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Hindustan Zinc Ltd.

BSE: 500188 Sector: Metals & Mining
NSE: HINDZINC ISIN Code: INE267A01025
BSE LIVE 15:41 | 16 Oct 319.90 -0.50
(-0.16%)
OPEN

321.00

HIGH

323.80

LOW

318.70

NSE 15:45 | 16 Oct 319.85 -0.40
(-0.12%)
OPEN

322.00

HIGH

324.00

LOW

318.20

OPEN 321.00
PREVIOUS CLOSE 320.40
VOLUME 64119
52-Week high 333.40
52-Week low 226.75
P/E 14.76
Mkt Cap.(Rs cr) 135,167
Buy Price 0.00
Buy Qty 0.00
Sell Price 319.90
Sell Qty 380.00
OPEN 321.00
CLOSE 320.40
VOLUME 64119
52-Week high 333.40
52-Week low 226.75
P/E 14.76
Mkt Cap.(Rs cr) 135,167
Buy Price 0.00
Buy Qty 0.00
Sell Price 319.90
Sell Qty 380.00

Hindustan Zinc Ltd. (HINDZINC) - Auditors Report

Company auditors report

To the Members of Hindustan Zinc Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS nancial statements of Hindustan Zinc Limited("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Pro t and Loss including Other Comprehensive Income the Cash Flow Statementand the Statement of Changes in Equity for the year then ended and a summary of signicant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS nancial statements that give a true and fair view of the nancial positionnancial performance including other comprehensive income cash ows and changes in equityof the Company in accordance with accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) speci ed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal nancial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind AS nancial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS nancial statements based onour audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made thereunder. We conducted our audit of the IndAS nancial statements in accordance with the

Standards on Auditing issued by the Institute of Chartered Accountants of India asspeci ed under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Ind AS nancial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS nancial statements whether due to fraud or error. In making those riskassessments the auditor considers internal nancial control relevant to the Company'spreparation of the Ind AS nancial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind AS nancial statements. We believe that the audit evidence we haveobtained is suf cient and appropriate to provide a basis for our audit opinion on the IndAS nancial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Ind AS

nancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2017 its pro tsincluding other comprehensive income its cash ows and the changes in equity for the yearended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure 1 a statement on the matters speci ed in paragraphs 3 and4 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 bestof our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c) The Balance Sheet Statement of Pro t and Loss including Other Comprehensive Incomethe Cash Flow Statement and Statement of Changes in Equity dealt with by this Report arein agreement with the books of account;

d) In our opinion the aforesaid Ind AS nancial statements comply with the AccountingStandards speci ed under section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended;

e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disquali edas on March 31 2017 from being appointed as a director in terms of section 164 (2) ofthe Act;

f) With respect to the adequacy of the internal nancial controls over nancial reportingof the Company and the operating effectiveness of such controls refer to our separateReport in Annexure 2 to this report;

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its nancial positionin its Ind AS nancial statements - Refer Note 30 to the nancial statements; ii) TheCompany did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses;

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv) As per books of accounts of the Company and as represented by the management of theCompany the Company did not have cash balance as on November 8 2016 and December 302016 and has no cash dealings during this period.

Other Matter

The comparative nancial information of the company for the year ended March 31 2016and the transition date opening balance sheet as at April 1 2015 prepared in accordancewith Ind AS included in these Ind AS nancial statements have been audited by thepredecessor auditor who had audited the nancial statements for the relevant periods. Thereport of the predecessor auditor on the comparative nancial information and the openingbalance sheet dated April 20 2017 expressed an unmodi ed opinion.

For S.R. Batliboi & CO. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Raj Agrawal

Partner

Membership Number: 82028

Place: Mumbai

Date: April 20 2017

ANNEXURE 1

REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING REPORT ON O THER LEGAL AND REGULATORYREQUIREMENTS OF OUR REPORT OF EVEN D ATE

Re: Hindustan Zinc Limited ('the Company')

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of xed assets.

(b) All xed assets have not been physically veri ed by the management during the yearbut there is a regular programme of veri cation which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such veri cation.

(c) According to the information and explanations given by the management the titledeeds of immovable properties included in property plant and equipment are held in thename of the Company.

(ii) The management has conducted physical veri cation of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physical verication.

(iii) (a) The Company had granted loan to one company covered in the registermaintained under section 189 of the Act. In our opinion and according to the informationand explanations given to us the terms and conditions of the grant of such loan was notprejudicial to the company's interest.

(b) The schedule of repayment of principal and payment of interest has been stipulatedfor the loan granted and the repayment/receipts were regular.

(c) There are no amounts of loan granted to the company listed in the registermaintained under section 189 of the Act which were overdue for more than ninety days.

