To
the Members of
National Aluminium Company Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of National Aluminium Company Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2025, 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 and notes to the standalone financial statements including a summary of material 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 Indian Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015, as amended and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, and total comprehensive income (comprising of profit and 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 Auditors? 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 thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI?s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Emphasis of Matter
We draw attention to
i. Note no. 28.3 and 5.4.1 regarding non-recognition of revenue and impairment assessment of related assets respectively from/of two wind power plants located in the state of Rajasthan since 01.04.2019 in view of no fresh Power Purchase Agreement having been signed.
ii. Note no. 9.1 regarding recognition, measurement and disclosure of a financial guarantee extended to its one of the joint venture companies against issuance of Compulsory Convertible Debentures through a backstopping arrangement.
Our opinion on the Standalone Financial Statements is not modified in respect of the above matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Standalone Financial Statements of the current period. 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. The key audit matters that we have identified in the current year are as follows:
| Key Audit Matter | Response of Auditors in dealing with the matters |
| 1. Carrying value of Property, Plant and Equipment, Capital work-in-progress, Intangible assets and Intangible Assets under Development | |
| Property, plant and equipment, capital work-in-progress, intangible assets and Intangible assets under development represent significant balances recorded in the statement of financial position. | Our audit procedures included the following: |
| The evaluation of the recoverable amount of these assets requires significant judgement in determining the key assumptions supporting the expected future cash flows of the business and the utilisation of the relevant assets including impairment provisions related to the assets. | • We evaluated the assumptions made by Management in the determination of carrying values and useful lives to ensure that these are consistent with the principles of Indian Accounting Standards (Ind AS) 16 Property, Plant and Equipment and Ind AS 38 Intangible Assets. |
| • There are a number of areas where Management judgement impacts the carrying value of property, plant and equipment, intangible assets and their respective depreciation profiles. These include the decision to capitalise or expense costs; the asset life review including the impact of changes in the Company?s strategy; and the timeliness of capitalisation, determination or the measurement and recognition criteria for assets retired from active use. | • We assessed whether the carrying values and the useful lives were reasonable by challenging Management?s judgements through comparing the useful lives prescribed in Schedule II to the Companies Act, 2013 and the useful lives of certain assets as per the technical assessment of the Management. |
| • We compared the useful lives of each class of asset in the current year to the previous year to determine whether there were any significant changes in the useful lives of assets, and considered the reasonableness of changes based on our knowledge of the business and the industry. | |
| • We assessed whether indicators of impairment existed as at 31st March 2025 based on our knowledge of the business and the industry and wherever required the provision of impairment of assets/CWIP were reviewed. | |
| • We tested the controls in place over the property, plant and equipment and intangible assets, evaluated the appropriateness of capitalisation policies, performed tests of details on costs capitalised and assessed the timeliness of capitalisation including decapitalisation of assets retired from active use and the application of the asset life. | |
| • In performing these substantive procedures, we assessed the judgements made by Management including the nature of underlying costs capitalised; the appropriateness of asset lives applied in the calculation of depreciation and amortisation; and in assessing the need for accelerated depreciation/amortisation, if required, in the context of impairment. | |
| 2. Valuation of employees? defined benefit obligations and other long-term benefits | |
| The Company has recognised long-term employee benefit liabilities and defined benefit obligations (net of plan asset against funded gratuity obligation). | Our audit procedures relating to the valuation of employees, defined benefit obligations and other long-term benefits included the following: |
| 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, inflation expectations and life expectancy assumptions. The setting of these assumptions is complex and requires the exercise of significant Management judgement with the support of third-party actuary. | • In testing the valuation, we have examined the reports of external actuarial specialists to review the key actuarial assumptions used, both financial and demographic, and considered the methodology utilised to derive these assumptions. • We evaluated the assumptions made by Management and the actuary to ensure that these are consistent with the principles of Ind AS 19 Employee Benefits. |
