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AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH 2011
(Rs./Lakh)| Sl. | Particulars | Stand Alone | Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| Quarter ended 31.03.2011 (Unaudited) | Quarter ended 31.03.2010 (Unaudited) | Year ended 31.3.2011 (Audited) | Year ended 31.3.2010 (Audited) | Year ended 31.3.2011 (Audited) | Year ended 31.3.2010 (Audited) | |||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
| 1 | (a) | Net Sales (Net of Electricity Duty) | 1551894 | 1235339 | 5487400 | 4632259 | 5741846 | 4825645 |
| (b) | Other Operating Income | 45867 | 37815 | 164524 | 189873 | 171566 | 193224 | |
| (c) | Depreciation Written Back (net) & Advance Against Depreciation recognised as Prior Period Sales | 191 | (1360) | 184054 | (1655) | 189821 | (2542) | |
| Total (a+b+c) | 1597952 | 1271794 | 5835978 | 4820477 | 6103233 | 5016327 | ||
| 2 | Expenditure | |||||||
| (a) | Fuel Cost | 972556 | 834598 | 3537378 | 2946274 | 3641435 | 3018766 | |
| (b) | Employees Cost | 70819 | 74561 | 278971 | 241236 | 292226 | 252309 | |
| (c) | Depreciation | 69814 | 73216 | 248569 | 265006 | 271969 | 289438 | |
| (d) | Other Expenditure | 98247 | 57316 | 284783 | 199965 | 341212 | 243333 | |
| (e) | Provisions | 28398 | 930 | 155215 | 1090 | 155277 | 1235 | |
| Total (a+b+c+d+e) | 1239834 | 1040621 | 4504916 | 3653571 | 4702119 | 3805081 | ||
| 3 | Profit from Operations before Other Income, Interest & Exceptional Items (1-2) | 358118 | 231173 | 1331062 | 1166906 | 1401114 | 1211246 | |
| 4 | Other Income | 20556 | 24950 | 88806 | 102533 | 87406 | 101483 | |
| 5 | Profit before Interest & Exceptional Items (3+4) | 378674 | 256123 | 1419868 | 1269439 | 1488520 | 1312729 | |
| 6 | Interest & Finance charges | 52995 | 48179 | 214908 | 180893 | 249287 | 207818 | |
| 7 | Profit after Interest but before Exceptional Items (5-6) | 325679 | 207944 | 1204960 | 1088546 | 1239233 | 1104911 | |
| 8 | Exceptional items | - | - | - | - | - | - | |
| 9 | Profit(+)/Loss(-) from Ordinary Activities before Tax (7+8) | 325679 | 207944 | 1204960 | 1088546 | 1239233 | 1104911 | |
| 10 | Tax Expenses: | |||||||
| (a) | Current Tax | 61632 | (9762) | 255332 | 194544 | 260216 | 197908 | |
| (b) | Deferred Tax | (14137) | 15941 | 39369 | 20913 | 44194 | 22963 | |
| (c) | Fringe Benefit Tax (FBT) | - | - | - | 269 | 0 | 270 | |
| Total (a+b+c) | 47495 | 6179 | 294701 | 215726 | 304410 | 221141 | ||
| Less: FBT transferred to Expenditure during Construction / Development of coal mines | - | - | - | - | - | (5) | ||
| Tax Expenses (Net) | 47495 | 6179 | 294701 | 215726 | 304410 | 221146 | ||
| 11 | Net Profit(+)/ Loss(-) from ordinary activity after tax (9-10) | 278184 | 201765 | 910259 | 872820 | 934823 | 883765 | |
| 12 | Extraordinary Items (Net of tax expenses) | - | - | - | - | - | - | |
| 13 | Net Profit(+)/ Loss(-) for the year before Minority Interest (11-12) | 278184 | 201765 | 910259 | 872820 | 934823 | 883765 | |
