You are here » Home » Companies » Company Overview » NHPC Ltd

NHPC Ltd.

BSE: 533098 Sector: Infrastructure
NSE: NHPC ISIN Code: INE848E01016
BSE LIVE 13:55 | 22 Aug 29.25 -0.55
(-1.85%)
OPEN

30.10

HIGH

30.10

LOW

29.15

NSE 13:40 | 22 Aug 29.25 -0.60
(-2.01%)
OPEN

29.95

HIGH

30.10

LOW

29.10

OPEN 30.10
PREVIOUS CLOSE 29.80
VOLUME 702399
52-Week high 34.50
52-Week low 24.00
P/E 10.71
Mkt Cap.(Rs cr) 30,009
Buy Price 29.20
Buy Qty 85.00
Sell Price 29.25
Sell Qty 2650.00
OPEN 30.10
CLOSE 29.80
VOLUME 702399
52-Week high 34.50
52-Week low 24.00
P/E 10.71
Mkt Cap.(Rs cr) 30,009
Buy Price 29.20
Buy Qty 85.00
Sell Price 29.25
Sell Qty 2650.00

NHPC Ltd. (NHPC) - Auditors Report

Company auditors report

To the Members

NHPC Limited

Auditors' Comment Management's Reply
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of NHPC LIMITED ("the Company”) which comprise the Balance Sheet as at 31st March 201 6 the Statement of Profit and Loss the Cash Flow Statement for the year then ended and a summary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error. In making those risk assessments the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company's Directors as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March 2016 and its profit and its cash flows for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:
a) Para to Note No. 7 to the financial statements which describes about the stay from Hon'ble High Court of Delhi against the implementation of stoppage of Personal Pay Adjustment (fitment benefits) recovery from below Board level executives. (a) NHPC Officers Association has got stay from Hon'ble High Court of Delhi against the implementation of stoppage of Personal Pay Adjustment (PA). In view of the directions of the Hon'ble High Court PA to the employees is continued to be paid along with salary.
b) Note no. 11.1 para 2 to the financial statements which describes about the expenditure incurred for conducting survey and investigation on projects either provided for on account of uncertainty about the outcome or being carried forward pending clearance with various authorities. (b) In the opinion of the management the projects on which survey & investigation expenditure is incurred are still active and accordingly the expenditure incurred is being carried forward. However provision wherever considered necessary has been made in the books.
c) Note No. 29 para 1 to the financial statements which describes the uncertainty related to the outcome of the claims/ arbitration proceedings and lawsuit filed by/ against the Company on/ by contractors and others. In some of the cases the arbitration award has been decided against the Company/ lost in lower courts and the company is pursuing the matter in higher courts. Management does not envisage any possible outflow in respect of decisions against the company other than those already provided for in the books of account. (c) This disclosure in the ibid para has been made in compliance of provisions of Accounting Standard-29 (Provisions Contingent Liabilities and Contingent Assets).
d) Note No. 29 para 21 (a) to the financial statements about the various balances which are subject to reconciliation / confirmation and respective consequential adjustments. (d) Disclosure through note is a statement of fact
e) Note No. 29 para 28 to the financial statements about the Kotlibhel-IA project the fate of which is pending adjudication before the Hon'ble Supreme Court of India. (e) Disclosure through note is a statement of fact
f) Accounting Policy no. 2.3.4 on Capital work in progress read with Note No. 29 para 1 5 to the financial statements about the capital expenditure incurred for creation of facilities over which the Company does not have control but the creation of which is essential principally for construction of the project is charged to "Expenditure Attributable to Construction (EAC)” as the same is in line with Revised AS-10 notified on 30.03.201 6 as Para 88 of this Revised Accounting Standard which states about transitional provision that shall result into the same treatment. (f) Disclosure through note is a statement of fact
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order”) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act we give in the "Annexure A” a statement on the matters specified in the paragraphs 3 and 4 of the Order to the extent applicable.
2. The Comptroller and Auditor General of India has issued directions indicating the areas to be examined in terms of sub-section (5) of Section 143 of the Act the compliance of which is set out in "Annexure B”.
3. As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;
(e) In terms of Notification No. G.S.R. 463(E) dated 05th June 2015 issued by the Ministry of Corporate Affairs the provisions of Section 1 64 (2) of the Act regarding disqualification of directors are not applicable to the Company;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls refer to our separate Report in "Annexure C”; and
(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 29 Para 1 to the financial statements;
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

 

For and on behalf of the Board of Directors
VIJAY GUPTA JAYANT KUMAR K.M. SINGH
Company Secretary Director (Finance) Chairman & Managing Director
DIN 03010235 DIN 02223301
As per report of even date
For S.N. Dhawan & Co. For Gupta Gupta & Associates For Ray & Ray
(Chartered Accountants) (Chartered Accountants) (Chartered Accountants)
FR No. 000050N FR No.001728N FR No.301072E
(SURESH SETH) (R. K. GUPTA) (ASISH KUMAR MUKHOPADHYAY)
Partner Partner Partner
M. No.010577 M. No. 085074 M. No. 056359
Place: New Delhi
Date: 28th May 2016