you are here:

National Aluminium Company Ltd.


Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE139A01034 | SECTOR: Aluminium

BSE Live

Sep 24, 16:00
88.60 -2.40 (-2.64%)
  • Prev. Close


  • Open Price


  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Sep 24, 15:59
88.50 -2.55 (-2.80%)
  • Prev. Close


  • Open Price


  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    88.50 (98602)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Director’s Report

Dear Members,

The Directors have great pleasure in presenting before you the 37th Annual Report of your Company together with the audited financial statements (standalone and consolidated) and Auditors’ Report for the financial year ended 31st March, 2018.


Physical Performance









Alumina Hydrate








Electricity (Net)-CPP




Wind Energy (Gross)




- Bauxite Mines (North-Central Block of Panchpatmali Mines) achieved 100% capacity utilization with transportation of 68.25 lakh MT for second successive year.

The operation of new mine i.e. South Block of Panchpatmali Bauxite Mines started w.e.f. 22.05.2017. Bauxite transportation from the new mine started in the 4th quarter of financial year 2017-18. Transportation from South Block is 2 lakh MT and combined transportation of both the Mines is 70.25 lakh MT, highest ever since inception.

Total Bauxite excavation of 70.84 lakh MT during the year is also highest ever since inception registering a growth of 3.8% over last year.

- Alumina Refinery achieved 100% normative capacity (i.e. 21 lakh MT) with production of 21.06 lakh MT Alumina Hydrate. Calcined Alumina of 21.11 lakh MT during the year is also highest ever since inception registering a growth of 3.9% over last year.

- Steam Generation Plant (SGP) of Alumina Refinery achieved highest ever net power generation of 484 MU registering a growth of 6.9 % over last year. The plant also achieved record ash utilization of 103.5% against 100% achieved last year.

- Aluminium Smelter achieved highest cast metal production of 4.26 lakh MT in last 7 years, registering a growth of 9.8 % over last year.

- CPP achieved ‘Net Power Generation’ of 6,547 MU, registering a growth of 7.9 % over previous year.

- Wind Power: 4 wind power units at different locations of the Country have generated 252 MU against 206 MU generated last year, registering a growth of 22%.



During the financial year 2017-18, your Company registered total Alumina sale of 13,37,416 MT, including export of 12,76,775 MT. This betters the corresponding figures of 12,94,900 MT and 12,43,103 MT respectively achieved during 2016-17.


The company achieved Aluminium metal sales of 4,26,316 MT during 2017-18, which is significantly higher than the sales figures of 3,85,518 MT achieved during 2016-17. This comprises of sales of 3,50,469 MT (an all-time record) in the domestic market and 75,847 MT in the overseas market. This resulted in an all-time low inventory of 1,502 MT at the end of Financial Year 2017-18.

A summary of sales achieved during 2017-18 is tabulated hereunder:



Year ending 31.03.2018

Year ending 31.03.2017











Alumina and Hydrate








Total Metal Sale




Total Chemical Sale




Total domestic metal sales of 3,50,469 MT comprises of 2,73,502 MT effected from Smelter Plant, Angul and 76,967 MT effected from 10 stockyards situated in Baddi, Bangalore, Bhiwandi, Chennai, Delhi, Faridabad, Jaipur, Kolkata, Vadodara and Vizag.


The details of financial performance are given below:

Rs. in crores




Revenue from Operations (Gross)



Other Income



Total Income



Raw materials consumed



Power & Fuel including Coal



Employee benefits expenses



Other expenses



Depreciation & amortization expenses



Total expenses



Profit Before Exceptional items



Add/(Less):Exceptional items [Income/(Exp enditure)]



Profit Before Tax



Tax expenses



Profit After Tax




Global Aluminium industry is entering a new era as major economies of the world are looking to impose trade restrictions/ barriers on imports to their respective nations, which is likely to result in a surge in regional Aluminium premiums. Global Aluminium consumption has increased by 25% over the last 4 years and the trend is likely to continue in the near future. Measures taken for pollution control in China seem to have cut down some of its production and the prices of Aluminium have surged over the last year. The prices in the near term are likely to be supported, as the overall market is expected to be in deficit in 2018.

In the Indian context, the demand for Aluminium remains strong in line with the increased economic activity witnessed in various aluminium consuming sectors like automobiles, construction, power etc. As the overall economy registers robust growth, and infrastructure projects across the country gain momentum, prospects of the Aluminium industry remain positive. Support from the Government in countering the threat of Aluminium imports can help the domestic Aluminium industry in consolidating its position and competitiveness in the market.

Dividend and Appropriations

During the year the Company has paid interim dividend @ Rs.4.70 per equity share amounting in total Rs.908.48 crores. The Board has also recommended a final dividend of Re.1.00 per equity share amounting to Rs.193.29 crores. The total dividend payout for the financial year 2017-18 works out to Rs.1101.77 crores as against Rs.541.22 crores during the previous year. Dividend including the applicable dividend distribution tax works out to a payout of 98.78% of the PAT against 97.44% of previous financial year.

MoU Performance

Based on financial performance and achievement of other parameters laid down, your Company is likely to be rated “Excellent” as per the Memorandum of Understanding (MoU), signed with the Government of India for the financial year 2017-18.

Raw Material Securitisation

- Mining Lease of Panchapatmali Bauxite Mine (Central & North Block) has been extended up to 16.11.2032 from existing 31.03.2020 by Government of Odisha.

- All regulatory clearances for opening of South Block, Panchapatmali Bauxite Mines has been obtained and the South Block Mine opened & operated w.e.f 22.05.2017. Mining lease is valid upto 19.07.2029.

- G-8 grade coal linkage (2 lakh MTPA) was booked through Linkage Auction route in the Trench-III auction from M/s. NCL for Refinery Plant, which is valid for a period of 5 years equivalent to 2.73 lakhs MTA of G-12 & G-13 grade coal and can be further extended to another 5 years. Fuel Supply Agreement for the same was signed on 21st July, 2017.

