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National Aluminium Company Ltd.

BSE: 532234 | NSE: NATIONALUM |

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

BSE Live

Nov 29, 14:23
76.10 1.60 (2.15%)
Volume
AVERAGE VOLUME
5-Day
446,618
10-Day
642,798
30-Day
1,022,180
863,463
  • Prev. Close

    74.50

  • Open Price

    74.55

  • Bid Price (Qty.)

    76.05 (5177)

  • Offer Price (Qty.)

    76.10 (447)

NSE Live

Nov 29, 14:23
76.10 1.60 (2.15%)
Volume
AVERAGE VOLUME
5-Day
6,453,786
10-Day
8,000,714
30-Day
11,374,866
11,059,135
  • Prev. Close

    74.50

  • Open Price

    74.90

  • Bid Price (Qty.)

    76.10 (957)

  • Offer Price (Qty.)

    76.15 (18602)

Annual Report

For Year :
2022 2021 2018 2017 2016 2015 2014 2013 2012

Director’s Report

Your Directors have '' great pleasure in presenting before you the 41st Annual Report of your Company together with the audited financial statements (standalone and consolidated) and Auditors''

Report for the financial year ended 31st March, 2022.

1.0 PERFORMANCE HIGHLIGHTS:

1.1 Physical Performance:

Production

Unit

2021-22

2020-21

Bauxite

MT

75,11,075

73,65,001

Alumina Hydrate

MT

21,22,000

20,85,500

Aluminium

MT

4,60,000

4,18,522

Electricity (Net)-CPP

MU

5,711

6,440

Wind Energy (Net)

MU

320

285

(a) Your Company’s Panchpatmali Bauxite Mines has achieved 75,11,075 tonnes of bauxite production, which is highest ever production since inception, surpassing the previous “Highest ever Annual Production” of 73,65,001 tonnes achieved in FY 2020-21.

(b) Your Company operationalized all its 960 nos. of pots at its Smelter Plant on 12.01.2022, a milestone of achieving 100% capacity utilisation for the first time in the history of your Company.

(c) Your Company’s Smelter has achieved full capacity 4,60,000 tonnes of Aluminium cast metal production, which is highest ever since inception surpassing the previous “Highest ever Annual Production” of 4,43,597 tonnes achieved in FY 2010-11.

3.0 FINANCIAL PERFORMANCE:

The details of financial performance are given below:

2.0 SALES PERFORMANCE:

A summary of sales achieved during 2021-22 is tabulated hereunder:

Description

Unit

Year ended 31.03.2022

Year ended 31.03.2021

Export

Alumina

MT

11,54,691

11,84,680

Aluminium

MT

1,33,085

1,92,174

Domestic

Alumina and Hydrate1

MT

77,995

42,992

Aluminium

MT

3,23,809

2,30,643

Total Metal Sale

MT

4,56,893

4,22,817

Total Chemical Sale

MT

12,32,686

12,27,672

R in crore

Particulars

2021-22

2020-21

Revenue from Operations

14,181

8,956

Other Income

297

147

Total Income

14,478

9,103

Cost of raw materials consumed

1,971

1,315

Power & Fuel

3,388

2,638

Employee benefits expenses

2,356

1,930

Other expenses1

1,971

1,296

Depreciation & amortization expenses

837

606

Total expenses

10,523

7,786

Profit Before Exceptional items

3,955

1,317

Profit Before Tax

3,955

1,317

Tax expenses

1,003

17

Profit After Tax

2,952

1,300

* Includes changes in inventories of finished goods and work-in-progress and finance costs.

4.0 FUTURE OUTLOOK:

Market outlook for Alumina and Aluminium Industry is tabulated as under:

Particulars

Calendar Year 2020

Calendar Year 2021

Calendar Year 2022 (Projected)

Alumina

Global Demand (Million MT)

126.36

130.99

129.792

Global Supply (Million MT)

126.84

131.30

129.702

Balance

[Surplus/(Deficit)]

0.48

0.31

(0.09)2

Aluminium Metal

Global Demand (Million MT)

62.92

68.95

69.042

Global Supply (Million MT)

64.74

67.46

66.912

Balance

[Surplus/(Deficit)]

1.83

(1.49)

(2.13)2

Price Trend

FY 2020-21

FY 2021-22

FY 2022-23 (till June 2022)

LME Price (USD per MT)

1,802

2,769

2,882

Alumina Price Index (as % of LME Price)

15.68%

13.25%

12.88%

5.0 DIVIDEND AND APPROPRIATIONS:

Your Company being a Govt. of India CPSE, pays dividend in compliance with DIPAM’s guidelines.

During the year the Company has paid interim dividend @ R 5.00 per equity share amounting in total R 918.32 crore in two tranches and final dividend for the FY 202021 @ R 1.00 per equity share amounting to R 183.66 crore. The total dividend payout for the financial year 2021-22 is R 1,101.98 crore as against R 460.61 crore during the previous year. Dividend payout of 37.33% of the PAT against 35.44% of the previous financial year.

The Board of Directors have recommended final dividend @ 30% i.e. R 1.50 per equity for FY 2021-22 share subject to approval of the shareholders in the ensuing Annual General Meeting.

6.0 MOU PERFORMANCE:

Your Company is rated “Excellent” as per the Memorandum of Understanding (MoU), signed with the Government of India for the financial year 2020-21.

Based on financial performance and achievement of other parameters, your Company is likely to be rated “Excellent” for the financial year 2021-22.

7.0 RAW MATERIAL SECURITISATION:

Panchpatmali Bauxite Mines (Central & North Block) and South Block have all statutory clearances with lease validity upto 16.11.2032 and 19.07.2029 respectively. Both the Mines are in operation.

Alumina Refinery Plant is having a Captive Steam and Power Plant (SPP). For sustainable supply of coal to SPP, your Company is having 1.341 Million MT Fuel Supply Agreement with CIL Subsidiaries. Shortfall quantity, if any, are sourced through coal Auction (Spot/Exclusive) route.

