MIRA
INFORM REPORT
|
Report Date : |
07.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
NATIONAL ALUMINIUM COMPANY LIMITED |
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Registered
Office : |
Nalco Bhawan, Plot No. – P/1, Nayapalli, Bhubaneshwar – 751013, Orissa |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
07.01.1981 |
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Com. Reg. No.: |
03-920 |
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Capital
Investment / Paid-up Capital : |
Rs.12886.200 Millions |
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CIN No.: [Company Identification
No.] |
L27203OR1981GOI000920 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
BBNN00046E BBNN00015B |
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PAN No.: [Permanent
Account No.] |
AAACN7449M |
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Legal Form : |
Public Limited Liability of the Company. The company shares are listed on stock exchange. |
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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. |
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No. of Employees
: |
7426 (Executives-1828, Supervisory-892, Skilled/Highly skilled-3561, Unskilled/
Semiskilled-1145) (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (76) |
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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 450000000 |
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Status : |
Excellent |
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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 of the company is good. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered
Office/Corporate Office : |
Nalco Bhawan, Plot No. – P/1, Nayapalli, Bhubaneshwar – 751013, |
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Tel. No.: |
91-674-2442301–08 / 2301988-99 / 231989 |
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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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Regional Offices : |
Eastern Region 1st Floor, JK Millenium Centre, 46-D, Tel. No.: 91-33-22870115 / 22877363 Fax No.: 91-33-22810393 Western Region 215.T.V. Industrial Estate, S.K. Ahire Marg, Worli, Mumbai - 400025 Tel. No.: 91-22-24939288/24939289 Fax No.: 91-22-24950500 E-Mail : nalcobom@mtnl.net.in Northern Region Core 4, 5th Floor, Tel. No.: 91-11-22010792 / 97 / 22010801 Fax No.: 91-11-22010800 / 22010790 E-Mail : nsundaray@nalcoindia.co.in
Southern Region 3E, Tel. No.: 91-44-24344162/24349157 Fax No.: 91-44-24343495 E-Mail : rmchn@satyam.net.in Reshma Complex, 3rd Floor, Tel. No.: 91-80-5587298 / 5587086 Fax No.: 91-80-5586151 E-Mail : mktblr@satyam.net.in
Paradip V Point, Bada Padia, Paradip - 754142 Tel. No.: 91-6722-221084 |
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Plants : |
Port Facilities
Opposite Tel. No. 91-891-2561433
/ 2561435 Fax No. 91-891-2561598 E-mail : gmport@nalcoindia.co.in Smelter Plant
Nalco Nagar – 759145, Dist. Angul, Orissa Tel. No. 91-6764-220110 Fax No. 91-6764-220738
/ 220206 Captive Power Plant
District Angul – 759112, Orissa Tel. No. 91-6764-220158 Fax No. 91-6764-220646 Telex : 06306-205
CPP IN Mines and Refinery Damanjodi
Mines and Refinery Complex, Damanjodi –
763008, District Koraput, Orissa Tel. No. 91-6853-254515
/ 254550 Fax No. 91-6855-254361
/ 254214 |
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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 · Balmer Lawrie
and Company Limited, WH, Tel. 91-33-24495299 · Container
Corporation of Tel. 91-80-28451327/2078/2083 · · Nalco Bhawan,
Plot No. P/1, Nayapalli, Bhubaneshwar – 751 013, Orissa Tel. 91-674-2301988 To
2301999 |
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Sales and
Marketing Office : |
No. 37, 1st Floor, VVP Nagar, ( |
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Tel.