- The Fuel Supply Agreements for Unit 1 to 8, CPP, Angul (47.16 LMT), Alumina Plant, Damanjodi (5.47 LMT), TG-I to III of SPP, Damanjodi (3.26 LMT) were renewed for another 5 years w.e.f 1st May, 2018. The FSA amendments for renewal were signed on 27th April, 2018 with M/s. MCL. This ensures coal security for another 5 years for 55.89 LMT linkage coal from M/s. MCL.

- The existing Fuel Supply Agreement for TG-IV (1.01 LMT) was renewed for another 5 years w.e.f 23rd Dec., 2016. The FSA amendment was signed with M/s. MCL on 17th Dec., 2016 with M/s. MCL.

- Your Company is also going to participate for additional 2 LMT, G12 grade linkage coal in the Linkage Auction of Trench-IV scheduled in July/August, 2018 for SPP, Damanjodi.

- In addition to above, your Company is participating in the e-auction coal notified by the subsidiaries of CIL and SCCL for the shortfall quantity against the requirements.

- Further, your Company got allocation of Coal mines Utkal D & E from Govt. of India in the year 2016, with a permission to mine 4 million MT per annum to feed existing 2 units of CPP (Unit - 9 & 10) and 2 new proposed units (Unit - 11 & 12) for brownfield expansion. The reserve of Utkal D & E Coal mines will sustain 40 - 45 years at the rate of 4 million MT per annum.

- Your Company is also planning to participate in the Coal block allotment process of Govt. of India, notified in the month of July, 2018 for expansion of Smelter and Power plant.

- Your Company has been issued terms and conditions for grant of Mining Lease by Govt. of Odisha for Pottangi Bauxite Mines and the same have been accepted.

- For part securitisation of Caustic Soda, your Company has formed a JV Company “GACL-NALCO Alkalies & Chemicals Pvt. Ltd with Gujarat Alkalies and Chemicals Ltd. (GACL) to set up a Caustic Soda plant and to get assured supply of 50,000 MT of Caustic Soda per annum.

- Your Company had also signed an MoU to form a JV Company with Neelachal Ispat Nigam Ltd. for production of CT Pitch and to supply to NALCO Smelter. Finalisation of the JV agreement is in process.


5th Stream of Alumina Refinery

Your Company is in the process of setting up of 5th Stream in its existing Alumina Refinery which shall add 1.0 MTPY to its existing installed capacity of 2.275 MTPY (total capacity 3.275 MTPY), at a projected expenditure of Rs.5,540 crores, based on improved Medium Pressure Digestion technology of M/s. Rio Tinto Alcan International Limited (RTAIL).

Your Company has obtained major statutory clearances like Environmental Clearance from MoEF & CC and Consent to Establish (CTE) from Odisha State Pollution Control Board. M/s. Thyssenkrupp Industrial Solutions (India) Private Ltd. has been appointed as EPCM consultant for the project. M/s. M.N. Dasturco, has been appointed as EPCM consultant for Steam and Power Plant of Alumina Refinery. Basic engineering for the project by M/s. RTAIL has been completed and detailed engineering has progressed to the tune of 12%. Process of awarding of long delivery contracts has started. Site activity comprising of survey and soil investigation started since December, 2017.

Alternate sourcing of Bauxite for 5th Stream

Sourcing of Bauxite for 5th Stream Expansion of Alumina Refinery has been envisaged from Pottangi Mines. However, availability of bauxite from Pottangi Mines is expected beyond the scheduled commissioning of 5th Stream expansion.

Hence, sourcing of bauxite from South Block of your Company’s existing Panchpatmali Mines has been planned through setting up of a crushing & conveying system for which a capital expenditure of Rs.483 crores has been projected.

Process for engagement of EPCM consultant for above proj ect has been initiated.

Pottangi Bauxite Mines

Pottangi Bauxite Mines (75 Million Tones) has been reserved by Govt. of India in favour of your Company. The status is as follows:

- Ministry of Mines issued Gazette notification on reduced mining lease area (from earlier 1738.04 Ha to 697.979 Ha) on 21.03.2018.

- Govt. of Odisha issued terms and conditions for grant of Mining lease over the reduced area of 697.979 Ha on 14.05.2018 and your Company conveyed acceptance on 15.05.2018.

- EAC considered NALCO’s proposal for issue of ToR for conducting EIA studies for Environmental Clearance in its meeting held on 30.05.2018.

- Authorities are being followed up for conducting the Gramsabha at the earliest for obtaining FRA certificate and compensatory afforestation land for the forest land to be diverted for Pottangi Bauxite mines for issue of Forest Clearance.

- Mining Plan submitted to IBM on 28.05.2018.

Utkal D & E Coal Blocks

Utkal-D&E Coal Blocks (200 Million Tones) have been allotted by Govt. of India in favour of your Company in the year 2016. Following activities were undertaken for complying with various conditions to obtain the Mining Lease of Utkal-D & Utkal-E Coal Block combined and mine opening of Utkal-D in 1st Phase.

- Terms of Reference (TOR) for mining lease of Utkal-D was issued by Govt. of Odisha on 30.10.2017.

- The process of transfer of land by execution of land deed of Utkal-D has been completed on 04.05.2017.

- Transfer of statutory clearances for Utkal-D from prior allottee in favour of your Company is in process.

- Action are already taken up by M/s. CMPDI for compliance of observation of standing committee of MoC for approval of Mining Plan for Utkal-D&E.

- MECON has been appointed as Transaction Advisor (TA) to engage Mine Developer (MDO), as mining activities of Utkal-D Coal Block is planned in 2019.