(iv) In our opinion and according to the information and explanations given to usthere are no loans investments guarantees and securities given in respect of whichprovisions of section 185 and 186 of the Act are applicable and hence not commented upon.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act related to the manufacture of products and generation ofelectricity and are of the opinion that prima facie the speci ed accounts and recordshave been made and maintained. We have not however made a detailed examination of thesame.

(vii) (a) Undisputed statutory dues including provident fund income-tax sales-taxservice tax duty of custom duty of excise value added tax cess and other statutorydues have generally been regularly deposited with the appropriate authorities though therehas been a slight delay in a few cases. The provisions relating to employees' stateinsurance are not applicable to the Company.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income-tax service tax sales-tax duty of customduty of excise value added tax cess and other statutory dues were outstanding at theyear end for a period of more than six months from the date they became payable. Theprovisions relating to employees' state insurance are not applicable to the Company.

(c) According to the records of the Company the dues of income-tax sales-tax servicetax duty of custom duty of excise value added tax and cess on account of any disputeare as follows:

Name of the statute Nature of the dues Amount * (` in Crore) Period (Financial year) to which amount relates Forum where the dispute is pending
Income tax act 1961 Income tax 2558 1995-96 1996-97 1998-99 2007-08 2009-10 2011-12 2012-13 Commissioner of Income tax (Appeals)
1350 1988-89 to 1990-91 Income Tax
1992-93 1995-96 Appellate Tribunal
1997-98
1999-00 to 2008-09
2010-11
113 1989-90 to 1996-97 High Court /
1998-99 Supreme Court
2000-01 to 2008-09
Customs Act 1962 Customs duty 42 2008-09 to 2013-14 CESTAT
Central Excise Act 1944 Excise duty 304 1991-92 CESTAT
1995-96 to 2015-16
32 1997-98 to 2002-03 Commissioner
2006-07 to 2015-16 (Appeals)
-** 2002-03 to 2011-12 High Court
Rajasthan sales tax act 1994 Sales tax 27 1994-95 Deputy Commissioner
1996-97 to 2003-04 (Appeals)
2005-06 to 2013-14
Finance Act 1994 Service tax 20 2002-03 to 2004-05 Commissioner (Appeals)
2007-08 to 2014-15
38 1997-98 1998-99 CESTAT
2004-05 to 2015-16

* Net of amounts paid under protest/adjusted against refunds ** Amount involved is ` 44Lakhs.

(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowings to nancialinstitutions. The Company did not have any outstanding dues in respect of banksgovernment or debenture holders during the year.

(ix) According to the information and explanations given by the management the Companyhas not raised any monies by way of initial public offer / further public offer / debtinstruments or term loans hence reporting under clause 3(ix) is not applicable to theCompany and hence not commented upon.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the nancial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or material fraud on theCompany by the of cers and employees of the Company has been noticed or reported duringthe year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe nancial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause 3(xiv) are not applicable tothe Company and not commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withthem as referred to in section 192 of Companies Act 2013.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S.R. Batliboi & CO. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Raj Agrawal

Partner

Membership Number: 82028

Place: Mumbai

Date: April 20 2017

ANNEXURE 2

REFERRED TO IN PARA 2(F) UNDER THE HEADING REPORT ON O THER LEGAL AND REGULATORYREQUIREMENTS T O THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND ASFINANCIAL STATEMENTS OF HINDUSTAN ZINC LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal nancial controls over nancial reporting of Hindustan ZincLimited ("the Company") as of March 31 2017 in conjunction with our audit ofthe Ind AS nancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalnancial controls based on the internal control over nancial reporting criteria establishedunder the Committee of Sponsoring Organizations of the Treadway Commission (2013framework) ('COSO 2013 criteria') which considers the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalnancial controls that were operating effectively for ensuring the orderly and ef cientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable nancialinformation as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal nancial controlsover nancial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing as speci ed under section 143(10)of the Companies Act 2013 to the extent applicable to an audit of internal nancialcontrols and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internal

nancial controls over nancial reporting were established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal nancial controls system over nancial reporting and their operatingeffectiveness. Our audit of internal nancial controls over nancial reporting includedobtaining an understanding of internal nancial controls over nancial reporting assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the nancial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is suf cient and appropriate toprovide a basis for our audit opinion on the internal nancial controls system over nancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal nancial control over nancial reporting is a process designed toprovide reasonable assurance regarding the reliability of nancial reporting and thepreparation of nancial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal nancial control over nancialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly re ect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of nancial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the nancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal nancial controls over nancialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal nancial controls over nancialreporting to future periods are subject to the risk that the internal nancial control overnancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internal nancialcontrols system over nancial reporting and such internal nancial controls over nancialreporting were operating effectively as at March 31 2017 based on the internal controlover nancial reporting in COSO 2013 criteria considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

For S.R. Batliboi & CO. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Raj Agrawal

Partner

Membership Number: 82028

Place: Mumbai

Date: April 20 2017