We have audited the accompanying Standalone Financial Statements of NTPC Limited ("The Company"), which comprisethe Balance Sheet as at 31 March 2025, the Statement of Profit and Loss (including Other Comprehensive Income), theStatement of Changes in Equity and the Statement of Cash Flows for the year then ended and notes to the StandaloneFinancial Statements, including a summary of the material accounting policies and other explanatory information for theyear ended on that date (hereinafter referred to as "Standalone Financial Statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid StandaloneFinancial Statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act readwith the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principlesgenerally accepted in India, of the state of affairs (financial position) of the Company as at 31 March, 2025, and its profit(financial performance including other comprehensive income), changes in equity and its cash flows for the year endedon that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act.Our responsibilities under those Standards are further described in the Auditors' Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Company in accordance with the Codeof Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevantto our audit of the Standalone Financial Statements under the provisions of the Act and the Rules made thereunder, andwe have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We draw attention to the following matter in the notes to the Standalone Financial Statements:
(a) Note No 2 (g) with respect to execution of Business Transfer Agreement (BTA) dated 17 August 2023 with NTPCMining Limited, a wholly owned subsidiary of the company, for hiving off its coal mining business at book value. TheBTA has only been approved by the Board of Directors of the company and subsidiary company, which shall becomeeffective on completion of the precedent conditions as mentioned in the said BTA.
Our opinion is not modified in respect of the aforesaid matter.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theStandalone Financial Statements of the current period. These matters were addressed in the context of our audit ofthe Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separateopinion on these matters. For each matter below, description of how our audit addressed the matter is provided in thatcontext. We have determined the matters described below to be the key audit matters to be communicated in our report.
S. No.
Key Audit Matters
How our audit addressed the Key Audit Matters
1.
Recognition and Measurement of revenue from Sale ofEnergy
The company records revenue from sale of energy as
We have obtained an understanding of the CERC Tariff
per the principles enunciated under Ind AS 115, based
Regulations, orders, circulars, guidelines and the
on tariff approved by the Central Electricity Regulatory
Company's internal circulars and procedures in respect
Commission (CERC) as modified by the orders of
of recognition and measurement of revenue from sale
Appellate Authorities. Pending issue of provisional/final
of energy comprising of capacity and energy charges and
tariff order w.e.f. 01 April 2024 capacity charges has been
adopted the following audit procedures:
provisionally recognised considering the applicable CERC
- Evaluated and tested the effectiveness of the
Tariff Regulations 2024.
Company's design of internal controls relating to
This is considered as key audit matter due to the nature
recognition and measurement of revenue from sale
and extent of estimates made as per the CERC Tariff
of energy.
Regulations, which leads to recognition and measurement
- Examined the Company's material accounting
of revenue from sale of energy being complex andjudgemental.
policies with respect to assessing compliance with
Ind AS 115 "Revenue from Contract with Customers".
(Refer Note No. 39 to the Standalone Financial Statements,
- Verified the accounting of revenue from sale of
read with the Material Accounting Policy No.C.13)
energy based on provisional/ final tariff computedas per the principles of CERC Tariff Regulations 2024.
- Assessed the disclosures in accordance with therequirements of Ind AS 115 "Revenue from Contractwith Customers".
Based on the above procedures performed, therecognition, measurement and disclosures of revenuefrom sale of energy are considered to be adequate andreasonable.
2.
Impairment assessment of Property, Plant andEquipment (PPE)
The Company has a material operational asset base
We have obtained an understanding and tested the design
(PPE) relating to generation of electricity and is one of
and operating effectiveness of controls as established by
the components for determining the tariff as per the
the Company's management for impairment assessment
CERC Tariff Regulations, which may be vulnerable to
of PPE.
impairment.
We evaluated the Company's process of impairment
We considered this as a key audit matter as the carrying
assessment in assessing the appropriateness of
value of PPE requires impairment assessment based on
the impairment model including the independent
the future expected cash flows associated with the power
assessment of discount rate, economic growth rate,
plants (Cash generating units).
terminal value etc.
(Refer Note No. 60(a) to the Standalone Financial
We evaluated and checked the calculations of the cash
Statements, read with the Material Accounting Policy No.
flow forecasts prepared by the Company taking into
C.1 and C.17)
consideration the CERC (Terms and Conditions of Tariff)Regulations, 2024 (applicable for the tariff period of 5years from 1 April 2024 to 31 March 2029) along withthe aforementioned assumptions.
