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Audited Financial Results for the Year ended 31st March 2010

(Rs./Lakh)
Sl. Particulars Stand Alone Consolidated
Quarter ended 31.03.2010 (Unaudited) Quarter ended 31.03.2009 (Unaudited) Year ended 31.3.2010 (Audited) Year ended 31.3.2009 (Audited) Year ended 31.3.2010 (Audited) Year ended 31.3.2009 (Audited)
1 2 3 4 5 6 7 8
1 (a) Net Sales (Net of Electricity Duty) 1235339 1144578 4632259 4192373 4825641 4266132
(b) Other Operating Income 37815 74196 189873 217567 193211 226294
2 Expenditure
(a) Fuel Cost 834598 801583 2946274 2711069 3018766 2734645
(b) Employees Cost 74561 62025 241236 246313 252300 253251
(c) Depreciation 73216 72639 265006 236448 289438 249489
(d) Other Expenditure 59606 58984 202710 195209 247117 223864
Total (a+b+c+d) 1041981 995231 3655226 3389039 3807621 3461249
3 Profit from Operations before Other Income, Interest & Exceptional Items (1-2) 231173 223543 1166906 1020901 1211231 1031177
4 Other Income 24950 26709 102533 114668 101483 113893
5 Profit before Interest & Exceptional Items (3+4) 256123 250252 1269439 1135569 1312714 1145070
6 Interest & Finance charges 48179 54039 180893 199622 207803 214346
7 Profit after Interest but before Exceptional Items (5-6) 207944 196213 1088546 935947 1104911 930724
8 Exceptional items - - - - - -
9 Profit(+)/Loss(-) from Ordinary Activities before Tax (7+8) 207944 196213 1088546 935947 1104911 930724
10 Tax Expenses:
(a) Current Tax (9762) (15623) 194544 113834 197908 119430
(b) Deferred Tax 15941 1043 20913 (44880) 22963 (45203)
(c) Fringe Benefit Tax (FBT) 0 585 269 2098 270 2186
Total (a+b+c) 6179 (13955) 215726 71052 221141 76413
Less: Deferred Tax Recoverable / Payable - 1043 - (44880) - (45215)
FBT transferred to Expenditure during Construction / Development of coal mines - 84 - 115 (5) 150
Tax Expenses (Net) 6179 (15122) 215726 115817 221146 121478
11 Net Profit(+)/ Loss(-) from ordinary activity after tax (9-10) 201765 211335 872820 820130 883765 809246
12 Extraordinary Items (Net of tax expenses) - - - - - -
13 Net Profit(+)/ Loss(-) for the year before Minority Interest (11-12) 201765 211335 872820 820130 883765 809246
14 Minority Interest in Consolidated Profit - - - - - (10)
15 Net Profit (+)/ Loss (-) for the year after Minority Interest (13-14) 201765 211335 872820 820130 883765 809256
16 Paid-up Equity Share Capital
(Face value of share Rs. 10/- each)
824546 824546 824546 824546 824546 824546
17 Paid up Debt Capital     3779702 3456775    
18 Reserves excluding revaluation reserve as per Balance Sheet - - 5419196 4912460 5438227 4916208
19 Debenture Redemption Reserve     198672 168894    
20
 
Earning per share - (EPS in Rs.)
(a) Basic and diluted EPS before Extra-ordinary items (not annualised) 2.45 2.57 10.59 9.95 10.72 9.81
(b) Basic and diluted EPS after Extra-ordinary items (not annualised) 2.45 2.57 10.59 9.95 10.72 9.81
21 Debt Equity Ratio     0.61 0.60    
22 Debt Service Coverage Ratio (DSCR)     3.92 3.67    
23 Interest Service Coverage Ratio (ISCR)     13.64 10.19    
24
 
Public Shareholding
(a) Number of shares 1278103220 865830000 1278103220 865830000 1278103220 865830000
(b) %age of share holding 15.50 10.50 15.50 10.50 15.50 10.50
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 7379634400 6967361180 7379634400 6967361180 7379634400
- 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% 89.50% 84.50% 89.50% 84.50% 89.50%

