in Satluj Jal Vidyut Nigam Limited Himfed Building New Shimla (June 22nd to 3rd August, 2009)

SUBMITTED TO:Department of Business

SUBMITTED BY:SURBHI THAKUR M.B.A (II ND SEMESTER) Administration ROLL NO. H- 2008- MBA-38

DR. Y.S. PARMAR UNIVERSITY OF HORTICULTURE & FORESTRY, NAUNI, SOLAN, H.P.

ACKNOWLEDGEMENT

I am honoured to be attached with the prestigious organization. I extend my sincere gratitude to the management of Satluj Jal Vidyut Nigam Limited for availing me and giving me an opportunity to work with them and assisting me in my project when required. I would like to express my sincere gratitude to Mr. Pawan Verma, Sr. Manager and HRD, SJVNL, New Shimla and Mr. Anurag Bhardwaj, for their valuable guidance and timely advice, amazing level of co-operation, sympathy and communication during my training period. SURBHI THAKUR M.B.A . II SEMESTER.

INDEX
CONTENTS 1. COMPANY PROFILE 2. ORGANIZATIONAL STRUCTURE 3. ANALYSIS OF ANNUAL REPORT 4. KEY OPERATIONAL PROCESS
5.

SWOT ANALYSIS

6. CONCLUSION 7. SUGGESTION & RECOMMENDATION 8. PERSONAL LEARNING FROM THE GIVEN TRAINING 9. REFERENCES 10. ANNEXURE

Sjvnl Profile:
Sjvnl was established on May 24,1988 earlier it was called as Naptha Jharki Power Corporation Ltd. It has joint venture with Govt. of and the Govt. of Himachal Pradesh. Sjvnl plans to investigate, organize, execute, operate and maintain hydroelectric power projects in the Satluj river basin in the state of Himachal Pradesh and at any other place. The 1500 MW Naptha Jhakri Hydroelectric Project (NJHEP) was the first project undertaken by Sjvnl for execution. It was the largest under ground hydro-electric project in the country. The generation component of Naptha Jhakri Hydro Electricity Project (NJHEP) in Shimla and Kinnaur District of Himachal Pradesh (H.P.) was sanctioned in April 1989 for the Naptha Jhakri Power Project now known as SJVNL, NJPC effectively took over execution of NJHPP in August 1992. NJHPP envisages to harness the hydro power potential in the upper reaches of river satluj in the south west of Himalayas. The Project stretches over a length of about 50KM from the dam to the power house, on the Hindustan Tibet Road (NH-22) which also connect the rail head to the project. The major civil works of Naptha Jhakri Hydro Electric Power Project was awarded during 1993 and the construction commenced in 1994.

Financial Program Of This Project

Naptha Jhakri Project Cost To Completion Cost per megawatt World Bank Loan ECBS Other Domestic Loans Loan reconstructed/ prepaid Benefits loan substitution 8187.71 crore 5.46 Crore US $ 437 million US $ 300 million 1748 crore 2378 crore 550 crore

NEW PROJECTS IN H.P

Rampur Hydro-Electric Project Luhri Hydro-Electric Project Dhaulasidh Hydro-Electric Project (412MW) (700MW) (1020MW)

Projects Benefits
Besides the social & economic upliftment of people in it vicinity, the 1500 MW NJHEP will generate 6950.88 MU of electrical energy in a 90% dependable year with 95% machine availability & 7447 MU in a average year. It is also providing 1500MW of valuable peaking power to northern grid.

Out of the total energy generated, 12% is supplied free of cost to home state i.e. H.P. From the remaining 88% energy generation, 25% is supplied HP at bus bar rates. Balance Power allocation to different states/Uts of northern region by ministry of power.

Positional Status
Sjvnl has been conferred with prestigious Mini Ratna category-1status by Department of Public Enterprise on May 12, 2008, Meeting all the parameters fixed by the department of Public Enterprise, SJVN has bagged the coveted title which will make it eligible for enhanced delegation of powers and freedom of working . The Mini Ratna status grants enhanced autonomy and delegation of financial power to the profit making companies under certain laid down guidelines and eligibility conditions to make them efficient and competitive. These Mini Ratna companies are in two categories namely Category-I and Category-II. Sjvnl has been conferred with the category-I status as a result of its commendable performance.

Schedule A status:
Meeting the criteria laid down by the department of public enterprise, and qualifying the qualitative and quantitative parameters viz. investment, capital employed, net sales, profit employees and also factors of national importance, complexities of problem faced, level of technology adopted prospect for expansion and diversification, competitiveness etc. Sjvnl has been upgraded as Schedule A PSU on May 30, 2008.

Mission of SJVNL
To plan, investigate, organize, execute, operate and maintain hydropower projects in the Satluj River Basin in Himachal Pradesh and at any other place in INDIA and ABROAD.

Vision of SJVNL
To make INDIA A Fountainhead of hydropower and the energy source of the future by reorganizing development with passion and professionalism for sustainable Viability of the Corporation on Bed Rock of SOUND Commercial PRINCIPLES.

Objectives of SJVNL
In the pursuit of above mission, the company has set following objectives: 1. 2. 3. 4. Operating and maintaining power stations with maximum performance efficiency. Establishing and following sound business, financial and regulatory policies. Taking up the power projects. Completion of the new projects allocated to SJVNL, in an efficient and cost effective manner. 5. Dissemination of available in-house technical and managerial expertise to other utilities/ projects.

6. Creating work culture and work environment conductive to the growth and development of both the organization and the individuals through introduction of participative management philosophy. 7. Fulfilling social commitments to the society. Achieving constructive cooperation and building personal relations with stake holders, peers, and other related organizations. 8. use of the best project management practices for the project implementation by applying latest universally accepted project management techniques and by enabling its engineers to become certified Project Managers through further trainings. 9. striving clean and green projects environments with minimal ecological and social disturbances. 10. To strive for acquiring Nav Ratna status. 11. To explore diversification opportunities in Thermal, Nuclear or any other power generation projects including exploitation of resources input such as coal mining. 12. To take up transmission and distribution business and take up power trading to sell power product from merchant power station. 13. To manage load dispatch centers.

Research And development Status

In order to enhance the quality of technical inputs / skills gained out of the experience of execution of the project a R&D cell now been created to identify the areas in project execution and operation and maintenance on which further R&D can be carried out so as to utilize the enhanced knowledge for execution / operation of the power plant in the country. In addition to the in house training institutes/ cells, the organization sends its employees to the top most and reputed institutes all over the country for training. This department deals in training of the employees. The employees serving at the corporate office and at projects sites both are considered for training. There is a separate policy which has been made and all the work in the department is done by the guidelines given in the policy.

Product line
SJVNL deals with hydropower generation and trying to be entered Wind Power.

Market Share
SJVNL does not have any of its share with public. It has a joint venture with govt. of India and govt. Of Himachal Pradesh. It has a equity ratio of 3:1 in which 75% share is of central government and 25% is of state government.

