Synopsis of

A study of working capital management in power station

A proposal for Research by

Ashish Kumar Gupta Shailendra sharma Umesh yadav For the award of internal marks PGPM degree

EXCEL BUSINESS ACADEMY, BANGALORE

15th June, 2011

Company profile:
Anpara Thermal Power Station PLANT LOCATION THE ANPARA PROJECT SITE IS LOCATED NEAR VILLAGE ANPARA ON THE BANK OF RIHAND RESERVOIR IN THE DISTRICT OF SONEBHADRA, U.P. IT IS ABOUT 34 KM FROM RIHAND DAM ON PIPRI-SINGRAULI ROAD AND ABOUT 200 KM FROM VARANASI. VARANASI IS CONNECTED BY AIR/RAIL AND ROAD ROUTE FROM OTHER MAJOR CITIES. ABOUT GENERATING UNITS AT ANPARA THERMAL POWER STATION ALL THE UNITS OF THIS STATION ARE COAL FIRED THERMAL POWER PLANTS, HAVING A TOTAL GENERATING CAPACITY OF 1630 MW AND CONSISTS OF FOLLOWING UNITS STAG UNIT ORIGINAL DERATED DATE OF FIRST ORIGINAL E S NO. CAPACIT CAPACIT COMMISSIONIN EQUIPMENT Y Y G MANUFACTURER S 1 1 210 MW 210 MW 24.03.1986 M/S BHARAT HEAVY ELECTRICALS LTD. 2 210 MW 210 MW 28.02.1987 -DO3 210 MW 210 MW 12.03.1988 -DO2 4 500 MW 500 MW 19.07.1993 M/S MITSUBISHI CORPN. JAPAN 5 500 MW 500 MW 04.07.1994 -DOTHE COAL TO ALL THESE UNITS IS FED FROM KHARIA, KAKRI AND BEENA OPEN COAL MINES OF NCL, BY MEANS OF A MARRY-GO-ROUND SYSTEM, MAINTAINED BY UPRVUNL.

Address: Anapara thermal power project (ATPP) Anpara, sonebhadra , UP,231225 Project manager: CGM, ANPARA THERMAL POWER PROJECT ANAPARA SONEBHADRA, UP, 231225

Executive summary
Working capital management refers to the administration of all aspects of current assets, namely cash, marketable securities, debtors and stock (inventories) and current liabilities. The financial manager must determine levels and composition of current assets. He must see that right sources are tapped to finance current assets, and that current liabilities are paid in time. There are many aspects of working capital management, which make it an important function of the financial manager: Time: working capital management requires much of the financial managers time. Investment: working capital represents a large portion of the total investments in assets. Significance: working capital management has great significance for all firms but it is very critical for small firms. Growth: the need for working capital is directly related to the firms growth.

Investment in current assets represents a very significant portion of the total investment in assets. Working capital management is critical for all firms. A small firm may not have much investment in fixed assets, but it has to invest to in current assets. Small firms in India face a severe problem of collecting their debtors. Objective: Overview of working capital management in thermal power Industry. Working capital management in power stations. Effect of implementation of working capital management in power station industry.

Conclusion: In todays economy of India the working capital management is one of the most important factor for the industry to use their resources efficiently and in a effective manner. If an industry is having working capital management/ they know that to maintain the working capital than they can succeed in efficient way. So, for the current scenario the finance manager is suppose to be good enough to manage the working capital of the company. So, that company can utilize more of its finance by investing in current assets and paying off the current liability. The present current ration for a firm is 1.2:1. Wherein 1.2 is the current assets and 1 is your current liability.