NTPC LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To
The Members of
NTPC LIMITED
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
Company`s management. Our responsibility is to express an opinion on these
financial statements based on our audit.
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 financial 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
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in annexure referred to in para 3 above, 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 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 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 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 Commission;
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 significant
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 flow statement, of the cash flows for the year ended
on that date.
For O. P. Bagla & Co. For K.K.Soni & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. 000018N Firm Reg. No. 000947N
(Rakesh Kumar) (S.S. Soni)
Partner Partner
M No.087537 M No.094227
For V. Sankar Aiyar & Co. For Ramesh C. Agrawal & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. 109208W Firm Reg. No. 001770C
(R. Raghuraman) (R.C. Agrawal)
Partner Partner
M No. 081350 M No.070229
For PKF Sridhar & Santhanam
Chartered Accountants
Firm Reg. No. 003990S
(S. Narasimhan)
Partner
M No.206047
For A.R. & Co.
Chartered Accountants
Firm Reg. No. 002744C
(Prabuddha Gupta)
Partner
M.No.400189
Place : New Delhi
Dated : 10th May 2012
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 March 2012
(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 by the 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 by the management at
reasonable intervals.
(b) The procedures of physical verification 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 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 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 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 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 became payable.
(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:
Rs. crore
Name of Statute & Forum where the dispute is pending Amount
Nature of dues
1. Central Sales Tax &
Sales Tax/VAT Acts of
Various States
Sales Tax/VAT Additional Commissioner of Sales Taxes 26.53
Commissioner of Sales Tax 6.46
Dy. commissioner of Sales/
Commercial Taxes 15.92
High Court 83.51
Sales Tax Tribunal 1.81
Joint Commissioner (Appeal) Trade tax 2.05
2. Water (Prevention &
Control of Pollution)
Cess Act, 1977
Water/Pollution Cess Appellate Authority, Pollution
Control Board 0.41
3. Central Excise
Act, 1944
Central Excise Duty/
Service tax CESTAT 1.61
4. Income Tax
Act, 1961:
Income Tax Income Tax Appellate Tribunal/CIT 1.63
Allahabad High Court 24.11
Asst. Commissioner 0.73
Total 164.77
(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 to the information and explanations given to us, the term
loans have been applied for the purpose for which they were obtained.
(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 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.
(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.
Chartered Accountants Chartered Accountants
Firm Reg. No. 000018N Firm Reg. No. 000947N
(Rakesh Kumar) (S.S. Soni)
Partner Partner
M No.087537 M No.094227
For V. Sankar Aiyar & Co. For Ramesh C. Agrawal & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. 109208W Firm Reg. No. 001770C
(R. Raghuraman) (R.C. Agrawal)
Partner Partner
M No. 081350 M No.070229
For PKF Sridhar & Santhanam
Chartered Accountants
Firm Reg. No. 003990S
(S. Narasimhan)
Partner
M No.206047
For A.R. & Co.
Chartered Accountants
Firm Reg. No. 002744C
(Prabuddha Gupta)
Partner
M.No.400189
Place : New Delhi
Dated : 10th May 2012 |