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

NTPC Ltd.

BSE: 532555 Sector: Infrastructure
NSE: NTPC ISIN Code: INE733E01010
BSE LIVE 15:50 | 23 Oct 176.65 1.50
(0.86%)
OPEN

175.00

HIGH

177.50

LOW

173.85

NSE 15:57 | 23 Oct 176.95 1.90
(1.09%)
OPEN

175.05

HIGH

177.90

LOW

173.65

OPEN 175.00
PREVIOUS CLOSE 175.15
VOLUME 84100
52-Week high 179.75
52-Week low 146.00
P/E 14.28
Mkt Cap.(Rs cr) 145,656
Buy Price 0.00
Buy Qty 0.00
Sell Price 176.65
Sell Qty 197.00
OPEN 175.00
CLOSE 175.15
VOLUME 84100
52-Week high 179.75
52-Week low 146.00
P/E 14.28
Mkt Cap.(Rs cr) 145,656
Buy Price 0.00
Buy Qty 0.00
Sell Price 176.65
Sell Qty 197.00

NTPC Ltd. (NTPC) - Auditors Report

Company auditors report

To

The Members of NTPC Limited

Report on the standalone financial statements

We have audited the accompanying standalone financial statements of NTPC Limited("the Company") which comprise the Balance Sheet as at 31st March 2016 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profits and its cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to the following matters in the Notes to the financial statements:

(a) Note No. 12 (i) & 35 (a) in respect of change in accounting of capitalexpenditure on assets not owned by the Company with retrospective effect taking guidanceavailable in AS 10 notified by MCA on 30th March 2016 effective from the financial year2016-17.

(b) Note No. 22 (a) & (b) regarding billing & recognition of sales onprovisional basis and measurement of GCV of coal on ‘as received’ basis aftersecondary crusher pending disposal of the matter by CERC/Hon’ble Delhi High Court andrelated matters as mentioned in said note; (c) Note No. 33 in respect of a Company’songoing project where the order of NGT has been stayed by the Hon’ble Supreme Courtof India and the matter is sub-judice.

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 ("theOrder") issued by the Government of India in terms of sub-section (11) of Section 143of the Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure 1 a statement on the matters specified in the paragraphs 3 and4 of the said Order.

2. We are enclosing our report in terms of Section 143 (5) of the Act on the basis ofsuch checks of the books and records of the Company as we considered appropriate andaccording to the information and explanations given to us in the Annexure 2 on thedirections and sub-directions issued by The Comptroller and Auditor General of India.

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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) Being a Government Company pursuant to the Notification No. GSR 463(E) dated 5thJune 2015 issued by Ministry of Corporate Affairs Government of India provisions ofsub-section (2) of Section 164 of the Companies Act 2013 are not applicable to theCompany.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure 3.

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements. Refer Note 33 34 & 52 to the financialstatements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses on long-term contracts including derivativecontracts.

iii. There has been no delay in transferring the amounts required to be transferredto the Investor Education and Protection Fund by the Company in accordance with therelevant provisions of the Companies Act 1956 (1 of 1956) and Rules made there under.

For T R Chadha & Co LLP For PSD & Associates For Sagar & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
FRN- 006711N/N500028 FRN - 004501C FRN - 003510S
[CA. Neena Goel] [CA. Thalendra Sharma] [CA. V. Vidyasagar Babu]
Partner Partner Partner
M. No. 057986 M. No. 079236 M. No.027357

 

For Kalani & Co. For P. A. & Associates For S. K. Kapoor & Co. For B.M. Chatrath & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
FRN - 000722C FRN - 313085E FRN - 000745C FRN - 301011E
[CA. Vikas Gupta] [CA. P. S. Panda] [CA. V. B. Singh] [CA. P. R. Paul]
Partner Partner Partner Partner
M. No. 077076 M. No.051092 M.No.073124 M. No. 051675

Place : New Delhi

Dated : 30th May 2016

ANNEXURE 1 TO THE AUDITORS’ REPORT

Referred to in our report of even date to the members of NTPC LIMITED on the accountsfor the year ended 31st March 2016

(i) (a) The Company has generally maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) There is a regular programme of physical verification of all fixed assets over aperiod of two years which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. No material discrepancies were noticed on suchverification. (c) The title deeds of all the immovable properties are held in the name ofthe Company except as follows:

Description of Asset No. of cases Area in acres Gross Block as on 31.03.2016 Net Block as on Remarks (If Any) 31.03.2016
Land The Company
- Freehold 2016 10735 2210.91 2210.91 is taking appropriate steps
- Leasehold 1086 16085 3171.86 2869.11 for completion of 17.27 legal formalities
Building & Structures 2 - 50.43

(ii) The inventory has been physically verified by the management at reasonableintervals. No material discrepancies were noticed on such physical verification.

