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« Back STATEMENT OF AUDITED STANDALONE & CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2021

STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2021

(Rupee Crore)

Sl.
No.
ParticularsQuarter
ended 31.03.2021
(Unaudited)
Quarter
ended 31.12.2020
(Unaudited)
Quarter
ended 31.03.2020
(Unaudited)
Year
ended 31.03.2021
(Audited)
Year
ended 31.03.2020
(Audited)
1234567
1Income     
 (a)Revenue from operations26566.8624509.2627246.8899206.7297700.39
 (b)Other income1672.96759.301031.874345.992778.02
 Total income (a+b)28239.8225268.5628278.75103552.71100478.41
2Expenses     
 (a)Fuel cost15612.0612690.8714988.4152849.6454241.82
 (b)Electricity purchased for trading806.74673.87829.693031.252776.44
 (c)Employee benefits expense1021.471286.491427.904942.194925.60
 (d)Finance costs1594.342009.361836.917459.036781.97
 (e)Depreciation and amortisation expense2797.222555.422128.9510411.808622.85
 (f)Other expenses2618.782490.962683.129580.288663.81
 Total expenses (a+b+c+d+e+f)24450.6121706.9723894.9888274.1986012.49
3Profit before exceptional items, tax and regulatory
deferral account balances (1-2)
3789.213561.594383.7715278.5214465.92
4Exceptional items-(income) / expense (Refer Note 10)---1363.00-
5Profit before tax and regulatory deferral account balances (3-4)3789.213561.594383.7713915.5214465.92
6Tax expense:     
 (a)Current tax (Refer Note 15)(1138.94)661.423287.07723.235153.46
 (b)Deferred tax156.51507.221696.581202.164028.49
 Total tax expense (a+b)(982.43)1168.644983.651925.399181.95
7Profit before regulatory deferral account balances (5-6)4771.642392.95(599.88)11990.135283.97
8Net movement in regulatory deferral account balances (net of tax)(292.42)922.391852.321779.394828.84
9Profit for the period (7+8)4479.223315.341252.4413769.5210112.81
10Other comprehensive income     
 Items that will not be reclassified to profit or loss     
 (a)Net acturial gains/(losses) on defined benefit plans38.20(59.17)(152.81)(139.33)(346.04)
 (b)Net gains/(losses) on fair value of equity instruments22.8613.38(21.36)46.80(41.64)
 Income tax on items that will not be reclassified to profit or loss     
 (a)Net acturial gains/(losses) on defined benefit plans(6.68)10.3426.7024.3460.46
 Other comprehensive income for the period (net of tax)54.38(35.45)(147.47)(68.19)(327.22)
11Total comprehensive income for the period (9+10)4533.603279.891104.9713701.339785.59
12Paid-up equity share capital (Face value of share Rupee 10/- each)9696.679696.679894.569696.679894.56
13Paid-up debt capital$   161628.87152693.62
14Other equity excluding revaluation reserve as per balance sheet   109288.82103674.88
15Net worth*   118387.41112980.96
16Debenture redemption reserve   6240.437011.43
17Earnings per share (of Rupee 10/- each) - (not annualised) (including net movement in regulatory deferral account balances): Basic and Diluted (in Rupee)4.623.351.2713.9910.22
18Earnings per share (of Rupee 10/- each) - (not annualised) (excluding net movement in regulatory deferral account balances): Basic and Diluted (in Rupee)4.922.42(0.61)12.185.34
19Debt equity ratio   1.371.35
20Debt service coverage ratio (DSCR)   2.372.07
21Interest service coverage ratio (ISCR)   4.444.45

$ Comprises long term debts
* Excluding Fly ash utilization reserve
See accompanying notes to the standalone financial results.

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rupee Crore)

Sl.
no.
ParticularsAs at 31.03.2021
(Audited)
As at 31.03.2020
(Audited)
AASSETS  
1Non-current assets  
 (a) Property, plant and equipment163892.12156273.02
 (b) Capital work-in-progress75343.6073066.76
 (c) Intangible assets556.74538.28
 (d) Intangible assets under development94.90292.52
 (e) Financial assets  
      (i) Investments in subsidiaries and joint venture companies28028.5726350.61
      (ii) Other investments97.0850.28
      (iii) Loans1498.12600.26
      (iv) Other financial assets1188.841403.60
 (f) Other non-current assets13790.0211464.50
 Sub-total - Non-current assets284489.99270039.83
2Current assets  
 (a) Inventories9178.9410731.86
 (b) Financial assets  
      (i) Investments499.99-
      (ii) Trade receivables13701.7215615.19
      (iii) Cash and cash equivalents90.0520.37
      (iv) Bank balances other than cash and cash equivalents2248.412188.74
      (v) Loans416.82308.56
      (vi) Other financial assets12921.8811579.16
 (c) Other current assets8527.878060.98
 Sub-total - Current assets47585.6848504.86
3Regulatory deferral account debit balances11143.729122.76
 TOTAL - ASSETS343219.39327667.45
BEQUITY AND LIABILITIES  
1Equity  
 (a) Equity share capital9696.679894.56
 (b) Other equity109288.82103674.88
 Sub-total - Total equity118985.49113569.44
2Liabilities  
(i)Non-current liabilities  
 (a) Financial liabilities  
      (i) Borrowings151229.62146538.70
      (ii) Trade payables  
      - Total outstanding dues of micro and small enterprises13.7810.35
      - Total outstanding dues of creditors other than micro and small enterprises66.2357.66
      (iii) Other financial liabilities1390.67652.24
 (b) Provisions826.25826.74
 (c) Deferred tax liabilities (net)9160.998093.98
 (d) Other non-current liabilities1111.81541.88
 Sub-total - Non-current liabilities163799.35156721.55
(ii)Current liabilities  
 (a) Financial liabilities  
      (i) Borrowings12859.7414049.36
      (ii) Trade payables  
      - Total outstanding dues of micro and small enterprises378.31495.70
      - Total outstanding dues of creditors other than micro and
     small enterprises
6804.168504.93
      (iii) Other financial liabilities30051.7423715.74
 (b) Other current liabilities1070.141299.26
 (c) Provisions7276.056639.17
 Sub-total - Current liabilities58440.1454704.16
3Deferred revenue1994.412672.30
 TOTAL - EQUITY AND LIABILITIES343219.39327667.45

STANDALONE SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND YEAR ENDED 31 MARCH 2021

(Rupee Crore)