Based on the above procedures performed, we observedthat the Company's impairment assessment of the PPE isadequate and reasonable.
3.
Deferred Tax Asset relating to MAT Credit Entitlement
The company has recognised deferred tax asset relatingto MAT credit entitlement. Utilisation of MAT credit willresult in lower outflow of Income Tax in future years.
We have obtained an understanding for recognition ofdeferred tax asset relating to MAT credit entitlementincluding the management's judgement.
The recoverability of this deferred tax asset relating to MATcredit entitlement is dependent upon the generation ofsufficient future taxable profits to utilise such entitlementwithin the stipulated period prescribed under the IncomeTax Act, 1961. The company has commenced utilisation ofMAT credit from Financial Year 2024-25.
We identified this as a key audit matter because of theimportance of this matter to the intended users of theStandalone Financial Statements and its materiality;and requirement of judgement in forecasting futuretaxable profits for recognition of MAT credit entitlementconsidering the recoverability of such tax credits withinallowed time frame as per the provisions of the IncomeTax Act, 1961.
We further assessed the related forecasts of futuretaxable profits and evaluated the reasonableness of theconsiderations /assumptions underlying the preparationof these forecasts.
Based on the above procedures performed, therecognition and measurement of Deferred tax assetrelating to MAT credit entitlement, is consideredadequate and reasonable.
(Refer Note No. 29 & 53 to the Standalone FinancialStatements, read with the Material Accounting Policy No.C.15)
4.
Contingent Liabilities
There are a number of litigations pending before variousforums against the Company and the management'sjudgement is required for estimating the amount to bedisclosed as contingent liability.
We have obtained an understanding of the Company'sinternal instructions and procedures in respect ofestimation and disclosure of contingent liabilities andadopted the following audit procedures:
We identified this as a key audit matter because theestimates on which these amounts are based involvea significant degree of management judgementin interpreting the cases and it may be subject tomanagement bias.
(Refer Note No. 73(A) to the Standalone FinancialStatements, read with the Material Accounting Policy No.
- understood and tested the design and operatingeffectiveness of controls as established by themanagement for obtaining all relevant informationfor pending litigation cases;
- discussed with the management regarding anymaterial developments thereto and latest status oflegal matters;
C.11)
- read variouscorrespondencesand related documentspertaining to litigation cases and relevant externallegal opinions obtained by the management andperformed substantive procedures on calculationssupporting the disclosure of contingent liabilities;
- examined management's judgements andassessments in respect of whether provisions arerequired;
- considered the management assessments ofthose matters that are not disclosed as contingentliability since the probability of material outflow isconsidered to be remote;
- reviewed the appropriateness and adequacy ofrecognition and disclosures as required in terms ofthe requirement of Ind AS 37;
Based on the above procedures performed, theestimation and disclosures of contingent liabilities areconsidered to be adequate and reasonable.
The Company's Board of Directors is responsible for the preparation of the other information. The other informationcomprises the Corporate Governance Report, and the information included in the Directors' Report including Annexures,Management Discussion and Analysis, Business Responsibility and Sustainability Report and other company relatedinformation (but does not include the Consolidated Financial Statements and Standalone Financial Statements and ourauditors' report thereon), which are expected to be made available to us after the date of this auditors' report.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not and will notexpress any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other informationidentified above when it becomes available and, in doing so, consider whether the other information is materiallyinconsistent with the Standalone Financial Statements or our knowledge obtained in the audit, or otherwise appears tobe materially misstated.
When we read other information, if we conclude that there is a material misstatement therein, we are required tocommunicate the matter to those charged with governance and take appropriate actions, if required.
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to thepreparation and presentation of these Standalone Financial Statements that give a true and fair view of the financialposition, financial performance, total comprehensive income, changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS)prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended.This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of theAct for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent;and design, implementation and maintenance of adequate internal financial controls, that were operating effectively forensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of theStandalone Financial Statements, that give a true and fair view and are free from material misstatement, whether due tofraud or error.
In preparing the Standalone Financial Statements, management is responsible for assessing the Company's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basisof accounting unless management either intends to liquidate the Company or to cease operations, or has no realisticalternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financial reporting process.
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions ofusers taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinionon whether the company has adequate Internal Financial Controls system in place and the operating effectiveness ofsuch controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relateddisclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we arerequired to draw attention in our auditors' report to the related disclosures in the Standalone Financial Statements or,if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtainedup to the date of our auditors' report. However, future events or conditions may cause the Company to cease tocontinue as a going concern.
• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including thedisclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in amanner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timingof the audit and significant audit findings, including any significant deficiencies in internal control that we identifyduring our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the Standalone Financial Statements of the current period and are therefore the key auditmatters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure aboutthe matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the Central Governmentof India in terms of Section 143(11) of the Act, and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanations given to us, we give in"Annexure 1" a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable.
2. We are enclosing our report in terms of Section 143(5) of the Act, on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information and explanations given tous, in the "Annexure 2" on the directions issued by the Comptroller and Auditor General of India.
3. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appearsfrom our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statementof Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with thebooks of account.
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standardsprescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015as amended.
(e) Being a Government Company pursuant to the Notification No. GSR 463(E) dated 5 June 2015 issued by theMinistry of Corporate Affairs, Government of India, provisions of sub-section (2) of Section 164 of the Act, arenot applicable to the Company.
(f) With respect to the adequacy of the Internal Financial Controls with reference to the Standalone FinancialStatement of the Company and the operating effectiveness of such controls, refer to our separate report in"Annexure 3". Our report expresses an opinion on the adequacy and operating effectiveness of the Company'sinternal financial controls over financial reporting.
(g) As per Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Governmentof India, Section 197 of the Act is not applicable to the Government Companies. Accordingly, reporting inaccordance with requirement of provisions of section 197(16) of the Act is not applicable on the Company.
(h) With respect to the other matters to be included in the Auditors' Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our informationand according to the explanations given to us:
I. The Company has disclosed the impact of pending litigations on its financial position in its StandaloneFinancial Statements. Refer Note No. 73(A) to the Standalone Financial Statements;
II. The Company has made provision, as required under the applicable law or Indian accounting standards,for material foreseeable losses, if any, on long-term contracts including derivative contracts.
III. There has been no delay in transferring unclaimed amount of dividend, however, there has been somedelay in transferring of unclaimed equity shares related thereto, required to be transferred, to theInvestor Education and Protection Fund by the Company.
IV. (a) The Management has represented that, to the best of its knowledge and belief, as disclosed in the
note no. 74(xvi) to the Standalone Financial Statements , no funds have been advanced or loanedor invested (either from borrowed funds or share premium or any other sources or kind of funds) bythe Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"),with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,directly or indirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or thelike on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief, as disclosed inthe note no. 74(xvi) to the Standalone Financial Statements , no funds have been received by theCompany from any person(s) or entity(ies), including foreign entities ("Funding Parties"), withthe understanding, whether recorded in writing or otherwise, that the Company shall, directly orindirectly, lend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the likeon behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and appropriatein the circumstances, nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above,contain any material misstatement.
V. As stated in Note 23 (c) to the Standalone Financial Statements:
(a) The final dividend proposed for the previous year, declared and paid by the Company during the yearis in accordance with Section 123 of the Act, as applicable.
(b) Interim dividend declared and paid by the Company during the year is in accordance with Section123 of the Act.
(c) The Board of Directors of the Company has proposed final dividend for the year which is subjectto the approval of the members at the ensuing Annual General Meeting. The amount of dividendproposed is in accordance with Section 123 of the Act to the extent it applies to declaration ofdividend.
VI. Based on our examination, which included test checks, the Company has used accounting software formaintaining its books of account for the financial year ended 31 March, 2025 which have a feature ofrecording audit trail (edit log) facility and the same has operated throughout the year for all relevanttransactions recorded in the software. Further, during the course of our audit we did not come acrossany instance of the audit trail feature being tampered with and the audit trail has been preserved by thecompany as per the statutory requirements for record retention.
For Vinod Kumar & Associates For Goyal Parul & Co. For M. C. Bhandari & Co.
Chartered Accountants Chartered Accountants Chartered Accountants
FRN-002304N FRN-016750N FRN-303002E
Mukesh Dadhich Parul Goyal Amit Biswas
Partner Partner Partner
M. No.511741 M. No.099172 M. No.052296
UDIN:25511741BMLIZP5056 UDIN:25099172BMHVOF5859 UDIN:25052296BMNXGE4786
For J K S S & Associates For Agasti & Associates For S.N. Kapur & Associates
FRN-006836C FRN-313043E FRN-001545C
Ram Babu B. Agasti Suyash SN.Kapur
M. No.016151 M. No.051026 M. No.403528
UUDIN:25016151BMOGZS1505 UDIN:25051026BMOSES7676 UDIN:25403528BMKPZZ1609
Place : New DelhiDated : 24 May 2025
Digitally signed by signatories