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Hindustan Zinc Ltd.

BSE: 500188 | NSE: HINDZINC |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE267A01025 | SECTOR: Metals - Non Ferrous

BSE Live

Jun 16, 16:00
333.85 -6.00 (-1.77%)
Volume
AVERAGE VOLUME
5-Day
114,981
10-Day
135,903
30-Day
266,570
162,149
  • Prev. Close

    339.85

  • Open Price

    341.00

  • Bid Price (Qty.)

    332.00 (15)

  • Offer Price (Qty.)

    333.80 (25)

NSE Live

Jun 16, 16:01
334.20 -5.75 (-1.69%)
Volume
AVERAGE VOLUME
5-Day
1,771,096
10-Day
2,033,884
30-Day
3,867,489
2,476,285
  • Prev. Close

    339.95

  • Open Price

    342.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    334.20 (3410)

Annual Report

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

Auditor's Report

1. We have audited the attached balance sheet of Hindustan Zinc Limited (the Company) as at 31 March 2011, the profit and loss account and cash flow statement of the Company for the year ended on that date, both annexed thereto. 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. 2. We conducted our audit in accordance with generally accepted auditing standards 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. 3. As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of Sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. We draw attention to Note 15 on Schedule 18, relating to long-term investment in equity shares of a power Company being classified as an intangible asset (Schedule 4) and amortised. This treatment is in preference to requirements of Accounting Standard 30 Financial Instruments: Recognition and Measurement, Accounting Standard 26 Intangible Assets; and Schedule XIV of the Companies Act, 1956. This has resulted in profit after tax being lower by Rs. 3.49 Crores (2010: Rs. 3.41 Crores), investments being lower by Rs. 98.41 Crores (2010: Rs. 98.41 Crores), fixed assets being higher by Rs. 51.36 Crores (2010: Rs. 56.03 Crores), deferred tax liability being lower by Rs. 15.27 Crores (2010: Rs. 14.08 Crores) and reserves and surplus being lower by Rs. 31.78 Crores (2010: Rs. 28.30 Crores). 5. Further to our comments in the Annexure referred to in paragraph 3 above, 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 purposes of our audit; b. in our opinion, proper books of accounts 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 Profit and Loss Account 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, the Profit and Loss Account and the 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 for Paragraph 4 above. Additionally, the Company has chosen to early adopt Accounting Standard 30, Financial Instruments: Recognition and Measurement arising from the Announcement of the Institute of Chartered Accountants of India on 29 March 2008 as stated in Note 16 on Schedule 18. e. in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2011; ii. in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date; and iii. in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. 6. On the basis of written representations received from the directors as on 31 March 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 March 2011 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956. Annexure to the Auditors Report (Referred to in paragraph 3 of Auditors Report of even date) 1. In our opinion and according to the information and explanation given to us, the nature of the Companys business/activities during the year are such that clauses (iii), (v), (vi), (x), (xii), (xiii), (xv), (xvi), (xviii), (xix), and (xx) of Companies (Auditors Report) Order 2003, are not applicable to the Company. In respect of the other clauses, we report as under: 2. In respect of its fixed Assets: i. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. ii. The fixed assets were physically verifed during the year by the Management in accordance with a regular programme of verifcation which, in our opinion, provides for physical verifcation of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verifcation. iii. In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed of by the Company during the year. 3. In respect of its inventories: i. As explained to us, the inventories were physically verifed during the year by the management which is at reasonable intervals. ii. In our opinion and according to the information and explanations given to us, the procedures of physical verifcation of inventories followed by the management were reasonable and adequate in relation to the size of Company and the nature of its business. iii. In our opinion, and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verifcation. 4. In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations, there is an adequate internal control system commensurate with the size of the Company and nature of its business with regards to purchases of inventory and fixed assets and the sale of goods. There are no sale of services. During the course of our audit, we have not observed any major weakness in such internal control system. 5. In our opinion, the Company has an adequate internal audit system commensurate with the size of the Company and the nature of its business. 6. We have broadly reviewed the books of account and records maintained by the Company relating to the manufacture of Zinc, Lead, Sulphuric Acid and generation of electricity, pursuant to the order made by the Central Government for the maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956, and are of the opinion that prima facie the prescribed accounts and records have been maintained and being made up. We have, however, not made a detailed examination of the records with a view to determining whether they are accurate or complete. 7. According to the information and explanations given to us, and the records of the Company examined by us: i. The Company has been regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other material statutory dues. ii. Disputed sales tax, excise duty, and Income-tax dues aggregating Rs. 21.24 Crores, Rs. 63.88 Crores and Rs. 561.08 Crores respectively, have not been deposited since the matters are pending with the relevant forum as per annexure A attached. 8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks and fnancial institutions. 9. In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in shares, securities, debentures and other investments. 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. All shares, securities, debentures and other investments have been held by the Company in its own name. 10. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short- term basis have not been used during the year for long- term investment. 11. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no significant fraud on the Company has been noticed or reported during the year. Amount Nature of statute Nature of dues (Rs. in Crores) Companys appeals: (a) Sales Tax Claim Disputes in respect of Sales Tax rate 21.24 difference/classification and stock transfers treated as sales for the financial year 1980-81 to 2009-10 (b) Central Excise Duty Admissibility of Modvat/Cenvat credit on 63.88 inputs, capital goods, alleged duty demand on captive use of intermediate goods, reversal of the amount on dispatch of by-products, duty on valuation and storage/handling losses, for the FY 1985-86 to FY 2009-10 (c) Income Tax Disputes in respect appeals pending 124.40 before CIT(A) for AY 1996-97 and AY 2008-09 Disputes in respect appeals pending 4.62 before Tribunal for AY 1998-99 to AY 2003-04 and AY 2006-07 Disputes in respect appeals pending before 25.00 High Court for AY 1992-93 to AY 1994-95, AY 1996-97 AY 1997-98 and AY 2003-04 Sub Total (a): 154.02 Departments appeals: Income Tax Relief granted by CIT (A) for AY 1989-90 331.69 to AY 1991-92, AY 1996-97 to AY 2009-10 for differences in computation, allowances of certain expenses and enhancement of rebate, etc. Relief granted by Tribunal for AY 1990-91 75.37 to AY 1994-95 & AY 1996-97 for differences in computation, allowances of certain expenses and enhancement of rebate, etc. Sub Total (b): 407.06 Sub Total (a) + (b): 561.08 TOTAL 646.21 Name of statue Forum pending at Companys appeals: (a) Sales Tax Claim Dy Commissioner, Joint Commissioner, CTO, Tribunal and High Court. (b) Central Excise Duty CESAT, Commissioner (Appeals) and High Court/ Supreme Court (c) Income Tax CIT(A) Tribunal High Court Departments appeals: Income Tax Tribunal/Assessing Officer High Court/Supreme Court TOTAL For Deloitte Haskins & Sells Chartered Accountants (Registration No. 117366W) Shyamak R. Tata Partner M. No. 38320 Place : Mumbai Date : April 21, 2011