1.  Balance Sheet:
 
 1.1 Share capital:
 
 As per approval in the Extra Ordinary General Meeting of the company
 held on 5th March 2011, the following changes in the share capital has
 taken place during the year:
 
 i) Increase in authorized share capital of the Company from Rs. 1,300
 crore to Rs. 3,000 crore.
 
 ii) Splitting up of shares of the Company from the face value of Rs.
 10/- each into two equity shares of Rs. 5/- each.
 
 iii) Issue of Bonus share to the existing share holders of the Company
 in the proportion of l(one) Bonus Share for every 1 (one) existing
 fully paid up equity share held.
 
 iv) Provision in Articles of Association for offer of shares to the
 employees of the Company under employee stock option plan (ESOP).
 
 With the above change, the authorized share capital of the Company is
 6,00,00,00,000 equity share of Rs. 5/- each and paid up equity share
 capital after the bonus issue is Rs. 1288,61,92,560/- comprising of
 257,72,38,512 equity share of Rs. 5/- each.
 
 The Employee Stock Option Plan is yet to be finalized.
 
 Consequent upon splitting of shares and issue of bonus shares, EPS for
 the year is Rs. 4.15 and the previous Financial Year figure is restated
 toRs.3.16 (earlierRs. 12.64).
 
 1.2 Land & Building:
 
 a) Freehold land includes land acquired through Government of Odisha,
 for which relevant title deeds have been executed except for land
 measuring Rs. 17.25 acres. Process of conversion of freehold land for
 Industrial use has been taken-up with Revenue Authority.
 
 b) Leasehold land includes 1256.84 acres of land in respect of which
 lease deed are yet to be executed. However, the Company has been
 permitted by the Government to carry on its operations on the said
 land.
 
 c) Registration formalities in respect of office space for 6,459 Sq.ft
 purchased from Kolkata Municipal Development Authority, valuing Rs.
 5.50 Crore in Kolkata is under process.
 
 1.3 NPV and related payments.
 
 The company has received demand of Rs. 196.46 crore towards NPV, being
 the present value of expenditure to be incurred by forest authorities
 in future on forest land leased to the company, and related payments at
 the time of renewal of lease. A sum of Rs. 104.68 crore has been paid
 on this account and is being amortized over a period of 20 years from
 the date of payment or due date of renewal which ever is earlier on the
 basis of probable use. A sum of Rs. 46.23 crore has been paid under
 protest against the part lease surrendered in terms of Para 29 of Mines
 Concession Rules 1960 under direction of Central Empowered Committee
 (constituted by Supreme Court of India) under deposits (current
 assets). The balance unpaid sum of Rs. 46.23 crore has been shown as
 contingent liability.
 
 1.4 In order to compensate substantially land affected persons (SAPs)
 at Angul Sector in lieu of employment, the Company has offered a cash
 assistance package ranging from Rs. 2.50 lakhs to Rs. 15.00 lakhs per
 person depending upon the quantum of land, based on recommendation of
 Rehabilitation Advisory Committee (RAC), constituted by Government of
 Odisha for the said purpose. Compensation paid/payable to such SAPs as
 on 31.03.2011 is Rs. 7.69 crore.
 
 1.5 58 nos of EPCG licences have been obtained between the period from
 18.10.2006 to 21.12.2010 for 2nd phase of expansion on payment of
 concessional import duty. The value of concession availed by paying
 duty at lower rate amounts to Rs. 220.48 crore, on the stipulation that
 the export obligation to the extent of (i) 50% of the duty saved has to
 be fulfilled over a block period of 1* to 6* year and (ii) 50% of the
 duty saved over a period of 7th and 8th year, commencing from the date
 of issue of authorization.
 
 Besides, there is specific export obligation against EPCG license
 obtained by Rolled Product Unit at angul established earlier as a 100%
 Export Oriented Unit (EOU) which was debonded w.e.f. 15.05.2007, as one
 time option to exit from 100% EOU Scheme to EPCG Scheme. The value of
 concession availed by paying duty at lower rate amounts to Rs. 27.83
 crore, on the stipulation that the export obligation to the extent of
 (i) 50% of the duty saved has to be fulfilled over a block period of 1*
 to 6* year and (ii) 50% of the duty saved over a period of 7th and 8th
 year, commencing from the date of EPCG license.
 