Sl.
No.
ParticularsQuarter ended 31.03.2021
(Unaudited)
Quarter ended 31.12.2020
(Unaudited)
Quarter ended 31.03.2020
(Unaudited)
Year ended 31.03.2021
(Audited)
Year ended 31.03.2020
(Audited)
1234567
1Segment revenue     
 - Generation26418.8424432.4627079.0698460.8696583.92
 - Others1446.931208.251384.304972.454991.11
 - Unallocated890.3045.58188.001543.90428.19
 - Less: Inter segment elimination516.25417.73372.611424.501524.81
 Total28239.8225268.5628278.75103552.71100478.41
2Segment results     
 Profit before interest, exceptional items and tax (including regulatory deferral account balances)     
 - Generation4498.256614.017342.3123793.7326310.57
 - Others(235.39)69.7773.35(34.34)520.03
 Total4262.866683.787415.6623759.3926830.60
 Less:     
 (i) Finance costs1594.342009.361836.917459.036781.97
 (ii) Other unallocated expenditure net of unallocable income(766.37)(4.84)(1049.50)(1134.27)(268.44)
 (iii) Exceptional items (Refer Note 10)---1,363.00-
 Profit before tax (including regulatory deferral account balances)3434.894679.266628.2516071.6320317.07
 Tax expense (including tax on movement in regulatory deferral account balances)(1044.33)1363.925375.812302.1110204.26
 Profit after tax4479.223315.341252.4413769.5210112.81
3Segment assets     
 - Generation296267.42300093.83285899.88296267.42285899.88
 - Others10653.5511911.1310838.2910653.5510838.29
 - Unallocated36298.4233605.5830929.2836298.4230929.28
 Total343219.39345610.54327667.45343219.39327667.45
4Segment liabilities     
 - Generation33279.2833744.4531961.8833279.2831961.88
 - Others4370.244340.714298.274370.244298.27
 - Unallocated186584.38190197.84177837.86186584.38177837.86
 Total224233.90228283.00214098.01224233.90214098.01

The operations of the Company are mainly carried out within the country and therefore, there is no reportable geographical segment.

STANDALONE STATEMENT OF CASH FLOWS

(Rupee Crore)

ParticularsYear ended 31.03.2021
(Audited)
Year ended 31.03.2020
(Audited)
A.CASH FLOW FROM OPERATING ACTIVITIES  
 Profit before tax15278.5214465.92
 Add: Net movements in regulatory deferral account balances (net of tax)1779.394828.84
 Add: Tax on net movements in regulatory deferral account balances376.721022.31
 Profit before tax including movements in regulatory deferral account balances17434.6320317.07
 Adjustment for:  
 Depreciation and amortisation expense10411.808622.85
 Provisions914.65265.73
 Special rebate to beneficiaries - exceptional items(1363.00)-
 On account of government grants568.4933.07
 Deferred foreign currency fluctuation asset514.87(1033.89)
 Deferred income from foreign currency fluctuation(416.71)1289.12
 Regulatory deferral account debit balances(2156.11)(5851.15)
 Fly ash utilisation reserve fund9.60(48.15)
 Exchange differences on translation of foreign currency cash and cash equivalents-0.03
 Finance costs7402.246730.26
 Unwinding of discount on vendor liabilities56.7951.71
 Interest income/Late payment Surcharge/Income on investments(2412.94)(1686.42)
 Dividend income(1283.19)(210.40)
 Provisions written back(132.04)(471.04)
 Loss on disposal of non-current investments139.75-
 Profit on de-recognition of property, plant and equipment(3.34)(12.25)
 Loss on de-recognition of property, plant and equipment133.4759.96
  12384.337739.43
 Operating profit before working capital changes29818.9628056.50
 Adjustment for:  
 Trade receivables964.98(6253.92)
 Inventories2213.39(2206.69)
 Trade payables, provisions, other financial liabilities and other liabilities(900.12)1523.80
 Loans, other financial assets and other assets(2303.35)3367.43
  (25.10)(3569.38)
 Cash generated from operations29793.8624487.12
 Income taxes (paid) / refunded(2736.08)(2903.14)
 Net cash from/(used in) operating activities - A27057.7821583.98
B.CASH FLOW FROM INVESTING ACTIVITIES  
 Purchase of property, plant and equipment & intangible assets(18307.09)(14523.88)
 Disposal of property, plant and equipment & intangible assets26.1863.62
 Investment in mutual funds(499.99)-
 Investment in subsidiaries and joint venture companies(1645.16)(13317.48)
 Loans and advances to subsidiaries(866.19)(46.32)
 Interest income/Late payment Surcharge/Income on investments received3366.11768.97
 Dividend received1283.19210.40
 Income tax paid on income from investing activities(634.33)(323.41)
 Bank balances other than cash and cash equivalents(64.35)(78.74)
 Net cash from/(used in) investing activities - B(17341.63)(27246.84)
C.CASH FLOW FROM FINANCING ACTIVITIES  
 Proceeds from non-current borrowings30431.1228775.62
 Repayment of non-current borrowings(20364.45)(7667.17)
 Proceeds from current borrowings(1189.62)(1326.73)
 Payment of lease obligations(42.57)(42.77)
 Interest paid(10186.07)(10503.90)
 Buy back of Equity Share Capital(2763.82)-
 Dividend paid(5531.06)(2968.37)
 Tax on dividend-(607.80)
 Net cash from/(used in) financing activities - C(9646.47)5658.88
    
D.Exchange differences on translation of foreign currency cash and cash equivalents-(0.03)
 Net increase/(decrease) in cash and cash equivalents (A+B+C+D)69.68(4.01)
 Cash and cash equivalents at the beginning of the year20.3724.38
 Cash and cash equivalents at the end of the year90.0520.37

Notes to Standalone Financial Results:

1. The above standalone financial results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 19 June 2021 and approved by the Board of Directors in their meeting held on the same date.

2. The standalone financial statements of the Company for the year ended 31 March 2021 have been prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013. The statutory auditors have issued unmodified opinion on these standalone financial statements. The audited accounts are subject to review by the Comptroller and Auditor General of India under Section 143(6) of the Companies Act, 2013.

3. a) (i) The Central Electricity Regulatory Commission (CERC) notified the CERC (Terms and Conditions of Tariff) Regulations, 2019 vide Order dated 7 March 2019 (Regulations, 2019) for determination of tariff for the tariff period 2019-2024. Pending issue of provisional/final tariff orders with effect from 1 April 2019, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. In case of new projects, which got commercialised from 1 April 2019 and projects where tariff approved and applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in tariff petitions. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed is Rupee 94,099.85 crore (31 March 2020: Rupee 91,339.38 crore).

(ii) Sales have been provisionally recognized at Rupee 94,464.04 crore (31 March 2020: Rupee 91,491.55 crore) on the said basis.

b) Sales include Rupee (-) 1,101.47 crore (31 March 2020: Rupee 1,768.88 crore) on account of income tax recoverable from / (refundable to) the beneficiaries as per Regulations, 2004 due to reversal of tax provisions created in the previous year pursuant to ‘Vivad se Vishwas Scheme’ (VsVS) introduced by the government vide ‘The Direct Tax Vivad Se Vishwas Act, 2020 for settlement of pending income tax disputes. Sales also include Rupee 81.88 crore (31 March 2020: ₹ 79.97 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

c) Sales include Rupee 1,154.64 crore (31 March 2020: Rupee 31.59 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments.

d) Revenue from operations for the year ended 31 March 2021 include Rupee 3,112.51 crore (31 March 2020: Rupee 2,903.59 crore) on account of sale of energy through trading.

4. On 7 February 2021, a massive unprecedented flood consisting of debris and muck, silt, boulders, rock pieces, etc. caused by glacier burst in the upstream of the project in the Himalayas, hit a part of the Company’s under construction 520 MW hydropower project in the state of Uttarakhand. This resulted in large scale inundation and silting at the project site, especially the barrage intake structure, desilting chamber/basin and adjoining facilities including their approach. However, the main power house and dam was not significantly affected by the floods. Most of the mechanical and electrical equipment are in safe condition.