| • Furthermore, we have examined the sensitivity analysis on the key assumptions in valuing the defined benefit obligations. | |
| 3. Advances and deposits in respect of tax matters under litigation continuing as assets | |
| The Financial Statements disclose other assets, which includes material recoverable claims of direct and indirect tax deposits (net of provision) including VAT and Cenvat credits which are pending adjustment/ adjudication. | Our audit procedures relating to the advance and deposits in respect of tax matters under litigation continuing as assets included the following: |
| Significant judgement is required in assessing the nature of these exposures and their accounting and disclosure requirements. | • We obtained from Management the details of completed tax assessments and demands and appeal orders of the appellate authority. |
| • We involved our internal experts to challenge the Management?s underlying assumptions in estimating the tax liability and the possible outcome of the disputes. | |
| • Our internal experts also considered legal precedence and other rulings in evaluating Management?s position on these uncertain tax positions. | |
| • Additionally, we have considered opinions of legal and tax experts, wherever available, to review the nature of the amounts recoverable, the sustainability and the likelihood of recoverability upon final resolution. | |
| 4. Valuation of deferred tax assets and liabilities | |
| The Company has disclosed deferred tax assets/liabilities in the Financial Statements. | Our audit procedures relating to the advance and deposits in respect of tax matters under litigation continuing as assets included the following: |
| The Company operates in activities which involves application of various provisions in income tax. | • Ascertained the completeness and accuracy of the deferred tax assets/liabilities and recognizing uncertain tax positions. |
| The assessment of the valuation of deferred tax assets/liabilities, resulting from temporary differences, and provisions for uncertain tax positions is significant to our audit as the calculations are complex and depend on sensitive and judgemental assumptions. These include, amongst others, longterm future profitability and local fiscal regulations and developments. | • We challenged and tested the Management?s assessment of the recoverability of the deferred tax assets, and the probability of future cash outflows in respect of deferred tax liabilities identified by the Company. |
| 5. Ascertainment, disclosure and provisioning in respect of contingent liabilities | |
| The Company has material uncertain tax matters, both direct and indirect, under dispute involving material aggregate demand which require significant judgement to determine the possible outcome of these disputes. | Our audit procedures relating to the ascertainment, disclosure and provisioning in respect of contingent liabilities included the following: |
| Additionally, the Company has other on-going legal matters relating to various claims by the Government of Odisha or other agencies constituted by the State Government and by contractors/suppliers which require application of Management judgement in order to determine the likely outcome. | We obtained a detailed understanding and evaluated the design and implementation of controls that the Company has established in relation to disclosure and provisioning of contingent liabilities in accordance to Ind AS 37 Provisions, Contingent Liability and Contingent Assets. |
| Regarding direct and indirect tax contingent liabilities, we undertook following principal audit procedures: | |
| • Assessment of the process and relevant controls implemented to identify tax litigations and pending administrative proceedings. | |
| • Reviewing orders and other communication from tax and other regulatory authorities and management responses thereto. | |
| • Discussion with the Management regarding the status of the most significant disputes and inspection of the key relevant documentation. | |
| • Analysis of opinion received from tax experts where available. | |
| • Review of the adequacy of the disclosures in the notes to the financial statements | |
| In assessing the potential exposures of the Company in respect of other contingent liabilities, we have: | |
| • assessed the design and implementation of controls in relation to the monitoring of known exposures; | |
| • referred Board and other meeting minutes to identify areas subject to Company?s consideration; | |
| • consulted with the Company?s internal legal advisors in understanding on-going and potential legal matters impacting the Company; | |
| • reviewed available legal opinions from experts; and | |
| • reviewed the proposed accounting and disclosure of actual and potential legal liabilities. |
Information Other than the Standalone Financial Statements and Auditors? Report thereon
The Company?s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Financial Performance highlights, Board?s Report including Annexure to Board?s Report, Management Discussions and Analysis, Business Responsibility and Sustainability Report, Report on Corporate Governance, Shareholders Information and other information in the Integrated Annual Report but does not include the standalone financial statements and our auditors? report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above 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 during the course of our audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of auditors? report, we conclude that there is a material misstatement of this information, we are required to report that fact. We have nothing to report in this regard.