Size Of SJVNL
In terms of employees (overall in position man power summary) SJVNL designation Executive Supervisors Workmen total on regular 495 97 416 1008 Deputation total from HP govt. 5 500 2 4 1 99 420 1019 On deputation from Overall total HPSEB/ HP HPSE HP govt. Total SJVNL deputation B + HPSEB 91 0 91 586 5 95 126 0 126 223 2 124 488 5 493 904 9 705 5 710 1713 16

Grand total 591 225 913 1729

Size in terms of Projects

1. Nathpa Jhakri HEP 1500 MW 2. Rampur HEP 412 MW 3. Luhri HEP 775 MW 5. Dhaulasidh HEP 40 MW 6. Devsari HEP, Uttrakhand 252 MW 7. Naitwar Mori HEP, Uttrakhand 56 MW 8. Jakhol Sankri HEP, Uttrakhand 45 MW 9. Tipaimukh HEP, Manipur 1500 MW (Joint Venture with NHPC Ltd.) 10. Kholongcchu HEP, Bhutan 486 MW 11. Wangcchu HEP, Bhutan 900 MW 12. Arun III Nepal 900 MW

Competitors
SJVNL faces major competition from privet hydropower generation units like TATA POWER, RELIANCE POWER, ADANI POWER, JAYPEE POWER, ESSAR POWER, L&T POWER, etc. SJVNL also faces a little amount of competition from other government undertaking hydropower generation units like NTPC, NHPC, etc. and also from HPPCL which is a government hydropower generation unit.

Suppliers
There are no as such suppliers of SJVNL as it deals with hydropower generation and not a raw material based organization. For the Technical inputs of the project,

SJVNL depends on various suppliers. Some of the suppliers and the items supplied by them are given below:

Sr.no. 1 2 3 4 5 6 7 8

Description of items and name of the supplier Spares for control and protection system from Alson Power Generation, Germany Servo motor from M/S VA Tech. Hydro, Switzerland Spares for generator from M/S VA Tech. Hydro, Switzerland Spares for butterfly valves and EOT crane from M/S GE energy, UK Spares for turbine etc. from M/S GE energy, UK Francis Runner with Rotating hard coated Labyrinth from M/S VA Tech. Germany (global basis) Procurement of IMS from M/S Tech. Alstom Power Gen. Germany(OES) VAST Equipment from M/S HCL, New Delhi (Domestic)

Amount EURO 24,09,964.29 EURO 8,93,792.00 EURO 6,10,796.42 GBP 16,996.85 NOK 50,71,092.03 EURO 9,227,097.00 EURO 1,148,895.00 Rs. 1.67 Crore

Customers/ clients
Hydropower produced by SJVNL is supplied to the following beneficiaries states of northern of Northern Region : Sr. no. 1 2 3 4 5 6 7 8 9 10 State Haryana H.P. J&K Punjab Rajasthan Uttar Pradesh Uttranchal Chandigarh Delhi Unallocated quota at the disposal of the central Govt. Total Allocation (MW) 64 547 105 114 112 221 38 08 142 149 1500 (MW) Percentage to the capacity installed 4.27 36.47 7.00 7.60 7.47 14.73 2.53 2.53 9.47 9.93 100

Awards And Recognitions

On August 28,2006 SJVNL received industry Excellence Award and Udyog Rattan Award of the institute of Economic studies New Delhi.

August 31, 2006 SJVNL received Green Tech Silver Award for upgrading ecological balances in the projects of the company. The upcoming Rampur Hydroelectric Project 412 MW, also received the Greeen Tech Bronze award for institutional organized dumping activities. On September 3,2006 the Satluj Jal Vidyut Nigam Limited received Industry Excellence award from Delhi Telgu Academy. Golden Peacock Eco-Innovation award 2004. Green Tech Silver award on Environment management 2004. Green Tech Silver award 2005-2006. Golden Peacock award 2007. Green Tech gold award in hydropower sector for public sector SJVN has been awarded the prestigious 9th Annual Green Tech environment excellence gold award 2008. ISO 9001:2000-February, 2005 :- ISO 9001:2000 certificate was awarded toSJVNL corporate office by DET NORSKE VERTIAS AS (DNV) under accreditation from National Accreditation Board for Certification Bodies (NABCB) in recognition of quality management system of SJVNL beings in conformity with Quality Management System Standard ISO 9001:2000 ISO 14001:2004 -April 2006 :- in recognition of Environment Management Practices, Naptha Jhakri, power station was granted. ISO 14001:2004 license by the Bureau of Indian standards for the period 28th July,2006 to 27th July 2009.The license of Environmental Management System certification is in respect of

the activities covered under the schedule of ISO 14001:2004 which also includes hospitals and dispensaries.

Organizational structure
SJVN has evolved a two tire organization structure for itself, at the corporate and the project level at the corporate level the C.M.D. and other functional directors of Personnel, Finance, Civil and electrical division are supported by various departmental heads dealing primarily with strategic and macro level policy issue .At the project level the General Manager (project) is assisted by the various departmental heads in respect of project related micro level activities .The General Manager (project) report to the Functional Director .

Board of Directors Chairman & Managing Director Company Secretary Director Civil

CMD Sectt.

Director Finance

Director Personnel

Director Electrical

Vigilance CVO

Internal Audit

HOD ( Corporate Communication)

HOD ( F&A )

HOD ( IT & C )

HOD ( Commercial )

HOD (QA & I )

HOD ( Electrical Design )

The organizational structure of SJVNL consists of various departments / divisions which are as follows :1. Full time board of directors. 2. Placement of employees in the organizational structure. 3. Corporate contact services division. 4. Site quality control departments. 5. Placement for project implementation division and technical services (Design Engineering).

FULL TIME BOARD OF DIRECTORS :The full time board of directors of the corporations are as follows:-

ORGANIZATIONAL STRUCTURE
DIRECTOR (FINANCE) DIRECTOR (ELECTRICAL) )

DIRECTOR (CIVIL)

DIRECTOR (PERSONNEL)

For carrying out its business ,SJVNL is headed by a full time chairmen ,a managing director and four functional directors viz director (personnel) ,director (finance) ,director (electrical) and director (civil). In addition there are three senior officers of the Govt. of the India and two senior officers of the Govt. of Himachal Pradesh, as a part time. The present C.M.D. is Mr. H.K. Sharma. Department Vigilance HOD Sh. K.C. Sadyal (chief vigilance officer) Coordination and corporate Monitoring Sh. S. P. Singh GM Corporate Electrical Contracts Sh. Romesh Kapoor(DGM) Corporate Civil Contacts Sh. D.K. Chauhan(AGM) Business Development + Management Sh. Sanjay Uppal (DGM) Services, New Delhi Corporate Planning Sh. H.B. Sahay (AGM) P&A Sh. N.L.Sharma(ED) Finance & Accounts Sh. K.S.Malothra(GM F&A) Electrical Design Sh. S.P.Pathak(GM) QA &I Sh. R.K.Bansal(GM)

Consultancy Mechanical & Gates IT & C

Sh. R.N.Sharma Sh. Praveen Verma (DGM) Sh. R.K.Bansal(GM)

Information Sharing
Information sharing takes place from 1. Higher to lower level 2. Horizontal level 3. Lower to higher level 1. Higher to lower level:In this level information flows from higher level to lower level i.e. from board of Directors to Chairman and managing director, from them to CMD Secretary, Company Secretary, to the Directors of various departments and to vigilance CVO. From the Directors of the concerned departments information flows to concerned HODs and from the HODs it flows to the employees of the concerned department. The information which flows from higher to lower level is more reliable and accurate. 2. Horizontal level:In this level information flows lateral way i.e between CMD secretary and Company Secretary, between Directors of various departments, between HODs etc. 3.Lower to higher level:In this level information flows from bottom to top level i.e. from workers to supervisors then from supervisors to HOD then from HOD to Director of concerned department then from the Director to MD then from MD to BODs. The information supplied may or may not be reliable and accurate. Information exchange takes place through following medium: 1. 2. 3. 4. 5. 6. House Journals Media (news paper and radio) Annual Reports Booklets, Brochures office order and circulars Personnel Notes

MEDIUMS OF INFORMATION EXCHANGE

a. Higher to lower level 1. Messages (GMG) 2. Memos

3. circular b. Horizontal level 1. office order 2. House Journals 3. Internal office memos c. Lower to higher level 1. Request letters

Frequency of information flow and monitoring

a. SJVNL undertake to submit quarterly reports on various performance area with in 30 days of the end of the quarter to the ministry of power. b. SJVNL Board will ensure quarterly internal monitoring of the performance against the MOU target. c. Monthly Flash Report. d. SJVNL undertakes to submit quarterly Instrumentation certificating the stability of the structure to the board. reading monitoring report

e. Monthly progress report to CEA, MOP, planning Commission/Ministry of statistics and Programme Implementation. f. Monthly status fiscal/ Financial including utilization of external assistance to MOP/ Planning commission.

