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UNIT 2017-18 Bauxite MT 70,25,109 Alumina Hydrate MT 21,05,500 Aluminium MT 4,25,515 Power (net) MU 6,547 Wind Power MU 252 PHYSICAL FINANCIAL
Export Turnover ` in crore 4,075 Gross Sales ` in crore 9,505 Profit Before Tax ` in crore 2,039 Profit After Tax ` in crore 1,342 Earning Per Share ` 6.94 Book Value per Share ` 54.35 ` per Share 5.70 Dividend The year at a glance Contents
1 Directors’ Report REGISTERED OFFICE & CORPORATE OFFICE
NATIONAL ALUMINIUM COMPANY LIMITED
NALCO Bhawan, Plot No. P/1, Nayapalli
Bhubaneswar - 751 013, Odisha
Tel. : 0674-2301989-99
Email: [email protected]
37th Annual General Meeting
Wednesday, the 29th August, 2018 at 11.00 A.M.
at NALCO Bhawan, P/1, Nayapalli,
Bhubaneswar - 751 013. 9 Annual Report on CSR Activities 25 Management Discussion & Analysis Report 28 Business Responsibility Report 41 Report on Conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and outgo 57 Report on Corporate Governance 62 Extract of Annual Return 84 Secretarial Audit Report 90 Independent Auditor’s Report &
Financial Statements (Standalone) 98 Independent Auditor’s Report &
Financial Statements (Consolidated) 152 5 years performance at a glance - Physical & Financial 207 Offices and Customer Contact Centres 210 37th ANNUAL REPORT 2017-18 | 1 BOARD OF DIRECTORS Dr. Tapan Kumar Chand Shri K C Samal Chairman-cum-Managing Director
Dr. Tapan Kumar Chand joined the company as Chairman-cum-Managing Director on
27.07.2015. Dr Chand is a highly competent and experienced professional having more than 30
years of rich experience in Mining and Metal Sector, out of which 8 years are at the helm of Affairs
as Director in Coal & Steel sector.
An outstanding scholar and gold medalist in his student career, he has undergone training in
International Centre for Promotion of Enterprises in Slovenia and Queensland University of
Technology, Australia. He received Jawaharlal Nehru Award for outstanding performance as a
Dr. Chand has recently launched his 2nd edition book, “Aluminium : The Future Metal”, which
is just like a one–stop–shop providing much information on entire Aluminium Value Chain. His
previous book ‘Aluminium :The Strategic Metal’ was well acclaimed by engineers, entrepreneurs,
researchers, educationists & the corporate world.
He has been conferred with “D.Lit”, the highest honour of Utkal University in recognition of
his outstanding contribution towards Industry, Business Management & Nation Building.
Hon’ble Governor of Jharkhand conferred him with highest management award ‘Ravi J Matthai
National Fellow Award’ constituted by Association of Indian Management Schools. Times of
India has conferred on him “The Achievers Odisha Award” and National Institute of Personnel
Management, the National Fellow Award for his distinct contribution in the field of Human
Resource Management. Dr. Chand is the President of Aluminium Association of India, the apex
body representing the entire spectrum of Indian Aluminium Industry Director (Finance) Shri K.C.Samal is the Director (Finance) of the Company
A Fellow Member of Institute of Cost Accountants of India,
Shri Samal has over 3 decades of experience in multifarious
finance & accounts functions with significant exposure in
the areas of Corporate Accounts, Audits, Treasury & Foreign
Exchange Management, Investor Relations, Budgeting and
Control. He has played a key role in Capital Restructuring,
Project Finance, Foreign Debt Management, Risk
Management, Cost Management, Corporate Strategy etc.
Presently he is also spearheading the Corporate Planning
and Strategic Management activities of the Company.
