The Directors have great pleasure in presenting the 31st Annual 
 Report of your Company together with the audited statement of accounts 
 and Auditor''s Report thereon for the financial year 2011-12.
 
 PERFORMANCE HIGHLIGHTS
 
 You will be pleased to know that your Company has achieved the highest
 ever performance in Bauxite transportation of 50.03 lakh MT (against
 Previous best of 48.79 lakh MT achieved in 2009-2010). alumina hydrate
 production of 16.87 lakh MT, ( against the previous best of 15.92 lakh
 MT achieved in 2009-10) and Special Grade Hydrate(SGH) production of
 9.851 MT(surpassing the previous best of B,649 MT achieved in FY
 2009-10).  Smelter achieved capacity utilisation of 90% with cast metal
 production of 4.13 lakh MT against the previous best of 4.441 lakh MT
 achieved in the year 2010-11. The production of metal was lower mainly
 due to coal constraints and low metal price in later part of the year.
 CPP achieved ''Net Power Generation'' of 6,200 MU(at 66.25% PLF) against
 the previous best of 6.608 MU achieved in 2010-11. Power generation
 was reduced due to coal constraints.
 
 Production achieved during the year under report vis-a-vis the previous
 year is given below:
 
                   Unit             2011-12         2010-11
 
 Bauxite           MT             50,02,626       48,23,908
 
 Alumina Hydrate   MT             16,87,000       15,56,000
 
 Aluminium         MT              4,13,089        4,43,597
 
 Electricity(Net)  MU                 6,200           6,608
 
 You will be Pleased to know that your Company could save an operating
 cost of about RS. 95 crore during the year under report by getting a
 favourable order from OERC to register Steam and Power Plant at
 Domanjodi as a co-generation unit there by complying the requirements
 as an obligated entity under the OERC(Renewable and co-generation
 purchase obligation and its compliance)regulation 2010. Under the
 regulation your Company has to consume 5% power from renewable and
 co-generation sources, out of its total consumption from captive
 sources. The 5% consumption from renewable and co-generation sources
 comprises of 3.7% from co- generation sources, 1.2% from Non-Solar
 sources and 0.1% from Solar sources. The reference to co-generation RPO
 compliance for coming years will be met from our own co-generation
 plant. However, despite above, full RPO could not be met and Rs.  9.01
 crore had to the spent on purchase of RECs. With commissioning of Wind
 Power Plant in current year, such expenditure is expected to the
 reduced.
 
 Sales Performance
 
 You will be Pleased to know that as a proactive approach for providing
 customized products to our customers, your Company has introduced
 Chequered Sheets, a new product in its sales mix during the year Your
 Company achieved total sale of 4,15,916 MT Aluminium metal during the
 year as against sale of 4,38,952 MT metal achieved in preceding year.
 This included sales of 21,552 MT of Rolled Products.which was the
 highest ever surpassing the previous best of 20,152 MT achieved during
 the Previous year.
 
 The Domestic sale of Chemicals(Alumina/Hydrate/Special Alumina/Special
 Hydrate)was 49,844 Mt, the highest ever surpassing the previous best of
 42,062 MT achieved in 2010-11.The Domestic Chemicals sale included
 10,052 MT of specially alumina, the highest ever surpassing the
 previous best of B,376 MT achieved during 2009-10 and 13,725 MT of
 alumina hydrate, also the highest ever surpassing the previous best of
 12,623 MT achieved during 2009-10.
 
 The sales break-up is as follows:
 
                       Unit      2011-12       2010-11
 Export
 Alumina               MT        792,552       639,855
 
 
 Aluminium             MT         98,399        98,200
 including
 
 Rolled Products
 
 Domestic
  
 Alumina & Hydrate     MT        49,844         42,082
 
 Zeolite-A             MT           409          3,854
 
 Aluminium             MT       317,517        340,752
 
 Total Metal Sale      MT       415,916        438,952
 
 Total Chemical Sales  MT       842,396        681,919
 
 Finance 
 
 Despite increase in the income from RS. 6,410 crore during 2010-11 to
 Rs.7,154 crore during 2011-12, the pr0fit after tax has gone down from
 RS. 1,069 crore (2010-11) to Rs 850 crore (2011-12) due to increase in
 operating cost. The operating expenses were higher by about RS. 1,003
 crore during the year over the previous year mainly due to increase in
 prices of various input materials, impact of non-executive pay revision
 and increase in volume of production in Refinery. The details of
 financial performance is given below: (Rs. in crore)
 