| 14 | Minority Interest in Consolidated Profit | - | - | - | - | (517) | (3) | |
| 15 | Net Profit (+)/ Loss (-) for the year after Minority Interest (13-14) | 278184 | 201765 | 910259 | 872820 | 935340 | 883768 | |
| 16 | Paid-up Equity Share Capital (Face value of share Rs. 10/- each) | 824546 | 824546 | 824546 | 824546 | 824546 | 824546 | |
| 17 | Paid-up Debt Capital | 4318824 | 3779702 | |||||
| 18 | Reserves excluding revaluation reserve as per Balance Sheet | 5964679 | 5419196 | 6013910 | 5437182 | |||
| 19 | Debenture Redemption Reserve | 223166 | 198672 | |||||
| 20 | Earning per share - (EPS in Rs.) | |||||||
| (a) | Basic and diluted EPS before Extra-ordinary items (not annualised) | 3.37 | 2.45 | 11.04 | 10.59 | 11.34 | 10.72 | |
| (b) | Basic and diluted EPS after Extra-ordinary items (not annualised) | 3.37 | 2.45 | 11.04 | 10.59 | 11.34 | 10.72 | |
| 21 | Debt Equity Ratio | 0.64 | 0.61 | |||||
| 22 | Debt Service Coverage Ratio (DSCR) | 2.57 | 3.92 | |||||
| 23 | Interest Service Coverage Ratio (ISCR) | 11.42 | 13.64 | |||||
| 24 | Public Shareholding | |||||||
| (a) | Number of shares | 1278103220 | 1278103220 | 1278103220 | 1278103220 | 1278103220 | 1278103220 | |
| (b) | %age of share holding | 15.50 | 15.50 | 15.50 | 15.50 | 15.50 | 15.50 | |
| 25 | Promoters and Promoter Group Shareholding | |||||||
| (a) | Pledged/ Encumbered | |||||||
| - | Number of Shares | - | - | - | - | - | - | |
| - | Percentage of share (as % of the total shareholding of promoter and promoter group) | - | - | - | - | - | - | |
| - | Percentage of share (as % of the total share capital of the company) | - | - | - | - | - | - | |
| (b) | Non-encumbered | |||||||
| - | Number of Shares | 6967361180 | 6967361180 | 6967361180 | 6967361180 | 6967361180 | 6967361180 | |
| - | Percentage of share (as % of the total shareholding of promoter and promoter group) | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| - | Percentage of share (as % of the total share capital of the company) | 84.50% | 84.50% | 84.50% | 84.50% | 84.50% | 84.50% | |
SUMMARY OF ASSETS AND LIABILITIES AS AT 31st MARCH 2011
| Particulars | Stand Alone | Consolidated | ||
| Year ended 31.03.2011 (Audited) | Year ended 31.03.2010 (Audited) | Year ended 31.03.2011 (Audited) | Year ended 31.03.2010 (Audited) | |
| SOURCES OF FUNDS | ||||
| Shareholders’ Funds: | ||||
| (a) Capital | 824546 | 824546 | 824546 | 824546 |
| (b) Reserves and Surplus | 5964679 | 5419196 | 6013910 | 5437182 |
| Deferred Revenue from Advance Against Depreciation | 79205 | 161084 | 79205 | 161084 |
| Deferred Income from Foreign Currency Fluctuation | 6243 | - | 6243 | - |
| Ash Utilisation Fund | - | - | 5896 | 1062 |
| Loan Funds | ||||
| (a) Secured Loans | 991068 | 907992 | 1742640 | 1537643 |
| (b) Unsecured Loans | 3327756 | 2871710 | 3332843 | 2877210 |
| Deferred Foreign Exchange Fluctuation Liability | 9654 | 6105 | 9667 | 6105 |
