TO THE MEMBERS OF
THE TATA POWER COMPANY LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of THE TATA POWER
COMPANY LIMITED ("the Company"), which comprise the Balance Sheet as at 31st
March, 2015, 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
Managements Responsibility for the Standalone Financial Statements
The Companys 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 the assets of the Company
and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgements 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 thereunder.
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
auditors judgement, 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
Companys preparation of the financial statements that give a true and fair view in
order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on whether the Company has in place an adequate
internal financial control system over financial reporting and the operating effectiveness
of such controls. An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made by the
Companys Directors, as well as evaluating the overall presentation of the financial
We believe that the audit evidence we have obtained is suficient and appropriate to
provide a basis for our audit opinion on the standalone financial statements.
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, 2015, and its profit and its cash flows for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the standalone financial
(a) Note 32(d) and (e) to the standalone financial statements which describes
uncertainties relating to the outcome of the Appeal filed before the Honble Supreme
Court. Pending outcome of the Appeal filed before the Honble Supreme Court, no
adjustment has been made by the Company in respect of the standby charges estimated at Rs.
519 crores accounted for as revenue in earlier periods and its consequential effects (Note
32 (d) and (e)) for the period upto 31st March, 2015. The impact of the same on the
results for the year ended 31st March, 2015 cannot presently be determined pending the
ultimate outcome of the matter. Since the Company is of the view, supported by legal
opinion, that the Tribunals Order can be successfully challenged, no
provision/adjustment has been considered necessary by the Management.
(b) Note 29(a) to the standalone financial statements which describes the key source of
estimation uncertainties as at 31st March, 2015 relating to the Companys assessment
of the recoverability of the carrying amount of assets of Coastal Gujarat Power Limited
(CGPL), a wholly owned subsidiary that could result in material adjustment to the carrying
amount of the long-term investment of Rs. 5,980.57 crores in, and loans aggregating Rs.
3,034.56 crores to the said subsidiary. For the reasons explained in the said Note, no
provision for diminution other than temporary in value of investment and provision for
loans is considered necessary.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2015 ("the
Order") issued by the Central Government in terms of Section 143(11) of the Act, we
give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the
2. 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 those books.
(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) The matters described in the Emphasis of Matters paragraph above, in our opinion,
may have an adverse effect on the functioning of the Company.
(f) On the basis of the written representations received from the directors as on 31st
March, 2015 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2015 from being appointed as a director in terms of Section
164 (2) of the Act.
(g) With respect to the other matters to be included in the Auditors 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 standalone financial statements - Refer Note 32 to the standalone financial
statements. ii. The Company has made provision, as required under the applicable law or
accounting standards, for material foreseeable losses, if any, on long-term contracts
including derivative contracts. iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education and Protection Fund by the
Company-also refer Note 12 to the standalone financial statements.
For DELOITTE HASKINS & SELLS LLP Chartered Accountants
(Firms Registration No. 117366W /W-100018)
R. A. BANGA Partner
Membership Number: 037915
MUMBAI, 19th May, 2015
ANNEXURE TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under Report on Other Legal and Regulatory
Requirements section of our report of even date)
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets. (b) The Company has a program of
verification of fixed assets to cover all the items in a phased manner over a period of
three years which, in our opinion, is reasonable having regard to the size of the Company
and the nature of its assets. Pursuant to the program, certain fixed assets were
physically verified by the Management during the year. According to the information and
explanation given to us, no material discrepancies were noticed on such verification.
(ii) In respect of its inventories:
(a) As explained to us, the inventories were physically verified during the year by the
management at reasonable intervals. In our opinion the frequency of verification is
(b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of inventories followed by the Management were
reasonable and adequate in relation to the size of the Company and the nature of its
business. (c) In our opinion and according to the information and explanations given to
us, the Company has maintained proper records of its inventories and no material
discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has
granted loans, secured or unsecured, to companies, firms or other parties covered in the
Register maintained under Section 189 of the Companies Act, 2013. In respect of such
loans: (a) The receipts of principal amounts and interest have been regular/as per
(b) There is no overdue amount in excess of Rs. 1 lakh remaining outstanding as at the
(iv) In our opinion and according to the information and explanations given to us,
having regard to the explanations that some of the items purchased are of special nature
and suitable alternative sources are not readily available for obtaining comparable
quotations, there is an adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchases of inventory and fixed
assets and the sale of goods and services. During the course of our audit, we have not
observed any major weakness in such internal control system.
(v) According to the information and explanations given to us, the Company has not
accepted any deposit during the year. In respect of unclaimed deposits, the Company has
complied with the provisions of Sections 73 to 76 or any other relevant provisions of the
Companies Act. Accordingly to the information and explanations given to us, no Order has
been passed by the Company Law Board or the National Company Law Tribunal or the Reserve
Bank of India or any Court or any other Tribunal.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant to
the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed by the Central
Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the
opinion that, prima facie, the prescribed cost records have been made and maintained. We
have, however, not made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
(vii) According to information and explanations given to us, in respect of statutory
(a) The Company has generally been regular in depositing undisputed statutory dues,
including provident fund, employees state insurance, income-tax, sales tax, wealth
tax, service tax, customs duty, excise duty, value added tax, cess and other material
statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of provident fund,
employees state insurance, income-tax, sales tax, wealth tax, service tax, customs
duty, excise duty, value added tax, cess and other material statutory dues in arrears as
at 31st March, 2015 for a period of more than six months from the date they became
(c) Details of dues of income-tax, sales tax, wealth tax, service tax, customs duty,
excise duty, value added tax and cess which have not been deposited as on 31st March, 2015
on account of disputes are given below:
(d) The Company has been regular in transferring amounts to the Investor Education and
Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and Rules made thereunder within time - also refer Note 12 to the standalone
(viii) The Company does not have accumulated losses at the end of the financial year
and the Company has not incurred cash losses during the financial year covered by our
audit and in the immediately preceding financial year. (ix) In our opinion and according
to the information and explanations given to us, the Company has not defaulted in the
repayment of dues to financial institutions, banks and debenture holders. (x) In our
opinion and according to the information and explanations given to us, the terms and
conditions of the guarantees given by the Company for loans taken by others from banks and
financial institutions are not, prima facie, prejudicial to the interests of the Company.
(xi) In our opinion and according to the information and explanations given to us, the
term loans have been applied by the Company during the year for the purposes for which
they were obtained. (xii) To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company and no material fraud on the Company
has been noticed or reported during the year.
(Firms Registration No. 117366W /W-100018)
R. A. BANGA Partner