Mar 31, 2019
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the Standalone Financial Statements of NTPC Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2019, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âStandalone Financial Statementsâ).
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 Companies Act, 2013 (âthe Actâ) 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 (financial position) of the Company as at 31 March, 2019, and its profit (financial performance including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to the following matters in the notes to the Standalone Financial Statements:
(a) Note No. 32(a) regarding billing and recognition of sales on provisional basis pending disposal of the Companyâs petition before CERC on the measurement of GCV of coal on âas receivedâ basis measured on wagon top at the unloading point, on the adjustment of loss of GCV for the period 2014-19 and other related matters as mentioned in the said note.
(b) Note No. 42 in respect of a Companyâs project consisting of three units of 800MW each, where the order of NGT has been stayed by the Honâble Supreme Court of India; the matter is sub-judiced and the units have since been declared commercial.
(c) Note No. 57(iii)(b) with respect to appeal filed by the company with the Honâble High Court of Delhi in the matter of Arbitral award pronounced against the company and the related provision made/disclosure of contingent liability as mentioned in the said note.
Our opinion is not modified in respect of these matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, description of how our audit addressed the matter is provided in that context. We have determined the matters described below to be the key audit matters to be communicated in our report.
Sr. No. |
Key Audit Matter |
How our audit addressed the Key Audit Matter |
1. |
recognition and Measurement of revenue from Sale of Energy The company records revenue from sale of energy as per the principles enunciated under Ind AS 115, based on tariff rates approved by the Central Electricity Regulatory Commission (CERC) as modified by the orders of Appellate Authorities. However, in cases where tariff rates are yet to be approved, provisional rates are adopted considering the applicable CERC Tariff Regulations. This is considered as key audit matter due to the nature and extent of estimates made as per the CERC Tariff Regulations, which leads to recognition and measurement of revenue from sale of energy being complex and judgemental. (Refer Note No. 32 to the Standalone Financial Statements, read with the Significant Accounting Policy No. C.15) |
We have obtained an understanding of the CERC Tariff Regulations, orders, circulars, guidelines and the Companyâs internal circulars and procedures in respect of recognition and measurement of revenue from sale of energy comprising of capacity and energy charges and adopted the following audit procedures: - Evaluated and tested the effectiveness of the Companyâs design of internal controls relating to recognition and measurement of revenue from sale of energy. - Verified the accounting of revenue from sale of energy based on tariff rates approved by the CERC as modified by the orders of Appellate Authorities. In case of power stations where the tariff rates are yet to be approved, provisional rates are adopted in accordance with the principles given in the CERC Tariff Regulations. Based on the above procedure performed, the recognition and measurement of revenue from sale of energy are considered to be adequate and reasonable. |
2. |
impairment assessment of Property, Plant and Equipment (PPE) The Company has a material operational asset base (PPE) relating to generation of electricity and is one of the components for determining the tariff as per the CERC Tariff Regulations, which may be vulnerable to impairment. We considered this as a key audit matter as the carrying value of PPE requires impairment assessment based on the future expected cash flows associated with the power plants (Cash generating units). (Refer Note No. 56(a) to the Standalone Financial Statements, read with the Accounting Policy No. C.20) |
We have obtained an understanding and tested the design and operating effectiveness of controls as established by the Companyâs management for impairment assessment of PPE. We evaluated the Companyâs process of impairment assessment involving valuation experts to assist in assessing the appropriateness of the impairment model including the independent assessment of discount rate, economic growth rate, terminal value etc. We evaluated and checked the calculations of the cash flow forecasts prepared by the Company taking into consideration the CERC (Terms and Conditions of Tariff) Regulations, 2019 (applicable for the tariff period of 5 years from 1 April 2019 to 31 March 2024) along with the aforementioned assumptions. Based on the above procedures performed, we observed that the Companyâs impairment assessment of the PPE is adequate and reasonable. |
3. |
Deferred Tax Asset relating to MAT Credit Entitlement and corresponding regulatory Deferral Liability The company has recognised deferred tax asset relating to MAT credit entitlement. Utilisation of MAT credit will result in lower outflow of Income Tax in future years and accordingly Regulatory Deferral Liability corresponding to the said MAT credit entitlement has also been recognised, |
We have obtained an understanding for recognition of deferred tax asset relating to MAT credit entitlement and corresponding liability of the same in Regulatory Deferral Account including the managementâs judgement. |
Payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations. The recoverability of this deferred tax asset relating to MAT credit entitlement is dependent upon the generation of sufficient future taxable profits to utilise such entitlement within the stipulated period prescribed under the Income Tax Act,1961. |
We further assessed the related forecasts of future taxable profits and evaluated the reasonableness of the considerations/assumptions underlying the preparation of these forecasts. We have also verified the regulatory deferral account balance corresponding to the said MAT credit payable to the beneficiaries in subsequent periods. |
|
We identified this as a key audit matter because of the importance of this matter to the intended users of the Financial Statements and its materiality; and requirement of judgement in forecasting future taxable profits for recognition of MAT credit entitlement considering the recoverability of such tax credits within allowed time frame as per the provisions of the Income Tax Act,1961. |
Based on the above procedures performed, the recognition and measurement of Deferred tax asset relating to MAT credit entitlement and corresponding Regulatory Deferral Liability towards beneficiaries, are considered adequate and reasonable. |
|
(Refer Note No. 18, 25, 48 & 65 to the Standalone Financial Statements, read with the Accounting Policy No. C.4 and C.18) |
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4. |
Contingent Liabilities |
|
There are a number of litigations pending before various forums against the Company and the managementâs judgement is required for estimating the amount to be disclosed as contingent liability. |
We have obtained an understanding of the Companyâs internal instructions and procedures in respect of estimation and disclosure of contingent liabilities and adopted the following audit procedures: |
|
We identified this as a key audit matter because the estimates on which these amounts are based involve a significant degree of management judgement in interpreting the cases and it may be subject to management bias. |
- understood and tested the design and operating effectiveness of controls as established by the management for obtaining all relevant information for pending litigation cases; |
|
(Refer Note No. 69 to the Standalone Financial Statements, read with the Accounting Policy No. C.13) |
- discussed with the management any material developments and latest status of legal matters; - read various correspondences and related documents pertaining to litigation cases and relevant external legal opinions obtained by the management and performed substantive procedures on calculations supporting the disclosure of contingent liabilities; - examined managementâs judgements and assessments whether provisions are required; - considered the management assessments of those matters that are not disclosed as the probability of material outflow is considered to be remote; - reviewed the adequacy and completeness of disclosures; Based on the above procedures performed, the estimation and disclosures of contingent liabilities are considered to be adequate and reasonable. |
Other Matter
We audited the adjustments, as fully described in Note No. 47(A) to the Standalone Financial Statements, which have been made to the comparative Standalone Financial Statements presented for the years prior to year ended 31 March 2019. In our opinion, such adjustments are appropriate and have been properly applied.
Information Other than the Standalone Financial Statements and Auditorâs Report Thereon
The Companyâs Board of Directors is responsible for the preparation of the other information. The other information comprises the Corporate Governance Report (but does not include the Standalone Financial Statements and our auditorâs report thereon), which we obtained prior to the date of this auditorâs report (hereinafter referred to as âCG reportâ), and the information included in the Directorâs Report including Annexures, Management Discussion and Analysis, Business Responsibility Report and other company related information (hereinafter referred to as âOther reportsâ). The Other reports are expected to be made available to us after the date of this auditorâs report.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information included in the CG report that we obtained prior to the date of this auditorâs report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the âOther reportsâ, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate actions, if required.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of 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, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended. 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 Standalone Financial Statements, that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs responsibilities for the Audit of the standalone financial statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate Internal Financial Controls with reference to Standalone Financial Statements in place and the operating effectiveness of such controls.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in âAnnexure 1â a statement on the matters specified in paragraphs 3 and 4 of the said Order.
2. We are enclosing our report in terms of Section 143(5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the âAnnexure 2â on the directions 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 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 (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flow 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 Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.
(e) Being a Government Company pursuant to the Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, provisions of sub-section (2) of Section 164 of the Act, are not applicable to the Company.
(f) With respect to the adequacy of the Internal Financial Controls with reference to Standalone Financial Statements of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure 3â.
(g) As per Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 of the Act is not applicable to the Government Companies. Accordingly, reporting in accordance with requirement of provisions of section 197(16) of the Act is not applicable on the Company.
(h) With respect to the other matters to be included in the Auditorâs 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 Standalone Financial Statements. Refer Note No. 69 to the Standalone Financial Statements;
II. The Company has made provision, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
III. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE 1 TO THE INDEPENDENT AUDITORSâ REPORT
Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date to the members of NTPC LIMITED on the Standalone Financial Statements for the year ended 31 March 2019
(i) (a) The Company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets (Property, Plant & Equipment).
(b) The Company is having a regular programme of physical verification of all fixed assets (Property, Plant & Equipment) over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties are held in the name of the Company except as follows:
Description of Asset |
No. of cases |
Area in acres |
Gross block as on 31.03.2019 (Rs. Crore) |
Net block as on 31.03.2019 (Rs. Crore) |
Remarks (if Any) |
Land |
The Company is taking appropriate steps for completion of legal formalities |
||||
- Freehold |
1183 |
10,124 |
1,478.01 |
1,478.01 |
|
- Leasehold |
669 |
10,592 |
1,543.62 |
1,362.57 |
|
Building & Structures |
2 |
- |
4.97 |
3.04 |
(ii) The inventory has been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such physical verification.
(iii) The Company has not granted any loans, secured or unsecured to any companies, firms, limited liability partnership or other parties covered in the register maintained under Section 189 of the Act.
