MIRA
INFORM REPORT
|
Report Date : |
30.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
THE NATIONAL ALUMINIUM COMPANY LIMITED |
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Registered
Office : |
Nalco Bhawan, Plot No. – P/1, Nayapalli, Bhubaneshwar – 751 013,
Orissa |
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Country : |
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Financials (as
on) : |
31.03.2006 |
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Date of
Incorporation : |
07.01.1981 |
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Com. Reg. No.: |
03-920 |
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CIN No.: [Company
Identification No.] |
L27203OR1981GOI000920 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
BBNN00046E |
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PAN No.: [Permanent
Account No.] |
AAACN7449M |
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Legal Form : |
Public Limited Liability
Company The company’s shares are listed on the Stock Exchanges |
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Line of Business
: |
Manufacturing and marketing of Bauxite, Alumina Hydrate, Calcined
Alumina, Aluminium Ingots, Aluminium Sow Ingots, Aluminium Wire Rods,
Aluminium Billets. It is also engaged in generation and sale of Electricity. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit
Limit : |
USD 235000000 |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine
track. Financial position is
good. Payments are correct and as per
commitments. The company is doing
well. The company can be considered good for any normal business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
Nalco Bhawan, Plot No. – P/1, Nayapalli, Bhubaneshwar – 751 013, |
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Tel. No.: |
91-674-2442301–08 / 2301988 / 231989 / 2301990 / 2301999 / 2303197 |
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Fax No.: |
91-674-2300550 / 2442580 / 2442640 / 2442740 / 2442677 / 2300470 /
23005801 / 2300677 / 2300740 / 2300677 |
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E-Mail : |
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Website : |
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Telex : |
0675-690 / 6298 / 6431 NAL IN |
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Gram : |
NALCO |
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Regional Offices : |
Eastern Region Binoy Bhawan, 6th Floor, 27-B, Tel. No.: 91-33-22470115/22477360 Fax No.: 91-33-22478936/22810393 E-Mail : rmnalkol@vsnl.net Western Region 215.T.V. Industrial Estate, S.K. Ahire Marg, Worli, Mumbai - 400 025 Tel. No.: 91-22-24939288/24939289 Fax No.: 91-22-24950500 E-Mail : nalcobom@mtnl.net.in Northern Region 303,Mercantile House, 15,Kasturba Gandhi Marg, New Delhi-110 001 Tel. No.: 91-11-23706080/81 Fax No.: 91-11-23721195/23706090 E-Mail : rmsdel@satyam.net.in Southern Region 3E, Tel. No.: 91-44-24344162/24349157 Fax No.: 91-44-24343495 E-Mail : rmchn@satyam.net.in |
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Plants : |
Port Facilities
Opposite Tel. No. 91-891-2561433
/ 2561435 Fax No. 91-891-2561598 Smelter Plant
Nalco Nagar – 759 14, Dist. Angul, Orissa Tel. No. 91-6764-220169 Fax No. 91-6764-220132 Captive Power Plant
District Angul – 759 112, Orissa Tel. No. 91-6764-220360 Fax No. 91-6764-220646 Telex : 06306-205
CPP IN Mines and Refinery Damanjodi
Mines and Refinery Complex, Damanjodi – 763
008, District Koraput, Orissa Tel. No. 91-6855-233201/
2759145 Fax No. 91-6855-232214/32288 |
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Warehouse : |
·
Gupta Warehousing Complex, Godown No. B-9, Tel. 91-22-276323/276600 ·
NSIC, 20, Industrial Estate, Tel. 91-413-51109/50276 ·
C/o, Balmer Lawrie & Company Limited, WH, Tel. 91-33-24495299 ·
C/o M/s. Container Corporation of Tel. 91-80-28451327/2078/2083 ·
Haryana State Small Industries & Export
Corporation Limited, 17/6, ·
Nalco Bhawan, Plot No. P/1, Nayapalli,
Bhubaneshwar – 751 013, Orissa Tel. 91-674-2301988 To
2301999 |
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Sales &
Marketing Office : |
No. 37, 1st Floor, VVP Nagar, ( Tel. 91-674-2301988/2301989 |
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Branches : |
Marketing Offices
v 3rd Floor, Reshma Complex, 5th Floor, Tel. No. 91-80-558 7298 / 558 7086 Fax No. 91-80-558 6151 v National Aluminium Company Limited, C/o Central Warehousing
Corporation “Central Warehouse”, Jaipur – 302 022, Rajasthan Tel. No.
