National Thermal Power Corporation (NTPC)

Submitted by:
Akash
Nishtha Wadhwa
Shelly Jain
Varun Chugh
Yamini Sharma

COMPANYS PROFILE
Indias largest power company.
NTPC was set up in 1975 to accelerate power development in India. It is
emerging as a diversified power major with presence in the entire value chain
of the power generation business. Apart from power generation, which is the
mainstay of the company.
NTPC has already ventured into consultancy, power trading, ash utilisation
and coal mining. NTPC has been ranked 337 th in the 2012, Forbes Global
2000 ranking of the Worlds biggest companies.
Became a Maharatna company in May, 2010, one of the only four
companies to be awarded this status.
It was incorporated with objective of planning, promoting and organizing
an integrated development of thermal power in the country.
Today NTPC has power generating capacity in all the four major power
regions of the country.

Financial Results
Particulars

31-3-2015
(in crores)

31-3-2014
(in crores)

Profit of the year

10,290.86

10,974.74

Earning per equity

share(par value Rs
10 each)

12.48

13.31

REPORT ON CORPORATE
GOVERNANCE
Number of Board Meetings: 13.
Composition of Board of Director:
1. Seven Functional Directors including the chairman
and managing director.
2. Two Government nominee directors.
3. Nine independent directors as per the requirement of
listing agreement.
. Company has 3 tiers of corporate Governance
structure: The board of directors, committee of
director and executive management.
. Whistle Blower Policy: To report any suspected or
confirmed incident of fraud/misconduct.

Board of Directors Report

Capital expenditure for the year 2014-2015 was Rs. 23,239.25 crore as against
the target of Rs. 22,400 crore.
100% realization of current bills from customers.
Recovered total income of Rs. 75,362.37 crore as compared to Rs. 74,664.61
crore in the financial year 2013-14.
Net profit after tax Rs. 10,290.86 crores.
Dividend of Rs. 2.50 per share comprising interim dividend of RS. 0.75 per
equity share paid in Feb 2015 and recommendation of final dividend of Rs. 1.75
per equity share for the year 2014-15.
Customer relationship Management initiative has been taken by the company
towards strenthening relationship with the customers.

Significant Accounting Policies

The financial statements are prepared on accrual basis of accounting under Historical
cost Convention.
Estimates and assumptions that affect amount of assets, liabilities, revenue and
expenses are taken on a reasonable and prudent basis.
Grants-in-aid received from the central government or other authorities towards
capital expenditure are treated initially as capital reserve and subsequently adjusted as
income in the same proportions as the depreciation written off on these assets.
FIXED ASSETS:
a.) As tangible/intangible assets are taken at historical cost less accumulated
depreciation/amortisation.
b.) Expenditure on renovation and modernisation of tangible assets resulting in
increased life and/ or efficiency of an existing asset is added to the cost of related
assets.

 Expenditure on exploration and development of new coal deposits is

capitalized as Development of coal mines under capital work in progress.
Foreign currency transactions are initially recorded at the rates of exchange
ruling at the date of transactions but at the balance sheet date, foreign currency
items are reported at closing rate.
a) Current investments are valued at lower of cost and fair value.
b) Long term investments are carried at cost and premium paid on long term
investments is amortized over a period remaining to maturity.
Depreciation on assets of the coal mining, oil etcis changed on straight line
method.

Related Parties Transaction

Transactions with Subsidiaries.
Transactions with Holding
Companies.
Transactions with joint ventures.
Transactions with Key Management
Personnel.
Transactions with Fellow Subsidiaries
and Joint Venture.

Voluntary Disclosures
Under the clause 49 of listing agreement,
all related party transactions require
approval of audit committee.
All material related party transactions
shall require approval of shareholders
through special resolution.
The company has complied with all the
requirements of listing agreement, stock
exchanges and SEBI.