ANALYSIS OF ANNUAL REPORT Meaning of financial statements

Financial statements are summarized statements of accounting data produced at the end of the accounting process by an enterprise through which it communicates accounting information to the external users. The external users can be investors, lenders, suppliers, and trade creditors, customers, government and there agencies, public at large and employees. Customarily, a set of financial statements includes:1) A balance sheet 2) A profit and loss account 3) Schedules and notes forming part of balance sheet and profit and loss account

ANALYSIS OF SHORT TERM FINANCIAL POSITION OF SJVNL

1) Liquidity Ratio 2) Current Assets Movement OR Efficiency Ratio LIQUIDITY RATIO CURRENT RATIO = current assets Current Liabilities For year 2007 Current assets = 117043 Current liabilities = 69317 C.R. = 117043 69317 =1.68 :1 For year 2008 Current assets = 156244 Current liabilities = 108181 C.R. = 156244 108181 = 1.44 :1

For year 2009 Current assets = 223550 Current liabilities = 124165 C.R. = 223550 124165 = 1.80 : 1 The current ratio for the years 2007, 2008 and 2009 are 1.68:1, 1.44 :1 and 1.80 : 1 respectively. As per the conventional rule, a current ratio 2:1 or more is considered satisfactory. The current ratio of sjvnl is acceptable and the firm is liquid and has ability to pay current obligations.

QUICK OR ACID TEST RATIO

Quick ratio= quick / liquid assets Current liabilities Quick assets= cash & bank balance + other current assets + loans and advances + sundry debtors

For year : - 2007

quick assets= 14082 +62 104 +2353 +32633 = 111172 current liabilities = 69317 Q.R. = 111172 69317 = 1.60 :1

For year : - 2008

Quick asset = 11609 +69360 +3286 +66626 =150881 current liabilities = 108181 Q.R. = 150881 108181

=1.39 :1

For Year : - 2009

Quick asset = 36318+127144+8257+46246 = 217965 Current Liabilities = 124165 Q.R. = 217965 124165 = 1.76 : 1 quick ratio 1:1 is considered to represent a satisfactory current financial condition. SJVNL has quick ratio of 1.60:1, 1.39:1 and 1.76:1 for year 2007, 2008 and 2009. which means company is liquid and has the ability to meet its current or liquid liabilities in time.

ABSOLUTE LIQUID RATIO:-

Absolute Liquidity Ratio = cash and bank balances Current liabilities

FOR YEAR 2007

Cash and bank balances = 62104 Current liabilities = 69317 Absolute Liquidity ratio = 62104 69317 = 0.89

FOR YEAR 2008

Cash and bank balances = 69360

Cash and bank balances = 108181 Absolute Liquidity ratio = 69360 108181 = 0.64 The absolute liquid ratio for the years 2007 and 2008 are 0.89 and 0.64 the norm for this ratio is 50%. Thus we can say that absolute liquid ratio of SJVNL in 2007 is very good but in 2008 it declines.

EFFICIENCY RATIO Working capital turnover ratio

Working capital turnover ratio indicates the velocity of the utilization of net working capital. This indicates the number of times the working capital is turned over in the course of year. This ratio measures the efficiency with which the working capital is being used by the firm. Working capital turnover ratio = sales working capital

FOR YEAR 2007

Working capital = 117043 69317 = 47726 Sales = 160971 Working capital turnover ratio = 160971 47726 = 3.37

FOR YEAR: 2008

Working capital = 156244 - 108181 = 48063 Sales = 150426 Working capital turnover ratio = 150426 48063 = 3.12

The Working capital turnover ratio for the year 2007 and 2008 are 3.37 and 3.12 respectively. It indicates that in 2007 the working capital is efficiently utilized by the firm than in 2008.

PROFITABILITY RATIOS Gross profit ratio:

This ratio expresses the relationship between gross profit and sales. It indicates the average spread between the cost of goods sold and the sales revenues. Higher ratio is always considered good and serves as an index of higher profitability. Gross profit ratio = gross profit *100 sales Gross profit= sales generation, administration and other expenses.

FOR YEAR: 2007

Gross profit = 160971 14010 = 146961 sales = 160971 Gross profit ratio = 146961* 100 160971 = 91.3

FOR YEAR: 2008

Gross profit = 150426 10643 = 139783 Sales = 150426 Gross profit ratio = 139783 * 100 150426 = 92.9 In 2007 Gross profit ratio is 91.3 and in year 2008 in Gross profit ratio indicates that in 2008 the firm becomes more efficient in its production. is 92.9 which

Office Expense ratio :Office Expense ratio = office and administration expenses * 100 sales

FOR YEAR 2007

Office and administration expenses = 14010 Sales = 160971 Office Expense ratio = 14010 * 100 160971 = 8.70 %

FOR YEAR: 2008

Office and administration expenses = 10643 Sales Office Expense ratio = = 150426 10643 * 100 150426 = 7.07 % The Office Expense ratio in year 2007 is 8.70 % and in 2008 is 7.07%. this indicates that the administrative expenses of SJVNL in 2008 has decreased which means that in 2008 the profitability of the firm has increased.

NET PROFIT RATIO

Net profit is obtained when operating expenses, interest and taxes are subtracted from the gross profit. The net profit ratio is measured by dividing Net Profit after tax by sales. Net profit ratio = net profit after tax * 100 sales

For year: 2007

Net profit after tax = 73271 Sales = 160971 Net profit ratio = 73271 * 100 160971 = 45.51%

FOR YEAR: 2008

Net profit after tax = 76451 Sales Net profit ratio = 150426 = 76451 * 100 150426 = 50.82 % Net profit ratio for year 2007 was 45.5% and for year 2008 was 50.82%. this indicates that net profit ratio for 2008 has increased which shows that net profit ability of the firm increases in 2008.

RETURN ON INVESTMENT
The term investment may refers to total assets or net assets. The fund employed in net assets is known as capital employed. Net assets equal net fixed assets plus current assets minus current liabilities. Alternatively, capital employed is equal to net worth plus total debt. Return On Investment = Net profit after tax Capital employed Capital employed = fixed assets +current assets current liabilities

FOR YEAR 2007

Net profit after tax = 73271 Capital employed = 698923+117043 69317 = 746649 Return On Investment = 73271 746649 = 0.098

FOR YEAR 2008

Net profit after tax = 76451 Capital employed = 765065 + 156244 108181 = 813128 Return On Investment = 76451 813128 = 0.094 Return On Investment for 2007 is 0.098 and for 2008 is 0.094 which indicates that return on investment is almost same for the two years.