91-141-2770226/2770817 v 215, T. V. Industrial Estate, S. K. Ahire Marg, Worli, Mumbai – 400
025, Tel. No. 91-22-24939288 / 24939289 Fax No. 91-22-24950500 v Binoy Bhawan, 6th Floor, 27-B, Tel. No. 91-33-22401373 Fax No. 91-33-22478936 v 303, Mercantile House, 15, Kasturba Gandhi Marg, Tel. No. 91-11-23713430 / 23757 / 1634 Fax No. 91-11-23711636 v 3J, Tel. No. 91-44-24344162 Fax No. 91-44-2453495 v Tel. No. 91-413-250276 / 251109 Fax No. 91-413-250277 Stock Yards
v National Small Industries Corporation Limited PDTC/NSIC
Complex, Okhla Industrial Estate, v
Godown No. A/20, Gupta
Warehousing complex, Mhatre Compound, Dapoda Village, Taluka, Bhiwandi, Dist.
Thane, Maharashtra v
The Haryana State Small Industries & Export
Corporation Limited 17/6, v
N.S.I.C., 20, Industrial Estate, Thattanchavady, |
DIRECTORS
|
Name : |
Mr. C. Venkataramana |
|
Designation : |
Chairman cum Managing Director |
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Name : |
Mr. C. R. Pradhan |
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Designation : |
Director |
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Name : |
Mr. Harbhajan Singh |
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Designation : |
Director |
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Name : |
Mr. V. K. Thakral |
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Designation : |
Director |
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Name : |
Mr. S. C. Chhatwal |
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Designation : |
Director |
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Name : |
Mr. K. K. Mallick |
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Designation : |
Director |
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Name : |
Mr. A. R. Ray |
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Designation : |
Director |
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Name : |
Mr. N. K. Jain |
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Designation : |
Executive Director |
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Name : |
Mr. B. S. Singh Rao |
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Designation : |
Executive Director |
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Name : |
Mr. P. K. Routray |
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Designation : |
Executive Director |
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Name : |
Mr. R. K. Maheswari |
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Designation : |
Executive Director |
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Name : |
Mr. A. Rath |
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Designation : |
Executive Director |
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Name : |
Mr. U. B. Patnaik |
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Designation : |
Executive Director |
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Name : |
Mr. A. Mahapatra |
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Designation : |
Executive Director |
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Name : |
Dr. Pradeep Kumar |
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Designation : |
Director |
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Name : |
Mr. P.K. Parida |
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Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. G. Kameswara Rao |
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Designation : |
Chief Vigilance Officer |
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Name : |
Mr. K. N. Ravindra |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Indian
Promoters |
561499635 |
87.15 |
|
Mutual Funds
and UTI |
11133213 |
1.73 |
|
Non-Government
[Institutions] |
26762439 |
4.15 |
|
FIIS |
18764770 |
2.91 |
|
Private
Corporate Bodies |
18337763 |
2.85 |
|
Indian Public |
7109647 |
1.10 |
|
NRI’s / OCB’s |
400119 |
0.06 |
|
Other |
302042 |
0.05 |
|
Grand Total |
644309628 |
100.00 |
BUSINESS DETAILS
|
Line of Business
: |
Manufacturing and marketing of Bauxite, Alumina Hydrate, Calcined
Alumina, Aluminium Ingots, Aluminium Sow Ingots, Aluminium Wire Rods,
Aluminium Billets. It is also engaged in generation and sale of Electricity. |
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Exports to : |
Australia, China, Hong Kong, Indonesia, Italy, Japan, Korea,
Philippines, Russia, Singapore, Taiwan, Thailand, Turkey, UAE and USA
[Alumina and Aluminium] |
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Imports from : |
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Terms : |
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Purchasing : |
L/C, D/A, D/P and Credit |
PRODUCTION STATUS
|
Particulars |
Installed
Capacity [In Tonnes] |
Actual Production
[In Tonnes] |
|
Bauxite |
4800000 |
4854253 |
|
Detergent Grade Zeolite |
10000 |
7740 |
|
Aluminium Hydrate |
1575000 |
1590000 |
|
Special Grade Hydrate |
7150 |
5473 |
|
Calcined Alumina |
1575000 |
1578000 |
|
Special Grade Alumina |
7450 |
1713 |
|
Aluminium Metal |
345000 |
358954 |
|
a) Aluminium Standard Ingots |
215000 |
163652 |
|
b) Aluminium Sow Ingots |
-- |
100069 |
|
c) Aluminium Wire Rods |
100000 |
67319 |
|
d) Aluminium Billets |
30000 |
16945 |
|
e) Aluminium Strips-Smelter |
26000 |
3624 |
|
f) Aluminium Strips-RPU |
52000 |
5786 |
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Rolled Products |
45000 |
5040 |
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Electricity |
960 MW |