No.: |
91-674-2301988/2301989 |
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Branch Office : |
3rd Floor, Reshma Complex, |
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Tel. No.: |
91-80-25550390
/ 25587086 / 298
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Fax No.: |
91-80-25586151
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E-mail : |
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Stock Yards : |
Located at
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DIRECTORS
As on : 31.03.2011
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Name : |
Mr. C. Venkataramana |
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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. 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. G. K. Behera |
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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. P. K. Padhi |
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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. B. L. Bagra |
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Designation : |
Director |
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Name : |
Mr. P.K. Parida |
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Designation : |
Executive Director |
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Name : |
Mr. B. N. Swain |
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Designation : |
Executive Director |
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Name : |
Mr. A. Sapra |
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Designation : |
Executive Director |
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Name : |
Mr. S.C Das |
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Designation : |
Executive Director |
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Name : |
Mr. P K Mohanty |
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Designation : |
Executive Director |
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Name : |
Mr. P K Mohapatra |
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Designation : |
Executive Director |
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Name : |
Mr. K S Sreedhara |
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Designation : |
Executive Director |
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Name : |
Mr. Bijoy Dash |
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Designation : |
Executive Director |
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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 / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
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|
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|
2245998540 |
87.15 |
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|
2245998540 |
87.15 |
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Total shareholding of Promoter and Promoter Group (A) |
2245998540 |
87.15 |
|
(B) Public Shareholding |
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|
|
|
|
|
|
184600 |
0.01 |
|
|
23444343 |
0.91 |
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|
109364616 |
4.24 |
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|
110304661 |
4.28 |
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|
243298220 |
9.44 |
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|
|
|
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|
65281493 |
2.53 |
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|
|
|
|
|
17223611 |
0.67 |
|
|
3091239 |
0.12 |
|
|
2345409 |
0.09 |
|
|
747230 |
0.03 |
|
|
118500 |
-- |
|
|
400 |
-- |
|
|
579031 |
0.02 |
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|
753876 |
0.03 |
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|
46400 |
-- |
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|
500 |
-- |
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|
99472 |
-- |
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|
87941752 |
3.41 |
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Total Public shareholding (B) |
331239972 |
12.85 |
|
Total (A)+(B) |
2577238512 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts have been issued |
-- |
-- |
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|
|
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Total (A)+(B)+(C) |
2577238512 |
100.00 |
(1) Indian
Central Government / State Government(s)
Individual shareholders holding nominal
share capital up to Rs.0.100 Million
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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Products : |
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PRODUCTION STATUS (As On 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Bauxite |
MT |
4800000 |
4823908 |
|
Detergent Grade Zeolite |
MT |
10000 |
3328 |
|
Aluminium Hydrate |
MT |
1575000 |
1556000 |
|
Calcined Alumina |
MT |
1575000 |
1516.100 |
|
Special Grade Alumina and hydrate |
MT |
20600 |
14491 |
|
Aluminium Metal |
MT |
460000 |
443597 |
|
Rolled Products |
MT |
45000 |
21352 |
|
Electricity |
MW |
1200MW |
6608 (MU) |
Notes
·
Installed capacities are as per project report and
licensed capacity is not given as licensing is not applicable
·
Installed capacity of electricity has increased by
120 MW on commissioning of 10th unit of captive power plant
·
Current year’s production of power includes 6 MU
(Previous year 205 MU) from trial operation.
GENERAL INFORMATION
|
No. of Employees
: |
7426 (Executives-1828, Supervisory-892, Skilled/Highly skilled-3561,
Unskilled/ Semiskilled-1145) (Approximately) |
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Bankers : |
State Bank of |
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Facilities : |
-- |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
SRB and Associates Chartered Accountants |
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Address : |
5th Floor, |
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Name : |
Niran and Company Cost Accountants, |
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Address : |
440, Sahid Nagar, |
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Membership : |
Confederation of Indian Industry |
