Table of content:

The following concise report of NALCO consists of following contents

as mentioned in tabular format.

Serial number Particulars

INTRODUCTION
1
DIRECTORS REPORT
2
ANNUAL CSR REPORT
3
REVENUE FROM OPERATION
4
REVENUE FROM NON OPERATION
5
EXPENDITURE
6
PROFIT AFTER TAX &EARNING PER
7 SHARE
FINANCIAL RATIO
8
DIVIDEND PARTICULARS
9
FINANCIAL POSITION
10
Introduction to the Nalco:
National Aluminium Company Limited (NALCO) is a Navratna CPSE under Ministry of
Mines. It was established on 7th January, 1981, with its registered office at
Bhubaneswar. The Company is a group ‘A’ CPSE, having integrated and diversified
operations in mining, metal and power. The Company registered a record net-profit of Rs
1732 crore in 2018-19, which is the highest in a decade and sales turnover of Rs 11386
crore in financial year 2018-19, which is the highest since inception. The export earning
have been recorded at 4,793 crore, also registering an impressive growth of 18 per cent
over 2017-18. In matters of profitability, NALCO is ahead of its private sector peers by
registering EBIDTA margin of 28 per cent. Presently, Government of India holds 51.5%
equity of NALCO.

NALCO is one of the largest integrated Bauxite-Alumina-Aluminium- Power Complex in

the Country. The Company has a 68.25 lakh TPA Bauxite Mine & 21.00 lakh TPA
(normative capacity) Alumina Refinery located at Damanjodi in Koraput district of
Odisha, and 4.60 lakh TPA Aluminium Smelter & 1200MW Captive Power Plant located
at Angul, Odisha. NALCO has bulk shipment facilities at Vizag port for export of
Alumina/Aluminium and import of caustic soda and also utilizes the facilities at Kolkata
and Paradeep Ports. The Company has registered sales offices in Delhi, Kolkata,
Mumbai, Chennai and Bangalore and 9 operating stockyards at various locations in the
Country to facilitate domestic marketing.

Globally, NALCO has achieved the distinction of being the ‘lowest cost producer of
bauxite’ in the world for the year 2018 as per the latest report of Wood Mackenzie. This
achievement adds to the fact that the company has maintained its status as the lowest
cost producer of alumina globally since the last three years. With sustained quality
products, the Company’s export earnings accounted for about 43% of the sales turnover
in the year 2017-18 and the Company was rated 3rd highest net export earning CPSE in
2017-18 as per Public Enterprise Survey report.

With its consistent track record in capacity utilization, technology absorption, quality
assurance, export performance and posting profits, NALCO is a bright example of India’s
industrial capability.

NALCO is the first Public Sector Company in the country to venture into international
market in a big way with London Metal Exchange (LME) registration since May, 1989.
The Company is listed at Bombay Stock Exchange (BSE) since 1992 and National Stock
Exchange (NSE) since 1999. Besides, ISO 9001, ISO 14001, OHSAS 18000 & SA 8000
certifications, the Company has also adopted ISO 50001 standards for Energy
Management System.

To face the challenges of ever-evolving market and position the Company in a

sustainable growth path, a new corporate plan has been developed with well-defined 3
year action plan, 7 year strategy & 15 years vision of being a Premier and Integrated
Company in the Aluminium value chain with strategic presence in Mining both domestic
& global, Metals and Energy sectors. The Corporate Plan has chalked out a roadmap for
multifold growth in revenue and Profit by 2032.

As a responsive Corporate, the Company is harnessing renewable energy aligning to

the ambitious programmes of Govt. of India. The Company has already commissioned
198 MW wind power plants and further 25 MW wind power plants are in pipeline, making
it the highest producer of renewable energy among PSUs.