In view of the above, clause 3 (iii)(a), 3 (iii)(b) and 3 (iii)(c) of the Order are not applicable.
(iv) The Company has complied with the provisions of Section 185 and 186 of the Act, as applicable, in respect of loans advanced to subsidiary companies & joint venture company and investments made in the subsidiary and joint venture companies. The Company has not given any guarantee or provided any security to any party covered under Section 185 and 186 of the Act.
(v) The Company has not accepted deposits from the public. As such, the directives issued by the Reserve Bank of India, the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under are not applicable to the Company. The Company has obtained deposits from the dependents of employees who die or suffer permanent total disability for which the Company has applied to the Ministry of Corporate Affairs, Government of India for continuation of the exemption earlier obtained in respect of applicability of Section 58A of the Companies Act, 1956, which is still awaited (refer Note No. 28 (d) of the Standalone Financial Statements). No order has been passed with respect to Section 73 to 76, by the Company Law Board or National Company 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 Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act read with Companies (Cost Records & Audit) Rules, 2014 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made detailed examination of the records with a view to determine whether they are accurate and complete.
(vii) (a) Undisputed statutory dues including provident fund, income tax, goods and service tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues (as applicable) have generally been regularly deposited with the appropriate authorities and there are no undisputed statutory dues outstanding as on 31 March 2019 for a period of more than six months from the date they became payable. We have been informed that employeesâ state insurance is not applicable to the Company.
(b) According to information and explanations given to us, the gross disputed statutory dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax amounts to Rs.10,696.19 crore in aggregate as on 31 March 2019, out of which Rs. 3,055.82 crore has been deposited under protest/adjusted by tax authorities and the balance of Rs. 7,640.37 crore of dues have not been deposited on account of matters pending before appropriate authorities as detailed below:
Sl. No. |
Name of Statute |
Nature of the disputed statutory dues |
Period to which the amount relates (FY) |
Forum where the dispute is pending |
Gross disputed amount (Rs. Crore) |
Amount deposited under protest/ adjusted by Tax Authorities (Rs.crore) |
Amount not deposited (Rs. Crore) |
1 |
Income Tax Act, 1961 |
Income Tax/ Penalty/ TDS |
1978-79 |
Supreme Court |
0.45 |
0.45 |
- |
2001-02, 2004-05 to 2011-12 |
Income Tax Appellate Tribunal* |
8,371.26 |
1,661.87 |
6,709.39 |
|||
2009-10 to 2014-15 |
Commissioner of Income Tax (Appeals) |
1,685.01 |
1,379.35 |
305.66 |
|||
2013-14 to 2014-15 |
Asst. Commissioner of Income Tax |
0.32 |
0.12 |
0.20 |
|||
2006-07, 2009-10, 2017-18 |
ITO (TDS)/AO |
0.81 |
0.78 |
0.03 |
|||
2003-04 |
Appeal not yet filed by IT department with High Court (Time limit not lapsed) |
395.69 |
395.69 |
||||
2 |
Income Tax Ordinance of Bangladesh, 1984 |
Income Tax |
2012-13 to 2013-14 |
Commissioner of Taxes (Appeal), Dhaka, Bangladesh |
2.63 |
0.26 |
2.37 |
3 |
Central Sales Tax and VAT Acts of various States |
Central Sales Tax/VAT |
1997-98, 2000-01 |
High Court |
2.45 |
- |
2.45 |
1985-86, 2000-01 to 2011-12, 201314 to 2014-15 |
Appellate Tribunal/ Board of Revenue |
31.40 |
8.28 |
23.12 |
|||
2005-06 to 2008-09 |
Commissioner of Sales Tax ** |
2.37 |
1.17 |
1.20 |
|||
2000-01, 2002-03, 2004-05, 2006-07 2014-15 to 2015-16 |
Additional Commissioner of Sales Tax *** |
5.07 |
1.58 |
3.49 |
|||
1988-89 to 1997-98, 2011-12 2015-16 |
Additional Commissioner of Sales Tax (Appeal) |
2.13 |
0.17 |
1.96 |
|||
2008-09 |
Deputy Commissioner of Sales Tax(Appeals) |
0.05 |
- |
0.05 |
|||
2001-02 to 2006-07 |
Deputy Commissioner of Sales Tax |
11.70 |
0.01 |
11.69 |
|||
2000 -01, 2005-06 |
Joint Commissioner of Sales Tax**** |
1.04 |
0.36 |
0.68 |
4 |
Central Excise Act, 1944 |
Duty of Excise |
2009-10, 2011-12 to 2014-15 |
CESTAT***** |
1.45 |
0.10 |
1.35 |
2015-16 to 2016-17 |
Commissioner (Appeals) |
0.24 |
0.04 |
0.20 |
|||
5 |
Finance Act, 1994 |
Service Tax |
2009-10 to 2012-13 |
High Court |
0.18 |
- |
0.18 |
2009-10 to 2016-17 |
CESTAT |
172.52 |
0.35 |
172.17 |
|||
2009-10 to 2016-17 |
Commissioner (Appeals) |
3.35 |
0.64 |
2.71 |
|||
2015-16 to 2016-17 |
Assistant Commissioner (Appeals) |
0.33 |
0.02 |
0.31 |
|||
2012-13 to 2016-17 |
Assistant Commissioner of CEST |
0.57 |
0.25 |
0.32 |
|||
2012-13 to 2016-17 |
Appeal yet to be filed (Time limit not lapsed) |
0.01 |
- |
0.01 |
|||
6 |
Customs Act, 1962 |
Duty of Customs |
1999-2000, 2006-07 to 2010-11 |
CESTAT |
4.87 |
- |
4.87 |
2005-06 to 2015-16 |
Commissioner of Customs (Appeals) |
0.29 |
0.02 |
0.27 |
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Total |
10,696.19 |
3,055.82 |
7,640.37 |
* Includes disputed amount of Rs. 5,427.00 crore in respect of certain matters, where the first appellate authority has decided in favour of the company, although the Assessing Officer has disputed the same with appropriate Appellate Authority.
** Includes Rs. 2.08 crore and Rs. 0.29 crore towards the demand for VAT raised by Sales tax officer, which has been stayed by the Honâble High Court and Commissioner of Sales tax respectively.
*** Includes Rs. 5.01 crore towards the demand for VAT and CST raised by Sales tax authority, which has been stayed by Commissioner/Additional Commissioner of Sales Tax.
**** Includes Rs. 1.02 crore towards the demand for CST raised by Sales tax officer, which has been stayed by the Honâble High Court.
***** Includes Rs. 0.30 crore towards the demand for service tax raised by Commissioner, Central Excise Customs and Service Tax which has been stayed by CESTAT.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to financial institutions, banks or dues to debenture holders. The company has not taken any loan from the Government.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments). According to the information and explanations given to us, the money raised by the Company by way of term loans have been applied for the purposes for which they were obtained.
(x) According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, no case of frauds by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
xi) As per Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 of the Act is not applicable to the Government Companies. Accordingly, provisions of clause 3 (xi) of the Order are not applicable to the Company.
(xii) The provisions of clause 3 (xii) of the Order, for Nidhi Company, are not applicable to the Company.
(xiii) The Company has complied with the provisions of Section 177 and 188 of the Act w.r.t. transactions with the related parties, wherever applicable. Details of the transactions with the related parties have been disclosed in the Standalone Financial Statements as required by the applicable Indian Accounting Standards.
(xiv) The Company has not made any preferential allotment or private placement of shares 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 or persons connected with them as covered under Section 192 of the Act.
(xvi) According to information and explanation given to us, the Company is not required to be registered under section 45-IA of Reserve Bank of India Act, 1934. Accordingly, provision of clause 3(xvi) of the Order is not applicable to the Company.
ANNEXURE 3 TO THE INDEPENDENT AUDITORSâ REPORT
Referred to in paragraph 3 (f) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date to the members of NTpC Limited on the standalone Financial statements for the year ended 31 March 2019 Report on the Internal financial Controls with reference to standalone financial statements under Clause (i) of sub-section 3 of section 143 of the Act
We have audited the internal financial controls with reference to Standalone Financial Statements of NTPC Limited (âthe Companyâ) as of 31 March 2019 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls with reference to Standalone Financial Statements based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by The Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to Standalone Financial Statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to Standalone Financial Statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control system with reference to Standalone Financial Statements and their operating effectiveness. Our audit of internal financial control with reference to Standalone Financial Statements included obtaining an understanding of internal financial control with reference to Standalone Financial Statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system with reference to Standalone Financial Statements.
Meaning of Internal financial Controls with reference to standalone financial statements
A Companyâs internal financial control with reference to Standalone Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A Companyâs internal financial control with reference to Standalone Financial Statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companyâs assets that could have a material effect on the Standalone Financial Statements.
Inherent Limitations of internal Financial Controls with reference to Standalone Financial Statements
Because of the inherent limitations of internal financial controls with reference to Standalone Financial Statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to Standalone Financial Statements to future periods are subject to the risk that the internal financial controls with reference to Standalone Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system with reference to Standalone Financial Statements in place and such internal financial controls with respect to Standalone Financial Statements were operating effectively as at 31 March 2019, based on the internal controls over financial reporting criteria established by the Company considering the components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the ICAI.