ANALYSIS OF LONG TERM FINANCIAL POSITION OR TEST OF SOLVENCY OF SJVNL DEBT EQUITY RATIO
Debt equity ratio is also known as external interval equity ratio. It is calculated to measure the relative claims of outsiders and the relationship between the owners ( i.e. share holders ) against the firms asset. This ratio indicates the relationship between external equities and internal equities. A higher ratio indicates a risky financial position while a lower ratio indicates safer financial position. DEBT EQUITY RATIO = TOTAL DEBT. Net Worth Total debt. = secured loan + unsecured loan + current liabilities Net worth = share capital + reserve and surplus miscellaneous expenditure

FOR YEAR 2007

Total debt. = 220383 + 33737 + 69317 = 323437 Net Worth = 410881 + 81854 - 206 = 492529 DEBT EQUITY RATIO = 323437 492529 = 0.656

FOR YEAR 2008

Total debt. = 171093+ 30915 + 108181 = 310189 Net Worth = 410881+ 129759 = 540640 DEBT EQUITY RATIO = 310189 540640 = 0.574

The debit equity ratio for 2007 and 2008 are 0.656 and 0.574 respectively. A higher ratio indicates a risky financial position while a lower ratio indicates a safer financial position. In India this ratio may be taken as acceptable if it is 2:1 although, now a days , leading institution prefers it to be 1:1 So we can see that debit equity ratio of SJVNL is acceptable as compare to 2007. SJVNL has safer financial position in 2008.

FUNDED DEBT TO TOTAL CAPITALISATION RATIO

This ratio establishes a link between the long term funds raised from outsiders and total long term funds available in the business. Funded debt to total capitalization ratio = funded debt * 100 Total capitalization Funded debt = secured loan + unsecured loan

Total capitalization = shareholders fund + funded debt.

FOR YEAR 2007

Funded debt = 220383+ 33737 = 254120 Total capitalization = 492735 + 254120 = 746855 Funded debt to total capitalization ratio = 254120 * 100 746855 = 34.02 %

FOR YEAR 2008

Funded debt = 171093+30915 = 202008

Total capitalization = 540640 + 202008 = 742648 Funded debt to total capitalization ratio = 202008 * 100 742648 = 27.20 %

There is no thumb rule for this ratio but it is considered better up to 50 or 50%. The funded debt to total capitalization ratio of SJVNL for year 2007 and 2008 are 34.02% and 27.20%respectively. The funded debt to total capitalization ratio is declining un each year because of decrease in the amount of secured and unsecured loan for the purpose of funding.

EQUITY RATIO
This ratio established the relationship between shareholders fund to total asset of the firm. The ratio of proprietors fund is an important ratio of determining long term solvency of firm. Equity ratio = shareholders fund * 100 Total assets Total assets = fixed assets + current assets

For year 2007

Shareholders fund = 492735 Total assets = 698923 + 117043 = 815966 Equity ratio = 492735 * 100 815966 = 60.38 %

FOR YEAR 2008

Shareholders fund = 540640 Total assets Equity ratio = 765065 + 156244 = 921309 = 540640 *100 921309 = 58.68 % The equity ratio of 2007 is 60.38 % and for 2008 it is 58.68%. This means that equity ratio if decreased slightly in year 2008. higher the ratio better is the long term solvency position of the company. This means that in 2008 long term solvency of the company has decreased.

Solvency ratio
This ratio indicates the relationship between total liabilities to outsiders total assets of a firm and can be calculated as Solvency ratio = total liabilities to outsiders Total assets Total liabilities to outsiders = secured loans +unsecured loans + current liabilities FOR YEAR 2007 Total liabilities to outsiders = 220383 + 33737 +69317 = 323437 total assets = 815966 Solvency ratio = 323437 815966 = 0.3963 FOR YEAR 2008 Total liabilities to outsiders = 171093730915 + 108181 = 310189 total assets = 921309 Solvency ratio = 310189 921309 =0.3366

The solvency ratio of 2007 is 0.3963 and 2008 is 0.3366 which indicates that in 2008 the solvency ratio has decreased and company has more satisfactory or stable long term solvency position.

FIXED ASSET TO NET WORTH RATIO ;This ratio establishes relationship between fixed assets and shareholders fund and indicates the extent to which shareholders fund and sunk into the fixed assets. Fixed asset to net worth ratio = fixed assets( after depreciation) *100 Shareholders fund

For year 2007

Fixed assets = 698923

Share holders fund =492735 Fixed asset to net worth ratio = 698923 * 100 492735 = 141.85 %

FOR YEAR 2008

Fixed assets =765065 Share holders fund =540640 Fixed asset to net worth ratio = 765065 * 100 540640 = 141.51%

Fixed asset to net worth ratio for year 2007 is 141.85% and for year 2008 is 141.51 %. The ratio is declining every year both the ratios are more than 100% it implies that owners funds are not sufficient to finance the fixed assets and the firm has to depend upon outsiders to finance the fixed ratio.

RATIO OF CURRENT ASSETS TO PROPRIETORS FUND

The ratio indicates the extent to which proprietors fund are invested in current asset. Ratio of the current assets to proprietors fund = current assets * 100 Shareholders fund

FOR YEAR 2007

Current assets = 117043

Shareholders fund = 492735 Ratio of the current assets to proprietors fund = 117043* 100 492735 =23.75%

FOR YEAR 2008

Current assets = 156244

Shareholders fund = 540640 Ratio of the current assets to proprietors fund = 156244* 100 540640 = 28.89%

The current assets to proprietors fund ratio for the year 2007 is 23.75 % and for the year 2008 is 28.89% it shows that ratio is increasing rapidly. It indicates that because of increase in profitability of the concerns more and more funds are invested in C.A.

TREND ANALYSIS OF SJVNL

2007 (base year) Amount (Rs. In lakhs) 160971 117043 69317 87755 166563 109150 23500 47726 2008 Trend percentage Amount (Rs. In Lakhs) 100 150426 100 156244 100 108181 100 14764 100 158221 100 158305 100 24400 100 48063

YEAR Sales Current assets Current liabilities Expenditure Income Profit after tax Total dividend Net current assets

Trend percentage 93 133 156 16 94 145 103 101

From the above trend we can analyze that :Sales of the company is decreased in 2008 as compared to baes years sales. Current assets of company has increased in 2008 as compared to base year assets. Current liabilities in 2008 has been increased. Expenditure in 2008 has been reduced a lot. Profit after tax also increased in2008 as compared to base year. Total dividend and net current asset both have increased in2008. Therefore we can say that the sales of the company is less as compared to base year sales but still the company is running in profit.

KEY OPERATIONAL PROCESS

A) Memorandum of Understanding (MOU) is signed between Ministry of Power and SJVNL. Every year a MOU is signed between SJVNL and Ministry of power. A MOU consists the list of targets which have to be achieved by the company in a given year. First MOU was signed between the Ministry of power and SJVNL on 29th March 2004 at New Delhi. This MOU consisted the agreement that SJVNL has to produce 1500 MW of electricity from NJHEP and has to supply electricity to the beneficiaries states of northern region which are essentially nine in total. This MOU also consisted that out of the total energy generated at the Bus Bar, 12% energy is supplied free of cost to the home state i.e. Himachal Pradesh. From the remaining 88%,25%energy is supplied to H.P. at Bus Bar rates and balance power has been allocated to different states by Ministry of Power. In MOU Ministry of Power gives a contract to the company to produce a fixed amount of electricity for a given year. MOU signed for the year 2008-09 between the Ministry of Power and SJVNL consists the following things.

a. Generation of 6,600 mu of energy from 1500MW NJHEP. b. Construction of 412 MW Rampur Hydroele Electric Project. c. The Ministery of power will also assist the Satluj jal vidyut nugam in obtaining speedy clearances for its projects from various statutory authorities.