Industry Experts engaged by the Company including experienced officials of the Company, are preparing a comprehensive assessment -cum- action plan for restoration of the project. It is anticipated that the restoration work may take time up to the end of the next financial year i.e. 2021-22, which is being closely monitored by the Company. Insurance cover is available for the loss/damage caused. The company is committed to the completion of the project at the earliest.

The carrying cost of the project as at 31 March 2021 is Rupee 5,337.69 crore (31 March 2020: Rupee 4,868.79 crore). Damage to the project due to the calamity is indemnifiable as stated above and Management is of the view that there would not be any material impact on the financials and confident that any additional expenditure consequent to the natural calamity, would be covered as part of project cost as per Tariff Regulations, hence no adjustment is considered necessary in respect of the carrying value of the project.

5. The Company is executing a hydro power project in the state of Uttarakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttarakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 31 March 2021 is Rupee163.86 crore (31 March 2020: Rupee 163.40 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no adjustment is considered necessary in respect of the carrying value of the project.

6. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's project consisting of three units of 800 MW each, was challenged before the National Green Tribunal (NGT). The NGT disposed off the appeal, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgement of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. All the units of the project have been declared commercial in the earlier years. The carrying cost of the project as at 31 March 2021 is Rupee 15,115.02 crore (31 March 2020: Rupee 15,662.28 crore). Management is confident that the approval for the project shall be granted, hence no adjustment is considered necessary in respect of the carrying value of the project.

7. The Company is executing a thermal power project consisting of two units of 800 MW each in the State of Telangana. The project construction commenced in the year 2016 after obtaining the requisite approval and Environment Clearance (EC) from MOEF&CC (Ministry of Environment, Forest and Climate Change). On 27 May 2021, the National Green Tribunal (NGT) has passed an order instructing MOEF&CC to keep the EC granted for the project in abeyance for a period of seven months or till the period the re-appraisal is done and additional conditions imposed by the MOEF&CC, whichever is earlier. NGT has further directed the MOEF&CC to conduct additional studies pertaining to Environment Impact Assessment of the project, to be carried out through the company, for further assessment by its Expert Appraisal Committee (EAC) and get recommendations of the EAC for imposing additional conditions by the MOEF&CC, if any, on the company for allowing the units to operate. The Company has obtained advice of prominent legal experts and has filed an appeal before Hon'ble Supreme Court of India against the directions of NGT. Both the units of the project are in advanced stage of construction and commissioning of the units is envisaged in the next year. The carrying cost of the project as at 31 March 2021 is Rupee 9,376.31 crore (31 March 2020: Rupee 8,017.48 crore). Management is confident that the approval for the continuation of the project shall be granted, hence no adjustment is considered necessary in respect of the carrying value of the project.

8. An amount of Rupee 700.30 crore (31 March 2020: Rupee 749.01 crore) has been incurred upto 31 March 2021 in respect of one of the hydro power projects of the Company, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), Government of India (GOI), which includes Rupee 449.88 crore (31 March 2020: Rupee 439.57 crore) in respect of arbitration awards challenged by the Company before the Hon'ble High Court of Delhi. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against provisions made in this regard. 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.

9. The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years, after which it was to be transferred to the Company at Rupee 1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. Based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India, an amount of Rupee 356.31 crore was paid upto 31 March 2019.

Further, the Arbitral Tribunal had awarded a claim of Rupee 1,891.09 crore plus applicable interest in favour of the operator, during the financial year 2018-19. The Company aggrieved by the arbitral award and considering legal opinion obtained, had filed an appeal before the Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.

In the financial year 2019-20, against the appeal of the Company, Hon'ble High Court directed the Company to deposit Rupee 500.00 crore with the Registrar General of the Court. The said amount was deposited with the Hon'ble High Court on 5 November 2019. Hon'ble High Court vide its order dated 8 January 2020 directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner and also directed release of Rupee 500.00 crore to the operator by the Registrar General subject to verification of bank guarantee and outcome of the application of the Company for formal handing over of the infrastructure. On 17 January 2020 unconditional BG was submitted by the operator to Registrar General and Rupee500.00 crore was released to the operator by the Hon’ble High Court. As per order of Hon'ble High Court, formal handing over of the infrastructure started on 20 January 2020 at the project site. However, due to certain local administrative issues initially and further due to Covid-19 pandemic, Local Commissioner’s visit had to be deferred.

In view of delay in the handover exercise, NTPC had filed an Application in Hon'ble High Court praying to pass further directions to operator in this regard. Hon’ble High Court on 11 November 2020 disposed off the application requesting the Ld. Local Commissioner appointed by the Court, to visit the project site expeditiously preferably within 2 weeks and carry out the commission. The handing over exercise has been delayed due to operator's issues with local labours at the site and Covid situation. Date of hearing at Hon'ble High Court of Delhi has been adjourned several times in light of restricted functioning of the Hon'ble High Court and now stands adjourned till 15 July 2021 in view of the current Covid-19 situation.

Pending final disposal of the appeal by the Hon’ble High Court, considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and Significant Accounting Policies of the Company, provision has been updated by interest to Rupee 38.09 crore (31 March 2020: Rupee 37.92 crore) and the balance amount of Rupee 2,153.57 crore (31 March 2020: Rupee 2,014.84 crore) has been considered as contingent liability.

10. The Company is in the business of generation and sale of electricity which is an essential service as emphasized by MOP, GOI. During the outbreak of COVID-19, including recent surge in the number of cases, the Company has ensured the availability of its power plants to generate power and has continued to supply power during the period of lockdown. In line with the directions of MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under the Atmanirbhar Bharat Special Economic and Comprehensive package, to allow a rebate of between 20%-25% on the capacity charges during the lock down period subject to approval of the Board, an amount of Rupee 1,363.00 crore has been approved by the Board, to be allowed during the year 2020-21. The entire amount has since been accounted for and disclosed as exceptional item.

CERC issued an order dated 3 April 2020 whereby it was directed that Late Payment Surcharge (LPSC) shall apply at a reduced rate of 12% p.a. instead of the normal rate of 18% p.a. on the payments becoming overdue during the period from 24 March 2020 to 30 June 2020 to contain the impact of COVID-19. Further, GOI has notified Electricity (Late Payment Surcharge) Rules, 2021 on 22 February 2021.These rules envisage that base rate of LPSC to be considered as SBI one year MCLR, as on 1 April of the financial year, plus five percent. The rate of LPSC shall be increased by 0.5 percent for every month of delay, provided that the LPSC shall not be more than 3 percent higher than the base rate at any time.

Further, under the Atmanirbhar Bharat package, the Company has deferred the capacity charges to DISCOMS for the lockdown period for the power not scheduled to be payable without interest after the lock down period in three equal monthly installments. The impact on profit for the the year due to the reduction in LPSC rate and deferment of capacity charges, is not material.

