STATEMENT OF AUDITED STANDALONE & CONSOLIDATED RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2020

STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2020

(Crore)

Sl. No.	Particulars		Quarter ended 31.03.2020 (Unaudited)	Quarter ended 31.12.2019 (Unaudited)	Quarter ended 31.03.2019 (Unaudited)	Year ended 31.03.2020 (Audited)	Year ended 31.03.2019 (Audited)
1	2		3	4	5	6	7
1	Income
	(a) Revenue from operations		27246.88	23496.35	21222.39	97700.39	90307.43
	(b) Other income		1031.87	526.27	1323.22	2778.02	1872.13
	Total income (a+b)		28278.75	24022.62	22545.61	100478.41	92179.56
2	Expenses
	(a) Fuel cost		14988.41	12466.87	11990.67	54241.82	52493.74
	(b) Electricity purchased for trading		829.69	593.42	709.58	2776.44	2713.68
	(c) Employee benefits expense		1427.90	1164.74	1206.08	4925.60	4779.89
	(d) Finance costs		1836.91	1760.81	925.70	6781.97	4716.74
	(e)Depreciation and amortisation expense		2128.95	2319.81	1504.75	8622.85	7254.36
	(f)Other expenses		2683.12	2294.93	2671.66	8663.81	7548.63
	Total expenses (a+b+c+d+e+f)		23894.98	20600.58	19008.44	86012.49	79507.04
3	Profit before tax and Regulatory deferral account balances (1-2)		4383.77	3422.04	3537.17	14465.92	12672.52
4	Tax expense:
	(a)Current tax (refer Note 4)		3287.07	671.78	897.25	5153.46	2849.12
	(b)Deferred tax		1696.58	1353.28	(8086.33)	4028.49	(5767.83)
	Total tax expense (a+b)		4983.65	2025.06	(7189.08)	9181.95	(2918.71)
5	Profit after tax before Regulatory deferral account balances (3-4)		(599.88)	1396.98	10726.25	5283.97	15591.23
6	Net movement in Regulatory deferral account balances (net of tax)		1852.32	1598.16	(6375.93)	4828.84	(3841.34)
7	Profit for the period (5+6)		1252.44	2995.14	4350.32	10112.81	11749.89
8	Other comprehensive income
	Items that will not be reclassified to profit or loss
	(a)	Net actuarial gains/(losses) on defined benefit plans	(152.81)	(64.52)	(245.61)	(346.04)	(235.98)
	(b)	Net gains/(losses) on fair value of equity instruments	(21.36)	0.30	(23.28)	(41.64)	(16.74)
	Income tax on items that will not be reclassfied to profit or loss
	(a)	Net actuarial gains/(losses) on defined benefit plans	26.70	11.27	52.93	60.46	50.85
	Other comprehensive income (net of tax)		(147.47)	(52.95)	(215.96)	(327.22)	(201.87)
9	Total comprehensive income for the period (7+8)		1104.97	2942.19	4134.36	9785.59	11548.02
10	Paid-up equity share capital (Face value of share10/- each)		9894.56	9894.56	9894.56	9894.56	9894.56
11	Paid-up debt capital$					152693.62	127430.48
12	Other equity excluding revaluation reserve as per balance sheet					103674.88	97513.61
13	Net worth*					112980.96	106771.54
14	Debenture redemption reserve					7011.43	7902.43
15	Earnings per share (of 10/- each) - (not annualised) (including net movement in regulatory deferral account balances): Basic and Diluted (in)		1.27	3.03	4.40	10.22	11.88
16	Earnings per share (of 10/- each) - (not annualised) (excluding net movement in regulatory deferral account balances): Basic and Diluted (in)		(0.61)	1.41	10.84	5.34	15.76
17	Debt equity ratio					1.35	1.19
18	Debt service coverage ratio (DSCR)					2.07	2.21
19	Interest service coverage ratio (ISCR)					4.45	5.26

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

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Crore)

STANDALONE SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND YEAR ENDED 31 MARCH 2020

(Crore)

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

(Crore)

Notes to Standalone Financial Results:

1. The above results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 27 June 2020 and approved by the Board of Directors in their meeting held on the same day.
2. The standalone financial statements of the Company for the year ended 31 March 2020 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. 1. 1. The CERC notified the Central Electricity Regulatory Commission (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 for all stations, 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 projects declared commercial w.e.f. 1 April 2019 and projects where tariff applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in the tariff petitions. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed for the year ended 31 March 2020 is 91,339.38 crore (31 March 2019:88,278.09 crore).
      2. Sales for the year ended 31 March 2020 have been provisionally recognized at91,491.55 crore (31 March 2019: 89,007.64 crore) on the said basis.
   2. Sales for the year ended 31 March 2020 include31.59 crore (31 March 2019: (-)2,775.82 crore) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).
   3. Sales for the year ended 31 March 2020 include1,768.88 crore (31 March 2019: (-)0.02 crore) on account of income tax recoverable from / (refundable to) the beneficiaries as per Regulations, 2004. The current year amount is on account of income tax liability determined under Vivad se Vishwas Scheme notified under Direct Tax Vivad se Vishwas Act 2020. Sales also include79.97 crore (31 March 2019:82.68 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.
   4. Revenue from operations for the year ended 31 March 2020 include2,903.59 crore (31 March 2019:2,894.74 crore) on account of sale of energy through trading.
4. Provision for current tax for the year ended 31 March 2020 includes2,660.17 crore (31 March 2019: (-)105.88 crore) being tax related to earlier years. This includes additional tax provision amounting to2,661.47 crore, as the Company has decided to settle pending Income Tax disputes by opting under the Vivad se Vishwas Scheme notified by the Government through ‘The Direct Tax Vivad Se Vishwas Act, 2020’. The company is in the process of completion of procedural formalities under the scheme and settlement of pending balances will be carried out on completion of such formalities.
5. 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 2020 is15,662.28 crore (31 March 2019:15,598.80 crore). Management is confident that the approval for the project shall be granted, hence no provision is considered necessary.
6. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand 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 2020 is163.40 crore (31 March 2019:163.33 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.
7. An amount of 749.01 crore (31 March 2019:719.71 crore) has been incurred upto 31 March 2020 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), GOI, which includes439.57 crore (31 March 2019:413.40 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.
8. 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 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 of356.31 crore was paid upto 31 March 2019. In the previous year, the Arbitral Tribunal had awarded a claim of1,891.09 crore plus applicable interest in favour of the operator. 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. Considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, Significant Accounting Policies of the Company and the principle of conservatism, an amount of394.07 crore was estimated and provided for as at 31 March 2019 and balance amount of1,875.73 crore was disclosed as contingent liability, along with applicable interest.
   During the year, against the appeal of the Company, Hon'ble High Court vide its order dated 23 September 2019 held that subject to deposit of500 crore by the Company with the Registrar General of the Court within six weeks, execution of the impugned award shall remain stayed till the next date of hearing and upon handing over the entire infrastructure in terms of the contract by the operator to the Company, the Registrar General shall release the amount to the operator against a bank guarantee. 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 of500 crore to the operator by the Registrar General subject to the outcome of this 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 and500 crore was released to operator by the Hon’ble High Court. Further,356.31 crore paid to operator has been booked to fuel cost and the corresponding provision has been reversed during the current year.
   As per orders of Hon'ble High Court, formal handing over of the infrastructure has started on 20 January 2020 at the project site. However, due to certain law and order issues initially and further due to COVID-19 pandemic, Local Commissioner’s visit has been deferred.The handing over of the infrastructure facility has not yet completed.
   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 to37.92 crores as at 31 March 2020 (31 March 2019:394.07 crore) and the balance amount of2,014.84 crore (31 March 2019:1,875.73 crore) has been disclosed as contingent liability.
9. During the year, thermal power units of one 800 MW at Gadarwara w.e.f. 1 June 2019, one 800 MW at Lara w.e.f. 1 October 2019, one 660 MW at Tanda w.e.f. 7 November 2019, one 660 MW at Khargone w.e.f. 1 February 2020, one 800 MW at Darlipalli w.e.f. 1 March 2020 and one 250 MW at Barauni w.e.f. 1 March 2020 have been declared commercial. Further, the Pakri Barwadih Coal Mine has been declared commercial w.e.f. 1 April 2019.
