hindustan copper ltd share price Auditors report


To

The Members of Hindustan Copper Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone Financial Statements of Hindustan Copper Limited ("the Company"), which comprise the Balance Sheet as at March 31,2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and notes to the Standalone Financial Statements including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023 and its profit (including Other Comprehensive Income), changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the "AuditorRs.s Responsibilities for the Audit of the Standalone Financial Statements" section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.

Emphasis of Matter

We draw attention to the following matters:

a) Note No. 40 (1)(i) of the accompanying Standalone Financial Statements which describes the uncertainty related to the outcome of the lawsuits filed and demands raised against the Company by various parties and Government authorities;

b) Note No. 40(5) of the accompanying Standalone Financial Statements which states that the Lease agreement for Rakha Mining Lease at the Indian Copper Complex was valid up to 28.08.21. It is also to be noted that the Lease agreement for Kendadih mines expire on 02.06.23. Application for renewal for both the lease agreements have been submitted as per regulations, and is currently under process.

c) Note 40(5) of the Standalone Financial Statements which states that the mined-out ore kept at pit top of Surda mine has not been transported to the Concentrator Plant since July 2022, due to non-issuance of challan/permit by State Authorities, Jharkhand due to non-receipt of Surda Lease Deed, which is under process. Consequently the vendor bills are lying unprocessed and further extraction of ore is currently not happening.

d) Note No.40(6) the accompanying Consolidated Financial Statements wherein the Company has made assessment of possible impairment loss during the year with respect to Plant and Machinery at the Nickel Plant and Moubhandar Plant, having book value of Rs.5,649.07. The study revealed that the fair market value of the specified Plant and Machinery as on 31st March 2023, was higher than their Book value and consequently there was no requirement to recognize any Impairment Loss during the year, as per provisions of Ind AS 36

e) Note No.40 (7) of the accompanying Standalone Financial Statements which states that the title deeds for freehold

and leasehold land and building acquired in respect of Gujarat Copper Project (GCP) with book value of Rs.4,756.01 Lakh (PY:-Rs.5,026.13 Lakh) as at March 31,2023 are yet to be executed in favor of the Company; f) Note No.40 (9) of the accompanying Standalone Financial Statements wherein, balances under the head Claims Recoverable, Loans & Advances, Deposits from and with various parties and certain balances of trade receivables, trade payables and other current liabilities have not been confirmed as at March 31,2023, although letters have been sent by the Company seeking confirmation of balances. Consequential impact upon receipt of such confirmation / reconciliation / adjustments of such balances, if any is not ascertainable at this stage.

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the year ended March 31,2023. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