For T R Chadha & Co LLP For S. N. Dhawan & Co. LLP For Sagar & Associates
Chartered Accountants Chartered Accountants Chartered Accountants
FRN 006711N/N500028 FRN 000050N/N500045 FRN 003510S
(Neena Goel) (S.K. Khattar) (V. Vidyasagar Babu)
Partner Partner Partner
M. No.057986 M. No. 084993 M No. 027357
For Kalani & Co. For P.A. & Associates For S.K. Kapoor & Co. For B M Chatrath & Co LLP
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
FRN 000722C FRN 313085E FRN 000745C FRN 301011E/E300025
(Vikas Gupta) (S. S. Poddar) (V. B. Singh) (Sanjay Sarkar)
Partner Partner Partner Partner
M. No. 077076 M.No.051113 M.No. 073124 M. No. 064305
Place: New Delhi
Date: 25 May, 2019
Mar 31, 2017
We have audited the accompanying Standalone Ind AS financial statements of NTPC Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2017, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended. 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 Standalone Ind AS financial statements, that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS 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 of the Standalone Ind AS financial statements 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 Standalone Ind AS 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 Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the Standalone Ind AS 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 the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the Standalone Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS 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 including the Ind AS, of the state of affairs (financial position) of the Company as at 31 March, 2017, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity 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. 37 a) & b) regarding billing & recognition of sales on provisional basis and measurement of GCV of coal on âas receivedâ basis after secondary crusher till 30 September 2016 and GCV measured on wagon top at the unloading point w.e.f. 1 October 2016 in respect of most of the stations pending disposal of petition by CERC and ratification by Honâble Delhi High Court and related matters as mentioned in the said note.
(b) Note No. 47 in respect of a Companyâs ongoing project where the order of NGT has been stayed by the Honâble Supreme Court of India and the matter is sub-judice.
(c) Note No. 60 regarding recognition of an impairment loss of Rs.782.95 crore in respect of investment in joint venture Ratnagiri Gas & Power Private Limited (RGPPL) as âExceptional items - impairment loss on investmentâ in the Statement of Profit and Loss based on recoverable amount of these investments arrived at by an independent expert after considering the proposed demerger scheme awaiting approval of NCLT, New Delhi.
Our opinion is not modified in respect of these matters.
Other Matters
The comparative financial information of the Company for the year ended 31 March 2016 and the transition date opening balance sheet as at 1 April 2015 included in these Standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by us/the predecessor auditors, whose audit report for the year ended 31 March 2016 and 31 March 2015 dated 30 May 2016 and 29 May 2015 respectively expressed an unmodified opinion on those Standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
Our opinion is not modified in respect of above matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in âAnnexure 1â a statement on the matters specified in paragraphs 3 and 4 of the said Order.
2. We are enclosing our report in terms of Section 143(5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the âAnnexure 2â on the directions 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 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 (including Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.
(e) Being a Government Company pursuant to the Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, provisions of sub-section (2) of Section 164 of the Act, 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 âAnnexure 3â.
(g) With respect to the other matters to be included in the Auditorâs 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 Standalone Ind AS financial statements. Refer Note No. 71 to the financial statements.
ii. The Company has made provision, as required under the applicable law or Indian accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in Note No. 73 of its financial statements as to holdings as well as dealings in Specified Bank Notes (SBN) during the period from 8 November 2016 to 30 December 2016. Based on the audit procedures and relying on the management representation, we report that the disclosures are in accordance with the books of accounts and records maintained by the Company. However, as stated in the said note, SBN aggregating to Rs.39,44,500/- have been received during the period from transactions at hospitals/guest houses etc. and from deposit of imprest/staff advance by employees of the company at project stations, which were not permitted.
ANNEXURE 1 TO THE INDEPENDENT AUDITORSâ REPORT
Referred to in our report of even date to the members of NTPC LIMITED on the accounts for the year ended 31 March 2017
(i) (a) The Company has generally maintained proper records showing full particulars including quantitative details and situation of fixed assets (Property, Plant & Equipment).
(b) There is a regular programme of physical verification of all fixed assets (Property, Plant & Equipment) over a period of two years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties are held in the name of the Company except as follows:
Description of Asset |
No. of cases |
Area in acres |
Gross block as on 31.03.2017 (Rs. Crore) |
Net block as on 31.03.2017 (Rs. Crore) |
Remarks (If Any) |
Land |
The Company is taking appropriate steps for completion of legal formalities |
||||
- Freehold |
920 |
9,235 |
1,940.44 |
1,940.44 |
|
- Leasehold |
589 |
12,570 |
1,869.67 |
1,735.89 |
|
Building & Structures |
2 |
- |
4.97 |
3.14 |
(ii) The inventory has been physically verified by the management at reasonable intervals. No material discrepancies were noticed on such physical verification.
(iii) The Company has not granted any loans, secured or unsecured to any companies, firms, limited liability partnership or other parties covered in the register maintained under Section 189 of the Act.
In view of the above, clause 3 (iii)(a), 3 (iii)(b) and 3 (iii)(c) of the Order are not applicable.
(iv) The Company has complied with the provisions of Section 185 and 186 of the Act in respect of loans advanced to subsidiary companies and investments made in the subsidiary and joint venture companies. The Company has not given any guarantee or provided any security to any party covered under Section 185 and 186 of the Act.
(v) The Company has not accepted deposits from the public. As such, the directives issued by the Reserve Bank of India, the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under are not applicable to the Company. The Company has obtained deposits from the dependants of employees who die or suffer permanent total disability for which the Company has applied to the Ministry of Corporate Affairs, Government of India for continuation of the exemption earlier obtained in respect of applicability of Section 58 A of the Companies Act, 1956, which is still awaited (refer Note 31 c) of the Financial Statements). No order has been passed with respect to Section 73 to 76, by the Company Law Board or National Company 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 Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act read with Companies (Cost Records & Audit) Rules, 2014 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made detailed examination of the records with a view to determine whether they are accurate and complete.
(vii) (a) Undisputed statutory dues including provident fund, income tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues have generally been regularly deposited with the appropriate authorities and there are no undisputed statutory dues outstanding as on 31 March 2017 for a period of more than six months from the date they became payable. We have been informed that employeesâ state insurance is not applicable to the Company.
(b) According to information and explanations given to us, the gross disputed statutory dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax amounts to Rs.9,759.85 crore in aggregate as on 31 March 2017, out of which Rs.9,564.74 crore has been deposited under protest/adjusted by tax authorities and the balance of Rs.195.10 crore of dues have not been deposited on account of matters pending before appropriate authorities as detailed below:
Sl. No. |
Name of Statute |
Nature of the disputed statutory dues |
Period to which the amount relates (FY) |
Forum where the dispute is pending |
Gross disputed amount (Rs. Crore) |
Amount deposited under protest/ adjusted by tax authorities (Rs. Crore) |
Amount not deposited (Rs. Crore) |
1 |
Income Tax Act, 1961 |
Income Tax/ Penalty/ TDS |
2006-07, 2009-10 |
ITO (TDS)/AO |
0.79 |
0.78 |
0.01 |
2013-14 |
Asst. Commissioner of Income Tax |
0.12 |
0.12 |
- |
|||
2005-06, 2007-08, 2009-10 to 2013-14 |
Commissioner of Income Tax (Appeals) |
2,296.70 |
2,158.36 |
138.34 |
|||
2001-02, 2003-04 to 2011-12 |
Income Tax Appellate Tribunal |
7,326.56 |
7,326.52 |
0.04 |
|||
2004-05 |
High Court |
68.63 |
68.63 |
- |
|||
1978-79 |
Supreme Court |
0.45 |
0.45 |
- |
|||
2 |
Income Tax Ordinance of Bangladesh, 1984 |
Income Tax |
2012-13, 2013-14 |
Commissioner of Taxes (Appeal), Dhaka, Bangladesh |
2.74 |
2.74 |
|
3 |
Central Sales Tax and VAT Acts of various States |
Central Sales Tax/VAT |
1988-89 to 1997-98, 2000-01, 2002-03, 2004-05, 2006-07, 2011-12 |
Additional Commissioner of Sales Tax10 |
6.50 |
1.52 |
4.98 |
2001-02 to 2006-07 |
Deputy Commissioner of Sales Tax |
11.66 |
- |
11.66 |
|||
2000-01, 2005-06 |
Joint Commissioner of Sales Tax11 |
1.04 |
0.36 |
0.68 |
|||
2004-05 to 2007-08 |
Commissioner of Sales Tax |
16.80 |
6.17 |
10.63 |
|||
1985-86, 2000-01 to 2010-11 |
Appellate Tribunal/ Board of Revenue |
16.10 |
1.69 |
14.41 |
|||
1997-98 2000-01 |
High Court |
2.18 |
- |
2.18 |
4 |
Finance Act, 1994 |
Service Tax |
2011-12 to 2015-16 |
Appeal yet to be filed (within 3 months from date of order of 30.3.17) |
0.38 |
0.38 |
|
2012-13 to 2014-15 |
Additional Commissioner of CEST |
0.70 |
0.01 |
0.69 |
|||
2009-10 to 2013-14 |
Commissioner (Appeals) |
0.74 |
0.02 |
0.72 |
|||
2005- 06 to 2015-16 |
CESTAT12 |
2.23 |
0.05 |
2.18 |
|||
5 |
Customs Act, 1962 |
Duty of Customs |
1999-2000, 2010-11 |
Assistant Commissioner of CEST |
4.50 |
- |
4.50 |
2005-06 to 2015-16 |
Additional Commissioner of CEST |
0.28 |
0.02 |
0.26 |
|||
6 |
Central Excise Act, 1944 |
Duty of Excise |
2011-12 to 2014-15 |
Commissioner (Appeals) |
0.74 |
0.04 |
0.70 |
Total |
9,759.84 |
9,564.74 |
195.10 |
* Includes Rs.5.01 crore towards the demand for VAT and CST raised by Sales tax authority, which has been stayed by Commissioner/Additional Commissioner of Sales Tax.
** Includes Rs.1.02 crore towards the demand for CST raised by Sales tax officer, which has been stayed by the Honâble High Court.
