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« Mar 12
Auditor's Report (NTPC) Year End : Mar '13
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.
 
 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. 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.
 
 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
 in India:
 
 (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
 ouraudit;
 
 (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 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
 assets
 
 (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
 reasonable intervals.
 
 (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
 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
 undersection 301 ofthe CompaniesAct, 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 ason31st March
 2013 for a period of more than six months from the date they became
 payable.
 
 (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:
 
 SI.
 No.  Name of Statute                               Nature ofdues
 
 1    Central Sales Tax and Sales Tax/VAT Acts of   Sales Tax/VAT
      Various States
 
 2.   Central ExciseAct, 1944                       Central Excise Duty/
                                                    Service tax
 
 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
 
 Central Excise
 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
 
 Total                                                         134.43
 
 (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
 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
 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 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
 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)   (Monika Agrawal)         (Anil Gaur)
 
 Partner                 Partner                  Partner
 
 M No. 024282            M No. 093769             M No.017546
 
 Place : New Delhi
 
 Dated : 10th May 2013
Source : Dion Global Solutions Limited
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