When we read the other information, which we will obtain after the date of auditors? report and if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company?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, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) 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 of 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 Company?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 management 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 Company?s financial reporting process.
Auditors? Responsibility for the Audit of 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 auditors? 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 standalone 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 control 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 with reference to standalone Financial Statements 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 management?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 ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors? 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 auditors? 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.
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 auditors? 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.
Other Matters
The Standalone Financial Statements of the Company for the year ended 31st March 2024 were audited by the previous joint statutory auditors of the Company and they had expressed an unmodified opinion on Standalone Financial Statements vide their report dated 27 th May 2024.
Our opinion is not modified in respect of the these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor?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 the "Annexure A" a statement on the matters specified in the paragraphs 3 and 4 of the said Order, to the extent applicable.
2. We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the "Annexure B" on the directions issued by the Comptroller and Auditor General of India.
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 best of 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 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 Indian Accounting Standards specified under Section 133 of the Act.
e. We have been informed that the provisions of Section 164(2) of the Act in respect of disqualification of directors are not applicable to the Company, being a Government Company in terms of notification no. G.S.R.463 (E) dated 5th June 2015 issued by Ministry of Corporate Affairs, Government of India.
f. With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure C".
g. We are informed that the provisions of Section 197 read with Schedule V of the Act, relating to managerial remuneration are not applicable to the Company, being a Government Company, in terms of Ministry of Corporate Affairs Notification no. G.S.R. 463 (E) dated 5th June 2015.
h. With respect to the other matters to be included in the Auditors? 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 26 to the Standalone Financial Statements;
ii. The Company has made provision, as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, in respect of long-term contracts. As explained to us, there are no derivative contracts entered into by the Company;
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 its knowledge and belief, no funds (which are material either
individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("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, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("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 the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. As stated in Para 18.3 to the Standalone Financial Statements:
a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable; and
b) The interim dividend declared and paid by the Company during the year and until the date of this report is in compliance with Section 123 of the Act; and
vi. Based on our examination, which included test checks, the Company has used accounting software systems for maintaining its books of account for the financial year ended March 31, 2025 which have the feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software systems. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with and the audit trail has been preserved by the Company as per the statutory requirements for record retention.
However, The Payroll software used by the Company for maintaining Payroll records did not have an audit trail feature enabled. Consequently, there was no audit trail maintained for transactions recorded within this particular software for the whole year.
ANNEXURE "A" TO THE INDEPENDENT AUDITORS? REPORT
ANNEXURE REFERRED TO IN INDEPENDENT AUDITORS? REPORT TO THE MEMBERS OF NATIONAL ALUMINIUM COMPANY LIMITED ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2025
i. (a) (A) The Company is maintaining proper records showing full particulars including quantitative details and situation of Property, Plant and
Equipment including Right of Use Assets.
(B) The Company is maintaining proper records showing full particulars of intangible assets.
(b) There is a regular programme of physical verification of all Property, Plant and Equipments over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its Property, Plant and Equipment. In our opinion and as per the information given by the Management, the discrepancies observed were not material and have been appropriately accounted for in the books.
(c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title/ lease deeds of all the immovable properties (other than properties where the Company is the lessee, and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the Company.
The details of exceptions are given below:
(d) The Company has not revalued any of its property, plant and equipment (including right-of-use assets) and intangible assets during the year.
(e) No proceedings have been initiated during the year or are pending against the Company as at March 31, 2025 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
ii. (a) According to the information and explanations given to us, the inventory (excluding material in transit) has been physically verified by the management during the year and in our opinion, the coverage and procedures of such verification by Management is appropriate. As explained to us, no discrepancy of 10% or more in the aggregate for each class of inventory was noticed on physical verification of inventories as compared to the book records.
