SENSEX NIFTY
NTPC | Auditor's Report > Power - Generation & Distribution > Auditor's Report from NTPC - BSE: 532555, NSE: NTPC
YOU ARE HERE > MONEYCONTROL > MARKETS > POWER - GENERATION & DISTRIBUTION > AUDITORS REPORT - NTPC

NTPC

BSE: 532555|NSE: NTPC|ISIN: INE733E01010|SECTOR: Power - Generation & Distribution
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Dec 05, 16:00
162.15
1 (0.62%)
VOLUME 691,382
LIVE
NSE
Dec 05, 15:57
162.45
0.8 (0.49%)
VOLUME 2,851,876
« Mar 15
Auditor's Report (NTPC) Year End : Mar '16
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
Source : Dion Global Solutions Limited
Quick Links for ntpc
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.