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NTPC Ltd(Industry :   Power Generation And Supply)
 
BSE Code:532555NSE Symbol: NTPCP/E  (TTM): 9.89
ISIN Demat:INE733E01010Div Yield %:1.99EPS   (TTM) :12.7
Book Value (Rs):99.0331043Market Cap (RsCr):103562.98Face Value (Rs) :10
  Change Company 






NOTES ON ACCOUNTS











Notes to the financial statements for the year ended 31st March 2013

1. Significant accounting policies

A. Basis of preparation

The financial statements are prepared on accrual basis of accounting under historical cost convention in accordance with generally accepted accounting principles in India, the relevant provisions ofthe Companies Act, 1956 including accounting standards notified there under and the provisions of the Electricity Act, 2003 to the extent applicable.

B. Use of estimates

The preparation of financial statements requires estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses during the reporting period. Although such estimates and assumptions are made on a reasonable and prudent basis taking into account all available information, actual results could differ from these estimates & assumptions and such differences are recognized in the period in which the results are crystallized.

C. Grants-in-aid

1. Grants-in-aid received from the Central Government or other authorities towards capital expenditure as well as consumers' contribution to capital works are treated initially as capital reserve and subsequently adjusted as income in the same proportion as the depreciation written off on the assets acquired out of the grants.

2. Where the ownership of the assets acquired out of the grants vests with the government, the grants are adjusted in the carrying cost of such assets.

3. Grants from Government and other agencies towards revenue expenditure are recognized over the period in which the related costs are incurred and are deducted from the related expenses.

D. Fixed assets

1. Tangible assets are carried at historical cost less accumulated depreciation/amortisation.

2. Expenditure on renovation and modernisation of tangible assets resulting in increased life and/or efficiency of an existing asset is added to the cost of related assets.

3. Intangible assets are stated at their cost of acquisition less accumulated amortisation.

4. Capital expenditure on assets not owned by the Company relating to generation of electricity business is reflected as a distinct item in capital work-in-progress till the period of completion and thereafter in the tangible assets.

5. Deposits, payments/liabilities made provisionally towards compensation, rehabilitation and other expenses relatable to land in possession are treated as cost of land.

6. In the case of assets put to use, where final settlement of bills with contractors is yet to be effected, capitalisation is done on provisional basis subject to necessary adjustment in the year of final settlement

7. Assets and systems common to more than one generating unit are capitalised on the basis of engineering estimates/assessments.

E. Capital work-in-progress

1. Administration and general overhead expenses attributable to construction of fixed assets incurred till they are ready for their intended use are identified and allocated on a systematic basis to the cost of related assets.

2. Deposit works/cost plus contracts are accounted for on the basis of statements of account received from the contractors.

3. Unsettled liability for price variation/exchange rate variation in case of contracts are accounted for on estimated basis as per terms of the contracts.

F. Oil and gas exploration costs

1. The Company follows 'Successful Efforts Method' for accounting ofoil& gas exploration activities.

2. Cost of surveys and prospecting activities conducted in search of oil and gas is expensed off in the year in which these are incurred.

3. Acquisition and exploration costs are initially capitalized as 'Exploratory wells-in-progress' under Capital work-in-progress. Such exploratory wells in progress are capitalised in the year in which the producing property is created or is written off in the year when determined to be dry/abandoned.

4. All wells under 'Exploratory Wells-in-Progress' which are more than two years old from the date of completion of drilling are charged to statement of profit and loss, except those wells which have proven reserves and the development of the fields in which the wells are located has been planned.

G. Development of coal mines

Expenditure on exploration and development of new coal deposits is capitalized as 'Development of coal mines' under capital work-in-progress till the mines project is brought to revenue account

H. Foreign currency transactions

1. Foreign currency transactions are initially recorded at the rates of exchange ruling at the date of transaction.

2. At the balance sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items denominated in foreign currency are reported at the exchange rate ruling at the date oftransaction.

3. Exchange differences arising from settlement/translation of foreign currency loans, deposits/liabilities relating to fixed assets/capital work-in-progress in respect of transactions entered prior to 01.04.2004, are adjusted in the carrying cost of related assets. Such exchange differences arising from settlement/translation of long term foreign currency monetary items in respect of transactions entered on or after 01.04.2004 are adjusted in the carrying cost of related assets.

4. Other exchange differences are recognized as income or expense in the period in which they arise.

I. Borrowing costs

Borrowing costs attributable to the fixed assets during construction/exploration, renovation and modernisation are capitalised. Such borrowing costs are apportioned on the average balance of capital work-in-progress for the year. Other borrowing costs are recognised as an expense in the period in which they are incurred.

J. Investments

1. Current investments arevalued at lowerofcost and fairvalue determined on an individual investment basis.

2. Long term investments are carried at cost. Provision is made for diminution, other than temporary, in the value of such investments.

3. Premium paid on long term investments is amortised over the period remaining to maturity.

K. Inventories

1. Inventories are valued at the lower of, cost determined on weighted average basis, and net realizable value.

2. The diminution in the value of obsolete, unserviceable and surplus stores and spares is ascertained on review and provided for.

L. Income recognition

1. Sale of energy is accounted for based on tariff rates approved by the Central Electricity Regulatory Commission (CERC) as modified by the orders of Appellate Tribunal for Electricity to the extent applicable. In case of power stations where the tariff rates are yet to be approved, provisional rates are adopted.

2. Advance against depreciation considered as deferred revenue in earlieryears is included in sales, to the extent depreciation recovered in tariff during the year is lower than the corresponding depreciation charged.

3. Exchange differences on account of translation of foreign currency borrowings recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are accounted as 'Deferred foreign currency fluctuation asset/liability'. The increase or decrease in depreciation for the year due to the accounting of such exchange differences as per accounting policy no. H is adjusted in depreciation.

4. Exchange differences arising from settlement/translation of monetary items denominated in foreign currency (other than long term) to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are accounted as 'Deferred foreign currency fluctuation asset/liability' during construction period and adjusted from theyear in which the same becomes recoverable/ payable.

5. The surcharge on late payment/overdue sundry debtors for sale of energy is recognized when no significant uncertainty as to measurability or collectability exists.

6. Interest/surcharge recoverable on advances to suppliers as well as warranty claims/liquidated damages wherever there is uncertainty of realisation/acceptance are not treated as accrued and are therefore, accounted for on receipt/acceptance.

7. Income from consultancy services is accounted for on the basis of actual progress/technical assessment ofwork executed, in line with the terms of respective consultancy contracts. Claims for reimbursement of expenditure are recognized as other income, as per the terms of consultancy service contracts.

8. Scrap otherthan steel scrap is accounted for as and when sold.

9. Insurance claims for loss of profit are accounted for in the year of acceptance. Other insurance claims are accounted for based on certainty of realisation.

M. Expenditure

a) Depreciation/amortisation

1. Depreciation on the assets of the generation of electricity business is charged on straight line method following the rates and methodology notified by the CERC Tariff Regulations, 2009 in accordance with Section 616 (c) of the Companies Act, 1956.

2. Depreciation on the assets of the coal mining, oil & gas exploration and consultancy business, is charged on straight line method following the rates specified in Schedule XIV of the Companies Act, 1956.

3. Depreciation on the following assets is provided based on their estimated useful life:

a) Kutcha Roads 2 years
b) Enablingworks
- residential buildings including their internal electrification. 15years
- non-residential buildings including their internal electrification, water supply, sewerage & drainage works, railway sidings, aerodromes, helipads and airstrips. 5 years
O Personal computers & laptops including peripherals 5 years
d) Photocopiers and fax machines 5 years
e) Water coolers and refrigerators 12years

4. Depreciation on additions to/deductions from fixed assets during the year is charged on pro-rata basis from/up to the month in which the asset is available for use/disposal.

5. Assets costing up to Rs 5000/- are fully depreciated in the year of acquisition.

6. Cost of software recognized as intangible asset, is amortised on straight line method over a period of legal right to use or 3 years, whichever is less. Other intangible assets are amortized on straight line method over the period of legal right to use or life of the related plant, whichever is less.

7. Where the cost of depreciable assets has undergone a change during the year due to increase/decrease in long term liabilities on account of exchange fluctuation, price adjustment, change in duties or similar factors, the unamortised balance of such asset is charged off prospectively over the remaining useful life determined following the applicable accounting policies relating to depreciation/amortisation.

8. Where the life and/or efficiency of an asset is increased due to renovation and modernization, the expenditure thereon along-with its unamortized depreciable amount is charged off prospectively over the revised useful life determined by technical assessment

9. Machinery spares which can be used only in connection with an item of plant and machinery and their use is expected to be irregular, are capitalised and fully depreciated over the residual useful life of the related plant and machinery.

10. Capital expenditure on assets not owned by the company referred in policy D.4 is amortised over a period of 4 years from the month in which the first unit of project concerned comes into commercial operation and thereafter from the month in which the relevant asset becomes available for use. However, similar expenditure for community development is charged off to revenue.

11. Leasehold land and buildings relating to generation of electricity business are fully amortised over 25 years or lease period whichever is lower following the rates and methodology notified by CERC Tariff Regulations, 2009. Leasehold land acquired on perpetual lease is not amortised.

12. Land acquired for mining business under Coal Bearing Areas (Acquisition & Development) Act, 1957 is amortised on the basis of balance useful life of the project. Other leasehold land acquired for mining business is amortised over the lease period or balance life of the project whichever is less.

b) Other expenditure

13. Expenses on ex-gratia payments under voluntary retirement scheme, training & recruitment and research & development are charged to revenue in the year incurred.

14. Preliminary expenses on account of new projects incurred prior to approval of feasibility report/techno economic clearance are charged to revenue.

15. Net pre-commissioning income/expenditure is adjusted directly in the cost of related assets and systems.

16. Prepaid expenses and prior period expenses/income of items of Rs 100,000/- and below are charged to natural heads of accounts.

17. Transit and handling losses ofcoal as perCompany's norms are included in costofcoal.

N. Employee benefits

1. Defined contribution plan

Company's contributions paid/payable during the year to provident fund is recognised in the statement of profit and loss. The same is paid to a fund administered through a separate trust

2. Defined benefit plan

Company's liability towards gratuity, leave benefits (including compensated absences), post retirement medical facility and other terminal benefits are determined by independent actuary, at year end using the projected unit credit method. Past service costs are recognised on a straight line basis over the average period until the benefits become vested. Actuarial gains and losses are recognised immediately in the statementof profit and loss. Liability for gratuity as per actuarial valuation is paid to a fund administered through a separatetrust

3. Short term employee benefits

These are recognised as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related services are rendered.

O. Leases

1. Finance lease

1.1 Assetstaken on finance lease arecapitalized atfairvalueornet presentvalueofthe minimum lease payments,whicheveris less.

1.2 Depreciation on the assets taken on finance lease is charged at the rate applicable to similar type of fixed assets as per accounting policy no. M.a.1 or M.a.2. If the leased assets are returnable to the lessor on the expiry of the lease period, depreciation is charged over its useful life or lease period, whichever is less.

1.3 Lease payments are apportioned between the finance charges and outstanding liability in respect of assets taken on lease.

2. Operating lease

Assets acquired on lease where a significant portion of the risk and rewards of the ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to revenue.

P. Impairment

The carrying amount of cash generating units is reviewed at each balance sheet date where there is any indication of impairment based on internal/ external indicators. An impairment loss is recognised in the statement of profit and loss where the carrying amount exceeds the recoverable amount ofthe cash generating units. An impairment loss is reversed if there is change in the recoverable amount and such loss either no longer exists or has decreased.

Q. Provisions and contingent liabilities

A provision is recognised when the company has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect ofwhich a reliable estimate can be made. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date and are not discounted to present value. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.

R. Cash flow statement

Cash flow statement is prepared in accordance with the indirect method prescribed in Accounting Standard (AS) 3 on 'Cash Flow Statements'.

2. Share capital

As at 31.03.2013 31.03.2012
Equity share capital
Authorised
10,00,00,00,000 shares of parvalue Rs 10/- each (previous year 10,00,00,00,000 shares of parvalue Rs 10/- each) 10,000.00 10,000.00
Issued, subscribed and fully paid-up
8,24,54,64,400 shares of par value Rs 10/- each (previous year 8,24,54,64,400 shares of parvalue Rs 10/- each) 8,245.46 8,245.46

a) During the year, the Company has not issued/bought back any shares.

b) During the year, Government of India has divested 9.50% of the paid up equity capital of the Company by way of offer for sale through stock exchange mechanism as provided by SEBI circular CIR/MRD/DP/18/2012 dated 18th July 2012 and circular no. CIR/MRD/DP/04/2013 dated 25th January2013.

c) The Company has only one class of equity shares having a par value Rs 10/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time and are entitled to voting rights proportionate to their share holding at the meetings of shareholders.

d) During the year ended 31st March 2013, the amount of per share dividend recognised as distribution to equity share holders was Rs 4.50 (previous year Rs 4.00) and special dividend of Rs 1.25.

e) Details of shareholders holding more than 5% shares in the Company:

Particulars

31.03.2013

31.03.2012

No. of shares %age holding No. of shares %age holding
- President of India 6184098300 75.00 6967361180 84.50
- Life Insurance Corporation of India 631294191 7.66 487167008 5.91

3. Reserves and surplus

As at 31.03.2013 31.03.2012
Capital reserve
As per last financial statements 153.62 151.88
Add : Transfer from surplus 0.97 0.44
Add : Grants received duringtheyear - 1.33
Less: Adjustments during the year 0.02 0.03
154.57 153.62
Securities premium account 2,228.11 2,228.11
Bonds redemption reserve
As per last financial statements 2,389.04 2,231.66
Add : Transfer from surplus 492.79 482.38
Less: Transferto surplus 346.50 325.00
2,535.33 2,389.04
General reserve
As per last financial statements 60,202.80 55,002.80
Add : Transfer from surplus 6,500.00 5,200.00
66,702.80 60,202.80
Surplus
As per last financial statements 72.14 32.34
Add: Profit for the year as per Statement of Profit & Loss 12,619.39 9,223.73
Write back from bond redemption reserve 346.50 325.00
Less: Transferto bond redemption reserve 492.79 482.38
Transferto capital reserve 0.97 0.44
Transfertogeneral reserve 6,500.00 5,200.00
Dividend paid 3,092.07 2,885.92
Tax on dividend paid 501.61 465.09
Proposed dividend 1,649.09 412.27
Tax on proposed dividend 280.26 62.83
Netsurplus 521.24 72.14
Total 72,142.05 65,045.71

During theyear, the Company has paid interim dividend @ Rs 3.75 (previous year Rs 3.50) per equity share of parvalue Rs 10/- each for the year 2012-13. Further, the Company has proposed final dividend of Rs 2.00 (including special dividend of Rs 1.25) (previous year Rs 0.50) per equity share of parvalue Rs 10/- each for the year 2012-13. Thus, the total dividend (including interim dividend) for the financial year 2012-13 is Rs 4.50 (previous year Rs 4.00) per equity share of parvalue Rs 10/-each and special dividend is Rs 1.25 per equity share of parvalue Rs 10/-each.