| Deferred Tax Liability (net) after Recoverable | 60295 | 20925 | 67165 | 22971 |
| Minority Interest | - | - | 48505 | 27896 |
| TOTAL | 11263446 | 10211558 | 12130620 | 10895699 |
| APPLICATION OF FUNDS | ||||
| Goodwill on Consolidation | - | - | 62 | 62 |
| Fixed Assets incl. CWIP and Construction Stores & Advances | 7750659 | 6686560 | 8971821 | 7648619 |
| Investments | 1234484 | 1480709 | 835733 | 1177761 |
| Deferred Foreign Currency Fluctuation Assets | 45915 | 36517 | 45915 | 36525 |
| Current Assets, Loans And Advances | ||||
| (a) Inventories | 363912 | 334771 | 391083 | 353296 |
| (b) Sundry Debtors | 792431 | 665146 | 839987 | 708081 |
| (c) Cash and Bank balances | 1618526 | 1445948 | 1785983 | 1605301 |
| (d) Other current assets | 104697 | 84404 | 107158 | 86802 |
| (e) Loans and Advances | 660113 | 551311 | 680321 | 568069 |
| Less: Current Liabilities and Provisions | ||||
| (a) Liabilities | 1032048 | 768758 | 1243876 | 975792 |
| (b) Provisions | 275243 | 307058 | 283567 | 315033 |
| Net Current Assets | 2232388 | 2005764 | 2277089 | 2030724 |
| Deferred Expenses from Foreign Currency Fluctuation | - | 2008 | - | 2008 |
| TOTAL | 11263446 | 10211558 | 12130620 | 10895699 |
AUDITED SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE YEAR ENDED 31st March 2011
| Sl. | Particulars | Stand Alone | Consolidated | ||||
|---|---|---|---|---|---|---|---|
| Quarter ended 31.03.2011 (Unaudited) | Quarter ended 31.03.2010 (Unaudited) | Year ended 31.03.2011 (Audited) | Year ended 31.03.2010 (Audited) | Year ended 31.03.2011 (Audited) | Year ended 31.03.2010 (Audited) | ||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| 1 | Segment Revenue (Net Sales) | ||||||
| - Generation | 1547114 | 1230529 | 5470455 | 4616867 | 5683996 | 4774991 | |
| - Others | 4780 | 4810 | 16945 | 15392 | 57850 | 50654 | |
| - Total | 1551894 | 1235339 | 5487400 | 4632259 | 5741846 | 4825645 | |
| 2 | Segment Results (Profit before Tax and Interest) | ||||||
| - Generation | 327128 | 197550 | 1209483 | 1015253 | 1267669 | 1049376 | |
| - Others | 762 | 1664 | 5020 | 5816 | 13598 | 16085 | |
| - Total | 327890 | 199214 | 1214503 | 1021069 | 1281267 | 1065461 | |
| Less | |||||||
| (i) Unallocated Interest and Finance Charges | 36450 | 28584 | 143284 | 111682 | 174059 | 138312 | |
| (ii) Other Unallocable expenditure net of unallocable income | (34239) | (37314) | (133741) | (179159) | (132025) | (177762) | |
| Total Profit before Tax | 325679 | 207944 | 1204960 | 1088546 | 1239233 | 1104911 | |
| 3 | Capital Employed (Segment Assets - Segment Liabilities) | ||||||
| - Generation | 4526023 | 3945020 | 4526023 | 3945020 | 5050764 | 4346095 | |
| - Others | 425 | 5445 | 425 | 5445 | 29635 | 33623 | |
| - Un-allocated | 2262777 | 2293277 | 2262777 | 2293277 | 1758057 | 1882010 | |
| - Total | 6789225 | 6243742 | 6789225 | 6243742 | 6838456 | 6261728 | |
The operations of the company are mainly carried out within the country and therefore, geographical segments are not applicable.