Aluminium Smelter Plant is having Captive Power Plant for sustainable power supply. The Captive Power Plant is a thermal power plant and requires around 6.8 Million MT coal per annum to meet the power generation as demanded by Smelter plant. For CPP, coal is sourced from the nearby coal mines of M/s. Mahanadi Coalfields Limited (MCL). Your Company is having Fuel Supply Agreement with MCL for 4.716 Million MT Coal, and

0.90 Million MT Bridge Linkage coal MoU with MCL. Balance shortfall quantity are sourced through Coal auction (Spot/Exclusive) route.

Your Company has been allotted Utkal-D & E Coal Blocks and actions are in progress to make Utkal-D Coal Block operational, followed by Utkal-E Coal Block.

8.0 PROJECTS UNDER IMPLEMENTATION:8.1 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 2.1 MTPY (total capacity 3.1 MTPY), at a projected expenditure of R 6,435.90 crore at December, 2018 price level, 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 has been completed by M/s. RTAIL and detailed engineering has progressed to the tune

of 88%. Site activity comprising of Survey and Soil Investigation & Site Grading work has been completed. Contractors for most of the packages have mobilized at the site for commencement of construction work. The project is targeted to be commissioned by January, 2024.

8.2 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 existing Panchpatmali Mines South Block has been planned through setting up of a crushing & conveying system for which a capital expenditure of R 483 crore has been approved.

M/s. DCPL has been engaged as the EPCM consultant for the project. Order for major packages such as Over Land Conveyor, Crusher Plant, Water System, Electrical System and Site & infrastructure packages are finalized. Site construction activities are under progress. The project is targeted to be completed by December, 2023.

8.3 25.5 MW Wind Power Project:

In pursuit of being a harbinger for harnessing green & clean energy, your Company has established 198.40 MW Wind Power Plants in various states of India.

In this noble endeavour, your Company is in process of augmenting its wind power generation capacity to 223.90 MW by adding another wind power project of capacity 25.5 MW at Kayathar, Tamil Nadu at a capital expenditure of R 163 crore through M/s. REGen Powertech Pvt. Limited. Substantial progress (65%) has been made on supply and erection of the equipments. However, the job is not completed as yet due to fragile financial situation of the executing agency. The executing agency, M/s. REGen has subsequently been referred to NCLT. The final resolution order, has been issued by NCLT in February, 2022. As the terms of the approved resolution plan are not favorable in the interest of project execution, your Company has filed a petition at NCLAT for review of approved resolution plan. The decision of NCLAT is awaited.

8.4 Pottangi Bauxite Mines:

Pottangi Bauxite Mines (75 Million Tonnes) has been reserved by Government of India in favour of your Company for meeting the bauxite

requirement of 1 Million Tonne Alumina Refinery under expansion. The Mining Plan has already been approved. The Pre-project activities like obtaining Environmental Clearance and Forest Clearance for execution of Mining Lease and construction of 18 KM long Over Land Conveyor are underway. Important milestones like preparation of EIA and EMP report, conduction of Public Hearing, obtaining Forest Right Act certificate from the District Administration, preparation of Compensatory Afforestation scheme for diversion of forest land including authentication of maps by ORSAC and engagement of consultant for selection of Technology of Over Land Conveyor has already been completed. The Mine is likely to be operational in the 3rd quarter of FY 2024-25.

8.5 Utkal-D & E Coal Block:

Utkal-D and Utkal-E Coal Blocks (175 Million Tonnes) have been allocated by Government of India as a part of raw material security to the existing operational Units at Captive Power Plant (CPP) and future expansion of your Company. Your Company executed the Mining Lease of Utkal-D after obtaining requisite regulatory clearances and completing land acquisition in the Mining Lease area. The Coal Controller has granted the Mine Opening Permission in May, 2021. Appointment of Mine Developer and Operator (MDO) including signing of Coal Mining Agreement has been completed. Project Level Rehabilitation and Resettlement Committee (PLRRC) meeting was successfully conducted. Rehabilitation and Periphery Development Advisory Committee (RPDAC) Sub-committee meeting has also been conducted with the villagers of Utkal-D along with District administration to finalise the R & R benefits. The activities for development of railway siding construction are under progress. The Preproject activities for execution of Mining Lease of Utkal-E are in full swing. Stage-I Forest Clearance (FC) has already been obtained and compliance to Stage-I FC has been submitted to obtain Stage-II Forest Clearance from MoEF & CC, GoI. Action for acquisition of balance private land and Government land are being taken up through State Nodal

agency, M/s. IDCO. All out efforts are being made for operationalisation of Utkal-D Coal Block in FY 2023-24 and Utkal-E will be operationalized after obtaining all the statutory clearances thereafter.

9.0 CAPITAL EXPENDITURE (CAPEX):

On a standalone basis the Company has achieved a CAPEX of R 1,488.16 crore. Considering the capitalization done by joint venture companies, on a consolidated basis the CAPEX of the Company stands at R 1,944.65 crore.

10.0 RISK MANAGEMENT POLICY:

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

11.0 HUMAN RESOURCES MANAGEMENT:

11.1 Presidential Directives on SC/ST reservation:

Your Company complies with all applicable Presidential Directives and other guidelines in the matters of reservations of SC/ ST/ OBC/ EWS and other categories like PWD and Ex-servicemen. Your Company has published an Equal Opportunity Policy for the PWD category in compliance with the RPWD Act, 2016.

As on 31.03.2022, out of total manpower strength of 5,520, there were 878 SCs (15.91%), 1,066 STs (19.31%), 813 OBCs (14.73%), 101 PWDs (1.83%)

and 9 ESMs (0.16%) on roll. Besides, there were 333 (6.03%) women employees.

11.2 Industrial Relations:

Your Company continued to maintain a conducive and cordial Industrial relation climate during the year 2021-22. Not only there was zero man-days loss on account of labour disputes but also the manpower contributed strongly in achieving highest ever profit for the Company during 2021-22. Compliance of applicable Labour Laws, adherence to Government Guidelines and consultative decision making, continued to remain the core strengths in dealing with employee benefits and welfare issues. As always, zero tolerance to indiscipline continued to remain the hallmark of the Company’s IR philosophy.