10. During the quarter, the Company has paid an interim dividend of0.50 per equity share (par value10/- each) for the financial year 2019-20. The Board of Directors has recommended final dividend of2.65 per equity share (par value10/- each). The total dividend (including interim dividend) for the financial year 2019-20 is3.15 per equity share (par value10/- each).
11. The Company has adopted Ind AS 116 'Leases' effective 1 April 2019, using modified retrospective approach and therefore the comparatives have not been restated. On the date of initial application, the lease liability has been measured at the present value of the remaining lease payments and right of use assets has been recognized at an amount equal to the lease liabilities. Application of Ind AS 116 does not have any material impact on the financial results of the Company.
12. In pursuance to Section 115BAA of the Income Tax Act, 1961 announced by Government of India through Taxation Laws (Amendment) Act, 2019, the Company has an irrevocable option of shifting to a lower tax rate along with consequent reduction in certain tax incentives including lapse of the accumulated MAT credit. The Company has not opted for this option after evaluating the same and continues to recognize the taxes on income as per the earlier provisions.
13. 1. During the quarter, the Company has acquired legal and beneficial ownership of 3,60,98,09,800 equity shares held by the President of India in North Eastern Electric Power Corporation Ltd. (NEEPCO) and the acquisition of beneficial ownership in 600 equity shares held by the nominees of the President of India in NEEPCO (collectively representing 100% of the total paid up share capital of NEEPCO) for an aggregate consideration of4000.00 crore (Rupees Four Thousand Crore only).
    2. During the quarter, the Company has acquired legal and beneficial ownership of 2,73,09,406 equity shares held by the President of India in THDC India Limited (THDCIL) and the acquisition of beneficial ownership in 6 equity shares held by the nominees of the President of India in THDCIL (collectively representing 74.496% of the total paid up share capital of THDCIL) for an aggregate consideration of7500.00 crore (Rupees Seven Thousand Five Hundred Crore only).
       With the above, the Company has become the holding company and also a promoter of NEEPCO and THDCIL.
14. Due to outbreak of COVID-19 globally and in India, the Company has made an initial assessment of its likely adverse impact on business and its associated financial risks.The Company is in the business of generation and sale of electricity which is an essential service as emphasized by the Ministry of Power (MOP), Government of India (GOI). By taking a number of proactive steps and keeping in view the safety of all its stakeholders, the Company has ensured the availability of its power plants to generate power and has continued to supply power during the period of lockdown.
    On the directions of MOP, the Central Electricity Regulatory Commission (CERC) issued an order dated 3 April 2020 whereby it 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. if any delayed payment beyond 45 days from the date of presentation of the bills falls between 24 March 2020 and 30 June 2020. Accordingly, the LPSC for the year 2020-21 is expected to be lower by58.00 crore approximately.Further as per the directions of MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under theAtmanirbhar Bharat special economic and comprehensive package, the Company has decided to defer the capacity charges of2,064.00 crore to DISCOMs for the lock-down period on account of COVID-19 pandemic for the power not scheduled by the DISCOMs, to be payable without interest after the end of the lockdown period in three equal monthly instalments and has allowed a rebate of1,363.00 crore on the capacity charges billed during the lock-down period to DISCOMs on account of COVID-19, in the financial year 2020-21. These amounts are provisional and may vary due to reconciliation of related data. Due to the above, there is no material impact on the profits of the Company for the year ended 31 March 2020.
    The Company believes that the impact due to the outbreak of COVID-19 is likely to be short-term in nature and does not anticipate any medium to long-term risks in the Company's ability to continue as a going concern and meeting its liabilities as and when they fall due. Impact assessment of COVID-19 is a continuing process considering the uncertainty involved thereon. The company will continue to closely monitor any material changes to the future economic conditions.
15. Formula used for computation of coverage ratios DSCR = Earning before Interest, Depreciation, Tax and Exceptional items /(Interest net of transfer to expenditure during construction + Scheduled principal repayments of the long term borrowings) and ISCR = Earning before Interest, Depreciation, Tax and Exceptional items/(Interest net of transfer to expenditure during construction).
16. For all secured bonds issued by the Company, 100% security cover is maintained for outstanding bonds. The security has been created on property, plant and equipment through English/Equitable mortgage as well as hypothecation of movable assets of the Company.
17. 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.
18. Previous periods figures have been reclassified wherever considered necessary.

STATEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2020

(Crore)

Sl. No.	Particulars			Quarter ended 31.03.2020 (Unaudited)	Quarter ended 31.12.2019 (Unaudited)	Quarter ended 31.03.2019 (Unaudited)	Year ended 31.03.2020 (Audited)	Year ended 31.03.2019 (Audited)
1	2			3	4	5	6	7
1	Income
	(a) Revenue from operations			30201.08	26561.40	23800.23	109464.04	100286.54
	(b) Other income			1114.24	573.89	1625.90	2908.54	2246.51
	Total income (a+b)			31315.32	27135.29	25426.13	112372.58	102533.05
2	Expenses
	(a) Fuel cost			15804.09	13258.78	12601.79	57185.62	54395.78
	(b) Electricity purchased for trading			1447.51	1074.34	1336.31	5185.95	5288.12
	(c) Employee benefits expense			1624.04	1404.54	1561.86	5830.48	5816.65
	(d) Finance costs			2211.30	2144.71	1136.54	8116.85	5604.65
	(e)Depreciation and amortisation expense			2613.23	2782.41	1875.93	10356.16	8669.03
	(f)Other expenses			2984.85	2664.97	2741.04	9725.41	8105.12
	Total expenses (a+b+c+d+e+f)			26685.02	23329.75	21253.47	96400.47	87879.35
3	Profit before tax, Regulatory deferral account balances and Share of net profit of joint ventures accounted for using equity method (1-2)			4630.30	3805.54	4172.66	15972.11	14653.70
4	Share of net profits of joint ventures accounted for using equity method			50.26	84.09	266.56	405.40	672.17
5	Profit after tax before Regulatory deferral account balances (3+4)			4680.56	3889.63	4439.22	16377.51	15325.87
6	Tax expense:
	(a)		Current tax (refer Note 6)	3417.81	749.99	1022.68	5526.53	3287.44
	(b)		Deferred tax	1530.31	1293.58	(8487.87)	3821.01	(6067.38)
	Total tax expense (a+b)			4948.12	2043.57	(7465.19)	9347.54	(2779.94)
7	Profit after tax before Regulatory deferral account balances (5-6)			(267.56)	1846.06	11904.41	7029.97	18105.81
8	Net movement in Regulatory deferral account balances (net of tax)			1791.33	1579.39	(6743.02)	4872.01	(4071.32)
9	Profit for the period (7+8)			1523.77	3425.45	5161.39	11901.98	14034.49
10	Other comprehensive income
	(a)Items that will not be reclassified to profit or loss
		(i)	Net actuarial gains/(losses) on defined benefit plans	(171.80)	(67.02)	(269.32)	(372.10)	(238.93)
		(ii)	Net gains/(losses) on fair value of equity instruments	(21.36)	0.30	(23.28)	(41.64)	(16.74)
		(iii)	Share of other comprehensive income of joint ventures accounted for under the equity method	0.74	(0.34)	(0.67)	(0.50)	(1.07)
	Income tax on items that will not be reclassfied to profit or loss
		(i)	Net actuarial gains/(losses) on defined benefit plans	32.76	11.27	53.97	66.52	51.89
	(b)Items that will be reclassified to profit or loss
		(i)	Exchange differences on translation of foreign operations	31.40	3.11	(3.28)	40.00	11.67
	Other comprehensive income (net of tax) (a+b)			(128.26)	(52.68)	(242.58)	(307.72)	(193.18)
11	Total comprehensive income for the period (9+10)			1395.51	3372.77	4918.81	11594.26	13841.31
12	Profit attributable to owners of the parent company			1442.57	3332.42	5087.23	11600.23	13736.68
13	Profit attributable to non-controlling interest			81.20	93.03	74.16	301.75	297.81
14	Other comprehensive income/(expense) attributable to owners of the parent			(124.75)	(52.38)	(239.99)	(303.43)	(192.15)
15	Other comprehensive income/(expense) attributable to non controlling interest			(3.51)	(0.30)	(2.59)	(4.29)	(1.03)
16	Paid-up equity share capital (Face value of share10/- each)			9894.56	9894.56	9894.56	9894.56	9894.56
17	Paid-up debt capital$						184073.44	155689.38
18	Other equity excluding revaluation reserve as per balance sheet						108944.60	101461.65
19	Net worth*						118237.09	110715.71
20	Debenture redemption reserve						7700.97	8597.97
21	Earnings per share (of 10/- each) - (not annualised) (including net movement in regulatory deferral account balances): Basic and Diluted (in)			1.46	3.37	5.14	11.72	13.88
22	Earnings per share (of 10/- each) - (not annualised) (excluding net movement in regulatory deferral account balances): Basic and Diluted (in)			(0.35)	1.77	11.96	6.80	18.00
23	Debt equity ratio						1.56	1.41
24	Debt service coverage ratio (DSCR)						1.97	2.34
25	Interest service coverage ratio (ISCR)						4.34	5.31

