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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 14, 16:00
394.85 1.70 (0.43%)
Volume
AVERAGE VOLUME
5-Day
539,556
10-Day
546,512
30-Day
865,422
549,432
  • Prev. Close

    393.15

  • Open Price

    393.15

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Jun 14, 15:59
394.80 1.65 (0.42%)
Volume
AVERAGE VOLUME
5-Day
10,149,087
10-Day
10,791,737
30-Day
20,119,918
11,601,461
  • Prev. Close

    393.15

  • Open Price

    392.95

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    394.80 (10479)

Annual Report

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

Auditor's Report

We have audited the accompanying standalone financial statements of HINDALCO INDUSTRIES LIMITED (the Company), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement 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 financial statements that give a true and fair view of the financial position, financial performance and cash fl ows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. 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 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 financial 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 specified 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, 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 financial control relevant to the Company''s preparation of the 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 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 financial statements. Opinion In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 31st March, 2016, and its Profit and its cash flows for the year ended on that date. Emphasis of Matters We draw attention to Note No. 43 of the Financial Statement, 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 has, during the year, identified and adjusted following against Business Reconstruction Reserve: a. provision for diminution in the carrying value of Investments in one of its Subsidiaries and of a Jointly Controlled Entity aggregating to Rs. 35.50 crore, b. impairment loss of Rs. 561.70 crore (deferred tax of Rs. 194.39 crore) related to one of its cash generating units, c. expenses of Rs. 279.46 crore for exited project, against Business Reconstruction Reserve. Had the above impact be considered the reported Profit before tax and Profit after tax of Rs. 732.61 crore and Rs. 607.25 crore, respectively, would have been converted in to loss before tax of Rs. 144.05 crore and loss after tax of Rs. 75.02 crore. Our report is not qualified 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 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, 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 financial statements comply with the applicable Accounting Standards specified 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, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, 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''; and 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, 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 financial position in its financial statements Refer Note 50A(a), c(iii) and c(iv) to the financial statements. ii. the Company has long-term contracts including derivative contracts as at 31st March, 2016 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. 0.09 crore which are held in abeyance due to pending legal cases. Annexure A 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 verification of fixed 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 size of the Company and 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 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 are held in the name of the Company except in the following cases: Particulars Total Whether Gross Block (as at Remarks Number of Leasehold/ 31st March, 2016) Cases Freehold Amount Unit Birla Copper 4 Leasehold Rs. 21.30 crore Lease deed is Dahej Industrial Area, Lakhigam, Dahej, Taluka: Vagra, pending Dist: Bharuch (199.68 acre) Unit - Birla Copper 1 Freehold Rs. 0.06 crore Registration Block No: 42 Kesrol, Dist: Bharuch (6.13 acre) in the name of the Company is pending Unit Aditya Aluminium 1 Leasehold Rs. 57.94 crore Lease deed is 12 Villages of Aditya Aluminium Project (253.29 acre) pending II. As per the information and explanations given to us, the inventories 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 paragraphs 3(III), 3(III)(a) to 3(III)(c) of the said order are not applicable. IV. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act, 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 Sections 73, 74, 75 and 76 of the Act and Rules framed thereunder to the extent notified. 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 statutory dues including Provident Fund, Employee''s State Insurance, Income Tax, Sales Tax, Wealth 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, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues were in arrears as at 31st March, 2016, for a period of more than six months from the date they became payable . (b) According to the information and explanation given to us, the dues of Sales Tax, Income Tax, Duty of Custom , Wealth Tax, 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, 2016, 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 3.94 2003-2004, 2012-2013 to 2015-2016 Local Sales Tax act 8.87 1986-1987, 1989-1990, 1991-1992, 1992-1993, 1999-2000 to 2003-2004, 2005-2006, 2006-2007 1.37 2002-2003, 2005-2006 59.70 1991-1992, 1996-1997 to 2002-2003, 2005-2006 to 2012-2013 The Central Excise Act ,1944 Excise Duty 2.45 1989-1990 to 1995-1996, 2000-2001, 2009-2010, 2011-2012 157.74 1988-1990 to 2014-2015 178.94 2001-2002 to 2013-2014 The Service Tax under the Service Tax 0.35 2009-2010 Finance Act, 1994 73.69 2002-2003 to 2013-2014 22.96 2004-2005 to 2013-2014 The Customs Act, 1962 Customs Act 22.78 2009-2010 and 2010-2011 5.29 2006-2007 The Income- tax Act, 1961 Income Tax 1,396.30 2008-2009 to 2011-2012 Adhosanrachna Vikas Chhattisgarh 0.27 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) Green Cess Cess 6.16 2012-2013 to 2015-2016 Name of the Statute Forum where the disputes are pending Central Sales Tax Act The Hon''ble Supreme Court of India The Hon''ble High Court Tribunal Asst Commissioner/Commissioner/ Revisionary Authorities Level The Central Excise Act, 1944 The Hon''ble High Court Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Asst Commissioner/Commissioner/ Revisionary Authorities Level The Service Tax under the Fiance Act, 1994 The Hon''ble 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) Asst Commissioner/Commissioner/ Revisionary Authorities Level The Income-tax Act, 1961 Commissioner of Income Tax (Appeals) Adhosanrachna Vikas Evam Parayavaran Upkar Adhiniyam, 2005 The Hon''ble Supreme Court of India Shakti Nagar Special Area Development Authority The Hon''ble Supreme Court of India The Building and Other Construction Workers The Hon''ble Supreme Court of India Green Cess The Hon''ble Supreme Court of India 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. Further, as at the Balance Sheet date, the Company does not have any loans or borrowing from the Government. 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 of the Act. XII. The Company is not a Nidhi Company. Accordingly, paragraph 3(XII) of the Order is not applicable. XIII. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable, and details of such transactions have been disclosed in the financial statements as required under Accounting Standard (AS)-18, Related Party Transactions. XIV. The Company has not made any preferential allotment or private placement of shares or fully or partly converted debentures during the year. Accordingly, paragraph 3(XIV) of the Order is not applicable to the Company. 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 him. 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 : 28th May, 2016 Membership No. 53518