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Hindalco Industries Ltd.

BSE: 500440 | NSE: HINDALCO |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE038A01020 | SECTOR: Aluminium

BSE Live

Jun 18, 16:00
371.65 2.35 (0.64%)
Volume
AVERAGE VOLUME
5-Day
701,030
10-Day
620,293
30-Day
810,542
739,728
  • Prev. Close

    369.30

  • Open Price

    369.30

  • Bid Price (Qty.)

    372.05 (1)

  • Offer Price (Qty.)

    371.65 (172)

NSE Live

Jun 18, 15:59
371.35 2.10 (0.57%)
Volume
AVERAGE VOLUME
5-Day
14,910,724
10-Day
12,529,905
30-Day
18,848,448
22,723,111
  • Prev. Close

    369.25

  • Open Price

    368.75

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    371.35 (44309)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Auditor's Report

We have audited the attached Balance Sheet of HINDALCO INDUSTRIES LIMITED as at 31st March, 2009 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Companys 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 our opinion. As required by the Companies (Auditors report) Order, 2003, as amended by the Companies (Auditors Report)(Amendment) 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 as 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 purpose of our audit; 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 books; 3) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account; 4) In our opinion, the Balance Sheet, Profit and Loss Account 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 , except as mentioned in Para 6 below. 5) On the basis of the written representations received from the directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2009 from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; 6) Without qualifying our opinion, attention is drawn to the following :- a) Regarding non provision of Mark to Market losses of Rs. 313.55 Crores (net) on outstanding derivatives as on 31st March 2009 which is not in accordance with the Accounting Standard 1 and announcement made by ICAI on 29th March 2008. Refer Note No 29 (d) in Schedule 19. b) As per Scheme of Arrangement U/s 391 to 394 of the Companies Act 1956 approved by the Honourable High Court of Mumbai vide its Order dated 29th June, 2009 the company has been allowed to create Business Reconstruction Reserve by transferring balance standing to the credit of Securities Premium Account for adjusting certain expenses as defined in the scheme. Accordingly, the management of the Company , during the year has identified and adjusted Impairment of Fixed Assets amounting to Rs. 66.80 Crores ( Net of Tax) and certain expenses amounting to Rs. 0.18 Crores against Business Reconstruction Reserve. This has resulted in the profit before tax and profit after tax for the year being higher by Rs. 101.38 Crores and Rs 66.98 Crores respectively and deferred tax asset being lower by Rs. 34.40 Crores. Refer Note No 22 in Schedule 19. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the Notes in Schedule 19 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 India; (a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2009; (b) In the case of the Profit and Loss Account, 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. ANNEXURE TO THE AUDITORS REPORT I (a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. (b) Fixed Assets have been physically verified by the management periodically in a phased manner and no material discrepancies have been noticed on physical verification as confirmed by the management. (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. (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. 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. Accordingly, clause 4(III)(b) to (d) of the Order are not applicable. (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. Accordingly, clause 4(III)(f) to (g) of the Order are not applicable. 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 are adequate internal control procedures 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. During the course of our audit, no major weakness has been noticed in the internal controls except as mentioned in the paragraph XXI of this report. 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 entered. