SUMMER INTERNSHIP PROJECT REPORT of OPGC(Dinesh)

SUMMER INTERNSHIP PROJECT REPORT: 

SUMMER INTERNSHIP PROJECT REPORT PREPARED BY:- DINESH KUMAR LAHARA REGD. NO:- 1006294009 ASTHA SCHOOL OF MANAGEMENT INTERNAL GUIDE:- Mr. G.S. Moharana (Faculty in Finance) CORPORATE GUIDE:- Mr. K.C. Sahu (Sr. Accountant , O.P.G.C) FIANCIAL STATEMENT ANALYSIS

OBJECTIVE OF THE STUDY   : 

OBJECTIVE OF THE STUDY 1 . To find out the relationship between the different items of the balance-sheet and profit and loss account. 2. To know the ability of the organization to meet the current obligations. 3. To know the ability of the organization to meet the long term obligations. 4. To know the changes in the financial position of the organization over a period.rf43e 5. To get a thorough idea about the functioning of the organization . 6 . To get idea about the performance of the company .

Significance:-: 

Significance:- 1 . Profitability 2. Solvency 3. Liquidity 4. Stability

METHODOLOGY: 

METHODOLOGY Sources of Data:- 1. Financial statements of OPGC From 2007-2010. 2. Other related data & books of OPGC. 3. Data from websites ( www.opcc.co.in) Period of study:- Annual report of consecutive four years i.e. from 2007-2010. Four year performance report of OPGC.

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Accounting tool:- Balance sheet Income statement Statistical tool:- Ratio analysis Trend analysis Comparative balance sheet analysis Comparative income statement analysis

COMPANY PROFILE: 

COMPANY PROFILE Orissa Power Orissa Generation (OPGC) was incorporated on 14 th November, 1984. OPGC started as a wholly owned Govt. company of the state of Orissa with objective of establishing, operating and maintaining thermal power generation stations. It is a maiden venture, the company has set up two thermal power plants with a capacity of 210 MW each in the IB Valley are of Jharsuguda District in the State of Orissa (Ib Thermal Power Station) at a cost of Rs.11350 million.

THE PARTNERSHIP:: 

THE PARTNERSHIP: As a part of reforms in the energy sector of the state 49% of the equity was divested in favour of a private investor i.e. AES Corporation, USA in early 1999.AES is one of the largest global power company. It generates and distributes electric power to millions of people in 26 countries, It has 123 countries power generation facilities. It generates over 44000MW of electricity. It has 14 distribution companies.

FUTURE EXPANSION OF OPGC: 

FUTURE EXPANSION OF OPGC Orissa Power Generation Corporation is seen making progress with its Ib Valley power plant expansion project in jharsuguda district. A new project is taken by the Orissa govt. and AES Corporation. The project involves setting up two coal-fired units of 600 mw each (+20 %) as an expansion of OPGC’s existing 2x210 mw Ib Valley power plant at Banharpali in jharsuguda district of Orissa.

CURRENT RATIO: 

CURRENT RATIO

QUICK RATIO: 

QUICK RATIO

ABSOLUTE LIQUID RATIO: 

ABSOLUTE LIQUID RATIO

MY OBSERVATION: 

MY OBSERVATION Cost of production increasing day to day. Running through the traditional technology. Enough money in hand but still they are not functioning 3 rd and 4 th Unit. Lack in support from Central Govt. in case of subsidy .

SUGGESTION : 

SUGGESTION Close scrutiny of present rise in inflation rate has to be done to control the cost of production. Regular effort should be made to increase the sales volume to generate more revenue. Technological up gradation is much necessary to achieve the target. OPGC need creative personnel to maintain stability in profitability and financial position. Enhancement in liquidity position of OPGC has to be made by increasing the liquid asset. Solvency ratio must be improved by improving the total asset and decreasing the current liabilities.

Contdd……: 

Contdd …… Efforts are to be made to create reserve and surplus for financing future development. It has additional burden of employees which should be curtailed to the barest minimum through VRS, CRS, and Golden Handshake Schemes etc. It will reduce the burden of administrative and general expenses. Provision for day-to-day operations should be kept minimum as it is an unnecessary blockage of money.

CONCLUSION: 

CONCLUSION To summarize the above project we can mention that- we have various ratios to test the followings 4 things like liquidity, profitability, overall profitability and leverage and by this analyze the trend and performance of the company as a whole. Again the liquidity position of the company has analyzed from short-term and long term point of view. So accordingly there are various ratios to test the short-term and long-term solvency of the firm.

BIBLIOGRAPHY:: 

BIBLIOGRAPHY: Cost Accounting, Author- S.P. Jain & K.L. Narang Management Accounting, Author- Shashi K. Gupta & R.K. Sharma. Annual Report of OPGC year of, 2007-08, 2008-09 and 2009-2010. www.financedictionary.com www.accountingformanagement.com www.investopedia.com www.wikipedia.com

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THANK YOU FOR ATTTENTION