*** Includes Rs. 2.08 crore and Rs. 0.29 crore towards the demand for VAT raised by Sales tax officer, which has been stayed by the Honâble High Court and Commissioner of Sales tax respectively.
*** Includes Rs.0.30 crore towards the demand for service tax raised by Commissioner, Central Excise Customs and Service Tax which has been stayed by CESTAT.
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders.
(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments). According to the information and explanations given to us, the money raised by the Company by way of term loans have been applied for the purpose for which they were obtained.
(x) According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, no case of frauds by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) As per Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 of the Act is not applicable to the Government Companies. Accordingly, provisions of clause 3 (xi) of the Order are not applicable to the Company.
(xii) The provisions of clause 3 (xii) of the Order, for Nidhi Company, are not applicable to the Company.
(xiii) The Company has complied with the provisions of Section 177 and 188 of the Act w.r.t. transactions with the related parties, wherever applicable. Details of the transactions with the related parties have been disclosed in the financial statements as required by the applicable Indian accounting standards.
(xiv) The Company has not made any preferential allotment or private placement of shares 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 or persons connected with them as covered under Section 192 of the Act.
(xvi) According to information and explanation given to us, the Company is not required to be registered u/s 45-IA of Reserve Bank of India Act, 1934. Accordingly, provision of clause 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
Firm Reg. No. 006711N/N500028 Firm Reg. No. 004501C Firm Reg. No. 003510S
(Neena Goel) (Thalendra Sharma) (D. Manohar)
Partner Partner Partner
M. No. 057986 M. No. 079236 M. No.029644
For Kalani & Co. For P. A. & Associates For S. K. Kapoor & Co. For B M Chatrath & Co. LLP
Chartered Accountants Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 000722C Firm Reg. No. 313085E Firm Reg. No. 000745C Firm Reg. No. 301011E/E300025
(Vikas Gupta) (S. S. Poddar) (V. B. Singh) (P. R. Paul)
Partner Partner Partner Partner
M. No.077076 M. No.051113 M. No.073124 M. No.051675
Place: New Delhi
Date: 29 May 2017
Mar 31, 2016
We have audited the accompanying standalone financial statements of
NTPC Limited ("the Company"), which comprise the Balance Sheet as at
31st March 2016, 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 of 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.
Auditors'' 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 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 the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the 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 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
capital expenditure on assets not owned by the Company with
retrospective effect taking guidance available in AS 10 notified by MCA
on 30th March 2016 effective from the financial year 2016-17.
(b) Note No. 22 (a) & (b) regarding billing & recognition of sales on
provisional basis and measurement of GCV of coal on ''as received'' basis
after secondary crusher pending disposal of the matter by CERC/Hon''ble
Delhi High Court and related matters as mentioned in said note;
(c) Note No. 33 in respect of a Company''s ongoing project where the
order of NGT has been stayed by the Hon''ble Supreme Court of 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 ("the
Order") issued by the Government of India in terms of sub-section (11)
of Section 143 of the Act, and on the basis of such checks of the books
and records of the Company as we considered appropriate and according
to the information and explanations given to us, we give in the
Annexure 1 a statement on the matters specified in the paragraphs 3 and
4 of the said Order.
2. We are enclosing our report in terms of Section 143 (5) of the Act,
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, in the Annexure 2 on the directions 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 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) Being a Government Company, pursuant to the Notification No. GSR
463(E) dated 5th June 2015 issued by Ministry of Corporate Affairs,
Government of India, provisions of sub-section (2) of Section 164 of
the Companies Act, 2013, 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 3.
(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 33, 34 & 52
to the financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses on
long-term contracts including derivative contracts.
iii. There has been no delay in transferring the amounts, required to
be transferred, to the Investor Education and Protection Fund by the
Company in accordance with the relevant provisions of the Companies
Act, 1956 (1 of 1956) and Rules made there under.
ANNEXURE 1 TO THE AUDITORS'' REPORT
Referred to in our report of even date to the members of NTPC LIMITED
on the accounts for the year ended 31st March 2016
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) There is a regular programme of physical verification of all fixed
assets over a period of two years which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties are held in the
name of the Company except as follows:
Description of
Asset No. of Area in Gross
Block as Net Block
as on Remarks
(If Any)
cases acres on
31.03.2016 31.03.2016
Land The Company
- Freehold 2,016 10,735 2,210.91 2,210.91 is taking
- Leasehold 1,086 16,085 3,171.86 2,869.11 appropriate
steps for
completion of
Building &
Structures 2 - 50.43 17.27 legal
formalities
(ii) The inventory has been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such
physical verification.
(iii) The Company has not granted any loans, secured or unsecured to
any companies, firms, limited liability partnership or other parties
covered in register maintained under Section 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 covered under Section 185 and 186 of the Companies Act, 2013.
In respect of investment in the Subsidiary and Joint Venture Companies,
the Company has complied with the provisions of Section 185 and 186 of
the Companies Act, 2013.
(v) The Company has not accepted deposits from the public. As such, the
directives issued by the Reserve Bank of India, the provisions of
Sections 73 to 76 or any other relevant provisions of the Companies
Act, 2013 and the rules framed there under are not applicable to the
Company. The Company has obtained deposits from the dependants of
employees who die or suffer permanent total disability for which the
Company has applied to the Ministry of Corporate Affairs, Government of
India for continuation of the exemption earlier obtained in respect of
applicability of Section 58 A of the Companies Act, 1956, which is
still awaited (refer Note 10 e) of the Financial Statements). No order
has been passed with respect to Section 73 to 76, by the Company Law
Board or National Company 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 Company pursuant to the Rules made by the Central Government for
the maintenance of cost records under sub-section (1) of Section 148 of
the Companies Act, 2013 read with Companies (Cost Records & Audit)
Rules, 2014 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not,
however, made detailed examination of the records with a view to
determine whether they are accurate and complete.
(vii) (a) Undisputed statutory dues including provident fund, income
tax, sales-tax, wealth tax, service tax, custom duty, excise duty,
value added tax, cess and other statutory dues have generally been
regularly deposited with the appropriate authorities and there are no
undisputed dues outstanding as on 31st March 2016 for a period of more
than six months from the date they became payable. We have been
informed that employees'' state insurance is not applicable to the
Company.
(b) The disputed statutory dues aggregating to Rs. 891.02 crore that
have not been deposited 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 (Rs. in
crore)
1 Central Sales
Tax and Sales Tax/ VAT Additional
Commissioner of
Sales Tax 9.13
Sales Tax / VAT
Acts of
various states
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 / CESTAT & Appellate
Tribunal of CEST 9.63
Service Tax
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 us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(ix) The Company has not raised any money by way of initial public
offer or further public offer. According to the information and
explanations given to us, the money raised by the Company by way of
debt instruments and term loans have been applied for the purpose for
which they were obtained.
(x) According to the information and explanations given to us and as
represented by the Management and based on our examination of the books
and records of the Company and in accordance with generally accepted
auditing practices in India, no case of frauds by the Company or any
fraud on the company by its officers or employees has been noticed or
reported during the year.
(xi) As per notification no. GSR 463(E) dated 5th June 2015 issued by
the Ministry of Corporate Affairs, Government of India, Section 197 is
not applicable to the Government Companies. Accordingly, provisions of
clause 3 (xi) of the Order are not applicable to the Company.
(xii) The provisions of clause 3 (xii) of the Order, for Nidhi Company,
are not applicable to the Company.
(xiii) The Company has complied with the provisions of Section 177 and
188 of the Companies 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 financial statements as
required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private
placement of shares 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 or persons 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 required to be registered u/s 45-IA of Reserve Bank of India
Act, 1934. Accordingly, provision of clause 3(xvi) of the Order is not
applicable to the Company.
For T R Chadha & Co LLP For PSD & Associates
Chartered Accountants Chartered Accountants
FRN- 006711N/N500028 FRN - 004501C
[CA. Neena Goel] [CA. Thalendra Sharma]
Partner Partner
M. No. 057986 M. No. 079236
For Sagar & Associates
Chartered Accountants
FRN - 003510S
[CA. V. Vidyasagar Babu]
Partner
M. No.027357
For Kalani & Co. For P. A. & Associates
Chartered Accountants Chartered Accountants
FRN - 000722C FRN - 313085E
[CA. Vikas Gupta] [CA. P. S. Panda]
Partner Partner
M. No. 077076 M. No.051092
For S. K. Kapoor & Co. For B.M. Chatrath & Co.
Chartered Accountants Chartered Accountants
FRN - 000745C FRN - 301011E
[CA. V. B. Singh] [CA. P. R. Paul]
Partner Partner
M.No.073124 M. No. 051675
Place : New Delhi
Dated : 30th May 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
NTPC Limited ("the Company"), which comprise the Balance Sheet as at
31st March 2015, 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.
Auditors' 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 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, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the 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:
(a) In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
(b) In the case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
(c) In the case of Cash Flow Statement, of the 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. 22 (b) in respect of accounting of sales on provisional
basis;
(b) Note no. 34 in respect of a project where the matter is pending
before the Hon'ble Supreme Court of India. 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, 2015 ("the
Order") issued by the Government of India in terms of sub-section (11)
of section 143 of the Act, and on the basis of such checks of the books
and records of the Company as we considered appropriate and according
to the information and explanations given to us, we give in the
Annexure 1 a statement on the matters specified in the paragraphs 3 and
4 of the said Order.
2. We are enclosing our report in terms of Section 143 (5) of the Act,
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, in the Annexure 2 on the directions and
sub-directions issued by 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 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) On the basis of written representations received from the directors
as at 31st March 2015 and taken on record by the Board of Directors,
none of the directors is disqualified from being appointed as a
director in terms of Section 164(2) of the Act as on 31st March 2015.