- Mining activities for Utkal - D is expected to start in 2nd half of 2019-20.

25.5 MW Wind Power Projects

Your Company is in process of augmenting its wind power generation capacity from 198.40 MW to 223.90 MW by adding another wind farm of capacity 25.5 MW at Kayathar, Tamil Nadu at a capital expenditure of Rs.163 crores. Plant is expected to be commissioned by October, 2018.

Retrofit Conversion of Flat Bottom Tank to HRD-DCW in Streams #1, 2 & 3 at Alumina Refinery

To improve operational efficiency, your Company is going for retrofit conversion of Flat Bottom settler-washer Tanks to HRD-DCW (High Rate Decanter and Deep Cone washers) in Streams #1, 2 & 3 of its existing Alumina Refinery at an estimated cost of Rs.355 crores. Following orders have been placed for the project:

- Process Licensing and Basic Engineering Package on M/s. RTAIL.

- Rake Mechanism (Proprietary item) for HRD DCW on M/s. RTAIL.

- EPCM consultancy on M/s. EIL

NIT (Indigenous) has been floated for execution of the project on turnkey basis for balance supply, erection, testing and commissioning of the project.

BPTG #5 Project

To reduce dependency on power supply from the grid at Refinery, BPTG-5 project was envisaged. The project was commissioned in October, 2017.

Brownfield Expansion of Smelter and Captive Power Plant

Your Company is planning the brownfield expansion of Smelter at Angul by adding a 5th Potline (5 lakh MTPY) and upgradation of pot amperage of existing 4 Potlines from 180 KA to 220 KA (1 lakh MTPY) along with expansion of CPP by addition of 2 units of 660 MW each. M/s. EIL and M/s. DCPL have been engaged for preparation of DPR for Smelter expansion and TEFR for CPP expansion.


- Caustic Soda Project in JV with Gujarat Alkalies and Chemicals Ltd. (GACL):

Your Company has formed a JV Company “GACL-NALCO Alkalies & Chemicals Pvt. Ltd with GACL in December, 2015 to set up 2.7 lakh TPA caustic soda plant along with 130 MW (2x65 MW) captive power plant at Dahej in Gujarat.

- 50 (2X25) MW Wind Power Project:

Your Company placed order for setting up of first block of 25.5 MW Wind Energy Project at Kayathar in Tuticorin dist., Tamil Nadu in September, 2017. The Company further placed order for setting up of second block of 25.2 MW Wind Energy Project at Viliseri in Tuticorin dist., Tamil Nadu in May, 2018.

- Coal Tar Pitch Plant in JV with NINL:

Your Company has signed an MoU with Neelachal Ispat Nigam Ltd. (NINL) to set up a Coal Tar Distillation plant of 20,000 TPA capacity based on the Coal Tar generated in NINL’s Coke Oven Plant for production of liquid CT Pitch and supply to Smelter plant for own consumption.

- Strategic minerals in overseas:

NALCO, HCL and MECL, the three CPSEs under the Ministry of Mines, Government of India have signed an MoU in Sept, 2017 to set up a JV Company to identify, acquire, develop, process and make commercial use of strategic minerals in overseas locations for supply in India and thus boost “Make in India” initiative of Government of India.

- Greenfield Aluminium Smelter in Odisha:

The Company is preparing a Pre-feasibility Report (PFR) for proposed Greenfield Aluminium smelter at Kamakhyanagar or any other suitable location in the State of Odisha along with site selection for proposed Aluminium downstream projects.

- High End Aluminium Alloy Plant:

Your Company has signed an MoU with Mishra Dhatu Nigam Ltd. (MIDHANI) in April, 2017 for establishment of High End Aluminium Alloy Plant in JV mode for Defence, Aerospace & Automobile Sectors.

- Aluminium Downstream Projects:

Your Company is preparing Detailed Project Report (DPR) for establishment of Aluminium Downstream Projects like Alloy Wheel Plant, Extrusion Plant, Value added rolled products Plant and Foil Plant in a suitable location in Odisha.


The achievement in CAPEX is Rs.1080.26 crores in the year 2017-18.


A Risk Management Policy has been formulated and approved by the Board of Directors and the same is available in the Company’s website


Presidential Directives on SC/ST reservation

Your Company fully complies with all applicable Presidential Directives and other guidelines in matters of reservation for SC/ ST/OBC and other categories like the PWD, Ex-servicemen etc. Out of total manpower strength of 6,776 as on 31.03.2018, there were 1,104 SCs (16.29%), 1,248 STs (18.42%), 828 OBCs (12.22%), 89 PWDs (1.31%) and 14 ESMs (0.21%) on roll. There were a total of 366 lady employees in the Company as on 31.03.2018.

Industrial Relations

The year 2017-18 witnessed many milestones left behind by outstanding performance by your Company on all fronts in a most conducive industrial relation climate ever. Zero tolerance to indiscipline was the hallmark of IR management. The secret ballot election process for recognition of trade unions was conducted peacefully in all production units of your Company. Issues like poor work culture and work place indiscipline, which used to dampen the work force spirit earlier, were marked by their absence during the year due to various HR interventions. The year was also marked by efforts to enhance employee well-being through providing career growth opportunities to a good number of executives stagnating for long years, resolving long pending employee issues like rationalization of pension contribution for executives, revision of Special Financial Package for nonexecutive employees of Mines, payment of revised bonus and enhanced wages to contract labour, improvement in quality of health care facilities at your Company’s hospitals etc. Pay revision for executives of your Company was implemented in terms of the guidelines issued by the Government. HR interventions like HR Audit, Talent Management and Succession Planning etc. were taken up keeping in view the strategic HR needs of your Company.