The demand for power is continuously increasing with increase in economic activities in the Country, although demand may get impacted in short term due to lock downs in certain parts of the country.The Management does not anticipate any material medium to long-term impact on the financial position of the Company. The Company will continue to closely monitor any material changes to the future economic conditions and take appropriate remedial measures as needed to respond to the Covid related risks. if any.

11. During the year ended 31 March 2021, one thermal unit of 660 MW at Khargone w.e.f. 4 April 2020, one thermal unit of 800 MW at Lara w.e.f. 7 November 2020, 8 MW solar PV capacity at Auraiya w.e.f. 10 November 2020, 7 MW solar PV capacity at Auraiya w.e.f. 4 December 2020, 140 MW solar PV capacity at Bilhaur w.e.f. 18 January 2021, 5 MW solar PV capacity at Auraiya w.e.f. 20 February 2021, one thermal unit of 800 MW at Gadarwara w.e.f. 1 March 2021 and 70 MW solar PV capacity at Bilhaur w.e.f. 28 March 2021 have been declared commercial. Further, Dulanga Captive Coal Mine of the Company has been declared commercial w.e.f. 1 October 2020. Further, the operations of 460 MW Talcher Thermal Power Station have been discontinued w.e.f. the end of 31 March 2021.

12. During the quarter, the Company has paid an interim dividend of Rupee 3.00 per equity share (par value Rupee 10/- each) for the financial year 2020-21. The Board of Directors has recommended final dividend of Rupee 3.15 per equity share (par value Rupee 10/- each). The total dividend (including interim dividend) for the financial year 2020-21 is Rupee 6.15 per equity share (par value Rupee 10/- each).

13. Pursuant to the approval of Board of Directors of the Company for buyback of equity shares in its meeting held on 2 November 2020, the Company has bought back 19,78,91,146 equity shares of the Company for an aggregate amount of Rupee 2,275.75 crore being 2% of the total paid up equity share capital at Rupee 115.00 per equity share. The settlement of all valid bids was completed on 30 December 2020 and the equity shares bought back were extinguished on 1 January 2021. Accordingly, the paid up equity share capital has been reduced by Rupee 197.89 crore and other equity is reduced by Rupee 2,565.93 crore (including tax on buy back of shares of Rupee 484.06 crore and other buyback expenses of Rupee 4.01 crore (net of tax)). Further, earnings per share has been adjusted on account of buy back of shares.

14. The Company has entered into a tripartite framework agreement with Ratnagiri Gas & Power Pvt. Ltd. (RGPPL), a Joint Venture Company of NTPC Limited, and its lenders on 31 December 2020 for settlement of RGPPL's outstanding debt liabilities as per the Composite Resolution Plan. As per the Resolution Plan, the Company has provided inter corporate loan of Rupee 885 crore to RGPPL for settlement of loan with the lenders. Further, 35.47% of equity held by lenders in RGPPL have been transferred to the Company as a part of the Resolution Plan, at nominal value. Consequently, the Company’s equity shareholding in RGPPL has increased from 25.51% to 60.98% on 31 December 2020 and RGPPL has become a subsidiary company of NTPC Limited with effect from 31 December 2020.

Further, the Company has executed Share Purchase Agreements with GAIL (India) Limited (GAIL) on 23 February 2021, for purchase of GAIL's share (25.51%) in RGPPL and Sale of NTPC's share (14.82%) (on fully dilutive basis) in Konkan LNG Ltd. (KLL) at a nominal value of Rupee1/-. After transfer of shares as per the Share Purchase Agreements, NTPC has exited from KLL and NTPC's shareholding in RGPPL has become 86.49% with effect from 23 February 2021.

15. The GOI introduced Vivad se Vishwas Scheme (VsV Scheme) through ‘The Direct Tax Vivad Se Vishwas Act, 2020’. During the previous year, the Company had created an additional tax provision amounting to Rupee 2,661.47 crore as it proposed to settle all its pending Income Tax disputes for fourteen years by opting for the VsVs scheme. During the year, the Company decided to settle its pending disputes for three years only, under the VsVs scheme, for which the Company is in the process of completion of procedural formalities. Accordingly, excess tax provision amounting to Rupee 1,889.05 crores has been written back during the quarter ended 31 March 2021.

16. Formula used for computation of coverage ratios DSCR = Earning before Interest, Depreciation/amortisation, Tax and Exceptional items /(Interest net of transfer to expenditure during construction + Principal repayments of the long term borrowings excluding prepayments made out of refinancing arrangements) and ISCR = Earning before Interest, Depreciation/amortisation, Tax and Exceptional items/(Interest net of transfer to expenditure during construction).

17. The Company has maintained required asset cover as per the terms of offer document/ Information Memorandum and/or Debenture Trust Deed, including compliance with all the covenants, in respect of the listed non-convertible debt securities.

18. Figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year.

19. Previous periods figures have been reclassified wherever considered necessary.

STATEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2021

(Rupee Crore)

Sl.
No.
ParticularsQuarter ended 31.03.2021
(Unaudited)
Quarter ended 31.12.2020
(Unaudited)
Quarter ended 31.03.2020
(Unaudited)
Year ended 31.03.2021
(Audited)
Year ended 31.03.2020
(Audited)
1234567
1Income      
 (a)Revenue from operations30102.6027526.0330390.51111531.15109464.04
 (b)Other income1584.64861.24939.744015.682908.54
 Total income (a+b)31687.2428387.2731330.25115546.83112372.58
2Expenses     
 (a)Fuel cost16802.3913446.6215804.0956099.2657185.62
 (b)Electricity purchased for trading1382.201116.221447.515049.425185.95
 (c)Employee benefits expense1250.501554.881632.845953.935830.48
 (d)Finance costs2082.982456.542200.599224.148116.85
 (e)Depreciation, amortisation and impairment expense3457.243041.602613.2312450.3110356.16
 (f)Other expenses2894.432667.452989.6910454.719725.41
 Total expenses (a+b+c+d+e+f)27869.7424283.3126687.9599231.7796400.47
3Profit before exceptional items, tax, Regulatory deferral account balances and Share of net profit of joint ventures accounted for using equity method (1-2)3817.504103.964642.3016315.0615972.11
4Share of net profits of joint ventures accounted for using equity method203.37195.0350.23683.87405.40
5Profit before exceptional items, tax and regulatory deferral account balances (3+4)4020.874298.994692.5316998.9316377.51
6Exceptional items-(income) / expense (Refer Note 11)3.152.08-1512.19-
7Profit before tax and regulatory deferral account
balances (5-6)
4017.724296.914692.5315486.7416377.51
8Tax expense     
 (a)Current tax (Refer Note 15)(988.19)734.823417.811091.065526.53
 (b)Deferred tax27.53619.231540.401329.473821.01
 Total tax expense (a+b)(960.66)1354.054958.212420.539347.54
9Profit before regulatory deferral account balances (7-8)4978.382942.86(265.68)13066.217029.97
10Net movement in regulatory deferral account balances (net of tax)(328.89)933.501895.541903.194872.01
11Profit for the period (9+10)4649.493876.361629.8614969.4011901.98
12Other comprehensive income     
 (a)Items that will not be reclassified to profit or loss     
  (i)Net actuarial gains/(losses) on defined benefit plans37.75(65.08)(170.43)(151.74)(372.10)
  (ii)Net gains/(losses) on fair value of equity instruments22.8613.38(21.36)46.80(41.64)
  (iii)Share of other comprehensive income of joint ventures accounted for under the equity method(2.60)(0.05)0.74(2.77)(0.50)
  Income tax on items that will not be reclassfied to profit or loss     
  (i)Net acturial gains/(losses) on defined benefit plans(4.85)11.8431.3928.8266.52
 (b)Items that will be reclassified to profit or loss     
  (i)Exchange differences on translation of foreign operations0.61(2.54)31.40(20.20)40.00
 Other comprehensive income for the period (net of tax) (a+b)53.77(42.45)(128.26)(99.09)(307.72)
13Total comprehensive income for the period (11+12)4703.263833.911501.6014870.3111594.26
14Profit attributable to owners of the parent company4541.793766.461534.7014634.6311600.23
15Profit attributable to non-controlling interest107.70109.9095.16334.77301.75
16Other comprehensive income attributable to owners of the parent company52.69(42.08)(124.75)(99.17)(303.43)
17Other comprehensive income attributable to non controlling interest1.08(0.37)(3.51)0.08(4.29)
18Paid-up equity share capital (Face value of share Rupee 10/- each)9696.679696.679894.569696.679894.56
19Paid-up debt capital$   194243.25184073.44
20Other equity excluding revaluation reserve as per balance sheet   116041.80108944.60
21Net worth*   125118.87118237.09
22Debenture redemption reserve   6970.477700.97
23Earnings per share (of Rupee 10/- each) - (not annualised) (including net movement in regulatory deferral account balances): Basic and Diluted (in Rupee)4.683.811.5514.8711.72
24Earnings per share (of Rupee 10/- each) - (not annualised) (excluding net movement in regulatory deferral account balances): Basic and Diluted (in Rupee)5.022.86(0.36)12.936.80
25Debt equity ratio   1.551.56
26Debt service coverage ratio (DSCR)   2.001.97
27Interest service coverage ratio (ISCR)   4.194.34

