SHORT REPORT

Annual Report of NALCO 2011-2012: Bauxite- 5002626 MT Alumina Hydrate- 168700 MT Aluminum- 413089 MT Exports turnover- Rs. 2569 crore Net sales- Rs. 6500 crore Product Portfolio: Aluminum metal: Ignots Sows Billets Alloy wired rods cast strips Alumina & Hydrate: Calcined alumina Alumina hydrate Zeolite- A Speciality hydrate/ Alumina Other Aluminum rolled products Product Mix: Here it is rather known as Product grade. It is divided into two types: EC Grade CG Grade (Less pure compared to EC grade). Export of EC grade Ignots is done according to P1020A in LME.

Export Procedure of NALCO:

-Started exporting in September 1998. - Registered with London metal exchange. - Ignots, sows and billets are exported internationally. - According to LME GRADE; AL- 99.7%, Fe- 0.2% and Si- 0.1%. - Exports metal through sea ports of Kolkata, Paradip and Vizag and through land in Bangladesh.

3.1 Registering customers for tender: Overseas buyers with good financial credentials, good business credit worthiness and experience in international business are eligible. Annual turnover of the buyer should be less than USD 6.0 million. 3.2 Order booking: Done through process 3.2.1 Limited Tendering: Tender is floated based on some factors like target, order booking position, Metal availability, LME prices, prevailing domestic prices, proposal for floating and competent authority approval. 3.2.2 One-to-one contracts: Registered customer should have performed a contract with NALCO at least once. If the registered customer is a direct end user then that would be considered as one-to-one. The contract through one-to-one negotiation could be for spot sale i.e. sale within the same month or sale on forward basis spread over one to twelve months. 3.2.3 Participation in Global tenders: Issued by various overseas customer. Proposal shall be put up for approval of competent authority. 3.3 Standard terms and conditions: The standard terms and conditions are covered under ANNEXURE. 3.4 Activities related to execution of contracts: 3.4.1 Sale order: The contents of sale order are material description, quantity, shipment schedule, delivery basis, price, quotational price, payment terms, standard terms and conditions, name and address of the bank, lay days, loading rate etc. 3.4.2 Dispatch Instruction: Based on ongoing contracts and the metal planning. 3.4.3 Financial arrangement. 3.4.4 Rake dispatch documents. 3.4.5 Pre-shipment activities and documents. Declaration of destination to NALCO port offices Rake data updating Performa Invoice Packing list Cast/heat wise statement Are-Pi statement 3.4.6 Post-shipment Documentation: Bill of lading Certificate of origin from chamber of commerce. Shipping bills Shipment information Documents pertaining to the shipment Details of courier airway bill number

Proof of export

3.4.7 Ocean freight and up-charges: In case the buyers choose to take the metal to any destination other than Singapore the preices are suitably modified taking into account the freight up-charge. These are reviewed periodically in a span of 6 months. 3.4.8 Periodic review of customer base. 3.4.9 Customer complaints: Handled by marketing department with necessary assistance from port offices. 3.5 Activities related to metal shipment a ports Vizag/ Paradip/ Kolkata: 3.5.1 Pre-shipment activities: [A] Finalizing ocean freight [B] Receipt of metal rake [C] Receipt of export documents, stuffing of containers, custom clearance and shipment. 3.5.2 Post-shipment activities: After the cargo is unboard the vessel, the bill of lading shall be issued by the streamer. The bill of lading along with the GR form, exchange copy of the shipping bill and other documents under the letter of credit such as certificate of origin from chamber of commerce, vessel agent certificate is sent to corporate marketing department (exports). 3.5.3 Export through land customs at Kolkata: After the cargo has been cleared by land customs and has crossed the border the C&F agent shall obtain all the documents like truck receipt, export bill etc. 3.5.4 Physical stock verification: C&F shall submit a weekly stock statement to the respective port offices. A monthly physical stock verification should be carried out jointly with NALCOs surveyor. 3.6 Export of rolled products: Rolled product unit formerly known as international aluminum product limited (IAPL) was taken over by NALCO in 2000. RPU being an export oriented unit (EOU) the thrust is given to export.