Social Accountability 8000

For creating and maintaining a decent work place, your Company has adopted the international standard, Social Accountability 8000 (SA-8000) since 2009-10. The certification helped the Company in becoming more transparent in the areas of child labour, forced labour, safe and healthy work environment, working hours, remuneration, freedom of association, collective bargaining process, discrimination and disciplinary practices to all stakeholders including employees, owner, customers, suppliers and other interested parties.

Your Company has successfully completed the transition process from SA 8000:2008 version to SA 8000:2014 version. All the Units including Corporate Office are certified to SA 8000:2014 Standard as on date.


A detailed report on CSR activities prepared in line with various applicable provisions of the Companies Act, 2013 is attached at Annexure-I.


The following Parliamentary Committees visited the Company during the year 2017-18:

- Study visit of Parliamentary Committee on Subordinate Legislation, Rajya Sabha between 15.04.2017 to 22.04.2017 at Bhubaneswar.

- Study visit of Parliamentary Committee on Papers Laid on the Table, Rajya Sabha between 17.04.2017 to 19.04.2017 at Puri & Bhubaneswar.

- Study visit of Department related Parliamentary Standing Committee on Commerce between 19.04.2017 to 21.04.2017 at Vijayawada.

- Study visit of Parliamentary Committee on Petitions, Lok Sabha between 21.08.2017 to 25.08.2017 at Thiruvananthapuram, Kerala.

- Study visit of Department related Parliamentary Standing Committee on Science & Technology, Environment & Forests between 22.08.2017 to 24.08.2017 at Bhubaneswar.

- Study visit of Parliamentary Standing Committee on Agriculture on 8th & 9th November, 2017 at Bhubaneswar.


Management Discussion & Analysis Report in line with Regulation 34(3) read with Schedule-V of the SEBI (LODR) Regulations, 2015 is placed at Annexure-II to this report.

The report also contains:

(a) various initiatives undertaken to further business development.

(b) the details in respect of adequacy of internal financial controls with reference to the financial statements and risk management practices.

(c) various initiatives taken up in the field of environment management at different units of your Company.


Your company is leveraging Information Technology (IT) to augment the organization’s quest for sustainable growth and continuous improvement in processes and business practices. Enterprise Resource Planning (ERP) application has been implemented to integrate all the business functions such as Sales and Distribution, Finance & controlling, Materials, Human Resource and Production planning to ensure uniform process, to improve information availability, transparency and decision making. The ERP application was upgraded to implement GST. E-procurement of goods are carried out through SAP SRM and Central Public Procurement Portal. Centralized Non-ERP Applications such as Payroll, Attendance, Perquisites, Advances and Leave systems have been implemented. A centralized Hospital Management System has been implemented for the Company hospitals at Angul and Damanjodi.

For governance and monitoring, online web-based application such as Capital Expenditure, Fund monitoring, Monitoring and Compliance Management systems, Monitoring of Internal Audit observations etc. have been implemented.

Adding a new dimension to the digital initiatives, your Company has launched Mobile Apps and Web-based applications for its stakeholders.

“NISARG” - NALCO Initiatives for Social Awareness and Responsible Growth. A vibrant App for Citizens at large on Nalco CSR activities.

“NAGINAA” - NALCO Grahak Information and Networking App for All - A feature rich App for Domestic Customers providing information such as Account Status, Despatch Plan, history, MOU calculator and product pricing information.

True to its adage “Once a Nalconian always a Nalconian”, your Company has launched an App for its Retired Employees-“Hamesha Nalconian”. The App provides features like Medical Reimbursement information, In-house e-magazine, important circulars & policies.

A Portal for contract labour has been deployed to facilitate contractors to manage contract workers attendance, payments and statutory returns.

On the Infrastructure front, fault tolerant and redundant MPLS based WAN connects all the offices and units. The in-house state-of-the-art Data Center to host the Business critical Applications with Disaster Recovery center are in place. In an effort towards better communication and collaboration, multichannel video conferencing has been implemented. Virtualized computing facility has been implemented for the ERP landscape resulting in better utilization of computing resources.

The IT roadmap is aligned to partner in your Company’s growth. Emphasis is being placed on Analytics and Decision Support system to aid decision making process at various levels of management. Thrust is also being laid on Mobile solutions for stakeholders. In pursuit of an efficient, transparent and secure file processing system, e-office is being implemented.

The IT practices are being aligned to meet the ISO 27001 standards covering the full arena of IT Security for IT infrastructure, Applications and Users. IT infrastructure and application security is ensured with network gateway and endpoint security solutions.


- Integrated Management System(IMS):

Transition Audits of the existing Quality Management Systems and Environment Management Systems operating in all the production units i.e. Smelter, Refinery, Mines and CPP including the Corporate Marketing function were successfully completed during the year. This was necessary in order to comply with the mandatory requirements of the latest 2015 edition of ISO 9001 and ISO 14001 standards. As on 31.03.2018, all the units are operating with valid ISO 9001, ISO 14001 and OHSAS 18001 certificates having international accreditation from UKAS, U.K. & RvA, Netherlands.

- Energy Management:

i) All the three production units CPP, Smelter and Alumina Refinery, included in the Perform, Achieve & Trade (PAT) scheme, are operating with valid ISO 50001 certificates, having accreditation from RvA, Netherlands.

ii) Comprehensive Energy Audits of the above three units are also completed as per statutory requirements of BEE Regulations, 2010.

iii) Total 36,119 Energy Saving Certificates issued to your Company by Ministry of Power, Govt. of India for exceeding the PAT Cycle1 targets are banked and incorporated in financial accounting.

- QCs & Kaizen:

- 54 active Quality Circles have completed in total 57 projects during the year. In addition to the above 54 QCs, 30 new QCs are also formed during the year, taking the total number of QCs to 84.

- 14 Quality Circles from different units of your Company participated in the National QC Convention, organised by QCFI at Mysuru and out of this, 7 QCs were placed in the highest category of recognition i.e. “Par-Excellence”.

