema Thermal Power Project is one of

the major power generation facilities being

developed in Andhra Pradesh to meet the growing

demand for power. The project envisages the

installation of 2x210 MW Thermal generation units

under stage-I. The first 210 MW unit is

commissioned on 31-03-1994 and second unit on

25-02-1995.

Rayalaseema region is in the southern part of

the state and most of the generating facilities are

in the northern part of the state except two major

Hydel stations in the central part. The

Rayalaseema region therefore gets its power needs

through long EHT lines and frequently faces low

voltage problem particularly during summer when

the hydro stations generation goes down. Priority is

therefore given for industrial development and

power being the basic infrastructure; it is

necessary to ensure proper power supplies. In this

context the R.T.P.P is taken up not only to improve

the base load capacity of the grid but also to

ensure proper voltage profile in the area under all

conditions.

PLANT DESIGN

I. LOCATION OF THE PROJECT

The project is located at a distance of 8KM

from Muddanur Railway Station of South Central

Railway on the BROADGUAGE RAILWAY LINE

connecting CHENNAF MUMBAI. The site near

Mekalabayalapalli is selected for the Thermal

Power Project as it is at an adequate distance from

populous towns and the land is government land

not put to any use. The site is comparatively

nearer to MYLAVARAM RESERVOIR, which supplies

water. It is quite near to the existing railway lines.

Transmission lines of A.P grid are also nearby to

supply construction power, later for evacuation of

power generated and supplying reliable power.

2. COST ESTIMATES

The total cost of the project was estimated at

Rs.503.71 crores based on 1987 prices and now

revised to 840 crores and it is financed partly by

Asian Development Bank, Manila and partly by

Power Finance Corporation, New Delhi and self

finance.

3. ESSENTIAL INPUTS TO PROJECTS

a. Land: An extent of 2621.587 acres of

Government land has been acquired for the main

plant, colony ash pond and marshalling yard areas.

In addition to that 52.59 acres of patta land was

also acquired.

b. Water supply: The water required for running

of the power station is being drawn from the

Mylavaram Reservoir through a 21 KM long steel

pipe line. The water flows from Mylavaram to RTPP

through gravity. Government of Andhra Pradesh

Irrigation Department has allocated 20 cusecs of

water per day and 1.3 TMC per year from the

reservoir for the project.

c. Coal Supply: The power station requires about

2.5million tones of coal every year, which is being

supplied from the SINGARENI COLLIRIES under

long-term coal linkage arrangements. The coal is

being transported to powerhouse site by rail over a

distance of about 800 KM by one of the routes,

VIJAYAWADA-GUDUR-RENIGUNTA. An approach

railway line is formed from Muddanur

Railway Station to the project site as a part of the

project. Of late, coal is supplied.

d) Evacuation of Power : The power generated

at the project is evacuated through six number 220

KV transmission lines to Yerraguntla, Kadapa and

Anantapur (2nos each)

e) State of Clearness : All the clearness required

for the construction of the project like “No

Objection” from Airports Authority. “No Objection”

from the state pollution control board and

clearance from environmental angle were

obtained. The planning commission, Govt. of India

wide letter dated : 09.03.1998 accorded

investment approval for the project at an

estimated cost of Rs. 503.71 crores for the power

station based on 1987 prices (revised to Rs. 840

crores).

SALIENT FEATUERS OF THE PROJECT :

Single tower type boilers on concrete pylons

with a capacity of 690 T/HR at a pressure of 155

Kg/cm2 and at 5400c for each unit are installed.

1. Milling plant : Three horizontal tube mills each

having capacity of 105 T/HR are provided for each

of the boilers.

2. Electrostatic precipitators : In order to

achieve total pollution control 6 field electrostatic

precipitators having capacity of 13, 82,000 M and

99.89% efficiency are installed.

3. Chimney: A 220 mts tall chimney with two flues

conforming to the latest requirement of “Emission

Regulators” is installed.

4. Turbo Generators : German designed steam

turbines with lower heat rate with 3 cylinders

reaction type were commissioned. Microprocessors

based Automatic Turbine run up systems are

installed.

5. Generator Transformers : 2 No.s 240 MVA,

15.75, 236 KV, 3 phase step up transformers, one

for each unit are installed for transmitting power at

220 KV.

6. Instrumentation & Controls : Total

automation and highly sophisticated DDC control

system supplied by M/S YBL and M/S BHEL Ltd are

in use to smoother and finer control.

7. Coal Handling Plant : The coal handling plant

has two wagon tipplers complete with weighing

arrangement and double streconveying system

and one stacker reclaimed with a capacity of 1275

T/HR.