11.3 Social Accountability 8000:

For developing and maintaining a decent workplace, 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 our stake holders including employees, owner, customer, supplier and other interested parties.

All the units of your Company are certified to the latest version of SA 8000 i.e. SA 8000:2014. All the Production Units including Corporate Office are certified to SA 8000:2014 Standard since 2017 (New Version). Certification of all Production Units and Corporate Office are being renewed every 3 years

12.0 CORPORATE SOCIAL RESPONSIBILITY (CSR):

12.1 Annual Highlights on CSR:

With a legacy of over four decades, your Company has proved that “Corporate Social Responsibility” is strongly embedded in its DNA. Your Company continues to nurture the core value of “giving back to the society” by contributing to the nation’s economic development on the one hand, and improving the quality of life of its employees, local community and society at large on the other.

Your Company has been following the mandates of the Companies Act, 2013 while considering CSR project. All the ideas and intended developmental actions have been evaluated against Schedule-VII of the Companies Act, 2013.

The initiatives are also taken up by consulting a wide range of stakeholders including local people and local administration. The projects are prioritized as per the needs of the community and continuous monitoring is done to improve their impacts.

Your company has spent R 36.91 crore in the FY 2021-22 on various CSR projects against the mandated CSR obligation of R 28.60 crore complying with the requirements of its CSR policy in line with the Companies Act, 2013. The Company has undertaken theme based CSR activities on Health & Nutrition with special focus on COVID related measures as per Department of Public Enterprises, Government of India OM dated 12.05.2021.

The thrust areas of implementation are Healthcare, Education, Drinking Water, Rural Development, Environmental Sustainability and Development of Iconic City, Puri. The Company has taken exemplary initiatives to fight the COVID-19 pandemic in the state of Odisha and other parts of the country by strengthening the health care system/facility to meet the increased demand in this critical juncture and also spreading awareness about the preventive

measures among the vulnerable communities to combat the spread of the disease.

Your Company primarily focuses on identifying gaps in the existing system of delivery to society and intervening meaningfully with them, so as to create a long-term, sustainable impact rather than creating parallel system.

12.2 Important CSR initiatives undertaken by your Company during the year 2021-22 are:

a) For COVID management, your company has taken the following measures:

(i) Your Company in collaboration with Government of Odisha has set up a 200 bedded exclusive COVID hospital at Nabarangpur district head quarter for treatment of the patients from the Aspirational Districts of Koraput, Nabarangapur, Malkanagiri, Rayagada & Kalahandi.

(ii) Your Company in convergence with Government of Odisha, has set up a 150 bedded District COVID Hospital (DCH) at Banarpal in Angul district.

(iii) Financial support for 70 bedded COVID Hospital at Saheed Laxman Nayak Medical College & Hospital at Koraput.

(iv) COVID assistance to contractual workmen working in the Company.

(v) Financial support to Government of Odisha for supplying DG Sets to medical oxygen filling stations as an emergency measure.

b) Various activities to promote violence free lives among women in the state of Odisha.

c) Clean drinking water projects in operational areas.

d) Infrastructural activities such as construction of roads, culverts, drains and community halls in different rural areas.

e) Support to poor and meritorious girl students under the project “Nalco Ki Ladli”.

f) Residential Education to poor backward and tribal children from periphery villages of M&R Complex, Damanjodi.

g) Operation of Medical Health Units and OPD centers in the peripheral villages of Angul and Damanjodi.

h) Various developmental and renovation activities in Iconic City, Puri.

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

13.0 IMPACT OF COVID-19 PANDEMIC ON ITS BUSINESS:

(a) Your Company abided to all Government guidelines and directives issued to prevent the spread of COVID-19 in all its operating units.

(b) Despite the restricted working mechanism and logistic challenges in movement of raw materials and finished goods, your Company put its best efforts to maximize its production and sales. All the production Units of your Company operated abiding to COVID-19 appropriate protocol/procedure in the work front and all the Units achieved targeted production in FY 2021-22.

13.1 NALCO’s empathetic response to the Global Pandemic:

As a responsible corporate citizen, your Company has been extending helping hand to fight against COVID-19. Major initiatives taken by the Company in FY 2021-22 are furnished as under:

13.1.1 Infrastructure Support:

a) Your Company supported the State Health Department by two Ventilator Ambulances to provide emergency care to critical COVID-19 patients.

b) To strengthen the Cold Chain Equipment’s (CCE) & Logistic infrastructure, one Refrigerated Truck has been procured and handed over to State Immunization Cell for COVID-19 Vaccination program. The refrigerated truck has a capacity of transporting 25,70,000 COVID vaccines (in doses).

13.1.2 Direct support to public at large:

a) Your Company handed over dry ration, cotton face masks, sanitizers to District Administrations for distribution in peripheral villages of your Company at Angul and Koraput District.

b) Massive sanitization drive was carried out by your Company in peripheral villages.

14.0 VISIT OF PARLIAMENTARY COMMITTEE:

During the year 2021-22, study visits of the Parliamentary Committee on Public Undertaking (COPU) and Parliamentary Standing Committee on Labour was organized at Bhubaneswar as the nodal organization.

15.0 MANAGEMENT DISCUSSION & ANALYSIS REPORT:

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.

16.0 INFORMATION TECHNOLOGY FOR DIGITAL TRANSFORMATION:

Your Company has truly embarked on a digital journey as a strategic imperative with key focus on re-defining business processes and models for operational excellence and to enhance agility, speed, and data-driven decision making.

