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Hindustan Copper Ltd. Annual Report 2020

Jul 21, 2020

61586_rns_2020-07-21_7775e126-4d4f-4251-a684-fc484b537da1.pdf

Annual Report

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~~JriIl'l~ Registered & Heed Office

'lffi! WffiR 'I'T i3'lJIi'l

A GOVT. OF INDIA ENTERPRISE

HINDUSTAN COPPER LIMITED

CIN No. : L27201WB1967GOI028825

<IIlI 'l'l'! TAMRA BHAVAN 1.~$rtl~

1, Ashutosh Chowdhury Avenue, lUo;ITo"ffo P.B. NO. 10224 ~ KOU<ATA.700 019

No. HCLISCY/SE/ 2016

Date: 21.7.2020

The Sr. General Manager Dept. of Corporate Services BSELimited Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 001 BSEScrip Code: 513599

The Vice President Listing Department National Stock Exchange of India Ltd Exchange Plaza, C'1, Block G Bandra-Kurla Complex, Bandra(East) Mumbai 400 051 NSESymbol: HINDCOPPER

Sir/Madam,

Pursuant to Regulation 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we send herewith the Statement of Financial Results of Hindustan Copper Ltd for quarter and year ended on 31st March, 2020 (Standalone and Consolidated) approved by the Board of Directors of the Company in its meeting held on 21.7.2020 from 2:00 PM to 7:15 PM. The Statutory Auditors' report thereon along with Declaration (For audit report with unmodified opinion) are also enclosed.

The above is submitted for information and record please.

Thanking you.

Yours faithfully,

lL+ (C S Singhi) ED (IA) & Co Secretary

Encl. As stated

q;R Tel: 2283-2226 (Hunting), l\;<m Fex : (033) 2283-247812640 ;1-1)0{ E-mail: [email protected], -ijlr Web: www.hlndustancopper.com

HINDUSTAN COPPER LIMITED

(A GOVT. OF INDIA ENTERPRISE) ReQd. Office; Tam •.• Bhaven 1, AshLrtosh Chowdhury Avenue, Kolkllla - 700 019. erN: 127Z01WB1967G01DZU25

Statement of Standalone Audited Financial Results for the quarter and year ended 31st March 2020

It in crore except EPS)

Quarter ended Year ended
SINo Partlculan> 31st Mar 2020
(Audited)
(Note 2)		 31s1 Dec 2019
(Unaudited)		 31st Mar 2019
(Audited)
(Nole
2)		 31st Mar 2020
(Audited)		 31st Mar 2019
(AudIted)
1 2 3 4 5 5 7
1 ~
I') Revenue from operations 146.84 93.29 454.77 831.85 1816.25
I') Other
Income		 19.63 13.19 20,32 56.96 36.56
Totallncorne 166.47 106.48 475.09 888.81 1852.91
2
1'1		 Expenses
Cost of materials consumed		 0.86 0,10 4.29 628 6493
I') Changes
in inventories
of finished		 goods & wor*-in-progress 173.50 (116.13) 65.88 (51
14)		 14337
1'1 Cost of stores,spares
& tools		 consumed 23.63 32.83 36.07 106 19 11706
Idl Employee benefits expense 46.76 6996 5621 25962 31651
I') Consumption of power & fuel 31.13 48.07 59.00 177 57 221,67
In Final"lC8 costs 16.64 14.42 17.10 60.42 55.46
191 Depreciation
and amortisation		 expense 71.40 78.84 73.02 288.61 252.89
Ih) Other Expenses 283.90 99.53 56.69 578.97 450.47
Total expenses &47.82 227.62 400.46 1426.62 1622.66
3 Profrtf(L.ossl from
operations		 before exceptkmalltems & tax (1-2) 481.36 121.14 74.63 637.71 230.36
4 Exceptional
items
5 Profit
1(L.ossl		 before
tax (3-4)		 481.35 121.14 14.63 531.71 230.35
6 Tax expense - Currenl 6.55 (24.32) 32.65 8.42 91,29
- Deferred 26.44 1.28 1.46 22.96 668
7 Profit/fLoss) for the period from continuing operations (after tax) (GoG) 514.34 95.54 40.52 569.09 145.74
8 Profit 1(L.oss) from discontinued operations before tax 0.09 0.09 0.09 0.35 0.35
9 Tax expense of discontinuing operations 0.03 0.03 0.09 0.12
10 Profit
I(Loss)		 forthe
period		 from discontinued operations (after tax) (8-9) 0.09 0.06 0.06 0.26 0.23
Prontl(Loss) for the period from continuing and discontinued operatlon5
11 (after taxi (7+10) f614.43 195.60 40.46 /569.35 145.51
12 Other
Comprehensive
Income		 (OCI)
, Items that will not be reclassified 10Profit I(Loss) (Net of tax) 18.46 1.00 13.90 22.46 10.90
, Ilems thai will be reclassified to Profit I(Loss) (Net of tax)
13 Total
Comprehensive
Income		 for the Period 111+12a+12b) 532.89 96.60 26.56 591.81 134.61
14 Paid-up equity share capital 462.61 462.61 462.61 462.61 462.61
(Face Value ~ 5/- Per Share)
15 Reserve
excluding
Revaluation		 Reserves as per balance sheet 49766 117<: 37
16i Earnings
per		 share (fOt continuing operations)
- Basic I" (5.559) (1033) 0.438 (6.151) 1.575
- Diluted I'l (5.559) (1.033) 0.438 (6,151l 1.515
16ii Eamings per share (lor discontinuing operations)
-Basic ") (0.001) (0.001) (0.001) (0.003) (0.002)
-muted I') (0.001) (0.001) (0.001) (0.003) (0,002)
16iii Earnings per share (for continuing and discontinuing operations)
- Basic I" (5.560) (1.034) 0.437 (6.154) 1.573
- Diluted I') (5.560) (1.034) 0.437 (6.154) 1.573

1) The above financial results have been reviewed by Audit Committee and then approved by the Board of Directors at its meeting held on July 21. 2020, The statutory auditors have conducted audit of the above financial results.

2) The figures of lasl quar1er am the balancing figures between audited flgurtls ill rtISPect of lhe full financial year afld the pubfished year to date ftgurtls upto the third quarter of Ihe

relevant financial year.