fl Key Audit Matters No. AuditorRs.s Response
1. Adjustment of revenue and DroDer aDDlication of Ind AS 115 "Revenue from Contracts with Customers" in respect of accuracy of revenue recognition and adjustments for the ore quality variances involving critical estimates Principal Audit Procedures
Referred in Note 2.5 of the Standalone Financial Statements We have assessed the application of the provisions of Ind AS 115, in respect of the CompanyRs.s revenue recognition and appropriateness of the estimated adjustments in the process
The revenue recognized by the Company in any particular contract , is as per the contract terms. There are subsequent adjustments made to the initial transaction price for a) the difference in LME rate considered during the initial transaction and the Quotational Period b) for mismatch in the grade of the Ore. We have selected transactions on sample basis and tested for identification of contracts, involving disagreements relating to grade mismatch , evaluation of the satisfaction of the performance obligation , and checking for the adjustment to the revenue due to variation in the transaction price
The variation in the contract price for mismatch of grade of the ore, if not settled mutually between the parties to the contract is referred to third party testing. Audit Conclusion
The final adjustment to revenue is then made basis the outcome of the findings of the third party No material exceptions identified.
2. Provisions recognized and Contingent liabilities disclosed with respect to certain legal and tax matters Principal Audit Procedure
The Company and its jointly controlled entity is subject to a number of legal, regulatory and tax cases for which final outcome cannot be easily predicted and which could potentially result in significant liabilities. Our audit procedures relating to provisions recognized and contingencies disclosed regarding certain legal and tax matters included the followings:
ManagementRs.s disclosures with regards to contingent liabilities are presented in Note No.40 (1) (i) to the Standalone Financial Statements. ¦ Understanding and evaluating the design and operating effectiveness of controls over the recognition, measurement, presentation and disclosures made in the Standalone Financial Statements in respect of these matters;
The assessment of the risks associated with the litigations is based on complex assumptions. This requires use of judgment to establish the level of provisioning, increases the risk that provisions and contingent liabilites may not be approprlately provided against or adequately disclosed. ¦ Obtaining details of legal and tax matters, inspecting the supporting documents to evaluate managementRs.s assessment of probability of outcome and the magnitude of potential loss, and testing related to provisions and disclosures in the Standalone Financial Statements
¦ Reviewing orders and other communication from regulatory authorities and management responses thereto;
¦ Reviewing management expertRs.s legal advice and opinion as applicable, obtained by the companyRs.s management for evaluating certain legal matters and evaluating competence and capabilities of the experts; and
¦ Using auditorRs.s own judgment in evaluating certain significant and complex direct and indirect tax matters
Audit Conclusion
No material exceptions identified
3. Assessment of indication of impairment and the recoverable amount of cash aeneratina units (CGUs) Principal Audit Procedures
Refer Note40(6) of the accompanying Standalone Financial Statements. Our audit procedures related to assessment of indication of impairment and recoverable amounts of these CGUs included the followings:
There is an assessment done by the Company at the end of each reporting period for any indication that an asset may be impaired. • Understanding and evaluating the design and operating effectiveness of controls for identification and assessment of any potential impairment, including determining the carrying amount and recoverable amount of the CGUs;
Based on such indications, impairment testing was performed by the management with the help of an independent third party, in accordance with the requirements of Ind AS 36 "Impairment of Assets" for their Nickel Plant and the Moubhandar Plant situated in Ghatshila • Relying on the report of external agency appointed solely for evaluating the assessment of impairment at plants this year and
Based on the report submitted by the independent third party, no need was identified for making any Impairment Provisions for the FY 2022-23 • Using auditorRs.s own judgments/assessment for testing appropriateness of the method and model used for determining the recoverable amount, and mathematical accuracy of the modelsRs. calculations
• Testing related presentation and disclosures in the Standalone Financial Statements.
Audit Conclusion
No material exceptions identified
4. Valuation of employeesRs. defined benefit obligations and other lona term benefits Our audit procedures relating to the valuation of employees defined benefit obligations and other long term benefits included the following :
The company has recognized long-term employee benefit liabilities and defined benefit obligations, (net of planned plan asset against funded gratuity obligation) in the Standalone Financial Statements. The valuation of employee benefit obligations is dependent on market conditions and assumptions made. The key audit matter specifically relates to the following key assumptions, like Discount rate, Life expectancy and Inflation forecasts. The setting of these assumptions is complex, and involves the exercise of significant judgment on the part of the Management along with the external Actuarial Specialists. • In testing the valuation, we have examined the reports of external actuarial specialists to review the key actuarial assumptions, and the methodology adopted for the calculation of the liability
• We evaluated the assumption made by the management and the Actuary to ensure that they are consistent with the principles of Ind AS 19
Audit Conclusion
Based on the above procedures, we are satisfied that the methodology and assumptions applied in relation to determining the liabilities are acceptable

Information Other than the Standalone Financial Statements and AuditorRs.s Report Thereon

The CompanyRs.s Board of Directors is responsible for the other information. The other information comprises the information included in the Report of the Board of Directors, Management Discussion and Analysis Report, Report on CSR activities, Business Responsibility Report, Corporate Governance Report and other annexure to Directors Report including ShareholderRs.s Information, but does not include the Standalone Financial Statements and our auditorRs.s report thereon. The Report of the Board of Directors including annexures and other related statements forming part of the CompanyRs.s annual report is expected to be made available to us after the date of our this auditor report.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance or conclusion thereon.

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.

If, based on the Report of the Board of Directors including annexures and other related statements which form part of the annual report and made available to us after the date of this audit report, we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance

Responsibility of Management and Those Charged with Governance for the Standalone Financial Statements

The CompanyRs.s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the Standalone Financial Statements, the Board of Directors is responsible for assessing the CompanyRs.s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the CompanyRs.s financial reporting process.