(b) According to the information and explanations given to us, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks and financial institutions on the basis of security of current assets. Also, the quarterly returns/statements filed by the Company with such banks and financial institutions are in agreement with the books of account of the Company.
iii. (a) In our opinion and according to the information and explanations given to us, the Company has extended financial guarantee during the year details of which are given below:
| Particulars (in f Crore) | Guarantees |
| Aggregate amount granted/provided during the year: | |
| -Joint Ventures | 200.00 |
| -Others | 0.00 |
| Balance outstanding as at balance sheet date in respect of above cases: | |
| -Joint Ventures | 200.00 |
| -Others | 0.00 |
(b) In our opinion and according to the information and explanations given to us, guarantees provided, and the terms and conditions of guarantees provided are not prejudicial to the Company?s interest.
(c) According to the information and explanations given to us, the Company has not provided loans or provided advances in the nature of loans or provided security, secured or unsecured to companies, firms, limited liability partnership or any other parties during the year. Consequently, clause (iii) (a), (b), (c), (d), (e) and (f) of paragraph 3 of the Order are not applicable.
iv. The Company has complied with the provisions of Section 185 of the Act in relation to Loans to directors, whether made directly or indirectly and Section 186 of the Act with respect to the loans and investments made.
v. According to information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of the directives issued by the Reserve Bank of India and provisions of Sections 73 to 76 of the Act and the Rules framed thereunder.
vi. We have broadly reviewed the books and records maintained by the Company as specified by the Central Government for the maintenance of cost records under Section 148(1) of the Act in respect of manufacturing activities and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records with a view to determine whether they are accurate and complete.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in our opinion,
the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees? State Insurance, Income Tax, Goods and Services Tax, Duty of Customs, Cess and other material statutory dues with the appropriate authorities. No undisputed statutory dues are outstanding for a period of more than six months from the date they became payable as at 31st March, 2025.
(b) According to the information and explanations given to us, the disputed statutory dues that have not been deposited for matters under dispute and pending disposal before various authorities are stated below:
| Sl. Nature of Statue No. | Nature of Dues | Period to which it relates | Forum where the dispute is pending | Gross disputed amount ( Crore) | Amount Paid under protest ( Crore) |
| 1 Income Tax Act 1961 | Income tax/TDS/Interest | 2009-10 to 2023-24 | Commissioner of Income Tax (Appeals) | 78.39 | 15.63 |
| Total | 78.39 | 15.63 | |||
| 2 Central Excise Act, 1944 | Excise Duty/Penalty | 1999-00 to 2014-15 | Tribunal | 7.72 | 0.22 |
| 2007-08 to 2015-16 | Appellate Authority | 0.00 | 0.00 | ||
| Total | 7.72 | 0.22 | |||
| 3 Finance Act, 1994 | Service Tax/Penalty | 2007-08 to 2016-17 | Tribunal | 4.95 | 0.12 |
| 2007-08 to 2018-19 | Appellate Authority | 3.30 | 0.03 | ||
| Total | 8.25 | 0.15 | |||
| 4 Custom Act, 1962 | Custom Duty/Penalty | 2000-01 to 2012-13 | Tribunal | 183.77 | 1.91 |
| Total | 183.77 | 1.91 | |||
| 5 The Orissa VAT Act, 2004 | VAT/ Penalty | 2005-06 to 2009-10 | Tribunal | 0.64 | 0.17 |
| 2016-17 to 2017-18 | Appellate Authority | 0.05 | 0.00 | ||
| Total | 0.69 | 0.17 | |||
| 2002-03 to 2002-03 | High Court | 1.46 | 0.37 | ||
| 6 The Orissa Sales Tax Act, 1947 | OST/Penalty | 2003-04 to 2004-05 | Tribunal | 0.86 | 0.54 |
| 1996-97 to 2002-03 | Appellate Authority | 1.46 | 1.80 | ||
| Total | 3.78 | 2.71 | |||
| 2000-01 to 2004-05 | High Court | 7.30 | 2.07 | ||
| 7 The Orissa Entry Tax Act, 1999 | ET/ Penalty | 2003-04 to 2009-10 | Tribunal | 39.86 | 20.02 |
| 1999-00 to 2014-15 | Appellate Authority | 27.42 | 11.54 | ||
| Total | 74.59 | 33.62 | |||
| 8 The Central Sales Tax Act, 1956 | CST/ Penalty | 1992-93 to 2008-09 | Tribunal | 260.60 | 65.34 |
