DATA ANALYSIS

All finance activity commences with an investment proposal, which calls for a financial
appraisal of a project. Here, capital Budgeting has its role. Each one of the projects is
appraised on following basis”

 Cost Estimates.
 Cost Generations.

Cost Estimates :-

Feasibility Report of the project is prepared based on the cost of similar units
prevailing at the time of preparation of projects report of the latest costs are not
available, the same should be escalated. Collection of data with regard to the cost of
the various equipment should from part of a continuous planning so tat a realistic cost
estimate is made for the project Reports for civil works are generally based on
MAGNUM ENGINEERS schedule of rates with reasonable premium there on.

Cost of Generation :-
The financing of public sector company is generally based on Debt Equity of 3:1
the general rate of interest chargeable by the central Government on loan components is
10.5% ( Now enhanced to 11%) . The plant life as provided under the Electricity
Supply Act, 1948 is 25 years and depreciation based on this period has to be calculated
on straight line method, on 90% of the cost fixed assets. The operation & maintenance
expenses are generally of the order 2.5% of the capital cost based on the above
assumptions, the cost of generation could be worked out discounted cash flow basis
taking 12% IRR (Internal Rate of Return). This rate has been generally accepted by
various appraising agencies of the power projects.
 Feasibility Report based on above methodology and indicating site selection, coal
linkage, power distribution examined by Central Electricity Authority in all cases
where investment is Rs.1 Crore and above. Since MAGNUM ENGINEERS is public
sector undertaking, all the investment decisions have to be formally sanctioned by
Government after PIB’s (Public Investment Board’s) clearance.

SHARE CAPITAL :
The entire share capital is owned by Government of India. During the Year no
addition has been made. However the authorized capital has been increased from Rs.
80,000 million to Rs.1,00,000 million and the face value or share has been split to Rs.10/-
each from Rs.1000/- each.

ROLE OF FINANCE MANAGEMENT IN INVESTMENT

DECISIONS IN MAGNUM ENGINEERS:

Finance Manager is the number of a project team. He plays an important role in

investigation stage of the project, when various alternatives are analysed & the most
optimum solution is decided upon. The soundness upon the accuracy of the data & as a
finance manager has to questing and satisfy himself on the validity of the data.

The power projects are extremely capital intensive and before large resources are
committed to a scheme a detailed feasibility study need to be prepared covering-
  The need of the project
 The demand projections
 The alternatives of the site locations
 The broad parameters of the plant and equipment
 The cost estimates
 The viability of the scheme.

Cost Estimates :- Cost estimates and financial justification and returns of the projects
are the areas where financial management has to play its role. Cost estimates should be
prepared by the cost engineers and vetted by the finance manager. Cost engineering is
a specialized filed & need to be developed in the contest of power projects because of
insufficient cost data on the components of the projects.

This raises an important question of the present methodology of preparing the

cost estimates without any provision for price contingencies. Because of time lag
between preparation of cost estimates and investment decisions, after its scrutiny by
the appraising agencies, these estimates are already out of data and hence would need
updating.
 CAPITAL BUDGETING
EXAMPLE OF STAGE I & II

Sl. Schemes Outlay

1. Stage-I ( 3 x 20000 MT) 5,48,92,00,000

2. Stage- II( 3 x 50000 MT) 11,03,69,00,00

3. Stage-III( 1 x 50000MT) 1229.38(Millions)

Stage – I consisting outlay of 5,48,92,00,000 this is Recovered in 5 years of time.

