KYC is one time exercise with a SEBI registered intermediary while dealing in securities markets (Broker/ DP/ Mutual Fund etc.). | No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.   |   Prevent unauthorized transactions in your account – Update your mobile numbers / email ids with your stock brokers. Receive information of your transactions directly from exchange on your mobile / email at the EOD | Filing Complaint on SCORES - QUICK & EASY a) Register on SCORES b) Mandatory details for filing complaints on SCORE - Name, PAN, Email, Address and Mob. no. c) Benefits - speedy redressal & Effective communication   |   BSE Prices delayed by 5 minutes... << Prices as on Jul 12, 2024 >>  ABB India 8207.45 [ -2.92% ]  ACC 2685.8 [ 0.84% ]  Ambuja Cements 676.3 [ -0.42% ]  Asian Paints Ltd. 2999.5 [ -0.79% ]  Axis Bank Ltd. 1317.8 [ 1.62% ]  Bajaj Auto 9428.55 [ -0.46% ]  Bank of Baroda 250.75 [ -2.34% ]  Bharti Airtel 1433 [ -0.42% ]  Bharat Heavy Ele 325.8 [ -2.06% ]  Bharat Petroleum 304.55 [ -0.67% ]  Britannia Ind. 5793.45 [ 0.61% ]  Cipla 1511.95 [ 0.41% ]  Coal India 496.1 [ -0.82% ]  Colgate Palm. 3033.55 [ 0.87% ]  Dabur India 629.95 [ 0.14% ]  DLF Ltd. 821.45 [ -1.26% ]  Dr. Reddy's Labs 6721.65 [ 1.91% ]  GAIL (India) 228.65 [ -0.33% ]  Grasim Inds. 2843.1 [ 1.44% ]  HCL Technologies 1560.4 [ 3.20% ]  HDFC 2729.95 [ -0.62% ]  HDFC Bank 1624.35 [ 0.16% ]  Hero MotoCorp 5546.4 [ 0.44% ]  Hindustan Unilever L 2622.4 [ 0.47% ]  Hindalco Indus. 692.2 [ -0.55% ]  ICICI Bank 1232.95 [ -0.56% ]  IDFC L 117.7 [ 0.34% ]  Indian Hotels Co 594 [ -1.35% ]  IndusInd Bank 1434.95 [ 0.29% ]  Infosys L 1712 [ 3.57% ]  ITC Ltd. 459 [ 0.07% ]  Jindal St & Pwr 1013.1 [ -0.11% ]  Kotak Mahindra Bank 1833.25 [ -0.60% ]  L&T 3648 [ 0.73% ]  Lupin Ltd. 1797.1 [ -1.09% ]  Mahi. & Mahi 2704.15 [ 0.22% ]  Maruti Suzuki India 12557.4 [ -1.23% ]  MTNL 46.29 [ 9.43% ]  Nestle India 2609.35 [ 0.65% ]  NIIT Ltd. 118.3 [ 1.81% ]  NMDC Ltd. 246.2 [ 0.02% ]  NTPC 377.25 [ 0.00% ]  ONGC 306.95 [ 0.71% ]  Punj. NationlBak 117.75 [ -1.34% ]  Power Grid Corpo 343.15 [ 0.10% ]  Reliance Inds. 3193.45 [ 0.95% ]  SBI 859.65 [ 0.36% ]  Vedanta 449.45 [ 0.40% ]  Shipping Corpn. 346.55 [ 4.92% ]  Sun Pharma. 1578.25 [ -0.32% ]  Tata Chemicals 1065.7 [ 0.72% ]  Tata Consumer Produc 1151.8 [ 1.97% ]  Tata Motors 1016.6 [ -0.41% ]  Tata Steel 168.7 [ -0.18% ]  Tata Power Co. 434.05 [ -1.43% ]  Tata Consultancy 4184.9 [ 6.68% ]  Tech Mahindra 1505.35 [ 3.19% ]  UltraTech Cement 11600.95 [ 0.33% ]  United Spirits 1289.05 [ 0.35% ]  Wipro 560.05 [ 4.81% ]  Zee Entertainment En 155.55 [ 5.71% ]  

Company Information

Indian Indices

  • Loading....

Global Indices

  • Loading....

Forex

  • Loading....