                       2011-12      2010-11
 
 Income                  7,154        6,410
 
 Expenses                5,958        4,888
 
 Profit Before Tax(PBT)  1,198        1,524
 
 Tax                       348          455
 
 Profit After Tax          850        1,069 
 
 Dividend and Appropriations
 
 You will be happy to know that your Company paid an Interim Divided for
 the year 2011-12 @ Rs. 0.90 per share(18%) in March, 2012. The Board of
 Directors of your Company have recommended payment of final dividend @
 Rs. 0.10 per share (2%) making aggregate of RS. 1.00 per share(20%)for
 the year 2011-12 as against Rs. 2.50 per share (RS.2 per pre-split and
 bonus share of RS. 10 each (10%) as interim dividend and Rs.o.50 per
 post split and bonus share of Rs. 5 each (10%) as final dividend) paid
 for the previous year 2010-11. Year Directors have recommended a lower
 rate of dividend keeping in view the falling profit margins due to slow
 down of global economy affecting industrial growth and also keeping in
 view the requirement of funds for the growth projects under
 consideration by your Company. The final dividend will be paid after
 your approval in the Annual General Meeting.
 
 Your Directors propose to transfer RS. 550 crore to General Reserve
 Account from the profit of the year 2011-12 as against Rs. 770 crore
 transferred in the previous year.
 
 Presidential Directives
 
 As per Presidential Directives, steps were taken for recruitment of
 SC/ST candidates. Your Company also complied with the provisions of the
 Persons with Disabilities Act,1995.  As on 31.03.2012, out of the total
 7,705 employees (including trainees) on the rolls of the your Company,
 there were 1,240 (16.09%) SCs. 1.378(18.88%) STs, 776(10.07%)OBCS and
 77 (1.00%) Persons with Disabilities. Every third employee in your
 Company either belongs to SC or ST category. The total number of lady
 employees in the organization as on that date was 355.
 
 Industrial Relations
 
 Human excellence and cordial industrial relations continued to remain
 the crore strengths of your Company during the year under report. The
 strong ethos of collective excellence was balstered during the year
 with the signing of 5th Long Term Wage Settlement (LTWS) for
 non-executive employees of your Company covering a period of 10 years
 effective from 01.01.2007, in a peaceful and cordial atmosphere.
 Several measures have been included in the 5th LTWS for controlling
 labour costs in your Company in the long run, results of which are
 expected to be realized in due course.  The healthy industrial
 relations climate during the year helped your Company in sailing
 through tough times on production front.
 
 CORPORATE SOCIAL RESPONSIBILITY
 
 As a responsible corporate citizen, NALCO has been allocating 2% of its
 net profit for social sector activities - 1% through periphery
 Development(PD) Programme regulated by the State Government and 15
 through the company''s CSR arm NALCO Foundation,which was set up in July
 2010, following the CSR Guidelines for CPSEs issued by the Department
 of Public Enterprises, Govt. of India. For the 2011-2012 financial
 year, altogether Rs. 21.38 crore was allotted for the purpose. As per
 policy, the unspent amount is not losable at the end of the year.
 
 During the fiscal, 1,109 camps were organized through four Mobile
 Health Units (MHUs) under the PD Programme, treating 50,938 patients
 with free medicines. NALCO Foundation also started a new MHU, in
 collaboration with Wockhardt Foundation in Damanjodi sector from
 mid-February 2012.
 
 Altogether 76 projects were completed at Angul during 2011-12 at a
 total cost of Rs. 2.88 crore. out of these, 42 projects were executed
 directly by the Company and rest 34 through district administration.
 
 NALCO Foundation started 27 projects, mostly in the tribal dominated
 Darnarjodi sector, at a financial contribution of Rs 8.24 crore. During
 the fiscal, 10 projects have been completed.
 
 The emphasis was on providing drinking water through dug wells as well
 tube wells, providing medical facilities through operation of Mobile
 Health Units, imparting livelihood trainings, providing appliances to
 physically challenged persons, renovation of infrastructure facilities
 etc.
 
 Visit of Parliamentary Committees:
 
 The following Parliamentary Committees visited your Company and held
 discussions with Company management during the year under report:
 
 - Department Related Parliamentary Committee on Industries on 30th
 June,2011
 
 - Third Sud-Committee of the Committee of Parliament on Official
 Language on 30th September,2011.
 
