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National Aluminium Company Ltd.

BSE: 532234 Sector: Metals & Mining
NSE: NATIONALUM ISIN Code: INE139A01034
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OPEN 39.30
PREVIOUS CLOSE 39.05
VOLUME 167308
52-Week high 59.50
52-Week low 36.90
P/E 23.38
Mkt Cap.(Rs cr) 7,285
Buy Price 39.00
Buy Qty 767.00
Sell Price 39.10
Sell Qty 20664.00
OPEN 39.30
CLOSE 39.05
VOLUME 167308
52-Week high 59.50
52-Week low 36.90
P/E 23.38
Mkt Cap.(Rs cr) 7,285
Buy Price 39.00
Buy Qty 767.00
Sell Price 39.10
Sell Qty 20664.00

National Aluminium Company Ltd. (NATIONALUM) - Auditors Report

Company auditors report

To the Members of

National Aluminium Company Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of National Aluminium CompanyLimited ( the Companyfi) which comprise the balance sheet as at March 31 2019 andthe statement of profit and loss (including other comprehensive income) statement ofchanges in equity and statement of cash fiows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information (hereinafier referred to as the financial statementsfi).

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 theCompanies Act 2013 ( the Actfi) in the manner so required and give a true and fair viewin conformity with Indian Accounting Standards (Ind AS) prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended andthe accounting principles generally accepted in India of the state of afiairs of theCompany as at March 31 2019 profit total comprehensive income changes in equity andits cash fiows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditorfis Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is suficient and appropriate to provide a basisfor our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.The key audit matters that we have identified in the current year are as follows:

Other Information

e Companyfis Board of Directors is responsible for the other information. The otherinformation comprises the information contained in Directorsfi Report including AnnualReport on CSR Activities Management Discussion & Analysis Report BusinessResponsibility Report Report on Conservation of Energy Technology Absorption and ForeignExchange Earnings and outgo Report on Corporate Governance annexed thereto and otherinformation contained in the Annual Report but does not include the financial statementsand our report thereon. These reports are expected to be made available to us afier thedate of this auditorsfi report.

Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the other information if we conclude that there is material misstatementtherein we are required to communicate the matter to those charged with governance.

Managementfis Responsibility for the Financial Statements

e Companyfis Board of Directors is responsible for the matters stated in section 134(5)of the Act with respect to the preparation and presentation of these financial statementsthat give a true and fair view of the financial position financial performance (changesin equity) and cash fiows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards (Ind AS) specified undersection 133 of the Act. is responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating efiectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompanyfis ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

ose Board of Directors are also responsible for overseeing the Companyfis financialreporting process.

Auditorfis Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditorfis report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to infiuence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the fina ncial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is suficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances.

Under section 143(3)(i) of the Act we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating efiectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Companyfisability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditorfis report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditorfisreport. However future events or conditions may cause the Company to cease to continue asa going concern. If we conclude that a material uncertainty exists we are required todraw attention in our auditorfis report to the related disclosures in the financialstatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditorfis report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of fina the ncial statementsincluding the disclosures and whether the fina ncial statements represent the underlyingtransactions events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditorfis report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditorfis Report) Order 2016 ( the Orderfi) issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Actwe give in the Annexure Afi to this report a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. In compliance to directions of the Comptroller and Auditor General of Indiau/s.143(5) of the Act we give in Annexure Bfi to this report a statement on the mattersspecified therein.

3. 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 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 of those books.

(c) e Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) Section 164(2) of the Act regarding disqualification of directors is not applicableto the Company by virtue of Notification No. G.S.R. 463(E) dated 05.06.2015 issued by theMinistry of Corporate Afiairs Government of India.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating efiectiveness of such controls refer to ourseparate Report in Annexure Cfi.

(g) With respect to the other matters to be included in the Auditorfis 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 pending litigations the liabilities in respect of which is eitherprovided for or disclosed as contingent liabilities – Refer

Note 25 to the financial statements. The impact of these pending litigations on thefinancial position of the Company is subject to their judicial outcome;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there 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.