3) The Company, a vertically integrated copper producer. is primarily engaged in the business of mining and processing of copper ore to produce refrned copper melal, which has been grouped as a single segment in the above disclosures, The said lreatment is in accordance with the '100 AS 108 - Operating segments'.

4) The Company adopted Indian Accounting Standards rind AS') from Avril 1,2016 and accordingly above financial re5ults have been prepared in accordal"lC8 with lhe recognilion and measurement principles laid down in the Indian Accounting Standard (Ind AS) -34 'Interim Financial Reporting' prescribed under section 133 of the Companies Act, 2013 read w~h the relevant rules issued thereunder and Ihe other accounting principles 9enerany accepted in India

5) A Joint Venlure Company (JVC) named Chhattisgalt1 Copper Limited (CCL) was formed between Hindustan Copper Lim~ed (HCLl and Chhattisgarh Mineral Developmeo1 Corporation Limiled (CMDC) for exploralion. mining and beneficiation of copper and its associated minerals in the Slate of Chhaltisgalt1 on 21.05.2018, Since HCL holds 74% equity in JVC, ~ is also a Subsidiary of HCL as per Section 2(67) of the Companies Act, 2013.

6) A Joint Venture Company (JVC) named Khanij Bidesh India Lim~ed (KASIL) was formed on 01.08.2019 among National Aluminium Company (NALCO) ,Hindustan Copper limited (HeL) and Mineral Exploration Corporation limited (MECL) to ideo1ily. explortl, acquire, develop. process primarily strategic minerals overseas for suppty to India for meeting domestic requirements and for sale to any other countries lor commercial use. HCL holds 30% equity in JVC. HCL has invested 30.000 equity shares of ~ 10.00 each totaling to::' 0,03 crare in KABIL. Furtl1er the Company has a<lvanced ::' 0,72 crore towards allotment of 1,20.000 equity shares of ::' 10.00 each.

7) The spread of Covid 19 has affected the business operations of the company in an the units due to lock down dedared by Ihe Government. The company has taken various measures in consonance with the Government advisories to contain the pandemic • ...mich included closing of mining and operational activities across the company. However. Government has alowed to resume ils operation in all the units during April 2020 & May 2020. Given the uncertainly of quick turnaround to normalcy. post filting of the closure. the company has carried out a comprehensive assessmenl of possible impacl on its business operations, financial assels. contractual obligations and its overaD liquidity posltion. based on Ihe io1emal and external sources of information and application of reasonable estimates. Management will continue to monitor any material changes arising due to the impact of this pandemiC on financial and operational performance of Ihe company and take necessary measures to address 'he situa1ion, Further,lhe Company has incurred loss in this quarter mainly due to (al non-Iilling oj copper concenlrale by the awardee (buyer) owing to reasons attributable to international marllet afld (b) one-time write off 01 closing stock amounMg to ~ 257.10 crore arising out of reconciliation of metal content in copper concentrate on Inter-unit transfer and sales, assessment of metal loss in generation of Granulated Dump Slag, handl,ng losses a and old & oxidised concentrate considered as dead slock.Furtl1er. Lean ore and Mill Scat, not presently in use in manufacturing process. lor which a provision amounting to ::'183,32 crore has been made in the books of accounts. The Company has modified the Standard Operating Procedure on Inventory Management to strengthen the reconCiliation of inventory 8S an ongoing activity.

8) Figures for the previous pertod have been regrouped/rearranged

8) Figures for the previous pertod have been regrouped/rearranged wherever necessary In terms of our report of even date attached ForCHATURVEOI & CO. Chartered Ace ntants '~ ~PartnerK NANDA fM No. 610574) 1,,00< , .0"'" D.ilte : 21.07.2020

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For and on beha~d of Directors (SUKHEN KUMAR BANDYO:~ttl701.0 • DIRECTOR (FtNANCE) & CFO (DIN 08173882)

HINDUSTAN COPPER LIMITED

(A GOVT. OF INDIA ENTERPRISE)

Regd. Office: Tamra Bhavan 1, Ashutosh Chowdhury Avenue, Kolkata. 700 019. CIN: L27201WB1967GOI028825

Statement of Standalone Assets and Liabilities as at 31st March 2020

(~in crore)

(~in crore)
SINo Particulars As at
31st Mar		 2020 As at
31st Mar		 2019
2 3 4
ASSETS
(1) NON-CURRENT
ASSETS
(a) Property, Plant and Equipment 294.24 316.49
(b) Capital Work In Progress 1231.78 1022.11
(c) Financial Assets
(i) Investments 0.03 0.18
(ii) Others 0.26 0.12
(d) Deferred Tax Assets (net) 52.91 68.32
(e) Non- current
Tax Assets		 (net) 6.90 6.20
(f) Other Non-Current Assets 492.69 532.69
(2) CURRENT
ASSETS
(a) Inventories 519.83 643.67
(b) Financial Assets
(i)
Investments		 0.09 0.09
(Ii) Trade receivables 82.89 361.55
(iii) Cash and cash equivalents 11.35 6.58
(iv) Bank Balances other than above 4.53 4.24
(v)Others 26.86 32.80
(c) Current Tax Assets (Net) 18.45
(d) Other current assets 375.25 321.09
TOTAL ASSETS 3118.06 3316.13
EQUITY
AND
LIABILITIES
(1) EQUITY
(al Equity Share Capital 462.61 462.61
(b) Other Equity 497.66 1174.37
LIABILITIES
(1) NON-CURRENT
LIABILITIES
(al Financial
Liabilities
(i) Borrowings 636.18 570.66
(ii) Other financial liabilities 8.43 8.43
(b) Provisions 65.66 54.71
(2) CURRENT
LIABILITIES
(a) Financial
Liabilities
(i) Borrowings 927.50 499.45
(ii) Trade Payables 233.74 202.29
(iii)Others 85.82 76.00
(b) Other current liabilities 169.83 188.81
(c) Provisions 30.63 62.96
(d) Current tax liabilities 15.84
TOTAL
EQUITY
&		 LIABILITIES 3118.06 3316.13

In terms of our report of even date attached

For CHATURVEDI & CO.

Chartered A ountants 213 K NANDA Partner 1MNo. 510574 )

For and o;:hl~;:~f Directoffi ;p;jl

(SUKHEN KUMAR BANDYOPADHYAY) DIRECTOR (FINANCE) & CFO (DIN 08173882)

Place : Kolkata Date : 21.07 .2020 ~.