 - Hindi Salahkar Samiti of Ministry of Mines visited Bengaluru Office
 on 17th October,2011.
 
 - Parliamentary Consultative Committee of Ministry of Mines discussed
 matters related to your Company on 18th November, 2011.
 
 - Parliamentary Committee on Welfare of Scheduled Castes & Scheduled
 Tribes on 20th January,2012.
 
 - Parliamentary standing Committee on Coal & Steel on 25th
 February,2012.
 
 Awards & Recognitions:
 
 Your Director are pleased to inform you that your Company received the
 following awards in various field during the year 2011-12:
 
 - PSE Excellence Award 2011, in the Maharatna and Navratna category,
 for instituted by the Department of Public Enterprises, Govt,. of India
 and India Chamber of Commerce.
 
 - Top Export Award of CAPEXIL, for outstanding export performance
 during 2010-11.
 
 - Best Exporters'' Award from Directorate of Export Promotion and
 Marketing, Govt. of Odisha for outstanding export of Alumina and
 Aluminium for the year 2009-10.
 
 - Prestigious National Energy Conservation Award for the year 2011 from
 Ministry of Power for smelter plant at Angul.
 
 - Three prestigious awards: CEO with HR Orientation, HR Leadership
 Award and Organization with Innovative HR Practices at the Global HR
 Excellence Awards ceremony during World HRD congress-2012.
 
 EXPANDED CAPACITIES 2nd Phase Expansion Project
 
 You will be pleased to know that with the commissioning of 4th Stream
 of Alumina Refinery during the year, the 2nd Phase Expansion Project of
 your Company syands completed. The details of earlier capacity and
 present capacity after 2nd Phase expansion of your Company are as
 under:
 
 Sl.  Project Segment   Capacity before2nd    Capacity after 2nd
 No.
 
 1    Bauxite Mine      48 Lakh TPY           63 Lakh TPY
 
 2    Alumina Refinery  15.75 Lakh TPY        21 Lakh TPY
 
 3    Aluminium smelter 3.45 Lakh TPY         4.6 Lakh TPY 
 
 4    Captive Power     960 MW                1,200MW 
      Plant
 
 ONGOING EXPANSION PROJECTS
 
 1. Alumina Refinery- Upgradation Project
 
 Capacity Upgradation of 4th Stream of Alumina Refinery from 5.25 lakh
 TPY to 7.0 lakh TPY and that of Bauxite Mines from 6.3 Million TPY to
 6.825 Million TPY at an estimated project cost of Rs. 409 crore is in
 Progress. Overall physical progress upto 81% has been achieved. The
 project is scheduled to be commissioned during the course of current
 year.
 
 2.Utkal- E Coal Block
 
 Utkal- E Coal Block project at an estimated cost of Rs. 337.61 crore
 (at May,2011 price level) is in progress. it has a mine-able reserve of
 around 67.49 mln tons.
 
 Almost all statutory clearances have been received. Activities for
 acquisition of Govt. as well private land and construction of
 rehabilitation colony are at hand.
 
 3.3rd Phase Expansion Project
 
 The Company has initiated activities for 3rd Phase brown field
 expansion at existing facilities at Angul and Damanjodi, in Odisha at
 an estimated investment Rs. 7.500 crore.
 
 The status of projects is as under:
 
 a) Amperage increase at Smelter
 
 Smelter pot lines operating at 180 KA for the last two and half
 decades, have been taken to enhance current to 220 KA, at an outlay of
 RS 900 crore and the capacity of plant will be enhanced by 1.07 lakh
 MT, to 5.67 lakh MTPA. preparation of Detailed Project Report and
 Environmental Impact Assessment (EIA) study is in Progress.
 
 b) 500MW power plant at CPP
 
 The proposed 500MW power plant at CPP will meet the Power requirement
 for the technology up gradation of Smelter Pot line besides export of
 surplus power to State grid. Project cost is estimated at Rs. 2,522
 crore(August 2009 price level).
 
 c) 5th stream at Alumina Refinery
 
 Your Company has plans to add one more stream to existing four streams
 in Alumina Refinery. The capacity of the stream will be in million
 tones per annum and investment will be Rs. 4,000 crore approximately.
 Activities for preparation or DPR are in hand.
 
