Moneycontrol
SENSEX NIFTY
Hindalco Industries | Auditor's Report > Aluminium > Auditor's Report from Hindalco Industries - BSE: 500440, NSE: HINDALCO
YOU ARE HERE > MONEYCONTROL > MARKETS > ALUMINIUM > AUDITORS REPORT - Hindalco Industries

Hindalco Industries

BSE: 500440|NSE: HINDALCO|ISIN: INE038A01020|SECTOR: Aluminium
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Dec 15, 16:00
242.70
6.25 (2.64%)
VOLUME 261,685
LIVE
NSE
Dec 15, 15:56
242.75
6.35 (2.69%)
VOLUME 6,290,840
Mar 16
Auditor's Report (Hindalco Industries) Year End : Mar '17

TO THE MEMBERS OF HINDALCO INDUSTRIES LIMITED

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements.

We have audited the Standalone Ind AS financial statements of HINDALCO INDUSTRIES LIMITED (“the Company”), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these Standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian accounting Standard ) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act and the Rules made thereunder including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Standalone Ind AS financial Statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone Ind AS financial statements is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone Ind aS financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the Standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the Standalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Other Matter

The corresponding financial information of the Company as at and for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2015 included in these Standalone Ind AS financial statements, are based on the previously issued financial statements for the years ended March 31, 2016 and March 31, 2015, prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion read with our observation on which attention drawn under emphasis of matter paragraph of our audit report dated May 28, 2016 and May 28, 2015 respectively which is also explained in Note no. 43 to the attached financial statements. These financial statements have been adjusted for differences in accounting principles to comply with Ind AS and such adjustments on transition to Ind AS which has been approved by the Company’s Board of Directors have been audited by us.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2016; issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (“the Order”), and on the basis of examination of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure ‘A’ statement on the matters specified in the paragraph 3 and 4 of the Order.

2. As required by Section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income) , the cash flow statement and the Statement of Changes in Equity dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure ‘B’,

g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, (as amended), in our opinion and to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigation as at March 31, 2017 on its financial position in its Standalone Ind AS financial statements - Refer Note 47 (a) and 47(b)(iv) to (vi).

ii. the Company has long-term contracts including derivative contracts as at 31st March, 2017 for which there were no material foreseeable losses.

iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company, except Rs.0.02 crore which are held in abeyance due to pending legal cases.

iv. The Company has provided requisite disclosures in the Standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on the audit procedures and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the Company and produced to us by the Management. Refer Note No 55(C).

Annexure A referred to in paragraph 1 of the Independent Auditors Report of the even date to the members of Hindalco Industries Limited in the Standalone Ind AS financial statements as of and for the year ended March 31, 2017 under the heading “Report on other legal and regulatory requirements”

Re: Hindalco Industries Limited (the Company)

I. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) Physical verification of fixed assets have been carried out in terms of the phased program designed to cover all items over a period of 3 years, which in our opinion is reasonable having regard to size of the Company and nature of its assets. Pursuant to the program, a portion of fixed assets have been physically verified by the management during the year and no material discrepancies between books record and physical inventory has been noticed.

(c) According to the information and explanations given to us and on the basis of the examination of the records of the company, the title deeds of the immovable properties included in fixed assets are held in the name of the company, except in the following cases.

Particulars

Total number of cases

Nature of Assets

Gross block (as at March 31, 2017) Amount

Unit:- Birla Copper 6.13 acre, Unit:- Muri 1.22 acre, Unit:- Mahan 37.79 acre

9

Freehold Land

Rs.4.09 crore

Unit:- Delhi Branch Residential Property of Area 1808 sq Built up, Area 2,690 sq ft Built up and Area 3644 sq ft Built up

3

Residential Property

Rs.0.35 crore

II. As per the information and explanations given to us, the inventories (excluding inventories in transit) have been physically verified at reasonable intervals during the year by the management except materials lying with third parties, where confirmations are obtained. The discrepancies noticed on the physical verification of inventory as compared to book stock were not material.

III. The Company has not granted any loans, secured or unsecured to Companies, Firms, Limited Liability Partnership or other parties listed in the register maintained under Section 189 of the Companies Act, 2013. Accordingly the provisions of paragraph 3(III), 3(III)(a) to 3(III)(c) of the said order are not applicable to the Company.

IV. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act 2013, with respect to Loans and Advances made, guarantee given and investments made.

V. The Company has not accepted any deposit from the public within the meaning of section 73, 74, 75 and 76 of the Act and Rules framed thereunder to the extent notified.