3

STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED 31st March 2020

(l' in crore)
For the year ended
For the year		 ended
31st March 2020
31st March		 2019
A. CASH FLOW
FROM
OPERATING		 ACTIVITIES
NET PROFlTf
(LOSS)
BEFORE
TAX		 AS
PER		 STAEMENT OF PROFIT AND LOSS (537.71) 230.35
Adjusted for.
Depreciation 35.89 36.61
Provisions
d'lafged		 18B.85 19.00
Provisions
wrillen
back.		 (22.81) (10.95)
Interest
expense		 60.42 55.46
Amortisation 252.72 216.27
Interest
income		 (10.22) (3.35)
Loss I (Profit)
on disposal		 of fixed assets 0.02 iO.48
OPERATING PROFITI
(lOSS)
8EFORE
WORKING		 CAPITAL CHANGES (32.84) 542.91
Adjusted for.
DecreaseJ
(Increase)		 in Trade & other Receivables 279.22 (280.04)
Decrease!
(Increase)		 in Invenfories (56,83) 144.13
Decrease!
(Increase)
Increase!
(Decrease)		 in
in		 Currenf
Curren!		 & Non-Currenl
& Non-Curren!		 assets
Liabilities		 ~;809)
21.19		 (70.09)
;28.37
CASH GENERATED
FROM
OPERATIONS		 130.27 308.54
Tax
Refund
received		 11.06
Taxes
paid		 (44.24) (67.31)
NET CASH FROM
OPERATING		 ACTIVITIES IA) 86.03 252.29
B. CASH FLOW
FROM
INVESTING		 ACTIVITIES:
Purchase
of Fixed
Assets		 (220.95) (400.40)
Sale
of Fixed
Assets		 0.12 0.80
Interest
received		 10.16 4.16
Advance
for I (Recovery		 of advance) for Capital expenditure - 2.61
Investment
in Joint
Venture
I Subsidiaf)'		 (0.03) (0.19)
Mine Development
Expenditure		 (219.14) (193.69)
NET CASH USED
IN INVESTING		 ACTIVITIES IB) 429.84 586.71
C. CASH FLOW
FROM
FINANCING		 ACTIVITIES
Non.Currenl
borrowings		 I (Loan repaid) 158.95 526.70
Dividends
paid		 (48.11) (23.13)
Tax on Dividend (9.89) (4.75)
Interest
paid		 (58.96) (54.23)
NET CASH USED
IN FINANCING		 ACTIVITIES IC) 41.99 444.59
NET INCREASE
IN CASH
AND
CASH		 EQUIVALENTS (A'" 8+ C) (301.82) 110.17
CASH AND CASH
EQUIVALENTS.		 opening balance (381.19) (491.36)
CASH AND CASH
EQUIVALENTS		 - closing balance (683.01J (381.19)
( details
in Annexure		 - A )
In terms of our repon
01 even
dale		 allached. Fo,ndonb'~O;' l~ ~
For Chaturvedi
& Co.		 Sukhen Kumar 8Bndyopadhyay
'
 Director
(DIN:		 (Finance)
& CFO
08173882)

Fo , ndonb'~O;' l~~;~:

For Chaturvedi & Co. ([~i;~'] ~:~ANDA . ., Panner (M No. 510574 i Place: Kolkala Dated: 21s1 July. 2020 [r]['][.]

1. CASH AND CASH
EQUIVALENTS.
opening
balance
I) Current
Financial Assets
- Cash & Cash Equivalents
(Note 13)
ii) Current
Financial
Assets.
Bank Balance
other thai above (Note 14)
(Excluding
Unpaid Dividend
of Rs. 0.16 crore)
iii) Current
Financial
Assets.
Investments
(Note 11)
iv) Non-current
Financial
Assets
- Others (Nole 6)
v) Current
Financial
Liabilities
- Borrowings
(Note 23)
CASH AND CASH
EQUIVALENTS.
closing
balance
i} Current
Financial
Assets
- Cash & Cash Equivalents
(Note 13)
ii) Current
Financial
Assets
- BanI< Balance other that above (Note 14)
(Excluding
Unpaid Dividend
of Rs.O.21 crore)
iii) Current
Financial
Assets
- Investments
(Note 11)
IV) Non-current
Financial
Assets
- Others (Note 6)
v) Current
Financial
Liabilities
- Borrowings
(Note 23)		 01
31		 104/2019
6.58
4.06
0.09
0.12
(392.06)
(381.19)
/03/2020
11.35
4.32
0.09
0.27
ANNEX
r
01		 URE.A
in crore)
104/2018
8.80
3.79
0.08
0.01
31 (504.04)
!491.361
103/2019
6.58
4.08
0.09
0.12
(699.04) (392.06)
(683.01) (381.19)
  1. The Cash Flow Statement has been prepared as set out in Indian Accounting Standard (INO AS) 7: STATEMENT OF CASH FLOWS, as amended by Companies (Indian Accounting Standards) (Amendment) Rules 2016.

This is the Cash Flow Statement referred to in our report of even dale attached.

,.

CHATURVEDI & co.

Chartered Accountants

Branches at: Kolkata, Mumbai, Chennai, New Delhi, lucknow 2-1, Park Centre, 24, Park Street, Kolkata-700016 Phone:-033-2229 2229/033-46012507 Email:[email protected] 

====================================================================

INDEPENDENT AUDITOR'S REPORT

TO THE BOARD OF DIRECTORS OF HINDUSTAN COPPER LIMITED

Report on the audit of the Standalone Financial Results

Opinion

We have audited the accompanying quarterly Standalone Financial Results of Hindustan Copper Limited (the "Company"), for the quarter ended 31" March 2020 and the year to date Results for the period from 1" April 2019 to 31" March 2020 attached herewith, being submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, these Standalone Financial Results:

  • (i) are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and

  • (ii) give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards and other accounting principles generally accepted in India, of the total comprehensive loss (comprising of net loss and other comprehensive loss) and other Financial information for the quarter ended 31st March 2020 as well as the year to date Results for the period from 1st April 2019 to 31st March 2020.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Results 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 together with the ethical requirements that are relevant to our audit of the Financial Results under the provisions of the Companies Act, 2013 and the Rules 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 opinion.