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

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(Crore)

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

(Crore)

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

CONSOLIDATED STATEMENT OF CASH FLOWS

(Crore)

Notes to Consolidated Financial Results:

1. The above results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 27 June 2020 and approved by the Board of Directors in their meeting held on the same day.
2. The consolidated financial statements of the Company for the year ended 31 March 2020 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 Companies	Ownership (%)
   1	NTPC Electric Supply Company Ltd.	100.00
   2	NTPC Vidyut Vyapar Nigam Ltd.	100.00
   3	Kanti Bijlee Utpadan Nigam Ltd.	100.00
   4	Nabinagar Power Generating Company Ltd.	100.00
   5	Bhartiya Rail Bijlee Company Ltd.	74.00
   6	Patratu Vidyut Utpadan Nigam Ltd.	74.00
   7	North Eastern Electric Power Corporation Ltd.	100.00
   8	THDC India Limited	74.496
   9	NTPC Mining Ltd. (Incorporated on 29 August 2019)	100.00
   b)	Joint Venture Companies
   1	Utility Powertech Ltd.	50.00
   2	NTPC GE Power Services Private Ltd.*	50.00
   3	NTPC SAIL Power Company Ltd.	50.00
   4	NTPC Tamilnadu Energy Company Ltd.	50.00
   5	Ratnagiri Gas and Power Private Ltd.*	25.51
   6	Aravali Power Company Private Ltd.	50.00
   7	Meja Urja Nigam Private Ltd.	50.00
   8	NTPC BHEL Power Projects Private Ltd.*	50.00
   9	National High Power Test Laboratory Private Ltd.*	20.00
   10	Transformers and Electricals Kerala Ltd.*	44.60
   11	Energy Efficiency Services Ltd.*	47.15
   12	CIL NTPC Urja Private Ltd.*	50.00
   13	Anushakti Vidhyut Nigam Ltd.*	49.00
   14	Hindustan Urvarak and Rasayan Ltd.	29.67
   15	Konkan LNG Ltd.	14.82
   16	Trincomalee Power Company Ltd.*	50.00
   17	Bangladesh-India Friendship Power Company Private Ltd.*	50.00

   All the above Companies are incorporated in India except Companies at Sl. No.16 and 17 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.