As an underlying strong and robust transactional layer, your company has adopted SAP Enterprise Resource Planning (ERP) application which integrates business functions such as Sales & Distribution, Finance & Controlling, Materials, Human Resource and Production Planning to ensure uniform process and to improve information availability as single version of truth. SAP plant maintenance module has been introduced for enhanced servicing of operations and maintenance at all the plants. Invoice Reference Number (IRN), generated from the GST Invoice Register Portal was integrated in the existing ERP Application along with e-Waybill,

GST QR code for B2C and new provisions of TDS/TCS. E-procurement of goods and services are performed through GeM portal, Central Public Procurement Portal and SAP SRM. Vendor Purchase order, Invoice and payment effected in GeM Portal has also been integrated with the ERP. Centralized employee applications and employee self-service applications are part of the digital application ecosystem. Computerised Hospital Management System is operational at the Company hospitals in Angul and Damanjodi.

Your company has introduced a new and improved Online Recruitment Portal to facilitate the recruitment process. As a precursor to Smart Factory and in an integrated approach, a centralized MIS system has been introduced to adhere to “single source of truth” and connecting “shop floor to board room”.

Your company has been adding features and facilities to the array of existing Mobile Apps for stakeholders.

e-Office has been implemented in your organization ushering in an era of transparency, accountability and speed in management of files. This system also enables authorized users to act on files within and beyond office premises. For secure and ready access to digitized documents, the e-Office Knowledge Management System has been implemented and the same is a giant step

towards a paperless transaction.

Online web-based applications such as Capital Expenditure monitoring, Fund monitoring, Compliance Management System, Vendor Bill Tracking System & Contract Labour Management System are in use for the purpose of regular tracking and monitoring. As a measure of enhanced transparency Online Vigilance portal and Complaint System has been operationalized.

To tide over the crisis of Covid-19 while ensuring office productivity and individual wellbeing, your company adopted a slew of digital measures such as e-Office, Cloud based desktop video conferencing, enhanced secure connectivity for Work from Home, email access from internet and enhancement of internet bandwidth.

Your Company has undertaken an ambitious project of “Smart Bauxite Mine”. The project shall leverage the power of next generation technologies viz. Artificial Intelligence, Robotics, Automation, Cloud, Data Analytics, AR/VR across the value chain of bauxite mining for improved productivity, Cost, Asset Utilization, Safety, Health and Environmental impact.

Your Company has the following IT infrastructures:

(a) On-premise Data Center at Corporate Office, Bhubaneswar. Data Center uses server virtualization

technologies and hosts all Centralized Applications including ERP. To ensure business continuity, a Disaster Recovery Data Center is located in a separate seismic zone. The Data Center and Disaster Recovery Center have been successfully certified for Information System Management System as per the requirements of ISO 27001:2013 standard. IT infrastructure and application security is ensured with network gateway and endpoint security solutions.

(b) Plants and Offices are interconnected with dual MPLS circuits from different service providers for uninterrupted access to applications and services hosted at Corporate Data Center. The WAN bandwidth has been enhanced to cater to the increased load triggered mainly by Covid-19 practices.

(c) Each location has Gigabit Ethernet LAN with Firewall and the Corporate Data Center has gateway protection solutions additionally. Multichannel video conferencing solution for seamless communications between all business units has been established.

17.0 TOTAL QUALITY MANAGEMENT:

17.1 Integrated Management System (IMS):

In all units i.e. Mines, Alumina Refinery, CPP, Smelter and Port Facilities, Integrated Management System based on ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 continued to be effectively implemented with regular external audits in remote mode, internal audits and management

review meetings. At the closure of financial year, certification status of all the Units w.r.t. ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 remained valid.

17.2 Energy Management System (EnMS):

The EnMS continued to be effectively implemented with regular external audits in remote mode, internal audits and management review meetings in three units CPP, Smelter and Alumina Refinery, which are included in the Perform, Achieve & Trade (PAT) scheme of Bureau of Energy Efficiency (BEE). At the closure of financial year certification status of all the three Units w.r.t. ISO 50001:2018 remained valid.

17.3 Quality Circles:

Quality Circle activity continued to be encouraging during the year, in spite of the pandemic & restrictions. Number of active QCs in the Organisation stood at 98. In the current financial year, total 25 quality circle projects were completed whereas several more were in-progress. 8 Quality Circle Teams participated in the National Convention NCQC 2021 of QCFI out of which, 4 nos. were awarded the highest Par-Excellence award. Also, 3 Quality Circle teams participated in the CII State Industry carnival in August, 2021 and the QC from Smelter was awarded the Runner-up trophy.

17.4 Kaizen by SGA Groups:

Propagation of Kaizen culture continued to be highly encouraging during the year. As per the Kaizen by SGA scheme, total 1,401 Kaizens were completed in Smelter, 838 Kaizens were completed in Alumina Refinery, 451 Kaizens were completed in CPP and 187 Kaizens were completed in Mines Unit during the reporting year

17.5 Lean Six Sigma:

At Alumina Refinery, 1 out of 2 and at Mines, 4 out of 7 Lean Six Sigma Green-belt projects were successfully completed during the financial year. Also, at Smelter and CPP units, 12 and 6 new Six-Sigma projects were taken up during the year.

17.6 Business Excellence:

(a) At Alumina Refinery, assessment for CII-EXIM Bank Award, 2021 was carried out by independent assessors during October, 2021 and the Unit bagged the prestigious CII-EXIM Bank Business Excellence award for the year 2021 in the ‘Platinum’ Category during the CII-IQ National Quality Summit held in November, 2021.

(b) At Panchpatmali Bauxite Mines, assessment was completed during November, 2021 and the Unit secured the prestigious “Gold Plus” category recognition in the CII-EXIM Bank Award for Business Excellence, 2021.

(c) At Smelter, preparations for next assessment on holistic Business Excellence continued during the year with a ‘people perception survey’.

17.7 5S System Implementation:

At both Mines and Alumina Refinery, recertification audits of 5S-Work Place Management

System were successfully conducted by M/s. QCFI, in addition to regular internal assessments and review meetings by Unit Management.

At both Smelter & CPP, Plant-wide 5S Workplace Management System continued to be effectively implemented with regular internal assessments.

18.0 IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY:

(a) Your Company continues to comply with the provisions of the Official language and other guidelines issued by the Government agencies and statutory bodies from time to time.