To be more resilient to the vagaries of market, the Company has prepared a New All-
Weather Business Model. It has extensive plans for brownfield and greenfield expansion
projects, which include the ongoing 5th Stream Refinery project of 1 MTPA capacity in
existing Alumina Refinery at Damanjodi (Brownfield), development of Pottangi bauxite
mines, Utkal D&E coal mines in Odisha, establishment 5 lakh TPA brownfield Smelters
in Odisha.

As part of backward integration, the Company is establishing a caustic soda plant in JV

with Gujarat Alkalies& Chemicals Limited (GACL) in Gujarat and a CT Pitch plant in JV
with NINL in Odisha.

NALCO is a leading name in the industrial map of Eastern India. True to the spirit, the
Company is taking the lead to bring in a significant change in the Industrial map of
Odisha. The Company has formed JV Company named ‘Angul Aluminium Park Private
Ltd’ (AAPPL) with Odisha Industrial Infrastructure Development Corporation (IDCO) to
give a boost to ancillary, upstream & downstream products related to aluminium
industry.

The Company pursues its R&D activities fervently and has already filed 36 patents out of
which 17 patents have been granted and 6 have been commercialized till May 2019. As
a part of its effort to convert waste to wealth, the Company is endeavoring to salvage
iron concentrate from red mud, Gallium from spent liquor. The Company has also
successfully commissioned a first of its kind de-fluoridation process based on nano-
technology to de- contaminate the effluent water of Smelter solving a long standing
fluoride contamination problem of the area.

Directors Report
Dear Members,

Your Directors have great pleasure in presenting before you the 38th Annual Report of your
Company together with the audited financial statements (standalone and consolidated) and
Auditors’ Report for the financial year ended 31st March, 2019.

Bauxite Mines (North-Central Block of Panchpatmali Mines) achieved 100% capacity utilization with

transportation (production) of 68.25 lakh MT for third successive year.Transportation from South

block is 4.06 lakh MT and combined transportation of both the Mines is 72.31 lakh MT, highest ever

since inception registering a growth of 2.9% over last year.Total Bauxite excavation of 74.14 lakh MT

during the year is also highest ever since inception registering a growth of 4.7% over last year.l

Alumina Refinery achieved 102.5 % of normative capacity (i.e. 21 lakh MT) with production of 21.53

Lakh MT Alumina Hydrate which since inception.Steam Generation Plant (SGP) of Alumina Refinery

achieved highest ever net power generation of 512 MU registering a growth of 5.8% over last year.

MU registering a growth of 5.8% over last year.l Aluminium Smelter achieved highest cast metal

production of 4.40 lakh MT in last 8 years, registering a growth of 3.3% over last year.New Product:

The Company started commercial production of Strontium modified 6XXX series Aluminium

Billet.Smelter achieved highest ever production of wire rod, billet,T-ingot, green anode &rodded

anode since inception.Lowest specific DC power consumption of 13,370 Kwhr/MT since inception,

against the norm of 13,450 Kwhr/MT.Production of value added products of 1.52 lakh MT highest

ever since inception registering a growth of 10.9% over last year. CPP: All time low station heat rate

of 2,662 Kcal/Kwhrachieved at CPP. CPP achieved specific coal consumptionof 0.792 Kg/Kwhr

against target of 0.830 Kg/Kwhr. Coal consumption reduced by around 2.7 lakh MT. Wind Power: 4

wind power units at different location of the Country have generated 363 MU against 252 MU

generatedlast year, registering a growth of 44%.

Annual CSR Report:

A brief outline of the Company’s CSR Policy, including overview of projects or programs proposed to

be undertaken and a reference to the web-link to the CSR policy and projects or programs. NALCO is

committed to ensure inclusive growth of the marginalised sections of the society through its CSR

interventions in peripheral villages near to its operations. It continues to address issues related to

People, Planet & Profit for sustained growth of its business. As per the mandate of Companies Act

2013, since 2014-15 onwards, the company has been spending 2% of its average net profit during

the three immediately preceding financial years under different heads stipulated under Schedule VII

of the Companies Act, 2013. The detailed Board approved CSR Policy of the Company is placed at