Emphasis of Matters We draw attention to the following matters:

  • a) Title deeds for freehold and leasehold land and building acquired in respect of Gujarat Copper Project (GCP) with book value of RS.5578.11 lakh (PY:-Rs.5859.97 lakh) are yet to be executed in favor of the Company. Title deeds for leasehold and freehold lands or other evidences of title are pending to be reconciled with the financial records.

  • b) Balances under the head Claims Recoverable, loans & Advances, Deposits with various parties and certain balances of receivables, payables and other current liabilities have not been confirmed as at 31" March, 2020.Consequential impact upon receipt of such confirmation/reconciliation/adjustments of such balances, if any is not ascertainable at this stage;

  • c) Gujarat Copper Project valuing RS.25970.08 lakh (PY:-Rs.27214.50 lakh) where the Company has not been able to operate profitably due to various constraint, viability assessment needs to be done to evaluate and adjust for possible impairment loss, if any.

  • d) Note NO.7 of the Standalone Financial Results which describe the uncertainties and the management assessment of possible impact of COVID-19 pandemic on its business operations, financial assets, contractual obligations and its overall liquidity position as at March 31, 2020. Management will continue to monitor in future any material changes arising .on financial and operational performance of the company due to the impact of this pand' ecessary measure to address the situation. ~')"{:. 'I <f

~ U PARKS 2~'O l:"ET • ." ~A\'700016 KOLKA A. . f ." ~<b~"'"

Page 1 of 3

  • e) Closing stock as on 31st March, 2020 as referred in Note no.7 of the Standalone Financial Results has been reduced aggregately by Rs. 25710.39 Lakh due to one-time adjustment through write-off in value of closing stock arising as a result of, reconciliation of metal content in copper concentrate on inter-unit transfer and sales, assessment of metal loss in generation of Granulated Dump Slag, handling losses and old & oxidized concentrate. Further, low grade Lean Ore and Mill Scat, not presently in use in manufacturing process, for which a provision amounting to Rs. 18331.80 Lakh has been made in the books of accounts by the management as at 31st March 2020. Further as mentioned in the referred note, the Company has modified its Standard Operating Procedure on Inventory Management to strengthen the reconciliation of inventory as an ongoing activity and identification and segregation of unused stock for better control;

Our opinion is not modified in respect of these matters.

Management's Responsibilities for the Standalone Financial Results These quarterly Standalone Financial Results as well as the year to date Standalone Financial Results have been prepared on the basis of the Standalone Financial statements. The Company's Board of Directors are responsible for the preparation of these Financial Results that give a true and fair view of the net loss and other comprehensive loss and other Financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. 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 judgements 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 Results that give a true and fair view and are free from material misstatement, whether due to fraud or error.

in preparing the Standalone Financial Results, the Board of Directors are 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 Results Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results 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 Results.

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

  • Identify and assess the risks of material misstatement of the Standalone Financial Results, 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, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

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

Page 2 of 3

7

conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Financial Results 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 Results, including the disclosures, and whether the Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Results 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 Results.

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.

Other Matter

Due to the outbreak of COVID-19 pandemic that caused nationwide lockdown and other travel restrictions imposed by the Central and State Governments/local administration during the period of our audit, we could not travel to the Plants/Projects/Regional Sales offices and carry out the audit processes physically at the respective Plants/Projects/Regional Sales offices. Necessary records/ reports/ documents/ certificates of the respective Plants /Projects / Regional Sales offices were made available to us by the management through e- mail and to the extent generated from the ORACLE system at Head office, Kolkata and on which were relied upon as audit evidence for conducting the audit and reporting for the current period.

Our opinion on the Standalone Financial Results is not modified in respect of the above matter.