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contract or arrangements entered in the register maintained under section 301 of the Companies Act,1956 have been made at prices which are reasonable having regard to the prevailing market price at the relevant time. VI The Directives issued by the Reserve Bank of India and the provisions of sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there-under have been complied with in respect of deposits accepted from the public. We have been informed that, no order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any other Court or Tribunal in this regard. VII The Company has an Internal Audit System, which in our opinion is commensurate with the size and nature of the business. VIII The Company has maintained proper cost records as prescribed by Central Government under section 209 (1) (d) of the Companies Act, 1956 for the products of the Company but no detailed examination of such records has been carried out by us. IX (a) According to the information and explanations given to us and on the basis of our examination of the books of accounts, 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, Custom Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities. According to the information and explanations given to us no undisputed statutory dues as above were outstanding as at 31st March, 2009 for a period of more than 6 months from the date they became payable. (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, 2009 are as under: Name of the Nature of Amount Statute Dues (Rs. in Crores) Sales Tax Laws Sales Tax 1.13 5.17 54.53 Central Excise Excise Duty 155.31 Act ,1944 15.36 273.45 0.88 Service Tax Service Tax 13.34 Act , 1994 0.18 Customs Customs Act 18.13 Act, 1962 Adhosanrachna Chhattisgarh 0.09 Vikas Evam Development Parayavaran and Upkar Adhiniyam, Environment Cess 2005 Shakti Nagar Cess on Coal 4.32 Special Area Development Authority Period to which its Relates Forum where pending 1986-1987, 1989-1990, 1990-1991, The High Court 1992-1993 , 1995-1996 , 2001 - 2002 , 2003-2004 1998-1999, 1999 -2000, 2000-2001, Tribunal 2002- 2003 , 2003 -2004, 2004 - 2005 1991- 1992, 1994- 1995,1996-1997, Asst Commissioner/ 1997-1998, 1998- 1999, 1999-2000 , Commissioner/ Revisionery 2000 -2001 , 2001- 2002 , 2002- 2003, Authorities Level 2003-2004, 2004-2005, 2005- 2006, 2006-2007, 2007-2008 2000-2001 and 2001-2002 The Supreme Court 1994 - 1995, 2000- 2001 The High Court 1998- 1999, 2000 -2001, 2001- 2002, Tribunal 2002 - 2003, 2003- 2004, 2004- 2005, 2005- 2006, 2006- 2007, 2007-2008, 2008-2009 1985 - 1986, 1986 -1987, 1988- 1989, Asst Commissioner/ 1989- 1990, 1991- 1992, 1992- 1993, Commissioner/ Revisionery 1993- 1994, 1994- 1995, 1995- 1996, Authorities Level 1996 -1997, 1997 - 1998, 1998- 1999, 1999 - 2000, 2000 -2001, 2001 -2002, 2002 -2003, 2003 - 2004, 2004- 2005, 2005 -2006, 2006- 2007, 2007 -2008 1997 - 2000 , 2000- 2001, 2004 -2008 Tribunal 2006-2007, 2008-2009 Asst Commissioner/ Commissioner/ Revisionery Authorities Level 2004- 2005 , 2005 -2006 and Asst Commissioner/ 2006 - 2007 Commissioner/ Revisionery Authorities Level 2008- 2009 The High Court 1997 -1998 The High 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 Company is not a chit fund or a nidhi/mutual benefit fund/ society. 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 by the management, term loans were applied for the purpose for which the loans were obtained though unutilized funds which were not required for immediate use for capital expenditure have been temporarily invested in securities/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. XVIIIDuring the year under audit the Company has not made any preferential allotment of Shares to parties and Companies covered under register maintaining U/s 301 of the Companies Act 1956. XIX On the basis of records made available to us, the Company has created Securities in respect of Debenture issued/ outstanding during the year. XX The Company has made Rights Issue during the year and has disclosed the end use of money received from Rights Issue in Note No. 19 to Schedule 19 on notes to accounts and the same has been verified by us. XXI Based upon the audit procedures performed and on the basis of information and explanations given to us by the management, we report that the following two frauds on the company, have been detected during the year:- a) Suspected unauthorized access to Companys computer network by an employee of the Company, resulting in certain unauthorized sales transactions having taken place at discounted prices and on extended credit terms. However, this is not expected to have any impact on the financial results of the Company going forward. The matter is under investigation and the materiality and the amount involved cannot be ascertained at this stage. b) Certain Customers falling under a group have purchased materials from Company by providing forged Letter of Credits and Bank Guarantees. However, the said Group of Customer has committed to liquidate the dues as per the terms of payment schedule as agreed with the management. Amount outstanding as on 31st March, 2009 is Rs. 14 crores out of the total dues of Rs. 29 Crores. For SINGHI & CO., Chartered Accountants Camp: Mumbai Dated: The 30th day of June, 2009 RAJIV SINGHI 1-B, Old Post Office Street, Partner Kolkata-700 001 Membership No. 53518