After the signing of MOU the company tries to fulfill the power requirements from the existing power projects if it is not possible then company explore new projects in order to meet the power generation orders by the ministry of Power. When the company is exploring new projects then it has to undergo following steps.

PFR/FSR:PRE FEASIBILITY REPORTS OR FEASIBILITY REPORTS

Firstly pre feasibility reports of HEP is prepared for various rivers /basins/subasins based on which further work on the project would be taken up. The different aspects to be covered under PFR as below:1. General Project features which includes salient features of the project. 2. Background features which includes.:a. General information about the area, river basins/ sub basins. b. Power scenario and existing installations. c. Necessity of the project and related aspects. 3. Project area:It consists of description of project including river system socio economic and other aspects. 4. Topographic and Geotechnical aspects:It consists of Regional, Topographical and Geotechnical features of project area. 5. Hydrology:It includes water availability, studies based on available meteorological/hydrological data of projects, sedimentation studies, and design flood studies etc.

DPR: The full form of DPR is detailed project report. DPR is made when the pre feasibility report is accepted detailed project report is time bounded it has to be completed with in six months. It includes details of the project such as height of the dam, cast estimate of the project detail of various project components; it includes all the information related to infrastructure of the project. It includes all the information related to storage structure, water conductor system power house tail race etc.

1.

PREQUALIFICATION CRITERIA:These are the criterias which are set for selecting the contractor. That contractor is selected who used to qualify the parameter. In pre qualification criteria: The company specifies the civil work criteria, electro-mechanical work criteria, Hydro-mechanical work criteria for a particular project.

In civil work criteria

company specifies the size of intake gates, length of head race tunnel, type of surge shaft etc.

In Electro-mechanical work criteria

The company specifies the design of various electro-mechanicals equipment of the project type of generator, design of turbine etc.

IN HYDRO-MECHANICAL WORKS
The company specifies the design, fabrication, painting, transportation, supply, election testing and commissioning of Hydro-mechanical works comprising of stop logs, hydrolic hoists, Rope drum hoists, Gantry crane, EOT cranes etc as per requirements in civil structure. After the prequalification criteria Bid document is maintained which consists bidding procedure, Technical specifications, Technical drawing, Specifications, Bid forms and price Schedule. i) Preaward of the contract:b) Preparation of Technical Memos , Technical Specifications, Price Schedules of Hydro mechanical equipments such as Gates , Hoist, Cranes, Valves, Pumps etc. c) Preparation of pre qualified bidding document whatever necessary. d) Vetting and inspection of civil/ electrical drawing ii) During ward of the contract:a) evaluation technical bids of hydro mechanical equipment. iii) Post Award Of the contract

a) Checking and approval of vendor design and drawing. b) Vetting and inspection of civil/ electrical drawing.

Process Discription General

The mechanical and gates process constitutes mainly hydro mechanical designing

DESIGN ENGINEERING:It consists of three stages i) ii) iii) Pre contact stage During the contracting process After the contract is awarded.

The contact stage involves preparation of prequalification Bd documents, evaluation criteria, broad designing, the preparation of technical specifications, specifications, drawings of hydro mechanical components to be installed at various project sites (eg. Such as at Dam, intake, Destilating water conductor system , Power house components etc. for hydro power projects.) The output of this design is the technical specifications and specifications drawings, which are used as input by contracting process for award of the process /department checks the technical bids comprising of design and drawing of various bidders and the output of this process is in the form of a report on the Technical bids, which is used by the contracting process for award of the contract. The contracting designing involves the checking of the detailed design of the various components submitted by the contractor and the output is in the form of approved design and drawings whch are used by the contractor for manufacture of the hydro mechanical components.

DESIGN INPUTS:The design inputs of hydro mechanical components are received from the civil design department before pre award stage of the contact.

DESIGN PLANNING :The broad planning for allocation of the design work is carried out by HOD (M & G ). The reviews of design work are planned and conducted on day to day basis by HOD (M&G). After post award of the contract, the contractor submits the detailed design and drawings of various components of hydro mechanical equipments. These designs and drawings are then distributed among different sub divisions. These designs ad drawings are the check to see their conformity with the technical specifications.

DESING REVIEW:The Design review are carried out from time to time for the purpose listed below :a) b) c) d) e) To evaluate the ability of design to meet the requirement . To review progress of design with respect to the plan / schedule. To identify and resolve any problem related to designing. To have coordination with interface design department. To decide about the validation.

The design review meetings are held from time to time with the other design units.

DESIGN OUTPUT:The design and drawings received from contracts when proved are also an output of the process.

DESIGN VERIFICATION:The specification, design, drawings and memos so prepared are checked for their accuracy.

DESIGN VALIDATION :When ever the design validation requirement are identified the same are organized through model testing. In case of expert outside agency the scope of model testing is passed on to it and an estimate obtained. The job is then got done as per work policy. Sometimes the scope of work is provided in the technical specifications itself. The later executes the same as per contract provision which is also witnessed by the inspecting personnel of SJVNL. The records/ reports of such validation are maintained in the relevant files.

DESIGN REVISION :Based on the following feedback / requirements from the civil/ electrical design department the contractor or the client, the changes may be desired due to site constraints or other reason. Changes in the design are recorded in the relevant document along with reasons of such changes.

PURCHASE DOCUMENT PREPARATION:After finalization of technical specifications, SJVNL prepare Bid document comprising of two part viz. Technical Bid and price Bid are hand over to the contract department for initiating action to invite bids after obtaining approval/ financial concurrence of the directions in respect of technical bids and cost estimates. Then the L1 bidder i.e. least cost bidder is selected. This bidder is responsible for the erection of the HEP.

when the company already has working HEP then power generation is the key operational process. FLOW DIAGRAM OF POWER GENERATION IS AS FOLLOWS
DAM (NAPTHA) (water) INTAKE

HRT (Head race tunnel)

SURGE SHAFT

BUTTER FLY VALVES

PENSTROCKS ( power house, jhakri ) MAIN INLET VALVE

TURBINE( energy of the water is converted into Mechanical Energy) GENERATOR (converts mechanical energy to electricity)

BUSBAR

STEPUP TRANSFORMER

GIS (Gas Insulated Switchgear)

NORTHERN POWER GRID

THE DESCRIPTION OF THE ABOVE PROCESS IS GIVEN BELOW All the hydro power projects of SJVNL are run off the river projects not storage dam projects. In these projects path of the rivers is diverted and the water is collected in the dam which is at Naptha. Dam acts as reservoir. The first step in the generation of energy in a hydropower plant is the collection of run off the river water in the dam. The water in the dam goes through the intake to the distilating chambers. The intake is a tunnel between dam and the distilating chambers through which the water flows. In distilating chambers the silt from the water is removed and is flushed out. Then from the distilating chamber water goes to the HRT which is head race tunnel to the surge shaft which is a type of pond where water from the HRT gets collected and there is a opening at the bottom of the pond from which the water goes to the butter fly valves . the basic function of the butterfly valves is to manage the flow of water. Then from butter fly valves water passes through the Pen stock and through the pen stock water goes to the power house which is situated at jhakri. The water from Pen stocks goes to Main Inlet valve. which then supplies the water to turbine. Turbine is the large wheel which gets rotated by the water. The turbine convert the

energy of falling water into mechanical energy to drive the generator which in turn produces electric energy. The power produced is then supplied to bus bar then to sep up transformer then to GIS which is gas insulated switch gear which helps to evaculate the power gegerated at Naptha Jhakri Hydro Power station to the Northern grid. After the process of power generation the water passes through the draft tube to the Tail race tunnel through this tunnel water is released back into the lakes. MOP decides how much power will be produced by SJVNL for the given year. Then daily targets are set by northern grid.Every day northern grid used to fax the target for the next day to SJVNL power house and SJVNL power house produce only that much of electricity as stated in the fax message for a particular day . SJVN power house conveys message to the northern grid after ever hour. This message consists how much energy is generated and supplied with in that hour which help in smooth working of the grid. If the energy generated is less than the scheduled energy then the immediate message is conveyed to northern grid. The northern grid asks some other power house to supply that much amount of energy. If more energy is produced than the scheduled one than it can damage the northern grid and can cause black out in northern region of India.