(b) Your Company also holds the Chairmanship position of TOLIC, Bhubaneswar and Angul. Scheduled meetings have been organized at both the locations involving all local PSUs Offices. In this regard, your Company’s efforts have been appreciated in the meetings by the representatives of RIO, Government of India.

(c) Your Company took several initiatives for the progressive use of Hindi in the day-to-day official work and implementation of Official Language policy of the Union of India. Quarterly meetings of Corporate Level Official Language Implementation Committee were held under the chairmanship of Chairman-cum-Managing Director, in which extensive discussions took place on progressive use of Hindi and the ways and means to bring about further improvements.

(d) Hindi Fortnight, 2021 was observed in all the Production Units, Corporate Office and Regional Offices to propagate linguistic harmony and to motivate the employees for the progressive usage of Hindi in their day-to-day work. Several competitions were organized for the employees, employee’s dependents and students during the Hindi Fortnight.

(e) Hindi workshops/trainings were organized on regular basis at Corporate Office and all production units including regional offices. Apart from this, several training-cum-motivation programs were also conducted for the member offices of TOLIC(U), Bhubaneswar.

(f) Your Company also publishes its quarterly magazine ‘Sanginee’ and Six monthly Hindi magazine “Akshar” to promote Hindi language.

(g) Vishwa Hindi Divas was celebrated across your Company on 10th January, 2022. To mark the occasion, a week-long series of activities were organized at corporate offices and all the production units.

19.0 SPORTS:

(a) Since inception your company, as a leading PSU of the country has been contributed to the field of promotion of sports at state/national and international level.

(b) Your company is pioneer in recruiting ace sport personalities of international stature who have made your country and your company pride.

(c) Your company has been supporting as well as facilitating and nurturing the budding young sports talents of the state and country to make them ready for national and international events.

(d) Your Company has encouraged various young players as well as sports persons of the Company to participate in different state level, national level

as well as international level tournaments & sports activities.

(e) The following eminent sports personalities of your company have been entrusted with various responsibilities by the sports apex bodies of the Country and State:

(i) Shri Debasis Mohanty, a former pace bowler of Indian National Cricket Team has been continuing as a member of All-India Senior Selection Committee Panel, as appointed by BCCI.

(ii) Shri Shiv Sundar Das, a former Opening Batsman of Indian National Cricket Team has been appointed as batting coach for the women cricket team for New Zealand tour and ICC Women World Cup, 2022 by BCCI.

(iii) Ms. Anuradha Biswal, an Indian former track and field athlete who specialized in 100-meter hurdles having Bronze in 2000 Asian Championship & Gold in 2006 South Asian Games in her credit is now representing as a National Co-ordinator in Athletics of All India Public Sector Sports Control Board (AIPSSCB) and also imparting fitness training to the aspirant young sports talents of the country at Kalinga Stadium, Bhubaneswar.

(iv) Ms. Sradhanjali Samantaray, is a former skipper

of Indian National Women Football Team was appointed as Head Coach for Odisha State Women football team during the Hero Senior Women National Championship 2021-22 held at Kerala.

(v) Ms. Aparajita Gochhikar, a Chess Candidate master and three time medallist in Commonwealth Championship (once Gold & two times Silver) recently awarded with International Arbiter (IA) Norm in 47th National Women Chess Championship held at Bhubaneswar from 24th February, 2022 to 2nd March, 2022.

20.0 VIGILANCE ADMINISTRATION:

Vigilance Administration and Systems established in your Company are furnished below:

(i) Your Company has a well-established Vigilance Department headed by a Chief Vigilance Officer (CVO) who is appointed by Government of India from officers of Central Civil Services or Officers from other Services of Government of India. Other supporting 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 at Bhubaneswar, S&P Complex at Angul and M&R Complex at Damanjodi.

(ii) The Chief Vigilance Officer (CVO) acts as an advisor to the chief executive in all matters pertaining to vigilance. He also provides a link between organisation and the Central Vigilance Commission on one hand and the organisation and the Central Bureau of Investigation on the other. Vigilance functions to be performed by the CVO are of wide sweep and include collecting intelligence about the corrupt practices committed or likely to be committed by the employees of the organisation; investigating or causing an investigation to be made into verifiable allegations reported to him; processing investigation reports for further consideration of the disciplinary authority concerned; referring the matters to the Commission for advice wherever necessary; taking steps to prevent improper practices or commission of misconducts; examining audit, inspection and other reports from the point of vigilance angle, etc. The vigilance functions are in the nature of preventive, punitive, surveillance & detection.

20.1 Functions of CVO:

The functions of CVO are as follows:

(i) Overall Vigilance Administration of the Company.

(ii) Maintaining coordination with CVC and CBI, Police etc. besides organizing structured review meeting with CMD.

(iii) Furnishing of various return/report to Ministry/ CVC/CBI.

(iv) Assisting CVC in coordination with Independent External Monitors (IEMs) for implementation of I.P (Integrity Pact) in the Organisation.

(v) Assisting management in formulation/updation of anti-corruption policies/measures.

(vi) Assisting management in development of Integrity/ transparency Index for ascertaining the fairness, transparency & equity in various domain functions & overall management.

(vii) Organizing training on Vigilance Awareness, Vigilance Administration, case studies etc.

(viii) Conducting Periodical Systemic study in the Organisation & offering systemic suggestions for implementation to help the Company to effectively manage its affairs in more transparent & fair manner.

(ix) Inculcating culture of Overall Integrity at the Company Level.

20.2 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 behaviour.

The purpose of this policy is to provide a framework

to promote responsible and secure whistle blower culture for reporting wrong doings and complaints with protection to the informer by concealing the identity of the complainant. 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 www.nalcoindia.com.

Wide circulation and campaign was carried out during the financial year for popularising the Whistle Blower Policy in your Company, so that reporting of the irregularities, wrongdoings and complaints can be reported without hesitation which would help prompt recourse by Vigilance Department in particular and by the management in general.

20.3 Corruption Risk Management Policy:

Corruption is a serious 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. Well elaborated systems of checks and balance are in place.