For Chaturvedi & Co. Chartered Accountants

~~~~tion No.302137E)

U(~~~a'

Partner (Membership NO.510574) Place: Kolkata Date: 21" July, 2020

Page 3 of 3

ANNEXURE-VI

HINDUSTAN COPPER LIMITED

(A GOVT. OF INDIA ENTERPRISE) Regd.Otrlc:o : TatnnI Bhavafl1, Ashutosh Chowdhury Avenue,l(olk.a13 - 700 019. ClN : L21Z01WB1!Hi7GOI02$82$

Statement of Consolidated Audited Financial Results for the quarter and year ended 31st March 2020

('I' In c:rore ncept EPS)
Quarter Ended Year
Ended
51 No Particulars 31&t
Mar
(Audited)
(Note		 2020
21		 31st Dec 2019
(Unaudltod)		 31st Mar 2019
(Audited)
(Note 2)		 31st
Mar
2020
(Audited)
31st
Mar
(Audited)		 2019
,,,'~,
Income
~
from
operations
Other
Income
Total
income		 146.84
19.63
1&6.47		 93.29
13.19
106.48		 454.n
20,32
475.09		 831.85
56.96
888.81		 181625
36.66
1852.91
2,,'
(b'
'0',~
,.,
'"
<0',h',
E~penses
Cost
of malerials
consumed
Ch.anges
in inventories
of finished
goods
& work_in-progress
Cosl
of stores.
spares
& 100ls consumed
Employee
beneflls
expense
COnsumpllon
of power
& fuel
Finance
costs
Depredation
and
amortisation
e~pense
other
EJcpenses
Total
e~penses
Profit!ILoss)
from
operations
before
exceptional
items
&		 tax (1.2) 0.86
173.50
23.63
46,76
31.13
16.64
71.40
283.74
6.t7.66
481.19		 0.10
(1 \6.13)
32.83
69.96
48.07
14.42
76.85
99,53
227.63
121.15		 4.29
65.88
36.07
56.21
59.00
17.10
73,03
88.97
400.55
74.54		 6"
(51.14)
106.19
259.62
177.57
60.42
266.62
576.62
142&.38
537.57		 6493
\4337
117.06
316.51
221.67
55.46
252.90
450.71
1622.81
230.10
•5, Exceptional
items
Profit
I{Loss)
before
tall(3--4}
Ta"
expense
- Currenl		 481.19
6.55		 121.15
(~4.32)		 74.54
32.65		 537.57
6.42		 230.10
91.29
- Deferred
Profit!
Loss
for
the
eriod
from
contlnuln		 0 rations after taK 5-6 26.44
5U.ll1		 c1.28
95.55		 1,46.•.•, 22.96
566.95		 ~68
1'5.'9
Attributable
to Owners
of the
Company
Non
Controllino
Interest		 (5U.111) (95.(5) ~:~ (5&8.95) 14~.56
fO.07
8 Proflt/(Loss)
from
dtscontinued
operations
before
lax		 0.09 0.09 0,09 0.35 0.35
9 Tax
emense
of discont;nuino
ooeraticlI1s		 0.03 0.03 0.09 0.12
10 Prorrt
Ilos5
for
the
nod
from
discontinued		 0 erations after tax 6-9 0,09 0.06 0.06 0.26 0.23
Pa~~~~:\sl;)+~~:
the
period
from
continuing		 and discontinued operation5
11 '5U.27 '95.B1 40.37 569.21 1"5.2&
" Sh.are
of Prolit/loss
of
Joint
venl\lrel
A55oc:iate		 0.28 0.26
::V~A~~::~~;~;l~;~
lhe
period
aner
tax		 & Share of profitf(loss) of 51'.55 195.B1 oW.37 (569."9 1"5.26
Attributable
to Owners
ot the
Company		 {5U.55) (95.61) 40.39 (569.49) 1"5.33
Non
COnlrollino
Interest		 10.02 10.07
14, Other
Comprehensive
Inc:ome(OCI)
Items
lhat
will
rIOt be reclassifLed
10 Profrt
I(Loss)		 (Net of tax) 18.46 1.00 13.90
b Items
lhat
will
be reclassified
to Profit
{(Loss)		 (Net of tax)
" Total
Com
rehensive
Income
lor
the
Period		 11+12a+12b 533.01 96.61 26.47 (591.95 13'.36
Attributable
to Owners
of the
Company		 1533.011 (96.61) 26.49 (591.95) 134.43
Non
Contro11inQ
Interest		 10.02 fO.07
" Paid-up
equity
share
capital		 462.61 -462.61 462.61 462.51 462.61
(Face
Value
~ 51- Per
Share)
17 Reserve
excluding
Revaluation
Reserves
as		 per balance sheet 497.34 1174.18
l6i Eamings
per
share
(for
continuir.g
operations)
- Basic
~)		 (5.560) (1.033) 0,437 (6,152) 1.573
_Diluted
(t')		 (5.560) (1.033) 0,437 (5152) 1.573
lSii Eamings
per
share
(for
discontinuing
operations)
- Basic
~)		 (0,00t) (0.001) (0.001) (0.003) (0,002)
- Dilutad
~}		 (0.001) (0.001) (0.001) (0.003) (0,002)
18iii Eamings
per
share
(lor
continuing
and
discontinuing		 operations)
- Basic
(f)		 (5.561) (1.034) 0.436 (6,155) 1.571
• Diluted
('1')		 (5.561) (1.034) 0.436 (6,155) 1.571
1) The above
consolidated
financial
resUlts
have
been		 reviewed by the Audit COmlT'illee and then approved
by		 the Board of DirectOf'S
at		 its meeting held
on July		 21, 2020. The
statutory
auditors
have
conducted
audit
of the
above		 financial resUlts
2) The figures
of last quarter
are the
balancing
figures		 between audited figures In respect of the futl financial
year		 end lhe published year
to		 dale figures uplo
the		 third quarler of lhe
relevant
financial
year.
3) The Group.
a vertically
integrated
copper
producer.		 Is primarily engaged In Ille business of mining and processing 01 copper ore
10 produce		 refined COPpel" melal. which has
been grouped
as a
single
segment
in the
above		 disclosures. The said treatmenl is in accordance wilh
\he .tnd		 AS 108 - Operating
Segments'
4) The Group
adopted
Indian
Accounting
Standards		 nnd AS')
from		 April 1 ,2016 and accordingly above
financial		 results have
been		 prepared on
accordance		 with the
recognition
and
measurement
principles
laid
dawn		 in the Indian Acc:ounting Standard (Ind AS) -34 'Interim
financial		 Reporting' prescribed under sechon
133		 of the Compan,ss
Act. 2013
read
with
the relevanl
rules
Issued
lhereunder		 and Ille
other		 accounting principles generally accepted in India
5) A
Joint
Venture
Company
(JVC)
named
Khanij		 8iOesh India Limited (KABIL) was formed on 01.08,2019 among Nalional Aluminium Company (NALCO) ,Hindu-stan Copper
Limited
(HCL)
and
Mineral
Exploration
Corporation		 Limited (MECl) to identify. explore, acquire, develop. process primarily
strategic		 minerals overseas lor supply to Irldia
(or
meeting
domestic
requirements
and
for
sale		 to any other countries for commercial use. HCL
holds		 30% equity in .NC,
HCl		 has invested
30,000		 equily shares of
~ 10.00
each
totaling
to ~ 0,03
cmre
in
KABIL.
further		 the Group has advanced ~ 0.72 crore towards
allotment		 of 7,20,000 equity sh.ares 01 tlO_00
each
6) The spread
of COvid
19 has
affected
the business		 operations of lhe GrtlUp In all \he units due to lock down
dedared		 by lhe Govemmenl The Group has
taken		 various measures
in
consonance
wilh
the Governmenl
advisories
to conlain		 Ille pandemic:. which included closing of mining
al'ld operational		 aclivities across tile Group. However. Government has
allowed
to resume
Its operation
in all the
units
during
April		 2020 & May 2020. Given Ihe uncenaln1y 01 quick tumarnund 10 normalcy, post
lifting		 01 the closure,
the
Group		 has carried
out
a
comprehensive
assessment
01 possible
impact
on		 its business operations, fll1anciat assets, contractual ob~gallons and its overall tiquidity position. based
on
the		 internal and external
sources
of information
and
applieal<on
of
reasonable		 estimates. Managemenl will c:ontinue to monilor any
material		 changes arising
due		 to the impact of this
pandemic		 on finarc:ial
and
operational
performance
of
the Group
and
