NTPC Limited ("the Company"), which comprise the Balance Sheet as at
31st March 2016, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''''s responsibility for the standalone financial statements
The Company''''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, 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 standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 the disclosures in the financial statements. The
procedures selected depend on the auditor''''s 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 auditor considers internal financial control relevant
to the Company''''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at 31st March, 2016 and its profits and its cash flows for the year
ended on that date.
Emphasis of Matter
We draw attention to the following matters in the Notes to the
(a) Note No. 12 (i) & 35 (a) in respect of change in accounting of
capital expenditure on assets not owned by the Company with
retrospective effect taking guidance available in AS 10 notified by MCA
on 30th March 2016 effective from the financial year 2016-17.
(b) Note No. 22 (a) & (b) regarding billing & recognition of sales on
provisional basis and measurement of GCV of coal on ''''as received'''' basis
after secondary crusher pending disposal of the matter by CERC/Hon''''ble
Delhi High Court and related matters as mentioned in said note;
(c) Note No. 33 in respect of a Company''''s ongoing project where the
order of NGT has been stayed by the Hon''''ble Supreme Court of India and
the matter is sub-judice.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''''s Report) Order, 2016 ("the
Order") issued by the Government of India in terms of sub-section (11)
of Section 143 of the Act, and on the basis of such checks of the books
and records of the Company as we considered appropriate and according
to the information and explanations given to us, we give in the
Annexure 1 a statement on the matters specified in the paragraphs 3 and
4 of the said Order.
2. We are enclosing our report in terms of Section 143 (5) of the Act,
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, in the Annexure 2 on the directions and
sub-directions issued by The Comptroller and Auditor General of India.
3. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(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
(c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) Being a Government Company, pursuant to the Notification No. GSR
463(E) dated 5th June 2015 issued by Ministry of Corporate Affairs,
Government of India, provisions of sub-section (2) of Section 164 of
the Companies Act, 2013, are not applicable to the Company.
(f) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating effectiveness
of such controls, refer to our separate report in Annexure 3.
(g) With respect to the other matters to be included in the Auditor''''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements. Refer Note 33, 34 & 52
to the financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses on
long-term contracts including derivative contracts.
iii. There has been no delay in transferring the amounts, required to
be transferred, to the Investor Education and Protection Fund by the
Company in accordance with the relevant provisions of the Companies
Act, 1956 (1 of 1956) and Rules made there under.
ANNEXURE 1 TO THE AUDITORS'''' REPORT
Referred to in our report of even date to the members of NTPC LIMITED
on the accounts for the year ended 31st March 2016
(i) (a) The Company has generally maintained proper records showing
full particulars including quantitative details and situation of fixed
(b) There is a regular programme of physical verification of all fixed
assets over a period of 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) The title deeds of all the immovable properties are held in the
name of the Company except as follows:
Asset No. of Area in Gross
Block as Net Block
as on Remarks
cases acres on
Land The Company
- Freehold 2,016 10,735 2,210.91 2,210.91 is taking
- Leasehold 1,086 16,085 3,171.86 2,869.11 appropriate
Structures 2 - 50.43 17.27 legal
(ii) The inventory has been physically verified by the management at
reasonable intervals. No material discrepancies were noticed on such
(iii) The Company has not granted any loans, secured or unsecured to
any companies, firms, limited liability partnership or other parties
covered in register maintained under Section 189 of the Companies Act,
2013. In view of the above, the clauses 3 (iii)(a), 3 (iii)(b) and 3
(iii)(c) of the Order are not applicable.
(iv) The Company has not granted any loans or given any guarantee and
security covered under Section 185 and 186 of the Companies Act, 2013.
In respect of investment in the Subsidiary and Joint Venture Companies,
the Company has complied with the provisions of Section 185 and 186 of
the Companies Act, 2013.