$ Comprises long term debts
* Excluding Fly ash utilization reserve and Corporate social responsibility reserve
See accompanying notes to the consolidated financial results

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(Rupee Crore)

Sl.
No.
ParticularsAs at
31.03.2021
(Audited)
As at
31.03.2020
(Audited)
AASSETS  
1Non-current assets  
 (a) Property, plant and equipment202598.05187176.46
 (b) Capital work-in-progress97404.1698210.94
 (c) Intangible assets647.13626.33
 (d) Intangible assets under development101.87297.53
 (e) Investments accounted for using the equity method9992.189256.31
 (f) Financial assets  
      (i) Investments97.0850.28
      (ii) Loans554.97511.08
      (iii) Other financial assets1092.841206.32
 (g) Deferred tax assets (net)1075.891096.60
 (f) Other non-current assets17031.5114092.61
 Sub-total - Non-current assets330595.68312524.46
2Current assets  
 (a) Inventories9809.6011138.54
 (b) Financial assets  
     (i) Investments499.99-
      (ii) Trade receivables17718.0720314.59
      (iii) Cash and cash equivalents950.02589.52
      (iv) Bank balances other than cash and cash equivalents3437.782624.77
      (v) Loans259.13252.67
      (vi) Other financial assets14991.2613081.12
 (c) Current tax assets (Net)64.7060.96
 (d) Other current assets9086.708501.08
 Sub-total - Current assets56817.2556563.25
3Regulatory deferral account debit balances11553.289397.73
 TOTAL - ASSETS398966.21378485.44
BEQUITY AND LIABILITIES  
1Equity  
 (a) Equity share capital9696.679894.56
 (b) Other equity116041.80108944.60
 Total equity attributable to the owners of the parent125738.47118839.16
 Non controlling interest3523.713317.19
 Sub-total - Total equity129262.18122156.35
2Liabilities  
(i)Non-current liabilities  
 (a) Financial liabilities  
      (i) Borrowings181271.91176020.02
      (ii) Trade payables  
      - Total outstanding dues of micro and small enterprises13.7810.35
      - Total outstanding dues of creditors other than micro and small enterprises66.3557.75
      (iii) Other financial liabilities2089.141404.45
 (b) Provisions1042.391085.02
 (c) Deferred tax liabilities (net)9887.828715.42
 (d) Other non-current liabilities1996.471551.13
 Sub-total - Non-current liabilities196367.86188844.14
(ii)Current liabilities  
 (a) Financial liabilities  
      (i) Borrowings15964.6216556.23
      (ii) Trade payables  
      - Total outstanding dues of micro and small enterprises404.12512.24
      - Total outstanding dues of creditors other than micro and small enterprises8322.169596.34
      (iii) Other financial liabilities36301.3928646.96
 (b) Other current liabilities1949.501856.19
 (c) Provisions8113.607372.06
 (d) Current tax liabilities (net)17.501.71
 Sub-total - Current liabilities71072.8964541.73
3Deferred revenue2263.282943.22
 TOTAL - EQUITY AND LIABILITIES398966.21378485.44

CONSOLIDATED SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE YEAR ENDED 31 MARCH 2021

(Rupee Crore)

Sl.
No.
ParticularsQuarter ended 31.03.2021
(Unaudited)
Quarter ended 31.12.2020
(Unaudited)
Quarter ended 31.03.2020
(Unaudited)
Year ended 31.03.2021
(Audited)
Year ended 31.03.2020
(Audited)
1234567
1Segment revenue     
 - Generation30104.7727125.8729723.92109878.24106441.61
 - Others2646.992122.042536.659038.509425.86
 - Unallocated46.1132.7325.26116.60162.13
 - Less: Inter segment elimination1110.63893.37955.583486.513657.02
 Total31687.2428387.2731330.25115546.83112372.58
2Segment results     
 Profit before interest, exceptional items and tax (including regulatory deferral account balances)     
 - Generation5666.277548.398088.3627866.0229392.79
 - Others(182.97)97.64115.91100.83571.72
 Total5483.307646.038204.2727966.8529964.51
 Less:     
 (i) Finance costs2082.982456.542200.599224.148116.85
 (ii) Other unallocated expenditure net of unallocable income(213.30)(241.36)(964.27)(546.91)(433.93)
 (iii) Exceptional items (Refer Note 11)3.152.08-1512.19-
 Profit before tax (including regulatory deferral account balances)3610.475428.776967.9517777.4322281.59
 Tax expense (including tax on movement in regulatory deferral account balances)(1039.02)1552.415338.092808.0310379.61
 Profit after tax4649.493876.361629.8614969.4011901.98
3Segment assets     
 - Generation368389.88371233.37351788.85368389.88351788.85
 - Others12788.1413845.2912650.5712788.1412650.57
 - Unallocated18180.0715040.8714388.4218180.0714388.42
 - Less: Inter segment elimination391.88383.57342.40391.88342.40
 Total398966.21399735.96378485.44398966.21378485.44
4Segment liabilities     
 - Generation44497.3444762.7141854.5744497.3441854.57
 - Others5960.925777.815711.085960.925711.08
 - Unallocated223161.36225601.01212423.03223161.36212423.03
 - Less:Inter segment elimination391.88383.57342.40391.88342.40
 Total273227.74275757.96259646.28273227.74259646.28

The operations of the Group are mainly carried out within the country and therefore, there is no reportable geographical segment.