VI. 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 148 (1) of the Companies Act 2013 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.

VII. (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, Employee’s State Insurance, Income Tax, Sales Tax, Service Tax, duty of customs, duty of excise, Value Added Tax, 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 amounts payable in respect of Provident Fund, Employee’s State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues were in arrears as at March 31, 2017 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, the dues of Sales Tax, Income Tax, Duty of Customs , Duty of Excise, 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, 2017 are as under :-

Name of the Statue

Nature of Dues

Amount (Rs.in Crore)

Period to which the amount relates

Forum where the disputes are pending

Central Sales Tax Act and Local Sales Tax Act

Sales Tax

3.57

2003-2004, 2012-2013 to 20152016

The Supreme Court

8.97

1986-1987, 1989-1990, 1991-1992 , 1992-1993, 1999-2000 to 2003-2004, 2005-2006, 2006-2007

The High Court

1.33

2002-2003, 2005-2006

Tribunal

43.42

1991-1992, 1996-1997 to 2002-2003, 2005-2006 to 2012-2013

Asst Commissioner/ Commissioner/ Revisionary Authorities Level

The Central Excise Act, 1944

Excise Duty

1.14

1989-1990 to 1995-1996, 20002001, 2009-2010, 2011-2012

The High Court

236.64

1998-1999 to 2014-2015

Customs, Excise and Service Tax Appellate Tribunal ( CESTAT)

186.82

2001-2002 to 2013-2014

Asst Commissioner/ Commissioner/ Revisionary Authorities Level

The Service Tax under the Finance Act ,1994

Service Tax

0.35

2009-2010

The High Court

148.90

2002- 2003 to 2015-2016

Customs, Excise and Service Tax Appellate Tribunal ( CESTAT)

93.09

2004-2005 to 2015-2016

Asst Commissioner/ Commissioner/ Revisionary Authorities Level

The Customs Act , 1962

Customs Act

22.78

2009-10 and 2010-11

Customs, Excise and Service Tax Appellate Tribunal ( CESTAT)

5.34

2006-07

Asst Commissioner/ Commissioner/ Revisionary Authorities Level

The Income Tax Act , 1961

Income Tax

912.30

2008-2009 to 2011-2012

CIT ( Appeals)

Adhosanrachna Vikas Evam Parayavaran Upkar Adhiniyam, 2005

Chhattisgarh Development and Environment Cess

0.38

2005- 2006 to 2011-2012

The Supreme Court

Shakti Nagar Special Area Development Authority

Cess on Coal

3.98

1997- 1998 to 2011-2012

The Supreme Court

The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act & Rules (“BOCW Act”)

Cess

123.60

2011-12

The Supreme Court

Green Cess

Cess

7.56

2012-2013 to 2015-2016

The Supreme Court

VIII. According to the records of the Company examined by us and the information and explanations provided to us, the Company has not defaulted in repayment of loans or borrowings to any Financial Institutions or Banks or dues to debenture holders as at the Balance Sheet date. The Company does not have any loans or borrowing from the Government as at the balance sheet date.

IX. In our opinion, and according to the information and explanations given to us, the money raised by way of term loans have been applied for the purpose for which they were obtained. The company has not raised any money by way of initial public offer or further public offer including debt instruments during the year.

X. 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 instances of material fraud by the Company or on the Company by its officers or employees, noticed or reported during year nor have been informed of any such case by the Management.

XI. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

XII. The company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, accordingly, the provisions of clause 3(XII) of the Order are not applicable.

XIII. The Company has entered into transactions with related parties in compliance with sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the Standalone Ind AS financial statements as required under Ind AS 24, Related Party Disclosures specified under section 133 of the Act , read with Rule 7 of the Companies ( Accounts) Rules, 2014.

XIV. The Company has not made any preferential allotment of shares or fully or partly converted debentures during the year. However, the Company has raised Rs.3,350 crore through Qualified Institutions Placement (“QIP”) by allotting 17,68,27,659 Equity Shares at a price of Rs.189.45 per share. The QIP placement is in compliance with section 42 of the Companies Act, 2013. Further the Company has disclosed the end use of money received from QIP in Note No. 16(d) of notes to the Standalone Ind AS financial statements and the same has been verified by us.

XV. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.

XVI. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3(xvi) of the Order is not applicable to the Company.

For SINGHI & CO.

Chartered Accountants

Firm Registration No. 302049E

(RAJIV SINGHI)

Place : Mumbai Partner

Date : 30th May, 2017 Membership No. 53518

Source : Dion Global Solutions Limited
Quick Links for hindalcoindustries
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.