AuditorRs.s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorRs.s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.

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

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on

whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of managementRs.s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the CompanyRs.s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorRs.s report to the related disclosures in the Standalone 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 auditorRs.s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditorRs.s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (AuditorRs.s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of sub section (11) of Section 143 of the Act, we give in "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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 best of our knowledge and belief were necessary for the purposes of our audit except as reported in Clause (c) of the "Emphasis of Matters" paragraph above;

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 those books;

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid Standalone Financial Statements comply with the Ind AS specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

e) In pursuance to the Notification No. G.S.R 463(E) dated 05-06-2015 issued by Ministry of Corporate Affairs, Section 164(2) of the Act regarding disqualification of Directors, is not applicable to the Company, since it is a Government Company;

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

g) As per Notification No. GSR 463(E) dated 05-06-2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 of the Act is not applicable to the Government Companies.

Accordingly, reporting in accordance with requirement of provisions of Section 197(16) of the Act is not applicable on the Company.

h) With respect to the other matters to be included in the AuditorRs.s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its Standalone Financial Statements-[Refer Note No. 40(1) to the accompanying Standalone Financial Statements];

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

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

iv. (a) The management has represented that, to the best of their knowledge and belief, other than as disclosed in the notes to accounts, no funds have been have been advanced or loaned or invested ( either from borrowed funds or share premium or any other source or kind of funds) by the Company to or any other person(s) or entity(ies) , including foreign entities ("Intermediaries), with the understanding , whether recorded in writing or otherwise, that the intermediary shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company(" Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The management has represented, that to the best of its knowledge and belief, other than as disclosed in the notes to accounts, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties") , with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities, identified in any manner whatsoever by, or on behalf of the Funding Party, ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(c) Based on such audit procedures, we have considered reasonable and appropriate in the circumstances , nothing has come to our notice that has caused us to believe that the representation under sub-clause (a) and (b) contain any mutual misstatement,

3) As required under Section 143(5) of the Act, we give in the "Annexure C", a statement on the directions and subdirections issued by the Comptroller and Auditor General of India in respect of the Company.

4) The dividend declared or paid during the year by the Company is in compliance with Section 123 of the Companies Act 2013,

For Ghoshal and Ghosal
Chartered Accountants
(FirmRs.s Registration No.FRN 304013E)
CA Siddhartha Pal
Partner
Place: Kolkata (Membership No.059017)
Date: 19-05-2023 UDIN: 23059017BGXJVS1641

"Annexure A" to the Independent AuditorRs.s Report

{Referred to in Paragraph (1) of "Report on Other Legal and Regulatory Requirements"section of our

Independent AuditorRs.s Report}

i. In respect of the CompanyRs.s fixed assets:

(a) The Company has maintained records showing full particulars, including quantitative details and situation of fixed assets. Further asset identification numbers and codification of some movable tangible assets along with make/model number needs to be assigned to the assets and particulars like quantitative details in case of few old assets along with their description, particulars of depreciation, amortization or impairment have to be properly disclosed in the Fixed Asset Register. Location details and areas of freehold land and leasehold land held by the Company at different locations needs to be updated in the Fixed Asset Register.

(b) According to the information and explanations given to us, the fixed assets of the Company has been physically verified by the management every year so that all the assets of Units/offices are covered once in a block of three years interval, which in our opinion is reasonable having regard to the size of the Company and the nature of its business. As per the phased program, physical verification of assets held at Malanjkhand Copper Project, Gujarat Copper Project, Indian Copper Compex and Rakha Copper Project ,have been carried out during the year. Discrepancies noted have been properly dealt with in the books of accounts.

(c) On the basis of the information compiled by the Company and considering the voluminous nature and various locations, we report that title/lease deeds and other documents of title in respect of immovable properties as referred in Note No.3A, 3B and 3C of the accompanying Standalone Financial Statements, are held in the name of the Company, except in case of lands (both freehold and leasehold) and building acquired in respect of Gujarat Copper Project having net book value of Rs. 4,756.01 Lakh (Previous Year Rs. 5026.13Lakh) as at March 31, 2023 are yet to be executed in favor of the Company. [Note No.40 (7) of the accompanying Standalone Financial Statements].