lake		 necessary measures to address tile siluatian. Further.
the		 Group has inwrrecl
loss		 in thls quarter
mainly		 due to (a) non-~fting
of
copper
concentrate
by the awardee
(buyer)
of the		 Holding Company owing to reasons attributable 10 intematiorl8.1 market and (b) one-time write oft of closing
stack		 amounUng to ~257.10
cmre olthe
HoldJng
Company
arising
out
of reconciUaUon		 of melal conlent in copper concentrate on
inter-unit		 nnsfer and
sales,		 assessment of
metal		 loss in generaljon
01
Granulated
Dump
Slag,
hand~ng
losses
and
old		 & o"idised concentrate considered as dead stock .further.
Lean		 ore and M~I Scat,
nol		 presenlly in use
in
manufacturing		 process.
(or whOch a provision
amounting
to ~ 183.32
crore		 has been made
in		 the books of acc:ounts. The Company
has		 modmed lhe Standard
Operating		 Procedure
on		 Inventory Management
10 strengthen
the reconciliation
af
inventory
as an		 ongoing activity
7) figures
lor the previous
period
have
been
regroupedlrealTilnged		 wherever necessary.
In lerms
01 our
reporl
01 even
dale
attached		 For and on behaDdllUard 01 Directors
ForCHATURVEDI
&00.		 (SUKHEN
KU~YD~Jll~OlO,
C~ered A~~n~ntants DIRECTOR (ftNANCE)
& CFO
'RflnD2137:l_ (DIN 08173882)
~~
artner
1M No. 510514)
Place: Kolkata
Date : 21.07.2020

==> picture [10 x 19] intentionally omitted <==

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(
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HINDUSTAN COPPER LIMITED

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----- Start of picture text -----

(A GOVT. OF INDIA ENTERPRISE)
Regd. Office: Tamra Bhavan 1, Ashutosh Chowdhury Avenue, Kolkata. 700 019.
CIN: L27201WB1967GOI028825
Statement of Consolidated Assets and liabilities as at 31st March 2020
(f in crorel
As at As at
SINo Particulars
31st Mar 2020 31st Mar 2019
2 3 4
(1) NON-CURRENT ASSETS
(a) Property, Plant and Equipment 294.28 316.54
(b) Capital Work In Progress 1231.78 1022.11
(el Financial Assets
{il Investments 0.03
(ii) Others 0.26 0.12
(d) Deferred Tax Assets (nel) 52.91 68.32
(e) Non- currenl Tax Assets (net) 6.90 6.20
(t) Other Non-Current Assets 492.69 532.69
(2) CURRENT ASSETS
(a) Inventories 519.83 643.67
(b) Financial Assets
(i) Investments 0.09 0.09
(ii) Trade receivables 82.89 361.55
(iii) Cash and cash equivalents 11.35 6.64
(IV) Bank Balances other than above 4.53 4.24
(v) Others 26.86 32.80
(c) Current Tax Assets (Net) 18,45
(d) Other current assets 374.91 321.03
TOTAL ASSETS 3117.76 3316.00
EQUITY AND LIABILITIES
(1) EQUITY
(a) Equity Share Capital 462.61 462.61
(b) Other Equity 497.34 1174.18
ATTRIBUTABLE TO NON CONTROLLING INTEREST
(e) Equity Share Capital 0.07 0.07
(0) Other Equity (0.07) (0.07)
liABILITIES
(1) NON-CURRENT LIABILITIES
(a) Financial liabilities
(i) Borrowings 636.17 570.66
(ii) Other financialliabitities 8.44 8.44
(b) Provisions 65.66 54.72
(2) CURRENT LIABILITIES
(a) Financial Liabilities
(i) Borrowings 92750 499.45
(ii) Trade Payables 233.74 202.29
{iii)Others 85.82 76.00
(b) Olher current liabilities 169.85 188.84
(c) Provisions 30.63 62.97
(d) Current tax liabilities 15.84
TOTAL EQUITY & LIABILITIES 3117.76 3316.00
In terms of our report of even date attached For and on jf~\fJth~ir~ ~l~ectors
(SUKHEN KUMA~OpiD~YAY)
DIRECTOR (FINANCE) & CFO
(DIN 08173882)
Place : Kolkata
Date : 21.07.2020
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10

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st March 2020

(~ in crore)
For the year ended
For the year		 ended
31st March 2020
31st		 March 2019
A. CASH FLOW
FROM OPERATING		 ACTIVITIES:
NET PROFITI (LOSS)
BEFORE
TAX		 AS PER STAEMENT OF PROFIT AND LOSS (537.57) 230.10
Adjusted for:
Depreciation 35.90 36.62
Provisions
charged		 188.67 19,01
Provisions
written
back		 (22.81) (10.95)
Interest
expense		 60.42 55.46
Amortisation 252.72 216.27
Interest
income		 (10.22) (3.35)
Loss I (Profit)
on dIsposal
of fixed		 assets 0.02 (0.48)
Share of Profit!
(Loss)
in Joint		 Venture (0.28
OPERATING PROFITI
(LOSS)
BEFORE
WORKING		 CAPITAL CHANGES (33.15) 542.68
Adjusted for:
Decreasel
(Increase)		 in Trade & other Receivables 279.22 (280.04)
Decreasel
(Increase)		 in Inventories (56.83) 144.13
Decreasel
(Increase)		 in Current & Non-Current assets (37.81) (70.09)
Increase!
(Decrease)		 in Current & Non-Current Liabilitie::l (21.22) 28.33
CASH GENERATED
FROM OPERATIONS		 130.21 308.35
Tax Refund received 11.07
Taxes
paid		 (44.24) (67.31)
NET CASH FROM OPERATING ACTIVITIES (AI 85.97 252.11
B. CASH FLOW
FROM
INVESTING		 ACTIVITIES:
Purchase
of Fixed Assets		 (220.95) (400.41)
Sale of Fixed Assets 0.12 0.80
Interest
received		 10.16 4.16
Advance
for I (Recovery		 of advance) for Capital expenditure 2.61
Investment1n
Joint Venture		 (0.03)
Mine Development
Expenditure		 (219.14) (193.69)
NET CASH USED IN INVESTING ACTIVITIES (6) 429.84 586.53
C. CASH FLOW
FROM FINANCING		 ACTIVITIES
Non-Current
borrowings		 I (Loan repaid) 158.95 526.70
Dividends
paid		 (48.11) (23.13)
Tax on Dividend (9.89) (4.76)
Interest
paid		 (58.96) (54.23)
Increase
In Other Equity		 0.07
NET CASH USED
IN FINANCING		 ACTIVITIES (CI 41.99 444.65
NET INCREASE
IN CASH
AND CASH		 EQUIVALENTS (A+B+C) (301.88) 110.23
CASH AND CASH
EQUIVALENTS.		 opening balance (381.13) (491.36)
CASH AND CASH
EQUIVALENTS		 - closing balance (683.01) (381.13)
( delails
in Annexure		 - A)
In terms of our report of even date attached. Forandonb~ ;'ir~~:~~cto~
Sukhen Kumar Bandyopadhyay
Director (Finance)
& CFO
(DIN. 08173882)

Place: Kolkata Dated: 21s1 July, 2020

/I

1. CASH AND CASH EQUIVALENTS
- opening balance
i) Current Financial Assets - Cash & Cash Equivalents (Note 13)
il) Current Financial Assets - Bank Balance other that above (Note 14)
(Excludin9
Unpaid
Dividend
of Rs. 0.16 crore)
iii} Current Financial Assets -Investments
(Note 11)
iv) Non-current Financial Assets - Others (Note 6)
v) Current Financial Liabilities - Borrowings
(Note 23)
CASH AND CASH EQUIVALENTS
- closing balance
i) Current Financial Assets ~Cash & Cash Equivalents (Note 13)
ii) Current Financial Assets - Bank Balance other that above (Note 14)
(Excluding Unpaid Dividend of Rs.0.21 erore)
iii) Current Financial Assets - Investments (Note 11)
iv) Non-current Financial Assets - Others (Note 6)
v) Current Financial Liabilities - Borrowings
(Note 23)		 01/04/2019
6.64
4.08
0.09
012		 01/04/2019
6.64
4.08
0.09
012
ANNEXURE-A
(~in
erore)
01/04/2018
8.80
3.79
0.08
001
. .
(392.06)
(381.13)
31/03/2020
11.35
4.32
O.Og
0.27		 (504.04)
(491.36)
31/03/2019
6.64
4.08
O.Og
0.12		 (504.04)
(491.36)
(699.04) (392.06)
(683.01 ) (381.13)