SUMMARY OF ASSETS AND LIABILITIES AS AT 31st MARCH 2010

Particulars Stand Alone Consolidated
Year ended 31.03.2010 (Audited) Year ended 31.03.2009 (Audited) Year ended 31.03.2010 (Audited) Year ended 31.03.2009 (Audited)
SOURCES OF FUNDS
Shareholders’ Funds:
(a) Capital 824546 824546 824546 824546
(b) Reserves and Surplus 5419196 4912460 5438227 4916208
Deferred Revenue from Advance Against Depreciation 161084 193601 161084 193601
Deferred Income from Foreign Currency Fluctuation - 60771 - 60765
Loan Funds
(a) Secured Loans 907992 896956 1537654 1321170
(b) Unsecured Loans 2871710 2559819 2877210 2561094
Deferred Foreign Exchange Fluctuation Liability 6105 5452 6105 5445
Deferred Tax Liability (net) after Recoverable 20925 13 22971 13
Minority Interest -   27893 16619
TOTAL 10211558 9453618 10895690 9899461
APPLICATION OF FUNDS
Goodwill on Consolidation - - 62 62
Fixed Assets incl. CWIP and Construction Stores & Advances 6686560 5934263 7648609 6589484
Investments 1480709 1398349 1177761 1169596
Deferred Foreign Currency Fluctuation Assets 36517 97344 36525 97349
Current Assets, Loans And Advances        
(a) Inventories 334771 324342 353299 336157
(b) Sundry Debtors 665146 358418 708080 381892
(c) Cash and Bank balances 1445948 1627163 1605304 1725045
(d) Other current assets 84404 97946 86804 99336
(e) Loans and Advances 551311 684653 568062 703888
Less: Current Liabilities and Provisions        
(a) Liabilities 768758 743907 975798 871909
(b) Provisions 307058 324953 315027 331439
Net Current Assets 2005764 2023662 2030724 2042970
Deferred Expenses from Foreign Currency Fluctuation 2008 - 2009  
TOTAL 10211558 9453618 10895690 9899461

AUDITED SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE YEAR ENDED 31st March 2010

Sl. Particulars Stand Alone Consolidated
Quarter ended 31.03.2010 (Unaudited) Quarter ended 31.03.2009 (Unaudited) Year ended 31.03.2010 (Audited) Year ended 31.03.2009 (Audited) Year ended 31.03.2010 (Audited) Year ended 31.03.2009 (Audited)
1 2 3 4 5 6 7 8
1 Segment Revenue (Net Sales)
- Generation 1230529 1140489 4616867 4179119 4774989 4227388
- Others 4810 4089 15392 13254 50652 38744
- Total 1235339 1144578 4632259 4192373 4825641 4266132
2 Segment Results (Profit before Tax and Interest)
- Generation 197550 159674 1015253 905305 1049376 902317
- Others 1664 1522 5816 4184 16085 12811
- Total 199214 161196 1021069 909489 1065461 915128
Less
(i) Unallocated Interest and Finance Charges 28584 31979 111682 208630 138312 220701
(ii) Other Unallocable expenditure net of unallocable income (37314) (66996) (179159) (235088) (177762) (236297)
Total Profit before Tax 207944 196213 1088546 935947 1104911 930724
3 Capital Employed (Segment Assets - Segment Liabilities)
- Generation 3945020 3383665 3945020 3383665 4373991 3596247
- Others 5445 3226 5445 3226 33623 18185
- Un-allocated 2293277 2350115 2293277 2350115 1883052 2142941
- Total 6243742 5737006 6243742 5737006 6290666 5757373

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.* 29.65
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.* 44.60
15 Energy Efficiency Services Ltd.* 25
16 National High Power Test Laboratory Private Ltd. 25
All the above companies are incorporated in India.
* The financial statements are un-audited.
2 a)

The Central Electricity Regulatory Commission (CERC) notified the Tariff 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.4,447,393 lakhs during the year ended 31st March 2010 on the basis of principles enunciated in the said Regulations on the capital cost considering the orders of Appellate Tribunal for Electricity (ATE) for the tariff period 2004-2009 including as referred to in para 2 (e).

The Tariff 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 during the year ended 31st March 2010 on this basis is Rs.4,376,513 lakhs.

b) For the units commissioned during the year, pending determination of tariff by CERC, sales of Rs.173,540 lakhs have been provisionally recognised on the basis of principles enunciated in the Tariff Regulations, 2009. The amount provisionally billed for such units is Rs.153,650 lakhs.
c) Sales of (-) Rs.60,060 lakhs (previous year Rs.102,004 lakhs) pertaining to previous years has been recognized based on the orders issued by the CERC/ATE.
d) In terms of Regulation 39, CERC Tariff Regulations, 2009, notified by the CERC, the Company has determined the amount of the Deferred Tax Liability (net) materialised during the year pertaining to the period upto 31st March 2009 by identifying the major changes in the elements of Deferred Tax Liability/Asset, as recoverable from the beneficiaries and accordingly a sum of Rs.24,847 lakhs (net) has been recognised as Sales during the year.
e) 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 ATE. The ATE disposed off the appeals favourably directing the CERC to revise the tariff orders as per the directions and methodology given. The CERC filed an appeal with the Hon’ble Supreme Court of India on some of the issues decided by the ATE which is pending. The Company has submitted that it would not press for determination of the tariff by the CERC as per ATE orders pending disposal of the appeal by the Supreme Court.
  Considering expert legal opinions obtained that, it is reasonable to expect ultimate collection, the sales for the tariff period 2004-2009 amounting to Rs.104,429 lakhs were recognised in earlier years based on provisional tariff worked out by the Company as per the methodology and directions as decided by the ATE. Due to further CERC tariff orders received during the year, the provisional sales of Rs.104,429 lakhs has now been reduced to Rs.102,560 lakhs. The sales accounted as above is subject to final outcome of the decision of the Hon’ble Supreme Court of India and consequential effect, if any, will be given in the financial statements upon disposal of the appeal.
3 Sales includes (-) Rs.71,993 lakhs (previous year Rs.75,828 lakhs) on account of income tax recoverable from customers as per CERC Regulations, 2004 and Rs.24,847 lakhs (previous year Nil) on account of deferred tax recoverable from customers as per CERC Regulations, 2009.
4 Provision for current tax for the year is net of tax related to earlier years amounting to Rs.52,539 lakhs (Previous year Rs.139,531 lakhs).
5 During the year 2009-10, one unit of 490 MW at Dadri and one unit of 500 MW at Kahalgaon of the Company have been declared commercial w.e.f 31st January 2010 and 20th March 2010 respectively.
6 The pay revision of the employees of the Company was due w.e.f. 1st January 2007.
Based on the guidelines issued by Department of Public Enterprises (DPE), Government of India (GOI), the pay revision of the executive category of employees has been approved during the year. Pending finalisation of pay revision in respect of employees in the non-executive category, provision of Rs.31,446 lakhs and Rs.65,896 lakhs (previous year Rs.17,670 lakhs and Rs. 34,450 lakhs) has been made for the year and upto year respectively on an estimated basis having regard to the guidelines issued by DPE. A sum of Rs.13,869 lakhs (previous year Rs.7,480 lakhs) paid as adhoc advance towards pay revision to the employees in the non-executive category is included in ‘Loans and Advances’ (Schedule 14).
7 Effect of changes in Accounting Policies:
a)