- The NALCO Utkal Gaurav Madhu Sudan Das (NUGMSD) Quality Award was instituted and administered during the year. Out of the total 15 manufacturing units from Odisha who had submitted application documents for the award, the best unit from each category i.e. Large, Medium and Small category, were conferred with the prestigious state level awards.

- The All Odisha QC Convention was also organised for the 22nd successive year by your Company during April, 2017 to encourage and recognise top performing Quality Circles & TPM Circles in the state.

- Business Excellence Initiative:

Business Excellence initiative, in line with the EFQM framework of Business Excellence, for Operational Excellence was implemented at Smelter. Based on external assessment of the unit the Smelter unit was conferred with “Emerging Leader in Operational Excellence” award in the premier National level Quality Summit organised by CII during November, 2017.

- 5S System Implementation:

Workplace Management System based on the 5S system pioneered by Japan, is implemented in total 181 zones at Alumina Refinery, Smelter, CPP and Mines.


As per the Official Language Act, 1963 and Official Language Rule, 1976, implementation of Hindi has been done in your Company.

- A Special function in Hindi organised on the Occasion of Pandit Deendayal Upadhyaya Birth Centenary on 25th September, 2017. Hindi Essay, Poster and Quiz competitions on his ‘Personality and Contributions’ were organised among the member offices of Town Official Language Implementation Committee (Undertakings), Bhubaneswar operating under chairmanship of your Company and prizes were distributed to the winners in the function. A Hindi exhibition was also organised on the Life and Times of Pandit Deendayal Upadhyaya. One Hindi souvenir was also published on his “Vyaktitwa and Krititwa” in which the special articles written by dignitaries of India was published with the consultancy assistance of Pandit Sudhakar Sharma, Member of Hindi Advisory Committee of Ministry of Mines, GOI, and a reputed Hindi scholar.

- To promote use of Hindi in official work, Hindi fortnight was observed from 01.09.2017 to 14.09.2017 at Corporate Office, Bhubaneswar, at S & P Complex, Angul and M & R Complex, Damanjodi. Several Hindi competitions were organised separately for Hindi speaking and Non-Hindi speaking employees and students. On concluding day function at Damanjodi, Hindi ‘Geet-Sangeet’ program was organised by a troupe of Jagdalpur.

- Hindi Teaching Program was implemented at Corporate Office, S&P Complex and M&R Complex and the employees who do not have working knowledge of Hindi, were nominated for Hindi Training, Hindi Typing and Hindi Computer training. Hindi Workshops were organised to impart the training for employees in practical sessions for working in Hindi.

- Two Meetings of Town Official Language Implementation Committee (Undertaking) Bhubaneswar and Town Official Language Implementation Committee, Angul, each was held under the chairmanship of your Company.

- Website of Company is being regularly updated both in Hindi and English languages.

- During the year, your Company has provided faculty assistance on the subject “Unicode and Technical Facilities in Computer and Mobile phones in Hindi & Regional Languages” in the workshops organised by different CPSUs and at Rajbhasha Sammelans.

- Bilingual notings, Help-files for self-learning of Inscript Keyboard for working in Hindi are also uploaded in the Intranet of the Company.


- Your Company continues to promote sports and sports person in the country. As a part of promotion of sports events, your Company sponsored NALCO Cup State Hockey Championship, NALCO Cup State Open Tennis Tournament, NALCO Cup Golf Tournament, NALCO Cup Basketball Championship, Biju Pattanaik State Cricket Championship, State Badminton Championship and also organised awareness camp for under-17 FIFA World Cup.

- As a matter of policy to encourage young sports persons, your Company felicitates young and aspiring sports persons of the State who are participating and excelling in their field of sports. Ms. Aparajita Gochikar, an eminent International Chess player and Ms. Geeta Bhuyan, an eminent international Baseball player were felicitated by your Company.

- Your Company also offered job to four Indian women hockey players from the state who participated in the Rio Olympics, as a policy to encourage young sports persons. Among them Ms. Sunita Lakra, has already joined the Company. Various activities are also organised at Unit level to promote Sports activities.


Broad details of the vigil mechanism, established in your Company are given below:-

- Your Company has a well-established vigilance department headed by a Chief Vigilance Officer (CVO) who is appointed on deputation from Government of India. Other vigilance officers who assist the CVO are selected on deputation basis in consultation with and concurrence of CVO. Your Company has its vigilance set up at three locations, i.e. Corporate Office, Bhubaneswar, S&P Complex, Angul and M&R Complex, Damanjodi.

- The vigilance functions are generally in the nature of preventive, punitive, surveillance and detection.

The Vigilance Department functions in brief are;

- Investigating complaints.

- Surprise checks in sensitive areas.

- Study of contract/purchase/sales files and Internal Audit Reports which are good source of information for vigilance cases.

- Suggesting system improvements.

- Circulation of CVC Circulars/ guidelines.

- Giving vigilance clearances to various employees for various purposes, viz. NOC for issue of Passport, Promotion, Resignation/ Superannuation/ Voluntary Retirement, Conferment of Award, Foreign Assignment, Deputation and appointment of officers to Board level etc.

- Scrutiny of Property Returns.

- Advising on rotation of officials in sensitive posts.

- Advising CMD on vigilance matters and matters relating to disciplinary procedures.

- Liasoning with CBI etc.

- Implementation of Integrity Pact.

- Conducting training programmes for awareness among employees and general public as a part of preventive vigilance mechanism.

Functions of CVO

The functions of CVO are as follows:

- Maintaining a good link with CVC and CBI besides organizing structured review meeting with CBI.

- Furnishing of various return/ report to Ministry/CVC/CBI.

- Assisting CVC in selection of Independent External Monitors (IEMs) for I.P (Integrity Pact).

- Assisting management in formulation/updation of anticorruption policies/ measure.

