RESEARCH REPORT

ON
“MANAGEMENT OF WORKING CAPITAL IN NTPC”
AT

NATIONAL THERMAL POWER CORPORATION,

SHAKTI NAGAR ,SONEBHDRA (U.P.)

For the partial fulfillment of the Requirement of Degree the of

Requirement of Degree the of

MASTER DEGEREE

IN

BUSINESS ADMINISTRATION

(2009-2011)

SUBMITTED TO: SUBMITTED BY ATUL SINGH

Gr.NOIDA Roll NO.0921170006

Blood of a Business. The goal of Working Capital Management is to manage the firm’s

Current Assets and Liabilities in such a way that a satisfactory level of Working Capital

maintained.

Concepts of Working Capital

(1) Gross Working Capital – A Corporation’s working capital consists

Of its investment in current assets.

Gross Working capital= Current Assets

(2) Net Working Capital – A Corporation’s working capital consists of

The difference between current assets and current liabilities.

Net Working Capital= Current Assets - Current Liabilities

Current Assets – Current assets refers to those assets which in the ordinary course of
business can be, or will be, converted into Cash within one year without undergoing a

diminution in value disrupting the operations of the firm.

Major Current Assets

(1) Cash
(2) Marketable Securities
(3) Account Receivables
(4) Inventory
 (5) Loan and Advances

Current Liabilities - Current liabilities are those liabilities which are intended, at their
inception, to be paid in the ordinary course of business, within a year, out of the current

assets or earning of the con

Current Liabilities
(1) Account Payable
(2) Bills Payable

(3) Bank Overdrafts

(4) Outstanding Expenses

Type of Working Capital - There are two type of working capital:

does not come to an end after the realization of cash from customers. for a company the

process is continuous and, hence, the need for a regular supply of working capital.

However, the magnitude of working capital required is not constant, but fluctuating. To

carry on business, a certain minimum level of working capital is necessary on a continuous

and uninterrupted basis. for all practical purposes, this requirement has to be met

permanently as with other fixed assets. This requirement is referred to as Permanent,

Regular or fixed working capital.

(2) Variable, Seasonal or Special working capital – Any amount over and above the

permanent level of working capital is temporary, fluctuating or variable working capital.

The position of the required working capital is needed to meet fluctuations in demand

consequent upon changes in production and sales as a result of seasonal changes. The

basic distinction between Permanent and Temporary working capital is illustrated in Fig.

given below.
PROBLEM IDENTIFICATION
 Some time respondent hesitated to give information.

 Some time respondent had no time, as they were busy. So

they were reluctant to provide the information.

 Time was limited.

 Poor conveyance facility.

 Some time people don’t want to interact they think that is

wastage of time.

OBJECTIVE OF STUDY
1) To find out the impact on profitability of the company.

2) To find out the liquidity position of the company.

3) To find out the different ratio like inventory turnover, working capital

turnover ratio etc.

4) To find out what is the level of currant assets relation to the current liabilities

HYPOTHISIS
SCOPE OF STUDY
DATA COLLECTION
Secondary data is data collected by someone other than the user.
Common sources of secondary data for social science include
censuses, surveys, organizational records and data collected through
qualitative methodologies or qualitative research. Primary data, by
contrast, are collected by the investigator conducting the research.
Secondary data analysis saves time that would otherwise be spent
collecting data and, particularly in the case of quantitative data,
provides larger and higher-quality databases than would be unfeasible
for any individual researcher to collect on their own. In addition to that,
analysts of social and economic change consider secondary data
essential, since it is impossible to conduct a new survey that can
adequately capture past change and/or developments.
Sources of secondary data
As is the case in primary research, secondary data can be obtained
from two different research strands:

 Quantitative: Census, housing, social security as well as

 Qualitative: Semi-structured and structured interviews, focus
groups transcripts, field notes, observation records and other
personal, research-related documents.
A clear benefit of using secondary data is that much of the
background work needed has been already been carried out, for
example: literature reviews, case studies might have been carried out,
published texts and statistic could have been already used elsewhere,
media promotion and personal contacts have also been utilized.
This wealth of background work means that secondary data generally
have a pre-established degree of validity and reliability which need not
be re-examined by the researcher who is re-using such data.
Furthermore, secondary data can also be helpful in the research
design of subsequent primary research and can provide a baseline
with which the collected primary data results can be compared to.
Therefore, it is always wise to begin any research activity with a
review of the secondary data.
Secondary analysis or re-use of qualitative data
Qualitative data re-use provides a unique opportunity to study the raw
materials of the recent or more distant past to gain insights for both
methodological and theoretical purposes.
In the secondary analysis of qualitative data, good documentation can
not be underestimated as it provides necessary background and
much needed context both of which make re-use a more worthwhile
and systematic endeavour [1]. Actually one could go as far as claim
that qualitative secondary data analysis “can be understood, not so
much as the analysis of pre-existing data; rather as involving a
process of re-contextualising, and re-constructing, data”[2].
Overall challenges of secondary data analysis
There are several things to take into consideration when using pre-
existing data. Secondary data does not permit the progression from
formulating a research question to designing methods to answer that
question. It is also not feasible for a secondary data analyst to engage
in the habitual process of making observations and developing
concepts. These limitations hinder the ability of the researcher to
focus on the original research question.
Data quality is always a concern because its source may not be
trusted. Even data from official records may be unreliable because the
data is only as good as the records themselves, in terms of
methodological validity and reliability.
Furthermore, in the case of qualitative material, primary researchers
are often reluctant to share “their less-than-polished early and
intermediary materials, not wanting to expose false starts, mistakes,
etc.” [1].
So overall, there are six questions that a secondary analyst should be
able to answer about the data they wish to analyze.
1. What were the agency's or researcher's goals when collecting the
data?
2. What data was collected and what is it supposed to measure?
3. When was the data collected?
4. What methods were used? Who was responsible and are they
available for questions?
5. How is the data organized?
6. What information is known about the success of that data
collection? How consistent is the data with data from other sources?
RESEARCH TOOL APPLIED
 Research Design:

 Exploratory Research
 Conclusive Research
 Descriptive Research
 Data Collection: Both Primary data and Secondary data
collected.

 Source of Primary Data - By Questionnaire

 Tools & Techniques - Data Analysis is based on the data

collected by way of Questionnaires. The data is tabulated and

frequency distribution chart have used.

Pie chart, Bar chart etc many type of statistical tool has been used.

This chapter aims to understand the research methodology establishing a

framework of evaluation and revaluation of primary and secondary research. The

techniques and concepts used during primary research in order to arrive at

findings; which are also dealt with and lead to a logical deduction towards the

analysis and results.

REFERENCE AND BIBLIOGRAPHY

1. IGNOU STUDY MATERIALS

N.T.P.C Annual Report (2001-2002)

N.T.P.C Annual Report (2002-2003)

N.T.P.C Annual Report (2003-2004)

N.T.P.C Annual Report (2004-2005)

N.T.P.C Annual Report (2005-2006)

N.T.P.C Annual Report (2006-2007)

3. BOOKS

“FINANCIAL MANAGEMENT”

SC KUCHHAL

“FUNDAMENTAL OF MANAGERIAL FINANCE”

RAYMOND P. NEVEN

“FINANCIAL MANAGEMENT”

IM PANDEY
 “FINANCIAL MANAGEMENT”

KHAN & JAIN

4. SOFTWARES

MS-OFFICE

5. WRBSITES

ntpc.co.in