8. Ash Handling System

a. Bottom Ash System: Bottom Ash System

provided for the collection of furnace bottom

ash through water impounded storage type

bottom ash hopper. The ash slurry is being

pumped to ash pond.

b. Fly Ash Removal System: A wet de ashing

system in which fly ash is collected in the

hoppers of electrostatic precipitators, air

heaters etc., is mixed with water and sluiced

to ash slurry sump by means of high pressure

c. sluicing jets. Dry fly ash system is intended

for recovery of dry fly ash from the selected

rows of ESP hoppers from MAHANANDI COAL

FIELDS, TALCHER also (state of Orissa in

Eastern India)

This system will empty the dry fly ash to ash

silos from where the ash is distributed to cement

and brick manufacturers. In the recent times the

dry fly ash is being used for laying roads and also

is used to fill the mines.

9. Water Treatment plant : Water Treatment

Plant produces 225M of DM plant water through

three steams of capacity 75M each to meet the

requirements of stage-I.

10. Circulating Water System : The circulating

water system uses water from Mylavaram

Reservoir through natural draught cooling towers

with provision for make up water needs. One

cooling tower for each unit is constructed. Three

circulating water pumps each having 50% capacity

are installed for each unit.

11. Switch Yard : The generated voltage of the

units is being stepped up to 220 KV by means of

240 MVA, 15.75 KV/236 KV unit step up

transformers and fed to the 220 KV transmission

lines through Yerraguntla, Kadapa, Ananthapur.

12. Computerization and information systems

: In order to increase the operational efficiency of

the organization, it has been decided to implement

Microsoft’s Business solutions - NAVJSION - ERP - in

all functional areas, Material management, Finance

accounting, HRMS and Maintenance Management

across all the Generating stations.

LOAD GROWTH :

This project is located in the load center of the

grid and there is consistent Load Growth around

this project every year.

PERFORMANCE SINCE INCEPTION

Year

Achieved plant

load factor

(%)

Awards Won Rank

1995-1996 70.9 - -

1996-1997 66.2 - -

1997-1998 81.1 Silver medal

-

1998-1999 91.5 Gold medal 1st in country

1999-2000 94.9 Gold medal 2nd in country


2001-2002 92.4 Gold medal 2nd in country


2003-2004 92.2 1st in country

2004-2005 91.16 Bronze medal

3rd in country

2005-2006 64.44 Bronze medal

3rd in country

2006-2007 89.52 Bronze medal

3rd in country

2007-2008

ENVIRONMENTAL DEVELOPMENT IN

R.T.P.P. :

Measures have been taken to check environmental pollution by plantation viz,

Avenue Plantation Development of green belt area, lawns, gardens were extended in

and around R.T.P.P. to establish environmental and ecological balances as follows :

Sl. No.

Area No. of plants

1 Main plant area 5500

2 Coal plant area 5100

3 D.M. plant area (Lawns) 8550 sq. mts

4 Colony area (Lawns) 770 sq. mts

5 Around plant area 775 sq. mts

6 Development of green belt inside

4850 sq. mts

Previously ash water from ash pond was let

out into the Kallamalla River. It is now stored in a

tank and recalculated back to the plant. As such

water pollution has been effectively controlled and

water is being conserved. Also oxidation pond for

treatment of sanitary effluents was commissioned

on 03.01.1998.

PROPOSAL FOR ESTABLISHMENT OF RAYALASEEMA THERMAL POWER

PROJECT STAGE-II

Approval of the planning commission for

taking up stage-II (2 x 210 MW) of the R.T.P.P. at

an estimated cost of Rs.1640 crores techno

economic clearance for the project has been issued

by the central electricity authority earlier in 1993

selection of land is also completed. The works were

allotted to M/s. BHEL and the units are likely to be

commissioned with in 36 months.

Name & address

Stage / station

sUnits

Capacity (MW)

Date of Installati

onRTPP, VV Reddy Nagar-516312, Kadapa Dist.Ph : 08563-232103Fax : 08563-232102

Stage – I Unit-I 210

30.03.1994

Unit-II 210 25.02.1995

Total 420

R.T.P.P. II Stage :

Name of the project

Capacity MW

Estimated cost (Rs. In

crores)

Programme of commissioning

Rayalaseema 420 1640 Unit-III – July

Thermal power project state-II

(2x210)2006

Unit-IV – October 2006

Vijayawada Thermal power station stage-IV

660 (1x660)

2706 November, 2008

Bhoopalapally Thermal Power Station

500 (1x500) 2092 October, 2008

Priyadarshini Jurala Hydro Electric Project (Joint project with Government of Karnataka)

234(6x39) 547

Unit-I – March, 2007

Balance 5 units – XI plan

Nagarjuna Sagar Tail Pond Dam Power House

50 (2x25)

464.7 December, 2007

WELFARE MEASURES

During the survey it was found that the

Organization is very particular about all the

Welfare Activities and improving so, it takes

effective steps to maintain them continuously. The

following are the Welfare Measures that the

Organization is providing.