20.4 Fraud Reporting:

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

Your Company has a Board approved Fraud Prevention Policy and the same is placed in the Company’s website www.nalcoindia.com

20.5 Online Data Updation on Dopt Portal:

In line with CVC and DoPT directives, your company responded actively in regularly updating the data of the executives at DGM (E-6) and above, on the web portal https://doptapp.nic.in/solve/

20.6 Outreach Activity:

Your Company has conducted Outreach Activity or Integrity Pledge Drive at various schools and colleges in and around the Company’s head office (at Bhubaneswar) and plant complexes (at Angul and Damanjodi) wherein approx. 1,350 citizens (general public, employees of the Company, students and others) have been undertaken Online/offline Integrity Pledge.

20.7 Online Vigilance Portal:

This portal has been developed to provide information about vigilance structure in your Company, its different activities, practices or initiatives undertaken by the Vigilance dept. and to provide scope to lodge the complaint in paperless mode promptly by anyone including general public and all stake holders of the company & to check the status of the complaint in online mode. The complainant can log-in by providing their e-mail and mobile number & authenticated by OTP, which is sent to them. This portal is easy and simple to operate and lodge complaints including viewing updated status of the complaints lodged. It may be accessed through the Company’s website at www.nalcoindia.com.

21.0 RIGHT TO INFORMATION:

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 2021-22:

Particulars

Requests

First

Appeals

Under Process as on 01.04.2021

26

0

Received during the year (including cases transferred from other Public Authority)

508

46

No. of cases transferred to other Public Authorities

1

0

Decisions where requests/ appeals rejected

97

4

Decisions where requests/ appeals accepted and settled

429

42

Under Process as on 31.03.2022

7

0

Third party Transparency Audit for the year 2020-21 of your Company has been carried out by M/s. National Productivity Council, New Delhi with satisfactory remarks.

The RTI requests and appeals are received and replied through both physical and online mode. Your Company is aligned with online RTI portal of Department of Personnel and Training (www. rtionline.gov.in ) with effect from January, 2017.

22.0 LISTING IN STOCK EXCHANGES & PAYMENT OF LISTING FEES:

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 financial year 2022-23 have been paid on time to the Stock Exchanges.

23.0 SERVICE TO SHAREHOLDERS:

All matters relating to 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. KFin Technologies Limited (Formerly KFin Technologies Private Limited), Hyderabad.

24.0 PAYMENT OF ANNUAL CUSTODY/ ISSUER FEES TO DEPOSITORIES:

Annual connectivity fees and custody fees/issuer fees for the financial year 2022-23 have been paid on time to both M/s. National Securities Depository Ltd. and M/s. Central Depository Services (India) Ltd.

25.0 BUSINESS RESPONSIBILITY REPORT:

In line with Regulation 34(2)(f) of SEBI (LODR) Regulations, 2015, a Business Responsibility Report for 2021-22 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.

25.1 Reports on Sustainable Development:

(a) The mandatory report on sustainability i.e. the Business Responsibility Report addressing the

economic, environmental, social & governance aspects as required by SEBI, is completed and published.

(b) In addition to above report, a standalone report is prepared on voluntary basis, aligned with Global Reporting Initiative (GRI) Standards Core option.

26.0 CONSERVATION OF ENERGY, I TECHNOLOGY ABSORPTION AND i FOREIGN EXCHANGE EARNINGS AND i OUTGO:

26.1 Research & Development:

(a) Since inception, 42 patents have been filed out of which 23 have been granted and 7 have been commercialized. 03 patent applications were filed and 02 patents were granted in financial 2021-22. Research & Scientific Advisory Committee (RSAC) meetings are being held periodically to review the R&D activities of the Company.

(b) Under the Development Cooperation Agreement signed with RTA/AP, development of low energy cell technology for smelter plant (AP2XN0) successfully implemented in financial year 2020-21 in trial pots, yielding an energy saving of 150 KWH/T, is being implemented in balance pots in phases.

(c) Renewal of recognition by Department of Scientific & Industrial Research (DSIR), Govt

of India for all 3 R&D units of your Company i.e. NRTC, Bhubaneswar; Smelter Plant, Angul and Refinery Plant, Damanjodi obtained for a period of 3 years i.e. up to March, 2024.

(d) R&D Trials with new generation grain refiner in Billet Casting Facility (BCF) completed in Smelter Plant.

(e) R&D Project on “Extraction of Alumina from Indian PLK ore using nitric acid process route: Phase 3 Activities at laboratory scale-Optimization of process parameter” completed with CSIRO, Australia, that did not yield desired result.

(f) A bench scale study, jointly by 3 R&D institutes (JNARDDC, CSIR-NML and CSIR-IMMT) and 3 industries (NALCO, HINDALCO and VEDANTA) for ‘Technology development for

holistic utilization of red mud for extraction of metallic values & residue utilization’ is in progress.

(g) Bauxite Certified Reference Material (CRM) through inter laboratory comparison exercise in collaboration with NCCCM, BARC Hyderabad successfully developed.

(h) Process for making Zeolite 13X trial in collaboration with CSMCRI, Bhavnagar successfully developed.

(i) A novel process successfully developed in bench scale for recovery of Al metal from dross using nano technology, hereby reducing energy consumption.

(j) Three in-house R&D proj ects titled “Preliminary studies on the suitability of NALCO alumina tri-hydrate for de-fluoridation purpose”; “Heat treatment/ annealing combined with medium boron treatment helps increase in electrical conductivity” and “Homogenization Time-Temperature study of 6000 series DC cast Aluminium billet” are in progress at NALCO Research & Technology Centre (NRTC), Bhubaneswar.

(k) Benefits Derived as a Result of The R&D (InHouse & Collaborative): Based on a completed R&D projects in 2021-22:

(i) AP2XNO pot technology trials in smelter plant show a reduction of DC Energy of 150 KWH / Ton of metal.

(ii) New process developed for making Zeolite 13 X at Refinery Plant.

