We have audited the accompanying financial statements of HINDALCO
INDUSTRIES LIMITED (the Company), which comprise the Balance Sheet as
at 31st March, 2013, and the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the accounting principles generally accepted in India, including
Accounting Standards referred to in Sub-Section (3C) of Section 211 of
the Companies Act, 1956 (the Act). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the management,
as well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the 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
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
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 the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other legal and regulatory requirements:
1) As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of
Sub-Section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2) As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations, which, to the
best of our knowledge and belief were necessary for the purpose of our
b) 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
c) The Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the accounting standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956.
e) On the basis of written representations received from the directors
as on 31st March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March 2013, from being
appointed as a director in terms of clause (g) of Sub-Section (1) of
Section 274 of the Companies Act, 1956.
Annexure referred to in paragraph 1 under the heading Report on other
legal and regulatory requirements of our report of even date
Re: Hindalco Industries Limited (the Company)
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 the 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
(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 the 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 explanations 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
explanations given to us, the transactions that need to be entered into
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
(b) As per the information and explanations given to us and the records
of the Company examined by us, there are no contract or arrangements
made for transactions exceeding Rupees 5,00,000 in respect of each
party, for sale and purchase of goods and services in pursuance of
Section 301 of the Company''s Act,1956.
VI. The Company has not accepted any deposit from the public within
the meaning of Sections 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 its business.
VIII. We have broadly reviewed the books of accounts maintained by the
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, however, not 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, Employees''
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,
2013 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
2013 are as under:
Name of the Nature of Amount
Statue Dues (Rs. in Crore)
Central Sales Tax Act Sales Tax 9.67
and Local Sales Tax Act
The Central Excise Excise Duty 155.31
The Service Tax under Service Tax 50.63
the Finance Act, 1994
The Customs Act, 1962 Customs Duty 5.29
Adhosanrachna Vikas Chhattisgarh 0.35
Evam Parayavaran Upkar Development and
Adhiniyam, 2005 Environment Cess
Shakti Nagar Special Cesson Coal 9.38
Area Development Authority
The Building and Other Cess 100
(Regulation of Employment
and Conditions of Service)
Act & Rules (BOCW Act)
Name of the Statue Period to which the
amount relates Forum where the
Central Sales Tax Act 1986-1987, 1989-1991,
1992-1993, 1995-1996, The High Court
2000-2001, 2001-2002 Tribunal
to 2011-2012 Asst. Commissioner/
The Central Excise
Act, 1944 1999-2000 to 2007-2008 The Supreme Court
2007-2008 to 2011-2012 The High Court
1993-1994,1999-2000 to Customs, Excise and
2010-2011 Appellate Tribunal
to 2009-2010 Asst. Commissioner/
The Service Tax under
the Finance Act, 1994 1996-1997 to
to 2011-2012 Customs, Excise and
Service Tax Appellate
to 2006-2007, 2008-2009 Asst. Commissioner/
to 2011-2012 Commissioner/
The Customs Act, 1962 2006-2007 Asst. Commissioner/
Adhosanracha Vikas Evam
Adhiniyam, 2005 2005-2006 to 2011-2012 The Supreme Court
Shakti Nagar Special
Authority 1997-1998 to 2011-2012 The Supreme Court
The Building and Other
Act & Rules 2011-2012 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 Subsidiary from Banks and
Financial Institutions 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 shares to parties and companies covered in
the register maintained under Section 301 of the Companies Act 1956.
XIX. During the year under audit, the Company has issued secured
debentures and has created securities / charges in respect of the same.
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.
Firm Registration No.302049E
Camp : Mumbai Partner
Dated : the 28th day of May, 2013. Membership No. 53518