Política 57 del subsector Generalitat de Catalunya

Cost of goods sold Inventory turnover ratio=---

Average inventory

Cost of goods sold(COGS)=opening stock+ purchases-closing stock

Opening stock + closing stock

Average inventory=--- 2

Coal inventory turnover ratio=884.62/25.39 = 34.84 times Furnace oil inventory turnover ratio= 4.15/3.095= 1.34 times High speed oil inventory turnover ratio= 1.15/0.825=1.39 times Lubricants inventory turnover ratio=1.62/0.995=1.628 times Spares inventory turnover ratio=40.98/94.585=0.43 times Consumables inventory turnover ratio=16.32/6.715=2.43 times Chemicals inventory turnover ratio=1.25/0.01=125 times Other material inventory ratio=3.24/0.48=7.125 times Ratios of 2004-05

Coal inventory turnover ratio=921.98/30.975 = 29.76times Furnace oil inventory turnover ratio= 4.01/3.685= 1.088 times High speed oil inventory turnover ratio= 1.16/0.955=1.215 times Lubricants inventory turnover ratio=1.63/0.441=3.98 times Spares inventory turnover ratio=58.16/91.495=0.643 times Consumables inventory turnover ratio=11.91/8.15=1.46 times Chemicals inventory turnover ratio=1.38/0.01=138 times Other material inventory ratio=1.00/0.375=2.67 times

Ratios of 2005-06

Furnace oil inventory turnover ratio= 4.61/3.775= 1.221 times High speed oil inventory turnover ratio= 1.29/0.915=1.41 times Lubricants inventory turnover ratio=1.82/0.385=4.73 times Spares inventory turnover ratio=22.36/95.85=0.23 times Consumables inventory turnover ratio=8.04/9.3=0.86 times Chemicals inventory turnover ratio=1.91/0.01=191 times Other material inventory ratio=0.46/0.335=1.37 times

Ratios of 2006-07

Coal inventory turnover ratio=967.98/43.395= 22.306times Furnace oil inventory turnover ratio= 4.95/3.13= 1.58 times High speed oil inventory turnover ratio= 1.28/0.775=1.65 times Lubricants inventory turnover ratio=1.89/0.635=2.98 times Spares inventory turnover ratio=22.59/105.41=0.214 times Consumables inventory turnover ratio=9.37/6.715=1.40 times Chemicals inventory turnover ratio=1.37/0.005=274 times Other material inventory ratio=4.13/1.985=2.080 times

Ratios of 2007-08

Furnace oil inventory turnover ratio= 5.06/3.185= 1.326 times High speed oil inventory turnover ratio= 1.35/0.7=1.98 times Lubricants inventory turnover ratio=2.31/0.85=2.72 times Spares inventory turnover ratio=49.84/107.24=0.46 times Consumables inventory turnover ratio=7.2/4.135=1.74 times Chemicals inventory turnover ratio=1.11/0.375=2.96 times Other material inventory ratio=5.79/3.33=1.74 times

CONCLUSION

Power is one of the prime movers of economic development. The basic responsibility of power supply industry is to provide adequate electricity at economic cost, while ensuring reliability and quality of supply. Significant impetus by successive Governments has resulted in increase in capacity from 1,300 MW during independence to more than 100,000 MW today. Along with the growth in installed generation capacity, there has also been a phenomenal increase in the transmission and distribution capacity. However, despite the significant progress in capacity addition, the demand for electricity continues to outstrip supply with the result that energy and peaking shortages continue to plaque the economy. The India possesses a vast opportunity to grow in the field of power generation, transmission, and distribution. The target of over 150,000 MW of Hydel power generation is yet to be achieved. By the year 2012, India requires an additional 100,000 MW of generation capacity.A huge capital investment is required to meet this target. This has welcomed numerous power generation, transmission, and distribution companies across the globe to establish theiroperations in the country under the famous PPP (public-private partnership) programmes. The power sector is still experiencing a large demand-supply gap. This has called for aneffective

consideration of some of strategic initiatives. There are strong opportunities intransmission network ventures -additional 60,000 circuit kilometres of transmission networkis expected by 2012 with a total investment opportunity of about US$ 200 billion.

FINDINGS

 Most of the SEBs though are supported by state government, are running under loss. This is because of power theft, transmission losses, use of conventional methods for power generation and transmission and out dated management policies.

 Indian power sector has been witnessing a wide demand – supply gap. Although electricity generation has increased substantially, it has not been able to meet the demand.

 As per the information and explanation given to us the physical verification of inventory has been conducted by the management at reasonable intervals.

 The producers of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and nature of the business.

 The company is maintaining proper records of inventory. As per the information and explanations given to us, no material discrepancies were noticed on physical verification.

 Presently company maintains adequate inventory turnover ratio as a company exhibits good signs.

 In the year 2008-09 the company coal usage rate is higher than the other years.Management of coal in Dr.NTTPS maintaining a 30 days of stock at minimum level because it is a non pit station.

 There is no proper control over shrinkage, transit, and windage of coal. Comparitively,the transit,shrinkage and windage is more in 2005-06 is Rs2917.50 lakhs which amounts to gradually it has been decreasing in the subsequent years.The loss incurred in 2008-09 is Rs.2447.60 lakhs.

 In Dr.NTTPS, the inventory issues are being done on first in first out (FIFO) but the pricing is done on the weighted average method.

SUGGESTIONS

 There is a higher loss in the shrinkage and wind age .Dr.NTTPS authorities may try to control these losses.

 It is evident that transit loss can be reduced and reduction of transit loss will save Dr.NTTPS funds to be extent.

 Dr.NTTPS is not maintaining stock levels so authorities may look into this fact and try to adopt stock levels i.e., maximum level and minimum level and EOQ etc.  In a bid to bring structural transformations, necessary reform programs should

 Restoration of the financial health of the State Electricity Boards / State Utilities was recognized as the most critical challenge facing the sector. In this context it becomes clear that the distribution sector needed urgent attention if the trend of deteriorating financial health had to be reversed. The reversal would need a combination of the following key measures:-

• Control of theft of electricity

• Reduction in the cost of supply through reduction in technical losses.

• Better management and lowering the cost of generation

• Payment of user charge and Tariff rationalization

BIBLIOGRAPHY