4. Deferred revenue

As at 31.03.2013 31.03.2012
On account of advance against depreciation 708.60 718.47
On account of income from foreign currency fluctuation 535.45 711.59
Total 1,244.05 1,430.06

a) Advance against depreciation (AAD) was an element of tariff provided under the Tariff Regulations for 2001-04 and 2004-09 to facilitate debt servicing by the generators since it was considered that depreciation recovered in the tariff considering a useful life of 25 years is not adequate for debt servicing. Though this amount is not repayable to the beneficiaries, keeping in view the matching principle, and in line with the opinion of the Expert Advisor/ Committee (EAC) of the Institute of Chartered Accountants of India (ICAI), this was treated as deferred revenue to the extent depreciation chargeable in the accounts is considered to be higher than the depreciation recoverable in tariff in future years. Since AAD is in the nature of deferred revenue and does not constitute a liability, it has been disclosed in this note separately from shareholder's funds and liabilities.

b) In line with significant accounting policy no. L.2 (Note 1), an amount of Rs 9.87 crore (previous year Rs 34.39 crore) has been recognized during the year from the AAD and included in energy sales (Note 22).

c) Foreign exchange rate variation (FERV) on foreign currency loans and interest thereon is recoverable from/payable to the customers in line with the Tariff Regulations. Keeping in view the opinion ofthe EAC of ICAI, the Company is recognizing deferred foreign currency fluctuation asset by corresponding credit to deferred income from foreign currency fluctuation in respect of the FERV on foreign currency loans or interest thereon adjusted in the cost of fixed assets, which is recoverable from the customers in future years as provided in accounting policy no. L.3 (Note 1). This amountwill be recognized as revenue correspondingtothe depreciation charge in futureyears. The amount does not constitute a liability to be discharged in future periods and hence, it has been disclosed separately from shareholder's funds and liabilities.

5. Long-term borrowings

As at 31.03.2013 31.03.2012
Bonds
Secured
9.25% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each with five equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 11th year and in annual installments thereafter upto the end of 15thyear respectively commencing from 04th May 2023 and ending on 04th May 2027 (Forty fourth issue - private placement)"'" 500.00
8.48% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 1stMay2023 (Seventeenth issue - private placement)' 50.00 50.00
9.00% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each with five equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 11th year and in annual installments thereafter upto the end of 15thyear respectively commencing from 25th January 2023 and ending on 25th January 2027 (Forty second issue - private placement)'" 500.00 500.00
8.84% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 4th October 2022(Forty seventh issue - private placement)7'" 390.00 -
8.93% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 19th January 2021 (Thirty seventh issue - private placement)'" 300.00 300.00
8.73 % Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 3151 March 2020 (Thirty third issue- private placement)'" 195.00 195.00
8.78 % Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 9th March 2020 (Thirty first issue- private placement)'" 500.00 500.00
11.25% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in five equal annual installments commencing from 6th Nov 2019 and ending on 6th Nov 2023 (Twenty seventh issue - private placement)'" 350.00 350.00
7.89% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 5th May 2019 (Thirtieth issue - private placement)'" 700.00 700.00
8.65% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 4th February 2019(Twenty ninth issue - private placement)'" 550.00 550.00
7.50% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 12th January 2019(Nineteenth issue - private placement)" 50.00 50.00
11% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 21st November 2018(Twenty eighth issue - private placement)" 1,000.00 1,000.00

 

As at 31.03.2013 31.03.2012
9.3473% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20thyear respectively commencing from 20th July 2018 and ending on 20th July 2032 (Forty sixth issue - private placement)7111 75.00
9.4376% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20thyear respectively commencing from 16th May 2018and ending on 16th May 2032 (Forty fifth issue - private placement)™ 75.00
8.00% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 10th April 2018(Sixteenth issue -private placement)' 100.00 100.00
9.2573% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 2nd March 2018and ending on 2nd March 2032 (Forty third issue - private placement)'" 75.00 75.00
9.6713 % Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 23rd Decemeber2017and ending on 23rd December2031 (Forty first issue - private placement)'". 75.00 75.00
9.558 % Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 29th July 2017 and ending on 29th July 2031 (Fortieth issue - private placement)'" 75.00 75.00
9.3896% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 9th June 2017and ending on 9th June 2031 (Thirty ninth issue - private placement)'" 105.00 105.00
9.17% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 22nc March 2017and ending on 22nd March 2031 (Thirty eighth issue - private placement)'". 75.00 75.00
8.8086% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 15th December 2016and ending on 15th December 2030 (Thirty sixth issue - private placement)'" 75.00 75.00
8.785% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 15th September2016 and ending on 15th September2030 (Thirtyfifth issue - private placement)'" 120.00 120.00
8.71% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 10th June 2016 and ending on 10th June 2030 (Thirty fourth issue - private placement)'" 150.00 150.00
8.8493% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 25th March 2016and ending on 25th March 2030 (Thirty second issue - private placement)'" 105.00 105.00
9.37% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 70,00,000/- each with fourteen separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 4th June 2012 and ending on 4th December 2018 (Twenty fifth issue - private placement)'" 357.00 428.50
9.06% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 70,00,000/- each with fourteen separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 4th June 2012 and ending on 4th December 2018 (Twenty sixth issue - private placement)"' 357.00 428.50
8.6077% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 20,00,000/- each with twenty equal separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 9th September 2011 and ending on 9th March 2021 (Twenty fourth issue - private placement)lv 350.00 400.00
8.3796% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 20,00,000/- each with twenty equal separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 5th August 2011 and ending on 5th February 2021 (Twenty third issue - private placement)w 350.00 400.00

 

As at 31.03.2013 31.03.2012
8.1771% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 20,00,000/- each with twenty equal separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 2nd July 2011 and ending on 2nd January 2021 (Twenty second issue - private placement)w 350.00 400.00
7.7125% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 20,00,000/- each with twenty equal separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 2nd August 2010 and ending on 2nd February 2020 (Twenty first issue - private placement)v 600.00 700.00
7.552% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 20,00,000/- each with twenty equal separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 23rd September 2009 and ending on 23rd March 2019 (Twentieth Issue -private placement)71 250.00 300.00
5.95% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each with five equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 10th year respectively from 15th September 2003 (Eighteenth issue - private placement)7" 100.00
9.55% Secured non-cumulative non-convertible taxable redeemable bonds of Rs 10,00,000/- each with ten equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end ofthe 6th year and in annual installments thereafter upto the end of 15th year respectively from 30th April 2002 (Thirteenth issue - Part B - private placement)lx 300.00 375.00
9.55% Secured non-cumulative non-convertible taxable redeemable bonds of Rs 10,00,000/- each redeemable at par in ten equal annual installments commencing from the end of 6th year and upto the end of15thyear respectivelyfrom 18th April 2002(Thirteenth issue -PartA- private placement)lx 300.00 375.00
Unsecured
8.73% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 7th March 2023 (Forty eighth issue-private placement) * 300.00
9,704.00 9,057.00
Foreign currency notes
Unsecured
4.75 % Fixed rate notes due for repayment on 3rd October 2022 2,745.50 -
5.625 % Fixed rate notes due for repayment on 14th July 2021 2,745.50 2,581.50
5.875 % Fixed rate notes due for repayment on 2nd March 2016 1,647.30 1,548.90
Term loans
From Banks
Unsecured
Foreign currency loans 4,766.70 3,927.15
Rupee loans 13,884.90 9,463.52
From Others
Secured
Foreign currency loan (guaranteed by GOI) - 99.09
Unsecured
Foreign currency loans (guaranteed by GOI) 2,604.09 2,999.49
Other foreign currency loans 1,864.55 1,872.51
Rupee loans 13,090.55 14,358.43
Deposits
Unsecured
Fixed deposits 0.52 0.47
Others
Unsecured
Bonds application money pending allottmenf 200.00 -
Long term maturities of finance lease obligations (Secured)" 0.05 0.21
Total 53,253.66 45,908.27

* Formalities for creation of security as per terms of bond issue are in progress.

** Bond application money received in respect of 8.80% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 4th April 2013(Forty ninth issue-private placement).

a) Details of terms of repayment and rate of interest

Particulars

Non current portion

Current portion

Term loans 31.03.2013 31.03.2012 31.03.2013 31.03.2012
Secured
Foreign currency loan (guaranteed by GOI) - Others - 99.09 96.44 186.38
- 99.09 96.44 186.38
Unsecured
Foreign currency loans (guaranteed by GOI) - Others 2,604.09 2,999.49 171.73 183.64
Foreign currency loans - Banks 4,766.70 3,927.15 233.59 219.64
Other foreign currency loans - Others 1,864.55 1,872.51 576.19 646.04
Rupee loans - Banks 13,884.90 9,463.52 1,753.63 1,689.85
Rupee loans - Others 13,090.55 14,358.43 1,367.73 740.33
36,210.79 32,621.10 4,102.87 3,479.50
Fixed deposits (unsecured) 0.52 0.47 0.11 11.79

i) Secured Foreign Currency Loan (guaranteed by GOI) carries floating rate of interest linked to Currency Weighted LIBOR and is repayable on June 15, 2013.

ii) Unsecured Foreign Currency Loans (guaranteed by GOI) - Others carry fixed rate of interest ranging from 1.80% p.a. to 2.30% p.a. and are repayable in 27 to 36 semi annual installments as of 31st March 2013.

iii) Unsecured Foreign Currency Loans - Banks include loans of Rs 591.81 Crore (previous year Rs 635.95 Crore) which carry fixed rate of interest of 4.31% p.a. and loans of Rs 4,408.48 Crore (previous year Rs 3,510.84 Crore) which carry floating rate of interest linked to 6M LIBOR. These loans are repayable in 2 to 26 semiannual instalments as of 31st March 2013, commencing after moratorium period if any, as per the terms of the respective loan agreements.

iv) Unsecured Foreign Currency Loans-Others include loans of Rs 1,071.57 Crore (previous year Rs 654.40 Crore) which carry fixed rate of interest ranging from 3.50% p.a. to 4.31% p.a., loans of Rs 1,277.60 Crore (previous year Rs 1,675.48 Crore) which carry floating rate of interest linked to 6M LIBOR / 6M EURIBOR and a loan of Rs 91.57 Crore (previous year Rs 188.67 Crore) which carries floating rate of interest linked to the cost of borrowings of the Multilateral Agency lender. These loans are repayable in 2 to 24 semiannual installments as of 31st March 2013, commencing after moratorium period if any, as per the terms of the respective loan agreements.

v) Unsecured rupee term loans carry interest ranging from 5.707% to 12.75% p.a. with monthly/quarterly/half-yearly rests. These loans are repayable in quarterly/half-yearly/yearly installments as per the terms of the respective loan agreements. The repayment period extends from a period of five to fifteen years after a moratorium period of six months to five years.

vi) Unsecured fixed deposits carry interest @ 6.75% to 8.00% p.a. payable quarterly/monthly for non-cumulative schemes and on maturity in case of cumulative schemes compounded quarterly. The deposits are repayable during a period of one to three years from the date of issue.

b) The finance lease obligations are repayable in installments as per the terms ofthe respective lease agreements generally over a period of four years.

c) There has been no default in repayment of any of the loans or interest thereon as at the end of the year.

Details of securities

I Secured by (I) English mortgage,on first pari-passu charge basis, ofthe office premises of the Company at Mumbai and (II) Equitable mortgage, by wayoffirst charge, by deposit of title deeds ofthe immovable properties pertainingto National Capital Power Station.

II Secured by (I) English mortgage,on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Hypothecation of all the present and future movable assets (excluding receivables) of Singrauli SuperThermal Power Station, Anta Gas Power Station, Auraiya Gas Power Station, Barh Super Thermal Power Project, Farakka Super Thermal Power Station, Kahalgaon Super Thermal Power Station, Koldam Hydel Power Project, Simhadri Super Thermal Power Project, Sipat Super Thermal Power Project, Talcher Thermal Power Station, Talcher Super Thermal Power Project, Tanda Thermal Power Station, Vindhyachal SuperThermal Power Station, National Capital Power Station, Dadri Gas Power Station, Feroze Gandhi Unchahar Power Station, Loharinag Pala Hydro Power Project and Tapovan-Vishnugad Hydro Power Project as first charge, ranking pari-passu with charge, if any, already created in favour of the Company's Bankers on such movable assets hypothecated to them for working capital requirement.

III Secured by (I) English mortgage, on first pari passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage of the immovable properties, on first pari-passu charge basis, pertaining to Sipat Super Thermal Power Project by extension of charge already created.

IV Secured by (I) English mortgage,on first pari-passu charge basis, ofthe office premises ofthe Company atMumbai and (ll)Equitable mortgage, by way offirstcharge, bydeposit ofthe title deeds ofthe immovable properties pertainingto Sipat SuperThermal Power Project.

V Secured by (I) English mortgage,on first pari-passu charge basis, of the office premises of the Company at Mumbai, (II) Hypothecation of all the present and future movable assets (excluding receivables) of Barh Super Thermal Power Project on first pari-pasu charge basis, ranking pari passu with charge already created in favour of Trustee for other Series of Bonds and (III) Equitable mortgage of the immovable properties, on first pari-passu charge basis, pertaining to Ramagundam Super Thermal Power Station by extension of charge already created.

VI Secured by (I) English mortgage,on first pari-passu charge basis, of the office premises of the Company atMumbai and (II) Equitable mortgage, by wayoffirst charge, by deposit of title deeds ofthe immovable properties pertainingto Ramagundam SuperThermal Power Station.

VII Secured by (I) English mortgage,on first pari-passu charge basis, of the office premises of the Company at Mumbai, (II) Hypothecation of all the present and future movable assets (excluding receivables) of Singrauli Super Thermal Power Station, Anta Gas Power Station, Auraiya Gas Power Station, Barh Super Thermal Power Project, Farakka Super Thermal Power Station, Kahalgaon Super Thermal Power Station, Koldam Hydel Power Project, Simhadri Super Thermal Power Project, Sipat Super Thermal Power Project, Talcher Thermal Power Station, Talcher Super Thermal Power Project, Tanda Thermal Power Station, Vindhyachal Super Thermal Power Station, National Capital Power Station, Dadri Gas Power Station, Feroze Gandhi Unchahar Power Station, Loharinag Pala Hydro Power Project and Tapovan-Vishnugad Hydro Power Project as first charge, ranking pari-passu with charge, if any, already created in favour of the Company's Bankers on such movable assets hypothecated to them for working capital requirement and (III) Equitable mortgage ofthe immovable properties, on first pari-passu charge basis, pertainingto National Capital Power Station by extension of charge already created.

VIII Secured by (I) English mortgage,on first pari-passu charge basis, ofthe office premises ofthe CompanyatMumbai, (II) Equitable mortgage ofthe immovable properties, on first pari-passu charge basis, pertaining to National Capital Power Station by extension of charge already created.

