EVALUATION OF FINANCIAL PERFORMANCE OF NATIONAL THERMAL POWER CORPORATION LIMITED

Abstract

Old is gold goes in the same way as old and wise saying and this is appropriate to the black diamond as well in the perspective of thermal power plants. As more than 70% of India’s electricity is produced by coal fired power plant. Since coal is crucial to meet the needs of the country being a scarce resource therefore its financial positions is also critical to analyze, hence both are important in their own sphere and are need of an hour. Financial position refers to the degree to which financial objectives has been accomplished. It is used to measure firms overall financial health over a given period of time. The concerned study investigates the financial position of Thermal power in India with special reference to National Thermal Power Corporation Limited. The qualitative as well as quantitative aspect of financial performance has been touched in this paper. The findings are based on the five years financial data i.e. from 2011-12 to 2015-16 of National Thermal Power Corporation Limited. The financial health of National Thermal Power Corporation Limited is measured on the basis of ratio analysis. The main emphasis in this study has been given to evaluate the financial performance with respect to measure the impact of liquidity, solvency and profitability ratios on sales. For testing the hypothesis of the study researcher run linear regression analysis on SPSS. The findings highlighted that there is no significant impact of sales on liquidity position, solvency position and profitability position of National Thermal Power Corporation Limited