1. We have audited the attached Balance Sheet of NATIONAL ALUMINIUM
COMPANY LIMITED, as at 31st March, 2011, the Profit and Loss Account and
the Cash Flow Statement of the Company for the year ended on that date,
both annexed thereto. These financial statements are the responsibility
of the Company''s Management. Our responsibility is to express an
opinion on these financial statements based on our audit.
2. 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 misstatements. 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 the significant estimates
made by the 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 (Auditor''s Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4 A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. 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
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
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
d. in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3c) of the
Companies Act, 1956/
e. In terms of Government of India, Ministry of Finance, Department of
Company Affairs, Notification No.GSR 829 (E) dated 21st October,2003,
Government Companies are exempt from the applicability of provisions of
Section 274 (1) (g) of the Companies Act,1956,
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with significant
accounting policies and notes on accounts appearing in Schedule Y and
Schedule Z respectively 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 31st March, 2011.
ii. in the case of the Profit & 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.
ANNEXURE TO THE AUDITORS''REPORT
(REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE)
1. (a) The company has maintained records showing full particulars
including quantitative details and situation of fixed assets.
(b) The company has a programme of conducting physical verification of
non-movable assets at an interval of three years, which in our opinion
is reasonable having regard to the size of the company and nature of
its assets. All the movable assets were physically verified during the
year. As informed to us, no material discrepancies were noticed on such
verification wherever reconciliations have been carried out and the
same has been adjusted in the books.
(c) In our opinion and according to the information and explanations,
the Company has not disposed off substantial part of fixed assets
during the year.
2. (a) In respect of its inventories as explained to us, all
inventories except stocks relating to expansion project, stocks lying
with third parties and stocks in-transit, have been physically verified
by the management at reasonable intervals during the year.
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories. The discrepancies noticed on physical stock and book
records relating to shortages have been dealt with in the books of
account, while excesses have been ignored.
3. (a) According to information and explanations given to us, the
Company has neither granted nor taken any loans, secured or unsecured,
to/from Companies, firms or other parties listed in the Register
maintained under section 301 of the Companies Act, 1956. Consequently,
clauses (iii)(a) to (g) of paragraph 4 of the order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in the internal control system.
5. According to information and explanations given to us, the Company
has not entered into any contracts or arrangements which require to be
recorded in register maintained under section 301 of the Companies Act,
6. The Company has not accepted any deposits from the public during
7. In our opinion, the Company has an adequate internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of accounts maintained by the
Company, pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1) (d) of the Companies
Act., 1956 in respect of manufacturing activities and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained. We have, however, not made a detailed examination
of the records with a view to determining whether they are accurate and
9. 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, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise duty, Cess and
Electricity Duty with the appropriate authority.
According to the information and explanations given to us, no
undisputed amounts are payable in respect of Income Tax, Sales Tax,
Wealth Tax, Service Tax, Custom Duty, Excise duty, Cess and other
material statutory dues in arrears as at 31st March, 2011 for a period
of more than six months from the date on which they become payable.
According to the information and explanations given to us, there are
disputed statutory dues which have not been deposited are given herein
Statute Nature of Dues Amount Amount Forum where
disputed deposited disputes are
Crore Rs. in
Sales Tax Sales Tax 141.11 17.02 Commissionrate
309.46 73.76 Tribunal
5.04 4.21 High Court
Entry Tax Entry Tax 36.14 13.47 Commissionrate
30.48 21.55 Tribunal
8.46 4.1 High court
Act,1944 Excise Duty 63.31 2.54 Commissionrate
36.42 0.59 Tribunal
1962 Customs Duty 0.06 0.06 Commissionrate
Act,1961 Income Tax 193.68 201.83 Commissionrate
82.82 82.33 Tribunal
10. The Company does not have accumulated losses at the end of the
financial year. The company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
11. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions, banks and debenture holders.
12. Based on our examination of the records and the information and
explanations given to us , the Company has not granted any loans
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion the Company is not a chit fund/nidhi/mutual benefit
fund/ society. Therefore, the provisions of clause (xiii) of paragraph
4 of the order are not applicable to the company.
14. The Company is not dealing or trading in shares , securities,
debentures and other investments. Therefore the provisions of clause
4(xiv) of the order are not applicable to the company.
15. According to the informationand explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. Based on our examinations of the records and the information and
explanations given to us, the Company has not raised any term loan
during the year under audit.
17. According to the information and explanations and on an overall
examination of the Balance Sheet of the Company, we report that no
funds raised on short-term basis have been used for long- term
investment of the company.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to Companies,
firm or other parties covered in the register maintained under section
301 of the Companies Act, 1956.
19. Based on our examination of the records and the information and
explanations given to us, the Company has not issued debenture during
20. TheCompVnThas not raised any money by way of public issue during
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the course of our audit.
For P.A. & Associates For C.K.Prusty & Associates
Chartered Accountants Chartered Accountants
FRN 313085E FRN 323220E
(CAS.S.Poddar) (CA C.K. Prusty)
Membership No.51113 Membership No.57318
Place: New Delhi
Date : 30th May,2011