NMDC LTD.

12 July 2024 | 12:00

Industry >> Mining/Minerals

Select Another Company

ISIN No INE584A01023 BSE Code / NSE Code 526371 / NMDC Book Value (Rs.) 87.60 Face Value 1.00
Bookclosure 27/02/2024 52Week High 286 EPS 19.02 P/E 12.95
Market Cap. 72169.10 Cr. 52Week Low 110 P/BV / Div Yield (%) 2.81 / 2.33 Market Lot 1.00
Security Type Other

AUDITOR'S REPORT

You can view full text of the latest Director's Report for the company.
Year End :2023-03 

NMDC Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of NMDC Limited (hereinafter referred to as "the Company"), which comprise the Standalone Balance Sheet as at March 31, 2023, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Cash flow statement for the year then ended, and notes to the Standalone financial statements, including a summary of 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 Ad") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under sedion 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, and its profit, other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under sedion 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 ICAI's 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.

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. We have determined the following matters to be the Key Audit matters to be communicated in our report.

SI.

No.

Key Audit Matter

How our audit addressed the key audit matter

1

Capital Work-in progress (BACHELI): Our audit procedures included the following:

The estimated project cost of Iron Ore We obtained a view of the management and Processing Plants at Kirandul and Bacheli, examined the process of capitalization. The Kirandul-Bacheli-Nagarnar Iron Ore management has given a reply that the account of Concentrate Slurry Pipeline and Pellet Plant At IEDC amounting to Rs. 182.57 crores as on Nagarnar, as per DPR of Mecon dtd. Feb- 31.03.2023 will be reviewed in accordance with 2014 is Rs. 4080.94 crores. However, the the Ind AS-16 during capitalization of the asset, revised cost estimate is not available.

The cumulative capital work in progress

Cl I

. Key Audit Matter No.:

How our audit addressed the key audit matter

(CWIP) as on 31.03.2023 is Rs.l 170.70 crores which includes incidental expenditure during construction (IEDC) amounting to Rs.l 82.57 crores. Further this IEDC includes certain item of revenue in nature as well as not directly attributable to the project. This is considered to be a key audit matter.

2

Trade Receivables from Monitoring Committee:

(Refer Note No.2.8.1 & 2.34.6 of the standalone financial statements)

As at 31st March 2023, current financial assets in respect of trade receivables includes receivables from monitoring committee as specified in aforesaid notes.

Trade receivables from Monitoring committee is a key audit matter due to the size of the receivable and involvement of management judgement in determining the impairment provision

Our audit procedures included the following:

We analyzed the ageing of trade receivables.

We obtained the list of long outstanding receivables from the monitoring committee and assessed the recoverability of these through inquiry with management and by obtaining sufficient corroborative evidence to support these conclusions.

Based on the above procedures performed, we did not identify any significant exceptions in the management's assessment and presentation of trade receivables and impairment provision thereof.

3

Mine Closure Obligation (MCO):

(Refer Note-1 (x) and Note no. 2.14.4 to the standalone financial statement)

The company creates Mine closure obligation (MCO) liability based on the present cost of closure of mining project of the latest mine. The rate of closure arrived at based on such cost is uniformly applied to other mines for arriving at the total MCO liability.

The matter is considered to be a key audit matter because there is an estimate involved as per management's policy.

Our audit procedures included the following:

We have reviewed the recommendations of the committee for mine closure obligations.

We have reviewed the methodology to arrive at the liability for mine closure obligation at a rate per MT on the cumulative RoM quantity for mine closure obligations.

We have verified the arithmetical accuracy of the mine closure obligation provision based on the recommendation of the committee.

Based on the above procedures performed, we did not identify any significant exceptions in the management's assessment in Mine closure obligation provision.

4

Investment in Legacy Iron Ore Ltd., Australia (LIOL)

(Refer Note No. 2.4.1 & 2.34.10 of the standalone financial statements)

The Company accounts for equity investments in subsidiaries, associates and joint ventures at

SI.

No.

Key Audit Matter

How our audit addressed the key audit matter

cost (subject to impairment assessment) and other investments at fair value.

The company has equity investments in LIOL as referred in above notes.

The accounting for investments in LIOL is a Key Audit Matter as the determination of recoverable value for impairment assessment/fair valuation involves significant management judgement.

