We have audited the accompanying Standalone Financial
Statements of Hindustan Copper 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 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 31,2025 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 “Auditor'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 Matters
We draw attention to the following matters:
a) We draw attention to Note No.42 (4) of the accompanying
Standalone Financial Statements wherein the deeds for
leasehold land acquired in respect of Gujarat Copper
Project (GCP) as at March 31,2025 is yet to be registered
in favor of the Company;
b) We draw attention to Note No-42(30) of the accompanying
Standalone Financial Statements regarding arbitration
order against the company in favor of a vendor and the
company filing an appeal in the Commercial Court Jabalpur
under Section 34 of the Arbitration and Conciliation
Act ,1996.
c) We draw attention Note No-42(29) of the accompanying
Standalone Financial Statements regarding a demand
of Terminal Tax by Malanjkhand Municipal Corporation
(MCP) pending in Courts including Hon'ble Supreme
Court refusing relief in quantum of deposit of the demand
before hearing of appeal.
d) We draw attention to Note No-42(31) of the accompanying
Standalone Financial Statements regarding a demand
by Water Resources Department , Jharkhand on the
basis of revised computation as per order of the single
bench of Honable High Court of Ranchi and the company
challenging the applicability of the Act in the divisional
bench of Honourable High Court of Ranchi.
e) We draw attention to Note No.42 (5) of the accompanying
Standalone Financial Statements wherein, balances
under the heads, 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, 2025, 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, 2025. 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.
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Sl
No.
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Key Audit Matters
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Auditor's Response
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1
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Adjustment of revenue and proper application 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
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Principal Audit Procedure
We have assessed the application of the provisions of Ind AS
115, in respect of the Company's revenue recognition and
appropriateness of the estimated adjustments in the process.
We have selected transactions on a sample basis and tested
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Referred in Note 2.5 of the Standalone Financial
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for identification of contracts, involving disagreements relating
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Statements
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to final ASSAY analysis in MIC , evaluation of the satisfaction of
the performance obligation, and checking for the adjustment to
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The revenue recognized by the Company in any
particular contract, is as per the contract terms. There are
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the revenue due to variation in the transaction price
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subsequent adjustments made to the initial transaction
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Audit Conclusion
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price for a) the difference in LME rate considered during
the initial transaction and the Quotational Period and for
final ASSAY analysis in MIC.
The variation in the contract price if not settled as per
contract ,is referred to umpire.
The final adjustment to revenue is then made on the
basis of the outcome of the findings of the umpire.
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No material exceptions identified
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2
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Ascertainment, disclosure and provisioning in
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Principal Audit Procedures
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respect of tax matters and contingent liabilities
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Our audit procedures relating to the ascertainment, disclosure
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Refer to the Note No.42(1) to the standalone financial
statements.
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and provisioning in respect of contingent liabilities included the
following:
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The Company has material uncertain tax matter under
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We obtained a detailed understanding and evaluated the
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dispute involving material aggregate demand which
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design and implementation of controls that the Company
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require significant judgement to determine the possible
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has established in relation to disclosure and provisioning of
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outcome of these disputes.
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contingent liabilities in accordance to Ind AS 37 Provisions,
Contingent Liability and Contingent Assets.
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Additionally, the Company has other on-going legal
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Regarding indirect tax contingent liabilities, we undertook
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matters relating to various claims by contractors/
suppliers which require application of Management
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following principal audit procedures:
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judgement in order to determine the likely outcome.
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• 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.
• Assessment of assumptions used in the evaluation of
potential tax risks performed by the tax department of the
Company considering the legal precedence.
• 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 standalone financial statements.
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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.
Audit Conclusion
No material exceptions identified
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3
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Assessment of indication of impairment and the
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Principal Audit Procedures
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recoverable amount of cash generating units (CGUs)
Refer Note 42(3) of the accompanying Standalone
Financial Statements.
There is an assessment done by the Company at the
end of each reporting period for any indication that an
asset may be impaired.
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 Plant and Machinery of Moubhandar Plant,
Sulphuric Acid Plant & Nickel Plant at the Indian Copper
Complex (ICC) situated in Ghatshila.
However, based on the report submitted by the
independent Valuer, the company has recognized the
Impairment Loss Rs. 1,034.03 Lakhs during the year
2024-25, as per provisions of Ind AS 36
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Our audit procedures related to assessment of indication of
impairment and recoverable amounts of these CGUs included
the followings:
a. 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;
a. Relying on the report of external agency appointed solely
for evaluating the assessment of impairment at plants
this year and calculating the recoverable amount and
impairment loss;
b. Using auditor's own judgments/ assessment for testing
appropriateness of the method and model used for
determining the recoverable amount, and mathematical
accuracy of the models' calculations and evaluating
reasonableness of key assumptions used in future cash
flow projections such as future use of those assets or
management plan;
c. Testing related presentation and disclosures in the
Standalone Financial Statements.
Audit Conclusion
No material exceptions identified
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4.
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Valuation of emDlovees defined benefit obliaations
and other Iona-term benefits
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
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.
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Our audit procedures relating to the valuation of employees
defined benefit obligations and other long-term benefits include
the following:
a. 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
b. 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
No material exceptions identified.
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Information Other than the Standalone Financial
Statements and Auditor's Report thereon
The Company'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 and sustainability Report, Corporate
Governance Report and other annexure to Directors Report
including Shareholder's Information, but does not include the
Standalone Financial Statements and our auditor's report
thereon. The Report of the Board of Directors, including
annexures and other related statements forming part of the
Company's annual report, is expected to be made available to
us after the date of 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 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, 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 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 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
Company’s financial reporting process.
Auditor'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 auditor'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 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 Company’s ability to continue
as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention
in our auditor'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 auditor'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 auditor'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.
Other Matters
a. The Standalone Financial Statements of the Company
for the year ended 31st March, 2024, were audited by
the previous statutory auditor of the Company who had
expressed an unmodified opinion on such Standalone
Financial Statements, vide their report dated 24th May,
2024.
b. The Company does not have Independent Directors as
required by the provisions of the Companies Act, 2013
so as to validly constitute its Audit Committee. As a
result, no valid Audit Committee meeting could be held
and the Standalone Financial Statements has been
approved by the Board of Directors of the Company.
Consequent to above, the Company has not complied
with the provisions of the Companies Act,2013 w.e.f
3rd November, 2024.
c. The Company does not have Woman Director w.e.f
22nd March, 2025 as required by the provisions of
Section 149 of the Companies Act, 2013 read with Rule
3 of the Companies (Appointment and Qualification
of Directors) Rules, 2014. Consequent to above, the
Company has not complied with the provisions of the
Companies Act,2013.
Our opinion on the Standalone Financial Statements is not
modified in respect of the above 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 “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 (e) 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 the
requirement of provisions of Section 197(16) of the
Act is not applicable to the Company.
h) With respect to the other matters to be included in
the Auditor'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. 42(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 material misstatement.
3) As required under Section 143(5) of the Act, we give in
the “Annexure C”, a statement on the directions and
sub-directions 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.
5) The management has represented that the company
uses accounting software (supported by ORACLE) for
maintaining its books of account which has a feature of
recording audit trail of each and every transaction, creating
an edit log of each change made in the books of account
along with the date when such changes were made and
ensuring that the audit trail cannot be disabled and the audit
trail been preserved by the company as per the statutory
requirements for record retention.
For P. A. & Associates
Chartered Accountants
(FRN.313085E)
Sd/-
(CA Prashant Sekhar Panda)
Partner
Membership No. 051092
UDIN: 25051092BNUJPR8573
Place : Kolkata
Date : 27-05-2025
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