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.
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.
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
(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
(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 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
(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
(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
(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
(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
(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:
No. Name of Statute Nature ofdues
1 Central Sales Tax and Sales Tax/VAT Acts of Sales Tax/VAT
2. Central ExciseAct, 1944 Central Excise Duty/
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
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
(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
(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 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
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) (Monika Agrawal) (Anil Gaur)
Partner Partner Partner
M No. 024282 M No. 093769 M No.017546
Place : New Delhi
Dated : 10th May 2013