| Notes: | ||||||||||||
| 1 | The Subsidiaries and Joint Venture Companies considered in the Consolidated Financial Results are as follows | |||||||||||
| a) | Subsidiary Companies | Ownership (%) | ||||||||||
| 1 | NTPC Electric Supply Company Ltd. (incl. its Joint Venture Kinesco Power and Utilities Private Ltd *. with 50% holding) | 100 | ||||||||||
| 2 | NTPC Vidyut Vyapar Nigam Ltd. | 100 | ||||||||||
| 3 | NTPC Hydro Ltd. | 100 | ||||||||||
| 4 | Kanti Bijlee Utpadan Nigam Ltd. | 64.57 | ||||||||||
| 5 | Bhartiya Rail Bijlee Company Ltd. | 74 | ||||||||||
| b) | Joint Venture Companies | |||||||||||
| 1 | Utility Powertech Ltd. | 50 | ||||||||||
| 2 | NTPC Alstom Power Services Private Ltd. | 50 | ||||||||||
| 3 | NTPC SAIL Power Company Private Ltd.* | 50 | ||||||||||
| 4 | NTPC - Tamilnadu Energy Company Ltd.* | 50 | ||||||||||
| 5 | Aravali Power Company Private Ltd. | 50 | ||||||||||
| 6 | Ratnagiri Gas and Power Private Ltd. | 30.17 | ||||||||||
| 7 | Meja Urja Nigam Private Ltd. | 50 | ||||||||||
| 8 | NTPC-BHEL Power Projects Private Ltd | 50 | ||||||||||
| 9 | BF-NTPC Energy Systems Ltd.* | 49 | ||||||||||
| 10 | Nabinagar Power Generating Company Private Ltd. | 50 | ||||||||||
| 11 | National Power Exchange Ltd. | 16.67 | ||||||||||
| 12 | NTPC-SCCL Global Ventures Private Ltd. | 50 | ||||||||||
| 13 | International Coal Ventures Private Ltd.* | 14.28 | ||||||||||
| 14 | Transformer and Electrical Kerala Ltd.* | 44.6 | ||||||||||
| 15 | Energy Efficiency Services Ltd.* | 25 | ||||||||||
| 16 | National High Power Test Laboratory Private Ltd.* | 25 | ||||||||||
| 17 | CIL-NTPC Urja Pvt. Ltd.* | 50 | ||||||||||
| All the above companies are incorporated in India. | ||||||||||||
| * The financial statements are un-audited. | ||||||||||||
| 2 | a) | The Central Electricity Regulatory Commission (CERC) notified the Regulations, 2009 in January 2009, containing inter-alia the terms and conditions for determination of tariff applicable for a period of five years with effect from 1st April 2009. Pending determination of station-wise tariff by the CERC, sales have been provisionally recognized at Rs. 48,93,531 lakh (previous year Rs. 44,47,393 lakh) for the year ended 31st March 2011 on the basis of principles enunciated in the said Regulations on the capital cost considering the orders of Appellate Tribunal for Electricity (APTEL) for the tariff period 2004-2009 including as referred to in para 2 (d). Regulations, 2009 provide that pending determination of tariff by the CERC, the Company has to provisionally bill the beneficiaries at the tariff applicable as on 31st March 2009 approved by the CERC. The amount provisionally billed for the year ended 31st March 2011 on this basis is Rs. 47,51,921 lakh (previous year Rs. 43,76,513 lakh). | ||||||||||
| b) | For the units commissioned subsequent to 1st April 2009, pending the determination of tariff by CERC, sales of Rs. 4,52,839 lakh (previous year Rs. 1,73,540 lakh) have been provisionally recognised on the basis of principles enunciated in the Regulations, 2009. The amount provisionally billed for such units is Rs. 4,41,612 lakh (previous year Rs. 1,53,650 lakh). | |||||||||||
| c) | Sales of Rs. 80,087 lakh (previous year Rs. 11,933 lakh) pertaining to previous years have been recognized based on the orders issued by the CERC/APTEL. | |||||||||||
| d) | In respect of stations/units where the CERC had issued tariff orders applicable from 1st April 2004 to 31st March 2009, the Company aggrieved over many of the issues as considered by the CERC in the tariff orders, filed appeals with the APTEL. The APTEL disposed off the appeals favourably directing the CERC to revise the tariff orders as per the directions and methodology given. The CERC filed appeals with the Hon’ble Supreme Court of India on some of the issues decided in favour of the Company by the APTEL. The decision of Hon’ble Supreme Court is awaited. The Company had submitted that it would not press for determination of