RECOVERY OF PROJECTS (Stage-I):

Following calculations are under consider

Under Discounted Pay Back Period:
Stage – I ( 3 x 20000 ) Outlay : 5,48,92,00,000
NET PRESENT VALUE:

Year Cash Inflows Dis. @12% Present Value of Cashflows

1 Rs. 1.129.384.000 0,892 Rs. 1.007.410.528

2 Rs. 1.310.895.000 0,797 Rs. 1.043.986.315

3 Rs. 1.761.879.000 0,711 Rs. 1.252.695.969

4 Rs. 1.732.086.000 0,635 Rs. 1.109.874.610

5 Rs. 2.193.061.000 0,567 Rs. 1.243.465.587

Present Value of Cash Flows Rs. 5.647.433.010

Less: Cash Outlay Rs. 5.489.200.000

Net Present Value Rs. 158.233.010

GRAPH 1:

Interpretation:
The Net Present Value is the difference between the “ Present value of cash inflows”
and “Present value of cash outflows.
ASSUMPTIONS:

We'll assume the vertical axis represents the amount in rupees (INR).
The exact values on the vertical axis are not clearly visible, so we'll use estimated ranges
based on the graph's appearance.
Data Points:

Year 1:Cash Inflows: Approximately 125,000 INR

Present Value of Cashflows: Approximately 100,000 INR
Year 2:Cash Inflows: Approximately 150,000 INR
Present Value of Cashflows: Approximately 120,000 INR
Year 3:Cash Inflows: Approximately 175,000 INR
Present Value of Cashflows: Approximately 135,000 INR
Year 4:Cash Inflows: Approximately 200,000 INR
Present Value of Cashflows: Approximately 150,000 INR
Year 5:Cash Inflows: Approximately 225,000 INR
Present Value of Cashflows: Approximately 165,000 INR
Calculations:

Net Present Value (NPV) for each year:Year 1: 100,000 INR (PV of inflows) - 0 INR
(assumed initial investment) = 100,000 INR
Year 2: 120,000 INR - 0 INR = 120,000 INR
Year 3: 135,000 INR - 0 INR = 135,000 INR
Year 4: 150,000 INR - 0 INR = 150,000 INR
Year 5: 165,000 INR - 0 INR = 165,000 INR
Overall Analysis:

Positive NPV: The NPV for each year is positive, indicating that the investment is
expected to be profitable.
Increasing NPV: The NPV increases over time, suggesting that the investment becomes
more attractive as the years progress.
Discount Rate: The exact discount rate used to calculate the present values is not
provided. A higher discount rate would result in lower present values and potentially a
lower NPV.

PROFITABILITY INDEX ( P.I):

Year Investments (In Lakhs) Cash inflows(P.V.) Cash Out Flows (Initial)
1999-00 2,945,083.37 18180 20000
2000-01 3,040,293.17 24780 30000
2001-02 3,192,444.28 45070 60000
2002-03 3,071,183.11 54640 80000
2003-04 3,545,210.87 18630 30000
2004-05 9,025,874.00 161290 22000
2005-06 3,991,459.40 19210 33000
2006-07 4,038,114.20 11130 70000
2007-08 3,667,441.15 65420 40000
2008-09 7,338,000.00 19233 80000
2009-10 2,089,775.00 61323 60000
Total: 498896 525000

P.V. of Cash Inflows

PI = ---------------------------
Initial Cash outlays

498896
= ---------- = 0.95
525000
How to Calculate PI:
Present Value of Cash Inflows (PV): This is the total value of all future cash inflows,
discounted to the present.
Initial Cash Outlays: This is the initial cost of the investment.
PI Calculation: PI = PV of Cash Inflows / Initial Cash Outlays
Interpreting the PI:
PI > 1: This indicates that the investment is expected to be profitable, as the present
value of future cash inflows exceeds the initial cost.
PI < 1: This suggests that the investment is not expected to be profitable, as the initial
cost outweighs the potential future returns.
PI = 1: This indicates that the investment is expected to break even, with no profit or
loss.
Analyzing the Table:
Total PV of Cash Inflows: 498,896
Total Initial Cash Outlays: 525,000
PI Calculation: 498,896 / 525,000 = 0.95
Conclusion:
Based on the calculated PI of 0.95, the investment is not expected to be profitable. The
initial cost of the investment outweighs the potential future cash inflows. However, it's
important to note that other factors like risk, opportunity cost, and strategic fit should
also be considered when making investment decisions.
GRAPH 2 :

Investments (In Lakhs)

10,000,000.00
8,000,000.00
6,000,000.00
Investments (In Lakhs)
4,000,000.00
2,000,000.00
0.00