IX Secured by (I) English mortgage,on first pari-passu charge basis, of the office premises of the Company at Mumbai, (II) Hypothecation of all the present and future movable assets (excluding receivables) of Singrauli Super Thermal Power Station, Anta Gas Power Station, Auraiya Gas Power Station, Barh Super Thermal Power Project, Farakka Super Thermal Power Station, Kahalgaon Super Thermal Power Station, Koldam Hydel Power Project, Simhadri Super Thermal Power Project, Sipat Super Thermal Power Project, Talcher Thermal Power Station, Talcher Super Thermal Power Project, Tanda Thermal Power Station, Vindhyachal Super Thermal Power Station, National Capital Power Station, Dadri Gas Power Station, Feroze Gandhi Unchahar Power Station, Loharinag Pala Hydro Power Project and Tapovan-Vishnugad Hydro Power Project as first charge, ranking pari-passu with charge, if any, already created in favour of the Company's Bankers on such movable assets hypothecated to them for working capital requirement and (III) Equitable mortgage ofthe immovable properties, on first pari-passu charge basis, pertainingto Singrauli SuperThermal Power Station by extension of charge already created.

X Secured against fixed assets obtained under finance lease.

XI Security cover mentioned at si. no. I to IX is above 100% of the debt securities outstanding.

6. Deferred tax liabilities (net)

Asat 01.04.2012 Additions/ (Adjustments) duringtheyear As at 31.03.2013
Deferred tax liability
Difference of book depreciation and tax depreciation 6,002.02 321.04 6,323.06
Less: Deferred tax assets
Provisions & other disallowances fortax purposes 1,098.16 (322.24) 775.92
Disallowances u/s43B ofthe IncomeTaxAct, 1961 329.40 4.09 333.49
4,574.46 639.19 5,213.65
Less: Recoverable from beneficiaries 3,937.56 360.79 4,298.35
Total 636.90 278.40 915.30

a) The net increase during the year in the deferred tax liability of Rs 278.40 crore (previous year Rs 33.95 crore) has been debited to Statement of Profit and Loss.

b) Deferred tax assets and deferred tax liabilities have been offset as they relate to the same governing laws.

7. Other long-term liabilities

As at 31.03.2013 31.03.2012
Trade payables 6.47 5.07
Deferred foreign currency fluctuation liability 135.60 134.43
Other liabilities
Payable for capital expenditure 1,823.64 1,589.28
Others 0.28 0.28
Total 1,965.99 1,729.06

a) Disclosure w.r.t. micro and small enterprises as required by the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) is made in Note48.

b) In line with accounting policy no.L.3 (Note 1), deferred foreign currency fluctuation liability to the extent of Rs 1.17 crore (previous year Rs 37.89 crore) has been made during the year.

c) Other liabilities - Others include deposits received from contractors, customers and parties towards sale of scrap etc.

8. Long-term provisions

As at 31.03.2013 31.03.2012
Provision for employee benefits
Opening balance 603.70 561.90
Additions/(adjustments) during the year 136.22 41.80
Total 739.92 603.70

a) Disclosure required byAS15 on 'Employees benefits' has been made in Note 38.

9. Trade payables

As at 31.03.2013 31.03.2012
For goods and services 5,158.77 4,460.65
Disclosure w.r.t. micro and small enterprises as required by the MSMED Act is made in Note 48.
10. Other current liabilities
Current maturities of long term borrowings
Bonds - Secured 693.00 693.00
From Banks
Unsecured
Foreign currency loans 233.59 219.64
Rupee term loans 1,753.63 1,689.85
From Others
Secured
Foreign currency loan (guaranteed by GOD 96.44 186.38
Unsecured
Foreign currency loans (guaranteed by GOD 171.73 183.64
Other foreign currency loans 576.19 646.04
Rupee term loans 1,367.73 740.33
Fixed deposits 0.11 11.79
4,892.42 4,370.67
Current maturities of finance lease obligitions -Secured 0.22 0.43
Interest accrued but not due on borrowings 626.52 499.81
Unpaid dividends 15.65 11.48
Unpaid matured deposits and interest accrued thereon 0.20 0.26
Unpaid matured bonds and interest accrued thereon 0.59 0.59
Book overdraft 17.23 2.96
Advances from customers and others 323.43 289.16
Payable for capital expenditure 3,512.68 3,503.75
Other payables
Tax deducted at source and other statutory dues 162.69 154.31
Deposits from contractors and others 102.19 92.92
Gratuity obligations 93.12 60.16
Payabletoemployees 452.54 318.02
Others 247.24 232.72
Total 10,446.72 9,537.24

a) Unpaid dividends, matured deposits and bonds including the interest accrued thereon include the amounts which have not been claimed by the investor/holders of the equity shares/bonds/fixed deposits. Out of the above, no amount is due for payment to investor education and protection fund.

b) Details in respect of rate of interest and terms of repayment of secured and unsecured current maturities of long term borrowings indicated above are disclosed in Note 5.

c) Other payables - Others include amount payable to hospitals, retired employees etc

d) Payable for capital expenditure includes liabilities of Rs 378.77 crore (previous year Rs 371.01 crore) towards an equipment supplier pending evaluation of performance and guarantee test results of steam/turbine generators at some ofthe stations. Pending settlement, liquidated damages recoverable for shortfall in performance of these equipments, if any, have not been recognised.

11. Short-term provisions

As at 31.03.2013 31.03.2012
Provision for employee benefits
Opening balance 1,143.84 1,170.07
Additions/(adjustments) during the year 279.80 (26.23)
Closing balance 1,423.64 1,143.84
Provision for proposed dividend
Opening balance 412.27 659.63
Additions during the year 1,649.09 412.27
Amounts paid during the year 412.27 659.63
Closing balance 1,649.09 412.27
Provision for tax on proposed dividend
Opening balance 62.83 103.93
Additions during the year 280.26 62.83
Amounts paid during the year 62.83 103.93
Closing balance 280.26 62.83
Provision for obligations incidental to land acquisition
Opening balance 340.08 255.40
Additions during the year 1,850.25 124.40
Amounts paid during the year 129.07 25.20
Amounts reversed during the year 7.32 14.52
Closing balance 2,053.94 340.08
Provision for tariff adjustment
Opening balance 1,213.70 -
Additions during the year 103.24 1,526.45
Amounts reversed during the year - 312.75
Closing balance 1,316.94 1,213.70
Provision for shortage in fixed assets pending investigation
Opening balance 1.31 1.00
Additions during the year 0.27 0.74
Amounts adjusted during the year 0.10 0.07
Amounts reversed during the year 0.39 0.36
Closing balance 1.09 1.31
Others
Opening balance 59.66 17.86
Additions during the year 220.83 41.90
Amounts adjusted during the year 0.51 -
Amounts reversed during the year 0.40 0.10
Closing balance 279.58 59.66
Total 7,004.54 3,233.69

a) Disclosure required byAS 15 on 'Employees Benefits' has been made in Note 38.

b) In terms of guidelines of Department of Public Enterprises (DPE), Government of India (GOI) dated 26.11.2008 and 02.04.2009 and subsquent clarification issued by the DPE, the Company is allowed to contribute upto 30% of employees salary (basic pay plus DA) towards superannuation benefits including pension w.e.f. 1st January 2007. Consequent upon receipt of approval from the Ministry of Power (MoP), GOI for introduction of a defined contribution pension scheme in the Company w.e.f 1st January 2007, a separate pension trust has been formed for administration of the pension scheme. The pension scheme is yet to be made operational as clarification on certain issues referred to MoP and DPE are awaited. Pending this, an amount of Rs 156.90 crore (previous year Rs 174.55 crore) for the year and Rs 458.40 crore up to 3151 March 2013 (upto the previousyear Rs 301.50 crore) has been provided and included in provision for employee benefits.

c) Provision for tariff adjustment - addition during the year includes (-) Rs 45.95 crore (Previous year Rs Nil) recognised as sales on account of the impact ofthe challenged issues of the APTELjudgement (Refer Note 22).

d) Other provisions include Rs 46.27 crore (previous year Rs 41.19 crore) towards cost of unfinished minimum work programme demanded by the Ministry of Petrolium and Natural Gas (MoP&NG) including interest thereon in relation to block AA-ONN-2003/2 [Refer Note 45 (b) (ii)] and Rs 200.84 crore (previous year Rs 18.07 crore) towards provision for litigation cases.

12. Tangible assets

Gross Block

Depredation/Amortisation

Net Block

As at 01.04.2012 Additions Deductions/ Adjustments As at 31.03.2013 Upto 01.04.2012 For the year Deductions/ Adjustments Upto 31.03.2013 As at 31.03.2013 Asat 31.03.2012
Land (including development expenses)
Freehold 2,147.32 1,131.42 (782.21) 4,060.95 - - - - 4,060.95 2,147.32
Leasehold 650.05 750.58 (44.52) 1,445.15 131.64 26.76 - 158.40 1,286.75 518.41
Roads, bridges, culverts & helipads 519.47 61.63 (2.83) 583.93 180.00 23.88 (0.01) 203.89 380.04 339.47
Building Freehold
Main plant 3,393.69 1,097.95 (63.41) 4,555.05 1,212.32 121.59 (0.01) 1,333.92 3,221.13 2,181.37
Others 2,270.70 210.59 (8.91) 2,490.20 867.12 99.90 (0.17) 967.19 1,523.01 1,403.58
Leasehold 50.18 - 0.29 49.89 24.65 2.94 0.18 27.41 22.48 25.53
Temporaryerection 30.39 4.20 (0.10) 34.69 30.03 2.32 - 32.35 2.34 0.36
Water supply, drainage & sewerage system 602.82 41.35 (1.14) 645.31 293.11 21.83 0.02 314.92 330.39 309.71
MGR track and signalling system 1,238.05 24.65 (63.15) 1,325.85 588.75 41.07 - 629.82 696.03 649.30
Railway sidins 376.84 56.60 (7.64) 441.08 153.68 19.35 - 173.03 268.05 223.16
Earth dam reservoir 277.45 8.32 (0.79) 286.56 94.20 13.78 - 107.98 178.58 183.25
Plantandequipment 68,248.78 15,880.16 (947.00) 85,075.94 31,883.86 3,412.16 131.46 35,164.56 49,911.38 36,364.92
Furniture and fixtures 381.87 36.04 3.29 414.62 231.54 16.93 2.44 246.03 168.59 150.33
Vehicles including speedboats
Owned 11.66 0.69 1.32 11.03 5.73 0.69 0.68 5.74 5.29 5.93
Leased 1.99 - (0.17) 2.16 1.39 0.52 - 1.91 0.25 0.60
Office equipment 139.27 21.93 2.74 158.46 71.28 8.97 2.99 77.26 81.20 67.99
EDP, WP machines and satcom equipment 364.82 39.12 13.67 390.27 254.11 26.70 12.26 268.55 121.72 110.71
Construction equipments 144.88 14.38 1.63 157.63 78.43 8.71 2.65 84.49 73.14 66.45
Electrical installations 321.34 66.32 (2.94) 390.60 150.47 12.45 0.20 162.72 227.88 170.87
Communication equipments 92.78 3.38 0.62 95.54 48.94 4.86 0.83 52.97 42.57 43.84
Hospital Equipments 29.34 3.27 0.21 32.40 15.44 0.99 0.16 16.27 16.13 13.90
Laboratoiy and workshop equipments 37.61 10.82 (0.08) 48.51 12.46 1.78 (0.01) 14.25 34.26 25.15
Assets under 5 KM scheme of the GO - 0.53 - 0.53 - 0.01 - 0.01 0.52 -
Capital expenditure on assets not owned by the Company 178.29 0.91 (0.59) 179.79 135.97 9.08 - 145.05 34.74 42.32
Assets of government 2.84 - 0.03 2.81 - - - - 2.81 2.84
Less:Grants from government 2.84 - 0.03 2.81 - - - - 2.81 2.84
Total 81,509.59 19,464.84 (1,901.71) 102,876.14 36,465.12 3,877.27 153.67 40,188.72 62,687.42 45,044.47
Previous year 72,456.58 7,336.32 (1,716.69) 81,509.59 33,429.65 3,118.10 82.63 36,465.12 45,044.47 39,026.93

Deduction/adjustments from gross block and depreciation / amortisation for the year includes:

Gross Block

Depreciation/Amortisation

31.03.2013 31.03.2012 31.03.2013 31.03.2012
Disposal ofassets 5.36 12.02 4.05 6.86
Retirement of assets 201.91 195.68 142.49 76.96
Cost adjustments including exchange differences (2,109.66) (1,912.42) - -
Assets capitalised with retrospective effect/write back of excess capitalisation (8.67) (17.48) 0.18 (4.83)
Others 9.35 5.51 6.95 3.64
(1,901.71) (1,716.69) 153.67 82.63

a) The conveyancing ofthe title to 11,322 acres of freehold land of value Rs 1,587.59 crore (previous year 10,359 acres of value Rs 527.91 crore), buildings & structures of value Rs 136.74 crore (previous year Rs 136.60 crore) and also execution of lease agreements for 10,515 acres of land of value Rs 467.02 crore (previousyear8,436 acres, value Rs 324.76 crore) in favourofthe Companyare awaiting completion of legal formalities.

b) Leasehold land includes 2,002 acres valuing Rs 642.07 crore (previous year 819 acres valuing Rs 29.67 crore) acquired on perpetual lease and accordingly not amortised.

c) Land does not include value of 1,181 acres (previous year 1,181 acres) of land in possession of the Company. This will be accounted for on settlement of the price thereof by the State Government Authorities.

d) Land includes 1,233 acres of value Rs 14.99 crore (previous year 1,237 acres of value Rs 14.90 crore) not in possession of the Company. The Company is taking appropriate steps for repossession ofthe same.

e) Land includes an amount of Rs 152.48 crore (previous year Rs 119.24 crore) deposited with various authorities in respect of land in possession which is subject to adjustment on final determination of price.

f) Possession of land measuring 98 acres (previous year 98 acres) consisting of 79 acres of freehold land (previous year 79 acres) and 19 acres of lease hold land (previous year 19 acres) of value Rs 0.21 crore (previous year Rs 0.21 crore) was transferred to Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (erstwhile UPSEB) for a consideration of Rs 0.21 crore. Pending approval for transfer of the said land, the area and value of this land has been included in the total land of the Company. The consideration received from erstwhile UPSEB is disclosed under Note -10 - 'Other Current Liabilities -as other liabilities'.

g) Ministry of Power, Government of India vide its notification no. 2/38/99-BTPS (Volume VII) dated 22nd September 2006 transferred land of a power station to the Company on operating lease of 50 years. Lease rent for the year amounting to Rs 6.20 crore (previous year Rs 6.18 crore) has been charged to the statement of profit & loss.

h) The Company has received an opinion from the EAC of the ICAI on accounting treatment of capital expenditure on assets not owned by the Company wherein it was opined that such expenditure are to be charged to the statement of profit & loss as and when incurred. The Company has represented that such expenditure being essential for setting up of a project, the same be accounted in line with the existing accounting practice and sought a review. Pending receipt of communication from ICAI regarding the review, existing treatment has been continued as per the relevant accounting policy.