| 1993-94 to 1994-95 | Appellate Authority | 16.46 | 15.02 | ||
| Total | 277.06 | 80.36 | |||
| 9 Motor Vehicles Act, 1988 | Road Tax | 2008-09 to 2020-21 | Orissa High Court | 2.65 | 0.00 |
| Total | 2.65 | 0.00 | |||
| 10 Indian Stamp (Odisha Amendment) Act, 2013 | Stamp Duty/Registration | 2018-19 to 2018-19 | Orissa High Court | 213.29 | 0.00 |
| Total | 213.29 | 0.00 | |||
| 11 Finance Act, 2010 | Clean Energy Cess | 2015-16 to 2018-19 | Orissa High Court | 230.50 | 0.00 |
| Total | 230.50 | 0.00 | |||
| 12 Industrial Policy Resolution 1996, Govt. of Odisha | Land Acquisition and interest thereon | 1982-83 to 2023-24 | Orissa High Court | 123.15 | 0.00 |
| Total | 123.15 | 0.00 | |||
| 13 MMDR Act, 1957 | Royalty | 2011-12 to 2015-16 | Orissa High Court | 136.32 | 0.00 |
| Total | 136.32 | 0.00 | |||
| 14 Water Resources Dept. Govt. of Odisha | Water Dispute | 2014-15 | Orissa High Court | 119.24 | 0.00 |
| Total | 119.24 | 0.00 | |||
| 15 GST Act, 2017 | GST | 2017-18 to 2020-21 | Tribunal | 37.56 | 1.89 |
| Total | 37.56 | 1.89 | |||
| Grand Total | 1,496.94 | 136.67 |
viii. According to the information and explanations given to us and on examining the books of accounts, no transactions were recorded in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
ix. (a) According to the information and explanations given to us, except for bills discounting arrangement with banks, the Company does not have any
loans or borrowings from any financial institutions, banks, Government or debentures holders. The Company has not defaulted in repayment of the loans obtained under the bill discounting facility.
(b) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
(c) The Company has not taken any term loan during the year and hence reporting under clause (ix)(c) of paragraph 3 of the Order is not applicable.
(d) On an overall examination of the Standalone Financial Statements of the Company, the Company has not raised funds on short term basis and hence reporting under clause (ix)(d) of paragraph 3 of the Order is not applicable.
(e) On an overall examination of the Standalone Financial Statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its joint ventures. The Company does not have any subsidiaries or associates.
(f) The Company has not raised any loans on the pledge of securities held in its joint ventures during the year and the company does not have any subsidiaries or associates, and hence reporting under clause (ix)(f) of paragraph 3 of the Order is not applicable.
x. (a) The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) during the year.
Accordingly, clause (x) (a) of paragraph 3 of the Order is not applicable.
(b) The Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Accordingly, clause (x) (b) of paragraph 3 of the Order is not applicable.
xi. (a) According to the information and explanations given to us, no fraud by the Company or any fraud on the Company has been noticed or reported
during the year.
(b) No report has been filed under Sub-section (12) of Section 143 of the Companies Act by the auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government during the year and up to the date of this report.
(c) We have taken into consideration the whistle blower complaints received by the company during the year while determining the nature, timing and extent of audit procedures.
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company under section 406 of the Companies Act, 2013. Accordingly, clauses (xii) (a), (b) and (c) of paragraph 3 of the Order are not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and the details have been disclosed in the Standalone Financial Statements (Refer Note 40 of the Standalone Financial Statements).
xiv. (a) In our opinion and based on our examination, the Company has an internal audit system commensurate with the size and nature of its business. (b) We have considered the internal audit reports of the Company issued till date, for the period under audit.
xv. According to the information and explanations given to us and based on our examination of the records, the Company has not entered into any noncash transactions with any director or persons connected with him as specified in Section 192 of the Act.
xvi. (a) In our opinion, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 and hence reporting
under clauses (xvi) (a) and (b) of paragraph 3 of the Order are not applicable.
