We have audited the attached Balance sheet of HINDALCO INDUSTRIES
LIMITED as at 31st March, 2012 and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Company''s management. Our responsibility is to express an opinion
on these financial statements based on our Audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
As required by the Companies (Auditor''s report) Order, 2003, as amended
by the Companies (Auditor''s Report MAmendment) Order, 2004 issued by the
Central Government of India in terms of sub-section (4A) of Section 227
of the Companies Act, 1956, we enclose in the Annexure, a statement on
the matters specified in the paragraphs 4 and 5 of the said order.
Further to our comments in the Annexure referred above, we report that:
1) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
2) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
3) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
4) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Companies Act, 1956.
5) On the basis of the written representations received from the
directors as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March, 2012 from being appointed as a Director in terms of clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
6) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements read
together with significant accounting policies and notes thereon and
attached thereto give the information required by the Companies Act,
1956 (as amended) in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(b) In the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
(b) Fixed Assets have been physically verified by the management
according to a phased program designated to cover all items over a
period of three years which in our opinion is, reasonable having regard
to size of the Company and the nature of its assets. Pursuant to the
program, a portion of fixed assets has been physically verified by the
management during the year and no material discrepancies between book
record and physical inventory has been noticed.
(c) No substantial part of fixed assets has been disposed of during the
year, which has bearing on the going concern assumption.
II. (a) Physical verification of inventory, (except stocks in transit
and stocks lying with third parties, confirmation for which has been
obtained) have been conducted at reasonable intervals during the year
by the management/ outside agencies.
(b) In our opinion, the procedures of physical verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) The Company has maintained proper records of inventory. No material
discrepancies were noticed on physical verification of inventory as
compared to book records.
III. (a) The Company has not granted any loans, secured or unsecured to
Companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956.
(b) The Company has not taken any loans, secured or unsecured from
Companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956.
IV. On the basis of checks carried out during the course of audit and
as per explanations given to us, we are of the opinion that there is
adequate internal control system commensurate with the size of the
Company and the nature of its business; for the purchase of inventory
and fixed assets and for the sale of goods and services. Further, on
the basis of our examination of the records of the Company and
according to the information and explanation given to us, no major
weakness has been noticed or reported in the internal controls.
V. (a) In our opinion and according to the information and explanation
given to us, the transactions that need to be entered into register
maintained under Section 301 of the Companies Act, 1956 have been so
(b) As per the information and explanations give to us and the records
of the Company examined by us, there are no contract or arrangements
made for transactions exceeding Rs. 5,00,000 in respect of each party,
for sale and purchase of goods and services in pursuance of Section 301
of the Companies Act, 1956.
VI. The Company has not accepted any deposit from the public within
the meaning of Section 58A and 58AA of the Companies Act 1956 and the
rules framed there under.
VII. The Company has an internal audit system, which in our opinion is
commensurate with the size and nature of the business.
VIII. We have broadly reviewed the books of accounts maintained by
Company in respect of product, where pursuant to the rule made by the
Central Government of India the maintenance of cost records has been
prescribed under section 209 (1) (d) of the Companies Act 1956 and are
of the opinion that, prima facie, the prescribed records have been
maintained. We have not, however, made a detailed examination of the
records with a view to determine whether they are accurate or complete.