(f) 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 34, 35 & 52
to the financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses on
long-term contracts including derivative contracts.
iii. There has been no delay in transferring the amount to Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made there
under by the Company.
ANNEXURE 1 TO THE AUDITORS' REPORT
Annexure referred to in our report of even date to the members of NTPC
LIMITED on the accounts for the year ended 31st March 2015
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) There is a regular programme of physical verification of all fixed
assets over a period of two years which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verification.
(ii) (a) The inventory has been physically verified by the management
at reasonable intervals.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification
(iii) The Company has not granted any loans, secured or unsecured to
any companies, firms or other parties covered in register maintained
under Section 189 of the Companies Act, 2013.
In view of the above, the clauses 3 (iii)(a) and 3 (iii)(b) of the
Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for
purchase of inventory & fixed assets and for sale of electricity, goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
systems.
(v) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India, the provisions of Sections 73 to 76 or any other
relevant provisions of the Companies Act, 2013 and the rules framed
thereunder with regard to the deposits accepted from the public except
deposits obtained by the Company from the dependants of employees who
die or suffer permanent total disability for which the Company has
applied Ministry of Corporate Affairs, Government of India for
continuation of the exemption earlier obtained in respect of
applicability of Section 58 A of the Companies Act, 1956, which is
still awaited (refer Note 10 d). No order has been passed with respect
to Section 73 to 76, by the Company Law Board or National Company 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 Company pursuant to the Rules made by the Central Government for
the maintenance of cost records under sub-section (1) of Section 148 of
the Companies Act, 2013 read with Companies (Cost Records & Audit)
Rules, 2014 and we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. We have not,
however, made detailed examination of the records with a view to
determine whether they are accurate and complete.
(vii) (a) Undisputed statutory dues including provident fund, income
tax, sales-tax, wealth tax, service tax, custom duty, excise duty,
value added tax, cess and other statutory dues have generally been
regularly deposited with the appropriate authorities and there are no
undisputed dues outstanding as on 31st March 2015 for a period of more
than six months from the date they became payable. We have been
informed that employees' state insurance is not applicable to the
Company.
(b) The disputed statutory dues aggregating toRs. 288.77 crore that
have not been deposited on account of matters pending before
appropriate authorities are detailed below:
Sl.
No Name of Statute Nature of dues Forum where the
dispute is
pending Rs.
crore
1 Central Sales Tax
and Sales Tax/VAT Sales Tax / VAT Additional
Commissioner of
Sales Taxes 6.69
Acts of various
states
Commissioner of
Sales Tax 14.12
High Court 231.40
Sales/Trade Tax
Tribunal 20.74
Joint
Commissioner
(Appeal) Trade tax 1.16
Appellate Tribunal 0.13
2. Central Excise
Act, 1944 Central Excise CESTAT & Appellate
Tribunal of CEST 2.49
Duty/Service tax
3. Income Tax Act, 1961 Income Tax Income Tax
Appellate Tribunal 11.61
Income Tax Officer 0.43
Total 288.77
(c) According to the information and explanations given to us, the
Company has transferred the amount required to be transferred to the
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and Rules made there
under.
(viii) The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(x) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
(xii) According to the information and explanations given to us and as
represented by the Management and based on our examination of the books
and records of the Company and in accordance with generally accepted
auditing practices in India, we have been informed that no case of
frauds has been committed on or by the Company during the year.
ANNEXURE 2 TO THE AUDITORS' REPORT
Annexure referred to in our report of even date to the members of NTPC
LIMITED on the accounts for the year ended 31st March 2015
Sl.
No. Directions /
Sub-Directions Action Taken Impact on
financial
statement
A. Directions
1 If the Company has been
selected for disinvestment,a The Company has
not been selected for Not
applicable
complete status report in
terms of valuation of Assets disinvestment during the
financial year 2014-15.
(including intangible assets
and land) and Liabilities
(including Committed and
General Reserves) may be
examined including the mode
and present stage of
disinvestment process.
2 Please report whether there
are any cases of waiver/ According to information
and explanations given Nil
write off of debts/loans/
interest etc., if yes, the to us, there are no
cases of waiver/write
off of
reasons therefor and the
amount involved. debts/loans/interest
etc.
3 Whether proper records are
maintained for Proper records are
maintained for
inventories Nil
inventories lying with
third parties & assets
received lying with third
parties and also for
assets received
as gift from Govt. or
other authorities?. as gift from Government
or other authorities.
4 A report on age-wise
analysis of pending legal/ The Company has 4,126
pending legal/arbitration Nil
arbitration cases including
the reasons of pendency cases. The age-wise
classification obtained
from
and existence/effectiveness
of a monitoring the management is as
under:
mechanism for expenditure
on all legal cases (foreign More than
3 years 2,803
and local) may be given. Two to three
years 561
One to two
years 378
Less than one
year 384
These cases are pending
for hearing /disposal
at the respective forums.
The Company has a system
for monitoring expenditure
on legal cases (foreign
and local) which in our
view is effective
B. Sub - Directions
1 Whether proper accounting
/ disclosure of the In accordance with the
principles approved Nil
disputed amount with Coal
India Limited (CIL) and its by the Board of
Directors of the
Company, the
Subsidiaries related to
quality of coal has been made dispute with Coal India
Limited (CIL) and its
in the books of Accounts of
NTPC Limited? Subsidiaries on account
of Gross Calorific
Value (GCV) has been
settled as detailed in
Note 32.
2 Whether NTPC has billed /
recovered the amount paid The Company has billed
the amount paid to CIL Nil
to CIL and its subsidiaries
on settlement of disputes and its subsidiaries on
settlement of disputes
relating to quality of coal
from the beneficiaries and relating to quality of
coal and the amount
billed
whether any beneficiary
disputed such a claim? have been realized or
in the process of
realization. None of the
beneficiaries have
disputed the amount
billed by the Company
on this account.
For O. P. Bagla & Co. For PSD & Associates For PKF Sridhar &
Santhanam LLP
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 000018N Firm Reg. No. 004501C Firm Reg. No. 003990S/
S200018
(Rakesh Kumar) (Prakash Sharma) (S. Narasimhan)
Partner Partner Partner
M No.087537 M No.072332 M No.206047
For V. Sankar Aiyar
& Co. For Ramesh C. Agrawal
& Co. For A.R. & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 109208W Firm Reg. No. 001770C Firm Reg. No. 002744C
(Ajay Gupta) (R.C. Agrawal) (Pawan K Goel)
Partner Partner Partner
M No. 090104 M No.070229 M.No.072209
Place : New Delhi
Dated : 29th May 2015
Mar 31, 2014
We have audited the accompanying financial statements of NTPC Limited
("the Company"), which comprise the Balance Sheet as at 31st March
2014, and the Statement of profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Managements responsibility for the financial statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash fl ows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956 ("the Act") read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
This responsibility includes the design, implementation and maintenance
of internal control 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.
Auditors responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 disclosures in the financial statements. The
procedures selected depend on the auditors 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 auditors consider internal control relevant to the
Companys preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances but not for the purpose of expressing an opinion on
the effectiveness of the entitys internal control. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is suffi cient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(b) In the case of the Statement of profit and Loss, of the profit
for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash fl ows for the
year ended on that date. Emphasis of Matter
Without qualifying our report, we draw attention to Note No. 32 to the
financial statement in respect of accounting of fuel on GCV based
pricing system. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order 2004,
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specifi ed in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
(c) The Balance Sheet, Statement of profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated 13th September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013
(e) Being a Government Company, pursuant to the Notifi cation No. GSR
829(E) dated 21st October 2003 issued by Government of India,
provisions of clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956, are not applicable to the Company.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in our report of even date to the members of NTPC
LIMITED on the accounts for the year ended 31st March 2014 (i) (a) The
Company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verifi ed by the management
during the year but there is a regular programme of verifi cation to
cover all assets over two years which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verifi cation.
(c) Substantial part of the fixed assets has not been disposed off
during the year.
(ii) (a) The inventory has been physically verifi ed by the management
at reasonable intervals.
(b) The procedures of physical verifi cation of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verifi cation.
(iii) (a) The Company has not granted any loans secured or unsecured to
any companies, fi rms or other parties covered in register maintained
under Section 301 of the Companies Act, 1956.
In view of the above, the clauses 4(iii)(b), 4(iii)(c) and 4(iii)(d) of
the Order are not applicable.
(e) The Company has not taken any loans, secured or unsecured from
companies, fi rms or other parties covered in register maintained under
Section 301 of the Companies Act, 1956.
In view of the above, the clauses 4(iii) (f) and 4(iii) (g) of the
Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for
purchase of inventory and fixed assets and for sale of electricity,
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control systems.
(v) (a) According to the information and explanations given to us,
during the year under audit there have been no contracts or
arrangements which need to be entered in the register maintained under
section 301 of the Companies Act, 1956.
In view of the above, the clause 4(v)(b) of the Order is not
applicable.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by
the Reserve Bank of India, the provisions of Sections 58A and 58AA or
any other relevant provisions of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public. No order has been passed with
respect to Section 58A and 58AA, by the Company Law Board or National
Company Law Tribunal or Reserve Bank of India or any Court or any other
tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of business.
(viii) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the Rules made by the Central Government for
the maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have
not, however, made detailed examination of the records with a view to
determine whether they are accurate and complete.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, income tax, sales-tax, wealth tax,
service tax, custom duty, excise duty, cess and other statutory dues
have generally been regularly deposited with the appropriate
authorities and there are no undisputed dues outstanding as on 31st
March 2014 for a period of more than six months from the date they
became payable.
(b) The disputed statutory dues aggregating to Rs. 175.27 crore that have
not been deposited on account of matters pending before appropriate
authorities are detailed below:
Sl.