(b) According to the information and explanations given to us, the Company is not a Core Investment Company (CIC) (as defined in the regulations made by Reserve Bank of India) and there is no CIC within the Group and hence reporting under clauses, (c) and (d) of paragraph 3 of the Order are not applicable.
xvii. 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 the statutory auditors during the year.
xix. Based on the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors? and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that the Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of this audit report and we neither give any guarantee nor any assurance that all the liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
xx. (a) According to the information and explanations given to us, there is no unspent amount towards Corporate Social Responsibility (CSR) in respect
of other than ongoing projects during the year requiring a transfer to a fund specified in Schedule VII to the Act in compliance with second proviso to Sub-section (5) of Section 135 of the Act. Accordingly, reporting under clause (xx)(a) of paragraph 3 of the Order is not applicable.
(b) According to the information and explanations given to us, there has been no unspent amount of CSR in respect of ongoing projects during the year requiring transfer to a special account as per Section 135 (6) of the Act.
ANNEXURE "B" TO THE INDEPENDENT AUDITORS? REPORT
ANNEXURE TO THE INDEPENDENT AUDITORS? REPORT ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2025 OF NATIONAL ALUMINIUM COMPANY LIMITED
Statement on the matters specified in the Directions of C&AG as referred in Paragraph 2 of Report on Other Legal and Regulatory Requirements paragraph of our report of even date to the members of NATIONAL ALUMINIUM COMPANY LIMITED on the Standalone Financial Statements for the year ended 31st March, 2025
| _S^ Directions No. | Action Taken | Impact on standalone financial statements |
| 1. Whether the company has system in the place to process all the accounting transactions through IT systemRs. If yes, the implications of processing of accounting transaction outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated. | As per the information and explanations given to us, the Company has a system in place to process all the accounting transactions through IT system. SAP-ERP has been implemented for all the processes like Financial Accounting (FI), Controlling (CO), Sales and Distribution (SD), Materials Management (MM), etc. Citrix system has been implemented for processing the payroll. Based on the information and explanations given to us and audit procedures carried out, no accounting transactions have been processed or carried outside the IT system. Therefore, there are no implications on the integrity of the accounts. | Nil |
| 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 Company?s inability to repay the loanRs. If yes, financial impact may be stated. Whether such cases are properly accounted forRs. (In case, lender is a Government Company, then this direction is also applicable for statutory auditor of the lender company). | Based on the information and explanations given to us and audit procedures carried out, there are no restructuring of any existing loan or cases of waiver/write off of debts/loans/interest made by a lender to the Company due to the Company?s inability to repay the loan. | Nil |
| 3. Whether funds (grants / subsidy etc.) received/receivable for specific schemes from central/state Government or its agencies were properly accounted for /utilized as per its term and conditionsRs. List the cases of deviation. | Based on the information and explanations given to us and audit procedures carried out, no funds (grants/ subsidy etc.) has been received/receivable by the Company from Central/State Government or its agencies for any schemes. | Nil |
ANNEXURE "C" TO THE INDEPENDENT AUDITORS? REPORT
ANNEXURE TO THE INDEPENDENT AUDITORS? REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2025 OF NATIONAL ALUMINIUM COMPANY LIMITED
(Referred in paragraph 3(g) under the head "Report on Other Legal and Regulatory Requirements" of our report of even date) Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls with reference to standalone financial statements of National Aluminium Company Limited ("the Company") as of March 31, 2025, in conjunction with our audit of the standalone financial 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 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 (ICAI). 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 company?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. Auditors? Responsibility
Our responsibility is to express an opinion on the Company?s internal financial controls over financial reporting 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") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 auditor?s judgment, including the assessment of the risks of material misstatement of 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 Company?s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls with reference to standalone financial statements
A company?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 the Standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A company?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 standalone 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 company?s assets that could have a material effect on the Standalone Financial Statements.
Inherent Limitations of Internal Financial Controls with reference to standalone financial statements
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, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2025, 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.
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