i) Assets under5 KM scheme ofthe GOI represent expenditure on electrification of villages within 5 KM peripheryofthe plant

j) From the accounting periods commencing on or after 7th December 2006, the Company adjusts exchange differences arising on translation/settlement of long-term foreign currency monetary items relating to the acquisition of a depreciable asset to the cost of asset and depreciates the same over the remaining life ofthe asset

k) The borrowing costs capitalised during the year ended 31st March 2013 is Rs 2,148.14 crore (previous year Rs 2,342.21 crore). The Company capitalised the borrowings costs in the capital work-in-progress (CWIP). Exchange differences capitalised are disclosed in the 'Addition' column of CWIP and allocated to various heads of CWIP in the year of capitalisation through 'Deductions/Adjsutmenf column of CWIP. Exchange differences in respect of assets already capitalised are disclosed in the 'Deductions/Adjustments' column of fixed assets. Asset-wise details of exchange differences and borrowing costs included in the cost of major heads of fixed assets and CWIP through 'Addition' or 'Deductions/Adjustments' column are given below:

For the year ended 31st March 2013

For the year ended 31st March 2012

Exchg. Difference incl in fixed assets/ Borrowing costs incl in fixed assets/ Exchg. Difference incl in fixed assets/ Borrowing costs incl in fixed assets/
CWIP CWIP CWIP CWIP
Building:
Main plant 2.15 121.58 26.94 63.76
Others 0.18 26.81 3.73 34.07
Hydraulicworks, barrages, dams, tunnels and powerchannel - 194.24 - 238.53
MGR track and signalling system - 8.94 1.54 7.84
Railway siding 0.03 18.37 0.03 5.27
Plant and equipment 655.55 1,458.93 1,026.74 1,724.97
Others including pending allocation 398.10 319.27 602.23 267.77
Total 1,056.01 2,148.14 1,661.21 2,342.21

Intangible assets

Gross Block

Amortisation

Net Block

Asat 01.04.2012 Additions Deductions/ Adjustments As at 31.03.2013 Upto 01.04.2012 For theyear Deductions/ Adjustments Upto 31.03.2013 As at 31.03.2013 Asat 31.03.2012
Software 93.15 3.11 0.76 95.50 88.42 2.50 (0.25) 91.17 4.33 4.73
Right of Use - Land 6.46 41.17 (0.10) 47.73 2.45 2.33 - 4.78 42.95 4.01
- Others 219.06 - (7.27) 226.33 15.91 9.02 - 24.93 201.40 203.15
Total 318.67 44.28 (6.61) 369.56 106.78 13.85 (0.25) 120.88 248.68 211.89
Previous year 296.43 2.65 (19.59) 318.67 89.54 16.47 (0.77) 106.78 211.89 206.89

a) The right of use of land, otherthan perpetual in nature, is amortised overits life or25yearswhiceveris less.

b) Cost of acquisition ofthe right for drawl of water amounting to Rs 226.33 crore (previous year Rs 219.06 crore) is included under intangible assets - Right of use - Others.

Deduction/adjustments from gross block and amortisation for the year includes:

Gross Block

Depreciation / Amortisation

31.03.2013 31.03.2012 31.03.2013 31.03.2012
Retirementofassets - 0.17 - (0.17)
Cost adjustments including exchange differences (6.30) (19.54) - (0.78)
Assets capitalised with retrospective effect/write back of excess capitalisation 0.08 - 0.07 -
Others (0.39) (0.22) (0.32) 0.18
(6.61) (19.59) (0.25) (0.77)

Depreciation/amortisation of Tangible and Intangible Assets for the year is allocated as given below:

Rs Crore
31.03.2013 31.03.2012
Charged to statement of profit & loss 3,396.76 2,791.70
Allocated to fuel cost 201.35 166.84
Transferred to expenditure during construction period (net) - Note 28 36.11 32.21
Transferred to development of coal mines 1.20 0.98
Adjustment with deferred income/expense from deferred foreign currency fluctuation 255.70 142.84
3,891.12 3,134.57

13. Capital work-in-progress

Asat 01.04.2012 Additions Deductions & Adjustments Capitalised As at 31.03.2013
Development of land 439.58 79.61 79.46 - 439.73
Roads, bridges, culverts & helipads 62.56 41.82 (33.11) 61.63 75.86
Piling and foundation 540.95 53.17 18.87 - 575.25
Buildings
Main plant 2,528.06 637.60 627.71 1,097.95 1,440.00
Others 498.34 391.28 66.64 210.59 612.39
Temporary erection 9.40 5.85 7.00 2.10 6.15
Water supply, drainage and sewerage system 64.55 24.64 0.38 37.06 51.75
Hydraulicworks, barrages, dams, tunnels and powerchannel 3,432.12 635.46 2.10 - 4,065.48
MGR track and signalling system 186.27 182.85 99.06 24.65 245.41
Railway sidins 218.18 121.20 (78.17) 56.60 360.95
Earth dam reservoir 43.21 13.98 2.16 5.49 49.54
Plant and equipment 30,255.47 9,309.74 (963.70) 15,734.98 24,793.93

 

Asat 01.04.2012 Additions Deductions & Adjustments Capitalised As at 31.03.2013
Furniture and fixtures 5.80 17.83 0.04 11.66 11.93
Vehicles 0.17 - (0.47) - 0.64
Office equipment 4.95 0.76 2.24 0.15 3.32
EDP/WP machines & satcom equipment 0.21 1.42 (2.11) 0.22 3.52
Construction equipments 0.07 0.01 0.07 - 0.01
Electrical installations 172.34 37.39 90.60 44.96 74.17
Communication equipment 1.74 1.24 (0.16) 0.43 2.71
Hospital equipments 0.38 - 0.23 - 0.15
Laboratory and workshop equipments 1.46 - 1.30 - 0.16
Assets under 5 KM scheme of the GO 2.24 48.67 (7.85) 0.53 58.23
Capital expenditure on assets not owned bythe company 12.04 23.21 13.67 0.91 20.67
Exploratory wells-in-progress 7.66 0.01 0.01 - 7.66
Development of coal mines 279.74 96.42 - - 376.16
38,767.49 11,724.16 (74.03) 17,289.91 33,275.77
Expenditure pending allocation
Survey, investigation, consultancy and supervision charges 95.35 15.20 10.79 - 99.76
Difference in exchange on foreign currency loans 628.68 795.23 572.55 - 851.36
Expenditure towards diversion of forest land 164.01 78.83 9.14 - 233.70
Pre-commisioning expenses (net) 190.93 180.68 344.58 - 27.03
Expenditure during construction period (net) 199.27 2,949.41* (4.42) - 3,153.10
Less: Allocated to related works - 2,656.65 - - 2,656.65
40,045.73 13,086.86 858.61 17,289.91 34,984.07
Less: Provision for unserviceable works 22.44 49.89 0.90 - 71.43
Construction stores (net of provision) 1,804.53 392.25 - - 2,196.78
Total 41,827.82 13,429.22 857.71 17,289.91 37,109.42
Previous year 35,495.30 14,322.23 1,246.43 6,743.28 41,827.82

* Brought from expenditure during construction period (net) - Note 28

a) Construction stores are net of provision for shortages pending investigation amounting to Rs 0.63 crore (previous year Rs 1.28 crore)

b) Pre-commissioning expenses for the year amount to Rs 446.98 crore (previous year Rs 549.35 crore) and after adjustment of pre-commissioning sales of Rs 266.30 crore (previous year Rs 305.11 crore) resulted in net pre-commissioning expenditure of Rs 180.68 crore (previous year Rs 244.24 crore).

c) Additions to the development of coal mines includes expenditure during construction period of Rs 96.42 crore (previous year Rs 84.69 crore).

d) Assets under 5 KM scheme of the GOI represent expenditure on electrification of villages within 5 KM periphery of the generation plants of the Company in terms ofMOP Scheme.

Asat 01.04.2012 Additions Deductions & Adjustments Capitalised As at 31.03.2013
Intangible assets under development
Software 0.04 - 0.04 - -
Total 0.04 - 0.04 - -
Previous year 0.03 0.01 - - 0.04

14. Non-current investments

As at 31.03.2013 31.03.2012
Numberof shares/bonds/ securities Currentyear/ (previousyear) Facevalue per share/bond/ security Current year/ (previous year)
( Rs )
Long term - Trade
Equity instruments (fully paid up - unless otherwise stated)
Quoted
Joint venture companies
PTC India Ltd. 12000000 10 12.00 12.00
(12000000) (10)
12.00 12.00
Unquoted
Subsidiary companies
NTPC Electric Supply Company Ltd. 80910 10 0.08 0.08
(80910) (10)
NTPCVidyutvyaparNigam Ltd. 20000000 10 20.00 20.00
(20000000) (10)
NTPC Hydro Ltd. 121359500 10 121.36 121.36
(121359500) (10)
Less: Provision for permanent diminution 8.14 8.14
113.22 113.22
Kanti Bijlee Utpadan Nigam Ltd. 357151233 10 357.15 342.74
(342738200) (10)
Bhartiya Rail Bijlee Company Ltd. 509460000 10 509.46 509.46
(509460000) (10)
999.91 985.50
Share application money pending allotment in
NTPC Hydro Ltd. 0.20 0.20
Kanti Bijlee Utpadan Nigam Ltd. 25.65 14.41
Bhartiya Rail Bijlee Company Ltd. (* Rs 39,000/-) * *
25.85 14.61
Joint venture companies
Utility Powertech Ltd. (includes 1,000,000 bonus shares) 2000000 10 1.00 1.00
(2000000) (10)
NTPC-Alstom Power Services Private Ltd. 3000000 10 3.00 3.00
(3000000) (10)
NTPC-SAIL Power Company Private Ltd. 490250050 10 490.25 475.25
(475250050) (10)
NTPC-Tamil Nadu EnergyCompany Ltd. 1143606112 10 1,143.61 844.00
(844000000) (10)
Ratnagiri Gas & Power Private Ltd. 974308300 10 974.30 776.90
(776900000) (10)
Aravali Power Company Private Ltd. 1159508200 10 1,159.51 1,089.51
(1089508200) (10)
NTPC-SCCL Global Ventures Private Ltd. 50000 10 0.05 0.05
(50000) (10)
NTPC BHEL Power Projects Private Ltd. 25000000 10 25.00 25.00
(25000000) (10)
Meja Urja Nigam Private Limited 378789800 10 378.79 107.43
(107429800) (10)
BF-NTPC Energy Systems Ltd. 5880000 10 5.88 5.88
(5880000) (10)
National Power Exchange Ltd. 2188325 10 2.19 2.19
(2188325) (10)
Less: Provision for permanent diminution 1.04 -
1.15 2.19
Nabinagar Power Generating Company Private Ltd. 153000000 10 153.00 153.00
(153000000) (10)
Transformers and Electricals Kerala Ltd. 19163438 10 31.34 31.34
(19163438) (10)
National High PowerTest Labortory Private Ltd. 11060000 10 11.06 2.62
(2625000) (10)
International Coal Ventures Private Ltd. 1400000 10 1.40 1.40
(1400000) (10)
Energy Efficiency Services Ltd. 22500000 10 22.50 0.63
(625000) (10)
CIL NTPC Urja Private Ltd. 25000 10 0.03 0.03
(25000) (10)
Anushakti Vidhyut Nigam Ltd. 49000 10 0.05 0.05
(49000) (10)
Pan-Asian Renewables Private Ltd. 500000 10 0.50 0.50
(500000) (10)
Trincomalee Power Company Ltd. 1500000 100* 6.72 6.72
(* Srilankan rupees) (1500000) (100)
4,409.14 3,526.50
Share application money pending allotment in
NTPC-Tamilnadu EnergyCompany Ltd. - 55.00
Aravali Power Company Private Ltd. (* Rs 60,000/-) 49.01 *
Meja Urja Nigam Private Ltd. 33.64 5.00
Nabinagar Power Generating Company Pvt. Ltd. 317.12 50.00
CIL NTPC Urja Private Ltd. 0.05 0.05
Energy Efficiency Services Ltd. 2.50 24.38
402.32 134.43
Cooperative societies # #
Bonds (fully-paid up)
Unquoted
8.50 % Tax-Free State Government Special Bonds of the Government of
Andhra Pradesh 2521300 1000 252.13 378.20
(3781950) (1000)
Assam 102928 1000 10.29 15.44
(154392) (1000)
Bihar 3788800 1000 378.88 568.32
(5683200) (1000)
Chattisgarh 966440 1000 96.64 144.97
(1449660) (1000)
Gujarat 1674480 1000 167.45 251.17
(2511720) (1000)
Haryana 2150000 1000 215.00 322.50
(3225000) (1000)
Himachal Pradesh 66776 1000 6.68 10.02
(100164) (1000)
Jammu and Kashmir 734720 1000 73.47 110.21
(1102080) (1000)
Jharkhand 1920256 1000 192.03 288.04
(2880376) (1000)
Kerala 2004800 1000 200.48 300.72
(3007200) (1000)
Madhya Pradesh 1661680 1000 166.17 249.25
(2492520) (1000)
Maharashtra 762800 1000 76.28 114.42
(1144200) (1000)
Orissa 2205748 1000 220.57 330.86
(3308622) (1000)
Punjab 692460 1000 69.25 103.87
(1038690) (1000)
Rajasthan 435000 1000 43.50 43.50
(435000) (1000)
Sikkim 68392 1000 6.84 10.26
(102588) (1000)
Uttar Pradesh 7979800 1000 797.98 1,196.97
(11969700) (1000)
Uttaranchal 799300 1000 79.93 119.89
(1198950) (1000)
West Bengal 2348496 1000 234.85 352.27
(3522744) (1000)
3,288.42 4,910.88
Total 9,137.64 9,583.92
Aggregate amount of quoted investments
Bookvalue 12.00 12.00
Marketvalue 71.94 73.32
Aggregate amount of unquoted investments
Bookvalue 9,125.64 9,571.92
Aggregate amount of provision for dimunition in the value of investments 9.18 8.14

# Equity shares of Rs 30,200/- (previous year Rs 30,200/-) held in various Company's employees co-operative societies.

a) Investments have been valued considering the accounting policy no.J (Note 1).

b) During the previous year, the Board of Directors of the Company has accorded in principle approval for the amalgamation of NTPC Hydro Ltd. (a wholly owned subsidiary of the Company) with the Company. Pending approval of Scheme of amalgamation, provision of Rs 8.14 crore (previous year Rs 8.14 crore)towards the permanent diminution otherthan temporary in thevalue ofinvestment in NTPC Hydro Ltd. has been made.

c) During theyear, the Board of Directors ofthe Company has accorded in principle approval for withdrawl from National Power Exchange Ltd. (a joint venture of the Company). Pending withdrawl, provision of Rs 1.04 crore (previous year Rs Nil) towards the permanent diminution other than temporary in thevalue of investment in National Power Exchange Ltd. has been made.