No. Name of Statute Nature of dues Forum where
the dispute is
pending Rs. Crore
1. Central Sales
Tax and Sales
Tax/VAT Acts of Sales Tax/VAT Additional Commis
-sioner of
Sales Taxes 40.66
Various States
Commissioner of
Sales Tax 13.61
Dy. commissioner of
Sales/ Commercial Taxes 5.34
High Court 96.42
Sales Tax Tribunal 3.89
Joint Commissioner
(Appeal) Trade tax 1.11
2. Central Excise
Act, 1944 Central Excise
Duty/ CESTAT 2.12
Service tax
3. Income Tax
Act, 1961 Income Tax Commissioner of
Income Tax 0.03
Income Tax Appellate
Tribunal/CIT 11.66
Income Tax Officer 0.43
Total 175.27
(x) The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to fi
nancial institutions, banks or debenture holders.
(xii) According to the information and explanations given to us,
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Order
are not applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Order are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investments.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year.
(xix) According to the information and explanations given to us, the
Company has created security or charge in respect of the Bonds issued
by the Company during the year, except those disclosed in Note 5 of the
financial statements.
(xx) According to the information and explanations given to us, the
Company has disclosed the end use of money raised by public issue of
tax free bonds during the year in Note 5 d) of the financial
statements and the same has been verifi ed by us.
(xxi) According to the information and explanations given to us and as
represented by the Management and based on our examination of the books
and records of the company and in accordance with generally accepted
auditing practices in India, we have been informed that one case of
frauds involving an aggregate amount of Rs. 0.01 crore towards non
deposit of hospital receipts by an employee of the Company has been
committed on the Company during the year. The Company has taken
appropriate action against the employee and the matters are under
investigation.
For O. P. Bagla & Co. For K. K. Soni & Co. For PKF Sridhar
& Santhanam
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 000018N Firm Reg. No. 000947N Firm Reg. No. 003990S
(Rakesh Kumar) (S.S. Soni) (V. Kothandaraman)
Partner Partner Partner
M. No. 087537 M No.094227 M. No.025973
For V. Sankar
Aiyar & Co. For Ramesh C. Agrawal
& Co. For A. R. & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 109208W Firm Reg. No. 001770C Firm Reg. No. 002744C
(M. S. Balachandran) ( Manoj Agrawal) (Prabuddha Gupta)
Partner Partner Partner
M No. 024282 M. No.076918 M. No.400189
Place : New Delhi
Dated : 15th May 2014
Mar 31, 2013
We have audited the accompanying financial statements of NTPC Limited
("the Company"), which comprise the Balance Sheet as at 31st March
2013, and the Statement of Profit and Loss and Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Managements responsibility for the financial statements
Management is responsible for the preparation of these financial
statements that give a true and fair view ofthe financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of Section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fairview and are free from material misstatement,
whether due to fraud or error.
Auditors responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 disclosures in the financial statements. The procedures
selected depend on the auditors 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 auditors
consider internal control relevant to the Companys preparation and
fair presentation of the financial statements 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 management, as
well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and
fairview in conformitywith the accounting principles generally accepted
in India:
(a) In the case ofthe Balance Sheet, ofthe state of affairs ofthe
Companyas at31st March, 2013;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date,-and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
Without qualifying our report, we draw attention to Note No. 33 to the
financial statement in respect of accounting of fuel on GCV based
pricing system. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2003 as
amended bythe Companies (Auditors Report) (Amendment) Order 2004,
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of
ouraudit;
(b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub-section (3C) of Section 211 ofthe Companies Act, 1956;
(e) Being a Government Company, pursuant to the Notification No. GSR
829(E) dated 21st October 2003 issued by Government of India,
provisions of clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956, are not applicable to the Company.
ANNEXURE TO THE AUDITORS REPORT
Annexure referred to in our report of even date to the members of NTPC
LIMITED on the accounts for the year ended 31st March 2013.
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets
(b) All the assets have not been physically verified bythe management
during the year but there is a regular programme of verification to
cover all assets over two years which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verification.
(c) Substantial part of the fixed assets has not been disposed off
during the year.
(ii) (a) The inventory has been physically verified bythe management at
reasonable intervals.
(b) The procedures of physical verification of inventory followed bythe
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on physical verification.
(iii) (a) The Company has not granted any loans secured or unsecured to
any companies, firms or other parties covered in register maintained
under Section 301 of the Companies Act, 1956.
In view of the above, the clauses 4(iiiXb), 4(iiiXc) and 4(iiiXd) of
the Order are not applicable.
(e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in register maintained under
Section 301 of the Companies Act, 1956.
In view of the above, the clauses 4(iii) (f) and 4(iii) (g) of the
Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for
purchase of inventory and fixed assets and for sale of electricity,
goods and services. During the course of ouraudit, we have not observed
anycontinuing failure to correct major weaknesses in internal control
systems.
(v) (a) According to the information and explanations given to us,
during the year under audit there have been no contracts or
arrangements which need to be entered in the register maintained
undersection 301 ofthe CompaniesAct, 1956.
In view of the above, the clause 4(v)(b) of the Order is not
applicable.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India, the provisions of Sections 58A and 58AA or any
other relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. No order has been passed with respect to
Section 58A and 58AA, by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of business.
(viii) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the Rules made by the Central Government for
the maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have
not, however, made detailed examination of the records with a view to
determine whether they are accurate and complete.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, income tax, sales-tax, wealth tax,
service tax, custom duty, excise duty, cess and other statutory dues
have generally been regularly deposited with the appropriate
authorities and there are no undisputed dues outstanding ason31st March
2013 for a period of more than six months from the date they became
payable.
(b) The disputed statutory dues aggregating to Rs. 134.43 crore that
have not been deposited on account of matters pending before
appropriate authorities are detailed below:
SI.
No. Name of Statute Nature ofdues
1 Central Sales Tax and Sales Tax/VAT Acts of Sales Tax/VAT
Various States
2. Central ExciseAct, 1944 Central Excise Duty/
Service tax
3. Income Tax Act,1961 Income Tax
Name of Statute Forum where the dispute is pending Rs. Crore
Central Sales Tax and
Sales Tax/VAT Acts of
Various States Additional Commissioner of
Sales Taxes 21.06
Commissioner of Sales Tax 21.32
Dy. commissioner of Sales/
Commercial Taxes 0.20
High Court 80.50
Sales Tax Tribunal 3.88
Joint Commissioner (Appeal) Trade tax 1.13
Central Excise
Act 1944 CESTAT 1.89
Income Tax Act 1961 Commissioner of Income Tax 1.28
Income Tax Appellate Tribunal/CIT 0.08
Allahabad High Court 2.55
Asst. Commissioner 0.03
Income Tax Officer 0.51
Total 134.43
(x) The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks or debenture holders.
(xii) According to the information and explanations given to us,
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Order
are not applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Order are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) According tothe information and explanationsgiven to us, theterm
loans have been applied forthe purpose forwhich theywere obtained.
(xvii) According tothe information and explanations given to us and on
an overall examination ofthe balance sheet ofthe Company, we report
that no funds raised on short-term basis have been used for long-term
investments.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year.
(xix) According to the information and explanations given to us, the
Company has created security or charge in respect of the Bonds issued
by the Company during the year, except those disclosed in Note 5 of the
financial statements.
(xx) According to the information and explanations given to us, the
Company has not raised any money by public issue during the year.
(xxi) According to the information and explanations given to us and as
represented by the Management and based on our examination of the books
and records of the company and in accordance with generally accepted
auditing practices in India, we have been informed that 2 cases of
frauds involving an aggregate amount of Rs.0.01 crore towards
fraudulent claim/non deposit of rent by the Contractor have been
committed on the Company during the year. The Company has taken
appropriate action against the employee/contractor and the matters are
under investigation.
For O.P.Bagla & Co. For K.K.Soni & Co. For PKF Sridhar &
Santhanam
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg.No.000018N Firm Reg.No.000947N Firm Reg.No.003990S
(Rakesh Kumar) (S.S. Soni) (V.Kothandaraman)
Partner Partner Partner
M No.087537 M No.094227 M No.025973
For V.Sankar Aiyar
& Co. For Ramesh C. Agrawal
& Co. For A.R. & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg.No.109208W Firm Reg.No.001770C Firm Reg.No.002744C
(M. S. Balachandran) (Monika Agrawal) (Anil Gaur)
Partner Partner Partner
M No. 024282 M No. 093769 M No.017546
Place : New Delhi
Dated : 10th May 2013
Mar 31, 2012
1. We have audited the accompanying financial statements of NTPC
LIMITED (the Company) which comprises the Balance Sheet as at 31st
March 2012, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and the significant accounting
policies and other explanatory information. These financial statements
are the responsibility of the Companys management. Our responsibility
is to express an opinion on these financial statements based on our
audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the fi
nancial statements are free from material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by Companies (Auditors Report) (Amendment) Order 2004, issued
by the Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose in the annexure a statement on
the matters specifi ed in paragraphs 4 and 5 of the said Order.