(iii) Certified Reference Material (CRM) of Bauxite, 1st of its kind developed indigenously.

(iv) A new process for recovery of Al metal from Al dross developed in bench scale which has a commercialization potential.

(l) As on 31st March, 2022, 06 in-house projects and 20 collaborative projects are in progress.

(m) Three technical papers were presented and published in ICSOBA 2021 conference.

26.2 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.

27.0 DIRECTORS’ RESPONSIBILITY STATEMENT:

Pursuant to the provisions of Section 134(3)(c) and

134(5) of the Companies Act, 2013, your Directors hereby

confirm that:

(a) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) 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;

(c) 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;

(d) The Directors had prepared the annual accounts on a going concern basis;

(e) 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

(f) 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.

28.0 CORPORATE GOVERNANCE:

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.

29.0 CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES:

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

Your Directors draw the attention of the members to note no. 39 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.

30.0 DIRECTORS AND KEY MANAGERIAL ! PERSONNEL:

30.1 Directors:

The following changes took place in the Board of

Directors of your Company since the last report:

30.1.1 Appointment:

(a) Ministry of Mines, Govt. of India vide Order No. 2/8/2020-Met-I dated 10.11.2021 appointed 7 (Seven) Part-time Non-official (Independent) Directors (Shri Ravi Nath Jha, Dr. B. R. Ramakrishna, Adv. George Kurian, Dr. Ajay Narang, Shri Y. P. Chillio, Ms. (Dr.) Shatorupa and Adv. Dushyant Upadhyay) for a period of three years and further, vide Order No. 2/8/2020-Met-I dated 22.03.2022 appointed Shri Sanjay Ramanlal Patel as a Part-time Non-official (Independent) Director for a period of three years.

(b) Dr. Veena Kumari Dermal, IPoS, was appointed as a Part-time Official Director w.e.f. 20.01.2022.

(c) Shri Ramesh Chandra Joshi was appointed as Director (Finance) w.e.f. 04.02.2022.

(d) Shri Sadashiv Samantaray was appointed as Director (Commercial) w.e.f. 22.03.2022.

30.1.2 Cessation:

Tenure of Shri Satendra Singh, IAS as Part-time Official Director ended on 20.01.2022.

30.1.3 Key Managerial Personnel:

In accordance of the provisions of the Act, the following are the Key Managerial Personnel of your Company:

(a) Shri S. Patra, Chairman-cum-Managing Director.

(b) Shri R. S. Mahapatro, Director (HR).

(c) Shri M. P. Mishra, Director (P&T).

(d) Shri B. K. Das, Director (Production).

(e) Shri Ramesh Chandra Joshi, Director (Finance).

(f) Shri Sadashiv Samantaray, Director (Commercial).

(g) Shri N. K. Mohanty, Group General Manager and Company Secretary.

30.1.4 Declaration of Independence by Independent Directors:

Your 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.

30.1.5 Meetings of the Board:

During the year, 6 (Six) Board meetings were held. Details of the meetings are available in the report on Corporate Governance (Annexure-V) placed in this Annual Report.

30.1.6 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 in this report.

30.1.7 Postal Ballot process for appointment of Directors:

Shareholders of your Company have approved appointment of new Directors through Postal Ballot process dated 11.03.2022 and 28.04.2022 in compliance with the amended Regulations 17(1C) and 25(2A) of the SEBI (LODR) Regulations, 2015 with required ordinary/special resolutions.

31.0 ANNUAL RETURN:

In accordance with the Companies Act, 2013, the Annual Return for the financial year 2021-22 in the prescribed format is available in your Company’s website at https:// nalcoindia.com/wp-content/uploads/2022/08/Annual-Return-2021-22-Draft.pdf

32.0 GENERAL

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:

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

(b) Issue of equity shares with differential rights as to dividend, voting or otherwise.

(c) Issue of shares, sweat equity shares and ESOS to employees of the Company.

(d) Neither Chairman-cum-Managing Director nor the Whole-time Directors of the Company received any commission from the Company.

(e) 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 and notification dated 5th July, 2017.

(i) 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) of the Companies Act, 2013 (“Act”).

(ii) 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 of the Act.

(iii) 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 of the Act.

33.0 SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:

Your Company has a policy on prevention, prohibition and redressal of sexual harassment of women at workplace in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, prohibition & Redressal) Act, 2013. Internal Complaints Committees have been formed at the production Units and Corporate Office of the Company to redress complaints received regarding sexual harassment. All the Committees in place have been formed as per the guidelines of the Act. One case was reported under the Sexual Harassment of Women at Workplace (Prevention, prohibition & Redressal) Act, 2013 during 2021-22.

Regular training programs are conducted for employees to sensitize them on the issue of sexual harassment at workplace and its prevention, prohibition and redressal.

34.0 PARTICULARS OF LOANS,GUARANTEES AND INVESTMENTS:

Details of Loans, Guarantees 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 nos. 9 and 11 to Standalone Financial Statements 2021-22.

35.0 SUBSIDIARIES, JOINT VENTURE COMPANIES AND ASSOCIATED COMPANIES:

In accordance with the provisions of Section 129 (3) of the Companies Act, 2013 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 nos. 41 and 42 of the Consolidated Financial Statements for the year ended 31.03.2022 respectively. Salient features of JV/Associate companies in Form AoC-1 (Note 42) forms integral part of the consolidated financial statement of the Company.

36.0 AWARDS & ACHIEVEMENTS:

(a) Your Company’s Panchpatmali Bauxite Mines was awarded 5 Star Rating by Ministry of Mines for sustainable Mining.

(b) Your Company’s Panchpatmali Bauxite Mines has been awarded in the 17th CII Odisha State ESH Awards 2021 competition, for sustainable mining practices.

(c) Your Company’s Panchpatmali Bauxite Mines has also been awarded the prestigious Pollution Control Excellence Award 2021 by the State Pollution Control Board, Odisha, for effective pollution control measures and sound environment management practices.