Description of Property Gross carrying value of Land as per FA register Held in the name of Whether promoter, director, or their relative or employee Period held Reason for not being held in the name of the Company
Plot No: 747, GIDC Mega Estate, Jhagadia, Bharuch, PIN Code- 393110 Rs. 37,95,26,288.69 Jhagadia Copper Limited No Since Oct 2016 Case filed in HonRs.ble High Court, Ahmedabad

ii. The physical verification of Semi-Finished and In-Process (WIP) stocks and Finished Goods as per the policy adopted by the Company is conducted departmentally in all the units (Indian Copper Complex, Khetri Copper Complex, Malanjkhand Copper Project, Taloja Copper Project & Gujarat Copper Project) at reasonable intervals during the year by a duly approved committee and again at the end of the every financial year, at least once in a block of three years along with an Independent external agency appointed in this regard by duly approved committee. During the year, the inventory of semi-finished and In-process (WIP) and inventory of Finished Goods have been physically verified and certified by duly appointed external agencies at Malanjkhand Copper Project, In our opinion and according to the information and explanations given to us, discrepancies noticed on such physical verification of inventories, which were not material, have been properly dealt with in the books of accounts.

In respect of stores and spares, physical verification has been conducted by the external agencies at Indian Copper Complex, Malanjkhand Copper Project, Khetri Copper Complex and Taloja Copper Project. In our opinion and according to the information and explanations provided to us, discrepancies noticed on such physical verification of inventories, which were not material, have been properly dealt with in the books of accounts.

We have also checked the quarterly statements filed by the Company with Banks with whom they hold a sanctioned working capital limit in excess of Rs.5 crores and have not come across any material discrepancies.

iii. In our opinion and according to the information and explanation given to us, the Company has not granted any loans, secured or unsecured to any companies, firms, limited liability partnership or other parties, covered in the register maintained under section 189 of the Companies Act, 2013. Hence, the clauses (iii) (a), (iii) (b), (iii) (c), (iii) (d), (iii)

(e) and (iii) (f) of the paragraph 3 of the order are not applicable to the Company.

iv. According the information and explanations given to us, the Company has not given any loan or made any investment, given any guarantee or provided any security in connection with such loan given/Investment made to which provisions of Section 185 of the Act apply. The provisions of Section 186 of the Act, in our opinion, are not applicable to the Company.

v. In our opinion and according to information and explanations given to us, the Company has not accepted any deposits from public within the meaning of Sections 73 to 76 of the Companies Act 2013 and rules framed thereunder during the year.

vi. According the information and explanations given to us, the maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013 in respect of mining activities of the Company. We have broadly reviewed the same and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether these are accurate and complete.

vii. (a) According to the information and explanations given to us and on the basis of our examination of books

of accounts, the Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, EmployeesRs. State Insurance, Income Tax, Goods and Service Tax, Customs Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

According to the information and explanations given to us, there is no arrear of undisputed statutory dues as at March 31,2023 outstanding for a period of more than six months from the date of becoming payable except water cess aggregating of Rs.2,331.40 Lakh payable to Water Resources Department, Government of Jharkhand accrued from the financial year 1999-00 to 2022-23.

(b) According to the information and explanations given to us and as per the records of the Company, there are disputed statutory dues, which have not been deposited as on March 31,2023 as given herein below:-

Statement of Disputed Statutory Dues as on 31.03.2023 ( FY 2022-23)