5679MU |
GENERAL INFORMATION
|
Products : |
Generic Name of the Principal Products / Services are :
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No. of Employees
: |
7406 (Executives-1770, Supervisory-893, Skilled/Highly skilled-3571,
Unskilled/ Semiskilled-1172) |
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Bankers : |
State Bank of |
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Banking
Relations : |
Good |
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Auditors : |
SRB and Associates Chartered Accountants 5th Floor, Janpath, Bhubaneswar-751022, Niran & Company Cost Accountants, 440, Sahid Nagar, |
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Membership : |
Confederation of Indian Industry |
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Subsidiaries : |
International Aluminium Products Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1300000000 |
Equity Shares |
Rs. 10/- each |
Rs. 13000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
644309628 |
Equity Shares |
Rs. 10/- each |
Rs. 6443.100 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
6443.100 |
6443.100 |
6443.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
52483.600 |
40535.000 |
31123.600 |
|
|
4] (Accumulated Losses) |
0.0000 |
0.000 |
0.000 |
|
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NETWORTH |
58926.700 |
46978.100 |
37566.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
6543.900 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
6543.900 |
|
|
DEFERRED TAX LIABILITIES |
6417.300 |
6524.500 |
6099.900 |
|
|
|
|
|
|
|
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TOTAL |
65344.000 |
53502.600 |
50210.500 |
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
39445.100 |
41390.000 |
39034.800 |
|
|
Capital work-in-progress |
2321.600 |
2066.100 |
7913.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
2000.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5915.800
|
5290.600
|
4804.800 |
|
|
Sundry Debtors |
294.200
|
928.100
|
1022.400 |
|
|
Cash & Bank Balances |
21937.100
|
7552.100
|
983.600 |
|
|
Other Current Assets |
1186.200
|
820.100
|
865.100 |
|
|
Loans & Advances |
3645.500
|
3519.500
|
2229.200 |
|
Total
Current Assets |
32978.800
|
18110.400
|
9905.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
6073.300
|
6162.500
|
5478.800 |
|
|
Provisions |
3328.200
|
1901.400
|
3164.000 |
|
Total
Current Liabilities |
9401.500
|
8063.900
|
8642.800 |
|
|
Net Current Assets |
23577.300
|
10046.500
|
1262.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
65344.000 |
53502.600 |
50210.500 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
48519.000 |
41041.100 |
|
|
|
Other Income |
2307.000 |
2506.500 |
|
|
|
Total Income |
50826.000 |
43547.600 |
33247.700 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
24296.400 |
18702.700 |
10527.600 |
|
|
Provision for Taxation |
85744.00 |
6354.300 |
3153.900 |
|
|
Profit/(Loss) After Tax |
15622.00 |
12348.400 |
7373.700 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
23174.700 |
|
|
|
|
Commission Earnings |
7.300 |
10.000 |
17235.400 |
|
|
Other Earnings |
23182.000 |
21468.700 |
|
|
Total Earnings |
46364.000 |
42937.400 |
17235.400 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
864.200 |
936.700 |
|
|
|
Stores & Spares |
356.300 |
333.600 |
1276.300 |
|
|
Capital Goods |
140.100 |
266.500 |
|
|
Total Imports |
1360.600 |
1536.800 |
1276.300 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Intermediary Products/ work in process |
5210.500 |
4442.400 |
|
|
|
Manufacturing Expenses |
1399.600 |
1106.500 |
|
|
|
Administrative Expenses |
858.400 |
791.000 |
|
|
|
Raw Material Consumed |
9378.400 |
7583.400 |
|
|
|
Repairs and Maintenance |
1919.300 |
1643.700 |
|
|
|
Selling and Distribution Expenses |
801.700 |
810.900 |
|
|
|
Increase/(Decrease) in Finished Goods |
(539.000) |
(241.100) |
22953.900 |
|
|
Salaries, Wages, Bonus, etc. |
3314.500 |
2899.900 |
|
|
|
Interest |
0.000 |
606.100 |
|
|
|
Power & Fuel |
1919.300 |
1643.700 |
|
|
|
Depreciation & Amortization |
3772.400 |
4610.800 |
|
|
|
Other Expenditure |
706.000 |
573.700 |
|
|
Total Expenditure |
26826.400 |
24849.200 |
22953.900 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 |
|
Type |
|
|
Full
Year |
|
Sales Turnover |
|
|
59424.600 |
|
Other Income |
|
|
4025.300 |
|
Total Income |
|
|
63449.900 |
|
Total Expenditure |
|
|
24082.800 |
|
Operating Profit |
|
|
39367.100 |
|
Gross Profit |
|
|
39367.100 |
|
Depreciation |
|
|
3120.500 |
|
Tax |
|
|
12439.600 |
|
Reported PAT |
|
|
23807.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.00 |
0.08 |
0.28 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.08 |
0.22 |
|
Current Ratio |
1.66 |
0.96 |
0.58 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.60 |
0.53 |
0.43 |
|
Inventory |
9.45 |
8.79 |
6.92 |
|
Debtors |
86.65 |
45.48 |
32.88 |
|
Interest Cover Ratio |
70.78 |
22.36 |
9.78 |
|
Operating Profit Margin(%) |
53.66 |
54.53 |
48.05 |
|
Profit Before Interest And Tax Margin(%) |
46.54 |
44.14 |
34.96 |
|
Cash Profit Margin(%) |
36.62 |
38.23 |
35.07 |
|
Adjusted Net Profit Margin(%) |
29.50 |
27.84 |
21.98 |
|
Return On Capital Employed(%) |
46.54 |
42.99 |
25.93 |
|
Return On Net Worth(%) |
29.50 |
29.21 |
20.87 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.235.50/- |
|
Low |
Rs.227.00/- |
LOCAL AGENCY FURTHER INFORMATION
History :
The company was incorporated on 7th January, 1981 at Bhubaneshwar
in Orissa having Company Registration Number 920.