CONSOLIDATED STATEMENT OF CASH FLOWS

(Rupee Crore)

ParticularsYear ended 31.03.2021
(Audited)
Year ended 31.03.2020
(Audited)
A.CASH FLOW FROM OPERATING ACTIVITIES  
 Profit before tax16998.9316377.51
 Add: Net movement in regulatory deferral account balances (net of tax)1903.194872.01
 Add: Tax on net movement in regulatory deferral account balances387.501032.07
 Profit before tax including movements in regulatory deferral account balances19289.6222281.59
 Adjustment for:  
 Depreciation, amortisation and impairment expense12450.3110356.16
 Provisions907.54421.12
 Special rebate to beneficiaries - exceptional items(1512.19)-
 Share of net profits of joint ventures accounted for using equity method(683.87)(405.40)
 Deferred revenue on account of government grants477.38(91.54)
 Deferred foreign currency fluctuation asset527.46(1072.34)
 Deferred income from foreign currency fluctuation(412.13)1340.04
 Regulatory deferral account debit balances(2290.69)(5904.08)
 Fly ash utilisation reserve fund19.88(38.39)
 Exchange differences on translation of foreign currency cash and cash equivalents-0.03
 Finance costs9162.748060.61
 Unwinding of discount on vendor liabilities61.4056.24
 Interest income/Late payment Surcharge/Income on investments(3390.34)(1986.27)
 Dividend income(9.00)(4.80)
 Provisions written back(64.19)(484.06)
 Loss on disposal of investment accounted through equity method15.88-
 Profit on de-recognition of property, plant and equipment(3.36)(12.59)
 Loss on de-recognition of property, plant and equipment137.2764.19
  15394.0910298.92
 Operating profit before working capital changes34683.7132580.51
 Adjustment for:  
 Trade receivables1805.87(7086.60)
 Inventories2032.27(2309.68)
 Trade payables, provisions, other financial liabilities and other liabilities(24.25)1524.12
 Loans, other financial assets and other assets(2985.25)2502.01
  828.64(5370.15)
 Cash generated from operations35512.3527210.36
 Income taxes (paid) / refunded(3068.29)(3320.69)
 Net cash from/(used in) operating activities - A32444.0623889.67
B.CASH FLOW FROM INVESTING ACTIVITIES  
 Purchase of property, plant and equipment & intangible assets(23312.34)(18230.44)
 Disposal of property, plant and equipment & intangible assets30.36167.93
 Investment in mutual funds(499.99)-
 Investment in joint venture companies(118.78)(764.98)
 Consideration paid towards acquisition of NEEPCO and THDCIL-(11500.00)
 Business combination126.69-
 Interest income/Late payment Surcharge/Income on investments received4186.631045.63
 Dividend received9.004.80
 Income tax paid on investing activities(637.37)(326.97)
 Bank balances other than cash and cash equivalents(818.65)(24.09)
 Net cash from/(used in) investing activities - B(21034.45)(29628.12)
C.CASH FLOW FROM FINANCING ACTIVITIES  
 Proceeds from non-current borrowings35361.9733653.14
 Repayment of non-current borrowings(23912.83)(9583.31)
 Proceeds from current borrowings(591.61)(812.62)
 Payment of lease obligations(57.03)(78.71)
 Interest paid(13307.37)(13399.15)
 Buy back of Equity Share Capital(2763.82)-
 Dividend paid(5778.42)(3133.37)
 Tax on dividend-(641.72)
 Net cash from/(used in) financing activities - C(11049.11)6004.26
    
D.Exchange differences on translation of foreign currency cash and cash equivalents-(0.03)
 Net increase/(decrease) in cash and cash equivalents (A+B+C+D)360.50265.78
 Cash and cash equivalents at the beginning of the year589.52323.74
 Cash and cash equivalents at the end of the year950.02589.52

Notes to Consolidated Financial Results:

1. The above consolidated financial results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 19 June 2021 and approved by the Board of Directors in their meeting held on the same date.

2. The consolidated financial statements of the Company for the year ended 31 March 2021 have been prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013. The statutory auditors have issued unmodified opinion on these consolidated financial statements. The audited accounts are subject to review by the Comptroller and Auditor General of India under Section 143(6) of the Companies Act, 2013.

3. The subsidiary and joint venture companies considered in the consolidated financial results are as follows:

a)Subsidiary CompaniesOwnership (%)
1NTPC Electric Supply Company Ltd.100.00
2NTPC Vidyut Vyapar Nigam Ltd.100.00
3Kanti Bijlee Utpadan Nigam Ltd.100.00
4Nabinagar Power Generating Company Ltd.100.00
5Bhartiya Rail Bijlee Company Ltd.74.00
6Patratu Vidyut Utpadan Nigam Ltd.74.00
7North Eastern Electric Power Corporation Ltd. (NEEPCO)100.00
8THDC India Limited (THDCIL)74.496
9NTPC Mining Ltd.100.00
10NTPC EDMC Waste Solutions Private Ltd.*74.00
11NTPC Renewable Energy Ltd.**100.00
12Ratnagiri Gas and Power Private Ltd.***86.49
b)Joint Venture Companies 
1Utility Powertech Ltd.50.00
2NTPC GE Power Services Private Ltd.#50.00
3NTPC SAIL Power Company Ltd.50.00
4NTPC Tamilnadu Energy Company Ltd.50.00
5Aravali Power Company Private Ltd.50.00
6Meja Urja Nigam Private Ltd.#50.00
7NTPC BHEL Power Projects Private Ltd.#50.00
8National High Power Test Laboratory Private Ltd.#20.00
9Transformers and Electricals Kerala Ltd.#44.60
10Energy Efficiency Services Ltd.#47.15
11CIL NTPC Urja Private Ltd.#50.00
12Anushakti Vidhyut Nigam Ltd.#49.00
13Hindustan Urvarak and Rasayan Ltd.29.67
14Konkan LNG Ltd.*** (upto 23 February 2021)#14.82
15Trincomalee Power Company Ltd.#50.00
16Bangladesh-India Friendship Power Company Private Ltd.#50.00

All the above Companies are incorporated in India except Companies at Sl. No.15 and 16 which are incorporated in Srilanka and Bangladesh respectively.

# The financial statements are un-audited and certifed by the management of respective companies and have been considered for consolidated financial statements of the Group. The figures appearing in their respective financial statements may change upon completion of their audit.

*During the year, the Company has incorporated a subsidiary company 'NTPC EDMC Waste Solutions Pvt. Ltd.', a joint venture with East Delhi Municipal Corporation (EDMC) on 1 June 2020, with equity participation of 74:26 respectively to develop and operate state of the art / modern integrated waste management & energy generation facility.

**During the year, the Company has incorporated a wholly owned subsidiary company, in the name of 'NTPC Renewable Energy Ltd.' on 7 October 2020, to undertake Renewable Energy Business.