4. 1. 1. During the quarter, the Company has acquired legal and beneficial ownership of 3,60,98,09,800 equity shares held by the President of India in North Eastern Electric Power Corporation Ltd. (NEEPCO) and the acquisition of beneficial ownership in 600 equity shares held by the nominees of the President of India in NEEPCO (collectively representing 100% of the total paid up share capital of NEEPCO) for an aggregate consideration of4000.00 crore (Rupees Four Thousand Crore only).
      2. During the quarter, the Company has acquired legal and beneficial ownership of 2,73,09,406 equity shares held by the President of India in THDC India Limited (THDCIL) and the acquisition of beneficial ownership in 6 equity shares held by the nominees of the President of India in THDCIL (collectively representing 74.496% of the total paid up share capital of THDCIL) for an aggregate consideration of7500.00 crore (Rupees Seven Thousand Five Hundred Crore only).
      3. With the above, NTPC Limited has become the holding company and also a promoter of NEEPCO and THDCIL.
   2. Being a common control acquisition, the accounting has been done as per Appendix C to lnd AS 103 "Business Combination" as per pooling of interest method under which assets and liabilities of the combining entities are reflected at the carrying amounts and no adjustments are made to reflect fair values, or recognize any new assets or liabilities. Further, restatement of previous year financial statements has been done as if the business combination had occurred from the beginning of preceding period in compliance with Appendix C of Ind AS 103 'Business Combination'. Accordingly, the Consolidated Balance Sheet as at March 31, 2019, Consolidated Statement of Profit and loss, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows for the year ended 31 March 2019 have been restated. The difference between the share capital of these companies and the consideration paid has been recognized as 'Çapital reserve-common control' as at April 1, 2018. Further, the total cash consideration for acquisition of these companies amounting to11,500 crore paid in March 2020 has been considered as current liability of the previous year and disclosed under 'Current liabilities-Other financial liabilities'.
5. 1. 1. The CERC notified the Central Electricity Regulatory Commission (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 projects declared commercial w.e.f. 1 April 2019 and projects where tariff applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in the tariff petitions. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed is 98,806.47 crore (31 March 2019:93,074.69 crore).
      2. Sales have been provisionally recognized at1,03,362.52 crore (31 March 2019:98,380.43 crore) on the said basis.
   2. Sales include1,768.88 crore (31 March 2019: (-)0.02 crore) on account of income tax recoverable from / (refundable) to the beneficiaries as per Regulations, 2004. The current year amount is on account of income tax liability determined under Vivad se Vishwas Scheme notified under Direct Tax Vivad se Vishwas Act 2020. Sales also include92.79 crore (31 March 2019:101.03 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.
   3. Sales include60.93 crore (31 March 2019: (-)2,235.15 crore) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).
   4. Revenue from operations for the year ended 31 March 2020 include7,303.06 crore (31 March 2019:7,371.31 crore) on account of sale of energy through trading.
6. Provision for current tax for the year ended 31 March 2020 includes2,743.64 crore (31 March 2019: (-)103.81 crore) being tax related to earlier years. This inclues additional tax provision amounting to2,723.57 crore, as some of the Group companies have decided to settle pending Income Tax disputes by opting under the Vivad se Vishwas Scheme notified by the Government through ‘The Direct Tax Vivad Se Vishwas Act, 2020’. The Group companies are in the process of completion of procedural formalities under the scheme and settlement of pending balances will be carried out on completion of such formalities.
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 2020 is15,662.28 crore (31 March 2019:15,598.80 crore). Management is confident that the approval for the project shall be granted, hence no provision is considered necessary.
8. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand 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 2020 is163.40 crore (31 March 2019:163.33 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.
9. An amount of 749.01 crore (31 March 2019:719.71 crore) has been incurred upto 31 March 2020 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), GOI, which includes439.57 crore (31 March 2019:413.40 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 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 of356.31 crore was paid upto 31 March 2019. In the previous year, the Arbitral Tribunal had awarded a claim of1,891.09 crore plus applicable interest in favour of the operator. 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. Considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, Significant Accounting Policies of the Company and the principle of conservatism, an amount of394.07 crore was estimated and provided for as at 31 March 2019 and balance amount of1,875.73 crore was disclosed as contingent liability, along with applicable interest.
