Dear Members,
 
 The Directors have the pleasure in presenting the 30th Annual Report of
 your Company together with the audited Statement of Accounts and
 Auditors'' Report thereon for the financial year 2010-11.
 
 Performance Highlights
 
 Production
 
 You will be pleased to know that during the year, the Aluminium Smelter
 and Captive Power Plant of your 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
 review, as can be seen from the following:
 
 Product                Unit     Capacity      2010-11     2009-10
 
 Bauxite           MT in lakh      48.00         48.24       48.79
 
 Alumina Hydrate   MT in lakh      15.75         15.56       15.92
 
 Aluminium         MT in lakh       4.60          4.44        4.31
 
 Electricity (Net)      MU         1,200 MW      6,608       6,293
 
 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
 
 You will be pleased to know that your 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 your Company
 during the year under report was 438,952 MT, which is the highest-ever
 surpassing the previous best of 435,979 MT 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, your
 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, your 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 your 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
 
 You will be pleased to know that your Company has earned a net profit
 (after tax) of Rs.1,069 crore for the year, as compared to Rs.814 crore
 for the previous year, recording an increase of 31%. Sales revenue
 during the year at Rs.5,959 crore was 18% higher as compared to the
 previous year. The operating cost was higher by Rs.399 crore, 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.159 crore during the
 year.  The depreciation was higher by Rs.103 crore due to commissioning
 of one more captive power unit during the year and provision for
 impairment.
 
 The summarized financial results as compared to previous year are
 furnished below:
 
                                                    (Rs. in crore)
 
                                        31.03.2011       31.03.2010
 
 Net Sales                                   5,959            5,055
 
 Other Income                                  459              493
 
 Total Income                                6,418            5,548
 
 Expenses/Operating Cost                     4,471            4,072
 
 Gross Margin                                1,947            1,476
 
 Less: Interests Depreciation                  422              321
 
 Profit Before Tax (PBT)                     1,525            1,155
 
 Provision for Taxes                           456              341
 
 Profit After Tax (PAT)                      1,069              814
 
 Appropriation:
 
 a) General Reserve                            770              630
 
 b) Dividend including Dividend Tax            300              188
 
 Basic and Diluted EPS-
 
 Notannualised(in Rs.)                        4.15             3.16
 
 Split / Sub-division of Shares and Issue of Bonus Shares
 
 Your Directors are happy to inform you that your Company has
 successfully implemented (a) Splitting / Sub-division of face value of
 equity share of Rs.10 each fully paid-up into 2 (two) equity shares of
 f5 each fully paid-up and (b) issue of Bonus shares to the existing
 shareholders of the Company in the proportion of l(one) Bonus share for
 every l(one) existing fully paid-up equity share held (post Split /
 Sub-division) as approved by the shareholders in the Extra-ordinary
 General Meeting held on 05.03.2011.
 
 Dividend and Appropriations
 
 You will be happy to know that the Board of Directors of your Company
 have recommended payment of final dividend @ TO.50 per share on the
 revised/post-split and bonus issue equity share capital of Rs.1288.62
 crore which is 10% on the face value of each equity share of Rs.5, in
 addition to interim dividend of Rs.2.00 per share already paid on
 01.03.2011 on pre-revised/pre-split and bonus issue equity share
 capital of Rs.644.31 crore, which was 20% on the face value of each
 equity share of Rs.10. The final dividend so recommended will be paid
 after approval in the ensuing 30th Annua| General Meeting. A higher
 amount of Rs.300 crore has been appropriated towards dividend and
 dividend tax for the year 2010-11 as against Rs.188 crore for the
 previous year 2009-10.
 
 Your Directors propose to transfer Rs.770 crore to General Reserve
 Account from the profits of the year under report as against Rs.630
 crore transferred in the previous year.
 
 Presidential Directives
 
 Your Company continued to make efforts for recruitment/ promotion of
 SC/ST candidates in line with the Presidential Directives. The
 provisions of the Persons with Disabilities Act, 1995 were complied
 with during the year under review.
 