1. DRINKING WATER : Every establishment or

factory is under a duty to make effective

arrangement to provide and maintain sufficient

supply of drinking water at suitable points, as it is

essential. And in this Organization also drinking

water facility is provided properly.

2.HOUSING FACILITY : As it is must for every

Organization to provide proper housing facility for

every employee, as usual it is providing good

housing facility for different categories of

employees based on their designation and 1268

different type of quarters have been constructed

and there is proposal for construction of new

quarters as per requirement.

3. EDUCATIONAL FACILITIES : Educational

facilities are provided for the children of the

employees of Rayalaseema Thermal Power Project

in the plant itself.

The following are the educational institutions

located in R.T.P.P:

• DAYANANDA ANGLO VEDIC PUBLIC SCHOOL

• SARASWATHI SISU MANDIR

4. MEDICAL BENEFITS : Plant is provided with a

project hospital with sufficient number of staff, and

a dispensary to provide suitable medicine for the

employees and their family members.

5. CANTEEN : A subsidized canteen has been

provided in the plant with healthy and hygienic

environment.

6. CHILDREN’S PARK : Abundant numbers of

children’s parks were provided with cradles, see-

saw, and merry go round, etc., in a wide area to

enable the children to enjoy their free time.

7. RECREATIONAL FACILITIES : Arrangement for

entertainment and recreation of workers and

officers employed in R.T.P.P was provided by the

management in the housing colony. Generally on

the eve of festivals some cultural programmes are

arranged by the management.

8. CONVEYANCE : For traveling to the nearby

town i.e., Proddutur, conveyance facility has been

provided with many trips. Three buses are

arranged; one for executives and two for non-

executives.

9. COMMUNITY HALL : A community hall is

provided to arrange different functions of the

R.T.P.P members and different programmes are

being arranged. An open air theatre was

inaugurated recently to facilitate cultural

programmes and also is used to screen the movies

during weekends.

10. CO-OPERATIVE STORES : Two consumers co-

operative stores with all the provisions are

provided in the colony. One is Officers co-operative

consumer’s stores and the other is Workmen co-

operative consumers stores.

11. LIBRARY : Library is provided by Govt. of AP

with all kinds of books including weeklies, technical

journals and news papers etc.

12. LADIES CLUB: In the colony, separate ladies

club is opened with different indoor and outdoor

games for recreation.

13. GUEST HOUSE: Highly sophisticated

guesthouse is constructed for the VIPs who visit

the plant.

QUOTATIONS REGARDING POWER

“SAVE ENERGY TODAY AVOID CRISIS

TOMORROW”

“A THING WHICH BURNS NEVER RETURNS”

“SAVE ONE UNIT A DAY KEEP POWER CUT

AWAY”

“WHEN IT IS BRIGHT SWITCH OF THE LIGHT”

APGENCO THERMAL PLANTS IN A.P.

Project Design

NEED FOR THE STUDY:

The most important functions of the business firm

are production, marketing, finance.It is very difficult to separate finance functions

from production, marketing and other functions. The functions of raising funds,

investing them in assets and distributing returns earned from assets to share

holders are respectively known as financing, investing and dividend decisions. In

doing so, a firm attempts to balance cash inflow and outflows. Finance function

call for skillful planning control and execution of firm’s activities.

During the recent years, there is a cash management are high in company.

A study on this company is made to look into the control and management of

cash events.

To analyze the various cash out flows and inflows of company and also

cash budget and cash planning to study the various sources of cash in this

company is need to study this cash management. So it is basis to need for the

study.

Hence, the study is taken to analyze the firm’s activities through “CASH

MANAGEMENT”.

OBJECTIVES OPF THE STUDY: 1) To study the cash management structure of APGENCO.

2) To appraise the cash position of APGENCO.

3) To evaluate the receipts & payments, cash budget & cash flows.

4) To analysis in the cash management pattern of APGENCO.

