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
Sep 27, 15:58
149.80
-3.35 (-2.19%)
VOLUME 1,151,765
LIVE
NSE
Sep 27, 15:58
150.05
-3.55 (-2.31%)
VOLUME 8,046,035
« Mar 14
Auditor's Report (Hindalco Industries) Year End : Mar '15
We have audited the accompanying standalone financial statements of
 HINDALCO INDUSTRIES LIMITED (the Company), which comprise the Balance
 Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
 Cash Flow Statement for the year then ended, and a summary of the
 signifi cant 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 fi nancial statements that give
 a true and fair view of the fi nancial position, fi nancial performance
 and cash fl ows of the Company in accordance with the accounting
 principles generally accepted in India, including the Accounting
 Standards specifi ed under Section 133 of the Act, read with Rule 7 of
 the Companies (Accounts) Rules, 2014, Accounting Standard (AS)-30 to
 the extent it relates to Derivative Accounting, as prescribed by the
 Institute of Chartered Accountants of India and other accounting
 principles generally accepted in India. 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 fi nancial
 controls, that were operating effectively for ensuring the accuracy and
 completeness of the accounting records, relevant to the preparation and
 presentation of the fi nancial statements that give a true and fair
 view and are free from material misstatement, whether due to fraud or
 error.
 
 Auditors'' Responsibility
 
 Our responsibility is to express an opinion on these standalone fi
 nancial statements based on our audit. We have taken into account the
 provisions of the Act, 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 in accordance with the Standards on Auditing
 specifi ed under Section 143(10) of the Act. Those Standards require
 that we comply with ethical requirements and plan and perform the audit
 to obtain reasonable assurance about whether the fi nancial statements
 are free from material misstatement.
 
 An audit involves performing procedures to obtain audit evidence about
 the amounts and the disclosures in the fi nancial statements. The
 procedures selected depend on the auditor''s judgment, including the
 assessment of the risks of material misstatement of the fi nancial
 statements, whether due to fraud or error. In making those risk
 assessments, the auditor considers internal fi nancial control relevant
 to the Company''s preparation of the fi nancial statements that give a
 true and fair view in order to design audit procedures that are
 appropriate in the circumstances, but not for the purpose of expressing
 an opinion on whether the Company has in place an adequate internal fi
 nancial controls system over fi nancial reporting and the operating
 effectiveness of such controls. 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 fi nancial statements.
 
 We believe that the audit evidence we have obtained is suffi cient and
 appropriate to provide a basis for our audit opinion on the standalone
 fi nancial statements.
 
 Opinion
 
 In our opinion and to the best of our information and according to the
 explanations given to us, the aforesaid standalone fi nancial
 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 31st March, 2015, and its profi t and its
 cash fl ows for the year ended on that date.
 
 Emphasis of Matters
 
 We draw attention to Note No. 44 to the Financial Statements explaining
 that in compliance to the scheme of arrangement under Sections 391 to
 394 of the Companies Act, 1956, approved by the Hon''ble Bombay High
 Court, vide order dated 29th June, 2009, the Management of the Company,
 during the year, has identifi ed and adjusted provision for diminution
 in the carrying value of Investment in one of its Subsidiaries and in a
 Jointly controlled entity, amounting to Rs. 35 crore and impairment
 loss of Rs. 62.29 crore (net of deferred tax of Rs. 32.97 crore)
 related to one of its cash generating units, against Business
 Reconstruction Reserve. This has resulted in the profi t before tax and
 profi t after tax for the year being higher by Rs. 130.26 crore and Rs.
 97.29 crore respectively. Our opinion is not qualifi ed in respect of
 this matter.
 
 Report on Other Legal and Regulatory Requirements
 
 1.  As required by the Companies (Auditor''s Report) Order, 2015 (the
 Order) issued by the Central Government of India in terms of
 sub-section (11) of Section 143 of the Act, we give in the Annexure a
 statement on the matters specifi ed in paragraphs 3 and 4 of the Order,
 to the extent applicable.
 
 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 Profi t 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 aforesaid standalone fi nancial statements
 comply with the applicable Accounting Standards specifi ed under
 Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
 Rules, 2014.
 
 e) On the basis of the written representations received from the
 directors as on 31st March, 2015, taken on record by the Board of
 Directors, none of the directors is disqualifi ed as on 31st March,
 2015, from being appointed as a director in terms of Section 164(2) of
 the Act.
 
 f) With respect to the other matters to be included in the Auditors''
 Report in accordance with Rule 11 of the Companies (Audit and Auditors)
 Rules, 2014, 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 on its fi
 nancial position in its fi nancial statements - Refer Note Nos. 50A(a),
 c(iii), c(iv) and c(v) to the fi nancial statements.
 
 ii. The Company has long-term contracts including derivative contracts
 as at 31st March, 2015, 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 a sum of Rs. 0.09 crore which are held in abeyance due
 to pending legal cases.
 
 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
 Assets.
 
 (b) As per the information and explanations given to us, physical
 verifi cation of fi xed assets has been carried out in terms of the
 phased program designed 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 fi xed assets has been physically verifi ed by the
 Management during the year and no material discrepancies between books
 record and physical inventory has been noticed.
 
 II.  (a) Physical verifi cation of inventory (except stocks in transit
 and stocks lying with third parties, confi rmation for which has been
 obtained) has been conducted at reasonable intervals during the year,
 by the Management/outside agencies.
 
 (b) In our opinion, the procedure of physical verifi cation of
 inventories followed by the Management is 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 inventories. The
 discrepancies between the physical stock and book stocks, which are not
 signifi cant, have been properly dealt with in the books of accounts.
 