Energy generation consist of peak hour and peak off hour.

PEAK HOUR: - The hours in which more electricity is produced and supplied. Time
from 6:30 pm to 11:30 pm is considered as peak hour.

OFF PEAK HOUR: - The hour in which electricity produced and supplied is less.

The following table shows how much energy is allocated to all the beneficiaries of SJVNL: Existing allocation 00-06 & 0600100023-24 1000 1800 State/UT hrs hrs hrs % % % Chandigarh 5.00 5.00 5.00 Delhi 0.00 0.00 0.00 Haryana 16.00 15.00 17.00 H.P. 7.00 11.00 12.00 J&K 18.00 18.00 18.00 Punjab 3.00 2.00 2.00 Rajasthan 23.00 19.00 18.00 U.P. 22.00 20.00 22.0 Uttarakhand 6.00 4.00 6.00 Total 100.00 100.00 100.00 18002300 hrs % 5.00 6.00 16.00 12.00 18.00 3.00 17.00 20.00 3.00 100.00 Revised allocation 00-06 & 0600- 100023-24 1000 1800 hrs hrs hrs % % % 6.00 5.00 6.00 0.00 0.00 20.00 20.00 17.00 15.00 0.00 0.00 0.00 0.00 12.00 0.00 23.00 21.00 16.00 23.00 20.00 15.00 28.00 22.00 25.00 0.00 3.00 3.00 100.00 100.00 100.00 180023000 hrs % 6.00 22.00 13.00 0.00 12.00 10.00 14.00 20.00 3.00 100.00

SWOT ANALYSIS OF SJVNL

STRENGTHS OF SJVNL:1.Projects under SJVNL have got Modern Technology. Naptha jhakri Hydroelectric Electric project of SJVNL has largest underground destilating complex, the longest and largest head race tunnel and deepest surge shaft in the world and has got biggest capacity. 2.SVVNL has made a vital contribution by completing the 1500 MW Naptha Jhakri Hydroelectric Project (NJHEP) during the year 2004 and helping migrate the shortage of power in Northern Region of the country. This Hydroelectric Project has been planned to generate 6950 of electric energy in 90% dependable year and is also providing 1500 MW of valuable peaking power to the Northern Grid. 1. Technical Input used in the project is best and are taken from other countries. 2. Skilled man power is also strength of SJVNL. It has got experienced engineers along with best contracting and consulting agencies. 3. SJVNL provides frequent training to its employees to enhance their skills. 4. SJVNL has got countrys highest insurance i.e. of Rs. 307 crore and the present authorized share capital of SJVNL is Rs. 4500 Crores. 5. Ministry of Power will facilitate and support SJVNL in obtaining more projects in India and abroad. 6. There is Proactive and close Monitoring and reporting and intense coordination among the department of corporate office and the project. 7. Best Project Management, Manpower management and Financial Management. 8. Power sector never faces recession. 9. Low labour cost. 10. Reasonably good R & D capabilities.

WEAKNESS OF SJVNL
1.Less Man Power. SJVNL has man power of 1729 employees which is very less. 2.SJVNL is not able to retain its skilled employees. 3.Some of the employees come on deputation from the state government. Deputed employees gets more profits and benefits than the employees of the SJVNL. Company has to pay them and has to give them deputation allowance and their service years also increases. This causes some difference between the employees of SJVNL and deputed employees. It leads to the spoliation of the Work Culture. 4.There is no MIS installed in SJVNL and the processing of files takes place much time. This makes the working of the organization slow. 5.NJPHS is located in hilly area away from the Load Centre and as such it requires long transmission lines and losses in them is more. 6. Initial cost of Naptha Jhakri power plant is very high. 7.It took a long time for the erection of Naptha Jhakri Power Plant and it requires a large cost for its maintenance. 8.Power generation capacity of Naptha Jakri Hydro power plant is not fully exploited.

OPPORTUNITIES OF SJVNL
1.There is Hydro Potential of 84,000 MW already available in the country which has to be manifested. 2.The ratio of hydro to thermal power has been declining over a period of time. As a result, many of the fuel based thermal units designed to operate as base load stations, are being forced to back down during off peak hours. The urgent need for adding peak load stations coupled with shortage of domestic fuels and concern for environmental pollution has prompted the government to lay thrust on adding hydro power stations. Accordingly, during the 11th plan period, proposed power projects with total installed capacity of 66,653 MW includes 20,063MW hydro power projects. Hydro capacity adding of 25,000 MW has been tentatively envisages for 12th plan period. 3. Hydro power projects with storage dams normally involves displacement of large number of persons. Thus Resettlement and Rehebilitation of the displaced people will be a major challenge. However run off the river schemes has minimum displacement of people and SJVNL has emerged as a trend setter in Resettlement and Rehabilitation of displaced people during the execution of NJHEP, a fact which has been well appreciated by the World Bank. 4. Power is always an ever demanded product.

1. Unlike Thermal sources of energy hydropower source of energy does not produce any harmful gases which leads to global warming. It is also helpful to reduce the global warming. So we can say that there is production but no pollution. 2. Raw material involved in hydro power generation is free of cost and hydro power generation requires less operational cost as compared to thermal power generation. 3. generation of employment 4. Good promotional chances of the employees in the company. Promotion in the organization takes place on the basis of seniority and performance. Promotion in the organization takes place after every three years. 5. SJVNL is a growing organization. It is not taking up projects in India only but also in abroad. SJVNL has taken up projects in Nepal and in Bhutan FUTURE PROJECTS OF SJVNL On river satluj 1. Jangi Thopan HE project (480 MW) 2. Yangthan khab (400 MW) In the state of uttranchal 1.Chungar- Chal HE project (240 MW) 2.Garba Tawaghat HE project (630 MW) 3. Rupsiyabagad- Khasiyabada HE project ( 260MW) In state of Sikkim 2. Tessta III HE project (1200MW) 3. Tessta IV HE project (495MW)

THREATS OF SJVNL
1. Shortage of water due to lesser rainfall. 2. Silt in the water. The under water parts of the dam are most affected by the silt erosion. 3. The probability of geological surprises in hydro station is comparatively more and pose great technical challenges to counter. Rock slides, unprecedented floods can cause great losses. The unprecedented flood of august 1, 2000 not only causes damage in the project area but many lives were lost in about 250 km stretch of the river Satluj downstream of Khab and in addition there was huge loss of property on the banks of Satluj and many bridges across Satluj and long stretches of road were also washed away. The entire infrastructure of road, bridges and campus in the dam area had to be rebuilt. The entire power house was completely submerged by the flood water. A cloud burst around the project area on the night of 11th and 12th August 1997 also causes heavy damages to the project sites, roads and equipments. The rock slide which took place in July, 1993 also caused huge losses. 4. The inter state water disputes also make hydro projects politically difficult some times. 5. Allotment of potential hydro projects for execution being state subject, some times various unreasonable issues like manpower, relief and rehabilitation and environmental protection measures crop up. 6. Ecological and Environmental degradation hazards around project area. 7. Organization is not able to retain its skilled manpower. 8. Mechanical Breakdown.