the tariff by the CERC as per APTEL orders pending disposal of the appeals by the Hon’ble Supreme Court. Considering expert legal opinions obtained that it is reasonable to expect ultimate collection, the sales for the tariff period 2004-2009 were recognised in earlier years based on provisional tariff worked out by the Company as per the directions and methodology given by the APTEL. As accountal of sales is subject to the decision of the Hon’ble Supreme Court of India, pending decision of the Hon’ble Supreme Court of India, a sum of Rs. 1,26,286 lakh included in debtors has been fully provided for during the year. Effect, if any, will be given in the financial statements upon disposal of the appeals. | |||||||||||
| e) | Consequent to issue of additional capitalisation orders by the CERC, advance against depreciation required to meet the shortfall in the component of depreciation to be charged in future years has been reassessed and the excess determined amounting to Rs. 7,975 lakh has been recognised as sales. | |||||||||||
| f) | During the year, the CERC has issued tariff orders in respect of some of the stations in compliance with the judgement of APTEL mentioned at para d) above, and the beneficiaries were billed accordingly. Since the orders of CERC include those issues which have been challenged by them before Hon’ble Supreme Court, and are pending disposal, the impact thereof amounting to Rs. 25,222 lakh has been accounted as ‘Advance from customers’. | |||||||||||
| 3 | Sales includes Rs. 33,851 lakh (previous year (-) Rs. 71,993 lakh) on account of income tax recoverable from customers as per CERC Tariff Regulations, 2004 and Rs. 2,172 lakh (previous year Rs. 24,847 lakh) on account of deferred tax recoverable from customers as per CERC Tariff Regulations, 2009. | |||||||||||
| 4 | CERC has issued a draft notification dated 3rd September 2010 which inter-alia provides for upfront truing up of un discharged liabilities with regard to capital cost admitted by CERC before 1st April 2009. In anticipation of final notification an estimated amount of Rs. 26,359 lakh has been provided for towards tariff adjustment. | |||||||||||
| 5 | Provision for current tax for the year includes tax related to earlier years amounting to Rs. 5,602 lakh (previous year (-) Rs. 52,540 lakh). | |||||||||||
| 6 | During the year 2010-11, one unit of 490 MW at Dadri and one unit of 500 MW at Korba of the Company have been declared commercial w.e.f 31st July 2010 and 21st March 2011 respectively. | |||||||||||
| 7 | Effect of changes in Accounting Policies: | |||||||||||
| a) | During the year, the Office of the Comptroller & Auditor General of India has expressed an opinion that power sector companies shall be governed by the rates of depreciation notified by the CERC for providing depreciation in respect of generating assets in the accounts instead of the rates as per the Companies Act, 1956. Accordingly, the Company revised its accounting policies relating to charging of depreciation w.e.f 1st April 2009 considering the rates and methodology notified by the CERC for determination of tariff through Regulations, 2009. In case of certain assets, the Company has continued to charge higher depreciation based on technical assessment of useful life of those assets. Consequent to this change, prior period depreciation written back is Rs. 1,11,650 lakh, depreciation for the year is lower by Rs. 27,962 lakh. As a result, fixed assets and profit before tax for the year is higher by Rs. 1,39,612 lakh. | |||||||||||
| b) | Due to the above change, the amount of advance against depreciation (AAD) required to meet the shortfall in the component of depreciation in revenue over the depreciation to be charged off in future years has been reassessed by the Company station-wise as at 1st April 2009 and the excess determined, amounting to Rs. 72,749 lakh has been recognised as prior period sales. | |||||||||||