Emphasis of Matter

We draw your attention to the following matters forming part of the financial statements without modifying our opinion in respect thereof:

I Note No: 2.34.7, regarding show cause notice having been served on Baildilla Project by the District collector, South Bastar, Dantewada pursuant to judgment of Honorable Supreme court of India with the demand of Rs.l 623.44 Crores against which company has paid an adhoc amount of Rs.600 Crores under protest and filed writ petition in the Hon'ble High court of Bilaspur, Chhattisgarh and a Revision application with Mines Tribunal, Ministry of mines, Government of India and disclosure of contingent liability as mentioned in the said note.

ii. Note No.2.8.1 & 2.15.3 of Notes forming part of accounts for the period ended 31st March 2023 which describes that the balances of Trade Receivables and Trade Payables respectively are subject to confirmation/ reconciliation and consequential adjustments, if any.

iii. Note No: 2.34.3, regarding the demerger of NMDC Iron & Steel Plant (NISP) which has been given effect from the Appointed date i.e 1st April, 2021 as per the Sanctions of the Ministry of Corporate Affairs vide its Order dated 6th October, 2022. Accordingly, the financial information in the financial statements in respect of the prior periods is

restated effective from the Appointed date.

iv. Note No:2.32.5 (iv), The Company has given an Advance of Rs 639.61 Crores to Karnataka Vijaynagar Steels Ltd (KVSL) towards cost of 2857.54 Acres of land handed over by KIADB to KVSL. In view of the timeline for commencement of production at the allotted site, KVSL and the Company are pursuing with KIADB / Govt of Karnataka for extension of the Lease period. Financial impact, if any, depend upon the final decision and mutual agreement between KIADB /

Govt of Karnataka and KVSL.

Our opinion is not modified in respect of these matters.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board's Report including Annexures to Board's Report, Business Responsibility Report, Corporate Governance Report, and Shareholder Information, but does not include the standalone financial statements and our auditor's 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 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, 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.

Management's Responsibility for the Standalone Financial Statements

The Company's Management and Board of Directors are 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 including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind-AS) prescribed 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

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 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 are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 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 financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(lf 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 Matter

We did not audit the financial statements and other financial information of 5 Branches/Units (Kirandul, Bacheli, Donimalai, Panna & RO Vizag) included in the accompanying standalone financial statements of the Company whose financial statements/financial information reflect total assets of Rs. 13589.01 Crores as at March 31,2023 and total revenues of Rs. 1 7797.29 Crores for the year ended on that date. The financial statements and other financial information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act, based on our audit 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.

c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.

d) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), Standalone Statement of changes in equity and the Standalone Statement of Cash Flow dealt with by this Report are in agreement with the books of account and with the returns received from the branches not visited by us.

e) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014.

f) 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.

g) 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 -A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company's internal financial controls with reference to standalone financial statements.

h) With respect to the other matters to be

included in the auditor's report in accordance with the requirements of Section 197(16) of the Act, as amended:

We are informed that the provisions of section 197 read with Schedule V of the Ad, 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.(E)

5th June 2015.

i) 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, as amended, in our opinion and to the best of our information and according to the explanations given to us:

a. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements - Refer Note 2.31 to the financial statements

b. The company has made provisions, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contrads.

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

d. i. The management has represented

that, to the best of its knowledge and belief, no funds 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 persons or entities, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the

Company or

• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

ii. The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:

• Directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or

• Provide any guarantee, security or the like form or on behalf of the Ultimate Beneficiaries; and

iii. Based on such audit procedures as 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 (d) (i) and (d)(ii) contain any material mis-statement.

e. The Dividend declared or paid during the year by the Company is in compliance with Section 123 of the Act.

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

3. We are enclosing our report in terms of section 143(5) of the Act, on the basis of such checks of books and records of the company as we consider appropriate and according to the information and explanations given to us, in "Annexure-C" on the directions issued by the Comptroller & Auditor General of India.

For Sagar & Associates

Chartered Accountants

Firm's Registration No: 00351 OS

CA. Ajay Kumar Mishra

Partner

Membership No.205468 UDIN: 23205468BGZHQZ4361

Place: Hyderabad

Date: 23.05.2023