CONCLUSION

1.The 1500 MW Naptha Jhakri Hydroelectric Project (NJHEP) was the first project undertaken by Sjvnl for execution. It was the largest under ground hydro-electric project in the country. The generation component of Naptha Jhakri Hydro Electricity Project (NJHEP) in Shimla and Kinnaur District of Himachal Pradesh (H.P.) was sanctioned in April 1989 for the Naptha Jhakri Power Project now known as Sjvnl, NJPC effectively took over execution of NJHPP in August 1992. NJHPP envisages to harness the hydro power potential in the upper reaches of river satluj in the south west of Himalayas. 2)SJVNL has made a vital contribution by completing the 1500 MW Naptha Jhakri Hydro electric project during the year 2004 and helping the shortage of power in Northern Region of the country. This hydro electric project has been planned to generate 6950 MU of electric energy in 90 % dependable year and is also providing 1500 MW of valuable peaking power to the Northern Grid. 3)SJVNL is a growing organization. It is not taking up projects in India only but also in abroad. SJVNL has taken up projects in Nepal and in Bhutan FUTURE PROJECTS OF SJVNL On river satluj Jangi Thopan HE project (480 MW) Yangthan khab (400 MW) In the state of uttranchal Chungar- Chal HE project (240 MW) Garba Tawaghat HE project (630 MW) Rupsiyabagad- Khasiyabada HE project ( 260MW) In state of Sikkim Tessta III HE project (1200MW) .Tessta IV HE project (495MW 4)Besides the social & economic upliftment of people in it vicinity, the 1500 MW NJHEP will generate 6950.88 MU of electrical energy in a 90% dependable year with 95% machine availability & 7447 MU in a average year. It is also providing 1500MW of valuable peaking power to northern grid. 5) Out of the total energy generated, 25% is supplied free of cost to home state i.e. H.P. From the remaining 88% energy generation ,25 is supplied HP at bus bar rates. Balance Power allocation to different status/ Uts of northern region by ministry of power

6)Sjvnl has been conferred with prestigious Mini Ratna category-1status by Department of Public Enterprise on May 12, 2008, Meeting all the parameters fixed by the department of Public Enterprise, SJVN has bagged the coveted title which will make it eligible for enhanced delegation of powers and freedom of working . The Mini Ratna status grants enhanced autonomy and delegation of financial power to the profit making companies under certain laid down guidelines and eligibility conditions to make them efficient and competitive. These Mini Ratna companies are in two categories namely Category-I and Category-II. Sjvnl has been conferred with the category-I status as a result of its commendable performance. 7) Meeting the criteria laid down by the department of public enterprise, and qualifying the qualitative and quantitative parameters viz. investment, capital employed, net sales, profit employees and also factors of national importance, complexities of problem faced, level of technology adopted prospect for expansion and diversification, competitiveness etc. Sjvnl has been upgraded as Schedule A PSU on May 30, 2008. 8)Skilled man power is strength of SJVNL. It has got experienced engineers along with best contracting and consulting agencies. There is Proactive and close Monitoring and reporting and intense coordination among the department of corporate office and the project. SJVNL has got Best Project Management, Manpower management and Financial Management 9)SJVNL has liquidity and has ability to pay its current obligations. It utilizes its working capital efficiently and has become more efficient in its production. Profitability of SJVNL has also increased and the company has long term solvency position.

10)Power sector never faces recession and power is ever a ever demanded product. There is hydro potential of 84000 MW available in the country. Therefore the scope of SJVNL has increased. 11) The major threat for SJVNL is from geological surprises such as lesser rainfall, rock slides, unprecedented floods.

SUGGESTIONS AND RECOMENDATION

a) SJVNL should try to increase its follows 1. NJHEP 1500 MW

man power. The total projects under sjvnl are as

2. Luhri HEP 775 MW 3. Rampur HEP 412 MW 4. Khab HEP 1020 MW 5. Dhaulasidh HEP 40 MW 6. Uttrakhand HEP 353 MW 7. Bhutan HEP 1386 MW 8. Arjun III Nepal 1386 MW SJVNL has man power of 1729 and with this much man power it would be difficult to manage these projects efficiently. b) Every year SJVNL used to recruit so many skilled people and approximately after one or two years many people used to leave the organization. Therefore we can say that SJVNL is not able to retain its skilled employees. SJVNL should try to find out the reason why the employees are leaving the organization. c)SJVNL should try to resolve the differences between the deputed employees and their own employees in order to prevent the spoliation of the work culture. d)SJVNL should try to fully exploit the power generation capacity of its hydro power projects.

e)SJVNL should install Management Information System in the organization in order to speed up its working of the organization. The organization should adopt computerized processing because the processing of files takes much time which makes the working of organization slow. f)The silt in the water affects and damages the under water parts of the dam. The organization every year spend a large amount of money for the repair of the damaged parts. So SJVNL should takes such measures which can reduce the loss caused by silt in water. g)The unprecedented floods causes great damages to the hydro power projects. The unprecedented flood of august 1, 2000 not only causes damage in the project area but many lives were lost in about 250 km stretch of the river Satluj downstream of Khab and in addition there was huge loss of property on the banks of Satluj and many bridges across Satluj and long stretches of road were also washed away. The entire infrastructure of road, bridges and campus in the dam area had to be rebuilt. The entire power house was completely submerged by the flood water. SJVNL should use flood predication techniques in order to prevent the losses related to the lives of people working there.

h) SJVNL should try to explore new hydro power projects in order to compete with the private hydro power generation units such as TATA power, RELIANCE power etc. i) SJVNL is depending on outsiders to finance their fixed assets therefore SJVNL should try to strengthen their own funds. j) In the year 2008 the long term solvency of the company decreased as compared to previous years so company should try to increase its long term solvency.

k) SJVNL should try to utilize its working capital more efficiently.

l) The company should try to improve its horizon by entering into new profitable ventures.

m) The company should try to improve its sale. n) company can improve its return on investment by improving its net profit ratio. o)SJVNL should try to Complete the new projects allocated to it, in an efficient and cost effective manner. p)SJVNL should adopt best Management practices for the project implementation by applying latest universally accepted project management techniques and by enabling its engineers to become certified Project managers through further training.