Under his guidance the Corporate Plan (2017-2032) of the
company has been developed envisioning short & long term
strategic business initiatives, functional transformation,
risk assessment with remedial measures, development
of decision support system and change in organization
structure at macro level. Shri V Balasubramanyam
Director (Production) Shri Basant Kumar Thakur Shri V. Balasubramanyam joined the Company as Director (Production)
w.e.f. 01.01.2015. Shri Basant Kumar Thakur is the Director (HR) of the Company w.e.f. 04.07.2016. Born on 01.12.1960, Shri V Balasubramanyam completed his B.Tech in
chemical engineering and joined NALCO as a Graduate Engineer Trainee
(GET) in 1984. During his long service association of three decades
with NALCO, Shri Balasubramanyam has contributed significantly
from Technology adoption to absorption in the field of aluminium
technology. With his vast professional experience, which nested from
project execution to plant operation at both the production complexes of
NALCO, Shri Balasubramanyam held very critical and crucial positions in
the organization before taking over as Director (Production).
Shri Balasubramanyam is a life member of Indian Institute of Metals
(IIM), Management Committee member of Federation Indian Mineral
Industries (FIMI) and also member of Energy Panel in Odisha chapter of
the Confederation of Indian Industries (CII). 2 | NATIONAL ALUMINIUM COMPANY LIMITED Director (HR) Born on 19.12.1959, Shri Basant Kumar Thakur has a Diploma in Social Works along
with a degree in History from Punjab University. He started his career in SAIL in 1981
and since then he served in various units, including Durgapur Steel Plant, Bokaro
Steel Plant, Salem Steel Plant, R&D Centre in Ranchi and Corporate Office in New
Delhi, prior to joining NALCO as Director (HR). Shri Thakur is a hands on Human
Resources professional with comprehensive experience including recruitment,
retention, conflict resolution, change management, labour relation and benefit
administration. He has four years of experience in Corporate Communications. In
SAIL, he had collaborated with senior management to conduct organizational wide
strategic planning in order to support and further the organizational goals. He played
a vital role rebuilding Human Resources Department by updating Human Resources
System, policies and procedure development, coaching, counseling, planning,
direction and management of all HR activities in his three decades long career at SAIL.
Shri Thakur is a life member of NIPM. BOARD OF DIRECTORS Shri Sanjib Kumar Roy Shri Pradip Kumar Mishra Shri Sanjib Kumar Roy is the Director (P&T) of the Company w.e.f. 03.02.2017.
Shri Roy completed B Sc (Hons in Chemistry) from Ramakrishna Mission Vidyamandir,
Belurmath and then B Tech & M. Tech in Chemical Engineering discipline from
Calcutta University. He began his career in NALCO as a Graduate Engineer Trainee in
1984. He was posted in the company’s Alumina Refinery Complex in Damanjodi since
inception of the project, where he held different key positions including two stages of
expansion before becoming the General Manager (Refinery). Thereafter in May’2012,
he was posted as General Manager (Smelter) at the company’s Smelter Plant in Angul
before his elevation as Executive Director (S&P). Shri Roy moved to the headquarters in
Bhubaneswar as Executive Director (Production) in April 2015.
Shri Roy brings to this post his vast experience in the company’s plant & operations as
well as managing projects from conceptualization to commissioning. Shri Pradip Kumar Mishra Joined the Company as Director
(Commercial) w.e.f. 23.04.2018.
Born on 12.02.1961, Shri Pradip Kumar Mishra is a Post Graduate in
English literature from Utkal University. He started his professional
career as a Management Trainee in SAIL in the year 1983. He
brings along rich and varied experiences in the field of marketing
management. During his 35 years tenure in SAIL, he served in various
positions, including being the Regional Manager in three regions of
SAIL. He headed the domestic marketing of flat products of SAIL for
over 3 years as Executive Director. Shri Mishra is the recipient of the
prestigious Jawahar Award for outstanding contribution in marketing
area in SAIL. Director (P&T) Director (Commercial)
Dr. K. Rajeswara Rao Shri Anil Kumar Nayak Dr. K. Rajeswara Rao was inducted to the Board as an
Additional director w.e.f. 19.02.2018.
