To the Members of
Hindustan Copper Limited
Report on the Financial Statements
We have audited the accompanying Financial Statements of Hindustan Copper Limited("the Company") which comprise the Balance Sheet as at 31st March 2018 andthe Statement of Profit and Loss (including other comprehensive income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant 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 financial statements that give a true and fair view of the state ofaffairs(financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Financial Statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including the IndAS of
i) the state of affairs (financial position) of the Company as at 31st March 2018 and
ii) its profit (financial performance including other comprehensive income)
iii) its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
We draw attention to the following matters in the Note No 39-General Notes on Accountsto the Financial Statements:
1) Our observations as per Annexure Ato the Clause No. 28 which may have materialimpact on the state of affairs as well as the profit for the year and the comparativeprevious years' figures. However the company will review the observations during thecurrent year and make the accounting adjustments if needed.
2) Vide Clause No. 1 (i) which describes the uncertainty related to the outcome ofvarious lawsuits filed and claims of demand raised against the Company by variousauthorities/parties and its financial impact on the Financial Statements of the company.The Company has treated those demands as disputed and not acknowledged as debt in thebooks and treated the same as Contingent Liabilities the total amount of which comes toRs.51765.56 lacs.
3) Vide Clause No. 8 which describes the balances under the head Sundry CreditorsClaims Recoverable Loans & Advances Sundry Debtors and Deposits from and withvarious parties/Govt. Dept. etc. have not been confirmed in number of cases.
4) As stated in Clause No. 3 of Note No. 39 - General Notes on Accounts the title deedfor leasehold land received from the State Government and certain freehold lands acquiredthrough nationalization in accordance with Indian Copper Corporation (Acquisition ofUndertaking) Act 1972 in respect of Indian Copper Complex (ICC) have not yet beenexecuted in favour of the Company and in Clause No 6 of Note No 39 - General Notes onAccounts title deeds were not obtained/held in the name of the company in respect ofoffice flat at SCOPE Complex Delhi and Jaipur office for book value of Rs 62.88 Lac(Previous year Rs 68.06 Lac) as well as Land& Building for book value of Rs 6138.52Lac(Previous year Rs 6300.54Lac) of Gujarat Copper Project (GCP).
Our opinion is not modified in respect of these matters.
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 Section 143(11) of the Act we givein the Annexure-I a statement on the matters specified in paragraphs 3 and 4 of theOrder.
2. As required by section 143(5) of the Act we give in the Annexure-II a statement ofour replies to the directions /additional directions issued by the Comptroller and AuditorGeneral of India (C&AG)
3. As required by section 143(3) of the Act we report to the extent applicable that:
(a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination ofthose books.;
(c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andthe Statement of Change in Equity dealt with by this Report are in agreement with thebooks of account;
(d) In our opinion the aforesaid Financial Statements comply with the IndianAccounting Standards specified under Section 133 of the Act to the extent applicable.
(e) In our opinion provisions under section 164(2) of the Act regardingdisqualification of Directors are not applicable to a Government company in terms ofNotificationNo. G.S.R. 463(E) dated 05.06.2015 issued by Ministry of Corporate Affairs.
(f) With respect to the adequacy of internal financial control over financial reportingof the company and the operating effectiveness of such controls refer to our separatereport in the Annexure-III and
(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditor's) 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 financialposition in its Financial Statements (vide Clause No. 1 (i) of Note No. 39 - General Noteson Accounts) and our comments made in paragraph 'Emphasis of Matter'.
ii. The Company did not have any material foreseeable losses on long-term contractincluding derivative contracts.
iii. According to the information and explanations given to us there were no amountswhich were required to be transferred to Investor Education and Protection Fund by thecompany.
| ||For J Gupta & Co. |
| ||Chartered Accountants |
| ||Firm Reg. No 314010E |
| ||C A Abhishek Raj |
|Place: New Delhi ||Partner |
|Date: 30.05.2018 ||M.No. 302648 |