BUNDELKHAND INSTITUTE OF ENGINEERING AND

TECHNOLOGY
JHANSI

SUMMER TRAINING PROJECT REPORT

ON
“WORKING CAPITAL MANAGEMENT IN NTPC”
Undertaken At NTPC

Submitted in fulfillment of the requirement for the award of

degree of
MASTER OF BUSINESS ADMINISTRATION
DR. APJ ABDUL KALAM TECHNICAL UNIVERSITY

SUBMITTED TO:- SUBMITTED BY:-

PRASHANT KUMAR SINGH

DR. SUMAN YADAV ROLL.NO ( 1704370044)
(CO-ORDINATOR, MBA)
 PREFACE

A professional course in (MASTER OF BUSINESS ADMINISTRATION) is incomplete unless

the theoretical knowledge acquired in the class room is backed up by practical exposure, as
theories alone do not give perfection to any discipline. The gap between theory and practiced is
bridged by the Project training, which has been an integral part of the syllabus.

This present Project report is an image of what I have done and observed during my research
project in “National Thermal Power Corporation Limited”.

I was assigned a project “WORKING CAPITAL MANEGEMENT”.

This report is the result of the work done during the training period.

I have tried my level best to be as a systematic as possible and to avoid any sort of biases.
 ACKNOWLEDGEMENT

A lot of effort has gone into this training report. My thanks are due to many people with whom I
have been closely associated.

I would like to thanks all those who have contributed in completing of this project. First of all, I
would like to send my sincere thanks to Mr. Nitin Sonkar for her helpful hand in the completion
of my project.

I would like to make special note of thanks to Mr. Nitin Sonkar for providing me an
opportunity for training in NTPC and enriching, enlighten me with his valuable insights,
innovative ideas and nurturing guidance.

I would like to thank my entire beloved family & friends for providing me monetary as well as
non – monetary support, as and when required, without which this project would not have
completed on time. Their trust and patience is now coming out in form of this thesis.
 DECLARATION

I hereby declare that the Project report titled “ANALYSIS OF WORKING CAPITAL
MANAGEMENT” is my original work and has not been published or submitted for any degree,
diploma or other similar titles elsewhere. This has been undertaken for the purpose of partial
fulfillment of requirement for the award of the degree of Master of Business Administration
(M.B.A).

Signature of the Student:

Place: NOIDA

Date:
 EXECUTIVE SUMMARY

This report aims at providing an insight into finance related operations at NTPC Ltd which were
studied in detail during the course of the internship. NTPC is India’s largest energy
conglomerate. Established on 7th November, 1975, it became a Maharatna company (one of the
four PSEs to be awarded this status) in 2010. NTPC is ranked 400th in the 2016 Forbes Global
2000 rankings of world’s biggest companies.

Power generation and operation of power plants involves huge costs, bulk supply of materials,
installation, commissioning and maintenance of plants and offices. For convenience and to
ensure consistency, the company has a divided and listed the steps and procedures involved as its
‘Procurement and Works Policy’. This policy lays down the broad guidelines to be followed in
acquisition of equipment, materials and services for the organisation. This policy permits
centralised policy making, decentralised execution and administration with a view to achieving
the organisational goals in the most efficient and effective manner. NTPC awards contracts
through extensive tendering and bidding processes. This report aims at providing a description of
the same.

The report is basically concerned with the involvement of Finance Concurrence department in
this procedure. The Finance Concurrence department validates cost estimates and provides
necessary approvals. Any proposal with financial implication needs approval from the Finance
Concurrence department. The departments’ area of work involves arithmetic error location,
financial analysis, bids evaluation, vetting bid documents, cases on audit of contracts,
preparation of monthly information statements and letter of awards.

All activities undertaken are regulated by ‘Delegation of Power’ guidelines of the organisation
which states the competent authority whose approval is required at various stages and at various
scales of operations.

The procurement process starts with the Indenting department, mother department, putting forth
the proposal along with various relevant cost estimates. This proposal then reaches the Finance
Concurrence department for approval. Once approved, procurement action is initiated. This
process involves invitation of tenders.
 TABLE OF CONTENTS

Serial Subject Page no.

.no

1 Introduction 1-3

2 Company profile 4-9

3 Research objective 10-11

4 Research methodology 12-13

5 Data analysis &Interpretation 14-40

6 Finding and Conclusion 41-42

7 Limitation & Recommendation 43-45

8 bibliography 46-47