The company is a Public Sector Non Ferrous giant and a leading player in
the Aluminium Industry. The company owns one of the largest deposits of Bauxite
together with integrated production facilities thus making it one of the lowest
cost producers of aluminium in the world.
As an integrated player the company owns a bauxite mine (4.800 millions TPA
capacity), an Alumina refinery (1.570 millions tpa capacity), an aluminium
smelter (0.345 millions tpa) and captive power plants. Further the company have
a port facility and was the first Indian company to link domestic prices of its
products to the London Metal Exchange (LME). With the advantage of being lowest
cost producer of aluminium in the world Nalco derives more than 50% of its
sales from exports.
The company, usually which is not hesitant to expansions if the market demands
has completed a series of expansion programme during the year 1998-2001
consisting of expansion of Bauxite mine capacity to 4.800 millions tpa (from
2.400 millions tpa) aluminium refinery to 1.575 millions tpa (from 0.800
millions tpa) with an capital outlay of Rs.42000.00 millions has submitted its
second pase of its expansion plan with an capital outlay of Rs.40000.000
millions to Government of India for its approval. This second phase of
expansion involves hiking bauxite mine capacity to 6.300 millions tpa, Alumina
refinery capacity to 2.100 millions tpa, aluminium smelter capacity to 0.460
millions tpa and the captive power plants capacity. The captive power plant
capacity is expanded at a cost of Rs.4800.00 millions funded brom internal
accruals and borrowings. This project meet the additional power requirement for
the expanded capacity of its aluminium smelter (to 0.345 million tpa). The
smelter was expected to be commissioned by Feburary 14, 2004. Dasturco is the
consultant for this project.
International Aluminium Products was amalgamated with the company since
November, 2001 and its cold rolling mill was commissioned in March,2002. This
has changed the scene in the value added products segment, which is the missing
link in the product chain of the company.
During the fiscal 2001, it completed the Special Grade Alumina project
and Zeolite-A project.
During 2004-05 the company enhanced its installed capacity
of Special Grade Hydrate (Aluminium Hydrate), Aluminium Metal & Electricity
by 150 Tonnes, 57500 Tonnes and 120 MW respectively. With this expansion the
total installed capacity of Special Grade Hydrate(Aluminium Hydrate), Aluminium
Metal & Electricity was increased to 7150 Tonnes, 345000 Tonnes and 960 MW
respectively. Further the company has included Special Grade Alumina (Calcined
Alumina) to its products with an installed capacity of 450 Tonnes.
In 2004-05 the company has revised the project of rolled production unit at a
cost of Rs.3983.5 millions approved by Public Investment Board was received on
27th January 2005 with the stipulation of completion of balance project jobs by
31st July 2005. The mechanical completion of the projects have been completed
by 30th July 2005 and commissioning activities are in progress. Caster line 1,
2 & 3 have been already been commissioned and trial runs have been
conducted. Caster line 4 is in the stage of commissioning and trial run will be
done shortly.
PERFORMANCE HIGHLIGHTS
The Directors are pleased to inform that the Company has completed yet
another successful year in 2005-06 by achieving rare distinction of highest
ever performance since inception in all segments of operation viz. in Bauxite
transportation, production of Alumina Hydrate, production of Calcined Alumina,
Steam Generation in co-generation Plant at Refinery, Cast Metal production,
Power generation at Captive Power Plant etc.
Marketing
As a marketing strategy, the Company signed MOU with more number of
domestic customers for supply of metal during 2005-06.
A total quantity of 1,03,193 MT of metal was sold from the stockyards
during the year exceeding the previous year best of 91,966 MT in 2004-05. Baddi
stockyard was opened during the year besides having regular sales activity from
other stockyards at Jaipur,
The policy of entering into MOU & the Aluminium metal sale through
plant and various stockyards helped the Company to achieve growth of
approximately 25.4% in sales in the domestic market and increasing its market
share from around 27% in 2004-05 to about 30% in 2005-06.