  1. The Cash Flow Statement has been prepared as set out in Indian Accounting Standard (IND AS) 7 : STATEMENT OF CASH FLOWS, as amended by Companies (Indian Accounting Standards) (Amendment) Rules 2016.

This is the Cash Flow Statement referred to in our report of even date attached.

CHATURVEDI & co.

I~

Chartered Accountants

Branches at: Kolkata, Mumbai, Chennai, New Delhi, Lucknow 2-1, Park Centre, 24, Park Street, Kolkata-700016 Phone:-033-2229 2229/033-46012507

Email:[email protected] 

===================================================================1

INDEPENDENT AUDITOR'S REPORT

TO THE BOARD OF DIRECTORS OF HINDUSTAN COPPER LIMITED

Report on the audit of the Consolidated Financial Results

Opinion

We have audited the accompanying statement of Consolidated Financial Results of Hindustan Copper limited ("the Holding Company") and its one subsidiary company (Holding company and its subsidiary company together referred to as "the Group") and its one jointly controlled entity for the quarter ended 31st March 2020 and for the period from 1st April 2019 to 31st March 2020("the Statement"), being submitted by the HOlding company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the reports of the other auditors on separate financial statements/financial information of subsidiary and jointly controlled entity, the Statement:

  • a) include the Financial Results of the Chhattisgarh Copper Limited (Subsidiary company-74% holding) and its one jointly controlled entity named Khanij Bidesh India Limited (30% holding) in addition to that of Hindustan Copper Limited (Standalone Financial Results),

  • b) is presented in accordance with the requirements of Regulation 33 of the Listing Regulations, as amended; and

  • c) gives a true and fair view in conformity with the applicable Indian Accounting Standards and other accounting principles generally accepted in India, of the consolidated total comprehensive loss (comprising of net loss and other comprehensive loss) and other financial information of the Group and Its jointly controlled entity for the quarter ended 31st March 2020 and for the period from 1st April 2019 to 31st March 2020.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financia/ Results section of our report. We are independent of the Group a.nd its jointly controlled entity in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Financial Results under the provisions of the Companies Act, 2013 and the Rules 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 obtained by us and other auditors in terms of their reports referred to in "Other Matter" paragraph below, is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matters We draw attention to the following matters:

  • a) Title deeds for freehold and leasehold land and building acquired in respect of Gujarat Copper Project (GCP) of Holding company with book value of Rs5578.11 Lakh (PY:-Rs.5859.97 Lakh) are yet to be executed in favor of the Holding company. Title deeds for leasehold and freehold lands or other evidences of title are pending to be reconciled with the financial records within the Group.

  • b) Balances under the head Claims Recoverable, Loans & Advances, Deposits with various parties and certain balances of receivables, payables and other current liabilities at Holding company have not been confirmed as at 31" March, 2020.Consequential Impact upon receipt of such confirmation/reconciliation/adjustments of such balances, if any is not ascertainable at this stage;

Page 1 of4

  • c) Gujarat Copper project at Holding company valuing RS.2597008 Lakh (PY:-Rs.27214.50 Lakh) 13 where the Holding company has not been able to operate profitably due to various constraints, viability assessment needs to be done to evaluate and adjust for possible impairment loss, if any.

  • d) Note NO.6 of the Statement which describe the uncertainties and assessment of possible impact of COVID-19 pandemic on its business operations, financial assets, contractual obligations and its overall liquidity position as 2t March 31, 2020. The Group and its jointly controlled entity's management will continue to monitor in future any material changes arising on financial and operational performance of the Group and its jointly controlled entity due to the impact of this pandemic and necessary measure to address the situation.

  • e) Closing stock of Holding company as on 31[st] March, 2020 as referred in Note nO.6 of the Statement has been reduced aggregately by Rs. 25710.39 Lakh due to one-time adjustment through write-off in value of closing stock arising as a result of, reconciliation of metal content in copper concentrate on inter-unit transfer and sales, assessment of metal loss in generation of Granulated Dump Slag, handling losses and old & oxidized concentrate. Further, low grade Lean Ore and Mill Scat, not presently in use in manufacturing process, for which a provision amounting to Rs. 18331.80 Lakh has been made in the books of accounts by the management as at 31st March 2020. Further as mentioned in the referred note, the Holding company has modified its Standard Operating Procedure on Inventory Management to strengthen the reconciliation of inventory as an ongoing activity and identification and segregation of unused stock for better control;

Our opinion is not modified in respect of these matters.

Management's Responsibilities for the Consolidated Financial Results These quarterly Consolidated Financial Results as well as the year to date Consolidated Financial Results have been prepared on the basis of the ConSOlidated Financial Statements.

The Holding Company's Board of Directors are responsible for the preparation and presentation of these Consolidated Financial Results that give a true and fair view of the net loss including other comprehensive loss and other financial information of the Group including its jointly controlled entity in accordance with the recognition and measurement principles laid down in Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance w;th Regulation 33 of the Listing Regulations. The respective Board of Directors of the companies included in the Group and of its jointly controlled entity are responsible for maintenance of adequate accounting records in accordance with the provisions of the act for safeguarding of the assets of the Group and its Jointly controlled entity and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and the 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 Consolidated Financial Results that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Consolidated Financial Results by the Directors of the Holding Company, as aforesaid.