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Subsidiaries : |
International Aluminium Products Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6000000000 |
Equity Shares |
Rs. 5/- each |
Rs.30000.000 Millions |
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|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2577238512 |
Equity Shares |
Rs. 5/- each |
Rs.12886.200 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
12886.200 |
6443.100 |
6443.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
98759.900 |
97512.700 |
91255.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
111646.100 |
103955.800 |
97698.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
148.800 |
86.100 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
148.800 |
86.100 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
6934.600 |
6605.900 |
6213.500 |
|
|
|
|
|
|
|
|
TOTAL |
118729.500 |
110647.800 |
103911.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
54935.300 |
48363.100 |
40315.400 |
|
|
Fixed Assets awaiting disposal |
0.000 |
0.000 |
9.900 |
|
|
Capital work-in-progress |
17435.300 |
22434.000 |
28671.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
13316.700 |
9867.500 |
8959.300 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
10584.700
|
9449.200
|
8419.000
|
|
|
Sundry Debtors |
1124.000
|
1817.800
|
265.000
|
|
|
Cash & Bank Balances |
37952.300
|
31523.500
|
28690.400
|
|
|
Other Current Assets |
1638.400
|
1450.000
|
1753.500
|
|
|
Loans & Advances |
9152.300
|
7855.900
|
6160.200
|
|
Total
Current Assets |
60451.700
|
52096.400
|
45288.100
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
2920.400
|
2528.400
|
3061.400
|
|
|
Sundry Creditors |
20624.200
|
15885.000
|
12972.600
|
|
|
Provisions |
3864.900
|
3699.800
|
3298.400
|
|
Total
Current Liabilities |
27409.500
|
22113.200
|
19332.400
|
|
|
Net Current Assets |
33042.200
|
29983.200
|
25955.700
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
118729.500 |
110647.800 |
103911.600 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
59589.800 |
50556.600 |
50945.200 |
|
|
|
Finished goods internally consumed / capitalized |
55.700 |
242.000 |
264.400 |
|
|
|
Other Income |
4529.500 |
4687.500 |
4958.400 |
|
|
|
TOTAL (A) |
64175.000 |
55486.100 |
56168.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Decretion / (Accretion) to stock of finished / intermediary products /
works in process |
99.100 |
216.300 |
(853.500) |
|
|
|
Raw Materials |
7661.200 |
7823.000 |
6963.100 |
|
|
|
Power and Fuel |
17726.400 |
16011.400 |
13115.500 |
|
|
|
Repairs and Maintenance |
4147.000 |
2963.700 |
2505.200 |
|
|
|
Other manufacturing expenses |
1776.100 |
2107.800 |
1754.300 |
|
|
|
Employee’s Remuneration and Benefits |
9890.200 |
8436.000 |
7710.600 |
|
|
|
Administrative Expenses |
1210.900 |
1152.900 |
1033.300 |
|
|
|
Other Expenses |
1380.700 |
1275.500 |
1231.000 |
|
|
|
Selling and Distribution Expenses |
721.700 |
890.400 |
843.300 |
|
|
|
Provisions |
3.400 |
(39.100) |
(32.300) |
|
|
|
Prior Period Adjustments |
10.200 |
(117.100) |
(138.100) |
|
|
|
TOTAL (B) |
44626.900 |
40720.800 |
34132.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
19548.100 |
14765.300 |
22035.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
0.500 |
22.800 |
39.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
19547.600 |
14742.500 |
21996.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4300.600 |
3193.900 |
2724.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
15247.000 |
11548.600 |
19271.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4554.000 |
3406.400 |
6548.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
10693.000 |
8142.200 |
12722.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
66.000 |
107.900 |
153.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
7700.000 |
6300.000 |
9000.000 |
|
|
|
Dividend |
1288.600 |
966.500 |
2255.100 |
|
|
|
Proposed final dividend |
1288.600 |
644.300 |
966.500 |
|
|
|
Tax on Dividend |
425.600 |
273.800 |
547.500 |
|
|
BALANCE CARRIED
TO THE B/S |
56.700 |
66.000 |
107.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
21086.600 |
20741.200 |
20963.000 |
|
|
|
Other Income |
5.300 |
9.200 |
10.200 |
|
|
TOTAL EARNINGS |
21091.900 |
20750.400 |
20973.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3126.900 |
2426.400 |
2426.400 |
|
|
|
Stores & Spares |
246.300 |
605.200 |
605.200 |
|
|
|
Capital Goods |
790.600 |
3150.600 |
3150.600 |
|
|
TOTAL IMPORTS |
4163.800 |
6182.200 |
6182.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.15 |
3.16 |
19.75 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
17625.300 |
16139.300 |
|
Total Expenditure |
12327.100 |
14613.600 |
|
PBIDT (Excl OI) |
5298.200 |
1525.700 |
|
Other Income |
1265.700 |
1320.800 |
|
Operating Profit |
6563.900 |
2846.500 |
|
Interest |
0.000 |
0.000 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
6563.900 |
2846.500 |
|
Depreciation |
1019.400 |
1179.400 |
|
Profit Before Tax |
5544.500 |
1667.100 |
|
Tax |
1776.100 |
273.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
3768.400 |
1393.400 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
3768.400 |
1393.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
16.66 |
14.67 |
22.65 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.55 |
22.84 |
37.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.21 |
11.49 |
22.51 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13 |
0.11 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.24 |
0.21 |
0.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.20 |
2.35 |
2.34 |
LOCAL AGENCY FURTHER INFORMATION
PRODUCTION The Aluminium Smelter and Captive Power Plant of the Company recorded the highest-ever production since inception. The level of capacity utilization at Mines (100.5%), Refinery (98.8%), Smelter (96.4%) and CPP (91.7%) respectively was achieved at a satisfactory level for the year under
Drop in Alumina Hydrate production, during the year, was due to shut down of plant for pending maintenance jobs and attending hook-up jobs under expansion project . Bauxite transportation was in line with the demand of Alumina Refinery.