The Company achieved the highest ever total Aluminium metal sale of
3,53,841 MT comprising highest ever domestic sale of 2,58,094 MT with export
sale of 95,747 MT during the financial year 2005-06.
Finance
Due to increased production and sales performance on all fronts, the net
profit for the year after provision for taxes increased from Rs.12348.4
millions to Rs.15622 millions recording an increase of 27% over previous year.
The Company continued to remain as a 'Zero
Debt' Company throughout the year. Also, the Company utilized its internal cash
generation to meet its working capital requirement and utilize any working
capital borrowing facility. The Company had a surplus cash balance of Rs.21340
millions as on 31.03.2006 which is kept in short term deposit and will be
utilized to finance the 2nd phase expansion.
AWARDS & RECOGNITIONS
The Directors informed that the Company has received the following
awards in various fields:
v
For excellence in export, the Company bagged the
prestigious Niryat Shree award, instituted by the Federation of Indian Export
Organizations (FIEO).
v
The Company as well as CMD l/c of the Company were
selected for the prestigious 'Excellence Award' and 'Udyog Rattan' Award
respectively by
v
Instituted by Engineering Export Promotion Council
(EEPC), the Company bagged the Top Exporters' Awards in the Eastern Region for
the year 2001-02 and 2002-03.
v
The Company received the All India Export
Excellence Award from Engineering Export Promotion Council (EEPC) for the year
2003-04.
v
The Company bagged the Top t ^port Award of CAPEXIL
for 2004-05 for the 18th year in succession.
v
The Company adjudged as the Best Mother Plant in
Orissa for the growth of ancillary and downstream industries.
v
The Refinery Complex has received 'Best State
Safety Award' from Director of. Factories & Boilers, Orissa.
EXPANSION & DIVERSIFICATION
During the year, the Company completed the commissioning of remaining
facilities under first phase expansion.
Status of 2nd Phase expansion
Project activities of 2nd phase expansion project are in progress.
Orders have already been placed for many of the packages and total financial
commitment up to July'06 is Rs.17405.7 millions out of the total project cost
of Rs.409.151 millions schedule to be completed in 2008.
The present capacity of the various project segments and tbe capacity
after 2nd phase expansion is given below:
|
Project Segment |
Present Capacity
1st Phase Expansion |
Capacity after
2nd Phase Expansion |
|
Bauxite Mine |
4.8MlnTPY |
6.3 Mia TPY |
|
Alumina Refinery |
15,75,000 TPY |
21,00,000 TPY |
|
Aluminium Smelter |
3,45,000 TPY |
4,60,000 TPY |
|
Captive Power Plant |
960 MW |
1,200 MW |
Engineers India Limited has been appointed as EPCM consultant for Mines,
Refinery, Aluminium Smelter while MECON has been appointed as EPCM consultant
for CPP and steam Generation Plant.
M N Dastur & Company has been awarded the assignment of Cost and
Time Monitoring.
Till 31.07.2006 orders have been placed for 22 packages of M&R
Complex, 21 packages for Smelter and 7 packages for CPP. The total order value
placed up to 31.07.2006 is Rs. 17405.7 millions.
Efforts made for additional Mining Lease
Stage- ll Forest Clearance for 300 of forest land of Panchpatmali
Bauxite Mines was obtained from the Ministry of Environment & Forests,
Government of India and the State Government is processing the case to issue
surface right.
The Company is pursuing with the State Government to allot Mining Lease
of Gandhamardhan Bauxite Deposit and unconditional allotment of Pottangi
deposit.
The Company has also applied for Mining Lease of Utkal- E Coal Block and
different Environmental studies are in progress for preparation of EIA in order
to apply for Environmental Clearance.
MOU PERFORMANCE
The Company's performance was 'Excellent' in terms of the Memorandum of
Understanding (MOU) signed with the Government of India for the year 2005-06. A
target production of 1.575 millions MT of Alumina and 0.345 millions MT of
Aluminium has been set in the MOU signed with the Government of India for the
year 2006-07.
INDUSTRY STRUCTURE & DEVELOPMENTS
Alumina & Chemicals
During the year 2005, the world consumption of Alumina was 62.324 million
MT against the world production of 60.995 million MT thus showing a deficit of
1.329 million MT. The world Alumina production and consumption grew by approx.
5.21% and 7.24% respectively during 2005 as compared to 2004.
The consistent demand for Alumina has prompted promoters to commence
project work for new green field Alumina projects and these projects may become
operational in the coming years. It is expected that there might be a massive
investment for undertaking green field and brown field expansions.