For Guha Nandi & Co. For Patro & Co.
Chartered Accountants Chartered Accountants
FRN: 302039E FRN: 310100E
(CA Dr. B. S. Kundu) (CA Ambika Prasad Mohanty)
Partner Partner
Membership No.051221 Membership No.057820
Place : New Delhi
Date : 30.05.2019

ANNEXURE – Afi

ANNEXURE TO THE INDEPENDENT AUDITORfiS REPORT ON STANDALONE FINANCIAL STATEMENTS FORTHE YEAR ENDED 31ST MARCH 2019 OF NATIONAL ALUMINIUM COMPANY LIMITED

(Referred to in paragraph 1 under the heading of Report on Other Legal and RegulatoryRequirementsfi of our Report of even date)

i) (a) e Company is maintaining proper records showing full particulars includingquantitative details and situation of its property plant and equipment includingintangible assets.

(b) All movable assets of the Company are physically verified by the management everyyear. The frequency of verification in our opinion is reasonable. No materialdiscrepancies were noticed on such verification conducted during the year; Non-movableassets have been physically verified by the management at an interval of three yearswhich in our opinion is reasonable having regard to the size and nature of assets of theCompany; No material discrepancies between book records and physical assets have beennoticed;

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties are heldin the name of the Company. Out of 8047.05 acres of freehold land and 10558.29 acres ofleasehold land held by the Company title/lease deeds are not yet executed in respect of64.78 acres of freehold and 1624.18 acres of leasehold land respectively. However theCompany has been permitted by the concerned authorities to carry on its operation on thesaid land. Registration formalities in respect of ofice space for 6459 sfi. in Kolkata isalso not completed.

ii) Inventories except stocks relating to expansion project stocks lying with thirdparties and stocks-in-transit have been physically verified during the year by firms ofChartered Accountants appointed by the management for this purpose. The frequency ofverification is reasonable. The discrepancies noticed on physical verification betweenphysical stocks and book records in case of shortages have been properly dealt with in thebooks of accounts while excesses have been ignored;

iii) e Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Consequently clauses (iii) (a) (b) & (c) ofparagraph 3 of the Order are not applicable;

iv) Section 185 of the Act regarding loans to directors is not applicable to theCompany by virtue of Notification No. G.S.R. 463(E) dated 05.06.2015 issued by theMinistry of Corporate Afiairs Govt. of India. In our opinion and according to theinformation and explanations given to us the Company has complied with the provisions ofsection 186 of the Act with respect to the loans and investments made.

v) e Company has not accepted any deposits from the public.

vi) We have broadly reviewed the books and records maintained by the Company asspecified by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 in respect of manufacturing activities and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have however not made a detailed examination of the records with a viewto determine whether they are accurate and complete.

vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company in our opinion the Company is generallyregular in depositing undisputed statutory dues including provident fund employeesfistate insurance income tax goods and service tax duty of customs cess electricityduty and other material statutory dues with the appropriate authorities and there are noundisputed statutory dues as at 31st March 2019 outstanding for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us following statutory dueshave not been deposited by the Company on account of disputes:

Name of the Statute Nature of Dues Amount disputed (fi in crore) Amount deposited (fiin Crore) Forum where disputes are pending
Odisha Sales Tax Act 1947 Central Sales Tax OST/CST & VAT 121.61 24.00 Commissioner
Act 1957 & Odisha Value Added Tax Act 2004 173.10 54.99 Tribunal
81.81 3.86 High Court
376.52 82.85
Odisha Entry Tax Act 1999 Entry Tax 21.23 5.57 Commissioner
154.93 58.88 Tribunal
45.65 5.16 High Court
221.81 69.61
Central Excise Act 1944 Excise Duty 9.61 0.41 Commissioner
11.14 0.86 Tribunal
397.58 0.10 High Court
418.33 1.37
Finance Act 1994 Service tax 15.56 2.84 Commissioner
6.36 0.25 Tribunal
21.92 3.09
Customs Act 1962 Custom Duty 0.09 0.05 Commissioner
1.34 0.24 Tribunal
101.33 1.66 High Court
102.76 1.95
Income Tax Act 1961 Income Tax 50.56 Commissioner
671.11 538.98 Tribunal
39.95 58.16 High Court
761.62 597.14
Indian Stamp (Odisha Amendment) Act 2013 Motor Vehicles Act 1988 Stamp duty 191.72 High Court
Road Tax 2.65 Commissioner
2.65
Total: 2097.33 756.01

viii) Except bill discounting arrangement with banks the Company does not have anyloans or borrowings from any financial institution banks government or debentureholders. The Company has not defaulted in repayment of the loans obtained under the billdiscounting facility.