In preparing the Consolidated Financial Results, the respective Board of Directors of the companies included in the Group and its jointly controlled entity are responsible for assessing the ability of the Group and jointly controlled entity to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Group and jointly controlled entity or to cease operations, or has no realistic alternative but to do so. The respective Board of Directors of the companies included in the Group and of its joint controlled entity is responsible for overseeing the financial reporting process of the Group and its joint controlled entity.

Auditor's Responsibilities for the Audit of the Consolidated Financial Results Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Results 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 as,;urance 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 te influence the economic decisions of users taken on the basis of these Consolidated Financial Results. -OD '- I <f . -,:\<0 o .e:l1l' O~\;U"~:~ ~/;::; 'liD ACJJ~?'. \ .... Page 2 of 4

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

  • Identify and assess the risks of material misstatement of the Consolidated Financial Results, 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, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

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

  • Conclude on the appropriateness of the Board of Directors' 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 Group and its joint controlled entity 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 Financial Results 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 Group and its joint controlled entity to cease to continue as a going concern.

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

  • Obtain sufficient appropriate audit evidence regarding the financial information of the entity within the Group and its jointly controlled entity to express an opinion on the Consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of the financial information of such entities included in the Consolidated Financial Results of which we are the independent auditors. For the other entities included in the Consolidated Financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

Materiality is the magnitude of misstatements in the Consolidated Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Consolidated Financial Results 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 Consolidated Financial Results.

We communicate with those charged with governance of the Holding Company and such other entities included in the Consolidated Financial Results of which we are the independent auditors 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.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.

Page 3 of 4 

(S-

Other Matters

  • 1) The Consolidated Financial Results include the audited Financial Results of Chhattisgarh Copper Limited (subsidiary company) and Khanij Bidesh India Limited Uointly controlled entity) whose Financial Results/financial informationlfinancial statement reflects Group's share of total assets Rs. 5.31 lakh as at 31" March, 2020, Group's share of total revenue is !'ill..and Group's share of total net loss after tax of Rs. 31.40 lakh for the period from 1" April 2019 to 31" March, 2020, as considered in the Consolidated Financial Results, which have been audited by their respective Independent auditors. The Independent Auditors' Report on financial statements/financial information of these entities have been furnished to us, and our opinion on the Consolidated Financial Results, in so far as it relates to the amounts and disclosures included in respect of these entities, is based solely on the report of such auditors and the procedures performed by us are as stated in paragraph above.

Our opinion on the Consolidated Financial Results is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors, and the Financial Resultslfinancial information as certified by the Board of Directors.

  • 2) Due to the outbreak of COVID-19 pandemic that caused nationwide lockdown and other travel restrictions imposed by the Central and State Governments/local administration during the period of audit as incase of HOlding company, we could not travel to the Plants/Projects/Regional Sales offices and carry out the audit processes physically at the respective Plants/Projects/Regional Sales offices. Necessary records/ reports/ documents/ certificates of the respective Plants /Projects / Regional Sales offices were made available to us by the management through e-mail and to the extent generated from the ORACLE system at Head office, Kolkata and on which were relied upon as audit evidence for conducting the audit and reporting for the current period. Our opinion on the Consolidated Financial Results is not modified in respect of this matter.

For Chaturvedi & Co. Chartered Accountants Fg stration i rm,s No.302137E) :;>:&A2A R.K. Nanda Partner (Membership NO.510574) Place: Kolkata Date: 21" July, 2020

Page 4 of 4

~~'R05~~s

HINDUSTAN COPPER LIMITED

www.hindustancopper.com

'llT<f ~ 'liT '3'lilil1 A GOVT. OF INDIA ENTERPRISE

CIN : L27201WB1967GOI028825

Declaration in respect of Unmodified Opinion on Audited Financial Results of Hindustan Copper limited (Standalone & Consolidated) for the Financial Year ended 31[st] March 2020

  1. Name of the Company

: HINDUSTAN COPPER LIMITED (Standalone & Consolidated)

  1. Financial statements for the period ended

: 31st March 2020

  1. Type of Audit observation : Unmodified

  2. Frequency of observation

: NA

Attending the Meeting through VC from Lucknow and approved the Declaration.

(lJ,~~ the Declaration. 2./.07. 20;2.0 (Arun Kumar Shukla) (Pawan Kumar Dhawan) Chairman and Managing Director Chairman of Audit Committee (DIN: 03324672) (DIN: 07327568)

~ ~\Orl~ol.O (S K Bandyopadhyay) Director (Finance) (DIN: 08173882)

ForCHATURVEDI & CO. Chartered Accountants

F m Re . tration NO.302137E

RKNANDA

Partner Membership NO.510574

Place: Kolkata Dated: 21st July 2020

lj41'fid v:<fll"fR" ifl14ri'S1i : <lIWlCR,1,31I'gCl)q~ ~tIT.i/'r:~.10224,<fflt'lI\1I-700 019 Registered & Head OffIce : Tamra Bhavan, 1, Ashutosh Chowdhury Avenue, P.B. NO.1 0224. Kolkata.700 019 ~ Tel: 2283-2226 (Hunting), 4i<ffl Fax: (033) 2263-247812640, jf-4o! E-mail: [email protected]

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