Aluminium
During the year 2005, the world consumption of primary Aluminium was
31.947 million MT against world supply of 31.966 million MT, showing a marginal
surplus of 0.019 million MT. The world supply and consumption grew by approx.
7.15% and 5.41% respectively during 2005 as compared to 2004. In
During the year, production from the Company's expanded capacities of
the Mines, Refinery and Aluminium Smelter was fully available. Apart from this,
ambitious second phase expansion programme of the Company's production facilities
has received the Government's nod on 26.12.2004 at an estimated capital cost of
Rs.4092 crore and the project activities have already commenced.
The Company's other value added products such as Special Grade Alumina,
Zeolite and other products have made a good presence in the market and are
being well received.
SEGMENT-WISE PERFORMANCE
OPPORTUNITIES AND THREATS
The Company with its large availability of surplus Alumina can explore
the possibility of setting up of Aluminium Smelter in the areas where the
energy is available at cheaper rates. With its excellent track record over the
years, it can also take an 'opportunity for setting up of green field projects
elsewhere in the country. The possibility of further expanding capacities in
the existing locations with proper debt checking is being explored. The threat
perceptions in the country includes competition from substitute materials
particularly plastics, progressive reduction in aluminium import tariffs,
increasing competition from across the borders, poaching of its manpower by
competitors for their green field projects and levy of antidumping duties on
imported raw materials.
OUTLOOK FOR THE INDUSTRY
Domestic Market Outlook
The domestic Aluminium supply is going to witness more metal flowing in
from the expanded capacities of their producers. The domestic demand of
Aluminium is expected to remain strong during 2006-07 and is anticipated to
grow at more than 8%.
The Company has plans to produce more quantity of Rolled Products and
sell them in the domestic market and launch the same in the overseas market.
International Outlook
Aluminium
The IMF has predicted the global economy to grow by 4.9% in 2006, up
from the 4.8% growth rate seen in 2005.
IMF sees
The Company achieved the highest ever net profit of Rs. 15622 millions
on a record breaking turnover of Rs.53241.6 millions. The Chemicals (Alumina)
segment accounted for 43% of the total revenue and 66% of Earnings before
Interest & Tax, while the Aluminium segment accounted for 57% of the total
revenue and 32% of Earnings before Interest & Tax.
Outlook for the Company
In the Company's future strategic growth plans, the core areas include
further expansion of the capacities in Mines, Refinery, Smelter and Captive
Power Plants. Its strategic plans are also directed towards meaningful
utilisation & redeployment of resources depending on the situations and
full capacity utilisation of existing operations with proactive financial
management and with qualitative focus on human resource development.
The company has received ISO 9001 and ISO 9002 Certification.
The company has technical collaboration with Aluminium Pechinery,
France.
FIXED ASSETS
The company’s fixed assets of important value include freehold land,
leasehold land, buildings, roads, bridges & culverts, railway sidings,
water supply, drainage and sewerage, power supply, drainage and sewerage, power
supply, distribution and lighting, plant & machinery, office equipments,
furniture & fitting and vehicles.
Press
Brief
NALCO’S Q4 PROFITS UP 40%
National
Aluminium Company Limited (NALCO),
According
to the unaudited results taken on record at a meeting of the Board of Directors
in
On
the production front, the company established new records in all the segments.
The company's bauxite mines crossed the rated capacity to achieve the
highest-ever production of 4.854 millions tonnes, against 4.852 millions tonnes
in the previous year. Similarly, alumina production increased to 15.90 millions
tonnes from 1.575 millions tonnes, achieving 101% capacity utilization. Cast
metal production jumped to 358,954 from 338,483 tonnes in the previous year,
achieving 104% capacity utilization. Power generation has also increased to
5679 million units from 5613 million units.
On
the marketing front also, NALCO recorded the highest-ever metal sale of 353,843
tonnes, including the highest-ever domestic aluminium metal sales of 258,096
tonnes, as compared to 338,527 tonnes and 205,797 tonnes respectively in the
previous year.
Meanwhile,
the company's 2nd phase expansion programme, at an investment of
Rs.40910 millions, is in full swing. This project will raise the bauxite mines
capacity from 4.8 millions tonnes to 6.3 millions tonnes, alumina capacity from
1.575 millions tonnes to 2.1 millions tonnes, aluminium production capacity
from 0.345 millions tonnes to 0.460 millions tonnes and power generation
capacity from 720 MW to 1200 MW. The company is also looking out for
value-addition projects, as well as for expanding its activities, both in
NALCO RECORDS HIGHEST EVER QUARTERLY NET PROFIT OF RS.283.04 MILLIONS
According
to the unaudited financial results for the 3-month period of the financial year
2005-06 taken on record in the Board of Directors meeting held in New Delhi
today (i.e. 28.10.2005), the sales turnover of the Company increased to
Rs.11499.8 millions from Rs.10622.6 millions during the quarter.