SALES The will be pleased to know that The Company achieved the highest-ever domestic metal sale of 340,752 MT which was 17.9% higher than the last year, surpassing the previous record of 289,032 MT achieved in 2009-10. Total metal sale of The Company during the year under report was 438,952 MT, which is the highest-ever surpassing the previous best of 435,979MT achieved during the previous year. This has been possible due to rise in demand for aluminium and improvement in Company''s share in the domestic market. Besides, The Company also widened its international customer base for metal by adding new overseas clients during the year. In the value-added segment, the Company sold 20,126 MT of Rolled Products, which was the highest ever surpassing the previous highest sale of 15,092 MT achieved in 2009-10. During the year, The Company exported 4,614 MT of billets, after a gap of almost a decade. Higher production and sale of rolled products and billets resulted in increased share of value-added products in The Company''s operations. The Alumina/Hydrate sale of 681,917 MT during the year under report was 8.4% less than the previous year's sale of 744,069 MT, due to higher consumption in Smelter Plant for producing more aluminium metal, thereby resulting in less availability of alumina for sale compared to last year. The domestic sale of Alumina and Special Grade Alumina at 16,411 MT and 7,635 MT respectively was the highest-ever recorded. In addition, domestic sale of total Chemicals (Alumina/Hydrate/Special Grade Alumina/Special Grade Hydrate/Zeolite) of 45,916 MT achieved during the year was the highest-ever surpassing the previous highest of 44,420 MT achieved in 2009-10.
FINANCE They will be pleased to know that The Company has earned a net profit (after tax) of Rs.106.900 millions for the year, s compared to Rs.8140.000 millions for the previous year, recording an increase of 31%. Sales revenue during the year at Rs.59590.000 millions was 18% higher as compared to the previous year. The operating cost was higher by Rs.3990.000 millions, an increase of 10% over the previous year, due to increase in prices of coal, fuel oil and provisioning for wage revision. The profit before tax for the year was higher because of higher sales realization as compared to the previous production and sale of metal. The results would have been still better, but for the adverse impact of exchange rate of rupee on sales, which made a dent of Rs.1590.000 millions during the year. The depreciation was higher by Rs.1030.000 millions due to commissioning of one more captive power unit during the year and provision for impairment.
INDUSTRIAL RELATIONS The Company continued to maintain healthy human relationships and the industrial relations situation remained cordial. HR interventions like participative management across various levels in the organization, openness and transparency in dealing with employees in general and Unions in particular have helped in sustaining harmonious work environment. The recognized Unions have played constructive role as partners in the growth of production, productivity and all-round performance of The Company. The collective bargaining process with the Recognized Unions on the issue of wage revision of non-executive employees remained very constructive and joint efforts are being made to further boost the morale of The Company's employees through an early wage settlement. AWARDS AND RECOGNITIONS The Company received the following awards during the year, which stands ample testimony for the good work being done by The Company in various fields. 1. EEPC (All India 2. 2010 MM- non-ferrous best performance award in category of large integrated production organization. 3. 1st prize in aluminium sector at the National Energy Conservation Awards - 2010, instituted by the Ministry of Power, Govt, of India 4. DPE Best Listed CPSE Award for its excellent performance in significant value addition to its shareholders. 5. CSR Award for Best Practices under the ''Global HR Excellence'' category at the World HR Congress. 6. 1st prize for Reclamation and Rehabilitation award under the aegis of IBM, Bhubaneswar Region was bagged by Nalco''sPanchpatmali Bauxite Mines. 7. EEPC (Eastern Region''s Gold Trophy, as Top Exporter in the Large Enterprise