15. Long-term loans and advances (Considered good, unless otherwise stated)

As at 31.03.2013 31.03.2012
Capital advances
Secured 58.88 17.24
Unsecured
Covered by bankguarantee 3,775.96 1,059.69
Others 3,092.51 1,776.16
Considered doubtful 2.54 2.16
Less: Allowance for bad & doubtful advances 2.54 2.16
6,927.35 2,853.09
Security deposits (Unsecured) 82.84 84.35
Loans
Related parties
Unsecured 0.03 0.05
Employees (including accrued interest)
Secured 395.88 377.60
Unsecured 142.74 136.89
Loan to state government in settlement of dues from customers (Unsecured) 239.31 335.04
Others
Secured 14.29 21.42
Unsecured 8.86 13.43
801.11 884.43
Advances
Contractors & suppliers, including material issued on loan
Unsecured 65.58 49.86
Advance tax & tax deducted at source 11,460.19 10,116.58
Less: Provision for current tax 9,703.62 8,593.96
1,756.57 1,522.62
Total 9,633.45 5,394.35
a) Due from directors and officers of the Company
Directors 0.03 0.05
Officers 78.32 83.30
b) Loans to related parties include:
Key management personnel 0.03 0.05

c) Capital advances include Rs 226.27 crore (previousyear Rs 162.29 crore), paid toa contractor pending settlement ofcertain claims which are under arbitration. The amount will be adjusted in the cost of related work or recovered from the party, depending upon the outcome of the arbitration proceedings.

d) Capital advances include amount due from related parties Rs 0.08 crore (previous year Rs 0.08 crore)

e) Other loans represent loan of Rs 14.29 crore (previous year Rs 21.42 crore) given to Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC) and Rs 8.86 crore (previousyear Rs 13.43 crore)to Kanti Bijlee Utpadan Nigam Ltd.

15 A. Other non-current assets

As at 31.03.2013 31.03.2012
Deferred foreign currency fluctuation asset 1,132.77 1,371.88

In line with accounting policies no.L.3 disclosed in Note 1, deferred foreign currency fluctuation asset has been accounted and (-) Rs 296.96 crore (previous year Rs 129.78 crore) being exchange fluctuations on account of interest and finance charges has been recognised as energy sales in Note 22.

16. Current investments

As at 31.03.2013 31.03.2012
Number of bonds/ securities Current year/ (previous year) Face value per bond/ security Current year/ (previous year) ( Rs )
Trade
Current maturities of long term investments
Bonds (fully-paid up)
Unquoted
8.50 % Tax-Free State Government Special Bonds of the Government of
Andhra Pradesh 1260650 1000 126.07 126.07
(1260650) (1000)
Assam 51464 1000 5.15 5.15
(51464) (1000)
Bihar 1894400 1000 189.44 189.44
(1894400) (1000)
Chattisgarh 483220 1000 48.32 48.32
(483220) (1000)
Gujarat 837240 1000 83.73 83.73
(837240) (1000)
Haryana 1075000 1000 107.50 107.50
(1075000) (1000)
Himachal Pradesh 33388 1000 3.34 3.34
(33388) (1000)
Jammu and Kashmir 367360 1000 36.74 36.74
(367360) (1000)
Jharkhand 960120 1000 96.01 96.01
(960120) (1000)
Kerala 1002400 1000 100.24 100.24
(1002400) (1000)
Madhya Pradesh 830840 1000 83.08 83.08
(830840) (1000)
Maharashtra 381400 1000 38.14 38.14
(381400) (1000)
Orissa 1102874 1000 110.29 110.29
(1102874) (1000)
Punjab 346230 1000 34.62 34.62
(346230) (1000)
Sikkim 34196 1000 3.42 3.42
(34196) (1000)
Uttar Pradesh 3989900 1000 398.99 398.99
(3989900) (1000)
Uttaranchal 399650 1000 39.96 39.96
(399650) (1000)
West Bengal 1174248 1000 117.42 117.42
(1174248) (1000)
Total 1,622.46 1,622.46
Aggregate amount of unquoted investments
Book value 1,622.46 1,622.46

a) Investments have been valued considering the accounting policy no.J (Note 1).

b) The above investments are unquoted and hence market value is not applicable.

17. Inventories

As at 31.03.2013 31.03.2012
Coal 885.62 1,096.14
Fuel oil 364.99 234.65
Naphtha 146.77 119.04
Stores and spares 2,210.19 1,899.57
Chemicals & consumables 73.51 44.47
Loose tools 5.70 5.65
Steel scrap 20.96 16.54
Others 413.40 347.35
4,121.14 3,763.41
Less: Provision for shortages 1.87 1.86
Provision for obsolete/unserviceable items/
dimunition in value of surplus inventory 62.08 58.70
Total 4,057.19 3,702.85
Inventories include material-in-transit
Coal 75.02 83.15
Stores and spares 29.13 28.00
Chemicals & consumables 0.62 0.09
Loose tools 0.05 0.16
Others 2.27 1.43
107.09 112.83

a) Inventory items, other than steel scrap have been valued considering the accounting policy no.K.1 (Note 1). Steel scrap has been valued at estimated realisable value.

b) Inventories - Others includes steel, cement, ash bricks etc.

18. Trade receivables

As at 31.03.2013 31.03.2012
Outstanding for a period exceeding six months from the date they are due for payment
Unsecured, considered good 59.41 18.61
Considered doubtful 0.03 840.70
Less: Allowance for bad & doubtful receivables 0.03 840.70
59.41 18.61
Others-unsecured, considered good 5,306.08 5,813.90
Total 5,365.49 5,832.51

Refer Note no. 32 for write back of Allowance for bad and doubtful receivables.

19. Cash and bank balances

As at 31.03.2013 31.03.2012
Cash & cash equivalents
Balanceswith banks
- Current accounts 315.24 461.36
- Deposits with original maturity upto three months - 300.00
Cheques & drafts on hand 64.97 0.43
Others (stamps in hand) 0.09 0.10
Other bank balances
Deposits with original maturity of more than three months but not more than twelve months 16,469.97 15,357.98
Others' 17.43 21.96
Total 16,867.70 16,141.83
# Not available for use to the Company and include:
Unpaid dividend account balance 15.65 11.48
Balance with Reserve Bank of India * 1.77 1.77
Securitywith government authorities:
As per court orders - 0.10
As per demand 0.01 8.61
17.43 21.96

* Out of margin money keptwith Reserve Bankof India in terms of Rule 3Aofthe Companies (Acceptance of Deposits) Rules, 1975 forfixed deposits from public.

20. Short-term loans and advances (Considered good, unless otherwise stated)

As at 31.03.2013 31.03.2012
Loans
Related parties
Unsecured 0.04 0.03
Employees (including accrued interest)
Secured 76.27 69.92
Unsecured 90.86 83.12
Loan to state government in settlement of dues from customers (Unsecured) 95.73 95.73
Others
Secured 35.71 28.58
Unsecured 35.99 3.71
334.60 281.09
Advances
Related parties
Unsecured 3.40 1.64
Employees
Unsecured 8.59 9.09
Considered doubtful 0.11 0.08
Contractors & suppliers, including material issued on loan
Secured 6.71 5.60
Unsecured 533.85 821.51
Considered doubtful 1.51 1.57
Others
Unsecured 202.60 105.52
Considered doubtful 0.02 0.02
Less: Allowance for bad & doubtful advances 1.64 1.67
755.15 943.36
Security deposits (unsecured) 655.78 318.87
Total 1,745.53 1,543.32
As at 31.03.2013 31.03.2012
a) Due from Directors and Officers of the Company
Directors 0.04 0.03
Officers 27.81 25.88
b) Loans to related parties include:
Key management personnel 0.04 0.03
c) Advance to related parties include:
Jointvenure companies 2.30 1.64
d) Loans and advances include amounts due from the following private companies in which one or more Directors of the Company are Directors:
NTPC-Alstom Power Services Private Ltd. 1.33 0.33
NTPC-SAIL Power Company Private Ltd. 25.54 5.04
Aravali Power Company Private Ltd. 10.75 3.85
NTPC BHEL Power Projects Private Ltd. 0.93 1.35
Meja Urja Nigam Private Limited 4.85 2.73
Nabinagar Power Generating Company Private Ltd. 2.63 0.30
Pan-Asian Renewables Private Ltd. 0.13 0.00
Ratnagiri Gas & Power Private Ltd.* - 0.16

* Asat the Balance Sheet date, no director of the Company is a director on the Board of Ratnagiri Gas & Power Private Ltd.

e) Other loans represent loans of Rs 35.71 crore (previous year Rs 28.58 crore) given to APIIC, Rs 3.72 crore (previous year Rs 3.71 crore) to Kanti Bijlee Utpadan Nigam Ltd. and Rs 32.27 crore (previous year Rs Nil) to NTPC Hydro Ltd.

f) Other advances mainly represent prepaid expenses amounting to Rs 57.89 crore (previous year Rs 54.49 crore).

g) Securitydeposit(unsecured) includes Rs 200.35 crore (previousyear Rs 163.46 crore) salestaxdeposited underprotestwith sales tax authorities.

21. Other current assets

As at 31.03.2013 31.03.2012
Interest accrued on
Bonds 243.19 312.14
Term deposits 824.34 775.60
Others 23.95 18.56
1,091.48 1,106.30
Claims recoverable
Unsecured, considered good 4,779.87 1,822.51
Considered doubtful 13.05 13.31
Less: Allowance fordoubtful claims 13.05 13.31
4,779.87 1,822.51
Unbilled revenue 5,624.27 5,616.10
Assets held for disposal 2.96 2.00
Others 10.13 6.49
Total 11,508.71 8,553.40

a) Others include amount recoverable from contractors and other parties towards hire charges, rent/electricity, etc.

b) Claims recoverables include Rs 894.72 crore (previous year Rs 766.12 crore) towards the cost incurred upto 31st March 2013 in respect of one of the hydro power projects, the construction of which has been discontinued on the advice ofthe Ministry of Power, GOI. This includes Rs 109.65 crore (previous year Rs Nil) in respect of two arbitration awards challenged/being challenged by the Company before High Court. In the event the High Court grants relief to the Company, the amount would be adjusted against Short Term Provisions - Others (Note 11). Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence no provision is considered necessary.

c) Claims recoverable includes Rs 2,520.08 crore (previous year Rs Nil) recoverable from Government of National Capital Territory of Delhi (GNCTD) towards settlement of dues of erstwhile Delhi Electric Supply Undertaking (DESU). (Refere Note 32).

d) Unbilled revenue is net of credits to be passed to beneficiaries at the time of billing and includes Rs 6,005.41 crore (previous year Rs 5,411.93 crore) billed to the beneficiaries after 31st March for energy sales.

22. Revenue from operations (gross)

For the year ended 31.03.2013 31.03.2012
Energy sales (including electricity duty) 64,715.88 61,430.85
Consultancy, project management and supervision fees (including turnkey construction projects) 126.81 142.69
64,842.69 61,573.54
Energy internally consumed 76.73 80.75
Other operating revenues
Interest from customers 432.60 510.57
Recognized from deferred foreign currency fluctuation liability 3.52 0.16
Provisions written back
Tariff adjustments - 312.75
Doubtful debts 840.67 0.14
Doubtful loans, advances and claims 0.33 0.14
Doubtful construction advances - 0.03
Shortage in construction stores 0.58 0.34
Shortage in stores 0.57 1.08
Obsolescence in stores 1.26 1.02
Unserviceable capital works 0.90 -
Shortages in fixed assets 0.39 0.36
844.70 315.86
Total 66,200.24 62,480.88

a) The Central Electricity Regulatory Commission (CERC) notified the Tariff Regulations, 2009 in January 2009, and First, Second and Third Amendments thereto in May 2011, June 2011 and December 2012 respectively (Regulations, 2009). In line with the Regulations, 2009, the CERC has issued provisional/final tariff orders w.e.f. 1st April 2009 for all the stations except for Talcher Thermal Power Station OTPS). Beneficiaries are billed in accordance with the said provisional/final tariff orders except for three stations where it is done on provisional basis. The amount billed for the year ended 31st March 2013 on this basis is Rs 61,794.68 crore (previous year Rs 59,965.57 crore).

b) In respect of stations for which the CERC has issued final tariff orders under the Regulations, 2009 and Renewable Energy Regulations, 2009, sales have been recognised at Rs 54,588.81 crore forthe year ended 3151 March 2013 (previous year Rs 55,537.41 crore) after truing up capital expenditure to arrive at the capacity charges. For other stations, pending determination of station-wise final tariff by the CERC, sales have been provisionally recognized at Rs 8,059.66 crore for the year ended 31st March 2013 (previous year Rs 5,145.38 crore) on the basis of principles enunciated in the said Regulations, 2009 after truing up capital expenditure to arrive at the capacity charges.

c) Sales include Rs 1,241.90 crore for the year ended 31a March 2013 (previous year Rs 547.78 crore) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

d) The Company aggrieved over many of the issues as considered by the CERC in the tariff orders for its stations for the period 2004-09 had filed appeals with the APTEL. The APTEL disposed off the appeals favourably directing the CERC to revise the tariff orders as per directions and methodology given. Some of the issues decided in favour of the Company by the APTEL were challenged by the CERC in the Hon'ble Supreme Court of India. Subsequently, the CERC has issued revised tariff orders for all the stations except one for the period 2004-09, considering the judgment of APTEL subject to disposal of appeals pending before the Hon'ble Supreme Court of India. Consequently, the impact ofthe aforesaid issues amounting to (-) Rs 45.95 crore has been recognized as sales during theyear ended 3151 March 2013 (previous year (-) Rs 49.16 crore) with corresponding adjustment in 'Provision forTariffAdjustmenf.

e) Sales include Rs 246.04 crore for the year ended 31a March 2013 (previous year (-) Rs 266.14 crore) on account of income-tax recoverable from the beneficiaries as per Regulations, 2004. Sales also include Rs 53.16 crore for the year ended 31st March 2013 (previous year Rs 37.77 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2009.

f) Electricity duty on energy sales amounting to Rs 526.31 crore (previous year Rs 428.65 crore) has been reduced from sales in the statement of profit and loss.

g) Revenue from operations include Rs 76.73 crore (previous year Rs 80.75 crore) towards energy internally consumed, valued at variable cost of generation and the corresponding amount is included in power charges (Note-26).

h) CERC Regulations provides that where afterthe truing-up, the tariff recovered is less/more than the tariff approved by the Commission, the generating Company shall recover/pay from/to the beneficiaries the under/over recovered amount along-with simple interest Accordingly, the interest recoverable from the beneficiaries amounting to Rs 432.60 crore (previous year Rs 510.57 crore) has been accounted and disclosed as 'Interest from customers'. Further, the amount payable to the beneficiaries has been accounted as 'Interest payable to customers' and disclosed in Note 26.

i) Refer Note -32 in respect of write back of provision for doubtful debts.

23. Other income

For the year ended 31.03.2013 31.03.2012
Interest from
Long-term investments - Government securities (8.5% tax free bonds) 520.86 659.38
Others
Loan to state government in settlement of dues from customers 34.58 42.72
Loan to subsidiary companies 2.37 3.03
Loan to employees 28.84 25.31
Contractors 36.25 32.88
Deposits with banks 1,839.30 1,602.52
Income tax refunds 39.41 99.89
Less: Refundable to customers 0.02 34.47
39.39 65.42
Others 8.22 12.02
Dividend from
Long-term investments in
Subsidiaries 25.00 19.00
Jointventures 103.66 60.16
Current investments in
Mutual funds 112.66 90.14
Other non-operating income
Surcharge received from customers 87.75 1.16
Hire charges for equipment 4.28 3.23
Net gain in foreign currency transactions & translations 27.90 61.25
Sale of scrap 89.06 80.08
Liquidated damages recovered 11.82 7.13
Miscellaneous income 200.06 115.30
Profit on disposal of fixed assets 4.62 13.28
3,176.62 2,894.01
Less: Transferred to expenditure during construction period (net) - Note 28 38.84 40.16
Transferred to development of coal mines 8.30 2.95
Transferred to deferred foreign currency fluctuation asset/liability 27.90 61.25
Total 3,101.58 2,789.65

Miscellaneous income includes income from township recoveries and receipts towards insurance claims.