Whistle Blower Policy

Your Company believes in the conduct of the affairs of its constituents in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behavior.

The purpose of this policy is to provide a framework to promote responsible and secure whistle blowing to prohibit managerial personnel action. It protects employees wishing to raise a concern about serious irregularities within the Company.

Details of the policy are available in the Company’s website

Corruption Risk Management Policy

Corruption is a special category of risk. Corruption Risk Management policy of your Company has been implemented to determine the key principles and requirement aimed at preventing corruption and compliance of anti-corruption law of India.

The policy reflects commitment of your Company and its management to high ethical standards at carrying on business in an open, transparent and honest ways aimed at improving corporate culture, compliance with the best practices in corporate governance and maintaining the business reputation in your Company.

Fraud Reporting

No fraud has been reported by the Auditors under Section 143(12) of the Companies Act, 2013 during the year under report.

The company has a Board approved Fraud Prevention Policy and the same is placed in the Company’s website

Integrity Index Development

Integrity has been recognised as the integral part of a Company ensuring accountability, enhancing competency and boosting the ethical values of the personnel resulting in a corruption free environment. Integrity index is the image of a company other than financial parameters. In this regard, a framework }was envisaged by CVC in 2017-18 to measure integrity index in Public Organizations for ensuring probity. 25 PSUs, State organizations and Ministry including your Company were selected by CVC for supporting IIM-Ahmedabad in developing the framework.

Performance, integrity perception, enabling systems, process management, compliance are the broad parameters with detail questionnaire to bring out the level of probity, integrity, efficiency, transparency and compliance in the Organizations. The integrity index is to be computed based on these parameters including perceptions of the internal and external stakeholders.

Your Company responded actively by participating in the process in a time bound manner and bridging in the gaps in the processes in many areas during the course of submission in the IID portal, which was finally submitted in February, 2018.


In order to address the provisions of Right to Information Act (RTI), one Appellate Authority, one Public Information Officer and nine Assistant Public Information Officers responsible for providing information sought by stakeholders have been appointed.

The following are the details of the RTI applications and appeals during 2017-18:


Received during

No. of cases





the year (including



where requests/


as on

cases transferred

to other


appeals accepted

as on


from other



and settled


Public Authority)










First Appeals







Your Company has been aligned with the Online RTI portal of Department of Personnel and Training ( with effect from 18.01.2017. The RTI requests are received and replied through this online portal also.


The equity shares of your Company continued to be listed on BSE Limited and National Stock Exchange of India Ltd, the premier stock exchanges of the country, having nationwide trading terminals. The listing fees for the years 2017-18 and 2018-19 have been paid on time to the stock exchanges.


During 16th November, 2017 to 21st November, 2017, 9,20,78,399 number of equity Shares (4.76% of the paid-up capital) of your Company were transferred to Bharat 22 ETF scheme (a part of Government of India’s disinvestment programme) by Govt. of India in two tranches (1st tranche between 16th November, 2017 & 17th November, 2017 for 8,49,74,665 shares and 2nd tranche between 20th November, 2017 & 21st November, 2017 for 71,03,734 shares).

Further, Govt. of India has divested 6,98,88,827 shares (3.61% of the paid-up capital) of your Company under Bharat 22 ETF scheme during 19th to 22nd June, 2018.

Employee Offer - Post offer for Sale:

Govt. of India transferred 76,17,057 numbers of equity shares (0.39% of the paid-up capital) of your Company on 21st November, 2017 to the eligible employees as a part of employee offer subsequent to Offer for Sale which took place on 18th and 19th April, 2017.

After the transfer of shares to Bharat 22 ETF and eligible employees, the shares held by President of India has come down from 65.36% to 56.59% of the total paid-up capital of the Company.


All matters relating to transfer/transmission of shares, issue of duplicate share certificates, payment of dividend, de-materialization and re-materialization of shares and redressal of investors grievances are carried out by the Company’s RTA i.e. M/s. Karvy Computershare Pvt. Ltd., Hyderabad.


Annual connectivity fees and custody fees/issuer fees for the years 2017-18 and 2018-19 have been paid on time to both M/s. National Securities Depository Ltd. and M/s. Central Depository Services (India) Ltd.


In line with Regulation 34(2)(f) of SEBI (LODR) Regulations, 2015, a Business Responsibility Report for 2017-18 describing various initiatives taken by the Company on social, environmental and governance perspective, is attached at Annexure III which forms part of this Annual Report.

Reports on Sustainable Development

- The mandatory report on sustainability i.e. the Business Responsibility Report addressing the economic, environmental, social & governance aspects as required by SEBI, was completed and published & web-hosted.

- In addition to above report, a standalone report is prepared on voluntary basis, aligned with GRI G4 guidelines.


Research & Development

- 150 m3 per batch Defluoridation Plant with Emrion Nano Technology of ETPL first of its kind in the world is running successfully, meeting the environments norm stipulated by OSPCB at Smelter Plant. Performance Guarantee (PG) test of the Emrion plant has been completed successfully on 19th March, 2018. One MoU was signed with M/s. ETPL, Hyderabad for royalty sharing on the technology commercialized by your Company.

- Filtration trials of Red mud carried out in pilot setups with M/s. Unitop Multitech India Pvt. Ltd. and M/s. FL Smith to establish the efficiency of pressure filtration for Red mud filtration. The data generated will be used for plant scale implementation.

- R&D has developed a process for improvement of oxidation behaviour of anode which has been successfully implemented in the Smelter plant.

- “Extraction of Alumina from Partially Lateritized Khondalite (PLK) at laboratory scale” has been completed and the basic flow sheet for the process has been developed by CSIRO, Australia.

- NALCO & IIT, Bhubaneswar have jointly developed a process for “Synthesis, Characterization and Development of Red mud-Fly ash based Geopolymer concrete” which has a potential for application in civil activities.