    During the year, against the appeal of the Company, Hon'ble High Court vide its order dated 23 September 2019 held that subject to deposit of500 crore by the Company with the Registrar General of the Court within six weeks, execution of the impugned award shall remain stayed till the next date of hearing and upon handing over the entire infrastructure in terms of the contract by the operator to the Company, the Registrar General shall release the amount to the operator against a bank guarantee. 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 of500 crore to the operator by the Registrar General subject to the outcome of this 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 and500 crore was released to operator by the Hon’ble High Court. Further,356.31 crore paid to operator has been booked to fuel cost and the corresponding provision has been reversed during the current year.
    As per orders of Hon'ble High Court, formal handing over of the infrastructure has started on 20 January 2020 at the project site. However, due to certain law and order issues initially and further due to COVID-19 pandemic, Local Commissioner’s visit has been deferred.The handing over of the infrastructure facility has not yet completed.
    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 to37.92 crores as at 31 March 2020 (31 March 2019:394.07 crore) and the balance amount of2,014.84 crore (31 March 2019:1,875.73 crore) has been disclosed as contingent liability.
11. 11.During the year, thermal power units of one 800 MW at Gadarwara w.e.f. 1 June 2019, one 800 MW at Lara w.e.f. 1 October 2019, one 660 MW at Tanda w.e.f. 7 November 2019, one 660 MW at Khargone w.e.f. 1 February 2020, one 800 MW at Darlipalli w.e.f. 1 March 2020 and one 250 MW at Barauni w.e.f. 1 March 2020 have been declared commercial. Further, the Pakri Barwadih Coal Mine has been declared commercial w.e.f. 1 April 2019.
12. During the quarter, the Company has paid an interim dividend of0.50 per equity share (par value10/- each) for the financial year 2019-20. The Board of Directors has recommended final dividend of2.65 per equity share (par value10/- each). The total dividend (including interim dividend) for the financial year 2019-20 is3.15 per equity share (par value10/- each).
13. The Group has adopted Ind AS 116 'Leases' effective 1 April 2019, using modified retrospective approach and therefore the comparatives have not been restated. On the date of initial application, the lease liability has been measured at the present value of the remaining lease payments and right of use assets has been recognized at an amount equal to the lease liabilities. Application of Ind AS 116 does not have any material impact on the financial results of the Group.
14. Due to outbreak of COVID-19 globally and in India, the Group has made an initial assessment of itslikely adverse impact on business and its associated financial risks.The Group is mainly in the business of generation and sale of electricity which is an essential service as emphasized by the Ministry of Power (MOP), Government of India (GOI). By taking a number of proactive steps and keeping in view the safety of all its stakeholders, the Group has ensured the availability of its power plants to generate power and has continued to supply power during the period of lockdown.
15. On the directions of MOP, the Central Electricity Regulatory Commission (CERC) issued an order dated 3 April 2020 whereby it 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. if any delayed payment beyond 45 days from the date of presentation of the bills falls between 24 March 2020 and 30 June 2020. Accordingly, the LPSC for the year 2020-21 is expected to be lower by58.88 crore approximately.Further as per the directions of MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under theAtmanirbhar Bharat special economic and comprehensive package, the Group has decided to defer the capacity charges of2,670.30 crore to DISCOMs for the lock-down period on account of COVID-19 pandemic for the power not scheduled by the DISCOMs, to be payable without interest after the end of the lockdown period in three equal monthly instalments and has allowed a rebate of1,586.70 crore on the capacity charges billed during the lock-down period to DISCOMs on account of COVID-19, in the financial year 2020-21. These amounts are provisional and may vary due to reconciliation of related data. Due to the above, there is no material impact on the profits of the Company for the year ended 31 March 2020.
    The Group believes that the impact due to the outbreak of COVID-19 is likely to be short-term in nature and does not anticipate any medium to long-term risks in the Group's ability to continue as a going concern and meeting its liabilities as and when they fall due.
16. Formula used for computation of coverage ratios DSCR = Earning before Interest, Depreciation, Tax and Exceptional items /(Interest net of transfer to expenditure during construction + Scheduled principal repayments of the long term borrowings) and ISCR = Earning before Interest, Depreciation, Tax and Exceptional items/(Interest net of transfer to expenditure during construction).
17. For all secured bonds issued by the Company, 100% security cover is maintained for outstanding bonds. The security has been created on property, plant and equipment through English/Equitable mortgage as well as hypothecation of movable assets of the Company.
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, read with Note no.4 above.
19. Previous periods figures have been reclassified wherever considered necessary.

For and on behalf of the Board of Directors
(A.K.Gautam)
DIRECTOR (FINANCE)
DIN:08293632Place: New Delhi
Date: 27June, 2020