For
the 1st half of the current fiscal 2005-06, the Company achieved a sales
turnover of Rs.22216.8 millions from Rs.19536.1 millions in the previous
period, representing an increase of 13.72 %, over the corresponding 6-month
period of previous year. Similarly, net profit increased by 13.96 % to Rs.5636
millions from Rs.4945.3 millions.
The
Company has also reported improved production of alumina and aluminium in the
2nd quarter. While alumina production rose to 393,700 tonnes from 380,500
tonnes, aluminium production increased to 90,944 tonnes from 83,175 tonnes.
For
the six-month period also, the company’s alumina production increased to 789,800
tonnes from 780,000 tonnes and aluminium production to 178,097 tonnes from
156,629 tonnes.
NALCO'S 1ST QUARTER NET UP 28%
National
Aluminium Company Limited (NALCO) –
According
to the unaudited financial results for the 3-month period of the financial year
2005-06 taken on record in the Board of Directors meeting held in Bhubaneswar
today, the Company has achieved 28% jump in net profit to Rs.2805.6 millions
from Rs.2190.3 millions reported in the corresponding period of 2004-05.
Similarly, the sales turnover increased to Rs.10717 millions from Rs.8913.5
millions in the same period of previous year, registering a jump of 20%.
The
Company also achieved higher metal production of 87,153 tonnes compared to
73,454 tonnes in the first quarter of the previous year. The demand scenario in
both domestic and international market had continued to be good during the
quarter. Value addition has also taken place in alumina segment, with
production of speciality aluminas and zeolite.
National
Aluminium Company Ltd (Nalco),
According
to the unaudited results taken on record at a meeting of the Board of Directors
here today, the Company has also reported all time record sales turnover of
Rs.44379.7 millions compared to Rs.33485.7 millions in the previous year,
recording a jump of 33%. During the year 2004-05, the export business of the
Company crossed Rs.22000 millions, compared to Rs.17170 millions in the
previous year.
On
the production front, the Company established new records in all the segments.
The Company's bauxite mines crossed the rated capacity to achieve highest ever
production of 4.852 millions tonnes against 4.817 millions tonnes in the
previous year. Similarly, alumina production increased to 1.575 millions tonnes
from 1.556 millions tonnes. Cast metal production jumped to 338,527 from
298,207 tonnes in the previous year.
On
the marketing front also, Nalco recorded highest ever domestic aluminium metal
sales of 205,797 tonnes compared to 166,650 tonnes in the previous year. Export
metal sale of 132,730 tonnes is also a new record compared to 129,719 tonnes in
the previous year. Higher volumes and improved market conditions have helped
the Company to report record results.
Meanwhile,
the Company has started work on the 2 nd phase expansion programme at an
investment of Rs.40910 millions. This project will raise the bauxite mines
capacity from 4.8 millions tonnes to 6.3 millions tonnes, alumina capacity from
1.575 millions tonnes to 2.1 millions tonnes and aluminium production capacity
from 0.345 millions tonnes to 0.460 millions tonnes.
Nalco on a Record-breaking
|
PRODUCTION |
During 2003-2004 |
During 2004-2005 |
Target for 2005-06 |
|
Bauxite (MT) |
48,16,762* |
48,51,726* |
48,00,000 |
|
Alumina Hydrate (MT) |
15,56,100 |
15,75,500* |
15,75,000 |
|
Aluminium (MT) |
2,98,208 |
3,38,483 |
3,45,000 |
|
Power from CPP (MU) |
5,122.24 |
5,617.26 |
5,800.00 |
Figures with * indicate crossing
of rated capacities
Besides, financial targets of Rs. 43400.3 millions
turnover and Rs. 12440.3 millions net profit have been fixed for 2005-06.
NALCO SIGNS MoU FOR 2005-06
Bhubaneswar, 30.3.2005: National Aluminium Company Ltd. (Nalco),
On behalf of the Ministry, Shri C.D. Arha, Secretary, Dept. of Mines and
on behalf of the Company, Shri C.R. Pradhan, CMD I/c, signed the MoU, in the
presence of senior officials of the Ministry and Nalco.
According to the MoU for 2005-06, Nalco has targeted to produce 15.75
millions tonnes of alumina and 3.45 millions tonnes of aluminium.
Nalco becomes a Zero-debt Company
At
the beginning of 2004-05, Nalco had loans amounting to Rs.6543.9 millions.
However, the Company has been able to repay the entire loan amount with prudent
financial management, coupled with increased production and realization.