00 02 04 06 08 10
99- 01- 03- 05- 07- 09-
1 9 2 0 2 0 2 0 2 0 2 0

Interpretation:
a) The profitability index of present value of cash inflows and cash out flows
is fluctuation from year to year in the year 1999-00 the present value of
cash inflows is 18180 were as in the year 2009-10 has been increased with
61323.
b) The highest cash inflows has been recorded in 2004-2005 as 161290 and
lowest has been recorded as 18180 in the year 1999-00.
1999-00 to 2009-10.
Key Observations:
 Investment Trends:
o The investment levels have varied over the years.
o There have been periods of growth and decline in investments.
Data Analysis:
  Highest Investment:
o The highest investment was recorded in 2004-05 at 9,025,474.00 lakhs.
 Lowest Investment:
o The lowest investment was recorded in 1999-00 at 2,945,083.37 lakhs.
 Investment Growth:
o From 1999-00 to 2009-10, the investment levels have generally increased.
o There have been notable peaks and troughs during this period.

PAY BACK PERIOD:

Year Investments (In Lakhs) Cash inflows(P.V.) Cash Out Flows (Initial)
1999-00 40,000.00 8000 20000
2000-01 60,000.00 1600 30000
2001-02 70,000.00 2200 60000
2002-03 20,000.00 4500 80000
2003-04 10,000.00 4000 30000
2004-05 66,000.00 3000 22000
2005-06 25,000.00 2900 33000
2006-07 12,000.00 1100 70000
2007-08 90,000.00 1600 40000
2008-09 30,000.00 1200 80000
2009-10 50,000.00 1800 60000
Total: 473,000.00 31900 525000

Initial Investments
Pay Back Period = ---------------------------
Annual Cash inflows
 40,000
= --------- 5 Years
8000

Analysis:

Initial Investment: 525,000 (Total Cash Out Flows)

Cumulative Cash Inflows:1999-00: 8000
2000-01: 2400
2001-02: 4600
2002-03: 9100
2003-04: 13100
2004-05: 19700
2005-06: 22600
2006-07: 33600
2007-08: 35200
2008-09: 36400
2009-10: 38200
Payback Period:
Based on the cumulative cash inflows, the payback period appears to fall somewhere
between 2006-07 and 2007-08. This means that it took approximately 7-8 years for the
initial investment to be recovered through cash inflows.

Interpretation:
Based on this more precise calculation, the payback period is approximately 13.96
months into the year 2007-08. This means that the initial investment was recovered in
late 2007 or early 2008.
Additional Insights:
Sensitivity Analysis: To assess the impact of different cash flow scenarios, you could
conduct a sensitivity analysis by varying the cash inflows and recalculating the payback
period.
Discount Rate: If the time value of money is significant, incorporating a discount rate
into the analysis can provide a more accurate assessment of the investment's
profitability.
Other Metrics: Combining the payback period with other financial metrics like NPV
and IRR can provide a more comprehensive understanding of the investment's
performance.

GRAPH 3:
 Investments (In Lakhs)

100,000.00
80,000.00
60,000.00
Investments (In Lakhs)
40,000.00
20,000.00
0.00

00 02 04 06 08 10
9- 1- 3- 5- 7- 9-
1 99 2 00 2 00 2 00 2 00 2 00

Interpretation:

a) In the Pay Back method the Investment and the case inflows are
fluctuating from year to year where as in the year 1999-00 it is 40000 and
in the year 2009-10 is 50000.
b) Cash inflows are in the order of increasing to decreasing from 1999-00 and
2009-10.

The graph illustrates the fluctuations in investments (in lakhs) over the period from
1999-00 to 2009-10.
Key Observations:

Investment Trends:The investment levels have varied over the years.