 As on 31/03/2011, out of total 7,714 employees (including Trainees) on
 your Company''s rolls, there were 1,246 (16.15%) SCs, 1,394 (18.07%)
 STs, 522(6.77%) OBCs and 77(1.00%) Persons with Disabilities. The total
 number of lady employees in your Company stood at 354 as on that date.
 Every third employee in your Company either belongs to SC or ST
 category.
 
 Industrial Relations
 
 Your 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 your 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 your Company''s employees through an
 early wage settlement.
 
 Visit of Parliamentary Committees
 
 Parliamentary Committee on Rajbhasha (3rd Sub-Committee) visited and
 inspected your Company''s Western Regional Office at Mumbai on
 24.09.2010. Standing Committee on Labour visited S&P Complex, Angul on
 22.12.2010. Parliamentary Standing Committee on Industry visited and
 interacted with Directors and Senior Officials of your Company on
 29.06.2011.
 
 Awards & Recognitions
 
 Your Company received the following awards during the year, which
 stands ample testimony for the good work being done by your Company in
 various fields.
 
 1.  EEPC (All India) Star Performer Award for Outstanding Contribution
 to Engineering Exports in Large Enterprise Group.
 
 2.  2010 MM- non-ferrous best performance award in category of large
 integrated production organisation.
 
 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 Category.
 
 Ongoing Expansion Projects
 
 You will be pleased to know that all the segments of the 2d Phase
 Expansion have been commissioned. The facilities commissioned as part
 of 2nd Phase Expansion at the Alumina Refinery are under stabilization.
 
 The present capacity of the various project segments of your Company
 and the capacity after completion of ongoing 2d phase expansion are
 given below:
 
 Project             Capacity         Capacity after  Status
 Segment             Prior to         2nd Phase
                     Expansion        Expansion
 
 (a)  Bauxite        4.8 Mln.         6.3 Mln.        Expansion works
 Mine                TPY                 TPY          completed
 
 (b)  Alumina        1.575              2.1           Commissioned
 Refinery            Mln. TPY          Mln. TPY       in June/July 2011
 
 (c)  Aluminium      0.345             0.46            Commissioned
 Smelter             Mln. TPY          Mln. TPY        in December 2009
 
 (d)  Captive Power  960               1,200           Full capacity
 Plant               MW                MW              achieved in
                                                       August 2010
 
 Upgradation Project: 4th Stream of Alumina Refinery
 
 The upgradation of 4th stream of Alumina Refinery from 0.525 Mln. TPY
 to 0.70 Mln. TPY and that of Bauxite Mines from 6.3 Mln. TPY to 6.825
 Mln. TPY, at an estimated project cost of Rs.409 crore, is scheduled to
 be commissioned by June 2012.  Cumulatively 56.4% of overall physical
 progress has been achieved.
 
 Extension of Mining Lease
 
 You will be pleased to know that with vigorous efforts, your Company
 could successfully comply with various requirements for getting the
 Panchpatmali Bauxite Mining Lease (South Block) extended for further
 period of 20 years i.e. upto 19.07.2029.
 
 Wind Energy
 
 You will be pleased to know that as a part of diversification plans,
 your Company is setting up a Rs.274 crore Wind Power Project in Andhra
 Pradesh with a capacity of 50.4 MW. Under the project, 24 wind turbine
 generators, each of 2.1 MW capacity are being set up.
 
 Utkal-E Coal Block
 
 You will be pleased to know that Union Coal Ministry has granted its
 prior approval for mining lease of Utkal-E Coal Block in Angul. It has
 estimated reserves of around 70 million tonnes and shall cater to the
 requirement of 9th t0 12th Unit of CPP.  The project is estimated to
 cost Rs.280 crore. The project cost may undergo a change due to
 revision in cost of rehabilitation and re-settlement colony and cost of
 acquisition of private land based on recommendation of RPDAC, Angul.
 The coal block is likely to become operational by June, 2012.
 