***The Company has entered into a tripartite framework agreement with Ratnagiri Gas & Power Pvt. Ltd. (RGPPL), a Joint Venture Company of NTPC Limited, and its lenders on 31 December 2020 for settlement of RGPPL's outstanding debt liabilities as per the Composite Resolution Plan. As per the Resolution Plan, the Company has provided inter corporate loan of Rupee 885 crore to RGPPL for settlement of loan with the lenders. Further, 35.47% of equity held by lenders in RGPPL have been transferred to the Company as a part of the Resolution Plan at nominal value. Consequently, the Company’s equity shareholding in RGPPL has increased from 25.51% to 60.98% on 31 December 2020 and RGPPL has become a subsidiary company of NTPC Limited with effect from 31 December 2020.

Further, the Company has executed Share Purchase Agreements with GAIL (India) Limited (GAIL) on 23 February 2021, for purchase of GAIL's share (25.51%) in RGPPL and Sale of NTPC's share (14.82%) (on fully dilutive basis) in Konkan LNG Ltd. (KLL) at a nominal value of Rupee1/-. After transfer of shares as per the Share Purchase Agreements, NTPC has exited from KLL and NTPC's shareholding in RGPPL has become 86.49% with effect from 23 February 2021.

4. a) (i) The Central Electricity Regulatory Commission (CERC) notified the CERC (Terms and Conditions of Tariff) Regulations, 2019 vide Order dated 7 March 2019 (Regulations, 2019) for determination of tariff for the tariff period 2019-2024. Pending issue of provisional/final tariff orders with effect from 1 April 2019, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. In case of new projects, which got commercialised from 1 April 2019 and projects where tariff approved and applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in tariff petitions. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed is Rupee 101,959.08 crore (31 March 2020: Rupee 98,705.70 crore).

(ii) Sales have been provisionally recognized at Rupee 102,861.88 crore (31 March 2020: Rupee 98,940.49 crore) on the said basis.

b) Sales include Rupee (-) 1,101.47 crore (31 March 2020: Rupee 1,768.88 crore) on account of income tax recoverable from / (refundable to) the beneficiaries as per Regulations, 2004 due to reversal of tax provisions created in the previous year pursuant to ‘Vivad se Vishwas Scheme’ (VsVS) introduced by the government vide ‘The Direct Tax Vivad Se Vishwas Act, 2020 for settlement of pending income tax disputes. Sales also include Rupee 95.08 crore (31 March 2020: Rupee 92.79 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

c) Sales include Rupee 1,185.02 crore (31 March 2020: Rupee 60.93 crore) pertaining to earlier years on account of revision of energy charges due to grade slippages and other adjustments.

d) Revenue from operations for the year ended 31 March 2021 include Rupee 7,143.81 crore (31 March 2020: Rupee 7,303.06 crore) on account of sale of energy through trading.

5. On 7 February 2021, a massive unprecedented flood consisting of debris and muck, silt, boulders, rock pieces, etc. caused by glacier burst in the upstream of the project in the Himalayas, hit a part of the Company’s under construction 520 MW hydropower project in the state of Uttarakhand. This resulted in large scale inundation and silting at the project site, especially the barrage intake structure, desilting chamber/basin and adjoining facilities including their approach. However, the main power house and dam was not significantly affected by the floods. Most of the mechanical and electrical equipment are in safe condition.

Industry Experts engaged by the Company including experienced officials of the Company, are preparing a comprehensive assessment -cum- action plan for restoration of the project. It is anticipated that the restoration work may take time up to the end of the next financial year i.e. 2021-22, which is being closely monitored by the Company. Insurance cover is available for the loss/damage caused. The company is committed to the completion of the project at the earliest.

The carrying cost of the project as at 31 March 2021 is Rupee 5,337.69 crore (31 March 2020: Rupee 4,868.79 crore). Damage to the project due to the calamity is indemnifiable as stated above and Management is of the view that there would not be any material impact on the financials and confident that any additional expenditure consequent to the natural calamity, would be covered as part of project cost as per Tariff Regulations, hence no adjustment is considered necessary in respect of the carrying value of the project.

6. The Company is executing a hydro power project in the state of Uttarakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttarakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 31 March 2021 is Rupee 163.86 crore (31 March 2020: Rupee 163.40 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no adjustment is considered necessary in respect of the carrying value of the project.

7. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's project consisting of three units of 800 MW each, was challenged before the National Green Tribunal (NGT). The NGT disposed off the appeal, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgement of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. All the units of the project have been declared commercial in the earlier years. The carrying cost of the project as at 31 March 2021 is Rupee 15,115.02 crore (31 March 2020: Rupee 15,662.28 crore). Management is confident that the approval for the project shall be granted, hence no adjustment is considered necessary in respect of the carrying value of the project.

8. The Company is executing a thermal power project consisting of two units of 800 MW each in the State of Telangana. The project construction commenced in the year 2016 after obtaining the requisite approval and Environment Clearance (EC) from MOEF&CC (Ministry of Environment, Forest and Climate Change). On 27 May 2021, the National Green Tribunal (NGT) has passed an order instructing MOEF&CC to keep the EC granted for the project in abeyance for a period of seven months or till the period the re-appraisal is done and addtional conditions imposed by the MOEF&CC, whichever is earlier. NGT has further directed the MOEF&CC to conduct additional studies pertaining to Environment Impact Assessment of the project, to be carried out through the company, for further assessment by its Expert Appraisal Committee (EAC) and get recommendations of the EAC for imposing additional conditions by the MOEF&CC, if any, on the company for allowing the units to operate. The Company has already obtained advice of prominent legal experts and is accordingly in the process of filing an appeal before appropriate judicial forum against the directions of NGT. Both the units of the project are in advanced stage of construction and commissioning of the units is envisaged in the next year. The carrying cost of the project as at 31 March 2021 is Rupee 9,376.31 crore (31 March 2020: Rupee 8,017.48 crore). Management is confident that the approval for the continuation of the project shall be granted, hence no adjustment is considered necessary in respect of the carrying value of the project.

9. An amount of Rupee 700.30 crore (31 March 2020: Rupee 749.01 crore) has been incurred upto 31 March 2021 in respect of one of the hydro power projects of the Company, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), Government of India (GOI), which includes Rupee 449.88 crore (31 March 2020: Rupee 439.57 crore) in respect of arbitration awards challenged by the Company before the Hon'ble High Court of Delhi. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against provisions made in this regard. 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.

10. The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years, after which it was to be transferred to the Company at Rupee 1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. Based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India, an amount of Rupee 356.31 crore was paid upto 31 March 2019.

Further, the Arbitral Tribunal had awarded a claim of Rupee 1,891.09 crore plus applicable interest in favour of the operator, during the financial year 2018-19. The Company aggrieved by the arbitral award and considering legal opinion obtained, had filed an appeal before the Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.