(iii) The Company has not granted any loans secured or unsecured to any companiesfirms limited liability partnership or other parties covered in register maintained underSection 189 of the Companies Act 2013. In view of the above the clauses 3 (iii)(a) 3(iii)(b) and 3 (iii)(c) of the Order are not applicable.

(iv) The Company has not granted any loans or given any guarantee and security coveredunder Section 185 and 186 of the Companies Act 2013. In respect of investment in theSubsidiary and Joint Venture Companies the Company has complied with the provisions ofSection 185 and 186 of the Companies Act 2013.

(v) The Company has not accepted deposits from the public. As such the directivesissued by the Reserve Bank of India the provisions of Sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under are notapplicable to the Company. The Company has obtained deposits from the dependants ofemployees who die or suffer permanent total disability for which the Company has appliedto the Ministry of Corporate Affairs Government of India for continuation of theexemption earlier obtained in respect of applicability of Section 58 A of the CompaniesAct 1956 which is still awaited (refer Note 10 e) of the Financial Statements). No orderhas been passed with respect to Section 73 to 76 by the Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

(vi) We have broadly reviewed the accounts and records maintained by the Companypursuant to the Rules made by the Central Government for the maintenance of cost recordsunder sub-section (1) of Section 148 of the Companies Act 2013 read with Companies (CostRecords & Audit) Rules 2014 and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have not however made detailedexamination of the records with a view to determine whether they are accurate andcomplete.

(vii) (a) Undisputed statutory dues including provident fund income tax sales-taxwealth tax service tax custom duty excise duty value added tax cess and otherstatutory dues have generally been regularly deposited with the appropriate authoritiesand there are no undisputed dues outstanding as on 31st March 2016 for a period of morethan six months from the date they became payable. We have been informed thatemployees’ state insurance is not applicable to the Company.

(b) The disputed statutory dues aggregating to Rs 891.02 crore that have not beendeposited on account of matters pending before appropriate authorities are detailed below:

Sl. Name of Statute Nature of dues Forum where the dispute is pending Amount
No (` in crore)
1 Central Sales Tax and Sales Tax / VAT Acts of various states Sales Tax/ VAT Additional Commissioner of Sales Tax 9.13
Commissioner of Sales Tax 41.39
Dy. Commissioner of Sales Tax 0.02
High Court* 823.34
Sales/Trade Tax Tribunal 3.05
Appellate Tribunal 4.24
2. Central Excise Act 1944 Central Excise Duty / Service Tax CESTAT & Appellate Tribunal of CEST 9.63
3. Income Tax Act 1961 Income Tax Income Tax Appellate Tribunal 0.04
Asst. Commissioner of Income Tax 0.18
Total 891.02

* Includes Rs 538.71 crore towards the demand for electricity duty raised by Dy.Commissioner Commercial Tax which has been stayed by the Hon’ble High Court.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of dues to financial institutions banks ordebenture holders.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer. According to the information and explanations given to us the money raisedby the Company by way of debt instruments and term loans have been applied for the purposefor which they were obtained.

(x) According to the information and explanations given to us and as represented by theManagement and based on our examination of the books and records of the Company and inaccordance with generally accepted auditing practices in India no case of frauds by theCompany or any fraud on the company by its officers or employees has been noticed orreported during the year.

(xi) As per notification no. GSR 463(E) dated 5th June 2015 issued by the Ministry ofCorporate Affairs Government of India Section 197 is not applicable to the GovernmentCompanies. Accordingly provisions of clause 3 (xi) of the Order are not applicable to theCompany. (xii) The provisions of clause 3 (xii) of the Order for Nidhi Company are notapplicable to the Company.

(xiii) The Company has complied with the provisions of Section 177 and 188 of theCompanies Act 2013 w.r.t. transactions with the related parties wherever applicable.Details of the transactions with the related parties have been disclosed in the financialstatements as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly provisions of clause 3 (xiv) of the Order are not applicable to the Company.

(xv) The Company has not entered into any non-cash transactions with the directors orpersons connected with them as covered under Section 192 of the Companies Act 2013.