       
 4.50 MW Wind Power Plant
 
 In line with the vision of the Company and in pursuit of endeavor to
 harness the potential in renewable energy sources,your Board has
 approved the investment of RS. 274 crore for setting up 50 MW Wind
 Power Plant in Andhra Pradesh. Manufacturing of all equipments has been
 completed. have reached the site. Stage-II Forest Clearance for the
 Project is being pursued with Ministry of Environment & Forests for
 commissioning of the plant.
 
 5. Nuclear Power Plant in Joint Venture
 
 Your Company has entered into joint venture with Nuclear Power
 Corporation of India Ltd. for setting up of 1400MW nuclear power plant
 in Gujarat at an estimated cost of Rs. 11.459 crore. Your Company''s
 present equity share is 26% and the same would be increased to 49%
 after approval of the Govt. of India.
 
 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 2011-12, based on achievement of financial
 results as well other parameters laid down by the evaluation of
 performance of the Company.
 
 IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY
 
 Your Company continued to pay special attention for propagation of
 Hindi in the Company you will be pleased to know that 27 Employees of
 your Company passed ''Praveen'' Examination and 49 employees passed
 ''Pragya'' Examination held in the month of may and November, 2011 under
 Hindi Teaching Scheme of Govt, of India. Your Company observed Hindi
 Day, Hindi week and Hindi fortnight and organised Hindi Kavi Sammelan.
 Several competitions were organised amongst Hindi speaking and
 Non-Hindi speaking employees during Hindi Week celebrations at all the
 units of the Company. There Hindi Workshops were organised during the
 year for those employees who have acquired working knowledge in Hindi
 after passing Praveen and Pragya Examinations. The Hindi version of
 NALCO Website has been launched as A PART OF YOUR Company''s efforts for
 promoting Rajbhasha. Official correspondences were also made in Hindi
 during the year under report as per the norms of the Official Language
 Implementation Policy of Govt. of India .THE PARICHAYA. Quarterly
 House Joumal of your Company was published in Hindi regularly 
 
 VIGILANCE
 
 The Vigilance set up exists in the Company at its three sites namely
 Smelter & Power Complex , Mines & Refinery Complex and Corporate
 Office. Broadly, vigilance department activities in the Company consist
 of carrying out various checks/insections such as surprise checks,
 sample tests, regular insections, CTE type intensive examination of
 works / contracts etc. under preventive vigilance drive. Vigilance
 Department often acts as an aid and assistance to the management in
 detecting corruption that may creep in innocuously during various
 transactions in the organization.To reduce chances of corruption, the
 Company has been using technology in the vigilance advice, the Purchase
 Manual of the Company was revised during the year under report.
 
 For creating awareness amidst employees, Vigilance Awareness Week was
 celebrated from 31.10.2011 to 05.11.2011 at all the units and regional
 offices of your Company and Programmes like seminars, elocution
 competitions among school and college students were organized in Hindi
 Oriya and English languages. 14 training programmes were organized at
 different locations of the organization for sensitizing employees on
 the evil effects of corruption.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNING AND OUTGO.
 
 The particular relating to Conservation of energy, Technology
 Absorption, Foreign Exchange Earnings and out go, as required to be
 disclosed under Section 217(1Xe) 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-1 to this report.
 
 PARTICULAR OF EMPLOYEES
 
 None of the employees of your Company was in receipt of remuneration
 of RS. 5 lakh per month or Rs. 60 lakh per annum as prescribed under
 Section 217(2A) of the Companies Act, 1956, read with the Companies(
 Particulars of employees)Rules, 1975 as amended, during the year under
 report.
 
 LISTING IN STOCK EXCHANGE & PAYMENT OF LISTING FEES
 
 The equity shares of your Company contained to be listed on Bombay
 Stock Exchange Limited, Mumbai (BSE) and National Stock Exchange of
 India Limited(NSE). The listing fee the year 2011-12 was paid to these
 Stock Exchanges on time.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to the 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 departure
 
 - that the directors have selected such accounting policies and applied
 them consistently and made judgments and estimates that are reasonable
 and prudent so as give a true and fair view of the state of affairs of
 the Company at the end 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 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 as per SEBI guidelines.  Stock
 Exchange listing requirements and DPE guidelines is placed at Annexure
 -II to this report. Like previous years, as Company voluntarily got the
 Secretarial Audit carried out for the year 2011-12 also and report of
 the Secretarial Auditors is placed at Annexure-III to this report.
 