Company’s website i.e. www.nalcoindia.com. Following is the overview of the initiatives, the

Company is continually giving focus: l Indradhanush: Poor tribal children from Maoist-infested

villages of Koraput are sponsored for free residential education in reputed schools in the State of

Odisha.l Nalco Ki Ladli: To enhance the literacy rate of women and to bridge the gender inequality in

Koraput and Angul district of Odisha, the Company adopts meritorious girl students of BPL families

for their education by providing financial assistance. l Door step Health service in peripheral villages:

To provide health care at the remote peripheral areas, the Company is operating Mobile Health

Units inclusive of basic medicines by treating more than 1 lakh patients every year in periphery

villages. In FY 2018-19, more than 1.5 lakhs patients benefitted by MHU service. l Drinking water

facility for the needy: Providing safe drinking water in the water scarce periphery villages as well as

pilgrims during world famous RathaYatra at Puri. l Support to Skill India: Various Skill training to

unemployed youths of the peripheral areas to make them employable. lSwachh Bharat initiatives:

Swachh iconic shrine development, swachhvidyalaya& ODF villages towards cleanliness, hygiene

and overall wellbeing are taken up. l Rural infrastructure building: Construction of roads, culverts,

drains, shelter homes, renovation and revamping of community centers and water bodies in the

periphery areas are carried out.

Revenue from operation:

Particulars FY 2018-19 FY 2017-18 Change %

Export Turnover 4,792.71 4,075.46 18
Domestic Turnover 6,593.61 5,429.66 21
Gross Turnover 11,386.32 9,505.12 20
Other operating 113.00 113.19 --
income
Total 11,499.33 9,618.31 20

Revenue from non operation:

Particulars FY 2018-19 FY 2017-18 Change %
Other income 325.87 299.65 9

Expenditure:
Particulars FY 2018-19 FY 2017-18 Change %
Raw material 1919.68 1465.31 31
consumed
Power and fuel 2927.12 2747.92 30
EBS 2072.28 2261.20 8
SAD 5.08 47.43 111
Other expense 1692.79 1590.14 6
Finance cost 2.38 1.95 22
Depreciation 476.10 480.40 1
Excise duty -- 108.86 100
Total 9085.27 8703.21 17

Profit after tax and earning per share:

Particulars FY 2018-19 FY 2017-18
Profit before tax 2739.92 2038.83
Tax expense 1007.52 696.42
Profit after tax 1732.4 1342.41
Earning per share 9.06 6.94
Financial ratios:
Particulars FY 2018-19 FY 2017-18 Change %
Operating profit 25 14 70
margin
Return on net worth 16 12 29

Dividend particulars:

Particulars FY 2018-19 FY 2017-18

Interim dividend 90 94
Final dividend 25 20
Total 115 114

Financial position:

Particulars FY 2018-19 FY 2017-18 Change %

Assets 1
Property, Plant & 7,953.28 7,845.21 3
Equipment
Intangibles 215.21 209.47 64
Investments 256.59 710.57 1

Inventories 1,210.01 1,194.08 7

Trade Receivables 240.52 258.13 26
Bank Cash 3,496.35 2,768.95 4
Loans) 100.49 104.25 93
Other Financial Assets 11.60 165.69 22
51.26 33.66 52 22
Current Tax Assets
Other Assets 1611.65 15151.45 --

Total 15146.96 14613.80 15

Equities and liabilities

Equity share capital 932.81 966.46 (3
Reserve & Surplus 9,551.70 9,538.35 0.14

Deferred Tax Liability 1,130.67 1,151.45 (2)

Trade payable 1,306.91 977.37 34

Borrowings 66.79 44.99 48 48

Other Financial 417.56 515.72 (19)

liabilities
Provisions 696.44 811.97 (14)

Other Liabilities 1,044.08 607.49 72

Total 15,146.96 14,613.80 —