MOU PERFORMANCE The Company is likely to be rated ''Very Good'' under Memorandum of Understanding (MoU), signed by the Company with the Government of India for the Financial Year 2010-11 based on achievement of financial results and other parameters laid down by the Department of Public Enterprises (DPE), Govt, of India for evaluation of The Company. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY The Company continued its efforts to further propagate use of Hindi in the Company. In that direction, activities undertaken during the year are as follows: - Hindi Day and Hindi Week were observed at Corporate Office, Bhubaneswar - Many competitions were organised amongst Hindi speaking and Non-Hindi speaking employees during Hindi Week. - Three Hindi Workshops were organised during the year for the employees who have acquired working knowledge in Hindi after passing Praveen and Pragya examinations. - Correspondences in Hindi were also made as per the norms of the Official Language Implementation Policy of Govt, of India - ''The Parichaya'', quarterly newsletter of The Company was also published in Hindi regularly, besides in English andOdia. The Company organised Hindi Salahakar Samiti meeting of Ministry of Mines, Govt, of India Two meetings of Town Official Language Implementation Committee, Angul were held in June and December, 2010. Similarly, quarterly Official Language Implementation Committee meetings were held in Corporate as well as site offices of the Company.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENTS
Economies of different countries started recovering after
unprecedented sharp fall inFY'09. The recovery has been impressive but burdened
with some element of uncertainty. As a result of FY'09 meltdown most of the
producers in Aluminium Industry resorted to strategies in response to the situation
faced such as curtailing production, closures, etc. However, some of these
producers considering the improved situation have subsequently re-started these
facilities.
ALUMINA AND CHEMICALS
During the year 2009, the world consumption of Alumina was
73.859 million MT against the world production of 74.309 million MT thus
showing a surplus of 0.45 million MT. The world Alumina production and
consumption declined by approx. 5.9 % and 5.8% respectively during 2009 as
compared to 2008.
In 2009, the spot price of alumina averaged around $249 a
tonne. Prices showed signs of recovery in Q1, 2010 to an average of $340 a
tonne, which reflected the improved outlook for aluminium. The refinery
curtailments during the first half of the year 2009 reduced availability
thereby providing necessary impetus for alumina prices to rise from rock bottom
level of $180/tonne. The recovery in aluminium prices triggering smelter
restarts saw alumina prices recover to above $300/tonne level. Stronger demand
mainly from smelterre starts and an unprecedented level of curtailments in
refining capacity helped the market to return to balance during the course of
the year. Delayed restarts and fresh commissioning of refineries helped in the
balancing act of fundamentals.
Alumina demand and supply are expected to be balanced in
medium term. Increase in bauxite and freight costs, as well as energy cost is
likely to support the alumina price in medium-term
ALUMINIUM
During the year 2009, the world consumption of primary
Aluminium was 34.341 million MT against world supply of 37.781 million MT,
showing a surplus of 3.440 million
Aluminium price averaged at $ 1664.8/T in 2009 which is 34%
lower than the average price in 2008, primarily because of weaker demand for
aluminium in major consuming countries. Lower consumption and a relatively
weaker response from global aluminium production resulted in stocks build-up
which stood at historical highs of 4.63 milliontonnes at LME by the end of
2009. Analysts expect production to remain around current levels for most of
2010.
OUTLOOK
DOMESTIC
MARKET OUTLOOK
The
Indian economy showed strong resilience in FY'09 in withstanding the economic
crisis and staged recovery largely on the back of stimulus packages by the
Government.
The current demand-supply situation for aluminium is largely balanced with consumption in line with existing production plus imports and a relatively small volume of exports. However, the aluminium sector faces a significant concern of medium-term over-capacity due to projects pursued by the three major players in the country. Capacity expansion through planned projects would almost treble production to 4.4 million tonnes by 2013. Considering that all aluminium projects would begin commercial production with expanded capacity as envisaged, there could be at least two million tonnes of additional capacity for exports by 2013. India's per capita consumption of aluminium is about 1.3 kg as against about 30kg in the developed world for which the industry need to explore new application areas and untapped demand potential thereby setting up preference for aluminium in the future.
INTERNATIONAL OUTLOOK ALUMINIUM
Global aluminium consumption is expected to grow annually around 5% during the next decade, supported by continued urbanisation, industrialisation and economic development particularly in developing economies.