 III.  The Company has not granted any loans, secured or unsecured, to
 companies, fi rms or other parties listed in the register maintained
 under Section 189 of the Companies Act, 2013.
 
 IV.  On the basis of checks carried out during the course of audit and
 as per the 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 fi xed 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, we have not
 observed any continuing failure to correct major weakness in such
 internal control system.
 
 V.  The Company has not accepted any deposit from the public.
 
 VI.  We have broadly reviewed the books of account 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 148(1) of the Companies Act, 2013, 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.
 
 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 material statutory dues
 accrued in the accounts, including Provident Fund, Employee''s State
 Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
 Duty, Excise Duty, 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 statutory dues as above were outstanding as at 31st
 March, 2015, 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, Custom Duty, Wealth Tax, Excise Duty, Service
 Tax, Value Added 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, 2015 are as under :
 
 Name of the 
 Statute            Nature of Dues   Amount    Period to which the amount
                                               relates
                                    (Rs. in
                                     Crore)
 
 Central Sales 
 Tax Act and        Sales Tax          0.40    2003-2004
 Local Sales Tax
 Act
 
                                       3.71    1992-1993, 2001-2002,
                                               2005-2006, 2006-2007
 
                                       6.13    1999-2000, 2002-2003, 
                                               2003-2004, 2005-2006
 
                                      60.65    1996-1997, 1999-2000 to
                                               2002-2003, 2005-2006 to 
                                               2012-2013
 
 The Central 
 Excise Act, 1944   Excise Duty      155.31    2000-2001, 2001-2002
 
                                       4.00    2000-2001 to 2002-2003,
                                               2005-2006, 2006-2007,  
                                               2009-2010, 2011-2012
 
                                      27.45    1988-1990, 1991-1992,
                                               1993- 1994, 1999-2000
                                               to 2010- 2011
 
                                     185.96    1987-1988, 1997-1998 to
                                               2009-2010, 2011-2012 to 
                                               2013-2014
 
 The Service Tax 
 under the          Service Tax        0.46    2002-2003 to 2007-2008,
                                               2009-2010
 Finance Act,
 1994
 
                                      67.78    2002- 2003 to 2012-2013
 
                                      24.73    2001-2002, 2004-2005 to
                                               2006-2007, 2008-2009 to
                                               2011-2012
 
 The Customs
 Act, 1962          Customs Act       22.78    2009-10 and 2010-11
 
                                       5.29    2006-2007 
 
 The Income-tax 
 Act, 1961          Income Tax       536.75    2009-2010
 
 Adhosanrachna 
 Vikas              Chhattisgarh       0.24    2005-2006 to 2011-2012
 Evam Parayavaran 
 Upkar              Development and
 Adhiniyam, 2005    Environment Cess
 
 Shakti Nagar 
 Special Area       Cess on Coal       3.98    1997-1998 to 2011-2012
 Development 
 Authority
 
 The Building 
 and Other          Cess             100.00    2011-2012
 Construction 
 Workers 
 (Regulation of
 Employment and 
 Conditions of
 Service) Act & 
 Rules (BOCW 
 Act)
 
 Name of the Statute         Forum where the disputes are pending
 
 Central Sales Tax Act and
 Local Sales Tax Act         The Supreme Court
 
                             The High Court
 
                             Tribunal
 
                             Asst. Commissioner/ Commissioner/
                             Revisionary Authorities Level
 
 The Central Excise Act,
 1944                        The Supreme Court
 
                             The High Court
 
                             Customs, Excise and Service Tax
                             Appellate Tribunal (CESTAT)
 
                             Asst. Commissioner/ Commissioner/
                             Revisionary Authorities Level
 
 The Service Tax under the
 Finance Act, 1994           The High Court
 
                             Customs, Excise and Service Tax 
                             Appellate Tribunal (CESTAT)
 
                             Asst. Commissioner/ Commissioner/
                             Revisionary Authorities Level
 
 The Customs Act, 1962       Customs, Excise and Service Tax
                             Appellate Tribunal (CESTAT)
 
                             Tribunal
 
 The Income-tax Act,1961     Commissioner of Income Tax (Appeals)
 
 Adhosanrachna vikas
 Evam Parayavaran Upkar
 Adhiniyam, 2005             The Supreme Court
 
 Shakti Nagar Special Area
 Development Authority       The Supreme Court 
 
 The Building and Other
 Construction Workers
 (Regulation of Employment
 and Conditions of Service)
 Act & Rules (BOCW Act)    The Supreme Court
 
 (c) According to the information and explanations given to us, the
 amounts which were required to be transferred to the investor education
 and protection fund in accordance with the relevant provisions of the
 Companies Act, 1956 (1 of 1956), and rules thereunder have been
 transferred to such fund within time, except a sum of Rs. 0.09 crore
 which are held in abeyance due to pending legal cases.
 
 VIII. The Company does not have any accumulated losses at the end of
 the fi nancial year and has not incurred cash losses in the fi nancial
 year and in the immediately preceding fi nancial year.
 
 IX.  The Company has not defaulted in repayment of dues to Financial
 Institutions or Banks or Debentureholders.
 
 X.  In our opinion, the terms and conditions on which the Company has
 given guarantees for loan taken by others from banks or fi nancial
 institutions are not prejudicial to the interest of the Company.
 
 XI.  According to the information and explanations given to us, the
 Company has applied term loans for the purpose for which they were
 obtained during the year.
 
 XII.  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, no fraud by the Company and no material fraud
 on the Company has been noticed or reported during the year.
 
                                                    For SINGHI & CO.
 
                                              Chartered Accountants
 
                                      Firm Registration No. 302049E
 
                                                      (RAJIV SINGHI)
 
 Place: Mumbai                                              Partner
 
 Date: 28th May, 2015                          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.