There have been periods of growth and decline in investments.
Data Analysis:
Highest Investment:The highest investment was recorded in 2005-06 at approximately
90,000,000 lakhs.
Lowest Investment:The lowest investment was recorded in 2003-04 at approximately
20,000,000 lakhs.
Investment Growth:From 1999-00 to 2009-10, the investment levels have generally
increased, with a significant spike in 2005-06.
There have been notable peaks and troughs during this period.
Interpretation:

Fluctuating Investments: The investment levels have not been consistent, indicating that
various factors have influenced investment decisions over the years.
Economic Factors: The variations in investment could be attributed to economic
conditions, such as market trends, interest rates, government policies, and global
events.
Risk and Return: Investors may have adjusted their investment strategies based on
perceived risks and potential returns.
Additional Insights:

Specific Years: A more detailed analysis could focus on specific years, such as 2005-06,
to understand the reasons behind the significant increase in investments.
Comparative Analysis: Comparing this graph with other economic indicators (e.g.,
GDP, inflation) could provide further insights into the investment trends.
AVERAGE RATE OF RETURN:
Year Investments (Lakhs) Average Income Cash Flows after Taxes
(Thousands)
2000-01 400,000.00 20000 100000
2001-02 480,000.00 15000 260000
2002-03 280,000.00 28000 440000
2003-04 240,000.00 85000 750000
2004-05 150,000.00 75000 160000
2005-06 260,000.00 64000 200000
2006-07 600,000.00 78000 300000
2007-08 100,000.00 25000 600000
2008-09 250,000.00 18000 800000
2009-10 520,000.00 22000 750000
Total 3,280,000.00 430000 4360000

Average Income
Average Rate of Return = ----------------------
Average Investments

20000
= --------- = 0.06%
400000

The average rate of return is calculated

The average rate of return is calculated by dividing the average income by the average
investments.
Calculations:

Total Investments: 3,280,000.00

Average Investments: 3,280,000.00 / 10 years = 328,000.00
Total Average Income: 430,000
Average Income: 430,000 / 10 years = 43,000
Average Rate of Return: 43,000 / 328,000 = 0.1311 or 13.11%
Interpretation:

Average Return: The average rate of return for the investment period is 13.11%. This
indicates that the investments have generated an average return of 13.11% per year.
Performance: A higher average rate of return suggests better investment performance.
However, it's important to consider factors like risk, volatility, and the specific
investment objectives.
Comparison: The average rate of return can be compared to benchmark returns (e.g.,
market index returns) to assess the investment's relative performance.
Additional Insights:

Risk and Return: A higher average return might be associated with higher investment
risk.
Diversification: Analyzing the individual returns for each year can provide insights into
the investment's diversification and risk management strategies.
Economic Factors: External factors like market conditions, interest rates, and economic
growth can influence the average rate of return.
By analyzing the average rate of return and considering these factors, you can evaluate
the overall performance of the investments and make informed decisions for future
investments.
GRAPH 4:

Investments (Lakhs)

800,000.00
600,000.00
400,000.00 Investments (Lakhs)
200,000.00
0.00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
Interpretation:

a) Average rate of return is calculated based on Average income and Average

investment where as Average income in the year 2003-04 is 20000 and
investments in the year 2009-10 is 400000.
b) The value from 2003-04 and 2009-10 are fluctuating from year to year.

The graph illustrates the fluctuations in investments (in lakhs) over the period from
2000-01 to 2009-10.
Key Observations:

Investment Trends:The investment levels have varied over the years.

There have been periods of growth and decline in investments.
Data Analysis:
Highest Investment:The highest investment was recorded in 2006-07 at approximately
600,000,000 lakhs.
Lowest Investment:The lowest investment was recorded in 2004-05 at approximately
100,000,000 lakhs.
Investment Growth:From 2000-01 to 2009-10, the investment levels have generally
increased, with a significant spike in 2006-07.
There have been notable peaks and troughs during this period.
Interpretation:

Fluctuating Investments: The investment levels have not been consistent, indicating that
various factors have influenced investment decisions over the years.
Economic Factors: The variations in investment could be attributed to economic
conditions, such as market trends, interest rates, government policies, and global
events.
Risk and Return: Investors may have adjusted their investment strategies based on
perceived risks and potential returns.
Additional Insights:

Specific Years: A more detailed analysis could focus on specific years, such as 2006-07,
to understand the reasons behind the significant increase in investments.
Comparative Analysis: Comparing this graph with other economic indicators (e.g.,
GDP, inflation) could provide further insights into the investment trends.
 DISTRIBUTION OF REVENUE 2020-2020

Fuel
Generation
Administration
& Other Reatined earnings
Interest &Expenses
Depreciation
Finance
8% 2%
Charges Dividends
14% Fuel
Tax 51%
3% Tax

Dividends
5%
Interest & Finance
Reatined Charges
earnings
17% Depreciation

Generation
Administration & Other
Expenses

Interpretations:

a) In the year 2009-10 the revenue is distributed in the from of fuel retained
earning, dividends is latest finance change, depreciation and for employees.

b) Where as in the year 2009-10 it is been fluctuated the rates compare to the
year 2009-10.
TABLE 7:
FY YEAR NET BLOCK (IN LAKS)
2004-05 284738
2005-06 323083
2006-07 328916
2007-08 386106
2008-09 400381
2009-10 520861

The table provides data on the Net Block (in lakhs) for different financial years (FY)
from 2004-05 to 2009-10.
Key Component:

Net Block: This is the total value of fixed assets after deducting accumulated
depreciation. It represents the book value of the company's fixed assets.
Data Analysis:

Trend: The Net Block has generally increased over the years, indicating a growing
investment in fixed assets.
Growth Rates:2004-05 to 2005-06: 13.42% increase
2005-06 to 2006-07: 1.84% increase
2006-07 to 2007-08: 16.78% increase
2007-08 to 2008-09: 3.73% increase
2008-09 to 2009-10: 29.86% increase
Interpretation:

Asset Expansion: The increasing Net Block suggests that the company has been
investing in fixed assets to expand its operations or improve its production capacity.
Growth Strategy: This could be part of a growth strategy aimed at increasing revenue
and profitability.
Depreciation: The Net Block is influenced by the depreciation policy adopted by the
company. A higher depreciation rate would result in a lower Net Block.
Additional Insights:
Industry Trends: Comparing the Net Block to industry benchmarks can provide
insights into the company's asset intensity and competitive position.
Capital Structure: The Net Block can be analyzed in conjunction with other financial
metrics (e.g., debt-to-equity ratio) to assess the company's capital structure and financial
health.

NET BLOCK AND GROSS FIXED ASSETS

600000

520761
500000

400000 400281
366106
323073 328916
300000 284738 Series1

200000

100000

0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Interpretations:

a) From 2006-2007 the net block and gross fixed assets is 328916.

b) Where as the Net Block and gross fixed asset is been increased in the year
2009-10.

The chart illustrates the trends in Net Block and Gross Fixed Assets (GFA) from FY
2004-05 to 2009-10.
Key Components:

Net Block: The total value of fixed assets after deducting accumulated depreciation.
Gross Fixed Assets: The total value of fixed assets before deducting accumulated
depreciation.
Data Analysis:

Net Block:The Net Block has generally increased over the years, indicating a growing
investment in fixed assets.
The growth rate has fluctuated, with significant increases in 2005-06 and 2007-08.
Gross Fixed Assets:The Gross Fixed Assets also show an increasing trend, reflecting the
overall accumulation of fixed assets.
The growth rate of Gross Fixed Assets appears to be consistently higher than that of Net
Block.
Interpretation:

Asset Expansion: The increasing Net Block and Gross Fixed Assets suggest that the
company has been investing in fixed assets to expand its operations or improve its
production capacity.
Depreciation: The difference between Gross Fixed Assets and Net Block represents
accumulated depreciation. The increasing gap between the two indicates that the
company is recognizing depreciation expenses.
Capital Structure: Analyzing the relationship between Net Block and Gross Fixed
Assets can provide insights into the company's capital structure and asset utilization.
Additional Insights:

Industry Trends: Comparing the Net Block and Gross Fixed Assets to industry
benchmarks can help assess the company's asset intensity and competitive position.
Financial Ratios: Analyzing financial ratios like fixed asset turnover and property,
plant, and equipment (PPE) to total assets can provide further insights into the
company's asset utilization and efficiency.