Industry experts forecast that 2010 would witness considerable growth of the aluminium market generated by rising demand from the automotive and packaging sectors. Aluminium consumption is likely to grow by 12% in 2010 over 2009 because of such growth and of low base effect.
ALUMINA
For 2010 as a whole, alumina prices are forecast to average $325 a tonne, which is around 30 per cent higher than the average for 2009. In the short term, prices are expected to be supported by higher assumed world economic activity and thus, increased demand for aluminium.
Over the medium term, spot alumina prices are projected to ease, as production increases following the commissioning of new refining capacity.
AS PER WEBSITE DETAILS :
BUSINESS DESCRIPTION
National
Aluminium Company Limited (Nalco) is an India-based company. The Company is an
integrated aluminium complex, encompassing bauxite mining, alumina refining,
aluminium smelting and casting, power generation, rail and port operations. The
Companys products include bauxite, alumina hydrate, aluminium, ingots, sows,
billets, wirerods, alloy wire rods, calcined alumina, zeolite-A and cast
strips. The Company also generates electricity. The Company operates in three
segments: chemicals, aluminium and electricity. Chemicals include calcined,
alumina, alumina hydrate and other related products. Aluminium includes
aluminum ingots, wire rods, billets, strips, rolled and other related products.
The Company covers countries, including South East Asia, Far East, Indian
Sub-continent, the Gulf,
Bajrang Lal Bagra -
Executive Chairman of the Board, Managing Director, Director – Finance -
Chairman
Shri.
Bajrang Lal Bagra is Executive Chairman of the Board, Managing Director,
Director - Finance of National Aluminium Co Ltd. He is a Post Graduate in
Commerce and a fellow member of ICAI. He joined NALCO as Director (Finance) on
28.02.2007. Before joining NALCO , he was Director (Finance) of RITES, Railways
PSU for over six years. Shri Bagra’s experience spans overthree decades of
working in Transport, Mining, Power and Seeds Sectors, He was CFO of Botswswana
Railways (BR) for five years before being elevated to Director’s position in
RITES. He was key member of change management team, which turned around BR
through comprehensive restructuring including financial and organizational
restructure and staff rationalization. He has experince of international
business and credited with developing privatization and concession division in
RITES when the company was in putting up joint ventures and bagging concessions
of Railway system in
Bajrang Lal Bagra
- Executive Chairman of the Board, Managing
- Managing Director
Shri.
Bajrang Lal Bagra is Executive Chairman of the Board, Managing Director,
Director - Finance of National Aluminium Co Ltd. He is a Post Graduate in
Commerce and a fellow member of ICAI. He joined NALCO as Director (Finance) on
28.02.2007. Before joining NALCO , he was Director (Finance) of RITES, Railways
PSU for over six years. Shri Bagras experience spans overthree decades of working
in Transport, Mining, Power and Seeds Sectors, He was CFO of Botswswana
Railways (BR) for five years before being elevated to Directors position in
RITES. He was key member of change management team, which turned around BR
through comprehensive restructuring including financial and organizational
restructure and staff rationalization. He has experience of international
business and credited with developing privatization and concession division in
RITES when the company was in putting up joint ventures and bagging concessions
of Railway system in
PRESS RELEASE
27 STATE PSUS MAKING PROFITS, SAYS MINISTER
Bureaucracy
Today (
29
December 2011
This was stated by state
minister for finance and public enterprises Prafulla Chnadra Ghadai.
"The department of
public enterprises has initiated a programme to increase profitability of firms
that are already making profits. Presently, 27 out of 33 working state PSUs are
earning profits while the remaining six are incurring losses. Our department is
also focused on wiping out losses of such units and is committed to convert
them into profitable firms," Ghadai told newspersons here.
The department has taken
several steps to improve the organizational efficiency of the state PSUs like
inculcating high standards of professionalism among the employees and
appointing independent directors, the minister said.
Besides, efforts were
underway for restructuring of two state PSUs- Idcol Ferrochrome Alloys Ltd
(IFAL) and Idcol Kalinga Iron Works Limited (IKIWL).
For Idcol Kalinga Iron
Works, we are thinking of forging joint venture either with a Central or state
PSU, Ghadai informed.
Similarly, the state was
planning to revamp IFAL through infusion of fresh capital investment, he added.