ix) e Company did not raise any money by way of initial public ofier or further publicofier (including debt instruments) and term loans during the year.

x) According to the information and explanations given to us no fraud by the Companyor any material fraud on the Company by its oficers or employees has been noticed orreported during the year.

xi) Section 197 of the Act regarding managerial remuneration is not applicable to theCompany by virtue of Notification No. G.S.R. 463(E) dated 05.06.2015 issued by theMinistry of Corporate Afiairs Govt. of India.

xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi company.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.

xiv) According to the information and explanations give to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

xv) According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into any non-cash transactionswith any director or persons connected with him.

xvi) e Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.

For Guha Nandi & Co. For Patro & Co.
Chartered Accountants Chartered Accountants
FRN: 302039E FRN: 310100E
(CA Dr. B. S. Kundu) (CA Ambika Prasad Mohanty)
Partner Partner
Membership No.051221 Membership No.057820
Place : New Delhi
Date : 30.05.2019

ANNEXURE– Bfi

ANNEXURE TO THE INDEPENDENT AUDITORfiS REPORT ON THE STANDALONE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31ST MARCH 2019 OF NATIONAL ALUMINIUM COMPANY LIMITED

(Referred to in paragraph 2 under the heading of Report on Other Legal and RegulatoryRequirementsfi of our Report of even date)

Report on the directions under section 143(5) of the Companies Act 2013 by theComptroller & Auditor General of India

According to the information and explanations given to us by the management and on thebasis of our examination of books and records of the Company we report that:

1. The Company has SAP system in place to process all the accounting transactionsthrough IT system. AS there is no processing of accounting transactions outside IT systemcomment on the integrity of the accounts and financial implications of accountingtransactions processed outside IT system does not arise.

2. The Company has not obtained any loan and as such question of restructuring of loanby the lender does not arise.

3. During the year no fund has been received by the Company from Central/State agenciesfor any scheme and hence accounting of receipt of fund and utilization thereof as perterms and conditions does not arise.

For Guha Nandi & Co. For Patro & Co.
Chartered Accountants Chartered Accountants
FRN: 302039E FRN: 310100E
(CA Dr. B. S. Kundu) (CA Ambika Prasad Mohanty)
Partner Partner
Membership No.051221 Membership No.057820
Place : New Delhi
Date : 30.05.2019

ANNEXURE– C

ANNEXURE TO THE INDEPENDENT AUDITORfiS REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31ST MARCH 2019 OF NATIONAL ALUMINIUM COMPANY LIMITED

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

We have audited the internal financial controls over financial reporting of NATIONALALUMINIUM COMPANY LIMITED ( the Companyfi) as of March 31 2019 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Managementfis Responsibility for Internal Financial Controls

e Companyfis management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating efiectively for ensuring the orderly and eficientconduct of its business including adherence to Companyfis policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditorsfi Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the Guidance Notefi) and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. oseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated efiectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingefiectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating efiectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditorfis judgment including the assessment of the risks ofmaterial misstatement of financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is suficient and appropriate toprovide a basis for our audit opinion on the Companyfis internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

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

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting 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 financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating efiectively as at March 31 2019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Guha Nandi & Co. For Patro & Co.
Chartered Accountants Chartered Accountants
FRN: 302039E FRN: 310100E
(CA Dr. B. S. Kundu) (CA Ambika Prasad Mohanty)
Partner Partner
Membership No.051221 Membership No.057820
Place : New Delhi
Date : 30.05.2019