Tariff Regulations, 2009 issued by the CERC provide that the balance depreciable value of the each of the existing stations as on 1st April, 2009 shall be worked out by deducting the cumulative depreciation including the Advance Against Depreciation (AAD) as admitted by the CERC up to 31st March 2009 from the gross depreciable value of the assets thereby merging AAD with depreciation for tariff recovery. Under the said Tariff Regulations, the CERC also has notified the revised rates of depreciation and removed the provision for AAD.

In view of the change in CERC Tariff Regulations, 2009, the Company revised its accounting policy no. 12.1.2 and the amount of 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 assessed station-wise and wherever an excess has been determined as on 1st April 2009, the same amounting to Rs.31,147 lakhs has been recognised as sales during the year. In addition, Rs.530 lakhs has been recognised as sales during the year out of AAD consequent to this change.

b) Claims on the Company for price variation which were hitherto accounted for on acceptance. During the year, unsettled liabilities for price variation/exchange rate variation in case of contracts are accounted for on estimated basis as per terms of the contracts. Consequently, profit for the year is lower by Rs. 199 lakhs, fixed assets are higher by Rs.28,494 lakhs and current liabilities are higher by Rs.28,693 lakhs.
8 During the year, the deferred tax liability (net) and the deferred tax recoverable from the beneficiaries as at 31st March 2009 amounting to Rs.513,486 lakhs have been reviewed and restated to Rs.249,425 lakhs. In terms of Regulation 39, CERC Tariff Regulations, 2009, the Company has determined the amount of the deferred tax liability (net) materialised during the year pertaining to the period up to 31st March 2009 by identifying the major changes in the elements of deferred tax liability/asset, as recoverable from the beneficiaries. Accordingly, deferred tax liability (net) and the deferred tax recoverable from the beneficiaries as at 31st March 2010 works out to Rs. 304,940 lakh and Rs.284,024 lakhs respectively.

The net increase during the year in the deferred tax liability is Rs.20,906 lakhs (previous year decrease Rs.44,884 lakhs) has been debited to Profit & Loss Account.
9 Fixed assets, capital work-in-progress and construction stores and advances include Rs.67,647 lakhs in respect of one of the hydro power project, the construction of which has been suspended temporarily from 18th May 2009 on the advice of the Ministry of Power, GOI. Presently, the issue regarding resumption of the project is under consideration with the GOI. Pending decision, borrowing costs of Rs.2,374 lakhs have not been capitalised from the date of suspension.
10 The Company is executing a thermal power project in respect of which possession certificates for 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 2010 Rs.18,311 lakhs is included in Fixed Assets (Schedules 6,7 and 8). Management is confident of recovery of cost incurred, hence no provision is considered necessary.
11 During the year, ‘Further Public Offer’ of 412,273,220 equity shares of Rs.10/- each of the Company through an offer for sale by the President of India, acting through the Ministry of Power, GOI was made through the alternate book building process. Consequently, shareholding of the GOI reduced to 84.50% from 89.50%.
12 During the quarter, the Company has paid an interim dividend of Rs.3.00 per share (face value Rs.10/-each) for the year 2009-10. 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 2009-10 is Rs.3.80 per share (face value Rs.10/-each).
13 The audited accounts are subject to review by Comptroller and Auditor General of India under section 619(4) of the Companies Act, 1956.
14 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).
15 Information on investors complaints pursuant to clause 41 of Listing Agreements for the quarter ended 31st March 2010
Sl.No. Opening Balance Additions Disposals Closing Balance
No. of complaints 9 2883 2886 6
16 The above results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 17th May 2010 and approved by the Board of Directors in the meeting held on the same day.
17 Figures for the previous year have been regrouped/ rearranged wherever necessary.

For and on behalf of Board of Directors

Place: New Delhi
Date: 17thMay 2010
sd/-
(A.K.SINGHAL)
DIRECTOR (FINANCE)