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« Mar 13
Auditor's Report (NTPC) Year End : Mar '14
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
Source : Dion Global Solutions Limited
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