4. Further to our comments in annexure referred to in para 3 above, we
report that:
a) We have 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, statement of profit and loss and cash fl ow
statement dealt with by this report are in agreement with the books of
account;
d) In our opinion, the balance sheet, statement of profit and loss and
cash fl ow statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956;
e) Being a Government Company, pursuant to the Notification no. GSR
829(E) dated 21.10.2003 issued by Government of India, provisions of
clause (g) of sub-section (1) of Section 274 of the Companies Act,
1956, are not applicable to the Company;
f) Without qualifying our report, we draw attention to note no. 22 a)
and 22 b) in respect of accounting of sales on provisional basis
pending determination of tariff by the Central Electricity Regulatory
Commission;
g) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read with the signifi
cant accounting policies and the explanatory notes thereon, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a. in the case of balance sheet, of the state of affairs of the
Company as at 31st March 2012,
b. in the case of statement of profit and loss, of the profit for
the year ended on that date, and
c. in the case of cash fl ow statement, of the cash fl ows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Statement referred to in paragraph (3) of our report of even date to
the members of NTPC LIMITED on the accounts for the year ended 31st
March 2012
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verifi ed by the management
during the year but there is a regular programme of verifi cation to
cover all assets over two years which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets.
No material discrepancies were noticed on such verifi cation.
(c) Substantial part of the fixed assets has not been disposed off
during the year.
(ii) (a) The inventory has been physically verifi ed by the management
at reasonable intervals.
(b) The procedures of physical verifi cation of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. No material
discrepancies were noticed on such verifi cation.
(iii) (a) The Company has not granted any loans secured or unsecured to
any companies, firms or other parties covered in register maintained
under Section 301 of the Companies Act, 1956.
In view of clause 4(iii)(a) above, the clauses 4(iii)(b), 4(iii)(c) and
4(iii)(d) of the Order are not applicable. (e) The Company has not
taken any loans, secured or unsecured from companies, firms or other
parties covered in register maintained under Section 301 of the
Companies Act, 1956. In view of 4(iii) (e) above, the clauses 4(iii)
(f) and 4(iii) (g) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for
purchase of inventory and fixed assets and for sale of electricity,
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weaknesses in internal
control systems.
(v) (a) According to the information and explanations given to us,
during the year under audit there have been no contracts or
arrangements which need to be entered in the register maintained under
section 301 of the Companies Act, 1956. In view of clause 4(v) (a)
above, the clause 4(v) (b) of the Order is not applicable.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India, the provisions of Sections 58A and 58AA or any
other relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. No order has been passed with respect to
Section 58A and 58AA, by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with its size and nature of business.
(viii) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the Rules made by the Central Government for
the maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have
not, however, made detailed examination of the records with a view to
determine whether they are accurate and complete.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, income tax, sales-tax, wealth tax,
service tax, custom duty, excise duty, cess and other statutory dues
have generally been regularly deposited with the appropriate
authorities and there are no undisputed dues outstanding as on 31st
March 2012 for a period of more than six months from the date they
became payable.
(b) The disputed statutory dues aggregating to Rs. 164.77 crore that have
not been deposited on account of matters pending before appropriate
authorities are detailed below:
Rs. crore
Sl.
No. Name of
Statute Nature of
dues Forum where the
dispute is pending Amount
1 Central Sales
Tax and Sales
Tax/ Sales Tax/VAT Additional Commiss
ioner of Sales Taxes 26.53
VAT Acts of
Various States
Commissioner of
Sales Tax 6.46
Dy. commissioner of
Sales/ Commercial Taxes 15.92
High Court 83.51
Sales Tax Tribunal 1.81
Joint Commissioner
(Appeal) Trade tax 2.05
2 Water (Preve
ntion &
Control Water/
Pollution
Cess Appellate Authority,
Pollution Control Board 0.41
of Pollution)
Cess Act,
1977
3. Central Excise
Act, 1944 Central Excise
Duty/Service
tax CESTAT 1.61
4. Income Tax
Act, 1961 Income Tax Income Tax Appellate
Tribunal/CIT 1.63
Allahabad High Court 24.11
Asst. Commissioner 0.73
Total 164.77
(x) The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to fi
nancial institutions, banks or debenture holders.
(xii) According to the information and explanations given to us,
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Order
are not applicable to the Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Order are not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
(xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investments.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year.
(xix) According to the information and explanations given to us, the
Company has created security or charge in respect of the Bonds issued
by the Company during the year.
(xx) According to the information and explanations given to us, the
Company has not raised any money by public issue during the year.
(xxi) According to the information and explanations given to us and as
represented by the Management and based on our examination of the books
and records of the company and in accordance with generally accepted
auditing practices in India, we have been informed that 3 cases of
frauds involving an aggregate amount of Rs. 1.08 crore towards
misappropriation of funds by the employees have been committed on the
company during the year. The Company has taken appropriate action
against these employees and the matters are under investigation.
For O. P. Bagla & Co. For K.K.Soni & Co. For PKF Sridhar & Santhanam
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 000018N Firm Reg. No. 000947N Firm Reg. No. 003990S
(Rakesh Kumar) (S.S. Soni) (S. Narasimhan)
Partner Partner Partner
M No .087537 M No.094227 M No.206047
For V. Sankar
Aiyar & Co. For Ramesh C.
Agrawal & Co. For A.R. & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
Firm Reg. No. 109208W Firm Reg. No. 001770C Firm Reg. No. 002744C
(R. Raghuraman) (R.C. Agrawal) (Prabuddha Gupta)
Partner Partner Partner
M No. 081350 M No.070229 M.No.400189
Place : New Delhi
Dated : 10th May 2012
Mar 31, 2010
1. We have audited the attached Balance Sheet of NTPC LIMITED as at
31st March 2010, the Profit and Loss Account and also the Cash Flow
Statement for the year ended on that date annexed thereto. These fi
nancial statements are the responsibility of the companys management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
2. We conducted our audit in accordance with Auditing Standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the fi
nancial statements are free from material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and signifi cant estimates
made by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Government of India in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose in the annexure a statement on
the matters specifi ed in paragraphs 4 and 5 of the said Order.
4. Further to our comments in annexure referred to in para 3 above, we
report that:
a) We have 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, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) Being a Government company, pursuant to the Notifi cation no. GSR
829(E) dated 21.10.2003 issued by Government of India, provisions of
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956, are not applicable to the company;
f) We draw attention to Schedule 26 - Notes on Accounts:
i) Note no. 2 (a) and (b) in respect of accounting of sales on
provisional basis pending determination of tariff by the Central
Electricity Regulatory Commission;
ii) Note no. 2 (e) in respect of accounting of sales of Rs.10,443
million in earlier years (reduced to Rs.10,256 million in the current
year) based on the order of the Appellate Tribunal for Electricity in
favour of the Company pending disposal of the appeal before the Honble
Supreme Court of India.
g) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read with the
Accounting Policies and Notes thereon in Schedule 26, give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
a. in the case of Balance Sheet, of the state of affairs of the
company as at 31st March 2010,
b. in the case of Profit and Loss Account, of the Profit for the
year ended on that date, and
c. in the case of Cash Flow Statement, of the cash fl ows for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT Statement referred to in paragraph (3)
of our report of even date to the members of NTPC LIMITED on the
accounts for the year ended 31st March 2010
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verifi ed by the management
during the year but there is a regular programme of verifi cation
which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verifi cation.
(c) Substantial part of the fixed assets has not been disposed off
during the year.
(ii) (a) The inventory has been physically verifi ed by the management
at reasonable intervals.
(b) The procedures of physical verifi cation of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on physical verifi cation of inventories,
wherever material, have been properly dealt with in the books of
account.
(iii) (a) The Company has not granted any loans secured or unsecured to
any Company, fi rm or other parties covered in register maintained
under section 301 of the Companies Act, 1956.
In view of clause (iii)(a) above, the clauses (iii)(b), (iii)(c) and
(iii)(d) are not applicable. (e) The Company has not taken any loans,
secured or unsecured from companies, fi rms or other parties covered in
register maintained under section 301 of the Companies Act, 1956.
In view of (iii) (e) above, the clauses (iii) (f) and (iii) (g) are not
applicable. (iv) In our opinion and according to the information and
explanations given to us, there is adequate internal control system
commensurate with the size of the Company and the nature of its
business for purchase of inventory and fixed assets and for sale of
electricity, goods and services. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
internal control systems. (v) (a) According to the information and
explanations given to us, during the year under audit there have been
no contracts or arrangements which need to be entered in the register
maintained under section 301 of the Companies Act, 1956. In view of
clause (v) (a) above, the clause (v) (b) is not applicable. (vi) In
our opinion and according to the information and explanations given to
us, the Company has complied with the directives issued by the Reserve
Bank of India, the provisions of Sections 58A and 58AA or any other
relevant provisions of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposits
accepted from the public. No order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other tribunal. (vii) In our opinion, the Company has an
internal audit system commensurate with its size and nature of
business.
(viii) We have broadly reviewed the accounts and records maintained by
the Company pursuant to the Rules made by the Central Government for
the maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956 and we are of the opinion that prima facie the
prescribed accounts and records have been made and maintained. We have
not, however, made detailed examination of the records with a view to
determine whether they are accurate and complete.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, income tax, sales-tax, wealth tax,
service tax, custom duty, excise duty, cess and other statutory dues
have generally been regularly deposited with the appropriate
authorities within a period of six months from the date they became
payable which has since been deposited with the appropriate
authorities. (b) The disputed statutory dues aggregating to Rs.1,732
million that have not been deposited on account of matters pending
before appropriate authorities are detailed below:
Sl.
No. Name of Statute Nature of dues Forum where the
dispute is
pending Rs./million
1 Central Sales Tax
and Sales Tax/VAT Sales Tax/VAT
Additional
Commissioner of
Sales Taxes 171
Acts of Various States
Commissioner of Sales Tax 65
Dy. commissioner
of Sales/ Commercial Taxes 118
High Court 721
Sales Tax Tribunal 129
Joint Commissioner
(Appeal) Trade tax 30
2 Water (Prevention
& Control of Water/Pollution
Cess Appellate Authority,
Pollution Control Board 13
Pollution) Cess
Act, 1977
3. Indian Stamp
Act, 1899 Land Tax Appellate Authority -
Board of Revenue 14
4. Central Excise
Act, 1944 Central Excise
Duty CESTAT 3
5. Income Tax Act,
1961 Income Tax Income Tax Appellate
Tribunal/CIT 103
Allahabad High Court 142
Asst. Commissioner 116
6. Bihar Electricity
Duty Act, 1948 Electricity
Duty Patna, High Court 107
Total 1,732
(x) The Company has no accumulated losses and has not incurred cash
losses during the financial year covered by our audit and the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to fi
nancial institutions, banks or debenture holders.