 Upgradation of Smelter Potline
 
 The upgradation of Smelter Potline from 180 KA to 220 KA at an
 estimated investment of Rs.1500 crore for both Smelter and Captive
 Power Plant is under implementation. On completion of the project,
 expected during 2017, the capacity of the Smelter Plant would go up by
 1 lakh MT per year.
 
 MoU Performance
 
 Your 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 your Company.
 
 Implementation of Official Language Policy
 
 Your 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 from 14.09.2010 to 20.09.2010.  Likewise, Hindi Week was
 celebrated both at S&P Complex, Angul and M&R Complex, Damanjodi.
 
 - 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 your Company was also
 published in Hindi regularly, besides in English andOdia.
 
 Your Company organised Hindi Salahakar Samiti meeting of Ministry of
 Mines, Govt, of India at Gangtok from 8th t0 10th September, 2010.
 Members of Parliament and other officials nominated by the Ministry of
 Mines participated in this meeting.  Deputy Director (Implementation),
 Eastern Region, Kolkata inspected your Company''s Eastern Regional
 Office at Kolkata on 28.12.2010.
 
 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 your Company.
 
 Vigilance
 
 The vigilance set-up of the Company has three wings: Mines & Refinery
 Complex, Damanjodi, Smelter & Power Complex, Angul and Corporate
 Office, Bhubaneswar headed by Chief Vigilance Officer. Due importance
 was given to preventive vigilance. The Purchase and Contract Manuals of
 your Company are being continuously revised, duly incorporating CVC
 guidelines and other systemic improvement/suggestions. To improve
 transparency, your Company has implemented ERP and IT in the form of
 e-tendering, e-payments etc. For creating awareness amongst the
 employees, Vigilance Awareness Period-2010 was observed from 25th
 October to 1st November 2010 in all the units of your Company. Six
 training programmes on vigilance awareness were conducted at different
 units of the organization for sensitizing employees on the evil effects
 of corruption.
 
 Conservation of Energy, Technology Absorption and Foreign Exchange
 Earning and Outgo
 
 The particulars relating to Conservation of Energy, Technology
 Absorption, Foreign Exchange Earnings and Outgo, as required to be
 disclosed under Section 217(l)(e) of the Companies Act, 1956 read with
 the Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988 are given in the Annexure-I to this report.
 
 Particulars of Employees
 
 During the year under review, no employee of your Company was in
 receipt of remuneration of Rs.5 lakh per month or Rs.60 lakh per annum
 prescribed under the provisions of Section 217(2A) of the Companies
 Act, 1956, read with the Companies (Particulars of Employees) Rules,
 1975.
 
 Listing in Stock Exchanges & Payment of Listing Fees
 
 Your Company''s equity shares of face value of Rs.10 each continued to
 be listed on Bombay Stock Exchange Limited, Mumbai (BSE) and National
 Stock Exchange of India Limited (NSE)till 16.03.2011.Consequent upon
 split/sub-division of face value of each equity share of Rs.10 into 2
 equity shares of Rs. 5 each and issue of 1:1 bonus shares of Rs. 5 each
 as on the Record Date 16.03.2011, 128,86,19,256 bonus shares of« each
 were also listed and trading permission was given by both BSE and NSE
 w.e.f. 25.03.2011.  The listing fees for listing of both pre-bonus and
 post-bonus equity shares have been paid to these Stock Exchanges.
 
 Payment of Annual Custodial Fees to Depositories
 
 Your Company has established direct electronic connectivity with the
 Depositories, NSDL and CDSL, for providing the facility of holding the
 Company''s shares in electronic mode. Annual custodial fees for the year
 2010-11 have been paid to both the Depositories.
 
 Directors''Responsibility Statement
 
 Pursuant to provisions of Section 217(2AA) of the Companies Act, 1956,
 Directors of your Company hereby confirm:
 
 - that in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures;
 
 - that the directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company at the end of the financial year and of the profit of
 the Company for that period;
 
 - that the directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of Companies Act, 1956 for safeguarding the assets of the
 Company and for preventing and detecting fraud and other
 irregularities; and
 
 - that the directors have prepared the annual accounts on a going
 concern basis.
 