24. Employee benefits expense

For the year ended 31.03.2013 31.03.2012
Salariesandwages 3,402.23 3,171.52
Contribution to provident and other funds 372.41 298.81
Staffwelfare expenses 355.00 297.58
4,129.64 3,767.91
Less: Allocated to fuel cost 193.58 166.32
Transferred to development of coal mines 34.31 32.00
Transferred to expenditure during construction period (net)- Note 28 541.63 467.88
Total 3,360.12 3,101.71

a) Disclosures required byAS15 in respect of provision made towards various employees benefits are made in Note 38.

b) Salary and wages include field compensatory allowance paid by the Company to eligible employees serving in difficult and far flung areas w.e.f. 1st January2007. As perthe OfficeMemorandum dated 26th November2008 of DPE relating to revision of payscalesw.e.f 1st Januar/2007, special allowance can be paid to such employees upto10% of basic pay as approved by concerned administrative ministry. In consultation with the DPE, the Company is in the process of formulating a scheme in this regard and the same shall be forwarded to MOP after approval of the Board.

25. Finance costs

For the year ended 31.03.2013 31.03.2012
Interest on
Bonds 900.87 831.50
Foreign currency term loans 235.33 205.71
Rupee term loans 2,753.01 2,335.70
Public deposits 0.16 1.24
Foreign currency bonds/notes 345.91 184.32
Others 73.14 60.99
4,308.42 3,619.46
Other borrowing costs
Bonds servicing & public deposit expenses 2.38 2.18
Guarantee fee 39.84 37.67
Management fee 36.24 10.97
Foreign currency bonds/notes expenses 6.05 17.10
Up-front fee - 15.31
Insurance premium on foreign currency loans 27.39 -
Others 2.67 0.95
114.57 84.18
Exchange differences regarded as an adjustment to interest costs (350.21) 350.21
4,072.78 4,053.85
Less: Transferred to expenditure during construction period (net) - Note 28 2,101.90 2,308.47
Transferred to development of coal mines 46.52 33.74
Total 1,924.36 1,711.64

26. Generation, administration & other expenses

For the year ended 31.03.2013 31.03.2012
Power charges 172.89 224.33
Less: Recovered from contractors & employees 18.47 17.73
154.42 206.60
Water charges 488.67 329.59
Stores consumed 46.35 45.24
Rent 28.38 26.33
Less: Recoveries 7.83 8.13
20.55 18.20
Load dispatch centre charges 41.66 42.93
Repairs & maintenance
Buildings 170.91 146.00
Plant & machinery
Power stations 1,781.36 1,528.51
Construction equipment 1.09 0.73
1,782.45 1,529.24
Others 105.91 93.67
Insurance 104.62 97.29
Interest payable to customers 5.72 (67.57)
Rates and taxes 33.54 23.84
Water cess & environment protection cess 35.44 25.50
Training & recruitment expenses 63.07 72.70
Less: Fees for application and training 1.56 1.31
61.51 71.39

 

For the year ended 31.03.2013 31.03.2012
Communication expenses 43.88 37.75
Travelling expenses 182.66 171.35
Tender expenses 21.46 21.71
Less: Receipt from sale of tenders 2.96 2.22
18.50 19.49
Payment to auditors 3.01 2.74
Advertisementand publicity 13.31 12.23
Security expenses 327.23 290.96
Entertainment expenses 13.88 13.16
Expenses for guest house 18.94 16.40
Less: Recoveries 2.67 2.18
16.27 14.22
Education expenses 9.31 10.02
Brokerage & commission 2.79 2.60
Community development and welfare expenses 84.79 58.32
Less: Grants-in-aid 0.39 0.24
84.40 58.08
Donation 0.14 (0.10)
Ash utilisation & marketing expenses 5.20 4.22
Less: Sale of ash products 0.04 0.06
5.16 4.16
Directors sitting fee 0.30 0.25
Books and periodicals 2.65 1.94
Professional charges and consultancy fees 28.40 30.19
Legal expenses 27.12 15.27
EDP hire and other charges 14.53 14.41
Printing and stationery 12.36 11.56
Oil & gas exploration expenses 8.78 14.34
Hiring ofvehicles 55.23 47.08
Rebate to customers 521.71 632.87
Reimbursement of L.C.charges on sales realisation 0.60 4.10
Bank charges 2.93 2.95
Net loss in foreign currency transactions & translations 5.07 35.31
Miscellaneous expenses 106.25 95.67
Stores written off 0.14 0.15
Survey & investigation expenses written off 2.37 7.05
Loss on disposal/write-off of fixed assets 59.91 58.40
4,620.64 4,170.12
Less: Allocated to fuel cost 281.84 236.11
Transferred to development of coal mines 13.62 12.92
Transferred to deferred foreign currency fluctuation asset/liability 1.51 15.65
Transferred to expenditure during construction period (net) - Note 28 318.70 381.83
4,004.97 3,523.61
Provisions for
Tariff adjustments 103.24 -
Diminution in value of long term investments in subsidiary company - 8.14
Diminution invalue of longterm investments injointventure 1.04 -
Doubtful loans, advances and claims 0.09 0.05
Shortage in stores 1.34 0.88

 

For the year ended 31.03.2013 31.03.2012
Obsolescence in stores 4.66 10.39
Shortage in construction stores 0.13 0.26
Unserviceable capital work-in-progress 49.89 3.54
Unfinished minimum work programme for oil and gas exploration 5.08 41.19
Shortages in fixed assets 0.27 0.73
Others 40.51 -
206.25 65.18
Total 4,211.22 3,588.79
a) Spares consumption included in repairs and maintenance 1,006.61 834.50
b) Details in respect of payment to auditors:
As auditor
Audit fee 1.00 0.85
Tax audit fee 0.35 0.30
Limited review 0.60 0.52
In other capacity
Other services (certification fees) 0.35 0.33
Reimbursement of expenses 0.40 0.53
Reimbursement of service tax 0.31 0.21
Total 3.01 2.74

Payment to the auditors includes Rs 0.24 crore (previous year Rs 0.13 crore) relating to earlier year.

c) CERC Regulations provides that where after the truing-up, the tariff recovered is more than the tariff approved by the Commission, the generating Company shall pay to the beneficiaries the over recovered amount along-with simple interest. Accordingly, the interest payable to the beneficiaries amounting to Rs 5.72 crore (previous year (-) Rs 67.57 crore) has been accounted and disclosed as 'Interest payable to customers'.

27. Prior period items (net)

For the year ended 31.03.2013 31.03.2012
Revenue
Sales (0.03) 9.00
Others 1.88 0.81
1.85 9.81
Expenditure
Employee benefits expense (5.13) (322.05)
Finance costs:
Interest (12.00) (0.61)
Other borrowing costs (7.91) -
Depreciation and amortisation (0.25) (1.35)
Generation, administration and other expenses
Repairs and maintenance 0.39 (0.21)
Professional consultancy charges 0.14 -
Communication expenses 0.04 0.04
Advertisement and publicity 0.12 -
Rates & taxes (0.07) 0.09
Rent (0.33) 0.90
Others (12.96) (1.43)
(37.96) (324.62)
Net expenditure/(revenue) (39.81) (334.43)
Less: Transferred to expenditure during construction period (net)-Note 28 (10.09) (19.01)
Transferred to Development of coal mines - (1.84)
Total (29.72) - (313.58)

28. Expenditure during construction period (net)

For the year ended 31.03.2013 31.03.2012
A. Employee benefits expense
Salaries and wages 470.39 410.83
Contribution to provident and other funds 38.81 32.11
Staff welfare expenses 32.43 24.94
Total (A) 541.63 467.88
B. Finance costs
Interest on
Bonds 390.47 467.08
Foreign currency term loans 94.88 99.93
Rupee term loans 1,486.58 1,397.01
Foreign currency bonds/notes 222.88 104.91
Other borrowing costs
Foreign currency bonds/notes expenses 5.54 10.47
Management/arrangers/upfront fee 36.24 20.77
Others 50.56 23.05
Exchange differences regarded as an adjustment to interest costs (185.25) 185.25
Total (B) 2,101.90 2,308.47
C. Depreciation and amortisation 36.11 32.21
D. Generation, administration & other expenses
Power charges 100.59 155.21
Less: Recovered from contractors & employees 1.60 1.76
98.99 153.45
Water charges 10.76 47.77
Rent 5.27 4.21
Repairs & maintenance
Buildings 6.81 7.18
Construction equipment 0.74 0.37
Others 22.73 14.58
30.28 22.13
Insurance 1.48 1.23
Rates and taxes 0.84 2.40
Communication expenses 5.56 5.04
Travelling expenses 35.33 32.32
Tender expenses 5.78 4.46
Less: Income from sale of tenders 0.06 0.08
5.72 4.38
Advertisement and publicity 1.49 0.85
Security expenses 43.82 39.38
Entertainment expenses 2.30 2.46
Guest house expenses 4.13 3.18
Education expenses 0.01 0.02
Books and periodicals 0.91 0.35
Community development expenses 7.46 2.59
Professional charges and consultancy fee 6.35 7.97
Legal expenses 5.15 1.94
EDP hire and other charges 1.22 1.20
Printing and stationery 1.17 1.28
Miscellaneous expenses 50.46 47.68
Total (D) 318.70 381.83
E. Less: Other income
Hire charges 3.70 2.76
Sale of scrap - 0.11
Interest from contractors 22.34 29.09
Interest others 0.87 0.60
Miscellaneous income 11.93 7.60
Total (E) 38.84 40.16
F. Prior period items (net) (10.09) (19.01)
Grand total (A+B+C+D-E+F) 2,949.41* 3,131.22
* Carried to capital work-in-progress - (Note 13)

29. Previous year figures have been regrouped /rearranged wherever considered necessary.

30. Amount in the financial statements are presented in Rs crore (upto two decimals) except for per share data and as other-wise stated. Certain amounts, which do not appear due to rounding off, are disclosed separately.

31. a) Some ofthe balances of trade/other payables and loans and advances are subject to confirmation/reconciliation. Adjustments, if any will be

accounted foron confirmation/reconciliation ofthe same, which in the opinion ofthe managementwill not have a material impact.

b) In the opinion of the management, the value of assets, other than fixed assets and non-current investments, on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

32. Government of India, Ministry of Power vide its letters F.No.6/1/2007-Fin.(Vol.VIII) dated 5th February 2013 and 29th March 2013 directed Government of National Capital Territory of Delhi (GNCTD) to release payment towards settlement of dues of erstwhile Delhi Electric Supply Undertaking (DESU) amounting to Rs 835.97 crore as principal and Rs 1,684.11 crore as interest to the company. Consequently, provision for doubtful debt of Rs 835.97 crore has been written back (Note 22) and interest of Rs 1,684.11 crore has been recognised as an exceptional item in the Statement of Profit and Loss during the year.

33. Vide gazette notification Fno.22021/1/2008-CRC/ll dated 30.12.2011 issued by Ministry of Coal (MoC), grading and pricing of non-coking coal was migrated from Useful Heat Value (UHV) to Gross Calorific Value (GCV) based system w.e.f. 1st January 2012. The Coal Supply Agreements (CSAs) entered into by the Company were required to be amended to incorporate acceptable procedures for sample collection, preparation, testing and analysis, to facilitate such migration, which are still pending. The Company's Board of Directors approved payments to the coal companies based on the GCV based pricing system, and directed to frame modalities for implementation of GCV based grading system. Accordingly, modalities were framed to effect joint sampling and testing of coal at mine end/station end and future payments to coal companies. The above modalities were communicated to the coal companies w.e.f. October/ November 2012, thereafter the Company released payments on the basis of GCV measured at station end following the implementation of the said modalities since variation in the GCV of coal supplied and received at power stations was noticed. The Company regularly informed coal companies about this variation which has not been accepted by them. The issue has been taken up with the coal companies directly and through the MoP and MoC, GOI for resolution. Pending resolution of the issue, difference between the amount billed by the coal companies and the amounts admitted by the company is disclosed as contingent liability with corresponding possible reimbursements from the beneficiaries (Refer Note-50).

34. The levy of transit fee/entry tax on supplies of fuel to some of the power stations has been paid under protest as the matters are subjudice at various courts. In case the Company gets refund/demand from fuel suppliers/tax authorities on settlement of these cases, the same will be passed on to respective beneficiaries.

35. Disclosure as per Accounting Standard - 5 'Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies'

i) Ministry of Corporate Affairs, Government of India through Circular no. 25/2012 dated 9th August 2012 has clarified that para 6 of Accounting Standard (AS) 11 and para 4 (e) of AS 16 shall not apply to a Company which is applying para 46-A of AS 11. Accordingly, Company has modifed the related accounting policies. Consequently, exchange differences arising on settlement/translation of foreign currency loans to the extent regarded as an adjustment to interest costs as per para 4 (e) of AS 16 and hitherto charged to Statement of Profit and Loss, have now been adjusted in the cost of related assets. As a result, profit for the year ended 31st March 2013 is higher by Rs 14.80 crore, fixed assets are higher by Rs 173.56 crore and Deferred Income from Foreign Currency Fluctuation is higher by Rs 158.76 crore.

ii) During the year, the Company reviewed its policy for accounting of carpet coal which was hitherto charged to the Statement of Profit and Loss and capitalised the cost of carpet coal with the coal handling plant. Consequently, tangible assets and profit for the year are higher by Rs 20.36 crore.

iii) During the year, the Company has reviewed and modifed the accounting policy related to amortisation of other intangible assets to bring more clarity. However, this does not have any impact on accounts fortheyear.

36. Disclosure as per Accounting Standard - 11 on 'Effects of Changes in Foreign Exchange Rates'

The effect of foreign exchange fluctuation during the year is as under:

i) The amount of exchange differences (net) debited to the statement of profit & loss is Rs 3.56 crore (previous year Rs 19.66 crore).

ii) The amount of exchange differences (net) debited to the carrying amount of fixed assets is Rs 1,056.01 crore (previous year Rs 1,661.21 crore).

37. Disclosure as per Accounting Standard - 12 on 'Accounting for Government Grants'

Revenue grants recognised during the year is Rs 0.39 crore (previous year Rs 0.24 crore).

38. Disclosure as per Accounting Standard - 15 on 'Employee Benefits'

General description ofvarious employee benefit schemes are as under:

A. Provident Fund

Company pays fixed contribution to provident fund at predetermined rates to a separate trust, which invests the funds in permitted securities. Contribution to family pension scheme is paid to the appropriate authorities. The contribution of Rs 192.88 crore (previousyear Rs 173.46 crore) to the funds for the year is recognised as expense and is charged to the statement of profit and loss. The obligation of the Company is to make such fixed contribution and to ensure a minimum rate of return to the members as specified by GOI. As per report ofthe actuary, overall interest earnings and cumulative surplus is more than the statutory interest payment requirement. Hence, no further provision is considered necessary. The details offairvalue of plan assets and obligitions are as under:

Particulars 31.03.2013 31.03.2012
Obligitions at the end of the year 4,755.00 4,118.35
Fairvalue of plan assets at the end oftheyear 4,812.77 4,183.86

B. Gratuity & Pension

The Company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity at 15 days salary (15/26 X last drawn basic salary plus dearness allowance) for each completed year of service subject to a maximum of Rs 0.10 crore on superannuation, resignation, termination, disablement or on death.