It
may be mentioned here that following the equity restructuring in March 1999,
Nalco brought down its paid-up capital from Rs.12886.2 millions to Rs.6413.1
millions and issued 14.5% debentures amounting to Rs.6413.1 millions, which
have been repaid in three installments in the years 2003, 2004 and 2005.
In
fact, Nalco had also earlier achieved the zero-debt status in September 1998,
when the Company had successfully discharged the last foreign currency loan of
20 billion Japanese yen plus interest, which in Indian currency worked out to
Rs.6276.4 millions (principal) and Rs.118.6 millions (interest). The Company
had borrowed a total of $980 million from a consortium of international banks
to finance its initial project costs.
The
repeat achievement of the zero-debt status will favourably reflect on the
Company's bottom line, since there will be no interest burden.
Meanwhile,
the Company has started work on the 2 nd phase expansion at an investment of
Rs.40910 millions. The Company hopes to meet the fund requirement through
internal resources and partly through external borrowings.
S.K. MISRA IS THE NEW DIRECTOR (PRODUCTION), NALCO
Shri
Misra completed his degree in Mining Engineering from
Nalco Pays 20% Interim
Dividend
Bhubaneswar, 23.2.2005: National Aluminium Company Limited (Nalco)
–
The
dividend cheque was handed over to Hon'ble Shri Sis Ram Ola, Union Minister of
Coal and Mines by Shri C.R. Pradhan, CMD I/c, Nalco in
Nalco
is among select profit making PSUs which has been recording consistent
performance in production and profitability. During the nine month period of
the current financial year 2004-2005, the Company has reported record
performance in all areas of its operation.
The
Company has posted cumulative net profit of Rs.8006 millions compared to
Rs.4726 millions in the corresponding period of previous year. The sales
turnover jumped to Rs.31255 millions from the corresponding Rs.22480.8 millions
in the previous period.
Five-Star Export House Status for Nalco
National Aluminium Company Limited (Nalco)-
The
Company has been accorded the prestigious Five-Star Export House status in
accordance with the provision of the Exim Policy by Government of India,
Ministry of Commerce.
It
may be mentioned here that since 1991 Nalco has been recognized as a Star
Trading House for its substantial contributions to export of aluminium metal
and calcined alumina to various overseas markets. Thereafter during 2000,
Nalco’s status was upgraded to Super Star Trading House considering further
growth in exports.
Nalco
has been making rapid progress in the field of alumina and metal exports which
have further gone up after the completion of first phase capacity expansion.
Already
a global player in alumina with a share of about 8 per cent, Nalco has now launched
the 2nd phase expansion to raise the alumina capacity to 2.1 millions tonnes
and metal capacity to 460,000 tonnes at an investment of Rs.40900 millions.
This project will substantially boost the Company’s export business in coming
years.
A.RAY JOINS AS NEW DIRECTOR (P&A), NALCO
After
completing his B.E. (Electrical) in 1970, Shri Ray worked in various
organizations like NTPC and Damodar Valley Corporation. He joined Nalco in 1982
as Dy. Chief Engineer (Power plant) and worked in various capacities. As
Executive Director (S&P), Shri Ray played a key role in the operation and
maintenance as well as successful capacity expansion of the Smelter and Power
plants.
Shri C.R. Pradhan takes over as CMD I/c of NALCO
Bhubaneswar,1.2.2005: Shri C.R. Pradhan, Director (Projects &
Technical) of National Aluminium Company Ltd (Nalco) has been assigned with the
additional charge of CMD of the Company following the superannuation of Shri G.
Upadhyaya, Director (P&A) and CMD I/c.
After
completion of B.Sc. Engineering (Electrical) from REC,
NALCO Q3 NET UP 83.17% 20% INTERIM DIVIDEND
National Aluminium Company Limited (NALCO),
According
to the unaudited financial results taken on record at the Company's board
meeting held here today, the sales turnover during the 3rd quarter has recorded
an increase of 52.48% to Rs. 11719.5 millions over the corresponding period
figure of Rs. 7685.7 millions. This is the highest ever quarterly growth in
profit and sales turnover in the history of Nalco.
Thus,
the cumulative net profit of the Company during the 9-months period works out
to Rs. 8006 millions compared to Rs. 4726 millions in the previous year.
Similarly, the cumulative sales turnover has increased to Rs. 31255.6 millions
from Rs. 22980.8 millions during the same period of previous year. Meanwhile,
the Company has also declared an interim dividend of 20% amounting to Rs.
1288.6 millions.
The
Company has also reported improved production of alumina and aluminium during
the 9-month period. Alumina production increased to 1.160 millions tonnes from
1.136 millions tonnes and aluminium metal production jumped to 0.248 millions
tonnes from 0.223 millions tonnes in the previous period.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.37 |
|
|
1 |
Rs.80.43 |
|
Euro |
1 |
Rs.54.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|