We have audited the accompanying Standalone Financial
Statements of Hindustan Copper Limited (“the Company”),
which comprise the Balance Sheet as at March 31, 2026 , 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, 2026 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. 2.5(i) of the accompanying
Standalone Financial Statements, wherein revenue
is recognized on provisional basis for want of actual
parameters and differential sales value recorded only on
receipt of actual ASSAY report.
b) 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 31,2026 is yet to be executed in
favour of the Company;
c) We draw attention to Note No. 42(29) 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 including for a stay which has not yet been
granted.
d) We draw attention to Note No. 42(28) of the accompanying
Standalone Financial Statements regarding demands of
Terminal Tax by Municipal Council Malanjkhand (MCP)
pending in AMRCD as well as in Courts including Hon'ble
Supreme Court refusing relief in quantum of deposit of the
demand before hearing of appeal.
e) We draw attention to Note No. 42(30) 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 Hon'ble High Court
of Jharkhand and the company challenging the applicability
of the Act in the divisional bench of Hon'ble High Court of
Jharkhand.
f) We draw attention to Note No. 42(5) of the accompanying
Standalone Financial Statements wherein, trade and
other payables and advances are subject to confirmation /
reconciliation and consequential adjustment, if any.
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, 2026. 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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No.
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Key Audit Matters
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Auditor's Response
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1
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Ascertainment, disclosure and Drovisionina in
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Principal Audit Procedures
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resDect of tax matters and continaent liabilities
Refer to the Note No. 42(1) to the standalone
financial statements.
The Company has material uncertain tax matter
under dispute involving material aggregate demand
which require significant judgement to determine the
possible outcome of these disputes.
Additionally, the Company has other on-going legal
matters relating to various claims by contractors/
suppliers which require application of Management
judgement in order to determine the likely outcome.
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Our audit procedures relating to the ascertainment, disclosure and
provisioning in respect of contingent liabilities included the following:
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 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.
• 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.
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;
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• 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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2
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Assessment of indication of imoairment and the
recoverable amount of cash aeneratina units
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Principal Audit Procedures
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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(CGUs)
Refer to the Note No. 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.
The company has recognized the Impairment Loss
of Rs. 862.45 Lakhs during the year 2025-26, as per
provisions of Ind AS 36.
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3.
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Valuation of employees defined benefit
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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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obligations and other long-term benefits
The company has recognized long-term employee
benefit liabilities and defined benefit obligations
including a Post-Retirement Medical Benefit Plan
introduced during the year, (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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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 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.
b. 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.
We had previously issued our Independent Auditor's Report
dated 15th May 2026 on the Standalone Financial Statements
of the Company for the year ended 31 March 2026. Subsequent
to the issuance of that report, Comptroller & Auditor General
(C&AG) of India has observed in their provisional comments
certain reporting requirements under the Companies (Auditor's
Report) Order, 2020 were inadvertently omitted. Accordingly, this
revised Independent Auditor's Report is being issued solely to
incorporate the omitted reporting under CARO 2020.
Our opinion on the Financial Statements remains unchanged and
except for the inclusion of the omitted CARO reporting, all other
matters contained in our original report remains unchanged.
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)
(CA Haramohan Dash)
Partner
Membership No. 063523
UDIN: 26063523RXKXNN9176
Place : Bhubaneswar
Date : 02-07-2026
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