RESEARCH METHODOLOGY: Data collection:

The methodology of the study interrelations is to understand the

procedural aspects of APGENCO and than to proceed with analysis of the

financial performance.

Primary data: Personal interview was held with key personal of finance department.

Secondary data:

1) Published cash flows statements reports for 5 years.

2) APGENCO web site www.apgenco.com.

3) News papers like “The Hindu, Ennadu…”.

METHODOLOGY The methodology to be followed here is-

1) Preparation of cash flows tables with data of accounting year wise.

2) It is a preparation of cash budget in through cash flow statements,

annual reports.

3) Data analysis through the presentation of tables.

Opinion based on result of the analysis with conclusion.

http://www.apgenco.com/

LIMITATIONS OF THE STUDY:

1) As the time span of the study is only six weeks gathering of information

is not possible.

2) There is a less scope of gathering the confidential data as we are only

vocational trainees.

3) During the project period as some executives were busy with there

work they could not offer to give full information.

4) The additional data is not sufficient to evaluate the cash management.

Theoretical Concepts

INTRODUCTION TO FINANCIAL MANAGEMENT

In the early ears of its evaluation it was created rising of funds. In the

current year literal pertaining to financial management a border scope. So as to

include in additional to procurement of funds efficient uses of recourses

universally recognized. The term nature as applied to financial management

refers to its relationship with the closely related fields of economics and

accounting its functions, scope.

DEFINITIONS:

“Financial management is concerned with the efficient use of an

important economic resources namely capital funds”.-soloman

“Financial management is the application of planning and control

function to the finance functions”.—Howard and upon

FINANCE FUNCTIONS

It may be difficult to separate the finance functions from

production; marketing and other functions themselves can be readily identified.

The functions of raising funds, investing them in assets and distrusting returns

earned from assets to shareholders are respectively known as financial decisions,

investment decisions and dividend decision. A firm attempts the cash inflows and

outflows while performing these functions, this is called liquidity decision and we

may add it to the list of important finance decisions or functions. Thus finance

function includes:

1) Long term asset or investment decision.

2) Capital-mix or financing decision

.

3) Profit allocation or dividend decision.

4) Short term asset or liquidity decision

Scope of finance:

Firm create manufacturing capacities for producing of goods, some

provide service to customer. They sell their goods or service to earn profit. They

raise funds to acquire manufacturing and other facilities. Thus the three most

important activities of business firm are:

Production

Marketing

Finance

A firm as wheat every capital it needs and employees it in activities

which generate returns on invest capital.

So financial management helps to the firm to take the correct

decisions, and also helpful to firm how to utilize the economic resources likely

capital funds in the proper way .It is also controlling tool to control the financial

functions of the firm. so it is important aspect in every organization.

Nature of financial statements:

Financial statements are prepared for the purpose of presenting a

periodical review or report by the management and deal with the state of

investment in business and result achieved during the period under review.

From this it is clear that financial statements are affected by three things

1) Recorded facts .

2) Accounting convections.

3) Personal judgments.

MOTIVES FOR HOLDING CASH

The firm’s need to hold cash may be attributed to the following three

motives:

1) The Transactions motive.

2) The precautionary motive.

3) The Speculative motive.

4) The Compensation motive.

1)The Transactions motive :

An important region for maintaining cash balance is

the transactions motive. This refers to the holding of cash, to meet routine cash

requirements to finance the transactions which affirm carries on in the ordinary

course of business. A firm enters into a variety of transactions to accomplish its

objectives which have to be paid for in the form of cash. For example cash

payments have to be made for purchase, wages, operating expenses, finical

charges like interest, taxes, dividends ….

Similarly, there is a regular inflow of cash to the firm

from sales operations, returns on outside investments etc.these receipts and

payments constitute a continues tow way flow of cash. But the inflows and out

flows do not perfectly coincide, that is they do not exactly match .At times

receipts exceed outflows while, at other times, payments exceed inflows. To

ensure that the firm can meet its obligations when payments become due in a

situation in which disbursements are in excess of current receipts, it must have

adequate cash balance.

The requirement of cash balance to meet routine cash

needs is known as the transactions motive and such cash balance are termed as

transactions balances. Thus the transactions motive refers to the holding of cash

to meet anticipated obligations whose timing is not perfectly synchronized with

cash receipts. If the receipts of cash and its disbursements could exactly coincide

in the normal course of operation, a firm would not need cash for transaction

purpose. Although a major part of transactions held in cash a part may also be

in such marketable securities whose maturity conforms to the timing of the

anticipated payments such as payment taxes, dividends etc.