PERSONAL LEARNING FROM THE GIVEN TRAINING

All the trainers were under the supreme guidance of Mr.Pawan Verma , Sr. Manager, SJVNL, New Shimla and Mr. Anurag Bhardwaj. I was under the supervision of Mr. Anurag Bhardwaj under his guidance I maintained a. The record file of trainees. In this file there was a short profile of trainees. This file includes the names of the trainees, fields from which they belong, institution of the trainees, recommendation of the trainees, place of deputation of the trainees, time period of the trainees, etc. b.The records of all the training & Development programmes held for the employees this year. He told me how to manage the training programs and what arrangements are to be made for the training and development programmes. I maintained the records of all the employees who attended the training and development programs. c.Under the supervision of Mr. bhardwaj I prepared the joining set of the Executive trainees. I made joining set of 55 trainees. In each joining set I maintained the following things:1. Joining Report 2. Declaration of marital status 3. Home Town Declaration 4. Declaration for Medical Reimbursement. 5. Declaration Re-accomadition. 6. Declaration regarding employment of relatives in foreign mission/ embassies 7. Declaration regarding relationship with directors with directors. 8. Small Family norms. 9 & 10. property Returns. Movable & Immovable. 11. CPF Nomination. 12 & 13. Declaration Regarding CPF 14. Declaration regarding withdrawal/ transfer of Gratuity 15. Gratuity Norms 16. Declaration regarding Lien wherever applicable I also prepared check list of Joining Formalities. which includes the following things:1. Medical Certificate 2. SC/ST certificate 3. Date of Birth Certificate 4. Degree/Certificate 5. Reliving Order 6. LPC (wherever applicable) 7. Service Certificate

8. Attestation Forms 9. Two Character certificate 10. Has he been abroad for one year if so, has he given the details d. I also prepared the Salary Chart of the newly joined executive Trainees. Mr. bhardwaj sent us on rotation to different H.R. department in order to better understand the HR practices in SJVNL. These departments are as follows :1. 2. 3. 4. 5. 6. 7. Policy I.R. and welfare Law Corporate communication R&R Recruitment Establishment

Policies are the set of rules or guidelines for the acts of the organizational. Every task in an organizational is done according to the policies. Policy provides clarity to management thinking. Policy helps in providing uniform treatment of all employees throughout the organization. Policies set pattern of behaviour and permit employees to work more confidently. It provide guideline to make decisions for the routine problems. It also helps the manager to delegate authority. So we can say that policy department is the backbone of an organization.

SJVNL POLI CY
In this department I firstly went to Mrs.Geeta Kapoor then she sent me to Mr.Anshu who is the P.O. of this department. I spent two days in this department. Mr.Anshu gave me an overview about the functioning of this department. According to him, Policy means planning your action. The policy can written or unwritten . He told me that for policy formulation government rules and direction are to be considered.

SJVNL POLICY SOURCES

1. 2. 3. 4. 5. 6. 7. vision of top Management Discussion with union association Own practices Policy in sister Concerns Situation Custom and culture Technological adaptation

8. Government policies Formulation of policy Scope of the policy and its objectives are discussed and it goes to GM & DP and to the concerned department. Then Draft is made and Authority is made. Following are the Authorities for making Policies 1. DP 2. CMD 3. BOD

I.R. and WELFARE

Full Form of I.R. is Industrial Relations. I.R. means relationship between the Management and the employees and among the employees. There should be a feeling of cooperation and adjustment between the Management and the employees in order to achieve the objectives of the organization.

SJVNL I.R.
In this department I went to Mr. Badayak. I was there for one day in this department. He shared his valuable experiences with me. He told me about the various issues which causes the industrial disturbances. The various issues are as follows:1. Peaks 2. Pay Scales 3. Promotion 4. Domestic Enquiries The various methods which are used for solving these issues are:1. open door policy 2. Grievance handling procedure 3. Suggestion box 4. Opinion form

Welfare
It comes under I.R. department only. It looks after the different benefits which should be provided to the employees. This department looks after the needs and desires of the employees.

SJVNL WELFARE

Mr. Badayak told us that here every employee has got 24 hours insurance. Company used to provide the facility of housing to every employees. It provides the facility of education, transportation, medical reimbursement to the family of the employees. The company used to provide various advances to the employees like car advances, computer advances, furniture advances etc. Mr. Badayak told us that this department looks whether the right wages and salaries are given to the employees and at right time or not. This department also handles the disputes regarding the wages and salaries. It provides canteens to the employees, various clubs like Ladies Clubs, Gymnasiums, it also organizes various tournament of games like Chess Cricket, I.T., football etc. and reward the players also.

LAW
In this Department we met Mr. Gautam who gave me an overview of this department. Firstly, he told me that law is a set of rules which are meant to be obeyed. He told me the meaning of company. According to him a company is formed when two or more than two people work together to achieve the goals. According to him every company is registered under the Act of 1956.The Registrar sits in Jalandhar with whom registration is done. When an agreement or contract is made then there should be an arbitration clause in it. This department handles :1. Various service matters like promotion, increment, transfers, suspension etc. 2. Disciplinary matters, which includes conduct rules 3. for suspension small punishment is given 4. Charge Sheet :- It is the act of punishment 5. Termination:- small punishment is given but for longer time 6. Dismissal:- the person is never allowed to join organization again. Mr. Gautam told us that in SJVNL disputes are solved at lower level i.e. by taking help of arbitration councils.

SJVNL CORPORATE COMMUNICATION

Communication means sharing of ideas and views. I went to the head of this department. He told me about communication .He told me that a proper communication is needed in the organization to achieve the objectives. He told me that in SJVNL there are two types of communication. 11. Inhouse 12. External Inhouse communication is for all the employees who are working in SSJVNL. External communication is for public or for the customers of SJVNL.

The medium of inhouse communication are files, pamphlets, magazines like live focus, satluj vani etc. The medium of external communication are advertorials and advertisements in various news papers. R &R I went to the head of this department. I was there in this department for one day. He told me that R&R means Resettlement and Rehabilitation of the project affected families (PAFs). Whose land or house or shop was affected due to construction of Hydroelectric Projects. Its various provisions are:6. Developed agriculture land to land less PAFs equivalent to the area acquired. 7. Allotment of plots for houses. 8. Allotment of plots for shops at the market developed for displaced shopkeepers. 9. Provision for suitable employment to one member of each landless PAFs according to his capacity and qualifications. All these benefits are given under LAND ACQUISITION ACT 1894. It also provides medical facilities to the PAFs. Merit scholarship schemes for wards of PAFs It provides Infrastructural facilities and other aids in the shape of grants for Primary to Sr. secondary level Government school within the project area etc.

RECRUITMENT DEPARTMANT
In this Department I met Mr. Shalender . I was there for two days. He told me that recruitment means attracting the eligible candidate towards the job. 1. Recruitment process starts when the personnel department receives requisition for recruitment from any department of the company. Requisition contains details about the position to be filled, number of persons to be recruited, qualifications required from the candidate etc. 2.Locating and developing the sources of required number and type of employees. 3. Identifying the prospective employees with required characteristics. 4. Communicating the information about the organization, the job and the terms and conditions of the services. 5. Encouraging the identified candidates to apply for the job in the organization. 6. Evaluating the effectiveness of the recruitment process. After receiving requisition from all the departments advertisements are made. Then applications who fulfill the requirements are called the selection process. All the candidates are required to give written test then those who are through to the written test are called for GD and then interviews takes place. The most important factor for recruitment process is that there should be vacancy. Recruitment can be done from both internal and external sources. Methods of recruitment are:Direct Method Indirect Method

Third party Method During recruited there is a fixed number odf reservation for SC, ST, OBC, Physically Handicapped person etc.

ESTABLISHMENT
In this department I met Mr. Patnayak he gave a general overview of this department. He told me that this department generally deals with the entire working life of an employee. This department looks after the promotions, transfers and career progression etc. he told me that promotions can be both merit and seniority based and for promotions there should be availability of vacancy and in this organization promotions occur after every three years. In case of transfers for different levels different time period has been set which employee has spent at a particular place/ job but certain conditions the person has been transferred at his own will. He told me that the main aim of this department is the implementation of all the policies , rules of the organization. This department also takes care of the allowances and advances given to the employees.

REFERENCES
JOURNALS
Corporate booklet of SJVNL Satluj Vani Bi- monthly house journal Water & Energy

Annual Report Of SJVNL

BOOKS
Financial Management by IM Pandey Management Accounting And Financial Management by Shashi K. Gupta

SITES

http://www.sjvnindia.com http://www.sjvn.nic.in http://www.sjvn.gov.in