| c) | Further, the amount recoverable from the beneficiaries on account of deferred tax materialised for the financial year 2009-10 has been reassessed and excess amount of Rs. 21,267 lakh is reversed as ‘Prior Period Sales’ with equivalent reduction in provision for tax of earlier years in the Profit and Loss Account. | |||||||||||
| d) | Further, due to the above change, deferred tax liability (net) and deferred tax recoverable from the beneficiaries as at 31st March 2010 amounting to Rs. 3,04,941 lakh and Rs. 2,84,016 lakh respectively have been reviewed and restated to Rs. 4,41,519 lakh and Rs. 3,80,969 lakh respectively. As a result, deferred tax liability as at 31.03.2010 has increased by Rs. 1,36,578 lakh out of which Rs. 96,953 lakh is recoverable from the beneficiaries as per Regulation 39 of Regulations, 2009 and net increase is debited to provision for deferred tax. | |||||||||||
| 8 | Ministry of Power (MOP), Government of India (GOI) vide letter dated 24.12.2010 has communicated the discontinuation of one of the Hydro Power Projects of the Company in the State of Uttarakhand. Subsequently, the Company has issued Letter of Frustration to the suppliers/vendors of the project. MOP has sought details of expenditure incurred, committed costs, anticipated expenditure on safety and stabilization measures, other recurring site expenses and interest costs, as well as claims of various packages of contractors/vendors. Management expects that the total cost incurred, anticipated expenditure on safety and stabilization measures, other recurring site expenses and interest costs as well as claims of various packages of contractors/vendors for this project will be compensated in full. Hence, cost incurred on the project up to 31.03.2011 amounting to Rs. 74,882 lakh has been accounted as recoverable from GOI. | |||||||||||
| 9 | The Company is executing a thermal power project in respect of which possession certificates for 1,489 acres (previous year 1,489 acres) of land has been handed over to the Company and all statutory and environment clearances for the project have been received. Subsequently, a high power committee has been constituted as per the directions of GOI to explore alternate location of the project since present location is stated to be a coal bearing area. Aggregate cost incurred up to 31st March 2011 Rs. 19,019 lakh (previous year Rs. 18,310 lakh) is included in ‘Fixed Assets’. Management is confident of recovery of cost incurred, hence no provision is considered necessary. | |||||||||||
| 10 | During the quarter, the Company has paid an interim dividend of Rs. 3.00 per share (face value Rs. 10/-each) for the year 2010-11. The Board of Directors has recommended final dividend of Rs. 0.80 per share (face value Rs. 10/-each). The total dividend (including interim dividend) for the financial year 2010-11 is Rs. 3.80 per share (face value Rs. 10/-each). | |||||||||||
| 11 | The audited accounts are subject to review by Comptroller and Auditor General of India under section 619(4) of the Companies Act, 1956. | |||||||||||
| 12 | Formula used for computation of coverage ratios DSCR = Earning before Interest, Depreciation and Tax/(Interest net off transferred to expenditure during construction + Principal repayment) and ISCR = Earning before Interest, Depreciation and Tax/(Interest net off transferred to expenditure during construction). | |||||||||||
| 13 | Information on investors complaints pursuant to clause 41 of Listing Agreements for the quarter ended 31st March 2011 | |||||||||||
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| 14 | The above results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 10th May 2011 and approved by the Board of Directors in the meeting held on the same day. | |||||||||||
| 15 | Figures for the previous year have been regrouped/ rearranged wherever necessary. | |||||||||||
For and on behalf of Board of Directors
Place: New Delhi
Date: 10thMay 2011
Date: 10thMay 2011
sd/-
(A.K.SINGHAL)
DIRECTOR (FINANCE)
(A.K.SINGHAL)
DIRECTOR (FINANCE)