(d) Your Company’s Alumina Refinery Plant at Damanjodi, Odisha bagged the prestigious Kalinga Environment Excellence Award for adopting outstanding practices in environmental management and pollution control.

(e) Your Company has been conferred with the Best CSR Award by Public Relation Council of India (PRCI) Vizag, Andhra Pradesh Chapter for its

commitment towards downtrodden through CSR & HR activities.

(f) Your Company’s Panchpatmali Bauxite Mines has won the prestigious 21st Annual Greentech Environment & Sustainability Awards, 2021 for outstanding achievements in the field of environment protection.

(g) Your Company’s Alumina Refinery bagged the CII EXIM Bank Business Excellence Platinum award & Panchpatmali Bauxite Mines received the award in Gold plus category at CII National Quality Summit.

(h) Your Company’s Panchpatmali Bauxite Mines bagged Kalinga Safety Excellence Platinum Award for its safe mining practices and Alumina Refinery bagged Gold Award at the Odisha State Safety Conclave.

(i) Your Company’s unwavering commitment towards an energy efficient India, received due recognition as Smelter & Power Plant, Angul bagged the prestigious Energy Conservation Award, 2021 with highest rating in Large Scale Category, conferred by CII.

(j) Your Company received the Kalinga HR Excellence Award organized by Institute of Quality & Environment Management Services (IQEMS) in collaboration with Institute of Public Enterprises, Hyderabad and Odisha State Productivity Council, Bhubaneswar.

(k) Your Company bagged the Non-Ferrous Best Performance Award, 2020-21 instituted by the Indian Institute of Metals (IIM), under the large scale manufacturing unit category.

(l) Your Company received prestigious Golden Peacock Award, 2021 for Sustainability in the Mining & Metal sector. The Award recognizes our focus on environmentally-sustainable practices.

37.0 COMMENTS OF COMPTROLLER AND AUDITOR GENERAL OF INDIA ON THE FINANCIAL STATEMENT OF THE COMPANY:

Annual Financial Statements both standalone and consolidated as approved by Board were submitted to the office of Director General of Commercial Audit for their comments. The Comptroller and Auditor General of India has issued ‘Nil’ comments on both the standalone and consolidated financial statements for the year ended 31.03.2022 vide letters dated 28.07.2022, issued by Office of Director General of Audit (Mines), Kolkata.

38.0 AUDITORS:

38.1 Statutory Auditors:

M/s. GNS & Associates, Chartered Accountant and M/s. A. K. Sabat & Co., Chartered Accountant are appointed as joint statutory auditors of the company by the Comptroller and Auditor General of India for the financial year 2021-22.

The Statutory Auditors report on the Standalone and Consolidated Financial Statements have already been placed before the Board in its meeting held on 25.05.2022.

38.2 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 2021-22.

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. Niran & Co., Cost Accountants as the Cost Auditors for the year 2021-22.

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

38.3 Secretarial Auditors:

M/s. Deba Mohapatra & Co., Practicing Company Secretaries were re-appointed for undertaking Secretarial Audit job of your Company for 202122 in terms of Section 204 of the Companies Act, 2013 and Rules made there under. The report of the Secretarial Auditors along with managements’ explanation on observations of the Secretarial Auditors are enclosed as Annexure VII to this report.

Further, the tenure of M/s. Deba Mohapatra & Co., Practicing Company Secretaries as Secretarial Auditors of the Company completed on 31.03.2022 and the Board of Directors approved the appointment of M/s. SKM & Associates, Practicing Company Secretaries as Secretarial Auditors of the Company for a period of two financial years i.e. 2022-23 and 2023-24.

38.4 Internal Auditors:

Your Company has appointed the following Chartered Accountant firms for carrying out Internal Audit functions of the Company for the financial year 2021-22:

Unit

01.04.2021 to

30.09.2021

01.10.2021

to

31.03.2022

Corporate Office, Bhubaneswar

M/s. SRB & Associates

M/s. Agasti & Associates

M&R Complex, Damanjodi Port Facility, Visakhapatnam

M/s. Rao & Kumar

M/s. B V Rao & Co LLP

CPP, Angul

M/s. Tej Raj & Pal

Smelter, Angul

M/s. B.N. Mishra & Co.

Regional Office -East (Kolkata)

M/s. Roy & Bagchi

M/s. J. F. Dastoor & Co.

Regional Office -West (Mumbai)

M/s. MKPS & Associates

M/s. ANPJ & Co.

Regional Office -North (Delhi)

M/s. Bhatia & Bhatia

M/s. Pradeep Gopal & Co.

Regional Office -South (Chennai)

M/s. Raghavan & Muralidharan

M/s. Manohar Choudhry & Associates

39.0 ACKNOWLEDGEMENT:

Your Directors acknowledge the excellent support extended by the Government of India particularly Ministry of Mines, DIPAM, DPE and other Ministries/ Departments of the Government of India, various Ministries/Departments of the Government of Odisha, various PSUs in Company’s value-added chain, all stakeholders and investors and 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 and commitment shown by all employees/contractors and contract workers. The Board of Directors also endorse and appreciate the hard work demonstrated by the employees of all levels, trade unions and officers associations to keep the Plant/Units operational during COVID-19 pandemic situation. The Company’s consistent growth was made possible due to belongingness, solidarity, co-operation and support received from all fronts.

For and on behalf of Board of Directors (Sridhar Patra)

Place : Bhubaneswar Chairman-cum-Managing Director Date : 16.08.2022 DIN : 06500954

1

Including Special Grade Hydrate

Your Company achieved highest ever Aluminium Metal sales and highest ever domestic sales of Alumina chemicals since inception during 2021-22. After experiencing COVID-induced sluggish domestic demand for Aluminium metal during the FY 2020-21, which resulted in large volumes of metal being exported, your Company registered a 40% jump in domestic metal sales and 8% increase in overall metal sales in 2021-22, which was in sync with the highest ever metal production achieved during the FY 2021-22.

2

Projected figures published by CRU for the period Jan.-June, 2022 have been extrapolated to arrive at 2022 figures (Source: CRU).

Director’s Report