TABLE 8:

FY YEAR NET SALES(IN LAKS)

2004-05 229055
2005-06 258117
2006-07 286453
2007-08 315400
2008-09 355502
2009-10 440302
The table provides data on Net Sales (in lakhs) for different financial years (FY) from
2004-05 to 2009-10.
Key Component:

Net Sales: This represents the total revenue generated by the company after deducting
sales returns, allowances, and discounts.
Data Analysis:

Trend: Net Sales have consistently increased over the years, indicating a growing
revenue stream for the company.
Growth Rates:2004-05 to 2005-06: 12.25% increase
2005-06 to 2006-07: 10.95% increase
2006-07 to 2007-08: 10.10% increase
2007-08 to 2008-09: 12.71% increase
2008-09 to 2009-10: 23.78% increase

NET WORTH AND NET ASSETS

500000
450000 440201
400000
350000 355501
315040
300000 286453
250000 258117 Series1
229045
200000
150000
100000
50000
0
04-05 05-06 06-07 07-08 08-09 09-10

Interpretations:
 a) Net worth and net assets has been increasing from year to year from 2005-06
it is 229055 and compare to 2009-10 it has been increased to 440302.

b) By observing the chat we can say the net worth and net assets has been
increasing from 2005-06 to 2009-2010.

TABLE 9 :
FY YEAR PROFIT AFTER TAX
2004-05 34245
2005-06 37338
2006-07 35396
2007-08 36085
2008-09 52609
2009-10 72032

The table provides data on Profit After Tax (in lakhs) for different financial years (FY)
from 2004-05 to 2009-10.
Key Component:

Profit After Tax: This represents the net profit remaining after deducting all taxes from
the company's operating income.
Data Analysis:

Trend: Profit After Tax has generally increased over the years, indicating improved
profitability for the company.
Growth Rates:2004-05 to 2005-06: 8.77% increase
2005-06 to 2006-07: -5.26% decrease
2006-07 to 2007-08: 2.09% increase
2007-08 to 2008-09: 45.57% increase
2008-09 to 2009-10: 37.74% increase
Interpretation:

Profitability Improvement: The overall trend of increasing Profit After Tax indicates
that the company has been able to manage its costs effectively and generate higher
profits.
Fluctuating Growth: The growth rates have varied, suggesting that factors like
economic conditions, market competition, and operational efficiency have influenced
profitability.
Significant Growth: The substantial increases in 2008-09 and 2009-10 highlight periods
of strong financial performance.
Additional Insights:

Return on Investment (ROI): Analyzing Profit After Tax in relation to investments can
help assess the company's return on investment.
Profit Margin: Comparing Profit After Tax to Net Sales can calculate the profit margin
and assess the company's pricing strategy and cost control.
Dividend Payouts: The company's dividend policy and payout ratios can be considered
in relation to Profit After Tax to understand how profits are distributed to shareholders.

PROFIT AFTER TAX

80000 72022
70000
60000 52608
50000
37338 35396 36075
40000 34245 Series1
30000
20000
10000
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Interpretations:

a) The chart show the increase value after the deduction of tax in the year 2009-10.

b) The Profit is changing from year to year in the year 2004-05 it is 34245 where as
increasing value in the year 2004-2005 and decreased, in the year 2009-10 the
value is increased.

FY 2004-05 to 2009-10.
Key Observations:
Profit Trends:The profit levels have varied over the years.
There have been periods of growth and decline in profits.
Data Analysis:

Highest Profit:The highest profit was recorded in FY 2009-10 at approximately 72,022

lakhs.
Lowest Profit:The lowest profit was recorded in FY 2004-05 at approximately 34,245
lakhs.
Profit Growth:From FY 2004-05 to FY 2009-10, the profit levels have generally increased,
with a significant spike in FY 2008-09 and FY 2009-10.
There have been notable peaks and troughs during this period.