2) The precautionary motive:

In addition to the non synchronization of anticipated

cash inflows and outflows in the ordinary course of business. A firm may have to

pay cash for purpose which cannot be predicated or anticipated. The cash needs

at short notice may be the result of:

1) Floods, strikes and failure of important customers.

2) Bills may be presented for settlement for earlier than expected.

3) Unexpected slow down in collection of accounts receivable.

4) Sharp increase in cost of raw materials.

The cash balance held in reserve for such random and

unforeseen fluctuations in cash flow are called as’ precautionary balance’. In

other words a precautionary motive of holding cash implies the need to hold cash

to meet unpredictable obligations. Thus precautionary cash balance serves to

provide a cushion to meet unexpected contingencies. The more unpredictable the

cash flows, the large the need for such balance.

Another factor which has a bearing on the level of

such cash balances is availability of short-term credit. If the firm cash borrow at

short notice to pay for unforeseen obligations, it will need to maintain a

relatively small balance and vice versa .Such cash balance are usually held in the

form of marketable securities so that they earn a return.

3) The Speculative motive

It refers to the desire of the firm to take advantage of

opportunities which present themselves at unexpected movements and which are

typically outside the normal course of business .While the precautionary notice is

defensive in nature , in that firms must make provisions to tide over unexpected

contingencies the speculative motive represents a positive and aggressive

approach. Firms aim to exploit profitable opportunities and keep cash in reserve

to do so. The speculative motive helps to make advantage of:

An opportunities to purchase raw materials at a reduce price on

payment of immediate cash.

A chance to speculate on interest rate movements by buying

securities when interest rates are expected to decline.

Delay purchase of raw materials on the anticipation of decline

in prices.

To make purchase at favorable prices.

CASH MANAGEMENT

What is cash?

Cash is the most liquid asset, it is of vital important of daily

operations of business firms. While the preparation of corporate assets held in

the firm of cash is very small after between one percent and three percent, its

efficient management is Critical to solvance of the business in a very important

sense. Cash is the local point of fund flow in a business main view of “Life blood

of a business enterprise”.

Cash flow is the measure of your ability to pay your bills on

regular basis. It depends on the timing and amounts of money flowing into and

out of the business each week and month. Good cash flow means that the pattern

of income and spending in a business allows it o have cash available to pay bills.

Cash balance includes:

Coins and notes.

Current accounts and short term despites.

Unused bank ode’s and short-term loans.

Foreign currency and deposits that can be quickly converted

in to your currency.

It does not include:

Long term deposits.

Long term borrowings.

Money owned by customers.

Stock.

There are two primary reasons for a firm to hold cash:

1) To meet day to day transactions and

2) To protect the firm against uncertain characterizing its cash

flows.

The main aim of cash management should be maintain adequate

cash position to keep the firms sufficiently liquid and to use excess cash in some

profitable way.

Cash budgeting

Cash budgeting of short-term cash forecasting is the principal tool

of cash management. Cash budgets routinely prepared by business firms are

helpful in

-estimating cash requirements.

- planning short-term financing.

-scheduling payments in consent with capital expenditure

projects.

- planning for purchase of materials.

- developing credit policies and checking the accuracy of long

term forecasting.

Firm use multiple short-term forecasts of varying length and

details suited to meet different needs. Generally, forecasts converting periods of

one year or less are consider short-term and extending beyond one year are long-

term.

Objectives of managing cash:

The main objective managing cash are two –trade of liquidity and

profitability, deficit for each period of the planning period. Cash budget should

prepare for this purpose.

Managing of cash flows:

The flow of cash inflow and outflow should be properly managed.

Here inflow cash should be accelerated and the outflow cash should be

decelerated.

Cash management in APGENCO:

In APGENCO the forecast of receipts and payments for the

following method is prepared at the beginning of the financial year. The likely

receipts from the scale of power to APTRANSCO are projected namely sunder

debtors realizations for future supplies and payment to creditors. the control

finance and accounts wing prepare a cash flow statement of receipts and

payments for forecast is revived at the end of the month with actual and fresh

forecast is made for the next month to meet the company payments like purchase

of coal,oil,and spares ,repairs &maintenance expenses, administration expenses

and employ related expenses.

CASH PLANNING

Cash planning is a technique to plan and control the use of cash.

It protects the financial condition of the firm by developing a projected cash

statement from forecast of expected cash inflows and outflows for a given period.

The forecast may be based on the present operations or anticipated future

operations. Cash plans are very crucial in developing the overall operating plans

of the firm.

Cash planning may be done on daily, weekly or monthly basis.

