POWER GRID CORPORATION OF INDIA LTD FINANCIAL STATEMENT ANALYSIS

Incorporated in 1989 World Leadindg Power Transmission

Utility First ISO: 9001 Company in Power

Sector Over 51% of the total generated

power is wheeled by POWERGRID Rated Excellent under MOU with MoP

since 1993-94 Continuously Profit making PSU since

inception. Received AAA rating from domestic

credit rating agency

POWERGRID - the Central Transmission Utility

OBJECTIVE OF THE COMPANY Discharge all functions of planning and coordination relating to Inter-

State transmission system with :› State Transmission Utilities› Central Government › State Governments › Generating Companies › Regional Electricity Boards › Authority › Licensees › Transmission Licensees › Any other person notified by the Central Government in his behalf.

To facilitate private sector participation in transmission system through Independent Private Transmission Company/ Joint Ventures.

Efficient Operation and Maintenance of Transmission System. Restoring power in quickest possible time in the event of any natural

disasters like super cyclone, flood etc. through deployment of Emergency Restoration Systems.

TELECOM

SMART GRID

-Businesses are mainly concern with the financial activities

•In order to ascertain the financial status of the business every enterprises prepares certain statements known as financial statements. They are – Balance Sheet – Income Statement/Profit &Loss Account – Statement of Retained Earnings – Statement of Cash Flows

Financial statements are mainly prepared for decision making purposes. •Analysis of financial statements is an attempt to assess the efficiency and performance of an enterprise •Financial analysis serves the following purposes

•Measuring the profitability •Indicating the trend of achievements •Assessing the growth potential of the business •Comparative position in relation to other firms •Assess overall financial strengths •Assess solvency of the firm

How to Read A Financial Report

Goal is to understand what data is included in financial reports.

Use the data to analyze the firm’s position relative to competitors, and the industry as a whole.

Uses of StatementAnalysis•Plan - Focus on assessing the current financial position and evaluating potential firm opportunities. •Control - Focus on return on investment for various assets and asset efficiency. •Understand - Focus on understanding how suppliers of funds analyze the firm.

FINANCIAL RATIO

Financial Health of PGCOI is sound enough . Current Ratio shows continuous increament . Quick Ratio has Improved. EPS has Increased over the years. Increase in Return on equity. Gross And Net Profit also improved. Enormous Posibility Available for the company Low operational Risk in core business. Government support Company can take advantage of diversification

opportunities Threat from New Competitors

FINDING

The company should focus on new areas where more scope of growth is available. There is always scope of improvement.  Beneficial for the company to pay attention on improving the employee’s productivity that will bring down employee’s cost and help the company improve its productivity and profitability.  They should try to improve the operational and financial performance of state utilities.

Company should explore and should diversified into new areas and should try for wider expansion of its business activity . 

SUGGESTION