Name of the Statue Nature of Dues Period to which the amount relates Forum where dispute is pending Gross Dispute Amount (Rs. in lakh) Amount Deposited under protest / Provisions made (Rs. in lakh) Balance Amount not paid (Rs. in lakh)
Central Excise Act Central Excise 2014-15 to 2016- 17(ICC) High Court of Jharkhand 560.60 - 560.60
Jharkhand Valued Added Tax Act. State Sales Tax/ VAT 2017-18 State Tax Authority 130.00 - 130.00
Madhya Pradesh Value Added Tax Act. Entry Tax 1994-95 (MCP) Commissioner (Appeals) Jabalpur 5.38 5.38 -
Madhya Pradesh Value Added Tax Act. State Sales Tax/ VAT 2009-2010 (MCP) Sales Tax Authority (Bhopal) 34.47 13.40 21.07
Madhya Pradesh Value Added Tax Act. State Sales Tax/ VAT 2011-12 (MCP) Sales Tax Authority (Bhopal) 16.66 8.03 8.63
Madhya Pradesh Value Added Tax Act. State Sales Tax/ VAT 2012-13 (MCP) Sales Tax Authority (Bhopal) 99.89 39.96 59.93
Central Excise Act Central Excise 2010-11 TO 2013-14(MCP) CESTAT 627.60 68.37 559.23
Rajasthan Value Added Tax Act. Central Excise 2007.08 TO 2014-15(KCC) HonRs.ble High Court, Jaipur 676.40 364.73 311.67
Central Excise Act Central Excise 2014-15 & 2018- 19(KCC) CESTAT Mumbai, New Delhi & Kolkata 3417.71 9.57 3408.14
Maharashtra Value Added Tax Act. State Sales Tax/ VAT 1994-95, 201112, 2012-13 & 2013-14 (TCP) Appellate Authority 18.81 2.00 16.81
Panvel Municipal Corporation Act Local Body Tax 01.01.2017 TO 30.06.2017 (TCP) Panvel Municipal Corporation 5789.42 - 5789.42
Panvel Municipal Corporation Act Property Tax 01.10.2016 TO 31.03.2023 (TCP) Panvel Municipal Corporation 68.71 - 68.71
Income Tax Act Income Tax 2004-05 & 200708 (HO) High Court of Kolkata 1200.0 - 1200.00
Income Tax Act Income Tax 2002-03,200304,2004-05, 2006-07, 200708, 2008-09, 2012-13, 201314,2017-18 & 2018-19 (HO) ITAT/ Commissioner of Income Tax (Appeal) 21884.40 - 21884.40
Water (Prevention and Control of Pollution) Cess Act, 1977 Water Cess 1999-20 TO 2020-21(ICC) Water Resources Department, Government of Jharkhand 2331.4 2331.4 -
GRAND TOTAL 36,861.45 2,842.84 34,018.61

viii. According to the information and explanation provided to us, we did not come across any instance oRs. any transactions not recorded being disclosed or surrendered before the tax authorities as income during the year

ix. According to the information and explanations given to us, the Company has not defaulted in repayment of dues to banks. Term loans were applied for the purpose for which the loans were obtained..The Company has not issued any debentures and also not borrowed any loans from financial institutions or government. We did not come across any data to suggest that funds raised for short term purposes were used for long term purpose. There were no loans raised during the year by pledging of securities held in its subsidiaries, joint ventures or associate companies.

x. According to the information and explanations given to us, the Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the year. There was a preferential allotment of shares during the year in compliance with section 42 and section 62 of the Companies Act 2013, for which the proceeds were utilized for the purpose for which the

funds were raised, The unutilized portion of the funds raised have been kept separately in the form of fixed deposits for utilization in the subsequent financial year.

xi. To the best of our knowledge and according to the information and explanations given to us and based on the audit procedure performed, we report that no cases of fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year. Consequently, the requirement to file a report under sub-section (12) of section 143 of the Companies Act 2013 did not arise. The register for whistle-blower complaints have been reviewed during the year.

xii. In our opinion, the Company is not a Nidhi Company and as such, provisions of paragraph 3(xii) of the said order are not applicable to the Company.

xiii. According to the information and explanations given to us and based on our examination of books of accounts, transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable and the details of such transactions have been disclosed in the Standalone Financial Statements as required by the applicable Indian Accounting Standards.

xiv. Based on information and explanations provided to us, and based on our audit procedures, it appears that the Company has an internal audit system commensurate with the size and nature of its business. We have been provided with and considered the Half yearly internal audit report for the period ending 30th September 2022. The report for the period ending 31st March 2023, was not made available to us.

xv. According to the information and explanations given to us and based on our examination of books of accounts, the Company has not entered into any non-cash transactions specified under Section 192 of the Act with its Directors or persons connected to them. Accordingly provisions of paragraph 3(xv) of the said order are not applicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and as such, reporting under this clause is not applicable to the Company.