The period and frequency of cash planning generally depends upon the size of

the firm and philosophy of management. Large firms prepare daily and weekly

forecasts. Medium size firms prepare weekly and monthly forecasts. Small firms

may not prepare formal cash forecasts because of the non availability of

information. But if small firms prepare cash projections, it is done for monthly

basis. As a firm grows and business operations become complex, cash planning

becomes invent able for its continuing success.

Cash inflows and outflows should be planned to project cash

surplus or deficit for each period of the planning period.

CASH BUDGET

As every transaction of the business is effected

eventually by cash, the cash budget is often the last and the most difficult

subsidiary budget to be prepared. The cash budget is a forecast of expected cash

receipts and payments for a future period. Cash forecast proceeds a cash budget.

Cash budget is the most significant device to plan

for control cash receipts and payments. A cash budget is a summary statement

of firms expected cash inflows over a projected period time period. It gives

information on the timing and magnitude of expected cash flows and cash

balance over the projected period. This information helps the finical manager to

determine the future cash needs of the firm, plan for this needs and exercise

control over the cash and liquidity of the firm.

The time horizon of the cash budget may differ

from firm to firm. Monthly cash budgets may be prepared by the firm whose

business is affected by seasonal variations. Daily or weekly cash budgets are

prepared for determining cash requirements if the flow shows extreme

flucations. Cash budgets for a longer intervals may be prepared if cash flows are

relatively stable.

Cash forecast are needed to prepare cash budgets.

Cash forecasting may be done on short-term basis. Generally forecasting

covering periods of one year or less are considered short-term, those extending

beyond one year considered as long-term.

This forecast may also be useful in determining the

margins or minimum balances to maintain with banks. Still other users of this

forecast are:

- To determine operating cash requirements.

-To anticipate short-term financing.

-To manage investment of surplus cash.

-Planning reductions of short-and long term debt.

-Scheduling payments in connection with capital expenditures

programmers.

-Planning forward purchases of inventories.

-Checking accuracy of long range cash forecasts.

-Taking advantage of cash discounts offered by suppliers.

-Guiding credit policies.

This statement is prepared in three stages as given below:

- Taking the opening of a cash balance.

- From that revenue items and capital receipts.

- From that less capital payments and revenue payments.

MANAGEMENT OF CASH FLOWS

MEANING OF CASH FLOW ANALYSIS:

A cash flow analysis is more useful because it gives detailed

information to the management about the sources of cash inflows and outflows.

Cash flow analysis means to reveal the cash outflows and cash inflows in a

particular period. An analysis of cash flow is useful for short-run planning.

DEFINATION OF CASH FLOW ANALYSIS:

A cash flow analysis can be defined,

“As a statement which summarizes sources of cash inflows

and uses of cash outflows of a firm during a particular period of time say a

month or a year”

Such statement can be prepared from the data made available

from comparative balance sheets profit and loss accounts and additional

information.

It is an essential tool for short-term financial analysis and is

very helpful in the evaluation of current liquidity of a business concern. It helps

the business in the efficient cash management and internal financial

management. It is evaluating the cash inflows and outflows of company’s during

a particular period. It reveals the cash position of the company.

OBJECTIVES OF CASH FLOW ANALYSIS:

1) The economic decisions that are taken by the users require

an evaluation of the ability of an enterprise to generate cash and cash equivalents

and the timing and certainty of their generation.

2) It deals with the provision of information about the

historical changes in cash and cash equivalents of an enterprise by means of cash

flow statement which classifies cash flow during the period from operating

investing and financing activities.

3) Information about the cash flows of an enterprise is useful

in providing users of financial statements with a basis to assess the ability of the

enterprise to generate cash and cash equivalents and the needs of the enterprise

to utilize those cash flows.

SCOPE OF CASH ANALYSIS:

1) An enterprise should prepare a cash flow statement and

should present it for each period for which financial

statements are resented.

2) Users of an enterprise’s financial statements are

interested in how the enterprise generate and uses cash

and cash equivalents .This is the case regardless of the

nature of the enterprise activities and the irrespective of

whether cash can be viewed as the product of the

enterprise as may be the case with a financial enterprise.

LIMITATIONS OF CASH FLOW ANALYSIS:

In spite of various uses of cash flow statement, it has the

following limitations:

1) Cash flow statements give the main items of inflow and out

flow of cash only and do not show the liquidity position of the company.

2) This statement is not a substitute of income statement which

shows both cash and non-cash items. Therefore net cash flow does not

necessarily mean net income of the business.