The Company has a scheme of pension at one of the stations in respect of employees taken over from erstwhile state government power utility. In respect of other employees of the Company, pension scheme is yet to be implemented as stated in Note 11.

The existing schemes are funded by the Company and are managed by separate trusts. The liability for the same is recognised on the basis of actuarial valuation.

C. Post-Retirement Medical Facility (PRMF)

The Company has Post-Retirement Medical Facility (PRMF), under which a retired employee and his / her spouse are provided medical facilities in the Company hospitals/empanelled hospitals. They can also avail treatment as out-patient subject to a ceiling fixed by the Company. The liability for the same is recognised on the basis of actuarial valuation.

D. Terminal Benefits

Terminal benefits include settlement at home town for employees & dependents and farewell gift to the superannuating employees. Further, the Company also provides for pension in respect of employees taken over from erstwhile State Government Power Utility at another station. The liability for the same is recognised on the basis of actuarial valuation.

E. Leave

The Company provides for earned leave benefit (including compensated absences) and half-pay leave to the employees of the Company which accrue annually at 30 days and 20 days respectively. 73.33 % of the earned leave is en-cashable while in service, and upto a maximum of 300 days on separation. Half-pay leave is en-cashable only on separation beyond the age of 50 years up to the maximum of 240 days (HPL). However, total amount of leave that can be encashed on superannuation shall be restricted to 300 days and no commutation of half-pay leave shall be permissible. The liability for the same is recognised on the basis of actuarial valuation.

The above mentioned schemes (C, D and E) are unfunded and are recognised on the basis of actuarial valuation.

The summarised position ofvarious defined benefits recognised in the statement of profit and loss, balance sheet are as under:

(Figures given in {) are for previous year)

i) Expenses recognised in Statement of Profit & Loss

Gratuity/ Pension PRMF Leave Terminal Benefits
Current service cost 65.23 13.81 50.12 5.55
(59.02) (11.03) (41.87) (4.98)
Interest cost on benefit obligation 103.11 29.56 59.17 18.35
(100.75) (26.49) (55.40) (16.35)
Expected return on plan assets (92.84) - - -
((82.34)] (-1 (-1 (-1
Net actuarial (gain)/ loss recognised in the year 48.14 51.03 184.16 30.21
(0.97) (29.34) (87.25) (25.94)
Expenses transferred to capital work-in-progress 5.94 3.72 8.24 -
(6.68) (3.60) (18.01) (-)
Expenses recognised in the statement of profit & loss 117.70 90.68 285.21 54.11
(71.72) (63.26) (166.51) (47.27)
Actual return on plan assets 102.20 - - -
(94.63) (-) (-) (-)

ii) The amount recognised in the Balance Sheet

Gratuity/ Pension PRMF Leave Terminal Benefits
Present value of obligation as at 31.03.2013 1,433.87 451.06 853.42 271.85
(1,288.86) (369.49) (739.57) (229.34)
Fairvalue of plan assets as at 31.03.2013 1,256.05 - - -
(1,162.97) (-) (-) (-)
Net liability recognised in the balance sheet 177.82 451.06 853.42 271.85
(125.89) (369.49) (739.57) (229.34)
Rs Crore

iii) Changes in the present value of the defined benefit obligations

Gratuity/ Pension PRMF Leave Terminal Benefits
Present value of obligation as at 01.04.2012 1,288.86 369.49 739.57 229.34
(1,185.28) (311.67) (651.90) (192.29)
Interest cost 103.11 29.56 59.17 18.35
(100.75) (26.49) (55.40) (16.35)
Current service cost 65.23 13.81 50.12 5.55
(59.02) (11.03) (41.87) (4.98)
Benefits paid (80.84) (12.83) (179.60) (11.60)
((69.45)) ((9.04)) ((96.85)) ((10.22))
Net actuarial (gain)/ loss on obligation 57.51 51.03 184.16 30.21
(13.26) (29.34) (87.25) (25.94)
Presentvalue ofthe defined benefit obligation as at 31.03.2013 1,433.87 451.06 853.42 271.85
(1,288.86) (369.49) (739.57) (229.34)

iv) Changes in the fair value of plan assets:

Gratuity/ Pension PRMF Leave Terminal Benefits
Fairvalue of plan assets as at 01.04.2012 1,162.97 - - -
(1,031.68) (-) (-) (-)
Expected return on plan assets 92.84
(82.34) (-) (-) (-)
Contributions by employer 67.22
(102.32) (-) (-) (-)
Benefit paid (76.35)
((65.66)) (-) (-) (-)
Net actuarial gain/(loss) 9.37
(12.29) (-) (-) (-)
Fairvalue of plan assets as at 31.03.2013 1,256.05
(1,162.97) (-) (-) (-)

v) Other disclosures:

Gratuity/Pension 31.03.2013 31.03.2012 31.03.2011 31.03.2010 31.03.2009
Present value of obligation as at the end of 1433.87 1288.86 1185.28 1065.02 1040.99
Fairvalue of plan assets as at the end of 1256.05 1162.97 1031.68 987.14 535.94
Surplus/(Deficit) (177.82) (125.89) (153.60) (77.88) (505.05)
Experience adjustment on plan liabilities (loss)/gain (50.04) (18.87) (59.49) 10.13 (21.04)
Experience adjustment on plan assets (loss)/gain 9.37 12.29 5.10 25.12 4.61
PRMF 31.03.2013 31.03.2012 31.03.2011 31.03.2010 31.03.2009
Present value of obligation as at the end of 451.06 369.49 311.67 244.39 213.29
Experience adjustment on plan liabilities (loss)/gain (19.53) (30.60) (33.27) (12.65) (4.24)
Rs Crore
Leave 31.03.2013 31.03.2012 31.03.2011 31.03.2010 31.03.2009
Present value of obligation as at the end of 853.42 739.57 651.90 585.07 647.94
Experience adjustment on plan liabilities (loss)/gain (180.46) (89.90) (87.83) (37.25) (107.16)
Rs Crore
Terminal Benefits 31.03.2013 31.03.2012 31.03.2011 31.03.2010 31.03.2009
Present value of obligation as at the end of 271.85 229.34 192.29 167.47 125.51
Experience adjustment on plan liabilities (loss)/gain (25.49) (24.38) (23.95) (36.68) (16.94)

vi) The effect of one percentage point increase/decrease in the medical cost of PRMF will be as under:

Increase by Decrease by
Service and interest cost 5.72 (6.27)
Present value of obligation 73.42 (60.22)
F. Details of the Plan Assets
The details ofthe plan assets at cost are: Rs Crore
31.03.2013 31.03.2012
i) State government securities 337.46 273.43
ii) Central government securities 331.27 330.85
iii) Corporate bonds/debentures 465.84 417.27
iv) Money market instruments 7.50 5.97
v) Investment with insurance companies 76.34 104.34
vi) Fixed deposits with banks 5.16 5.44
Total 1,223.57 1,137.30

The amounts included in the value of plan assets in respect of the reporting enterprise's own financial instruments is Rs 25.00 crore (previous year Rs 25.00 crore).

G. Actual return on plan assets Rs 102.20 crore (previous year Rs 94.63 crore).

H. Other Employee Benefits

Provision for long service award and family economic rehabilitation scheme amounting to Rs 3.36 crore (previous year Rs 4.85 crore) for the year have been made on the basis of actuarial valuation at the year end and debited to the statement of profit & loss.

I. Actuarial Assumptions

Principal assumptions used for actuarial valuation fortheyear ended are:

31.03.2013 31.03.2012
i) Method used

Projected Unit Credit Method

ii) Discount rate 8.00% 8.50%
iii) Expected rate of return on assets:
- Gratuity 8.00% 8.00%
- Pension 7.00% 7.00%
iv) Annual increase in costs 6.00% 6.00%
v) Future salary increase 6.00% 6.00%

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Further, the expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of asset management and historical returns from plan assets.

J. The Company's bestestimate ofthe contribution towardsgratuity/pension forthe financial year2013-14 is Rs 44.81 crore.

39. Disclosure as per Accounting Standard - 16 on 'Borrowing Costs'

Borrowing costs capitalised during the year are Rs 2,148.14 crore (previous year Rs 2,342.21 crore).

40. Disclosure as per Accounting Standard - 17 on 'Segment Reporting'

Segment information:

a) Business segments

The Company's principal business is generation and sale of bulk powerto State Power Utilities. Other business includes providing consultancy, project management and supervision, oil and gas exploration and coal mining.

b) Segment revenue and expense

Revenue directly attributable to the segments is considered as 'Segment Revenue'. Expenses directly attributable to the segments and common expenses allocated on a reasonable basis are considered as 'Segment Expenses'.

c) Segmentassetsand liabilities

Segment assets include all operating assets in respective segments comprising of net fixed assets and current assets, loans and advances. Construction work-in-progress, construction stores and advances are included in unallocated corporate and other assets. Segment liabilities include operating liabilities and provisions.

Business Segments

Generation

Others

Total

Current year Previous year Current year Previous year Current year Previous year
Revenue:
Sale ofenergy/consultancy, project management and supervision fees * 64,189.57 61,002.20 126.81 142.69 64,316.38 61,144.89
Otherincome** 3,347.88 1,113.31 1.65 3.36 3,349.53 1,116.67
Total 67,537.45 62,115.51 128.46 146.05 67,665.91 62,261.56
Segment result # 16,645.05 12,300.36 16.14 (19.46) 16,661.19 12,280.90
Unallocated corporate interest and other income 2,793.71 2,580.32
Unallocated corporate expenses, interest and finance charges 2,876.27 2,535.06
Profit before tax 16,578.63 12,326.16
Income tax(net) 3,959.24 3,102.43
Profit after tax 12,619.39 9,223.73

 

Business Segments

Generation

Others

Total

Current year Previous year Current year Previous year Current year Previous year
Other information
Segment assets 81,719.33 64,642.77 340.02 220.52 82,059.35 64,863.29
Unallocated corporate and other assets 79,057.11 75,967.45
Total assets 81,719.33 64,642.77 340.02 220.52 161,116.46 140,830.74
Segment liabilities 10,715.15 8,235.50 295.06 167.53 11,010.21 8,403.03
Unallocated corporate and other liabilities 69,718.74 59,136.54
Total liabilities 10,715.15 8,235.50 295.06 167.53 80,728.95 67,539.57
Depreciation (including prior period) 3,358.94 2,753.31 0.24 0.17 3,359.18 2,753.48
Non-cash expenses other than depreciation 169.63 15.29 5.08 41.19 174.71 56.48
Capital expenditure 18,629.53 14,513.32 596.89 289.85 19,226.42 14,803.17

* Includes Rs 1,487.94 crore (previous year Rs 281.64 crore) for sales related to earlier years.

** Generation segment includes Rs 1,684.11 crore (previous year Nil) towards exceptional items (Refer Note no.32).

# Generation segment result would have been Rs 15,157.11 crore (previous year Rs 12,018.72 crore) without including the sales related to earlier years.

d) The operations of the Company are mainly carried out within the country and therefore, geographical segments are inapplicable.

41. Disclosure as per Accounting Standard - 18 on 'Related Party Disclosures'

a) Related parties:

i) Joint ventures:

Utility Powertech Ltd., NTPC-Alstom Power Services Private Ltd., BF-NTPC Energy Systems Ltd., Pan-Asian Renewables Private Ltd., Trincomalee Power Company Ltd. and Bangladesh -India Friendship Power Company Private Ltd.

ii) Key Management Personnel:

Shri Arup Roy Choudhury Chairman and Managing Director
Shri A.K. Singhal Director (Finance)
Shri I.J. Kapoor Director (Commercial)
Shri.B.P.Singh Director (Projects)
Shri D.K. Jain Director (Technical)1
Shri S.P.Singh Director (Human Resources)2
Shri N.N.Mishra Director (Operations)
Shri A.K.Jha Director (Technical)3
Shri U.P.Pani Director (Human Resources)4

1. Superannuated on 30th June 2012 2. Superannuated on 28th February 2013 3. W.e.f. 1st July 2012 4. W.e.f. 1st March 2013 b) Transactions with the related parties at a (i) above are as follows:

Particulars Current year Previous year
i) Transactions during the year
• Contracts for works/services for services received by the Company:
- Utility Powertech Ltd. 393.14 335.47
- NTPC-Alstom Power Services Private Ltd. 6.19 10.10
• Deputation of Employees:
- Utility Powertech Ltd. 0.51 0.13
- NTPC-Alstom Power Services Private Ltd 1.23 0.82
- Trincomalee Power Company Limited 0.82 0.15
- Pan-Asian Renewables Private Ltd. 0.13 -
ii) Dividend Received:
- Utility Powertech Ltd. 4.00 3.00
- NTPC-Alstom Power Services Private Ltd. 0.36 0.30
iii) Amount recoverable for contracts for works/services received:
- Utility Powertech Ltd. 0.22 0.94
- NTPC-Alstom Power Services Private Ltd 0.04 0.04
iv) Amount payable for contracts for works/services received:
- Utility Powertech Ltd. 64.27 48.83
- NTPC-Alstom Power Services Private Ltd 7.86 10.44
v) Amount recoverable on account of deputation of employees:
- Utility Powertech Ltd. 0.66 0.30
- NTPC-Alstom Power Services Private Ltd 1.32 0.33
- Trincomalee Power Company Limited 0.97 0.15
- Pan-Asian Renewables Private Ltd. 0.13

-

The Company has received bank guarantees from Utility Powertech Ltd. for an amount of Rs 6.35 crore (previous year Rs 4.18 crore).

c) Remuneration to key management personnel for the year is Rs 3.59 crore (previous year Rs 2.79 crore) and amount of dues outstanding to the Company as on 31st March 2013 are Rs 0.07 crore (previous year Rs 0.08 crore).

Managerial remuneration to Key management personnel 31.03.2013 31.03.2012
Shri Arup Roy Choudhury 0.54 0.35
Shri A.K. Singhal 0.55 0.47
Shri I.J. Kapoor 0.45 0.43
Shri.B.P.Singh 0.52 0.45
Shri D.K. Jain 0.38 0.42
Shri S.P.Singh 0.43 0.31
Shri N.N.Misra 0.44 0.36
Shri A.KJha 0.26 -
Shri U.P.Pani 0.02 -
Total 3.59 2.79

42. Disclosure as per Accounting Standard - 19 on 'Leases'

a) Finance leases

The Company has taken on lease certain vehicles and has the option to purchase the vehicles as per terms of the lease agreements, details of which are as under:

31.03.2013 31.03.2012
a) Obligations towards minimum lease payments
• Notlaterthanoneyear 0.24 0.48
• Later than one year and not later than five years 0.05 0.22
• Later than five years - -
Total 0.29 0.70
b) Present value of (a) above
• Notlaterthanoneyear 0.22 0.43
• Later than one year and not later than five years 0.05 0.21
• Later than five years - -
Total 0.27 0.64
c) Finance charges 0.02 0.06

b) Operating leases

The Company's significant leasing arrangements are in respect of operating leases of premises for residential use of employees, offices and guest houses/transit camps for a period of one to two years. These leasing arrangements are usually renewable on mutually agreed terms but are not non-cancellable. Note -24 - Employee benefits expense includes Rs 76.38 crore (previous year Rs 75.68 crore) towards lease payments (net of recoveries) in respect of premises for residential use of employees. Lease payments in respect of premises for offices and guest house/transit camps are included under 'Rent' in Note -26 - 'Generation, administration and other expenses'. Further, the Company has taken a helicopter on wet lease basis for a period of eleven years and the amount of lease charges is included in 'Miscellaneous expenses' in Note - 26.