 MANAGEMENT DISCUSSION & ANAYSIS 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) under
 Section 619(4) of the Companies Act, 1956 on the Accounts of your
 Company for the year ended March 31, 2012 are enclosed.
 
 PUBLIC DEPOSITS
 
 Your company neither accepted nor renewed any public deposits during
 the year 2011-12.
 
 AUDITORS
 
 The following auditing firms were appointed to be the auditors of your
 Company for the financial year 2011-12:
 
 
 a) Statutory Auditors : M/s C.K.Prustry & Associations and
                         M/s Agasti & Associates.
 
 b) Cost Auditors      : M/s Dhal & Co.
 
 c)Secretarial Auditor : M/s Sunita Mohanty & Associates.
 
 d) Internal Auditor   : M/s B.N. Mishra & Co.,
                         M/s MKPS & Associates and
                         M/s Patra & Co.
 
 DIRECTORS
 
 The following changes took place in the Board of Directors of your
 Company since the last report:
 
 Appointment:
 
 
 - Shri B L Bagra, Director(Finance) continued to held the addition
 change of the post of CMD of your Company in addition to his present
 assignment w.e.f 27.02.2011.
 
 - Shri G P Joshi and Shri S S Khurana were appointed as Independent
 Directors with effect from 15.09.2011.
 
 - Shri S S Mahapatra was appointed as Director (Production) With effect
 from 01.10.2011.
 
 - Shri Madhukar Gupta and Shri G H Amin were appointed as Independent
 Directors with effect from 27.12.2011.
 
 - Shri N R Mohanty was appointed as Director(Projects & Technical) with
 effect from 01.02.2012.
 
 _ Shri Arun Kumar, Joint Secretary, Ministry of Mines, Govt. of India
 was appointed as a Part Time Official Director w.e.f 30.04.2012.
 
 - Shri Qaiser Shamim and Shri Sanjiv Batra were appointed as
 Independent Directors with effect from 10.07.2012.
 
 Cessation:
 
 - Shri S K Nayak, Joint Secretary, Ministry of Mines, Govt. of India
 ceased to be a Part-time Official Director on the Board of our Company
 w.e.f.05.09.2011
 
 - Shri A K Sharma,Director(Projects & Technical)ceased to be a Director
 of the Company w.e.f.31.01.2012 on attaining the age of superannuation.
 - Shri S K Srivastava, Spl. Secretary, Ministry of Mines, Govt. of
 India ceased to be a part -time Official Director on the Board of your
 Company w.e.f.31.05.2012.
 
 your Directors wish to place record their appreciation for the valuable
 services rendered by Shri S K Nayak, Shri A K Sharma, Shri P K Padhi
 and Shri S K Srivastava during their tenure on the Board of your
 Company.
 
 ACKNOWLEDGEMENT
 
 Your Directors gratefully acknowledge the valuable guidance and
 co-Operation received from the Ministry of Mines and other Ministries /
 Departments of the Government of Odisha, Mahanadi Coal fields. Indian
 Railways and other Government agencies.
 
 Your Directors express their sincere thanks to the Comptroller and
 
 Auditor General of India, the Principal Director of Commercial audit &
 Ex-Officio Member, Audit Board, Statutory Auditors. Cost Auditors,
 Secretarial Auditors, Internal Auditors, Bankers and JV Partners for the
 co-operation extended and services provided by them.
 
 Your Directors also place on record their gratitude to the shareholders
 of the Company for the confidence reposed by them in the Management of
 the Company.
 
 Your Directors place on record their appreciation for the continued
 support and co-operation received from various domestic and
 international customers, vendors, solicitors, business associates, Trade
 Unions and the Officers'' Associations during the year under report and
 also look forward for continuance of such mutually supportive
 relationship in future as well.
 
 Last but not the least, year Directors express their appreciation to
 the nurturing effects put in by all the officers and employees at
 various levels and their support over the years which has enabled your
 Company to achieve the present position and hope that with such
 continued support, your Company will grow from strength to strength and
 would be able to expand its area of activities, scale greater heights of
 success and contribute positively for better stakeholders'' delight.
 
 
                            For and on behalf of Board of Directors
 
 
                                                        (B.L.Bagra)
 
                                      Chairman-cum-Managing Director