3) It cannot replace funds flow statements as it cannot show

the financial position of the concern in totally.

This statement is prepared in three stages given below:

1) Net profit before taxation and extraordinary items.

2) Cash flows from operating, investing and financing

activities.

3) Cash flow statement.

Data Analysis

ANALYSIS OF CASH BUDGETS

CASH BUDGET FOR THE YEAR 2004:

PARTICULARS AMOUNT

Cash opening balance 4659.61

ADD:

a) Revenue from sales of power:Revenue from sales of power 406948.76Revenue from inter state scale of power 42.09 406990.85b) Capital receipts:

Net cash from operating Activities 73059.50 Sale of fixed assets 335.33 Grants for accelerated capital 92.08 Interested received 9511.14 Sale of investment 1018.00 Proceeds from brrowings 321061.65 812068.55 807408.94

LESS:a) Capital payments:

Acquisition of fixed assets 43227.53

Repayment of borrowings 26757.71Net out flow of employee Related funds 6307.53Interest paid 73026.24Lease rentals 13716.03 40355.04

403873.9

b) Revenue payments : Generation of power 201012.15 Purchase of power Lease rentals 15272.14 Closing balance of the year 4659.61


PARTICULARS AMOUNT


ADD:

a) Revenue from sales of power:Revenue from sales of power 415639.45Revenue from inter state scale of power 98.39Revenue from o & m contracts 1517.72 417255.56b) Capital receipts:

Net cash from operating Activities 136365.14 Sale of fixed assets 704.93 Grants for accelerated capital 36.26 Interested received 11176.13 Proceeds from brrowings 139444.67 704982.26 711184.96LESS:

b) Capital payments:

Acquisition of fixed assets 48785.00Repayment of borrowings 154419.89Net out flow of employee Related funds 4.03

Interest paid 78876.16Lease rentals 10162.16 292247.95

418937.01 b) Revenue payments : Revenue from sale of power-APTRANSCO 415639.45 Revenue from inter state sale of power 98.39 Revenue from o & m contracts 1517.72 Closing balance of the year 1681.45


PARTICULARS AMOUNT


ADD:


Net cash from operating Activities 121928.89 Sale of fixed assets 37.59 Interested received 12404.28 Net outflow of employee related funds 12.94 Proceeds from borrowings 71940.57 614792.33 616473.78LESS:

c) Capital payments:


Repayment of borrowings 56985.86Investment in joint venture-APPDCL 2.50Interest paid 71812.53Lease rentals paid 1574.97 220533.25

395940.53 b) Revenue payments : Revenue from sale of power-APTRANSCO 386690.69 Revenue from inter state sale of power 95.80 Revenue from o & m contracts 2081.57 Closing balance of the year 7072.47


PARTICULARS AMOUNT


ADD:


Net cash from operating Activities 187822.97 Sale of fixed assets 756.01 Interested received 8472.64 Sales of investment 17300.00 Proceeds from borrowings 84271.51 718622.64 725695.11LESS:

d) Capital payments:


Repayment of borrowings 46226.34Investment in joint venture-APPDCL 400.00Interest paid 56756.24Lease rentals paid 160.20 283733.05

441962.06 b) Revenue payments : Revenue from sale of power-APTRANSCO 417649.05 Revenue from inter state sale of power 90.56 Revenue from o & m contracts 2259.90

Closing balance of the year 3708.39

2. CALCULTION OF NET CASH FROM OPERATING ACTIVITIES:

Particulars: Amount

Operating profit after tax from operating activities 169680.10

Add:

Inventories 13812.24

Sundry receivables 98879.32Loans and advances 661.27 113352.83 56327.27

Less:

Sundry receivables 16625.54Sundry creditors& liabilities 106.69 16732.23

Net cash from operating activities 73059.50

3. Cash Inflows and Cash outflows of cash during the year ended 31st march2004:

Particulars Rs. Lakhs Particulars Rs. lakhs

Opening cash balanceNet Cash flow fromoperating activities

Cash inflow from investing activities:

Sale of fixed assets

Sale of investments

Interest received Grants for accelerated

Proceeds from Borrowings

4659.61

73059.50

335.33

1018.00

9511.14

92.08

321061.65

Acquisition of fixed assets Repayment of borrowings

Net outflow of employeerelated funds

Interest paid

Lease rentals

Closing balance

43227.53

267257.71

6307.53

73026.24

13716.03

6202.27

c409737.31 409737.31

CASH MANAGEMENT IN THE YEAR 20041)calculation of operating profit: Paticulars Amount Net profit before tax 1192.10 ADD:

Preliminary expenses 16.00Depreciation 72362.46Interest expenses 92418.49Lease rentals 15272.14 180069.09

LESS:

Interest income 11263.26Profit on sale on 317.83Fixed assets 168488

Operating profit before working capital 169680.10 (-)income tax 0.00

Net of operating profit after tax 169680.10





Sale of fixed assetsInterest received Grants for capital work


6202.27

136365.14

704.93

11176.13

36.26

139444.67



Interest paid

Lease rentals

Closing balance

48785.00

154419.89

4.03

78876.87

10162.16

1681.45

c293929.4 293929.4


Particulars: Amount


Add:

Inventories 5959.96

Other current assets 2026.14Loans and advances 3006.29 10992.39 174762.41

Less:

Sundry debtors 19184.12Sundry creditors& liabilities 19213.15 38397.27




LESS:

Interest income 10977.14Profit on sale on 61.32Fixed assets 155482.33







Sale of fixed assetsSales of investmentsInterest received Grants for capital work


1681.45

121928.89

37.59

19600.00

12404.28

36.26

71940.57



Lease rentals

Closing balance

90157.39

56985.86

12.94

1574.97

7072.47

c227605.72 227605.7

2


Particulars: Amount


Less;

Inventories 6053.79

Other current assets 21133.40Loans and advances 1019.02 6236.23 153033.29

Add:

Sundry debtors 5217.21Sundry creditors& liabilities 3917.21 31104.4




LESS:




CASH MANAGEMENT IN THE YEAR 20071)calculation of operating profit:

Paticulars Amount Net profit before tax 28800.80 ADD:


LESS:





Particulars: Amount


Add;

Inventories 2646.03

Sundry debtors 32278.53

Sundry creditors& liabilities 34078.45 69003.01

216348.24

Less:

Other current assets 20061.57

Loans and advances 8463.70






Sale of fixed assetsSales of investmentsInterest received Proceeds from Borrowings

7072.47

187822.97

756.01

17300.00

8472.64

84271.51

Acquisition of fixed assets Repayment of borrowingsInvestment in joint venture APPDCL

Net outflow of employeerelated fundsinterest paid

Lease rentals

Closing balance

180190.27

46226.34

400.00

18254.16

56756.24

160.20

3708.39

c305695.6 305695.6


PARTICULARS AMOUNT


ADD:

a) Revenue from sales of power:Revenue from sales of power 459083.97

Revenue from inter state scale of power 47.63Revenue from o & m contracts 2598.62 461730.22b) Capital receipts:

Net cash from operating Activities 186809.60 Sale of fixed assets 13.27 Interested received 7748.23 Sales of investment 59000.00 Proceeds from borrowings 217920.35 933221.67 936930.06LESS:

e) Capital payments:

Acquisition of fixed assets 275506.96Repayment of borrowings 109982.21Investment in joint venture-APPDCL 5800.00Interest paid 65931.65Net flow of employee related funds 13996.61 471217.43

465712.63 b) Revenue payments : Revenue from sale of power-APTRANSCO 459083.97 Revenue from inter state sale of power 47.63 Revenue from o & m contracts 2598.62 461730.22 Closing balance of the year 3982.41

CASH MANAGEMENT IN THE YEAR 2008

1)calculation of operating profit: Paticulars Amount Net profit before tax 33150.37 ADD:

Preliminary expenses 119.03Depreciation 69095.73Interest expenses 65751.92 134966.68

LESS:

Interest income 3680.67Prior period &extraordinary items 1345.86Profit on sale on 4.33Fixed assets 129935.82




Particulars: Amount


Add:

Sundry receivables 16748.10Loans and advances 12204.22

28952.32 187719.92

Less:

Inventories 13149.40

Other Current assets 48285.05 ,

Sundry creditors& liabilities 57832.05 119266.14






Sale of fixed assets

Sale of investments

Interest received


3708.39

186809.60

13.27

59000.00

7748.23

217920.35



Interest paid

Investment in Joint Venture APPDCL

Closing balance

275506.96

109982.21

13996.61

65931.65

5800.00

3982.41

475199.84 475199.84

finding & Suggestions

SUGGESTIONS

1) From the above observation it is suggested that the company has to implement SAP (finance) among the station in APGENCO to increase the financial performance of the organization as whole.

2) It is suggested that implementing the techniques of cost of control and cost of reduction.

3) Inter-firm comparison may lead the concern to the determination of appropriate sources and use of funds, appropriate policies as regards management and suitable production policy.

main certificates

Documents