(xvi) According to information and explanation given to us the Company is not requiredto be registered u/s 45-IA of Reserve Bank of India Act 1934. Accordingly provision ofclause 3(xvi) of the Order is not applicable to the Company.

For T R Chadha & Co LLP For PSD & Associates For Sagar & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
FRN- 006711N/N500028 FRN - 004501C FRN - 003510S
[CA. Neena Goel] [CA. Thalendra Sharma] [CA. V. Vidyasagar Babu]
Partner Partner Partner
M. No. 057986 M. No. 079236 M. No.027357

 

For Kalani & Co. For P. A. & Associates For S. K. Kapoor & Co. For B.M. Chatrath & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
FRN - 000722C FRN - 313085E FRN - 000745C FRN - 301011E
[CA. Vikas Gupta] [CA. P. S. Panda] [CA. V. B. Singh] [CA. P. R. Paul]
Partner Partner Partner Partner
M. No. 077076 M. No.051092 M.No.073124 M. No. 051675

Place : New Delhi Dated : 30th May 2016

ANNEXURE 2 TO THE INDEPENDENT AUDITORS’ REPORT

Referred to in our report of even date to the members of NTPC LIMITED on the accountsfor the year ended 31st March 2016

Sl. No. Directions u/s 143(5) of the Companies Act 2013 Auditor’s reply on action taken on the directions Impact on financial statement
1 Whether the Company has clear title/lease deeds for freehold and leasehold land respectively? If not please state the area of the freehold and leasehold land for which title/ lease deeds are not available. The Company is having clear title/lease deeds for entire freehold and leasehold land except 10735 acres of freehold land valuing Rs 2210.91 crore and 16085 acres of leasehold land valuing Rs 3171.86 crore. According to information and explanation given to us reasonable steps have been taken by the Company for getting the titles of these land in its favour. Nil
2 Whether there are any cases of waiver/write off of debts/loans/ interest etc. if yes the reasons thereof and the amount involved. According to information and explanations given to us there are no cases of waiver/write off of debts/ loans/interest etc. Nil
3 Whether proper records are maintained for inventories lying with third parties & assets received as gift from Govt. or other authorities? Proper records are maintained for inventories lying with third parties and also for assets received as gift from Government or other authorities. Nil

 

For T R Chadha & Co LLP For PSD & Associates For Sagar & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
FRN- 006711N/N500028 FRN - 004501C FRN - 003510S
[CA. Neena Goel] [CA. Thalendra Sharma] [CA. V. Vidyasagar Babu]
Partner Partner Partner
M. No. 057986 M. No. 079236 M. No.027357

 

For Kalani & Co. For P. A. & Associates For S. K. Kapoor & Co. For B.M. Chatrath & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
FRN - 000722C FRN - 313085E FRN - 000745C FRN - 301011E
[CA. Vikas Gupta] [CA. P. S. Panda] [CA. V. B. Singh] [CA. P. R. Paul]
Partner Partner Partner Partner
M. No. 077076 M. No.051092 M.No.073124 M. No. 051675

Place : New Delhi

Dated : 30th May 2016

ANNEXURE 3 TO THE AUDITORS’ REPORT

Referred to in our report of even date to the members of NTPC LIMITED on the accountsfor the year ended 31st March 2016 Report on the Internal Financial Controls under Clause(i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of NTPCLimited ("the Company") as of 31st March 2016 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial control system over financial reporting and their operatingeffectiveness. Our audit of internal financial control over financial reporting includedobtaining an understanding of internal financial control over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal controls over financial reporting criteria established by the Company consideringthe components of internal controls stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the ICAI.

For T R Chadha & Co LLP For PSD & Associates For Sagar & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
FRN- 006711N/N500028 FRN - 004501C FRN - 003510S
[CA. Neena Goel] [CA. Thalendra Sharma] [CA. V. Vidyasagar Babu]
Partner Partner Partner
M. No. 057986 M. No. 079236 M. No.027357

 

For Kalani & Co. For P. A. & Associates For S. K. Kapoor & Co. For B.M. Chatrath & Co.
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
FRN - 000722C FRN - 313085E FRN - 000745C FRN - 301011E
[CA. Vikas Gupta] [CA. P. S. Panda] [CA. V. B. Singh] [CA. P. R. Paul]
Partner Partner Partner Partner
M. No. 077076 M. No.051092 M.No.073124 M. No. 051675

Place : New Delhi

Dated : 30th May 2016