- Two patent applications:

i) A process for beneficiation of bauxite ore to obtain an upgraded alumina.

ii) Partially Lateritized Khondalite based Ceramic Proppants and its preparation were filed.

- Six patent applications, filed earlier have been granted during the year 2017-18.

The particulars relating to Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo, as required to be disclosed under the Companies Act, 2013 are given in the Annexure-IV to this report.


Your Directors’ pursuant to the provisions of Section 134(3)(c) and 134(5) of the Companies Act, 2013, hereby confirm that;

- in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

- the directors had 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 and loss of the Company for that period;

- the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

- the directors had prepared the annual accounts on a going concern basis;

- the directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

- the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.


A report on Corporate Governance in line with Regulation 34 read with Schedule-V of SEBI (LODR) Regulations, 2015 and DPE guidelines is prepared and placed at Annexure-V to this report. The Statutory Auditors of the Company have issued a certificate on Corporate Governance which is appended to the Corporate Governance Report.


The Policy on Related Party Transactions has been approved by the Board and placed in the Company’s website which can be accessed at

Your Directors draw the attention of the members to Note No. 38 of the financial statements which sets out related party disclosures. No contract has been entered with any related party during the year under report. However, a report in Form AOC-2 is attached at Annexure-VI to this report.


In accordance with the provisions of the Act, the Board of Directors have appointed the following as Key Managerial Personnel:

- Dr. T. K. Chand, Chairman-cum-Managing Director

- Shri K. C. Samal, Director (Finance)

- Shri V. Balasubramanyam, Director (Production)

- Shri Basant Kumar Thakur, Director (HR)

- Shri S. K. Roy, Director (P&T)

- Shri P. K. Mishra, Director (Commercial) w.e.f. 23.04.2018.

- Shri N. K. Mohanty, Company Secretary w.e.f. 01.06.2017.

Declaration of Independence by Independent Directors

The Company has received declaration from the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed both under the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Meetings of the Board

During the year, 7 (Seven) Board meetings were held. Details of the meetings are available in the report on Corporate Governance (Annexure-V) placed in this Annual Report.

Various Sub-committees of the Board

The details of various Sub-committees of the Board including Audit Committee, their composition, terms of reference, details of meetings held are given in the Corporate Governance Report (Annexure-V) placed to this report.


Extract of Annual Return of the Company in the prescribed Form MGT-9 is annexed herewith as Annexure VII to this Report.


Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under report:

- Details relating to deposits covered under Chapter V of the Act.

- Issue of equity shares with differential rights as to dividend, voting or otherwise.

- Issue of shares, sweat equity shares and ESOS to employees of the Company.

- Neither CMD nor the Whole-time Directors of the Company receive any commission from the Company.

- No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company’s operations in future.

Your Directors also state that no disclosure or reporting is required in respect of the following areas as they are exempted for Government Companies by Ministry of Corporate Affairs vide notification dated 5th June, 2015, as amended and notification dated 5th July, 2017.

- Company’s policy on Director’s appointment and remuneration including criteria for determining qualification, attributes, independence, etc. as per Section 134(3)(e) and Section 178(2), (3) & (4).

- Manner in which formal Annual Evaluation of performance of Board, its Committees and individual Directors has been carried out as per Section 134(p) read with Rule 8 (4) of Companies (Accounts) Rules.

- Ratio of remuneration of each Director to the median remuneration of the employee and other prescribed details as per Section 197(12) read with Rule 5 of Companies (Appointment & Remuneration of Managerial Personnel) Rules.

Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

During the year, no case was reported under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Particulars of loans, guarantees and investments

Details of Loans, Guarantee and Investments covered under the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014 are given in the note no. 9 and 11 to Financial Statements 2017-18.

Subsidiaries, Joint Venture Companies and Associated Companies

In accordance with the provisions of Section 129 (3) of the Act, read with the Companies (Accounts) Rules, 2014, a report on the performance and financial position of each of the joint venture and associates and their salient features are given in the note no. 40 and 41 of the Consolidated Financial Statements 2017-18 respectively.

Salient features of JV/Associate companies in Form AOC-1 (Note 41) forms integral part of the consolidated financial statement of the Company.


a) Prestigious SCOPE Award for Excellence and Outstanding Contribution to Public Sector Management - Institutional Category I (Maharatna & Navratna PSEs). Also received another award for meritorious performance in CSR. Your Company is one of the top two Navratna/Maharatna companies receiving double prestigious awards.

b) Appreciation Award in large mines category at CII Eastern Region Safety Health & Environment Excellence Awards 2016-17 to Panchpatmali bauxite mine.

c) EEPC Silver Trophy, in the Large Enterprise category, for its outstanding export performance during the year 2014-15.

d) Smelter Plant of your Company has bagged the National Energy Conservation Award in Aluminium Sector for the year 2017.

e) Four prizes to Panchpatmali bauxite mine in inter-mines competitions held during the Half-yearly Safety Week Celebration of “Odisha Metalliferous Mines Safety Week Celebration Committee 2017-18”

f) Best Exporter Award for the year 2015-16, under metallurgical products category at the State Export Award Ceremony.

g) Kalinga Safety Award (Silver) for the year 2016 to Alumina Refinery during Odisha State Safety Conclave-2017.

h) Five Star Rated Mines to Panchpatmali Bauxite Mines for exemplary performance in implementation of Sustainable Development Framework during 2016-17.

i) Best PSU Award in the ‘Brands of Odisha: Pride of India’, the Corporate Excellence Awards, instituted by leading Odia daily ‘The Sambad’.

j) State Safety Award for “Lowest Weighted Frequency Rate of Accidents for the performance Year 2016” to NALCO’s Alumina Refinery.

k) Award to Alumina Refinery for “Efficient Use of Fly Ash” by Mission Energy Foundation in the 7th edition of “Fly Ash Utilization Conference Expo Award - 2018”.

l) Kalinga CSR Award for the year 2016 during the 2nd National Seminar on ‘CSR Initiatives’.

m) National Business Leadership Award for CPSE in recognition of the outstanding achievements in Business and Social Service.

n) Best CEO Award to Dr. Tapan Kumar Chand, CMD for promoting probity, integrity, transparency and inclusive growth during the two-day 17th Annual Geominetech Conference.

o) Corporate Governance Award to Dr. Tapan Kumar Chand, CMD at 21st International Conference on Non-ferrous Minerals & Metals.