 Corporate Governance
 
 A report on Corporate Governance is placed at Annexure-ll to this
 report. As in previous years, as part of good Corporate Governance
 practice, Secretarial Audit was voluntarily carried out by your Company
 for the year 2010-11 and the report of the Secretarial Auditors is
 placed at Annexure-lll to this report.
 
 Management Discussion & Analysis Report
 
 Management Discussion & Analysis report is placed at Annexure-IV to
 this report.
 
 C& AG Comments
 
 Comments of the Comptroller and Auditor General of India (C & AG) on
 the Accounts of your Company for the year ended March 31, 2011 are
 enclosed.
 
 Public Deposits
 
 Your Company has not accepted or renewed any public deposits during the
 year 2010-11.
 
 Auditors
 
 The following auditing firms were continued/appointed to be the
 auditors of your Company for the financial year 2010-11:
 
 a) Statutory Auditors : M/s P.A & Associates and
 
 M/sC.K.Prusty& Associates
 
 b) Cost Auditors : M/s S. C. Mohanty & Associates
 
 Directors
 
 Following were the changes that took place in the Board of Directors of
 your Company since the last report:
 
 Appointment:
 
 - Shri B L Bagra, Director(Finance) assumed the additional charge of
 the post of CMD of your Company in addition to his present assignment
 of Director (Finance) w.e.f.  27.02.2011, consequent upon placement of
 Shri A K Srivastava,CMD under suspension.
 
 - Shri S K Srivastava, IAS, Addl. Secretary, Ministry of Mines, Govt,
 of India was appointed as Government Nominee Director with effect from
 30.08.2010.
 
 - Shri Ved Kumar Jain was appointed as an Independent Director with
 effect from 21.03.2011.
 
 - Shri P C Sharma, former Chief Secretary, Govt, of Assam was appointed
 as an Independent Director with effect from 21.03.2011.
 
 Cessation:
 
 - The tenure of 3 Independent Directors viz. Dr. A Sahay, Shri S S
 Sohoni and Shri K S Raju ended on 26.09.2010 on completion of their
 term of appointment.
 
 - The tenure of 5 Independent Directors viz. Shri S B Mishra, Shri N R
 Mohanty, Dr. Jyoti Mukhopadhyaya, Shri R K Sharma and Maj.Gen.(Retd.)
 Samay Ram ended on 23.04.2011 on completion of their term of
 appointment.
 
 Your Directors wish to place on record their appreciation for the
 valuable services rendered by Dr. A Sahay, Shri S S Sohoni, Shri K S
 Raju, Shri S B Mishra, Shri N R Mohanty, Dr. jyoti Mukhopadhyaya, Shri
 R K Sharma and Maj. Gen. (Retd.) Samay Ram during their tenure on the
 Board of your Company.
 
 Acknowledgement
 
 Your Directors gratefully acknowledge the support, co- operation, and
 guidance received from various Ministries of the Government of India,
 particularly Ministries of Mines, Coal and Environment & Forest. Your
 Directors also express their sincere thanks to the Government of
 Odisha, Indian Railways, Mahanadi Coalfields and other Government
 agencies.
 
 Your Directors also place on record their appreciation for the
 shareholders, various Banks and Financial Institutions for the
 confidence reposed by them in your Company. Your Directors also place
 on record their appreciation for the continued co- operation and
 support received from various customers in India and abroad, vendors,
 solicitors and business associates during the year and look forward to
 continuance of this mutually supportive relationship in future as well.
 Your Directors also acknowledge the constructive suggestions received
 from the Government and the Statutory and Cost Auditors from time to
 time.
 
 Your Directors also wish to place on record their appreciation for the
 hard work and dedicated contribution made by the employees of your
 Company at all levels to ensure that the Company continues to grow and
 excel year after year.
 
                                                  For and on behalf of
                                                    Board of Directors
 
                                                        (B.L.Bagra)
 
 Place: Bhubaneswar                                    Chairman-cum-
 
 Date: 25th August, 2011                         Managing Director l/c.