IX. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company is
generally regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employee''s
State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other statutory dues with the
appropriate authorities. According to the information and explanations
given to us and the records of the Company examined by us, no
undisputed statutory dues as above were outstanding as at 31st March,
2012 for a period of more than 6 months from the date they became
(b) According to the information and explanations given to us, the dues
of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty,
Service Tax and Cess which have not been deposited on account of any
dispute and the forum where the dispute is pending as on 31st March
2012 are as under:
Name of the Nature of Amount
Statue Dues (Rs. in Crore)
Central Sales Tax Act Sales Tax 10.19
and Local Sales Tax Act
The Central Excise Excise Duty 155.31
The Service Tax under Service Tax 18.42
the Finance Act, 1994
The Customs Act, 1962 Customs Act 20.46
Adhosanrachna Vikas Chhattisgarh 0.34
Evam Parayavaran Development and
Upkar Adhiniyam, 2005 Environment Cess
Shakti Nagar Special Cess on Coal 7.56
Name of the
Statue Period to which the
amount relates Forum where the disputes
Tax Act, and
Tax Act 1986-1987, 1989-1990,
1990-1991, 1992-1993, The High Court
2000-2001, 2002-2003, Tribunal
1996-1997, 1997-1998, Asst. Commissioner/
2000-2001, 2001-2002, Commissioner/ Revisionary
2004-2005, 2005-2006, Authorities Level
The Central Excise
Act,1944 2000-2001, 2001-2002,
2002-2003, 2003-2004, The Supreme Court
2000-2001, 2001-2002, The High Court
1993-1994, 2000-2001, Customs, Excise and Service
2003-2004, 2004-2005, Tax Appellate Tribunal
1998-1999, 1999-2000, Asst. Commissioner/
2002-2003, 2003-2004, Commissioner/ Revisionary
2006-2007, 2007-2008, Authorities Level
The Service Tax
Finance Act,1944 1997-2000, 2004-2011 Customs, Excise and Service
Tax Appellate Tribunal
2006-2007, 2008-2009, Asst. Commissioner/
2009-2010, 2010-2011 Commissioner/ Revisionary
The Customs Act,
1962 2003-2004, 2004-2005,
2005-2006 and 2006-2007 Asst. Commissioner/
2011-2012 Commissioner/ Revisionary
2005 2005-2012 The Supreme Court
Authority 1997-2012 The Supreme Court
X. The Company does not have any accumulated losses and has not
incurred cash losses in the current financial year and in the
immediately preceding financial year.
XI. The Company has not defaulted in repayment of dues to Financial
Institutions or Banks or Debenture holders.
XII. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of Shares, Debentures and other Securities.
XIII. The provisions of any special statute applicable to chit
fund/nidhi/mutual benefit fund/societies are not applicable to the
XIV. The Company is not in the business of dealing or trading in
shares. The Company has maintained proper records of transactions and
contracts in respect of Shares, Securities, Debentures and other
Investments and timely entries have been made therein. The Shares,
Securities, Debentures and other Investments have been held by the
Company, in its own name except to the extent of exemption, granted
under Section 49 of the Companies Act, 1956.
XV. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
Corporate guarantees for loans taken by its Subsidiaries and Joint
Ventures from Banks and Financial Institutions (including foreign
banks) are not prima facie prejudicial to the interest of the Company.
XVI. Based on information and explanations given to us and records of
the Company examined by us, in our opinion, the term loans have been
applied for the purpose for which they were obtained. Though unutilized
funds which were not required for immediate use for capital expenditure
have been temporarily invested in mutual funds / bank deposit.
XVII. According to the information and explanations given to us and on
the basis of our overall examination of the Balance Sheet and Cash Flow
Statement, we report that no funds raised on short term basis have been
used for long term investment of the Company.
XVIII. During the year under Audit, the Company has not made
preferential allotment of equity shares. However the Company has made
preferential allotments of warrants to Companies covered in the
register maintained under Section 301 of the Companies Act. The Price
at which the warrants have been issued has been determined as per the
Securities and Exchange Board Of India (Issue Of Capital and Disclosure
Requirements) Regulations, 2009 which in our opinion is not prejudicial
to the interest of the Company.
XIX. During the year under audit, the Company has neither issued any
debentures nor was any debentures outstanding at the year end.
XX. The Company has not raised any money by Public Issues during the
XXI. During the course of our examination of the books and records of
the Company, carried out in accordance with the Generally Accepted
Auditing Practice in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the Company, noticed or reported during the year, nor
have we been informed of such cases by the Management.
For SINGHI & CO.
Camp: Mumbai Chartered Accountants
Dated: the 27th day of June, 2012 Firm Registration No.302049E
1-B, Old Post Office Street, (Partner)
Kolkata-700 001 Membership No. 53518