 It is expected that the export obligation over the block period of 1*
 to 6* year will be fully met out of increased export sales based on
 additional capacity from expansion plant and expected better market
 realization during 2011-12.
 
 1.6 The Company has availed Bank Guarantees, Letters of Credit
 facilities, secured against stock and book debts from State Bank of
 India, HDFC Bank and ICICI Bank.
 
 1.7 Contingent Liabilities not provided for:(Rs.in crore)
 
                                                As at          As at
 
                                       31st March 2011  31st March 2010
 
 a) Estimated amount of contracts to 
 be executed on capital account
 (net of advances and L/Cs opened)            806.16         905.73
 
 b) Letter of Credit Guarantees and 
 counter guarantees                           153.94         238.78
 
 c) Claims against the Company not 
 acknowledged as debts:
 
 i) Sales Tax                                 456.67         442.74
 
 ii) Excise Duty                              294.56         253.55
 
 iii) Customs Duty                              0.68           3.66
 
 iv) Claims of contractors, suppliers 
 & others                                     153.42         122.90
 
 v) Land acquisition and interest thereon      46.50          78.00
 
 vi) Unrealized bank guarantees due to 
 court injunctions                              0.57           2.55
 
 vii) Income Tax & Wealth Tax                 276.50         231.35
 
 viii) Entry Tax and Road Tax                  78.20          69.72
 
 ix) Employee State Insurance                   0.32           0.32
 
 x) Provident Fund Commissioner                 0.05           0.05
 
 xi) Water charges                                 -           2.23
 
 xii) Royalty on bauxite and interest thereon  15.48          15.48
 
 xiii) NPV and related expenses under mining 
 lease                                         59.82         144.00
 
 TOTAL                                      1,382.77       1,366.55
 
 1.9 Investment in Joint Venture:
 
 The company has entered in to a joint venture with IDCO (A Govt, of
 Odisha Undertaking) under the name and style Angul Aluminium Park
 Pvt.Ltd. registered on 30.07.2010 under the Companies Act, 1956 in the
 share holding pattern between NALCO and IDCO in the ratio of 49.5% and
 50.5% respectively. As on date the company has paid Rs. 0.99 crore
 towards equity contribution and Rs. 0.16 crore to meet the preliminary
 expenses of the Joint Venture. The payment towards equity contribution
 has been shown under the head ''investments''. The shares are yet to be
 allotted.
 
 2.  PROFIT AND LOSS ACCOUNT:
 
 2.1 Depreciation was charged in respect of main Plant and Machinery and
 related Factory Buildings and Storage godowns etc., at the rate of 5
 per cent up to 31st March 1994, based on estimated useful life of assets
 being 20 years without retention of 5 per cent residual value. The
 useful life of these assets has been revised to 18 years to bring it at
 par with the life of Continuous process plant as envisaged in
 Schedule XIV to Companies Act, 1956. Such change in life of assets has
 been considered from 1.4.93 i.e. from the year of introduction of
 Continuous process plant in Schedule XIV to Companies Act, 1956.
 Depreciation rates on all such assets have been recomputed based on
 guidelines issued under Circular No.14/93 dated, 20.12.93 by Department
 of Company Affairs, by allocating the unamortized value over the
 remaining life after retention of 5 per cent residual value except for
 assets already written off fully.
 
 2.2 The NPV and related payments to Govt, authorities is amortized over
 a period of 20 years from the date of payment or due date of renewal
 which ever is earlier on the basis of probable use. Excess amount
 amortized up to last year Rs. 8.34 crore has been written back.
 
 2.3 Due to change in operating procedure after ERP implementation,
 freight and Entry Tax paid on alumina is loaded to cost of materials
 and charged to P&L Account through material consumptions expenses
 (internal consumption of alumina). In the last year accounts as per
 legacy practice freight and Entry Tax paid on alumina amounting to Rs.
 60.60 crore was accounted as a separate item (freight inwards) under
 the head other manufacturing expenses. Due to change in procedure, in
 the current year the corresponding value is zero.
 