Profitability Fluctuations: The profit levels have not been consistent, indicating that
various factors have influenced the company's profitability.
Economic Factors: The variations in profit could be attributed to economic conditions,
market competition, operational efficiency, and changes in tax laws.
Business Performance: The increasing trend in profits suggests that the company has
been able to manage its costs effectively and generate higher revenue.
Additional Insights:

Specific Years: A more detailed analysis could focus on specific years, such as FY 2008-
09 and FY 2009-10, to understand the reasons behind the significant increases in profits.
Comparative Analysis: Comparing the profit trends with other financial metrics (e.g.,
revenue, expenses) can provide further insights into the company's performance.

TABLE 10 :
FY YEAR POWER GENERATION (M UNITS)
2004-05 7470
2005-06 7080
2006-07 7090
2007-08 10923
2008-09 19790
2009-10 19237

from FY 2004-05 to 2009-10

Understanding the Table:
The table provides data on Power Generation (in million units) for
different financial years (FY) from 2004-05 to 2009-10.
Key Component:

Power Generation: This represents the total amount of electricity

generated during the respective financial year.
Data Analysis:

Trend: Power Generation has generally increased over the years, with a
significant jump in 2007-08.
Growth Rates:2004-05 to 2005-06: -5.24% decrease
2005-06 to 2006-07: 1.41% increase
2006-07 to 2007-08: 54.33% increase
2007-08 to 2008-09: 81.25% increase
2008-09 to 2009-10: -2.83% decrease
Interpretation:

Capacity Expansion: The increasing Power Generation indicates that the

company has been expanding its power generation capacity or
improving its operational efficiency.
Demand Growth: The growth in Power Generation may also be driven
by increasing demand for electricity in the region or sector.
Fluctuating Growth: The growth rates have varied significantly,
suggesting that factors like fuel availability, infrastructure development,
and economic conditions have influenced power generation.

GENERATION AND SALES

25000

19790 19237
20000

15000
10823 Series1
10000
7470 7070 7080

5000

0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
 GENERATION IN MUS – SALES IN MILLIONS:

Interpretations:

a) On the X – airs year are been shown from 2004-05 to 2009-10 and the value has
been increasing from year to year.

b) In the year 2004-05 the generation and sale has been 7470 and the value has been
increasing year to year but 2009-2020 the value is decreasing.

FY 2004-05 to 2009-10

Understanding the Chart:

The chart illustrates the trends in Generation and Sales (likely power generation and
sales) from FY 2004-05 to 2009-10.
Key Observations:

Generation:There was a significant increase in generation from FY 2006-07 to FY 2007-

08, followed by a slight decrease in FY 2009-10.
Sales:The data points for sales are not explicitly labeled, but assuming the chart
represents both generation and sales, we can analyze the overall trend.
The overall trend of the data points suggests a similar pattern to generation, with a
significant increase from FY 2006-07 to FY 2007-08 and a slight decrease in FY 2009-10.
Data Analysis:

Highest Generation:The highest generation was recorded in FY 2008-09 at 19,790 units.

Lowest Generation:The lowest generation was recorded in FY 2004-05 at 7,470 units.
Growth Rates:2004-05 to 2005-06: 1.35% increase
2005-06 to 2006-07: 1.41% increase
2006-07 to 2007-08: 54.33% increase
2007-08 to 2008-09: 81.25% increase
2008-09 to 2009-10: -2.83% decrease
Capacity Expansion: The significant increase in generation from FY 2006-07 to FY 2007-
08 suggests that the company may have expanded its production capacity or improved
its operational efficiency.
Demand Fluctuations: The slight decrease in generation and sales in FY 2009-10 might
be attributed to factors like economic conditions, changes in demand, or other external
influences.
Efficiency: Analyzing the relationship between generation and sales can provide
insights into the company's efficiency in converting production into revenue.
Additional Insights:

Industry Trends: Comparing the generation and sales data to industry benchmarks can
help assess the company's performance relative to its peers.
Economic Factors: Analyzing the data in conjunction with economic indicators (e.g.,
GDP, industrial production) can provide a broader understanding of the factors
influencing generation and sales.