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.
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
We believe that the audit evidence we have obtained is suffi cient and
appropriate to provide a basis for our audit 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
(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
(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
(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
(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
(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
(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
(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
(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:
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
Sales Taxes 40.66
Sales Tax 13.61
Dy. commissioner of
Sales/ Commercial Taxes 5.34
High Court 96.42
Sales Tax Tribunal 3.89
(Appeal) Trade tax 1.11
2. Central Excise
Act, 1944 Central Excise
Duty/ CESTAT 2.12
3. Income Tax
Act, 1961 Income Tax Commissioner of
Income Tax 0.03
Income Tax Appellate
Income Tax Officer 0.43
(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 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, except those disclosed in Note 5 of the
(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
For O. P. Bagla & Co. For K. K. Soni & Co. For PKF Sridhar
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