(xii) According to the information and explanations given to us,
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi/mutual benefi t
fund/society. Therefore, the provisions of clause 4(xiii) of the
Companies (Auditors Report) Order, 2003 are not applicable to the
Company.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. Accordingly, the provisions of clause
4(xiv) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
(xv) The Company has not given any guarantees for loans taken by others
from banks or financial institutions.
(xvi) According to the information and explanations given to us, the
term loans have been applied for the purpose for which they were
obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of shares during the year.
(xix) According to the information and explanations given to us, the
Company has created security or charge in respect of the Bonds issued
by the Company during the year except in respect of certain bonds
raised in March 2010 for which security creation is in process.
(xx) According to the information and explanations given to us, the
Company has not raised any money by public issue during the year.
(xxi) According to the information and explanations given to us, two
cases of fraud involving an aggregate amount of Rs.1 million towards
missing goods and one case of suspected fraud amounting Rs.5 million
have been committed on the Company during the year, which are under
investigation. Further, by the Company, no frauds have been reported.
For Dass Gupta
& Associates For S. K. Mittal & Co. For Varma and Varma
Chartered
Accountants Chartered Accountants Chartered Accountants
Firm Reg.
No.000112N Firm Reg. No.001135N Firm Reg. No.004532S
[ Naresh Kumar ] [ Krishan Sarup ] [ Cherian K. Baby]
Partner Partner Partner
M. No. 82069 M. No. 010633 M. No. 16043
For Parakh & Co. For B.C. Jain & Co. For S. K. Mehta & Co.
Chartered
Accountants Chartered Accountants Chartered Accountants
Firm Reg.
No.01475C Firm Reg. No.001099C Firm Reg. No.000478N
[V. D. Mantri ] [ Ranjeet Singh ] [ Rohit Mehta ]
Partner Partner Partner
M. No. 74678 M. No. 73488 M. No.91382
Place: New Delhi
Date: 17th May 2010
Mar 31, 2000
We have audited the attached Balance Sheet of NATIONAL THERMAL POWER
CORPORATION LIMITED as at 31st March 2000 and the Profit and Loss
Account of the Company for the year ended on that date, annexed hereto.
We report as follows:
1. As the Company is governed by the Electricity (Supply) Act, 1948,
the provisions of the said Act read with the rules thereunder have
prevailed wherever the same have been inconsistent with the provisions
of the Companies Act, 1956.
2. As required by the Manufacturing and Other Companies (Auditors
Report) Order, 1988 issued by the Company Law Board in terms of Section
227 (4A) of the Companies Act, 1956, and on the basis of such checks as
we considered appropriate, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order.
3. Further to our comments in the Annexure referred to in paragraph 2
above, we report that:
3.1 Balances shown under advances, debtors, creditors and
material-in-transit/under inspection/lying with contractors/fabricators
and material issued on loan are pending due to
confirmation/reconciliation and consequential adjustments, if any
(Refer Note No. 3(a) - Schedule 18).
3.2 No provision has been made for sales tax on works contracts and on
materials issued to contractors on account of appeals pending with
various authorities (Refer note 4 of Schedule 18).
3.3 The net profit for the year is lower by Rs. 37803.98 lakh due to
provision for tariff adjustment as stated in Note no. 6 (a) of Schedule
18.
4. We further report that for the items mentioned at paragraph 3.1 &
3.2 above the impact could not be determined and for the item at
paragraph 3.3 above as the Company has made the provision for tariff
adjustment amounting to Rs. 37803.98 lakh, the profit for the year and
reserves & surplus as at the year end reported at Rs. 363087.54 lakh
and Rs. 1509785.30 lakh respectively would have been higher by the said
amount to Rs. 400891.52 lakh and Rs. 1547589.28 lakh respectively
5. Attention is invited to Note no. 13 in Schedule 18, regarding
changes in certain accounting policies resulting in further lowering of
profit for the year by Rs. 24766.16 lakh.
6. Further to above:
a) we have 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 appears from our examination of
those books;
c) the Balance sheet and the Profit and Loss Account dealt with by this
report are in agreement with the books of account;
d) in our opinion, the Profit and Loss Account and the Balance Sheet
comply with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956.
Subject to our observations referred above and their consequential
effect on accounts, in our opinion, and according to the best of our
information and according to the explanations given to us, the said
accounts read with Accounting Policies and notes thereon in Schedule
18, in so far as these are not inconsistent with Electricity (Supply)
Act, 1948, give the information required by the Companies Act, 1956 in
the manner so required to give a true and fair view:
a) in the case of Balance sheet, of the state of affairs of the Company
as at 31st March 2000
and
b) in the case of Profit and Loss Account, of the profit for the year
ended on that date.
1. The Company has generally maintained proper records showing full
particulars including quantitative details and situation/location of
fixed assets except in some cases where the records are in the process
of reconciliation. The management has generally carried out physical
verification of a portion of the fixed assets in accordance with their
phased programme of physical verification, which is considered
reasonable having regard to the size of the Company and nature of its
business and no material discrepancies were noticed to the extent
verification was made during the year.
2. None of the fixed assets has been revalued during the year.
3. Physical verification of inventories has been conducted by the,
management at reasonable intervals.
4. According to the information and explanations given to us, in our
opinion, the procedures of physical verification of inventories
followed by the management are reasonable and generally adequate in
relation to (he size of the Company and the nature of its business,
except that the extent of its coverage needs to be increased in some of
the units.
5. The discrepancies noticed on physical verification of inventories,
wherever material, have been properly dealt with in the books of
account, except in a few cases, where reconciliation of book balances
with physical inventory is in progress. The stores lying with
contractors are subject to reconcih^on/confirrnation.
6. hi our opinion, the valuation of inventories and construction
stores is fair and proper in accordance with the normally accepted
accounting principles and is on the same basis as in the preceding
year.
7. As informed to us, the Company has not taken loans from companies,
firms or other parties, listed in register maintained under Section 301
of the Companies Act, 1956 and companies under the same management as
defined under sub - section (IB) of Section 370 of the Companies Act,
1956.
8. As informed to us, the Company has not granted any loans, secured
or unsecured to companies, firm or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956 and companies
under the same management as defined under sub - section (IB) of
Section 370 of the Companies Act, 1956.
9. Loans and Advances in the nature of loans have been given to staff,
Employees Consumers Cooperative Stores and other parties. Repayment of
the principal amount and payment of interest wherever applicable have
generally been received.
10. In our opinion and according to the information and explanations
given to us and having regard to the explanations that some of the
items purchased are of proprietary nature for which suitable
alternative sources do not exist for obtaining comparable quotations,
there are adequate internal control procedures commensurate with the
size of the Company and the nature of its business with regard to
purchase of stores, plant and machinery, equipment and other assets and
sale of energy.
11. The purchases of goods and materials and sale of services made in
pursuance of contracts or arrangements with parries listed in the
register maintained under Section 301 of the Companies Act, 1956, and
aggregating during the year to Rs.50,000/- or more in respect of each
party have been made at prices which are reasonable having regard to
the prevailing market prices for such goods, materials or services.
12. According to the information and explanations given to us, the
Company has a system of determining unserviceable and damaged stores
and the same are written off and accounted for in the books as and when
any stores and spares are found damaged and/or unserviceable.
13. The Company has accepted deposits from public and the provisions
of Section 58A of the Companies Act, 1956 and the rules made thereunder
have been complied with.
14. In our opinion, reasonable records have been maintained by the
Company for sale and disposal of scrap. The Company has no by-product.
15. The Company has an Internal Audit System, which in our opinion is
commensurate with the size of die Company and nature of its business.
However, the compliance and implementation mechanism of which needs to
be strengthened.
16. Maintenance of cost records has not been prescribed by the Central
Government under Section 209(l)(d) of the Companies Act, 1956.
17. The Company has been regular in depositing Provident Fund dues
with appropriate authorities. The provisions of the Employees State
Insurance Act, 1948 are not applicable to the Company.
18. According to die information and explanations given to us, there
were no undisputed amounts payable in respect of Income tax, Wealth
tax, Sales tax, Custom duty and Excise duty outstanding as at the last
day of the financial year for a period, of more than six months from
the date they become payable.
19. According to the information and explanations given to us, no
personal expenses have been charged to revenue account, other than
those payable under contractual obligations or in accordance with
generally accepted business practice.
20. The Company is not a sick industrial company within the meaning of
clause (o) of sub - section (1) of Section 3 of Sick Industrial
Companies ( Special Provisions) Act, 1985.
21. In regard to the Companys activities relating to consultancy,
project management and supervision, we report that:
a) the Company has a reasonable system of allocation of man hours
consumed on the respective activities;
b) the Company has a reasonable system of authorisation at proper level
and adequate system of internal control on allocation of man hours
commensurate with the size of the Company and the nature of its
business; and
c) there were no consumption of stores and materials in relation to
such activities.
For K.K. Soni & Co. For S.K. Mittal & Co.
For Lakshminiwas & Jain For Vandhaman & Co.
Chartered Accountants Chartered Accountants
(Laxminivas Sharma) Abha Jain
For B.C.Jain & Co. For Kishore & Kishore
Place : New Delhi
Dated : 28th July, 2000