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
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
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
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
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
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
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
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
(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
(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
(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:
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
Sales Tax 6.46
Dy. commissioner of
Sales/ Commercial Taxes 15.92
High Court 83.51
Sales Tax Tribunal 1.81
(Appeal) Trade tax 2.05
2 Water (Preve
Cess Appellate Authority,
Pollution Control Board 0.41
3. Central Excise
Act, 1944 Central Excise
tax CESTAT 1.61
4. Income Tax
Act, 1961 Income Tax Income Tax Appellate
Allahabad High Court 24.11
Asst. Commissioner 0.73
(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
(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
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
(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