In the financial year 2019-20, against the appeal of the Company, Hon'ble High Court directed the Company to deposit Rupee 500.00 crore with the Registrar General of the Court. The said amount was deposited with the Hon'ble High Court on 5 November 2019. Hon'ble High Court vide its order dated 8 January 2020 directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner and also directed release of Rupee 500.00 crore to the operator by the Registrar General subject to verification of bank guarantee and outcome of the application of the Company for formal handing over of the infrastructure. On 17 January 2020 unconditional BG was submitted by the operator to Registrar General and Rupee500.00 crore was released to the operator by the Hon’ble High Court. As per order of Hon'ble High Court, formal handing over of the infrastructure started on 20 January 2020 at the project site. However, due to certain local administrative issues initially and further due to Covid-19 pandemic, Local Commissioner’s visit had to be deferred.

In view of delay in the handover exercise, NTPC had filed an Application in Hon'ble High Court praying to pass further directions to operator in this regard. Hon’ble High Court on 11 November 2020 disposed off the application requesting the Ld. Local Commissioner appointed by the Court, to visit the project site expeditiously preferably within 2 weeks and carry out the commission. The handing over exercise has been delayed due to operator's issues with local labours at the site and Covid situation. Date of hearing at Hon'ble High Court of Delhi has been adjourned several times in light of restricted functioning of the Hon'ble High Court and now stands adjourned till 15 July 2021 in view of the current Covid-19 situation.

Pending final disposal of the appeal by the Hon’ble High Court, considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and Significant Accounting Policies of the Company, provision has been updated by interest to Rupee 38.09 crore (31 March 2020: Rupee 37.92 crore) and the balance amount of Rupee 2,153.57 crore (31 March 2020: Rupee 2,014.84 crore) has been considered as contingent liability.

11. The Group is mainly in the business of generation and sale of electricity which is an essential service as emphasized by MOP, GOI. During the outbreak of COVID-19, including recent surge in number of cases, the Company has ensured the availability of its power plants to generate power and has continued to supply power during the period of lockdown. In line with the directions of MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under the Atmanirbhar Bharat Special Economic and Comprehensive package, to allow a rebate of between 20%-25% on the capacity charges during the lock down period subject to approval of the Board. A rebate of Rupee 1,512.19 crore has been allowed in the financial year 2020-21. The amount has since been accounted for and disclosed as exceptional item.

CERC issued an order dated 3 April 2020 whereby it was directed that Late Payment Surcharge (LPSC) shall apply at a reduced rate of 12% p.a. instead of the normal rate of 18% p.a. on the payments becoming overdue during the period from 24 March 2020 to 30 June 2020 to contain the impact of COVID-19. Further, GOI has notified Electricity (Late Payment Surcharge) Rules, 2021 on 22 February 2021.These rules envisage that base rate of LPSC to be considered as SBI one year MCLR, as on 1 April of the financial year, plus five percent. The rate of LPSC shall be increased by 0.5 percent for every month of delay, provided that the LPSC shall not be more than 3 percent higher than the base rate at any time.

Further, under the Atmanirbhar Bharat package, the Company has deferred the capacity charges to DISCOMS for the lockdown period for the power not scheduled to be payable without interest after the lock down period in three equal monthly installments. The impact on profit for the the year due to the reduction in LPSC rate and deferment of capacity charges, is not material.

The demand for power is continuously increasing with increase in economic activities in the Country, although demand may get impacted in short term due to lock downs in certain parts of the country.The Management does not anticipate any material medium to long-term impact on the financial position of the Group. The Group will continue to closely monitor any material changes to the future economic conditions and take appropriate remedial measures as needed to respond to the Covid related risks. if any.

12. During the year ended 31 March 2021, one thermal unit of 660 MW at Khargone w.e.f. 4 April 2020, one thermal unit of 800 MW at Lara w.e.f. 7 November 2020, 8 MW solar PV capacity at Auraiya w.e.f. 10 November 2020, 7 MW solar PV capacity at Auraiya w.e.f. 4 December 2020, 140 MW solar PV capacity at Bilhaur w.e.f. 18 January 2021, 5 MW solar PV capacity at Auraiya w.e.f. 20 February 2021, one thermal unit of 800 MW at Gadarwara w.e.f. 1 March 2021 and 70 MW solar PV capacity at Bilhaur w.e.f. 28 March 2021 have been declared commercial. Further, Dulanga Captive Coal Mine of the Company has been declared commercial w.e.f. 1 October 2020. Further, four units of 150 MW each at Kameng Hydro Electric Project w.e.f. 17 June 2020, 1 July 2020, 22 January 2021 and 12 February 2021 respectively of NEEPCO and 50 MW at Kasargod Solar Project w.e.f. 31 December 2020 and 24 MW Dhukwan small hydro on 5 May 2020 of THDCIL, have been declared commercial. Further, the operations of 460 MW Talcher Thermal Power Station of the Company have been discontinued w.e.f. the end of 31 March 2021.

13. During the quarter, the Company has paid an interim dividend of Rupee 3.00 per equity share (par value Rupee 10/- each) for the financial year 2020-21. The Board of Directors has recommended final dividend of Rupee 3.15 per equity share (par value Rupee 10/- each). The total dividend (including interim dividend) for the financial year 2020-21 is Rupee 6.15 per equity share (par value Rupee 10/- each).

14. Pursuant to the approval of Board of Directors for buyback of equity shares in its meeting held on 2 November 2020, the Company has bought back 19,78,91,146 equity shares of the Company for an aggregate amount of Rupee 2,275.75 crore being 2% of the total paid up equity share capital at Rupee 115.00 per equity share. The settlement of all valid bids was completed on 30 December 2020 and the equity shares bought back were extinguished on 1 January 2021. Accordingly, the paid up equity share capital has been reduced by Rupee 197.89 crore and other equity is reduced by Rupee 2,567.02 crore (including tax on buy back of shares of Rupee 484.06 crore and other buyback expenses of Rupee 4.01 crore (net of tax)). Further, earnings per share has been adjusted on account of buy back of shares.

15. The GOI introduced Vivad se Vishwas Scheme (VsV Scheme) through ‘The Direct Tax Vivad Se Vishwas Act, 2020’. During the previous year, the Company had created an additional tax provision amounting to Rupee 2,661.47 crore as it proposed to settle all its pending Income Tax disputes for fourteen years by opting for the VsVs scheme. During the year, the Company decided to settle its pending disputes for three years only, under the VsVs scheme, for which the Company is in the process of completion of procedural formalities. Accordingly, excess tax provision amounting to Rupee 1,889.05 crores has been written back during the quarter ended 31 March 2021.

16. Formula used for computation of coverage ratios DSCR = Earning before Interest, Depreciation/amortisation, Tax and Exceptional items /(Interest net of transfer to expenditure during construction + Principal repayments of the long term borrowings excluding prepayments made out of refinancing arrangements) and ISCR = Earning before Interest, Depreciation/amortisation, Tax and Exceptional items/(Interest net of transfer to expenditure during construction).

17. The Company has maintained required asset cover as per the terms of offer document/ Information Memorandum and/or Debenture Trust Deed, including compliance with all the covenants, in respect of the listed non-convertible debt securities.

18. Figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year.

19. Previous periods figures have been reclassified wherever considered necessary.

 

For and on behalf of the Board of Directors
NTPC Limited

Place: New Delhi
Date: 19 June 2021

(A.K.Gautam)
DIRECTOR (FINANCE)
DIN:08293632