(v) The Company has not accepted deposits from the public. As such, the
directives issued by the Reserve Bank of India, the provisions of
Sections 73 to 76 or any other relevant provisions of the Companies
Act, 2013 and the rules framed there under are not applicable to the
Company. The Company has obtained deposits from the dependants of
employees who die or suffer permanent total disability for which the
Company has applied to the Ministry of Corporate Affairs, Government of
India for continuation of the exemption earlier obtained in respect of
applicability of Section 58 A of the Companies Act, 1956, which is
still awaited (refer Note 10 e) of the Financial Statements). No order
has been passed with respect to Section 73 to 76, by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal.
(vi) 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 sub-section (1) of Section 148 of
the Companies Act, 2013 read with Companies (Cost Records & Audit)
Rules, 2014 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.
(vii) (a) Undisputed statutory dues including provident fund, income
tax, sales-tax, wealth tax, service tax, custom duty, excise duty,
value added tax, 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 2016 for a period of more
than six months from the date they became payable. We have been
informed that employees'''' state insurance is not applicable to the
(b) The disputed statutory dues aggregating to Rs. 891.02 crore that
have not been deposited on account of matters pending before
appropriate authorities are detailed below:
Sl. Name of Statute Nature of dues Forum where the
dispute is pending Amount
No (Rs. in
1 Central Sales
Tax and Sales Tax/ VAT Additional
Sales Tax 9.13
Sales Tax / VAT
Sales Tax 41.39
of Sales Tax 0.02
High Court* 823.34
Appellate Tribunal 4.24
2. Central Excise
Act, 1944 Central Excise
Duty / CESTAT & Appellate
Tribunal of CEST 9.63
3. Income Tax Act,
1961 Income Tax Income Tax
Appellate Tribunal 0.04
of Income Tax 0.18
* Includes Rs. 538.71 crore towards the demand for electricity duty
raised by Dy. Commissioner, Commercial Tax which has been stayed by the
Hon''''ble High Court.
(viii) 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.
(ix) The Company has not raised any money by way of initial public
offer or further public offer. According to the information and
explanations given to us, the money raised by the Company by way of
debt instruments and term loans have been applied for the purpose for
which they were obtained.
(x) 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, no case of frauds by the Company or any
fraud on the company by its officers or employees has been noticed or
reported during the year.
(xi) As per notification no. GSR 463(E) dated 5th June 2015 issued by
the Ministry of Corporate Affairs, Government of India, Section 197 is
not applicable to the Government Companies. Accordingly, provisions of
clause 3 (xi) of the Order are not applicable to the Company.
(xii) The provisions of clause 3 (xii) of the Order, for Nidhi Company,
are not applicable to the Company.
(xiii) The Company has complied with the provisions of Section 177 and
188 of the Companies Act, 2013 w.r.t. transactions with the related
parties, wherever applicable. Details of the transactions with the
related parties have been disclosed in the financial statements as
required by the applicable accounting standards.
(xiv) The Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during
the year under review. Accordingly, provisions of clause 3 (xiv) of the
Order are not applicable to the Company.
(xv) The Company has not entered into any non-cash transactions with
the directors or persons connected with them as covered under Section
192 of the Companies Act, 2013.
(xvi) According to information and explanation given to us, the Company
is not required to be registered u/s 45-IA of Reserve Bank of India
Act, 1934. Accordingly, provision of clause 3(xvi) of the Order is not
applicable to the Company.
For T R Chadha & Co LLP For PSD & Associates
Chartered Accountants Chartered Accountants
FRN- 006711N/N500028 FRN - 004501C
[CA. Neena Goel] [CA. Thalendra Sharma]
M. No. 057986 M. No. 079236
For Sagar & Associates
FRN - 003510S
[CA. V. Vidyasagar Babu]
For Kalani & Co. For P. A. & Associates
Chartered Accountants Chartered Accountants
FRN - 000722C FRN - 313085E
[CA. Vikas Gupta] [CA. P. S. Panda]
M. No. 077076 M. No.051092
For S. K. Kapoor & Co. For B.M. Chatrath & Co.
Chartered Accountants Chartered Accountants
FRN - 000745C FRN - 301011E
[CA. V. B. Singh] [CA. P. R. Paul]
M.No.073124 M. No. 051675
Place : New Delhi
Dated : 30th May 2016