43. Disclosure as per Accounting Standard - 20 on 'Earnings Per Share'

The elements considered for calculation of earning per share (Basic and Diluted) are as under:

Current year Previous year
Net profit after tax used as numerator - Rs crore 12,619.39 9,223.73
Weighted average number of equity shares used as denominator 8,24,54,64,400 8,24,54,64,400
Earning per share (Basic and Diluted) - Rs 15.30 11.19
Nominal value per share - Rs 10/- 10/-

44. Disclosure as per Accounting Standard - 26 on 'Intangible Assets'

Research expenditure charged to revenue during the year is Rs 91.85 crore (previous year Rs 29.89 crore).

45. Disclosure as per Accounting Standard - 27 on 'Financial Reporting of Interest in Joint Ventures'

a) Joint Venture Entities:

Company

Proportion of ownership interest as on (excluding share application money)

31.03.2013 31.03.2012
(%) (%)
A. Joint Ventures incorporated in India
1. Utility Powertech Ltd. 50.00 50.00
2. NTPC - Alstom Power Services Private Ltd. 50.00 50.00
3, NTPC-SAIL Power Company Private Ltd.* 50.00 50.00
4. NTPC -Tamilnadu Energy Company Ltd. 50.00 50.00
5. Ratnagiri Gas and Power Private Ltd.* 33.41 31.52
6. Aravali Power Company Private Ltd. 50.00 50.00
7. NTPC - SCCL Global Ventures Private Ltd.* 50.00 50.00
8. Meja Urja Nigam Private Ltd. 50.00 50.00
9. NTPC - BHEL Power Projects Private Ltd.* 50.00 50.00
10. BF - NTPC Energy Systems Ltd.* 49.00 49.00
11. Nabinagar Power Generating Company Private Ltd. 50.00 50.00
12. National Power Exchange Ltd.* 16.67 16.67
13. International Coal Ventures Private. Ltd.* 14.28 14.28
14. National High Power Test Laboratory Private Ltd. 20.00 25.00
15. Transformers & Electricals Kerala Ltd. 44.60 44.60
16. Energy Efficiency Services Ltd.* 25.00 25.00
17. CIL NTPC Urja Private Ltd.* 50.00 50.00
18. Anushakti Vidyut Nigam Ltd.* 49.00 49.00
19. Pan-Asian Renewables Private Ltd.* 50.00 50.00
B. Joint Ventures incorporated outside India
1. Trincomalee Power Company Ltd.* (incorporated in Sri Lanka) 50.00 50.00
2. Bangladesh -India Friendship Power Company Private Ltd.1 (incorporated in Bangladesh) 50.00 -

* The accounts are unaudited

$ No investment has been made as at 31st March 2013. Further, there were no financial transactions during the year.

The Company's share of the assets, liabilities, contingent liabilities and capital commitment as at 31st March 2013 and income and expenses for the year in respect of joint venture entities based on audited/unaudited accounts are given below:

31.03.2013 31.03.2012
A. Assets
• Long term assets 14,424.69 12,314.73
• Current assets 1,961.71 1,978.68
Total 16,386.40 14,293.41
B. Liabilities
• Longterm liabilities 8,879.94 8,085.19
• Current liabilities and provisions 2,218.80 1,940.20
Total 11,098.74 10,025.39
C. Contingent liabilities 117.90 78.09
D. Capital commitments 6,800.18 1,848.88
Current year Previous year
E. Income 3,638.71 3,659.89
F. Expenses 3,477.21 3,022.44

b) Joint venture operations:

i) The Company along-with some public sector undertakings has entered into Production Sharing Contracts (PSCs) with GOI for three exploration blocks namely KG- OSN-2009/1, KG-OSN-2009/4 and AN-DWN-2009/13 under VIII round of New Exploration Licensing Policy (NELP VIII) with 10% participating interest (PI) in each of the blocks.

Based on the un-audited statement of the accounts for the above blocks forwarded by M/s Oil & Natural Gas Corporation Ltd., the operator, the Company's share in respect of assets and liabilities as at 31st March 2013 and expenditure for the year are given below:

Item 2012-13 2011-12
(Un-audited) (Un-audited)
Expenses 2.28 3.61
Assets 0.06 0.03
Liabilities 1.43 0.95
Capital commitments (Unfinished MWP) 91.49 88.48

It is also informed that exploration activities in block KG-OSN-2009/4 has been suspended w.e.f. 11.01.2012 due to non clearance by Defence Ministry, GOI. Further in case of AN-DWN 2009/13, GSPC has submitted notice of withdrawal from the block subsequent to completion of minimum work programme and ONGC has decided to acquire 10% participating interest of GSPC.

ii) Exploration activities in the block AA-ONN-2003/2 were abandoned in January 2011 due to unforeseen geological conditions & withdrawal of the operator. Attempts to reconstitute the consortium to accomplish the residual exploratory activities did not yield result. In the meanwhile, Ministry of Petroleum & Natural Gas demanded in January 2011 the cost of unfinished minimum work programme from the consortium with NTPC's share being USD 7.516 million. During the year provision in this respect has been updated to Rs 46.27 crore from Rs 41.19 crore along with interest in the previous year. The Company has sought waiver of the claim citing force majeure conditions at site leading to discontinuation of exploratory activities.

The Company has accounted for expenditure of Rs 0.09 crore for the year 2012-13 towards the establishment expenses of M/s Geopetrol International, the operator to complete the winding up activities of the Block. The Company's share in the assets and liabilities as at 31st March 2013 and expenditure for the year is as under:

Item 2012-13 2011-12
(Un-audited) (Un-audited)
Expenses 0.22 0.18
Assets 14.64 14.64
Liabilities 2.32 2.10
Contingent liabilities 41.42 67.57

46. Disclosure as per Accounting Standard - 28 on 'Impairment of Assets'

As required by Accounting Standard (AS) 28 'Impairment of Assets' notified under the Companies (Accounting Standards) Rules, 2006, the Company has carried out the assessment of impairment of assets. Based on such assessment, there has been no impairment loss during the year.

47. Foreign currency exposure not hedged by a derivative instrument or otherwise:

Particulars Currencies

Amount in Foreign Currency (Crore)

Amount ( Rs Crore)

31.03.2013 31.03.2012 31.03.2013 31.03.2012
Borrowings, including interest accrued but not due thereon. USD 252.41 204.13 13,859.96 10,538.98
JPY 4904.08 5337.26 2,872.81 3,378.49
EURO 12.22 6.12 860.17 423.42
USD 20.55 22.63 1,128.52 1,168.53
Trade payables/deposits and retention monies EURO 7.60 11.37 535.15 786.62
Others 35.76 30.64 23.98 34.96
Trade receivables and Bank balances USD 0.01 0.02 0.78 0.82
Others 0.50 - 0.30 -
Unexecuted amount of contracts remaining to be executed USD 96.13 39.37 5,278.73 2,033.53
EURO 65.79 20.75 4,632.92 1,435.51
Others 899.21 34.55 612.84 51.55

The Company has formulated an Exchange Risk Management Policy with effect from 1st October 2012. In terms of the requirements of the said Policy and guidelines of the Reserve Bank of India, the Company is currently negotiating International Swaps and Derivatives Association (ISDA) agreements with Authorised Dealer banks. No derivative transactions have been undertaken during the year pending finalisation of ISDA agreements with the banks.

48. Information in respect of micro and small enterprises as at 31st March 2013 as required by Micro, Small and Medium Enterprises Development Act, 2006

Particulars Amount
a) Amount remaining unpaid to any supplier:
Principal amount 17.55
Interestdue thereon 0.02
b) Amount of interest paid in terms of section 16 of theMSMED Act along-with the amount paid to the suppliers beyond the appointed day. -
c) Amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed dayduringtheyear) butwithoutaddingthe interestspecified undertheMSMEDAct. (* Rs 73,985/-) *
d) Amount of interest accrued and remaining unpaid (* Rs 73,985/-) *
e) Amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprises, for the purpose of disallowances as a deductible expenditure under section 23 of MSMED Act

49. Disclosure as required by Clause 32 of Listing Agreements:

A. Loans and Advances in the nature of Loans:

1. ToSubsidiaryCompanies

Name of the company

Outstanding balance as at

Maximum amount outstanding

31.03.2013 31.03.2012 31.03.2013 31.03.2012
Kanti Bijlee Utpadan Nigam Ltd. 12.57 17.14 17.14 21.71
NTPC Hydro Ltd. 32.27 - 32.27 -
Total 44.84 17.14 49.41 21.71

 

2. To Firms/companies in which directors are interested : Nil
3. Where there is no repayment schedule or repayment beyond seven year or no interest or interest as per Section 372A of the Companies Act, 1956 : Rs 44.84 crore
B. Investment by the loanee (as detailed above) in the shares of NTPC : Mil

50. Contingent Liabilities:

a) Claims against the company not acknowledged as debts in respect of:

(i) Capital Works

Some of the contractors for supply and installation of equipments and execution of works at our projects have lodged claims on the Company for Rs 3,966.11 crore (previousyear Rs 4,427.27 crore) seeking enhancement of the contract price, revision of work schedule with price escalation, compensation for the extended period of work, idle charges etc. These claims are being contested by the Company as being not admissible in terms ofthe provisions of the respective contracts.

The Company is pursuing various options under the dispute resolution mechanism available in the contracts for settlement of these claims. It is not practicable to make a realistic estimate of the outflow of resources if any, for settlement of such claims pending resolution.

(ii) Land compensation cases

In respect of land acquired for the projects, the land losers have claimed higher compensation before various authorities/courts which areyetto be settled. In such cases, contingent liability of Rs 747.54 crore (previousyear Rs 1,173.58 crore) has been estimated.

(iii) Fuel Suppliers

Pending resolution ofthe issues with coal companies as disclosed in Note 33, payments and accounting of coal are being made based on GCV ascertained at station end. The difference between the amount billed by the coal companies and the payment released by the companyamountsto Rs 2,531.10 crore (previousyear Rs Nil).

Further, an amount of Rs 367.73 crore (previous year Rs 400.63 crore) towards surface transportation charges, customs duty on service margin on imported coal etc. has been disputed bythe Company.

(iv) Others

In respect of claims made by various State/Central Government departments/Authorities towards building permission fee, penalty on diversion of agricultural land to non-agricultural use, nala tax, water royalty etc. and by others, contingent liability of Rs 862.81 crore (previous year Rs 877.47 crore) has been estimated.

(v) Possible Reimbursement

The contingent liabilities referred to in (i) above, include an amount of Rs 961.24 crore (previous year Rs 1,769.70 crore) relating to the hydro power project stated in Note 21 b) - Other current assets, for which Company envisages possible reimbursement from GOI in full. In respect of balance claims included in (i) and in respect of the claims mentioned at (ii) above, payments, if any, bythe company on settlement of the claims would be eligible for inclusion in the capital cost for the purpose of determination of tariff as per CERC Regulations subject to prudence check bythe CERC. In case of (iii), the estimated possible reimbursement is by way of recovery through tariff as per Regulations, 2009 is Rs 2,792.06 crore (previous year Rs 283.45 crore).

b) Disputed Income Tax/Sales Tax/Excise Matters

Disputed Income Tax/Sales Tax/Excise matters pending before various Appellate Authorities amount to Rs 1,547.61 crore (previous year Rs 3,038.63 crore). Many of these matters were disposed off in favour of the Company but are disputed before higher authorities by the concerned departments. In such cases, the company estimate possible reimbursement of Rs 365.19 crore (previous year Rs 2,111.54 crore).

c) Others

Other contingent liabilities amount to Rs 252.20 crore (previous year Rs 316.93 crore).

Some of the beneficiaries have filed appeals against the tariff orders of the CERC The amount of contingent liability in this regard is not ascertainable.

51. Capital and other commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March 2013 is Rs 48,905.56 crore (previous year Rs 29,563.89 crore).

b) In respect of investments of Rs 3,850.15 crore (previous year Rs 2,895.97 crore) in the joint venture entities, the Company has restrictions for their disposal ranging from two years to fifteen years from the date of incorporation/allottment of shares/commercial operation ofthe projects as the case may be.

c) In respect of investments of Rs 892.26 crore (previous year Rs 866.61 crore) in the subsidiary Companies, the Company has restrictions for their disposal for five years from the date of commercial operation of the respective project

d) As at 31st March 2013, the Company has commitments of Rs 4,041.86 crore (previous year Rs 3,236.96 crore) towards further investment in thejointventure entities.

e) As at 31st March 2013, the Company has commitments of Rs 1,393.67 crore (previous year Rs 1,419.32 crore) towards further investment in the subsidiary companies.

f) Company's commitment towards the minimum work programme in respect of oil exploration activity of Cambay Block (100% owned by the company) is Rs 183.45 crore (USD 33.73 million) (previousyear Rs 182.84 crore, USD 35.41 million).

g) Company's comittment towards the minimum work programme in respect oil exploration activities of joint venture operations has been disclosed in Note-45.

h) Company's commitment in respect of further commitments relating to lease agreements has been disclosed in Note - 42.

52. Other disclosures as per Schedule VI of the Companies Act, 1956

Particulars Current year Previous year
a) Value of imports calculated on OF basis:
Capital goods 1,009.05 880.34
Spare parts 124.44 190.09
b) Expenditure in foreign currency:
Professional and consultancy fee 4.16 7.07
Interest 625.38 390.03
Others 5.52 14.44

 

c) Value of components, stores and spare parts consumed (including fuel):

Current year

Previous year

%age Amount %age Amount
Imported 10.86 4,570.55 18.69 7,942.77
Indigenous 89.14 37,500.66 81.31 34,572.43

 

Current year Previous year
d) Earnings in foreign exchange:
Professional & consultancy fees 2.15 2.48
Others 0.10 0.28

 

For and on behalf of the Board of Directors
(A. K. Rastogi) (A. K. Singhal) (Arup Roy Choudhury)
Company Secretary Director (Finance) Chairman & Managing Director
These are the notes referred to in Balance Sheet and Statement of Profit and Loss
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
FirmReg.No.109208W FirmReg. No.001770C Firm Reg. No. 002744C
(M. S. Balachandran) (Monika Agrawal) (Anil Gaur)
Partner Partner Partner
M No. 024282 M No. 093769 MNo.017546

Place : New Delhi

Dated :10th May2013

   
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