 2.4 Liability on account of pay revision of non-executives w.e.f.
 1.1.2007 has been calculated provisionally. Considering the development
 in the process of wage negotiation till date (which is yet to be
 concluded), the total liability for non-executives, so accounted, works
 out to Rs. 395 crore as on 31.03.2011 (during the year additional
 amount provided Rs. 128 crore).
 
 2.5 Electricity power required for execution of project activity for
 expansion at all units of the company has been met from captive power
 plant.
 
 2.6 Liabilities in respect of employees benefit as per AS-15 (Revised
 2005) has been provided on the basis of Actuarial valuation.
 
 3.  IMPAIREMENT PROVISION:
 
 3.1 In case of SGA (Special Grade Alumina) plant under chemical
 segment, impairment loss of Rs. 41.31 crore, comprising of book value
 of plant and machinery and corresponding plant building has been
 recognized, as its recoverable amount from discounted future cash flow,
 has been assessed to be less than its carrying amount due to economic
 non-viability and increased input prices.
 
 4.  CSR (CORPORATE SOCIAL RESPONSIBILITY) EXPENSES:
 
 4.1 Apart from peripheral development expenses contributed @ 1% of net
 profit, another 1% of net profit of the Company for the year 2009-10
 amounting to Rs. 8.14 crore has been provided as CSR liability for the
 year 2010-11. Expenditure from the additional contribution will be
 regulated through a separate trust named as NALCO FOUNDATION.
 
 5.  SIGNIFICANT ADDITIONS/MODIFICATIONS:
 
 5.1 The company has adopted ERP system of business process since last
 year. A few supporting modules such as (i) Sales and Distribution (ii)
 Quality Management (iii) Human Resource Management, not implemented
 last year has been implemented in the current year.  There is no
 significant change in accounting practices due to implementation of
 these modules as because all changes were taken care of during
 implementation of Finance (Fl) and Materials Management (MM) module
 implemented last year.
 
 6.  RELATED PARTY DISCLOSURES:
 
 6.1 As per AS-18 on Related Party Disclosures issued by the Institute
 of Chartered Accountants of India, the names of the related parties
 
 i) whole time Directrrs: 
 
 a) ShriAK.Srivastava
 
 b) Shri B.L. Bagra
 
 c) Shri Joy Varghese
 
 d) ShriAK.Sharma
 
 e) Shri P.K. Padhi
 
 f) Shri Ansuman Das
 
 ii) Part time Official Directors: (Nominee of Govt, of India)
 
 a) Shri Vijay Kumar (Ceased to be director from 01.08.2010)
 
 b) Shri S.K.Nayak, IAS
 
 c) Shri S.K. Srivastava, IAS (joined on 30.08.2010).
 
 iii) Part time non-official Directors:
 
 a) Dr. A Sahay (Ceased to be director from 27.9.2010)
 
 b) Shri S.S. Sohoni, IAS (Retired) (Ceased to be director from
 27.9.2010)
 
 c) Shri K.S. Raju (Ceased to be director from 27.9.2010)
 
 d) Shri S.B.Mishra, IAS (Retired)
 
 e) Shri N.R. Mohanty
 
 f) Dr.JyotiMukhopadhyay 
 
 g)ShriR.K.Sharma
 
 h)Maj. Gen. (Retired) Samay Ram
 
 i) ShriPCSharma (joined on 21.3.2011)
 
 j)   Shri Ved Kumar Jain                    (joined on 21.3.2011)
 
 Note: Only sitting fee is payable to part time non-official Directors.
 
 6.2 Related party transactions:
 
 Remuneration and loans to whole time directors are disclosed in Note
 No.l of Additional information forming part of accounts.
 
 7.  SEGMENT REPORTING:
 
 7.5 Segment report of elertricity does not include electricity
 co-generated at Refinery Division, as it is an integral part of steam
 generation
 
 8.  Previous year''s figures have been regrouped / rearranged wherever
 necessary to make them comparable.