Two Central PSUs- Steel
Authority of India Limited (SAIL) and National Aluminium Company (Nalco) have
evinced interest in picking up stakes in IKIWL and IFAl. It may be noted that
the 13th Finance Commission had recommended the state government to draw up a
road map for closure of non-working PSUs by March 2011 which the state
government had not done. The Comptroller and Auditor General of India (CAG)
observed there are 32 working PSUs in the state with the other 51 PSUs being
non-working.
The state government's
investment in most of the PSUs run by it has come a cropper. While the
government had invested Rs 21903.700 millions on statutory corporations, rural
banks, joint stock companies and cooperatives by the end of 2010-11, the
returns from this investment were negligible on absolute terms.
The latest report on
state finances for the year ended March 31, 2011 says the average return on
this investment was a meagre 8.44 per cent in the last five years. The return
obtained from these PSUs in 2010-11 was Rs 1015.800 millions, meaning only 4.64
per cent of the committed investment.
Ironically, two
statutory corporations, 77 government companies and 29 cooperative societies
where the government had invested 94 per cent of its total investments did not
return any dividend to the government. The government had pumped in Rs 4907.000
millions on two statutory corporations, Rs 12425.400 millions on 77 government
companies and Rs 3209.800 millions on 29 cooperative societies. Published by HT
Syndication with permission from Bureaucracy Today.
NALCO leads the gainer list of 'BSE
100' space
Accord
Fintech (
29
December 2011
NALCO MAY FACE ACTION ON FAILING TO MEET DEADLINE
SET BY SPCB
22
December 2011
Kolkata: A consortium of
three state-run public sector mineral and metals mining firms led by the
aluminum major National Aluminium Company Limited (NALCO) is aiming for an
overseas exploration rights in Afghanistan.
The consortium,
including Hindustan Copper Limited (HCL) and Mineral Exploration Corporation
Limited, has submitted its Expression of Interest (EoI) against a tender
bearing last date of bid submission is March 16, 2012.
The latest bid for
exploratory rights in overseas will be first such attempt in non-ferrous sector
after a successful overseas stake by the Steel Authority of India Limited
(SAIL)-led consortium wining iron ore exploration rights in Afghanistan's
Hajigak region.
It should be noted that
the consortium has written to the central mines ministry urging for ministerial
coordination on the matter. An ecstatic HCL Chairman and Managing Director
Shakeel Ahmed, speaking on the development, said that they will take the step
at the right moment and fine tuning of the consortium will be worked upon
later.
This is for the first
time that
NALCO
CONSORTIUM EYEING GOLD, COPPER RESERVE IN AFGHANISTHAN
09
December 2011
Kolkata: In order to
meet its investment need for ongoing mine development projects, India-based
copper producing company Hindustan Copper Limited (HCL) has plans to raise Rs 2
billion through external commercial borrowings (ECB).
The ECB would be raised
in fiscal year 2013-14 when a funding gap between its cash reserves and capex
need are expected to emerge. The state-owned company expects to have a funding
gap of Rs 2.07 billion in fiscal 2014. HCL is planning to make investments
worth Rs 46 billion in the next five years. The investment will be made to
boost the production capacity of its copper ore from the current 3.4 million
tonnes to 12 million tonnes.
"In 2013-14, we
could have a small funding gap of Rs207 crore. Now this gap may go up or down
depending upon the movement of copper price at London Metal Exchange (LME) that
directly influences our earnings. If that gap exists, we have two routes:
either ECB or Nalco (as an equity partner)", Shakeel Ahmed, chairman &
managing director of HCL, was quoted by the Daily News and Analysis as saying.
He further said that the company will take a decision regarding the ECB after
the end of the current financial year (2011-12).
HCL (BOM:513599) had
earlier issued tenders for engineering, procurement and construction contracts
for expanding its Surda, Khetri, Chapri-Sideshwar and Malanjkhand mines and
also to reopen the Kenadadih and Rakha mines. Earlier, HCL had entered into an
agreement with National Aluminium Co Limited (Nalco) to explore options for
getting equity participation for its mine development projects.
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. 52.78 |
|
|
1 |
Rs. 67.46 |
|
Euro |
1 |
Rs. 81.78 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--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 |
|
76 |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.