xvii. According to the information and explanations given to us and based on our examination of books of accounts, the company has not incurred cash losses in the financial year and in the immediately preceding financial year.

xviii. There has been no resignation of statutory auditors during the year. Accordingly Clause 3(xviii) of the Order is not applicable.

xix. Basis the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our understanding of the Board of Director and Management plans, and according to the information and explanations given to us, we are of the opinion that no material uncertainty exists as on the date of the audit report that the company is capable of meeting its liabilities existing at the date of the Balance Sheet, as and when they fall due within a period of one year from the Balance Sheet date.

xx. According to the information and explanations given to us and based on our examination of books of accounts, the requirement to keep aside funds for CSR as per provisions of Section 135 of the Companies Act 2013, did not arise for the FY 2022-23.

For Ghoshal and Ghosal.
Chartered Accountants
(FirmRs.s Registration No.304013E)
CA Siddhartha Pal
Partner
Place: Kolkata (Membership No.059017)
Date: 19-05-2023 UDIN: 23059017BGXJVS1641

"Annexure B" to the Independent AuditorRs.s Report

{Referred to in Paragraph (2) (f) of "Report on Other Legal and Regulatory Requirements"section of our Independent

AuditorRs.s Report}

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Hindustan Copper Limited (hereinafter referred as "the Company") as of March 31, 2023 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

ManagementRs.s Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to respective CompanyRs.s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

AuditorRs.s Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorRs.s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting of the Company.

Meaning of Internal Financial Controls over Financial Reporting

A CompanyRs.s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A CompanyRs.s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the CompanyRs.s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, internal financial controls system over financial reporting and such internal financial controls over financial reporting were generally operating effectively as at March 31,2023, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by The Institute of Chartered Accountants of India. However further improvement is required in strengthening of the monitoring of the controls in respect of accounting for expenses and fixed assets, confirmation/reconciliation of balances for current and non-current assets, trade payables and other current liabilities. The internal control system for inventories of stores and spares with regard to receipt, issue for production and generation of report from ERP is required to be further strengthened.

There is scope to leverage the ERP to strengthen some of the existing controls, more specifically around Fixed Assets, and posting of Journal Vouchers.

However, our opinion is not qualified in respect of the above matters

For Ghoshal and Ghosal,
Chartered Accountants
(FirmRs.s Registration No.304013E)
CA Siddhartha Pal
Partner
Place: Kolkata (Membership No.059017)
Date: 19-05-2023 UDIN: 23059017BGXJVS1641

"Annexure C" to the Independent AuditorRs.s Report

{Referred to in Paragraph (3) of "Report on Other Legal and Regulatory Requirements"section of our Independent

AuditorRs.s Report}

Sl. No. Details/Directions AuditorRs.s Reply Action Taken and Impact on Accounts and Financial statements
1. Whether the Company has system in place to process all the accounting transactions through IT System? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with financial implications, if any may be stated. Yes, the Company has a system in place to process all the accounting transactions through IT System. There is no impact on the accounts and financial statements.
2. Whether there is any restructuring of any existing loan or cases of waiver/ write off of debts/loans/interest etc. made by a lender to the Company due to the CompanyRs.s inability to repay the loan? If yes, the financial impact may be stated. Based on the information available and as explained to us, there was no restructuring of any existing loan or cases of any waiver/write off of debts/loans/interest etc. made by any lender to the Company due to the CompanyRs.s inability to repay the loan during FY2022-23. There is no impact on the financial statements
3. Whether funds received/receivable for specific schemes from Central/State agencies were properly accounted for /utilized as per its term and conditions? List the cases of deviation. Based on the information available and as explained to us, no funds were received/receivable for specific schemes from Central/State agencies during FY 2022-23. There is no impact on the accounts and financial statements.

 

For Ghoshal and Ghosal
Chartered Accountants
(FirmRs.s Registration No.304013E)
CA Siddhartha Pal
Partner
Place: Kolkata (Membership No.059017)
Date: 19-05-2023 UDIN: 23059017BGXJVS1641