As per the Govt. of India notification on GST law, the Company has migrated to Goods and Services Tax with effect from 1st July, 2017.

With required modification/ developments in ERP, related business solutions in SAP (Materials Management, Sales and Distributions, Finance & Control etc.) have been made GST compliant.


You will be pleased to know that your Company has received ‘Nil’ comments from C&AG on the standalone financial statements of the Company. Further, C&AG has also given ‘Nil’ comment on the supplementary audit conducted by them on the consolidated financial statements of the Company. Their comments are placed elsewhere in this Annual Report.


Statutory Auditors

M/s. Guha Nandi & Co., Chartered Accountant and M/s. Patro & Co. Chartered Accountant were appointed as joint auditors of the Company by the Comptroller and Auditor General of India for the financial year 2017-18.

The Statutory Auditors’ reports on the Standalone and Consolidated Financial Statements are enclosed to this report. The observations made in the Auditors’ reports are self-explanatory and therefore do not call for any further comments.

Cost Auditors

In terms of the provisions of Section 148 of the Act read with the Companies (Cost Records and Audit) Amendment Rules, 2014, Cost Audit is applicable to the Company for the financial year 2017-18.

In compliance with the Companies (Audit and Auditors) Rules, 2014, the Board of Directors of the Company have on the recommendation of the Audit Committee, appointed M/s. Tanmaya S Pradhan & Co, as the Cost Auditors for the year 2017-18.

Your Company will submit its Cost Audit Report to the Ministry of Corporate Affairs within the stipulated time period.

Secretarial Auditors

The tenure of M/s. Saroj Ray & Associates, Practicing Company Secretaries was extended for undertaking Secretarial Audit job of your Company for 2017-18 in terms of Section 204 of the Companies Act, 2013 and Rules made there under. The report of the Secretarial Auditors together with the explanations of the management on the qualifying remarks of Secretarial Auditors is enclosed as Annexure VIII to this report.

Internal Auditors

Your Company has appointed the following CA firms for carrying out Internal Audit functions of the Company for the financial year 2017-18:

- M/s. SRB & Associates for Corporate Office, Bhubaneswar.

- M/s. SCM & Associates for Smelter & Power Complex, Angul.

- M/s. Rao & Kumar for Mines & Refinery Complex, Damanjodi & Port Facilities, Visakhapatnam.

- M/s. Bhatia & Bhatia for Northern Regional Office, New Delhi.

- M/s. Prabir Ranjan Datta & Co for Eastern Regional Office, Kolkata.

- M/s. Raghavan & Muralidharan for Southern Regional Office, Chennai.

- M/s. MKPS & Associates for Western Regional Office, Mumbai.


The following changes took place in the Board of Directors of your Company since the last report:


- Shri Nagendra Nath Sharma was appointed as Part-time Non-official (Independent) Director w.e.f 06.09.2017.

- Smt. Achla Sinha was appointed as Part-time Non-official (Independent) Director w.e.f 08.09.2017.

- Dr. K. Rajeswara Rao, Additional Secretary, Ministry of Mines was appointed as Part-time Official Director w.e.f. 19.02.2018.

- Shri Anil Kumar Nayak, Joint Secretary, Ministry of Mines was appointed as Part-time Official Director w.e.f. 27.03.2018.

- Shri Pradip Kumar Mishra was appointed as Director (Commercial) of the Company w.e.f. 23.04.2018.


- Shri Subhash Chandra, Joint Secretary, Ministry of Mines ceased to be Part-time Official Director on the Board of your Company w.e.f 16.02.2018.

- Dr. Niranjan Kumar Singh, Joint Secretary, Ministry of Mines ceased to be Part-time Official Director on the Board of your Company w.e.f 26.03.2018.

Your directors wish to place on record their appreciation for the valuable services rendered by Shri Subhash Chandra and Dr. Niranjan Kumar Singh during their tenure on the Board of your Company.


Your Directors wholeheartedly express their appreciation for the continued and unstinted support of Government of India particularly from Ministry of Mines and other Ministries/ Departments of the Government of India, Government of Odisha, Mahanadi Coalfields Ltd., Indian Railways, Comptroller and Auditor General of India, the Director General of Commercial Audit & Ex-officio Member, Audit Board, Kolkata, Statutory Auditors, Cost Auditors, Secretarial Auditors, Internal Auditors, Bankers, Solicitors, JV Partners, Business Associates, other Government agencies and CPSEs for the co-operation rendered by them during the year.

Your Directors also acknowledge the excellent support extended by the valued and esteemed domestic and international customers, vendors and also look forward for maintaining such mutually supportive business relationship in the coming years too.

Last but not the least, your Directors also place on record their deep sense of appreciation for the dedication, commitment, enthusiasm, unstinting efforts and sincere services rendered by the employees at various levels and due to the active support and co-operation received from the Trade Unions & Officers’ Associations for sustained improvements. The Company’s consistent growth was made possible due to their hard work, solidarity, co-operation and support.

For and on behalf of Board of Directors

Place: Bhubaneswar (Dr. Tapan Kumar Chand)

Date: 25.07.2018 Chairman-cum-Managing Director

Director’s Report