Born on 1st July, 1962, Dr. K. Rajeswara Rao has degree of
Doctor of Philosophy (Ph.D.) in Social Sciences from the
University of Jamia Millia Islamia, Delhi. He belongs to
1988 batch of Indian Administrative Service (IAS) from
Tripura Cadre. He is currently working as Additional
Secretary in the Ministry of Mines, Government of
India, New Delhi. Dr. K. Rajeswara Rao has abundant
experience of working in Central Ministries, State
Governments and Public Sector Companies Shri Anil Kumar Nayak was inducted to the Board as an Additional director w.e.f. 27.03.2018.
Born on 16.05.1962, Shri Anil Kumar Nayak has done his M.A. in Politics from School of
International Studies, JNU, New Delhi and M.Phil in Ethnicity and Political development in the
Ivory Coast from Delhi University. He joined Indian Ordinance Factory Services (IOFS-1986 Batch)
on 15th Feb’ 1987. He was Deputy Director General, Ordinance Factory Board, Kolkata looking after
Industrial Relations of the entire organization comprising of 41 Ordinance factories before joining
as Chief Labour Commissioner in Ministry of Labour in August, 2015. He got wide experience of
working in other Government departments viz. Under Secretary to 5th Pay Commission, Deputy
Secretary in Ministry of Defence, Regional Provident Fund Commissioner Gr.-I of Bihar and
Odisha, Director in Ministry of Mines. He has been appointed as Joint Secretary, Ministry of Mines
in March, 2018. He brings with him varied experience in technical as well as administrative fields. Part-time Official Director Shri Dipankar Mahanta
(Independent) Director Part-time Official Director Shri Dipankar Mahanta was inducted to the Board as a Part-time Non-official (Independent) Director w.e.f. 21.11.2015.
Born on 12th December, 1965, Shri Dipankar Mahanta did his MBA from Guwahati University and started with an entrepreneurial
venture named M/s Consort Marketing, with an objective of marketing small scale industries products. Subsequently, he joined
and served the Guwahati Stock Exchange in various capacities concerning the Indian Capital Market. He was the promoter
director of Economic and Industrial Development Collaborative (India) Pvt. Ltd. a company with an object for imparting
quality consultancy services and its implementation in the North East Region (NER). He was a consultant in designing and
implementing a Handmade Paper unit for L.B.Agro Private Ltd near Guwahati. He was involved as co-consultant in projects
like Diagnostic Study of Industrial Training Institutes (ITI’s) of the NER for the NEC, Feasibility Study of a Market Complex
Exclusively Selling Handloom and Handicraft Products for NEHHDC, Study of the factors affecting the Process of Language
Learning for DPEP, Study on ‘Bamboo and Bamboo Products in Assam’ for National Bamboo Mission, Study on ‘Socio-economic
Study of the Brick Field in Assam’ for Pollution Control Board, Assam. He served Vivekananda Kendra, a voluntary organization
in various capacities and later on he was the Associate Director, Research Council of the Vivekananda Kendra Institute of Culture
(VKIC), a specialized project on Cultural Documentation and Research of India’s North East. He also had the opportunities to
serve CAPART (NEZ) under the Ministry of Rural Development, Government of India.
He is presently working in the field of Social Entrepreneurship with various social organizations, prominent amongst them is
Vivekananda Kendra and Srimanta Foundation for Culture and Society. He is also a resource person and trainer for sessions on
‘Knowledge of Self and its Management ’. 37th ANNUAL REPORT 2017-18 | 3 BOARD OF DIRECTORS Shri S. Sankararaman Part-time Non-Official (Independent) Director
Shri S. Sankararaman was inducted to the Board as a Part-time
Non-Official (Independent) Director from 21.11.2015.
Born on 19th May, 1962, Shri S. Sankararaman is a fellow
member of the Institute of Chartered Accountant of India (ICAI).
Shri S. Sankararaman is affected by muscular dystrophy and a
wheelchair user from the age of 12. He is presently the Honorary
Secretary of Amar Seva Sangam, an Institution for betterment
of the handicapped and under privileged. He started his career
in 1985 rendering professional services to various corporates
before joining the Amar Seva Sangam in 1992. His mission is
to empower the disabled citizen by establishing a “Valley for
the Disabled” as a Rehabilitation and Development Centre for
the region and developing models for self-help initiatives by
integrating the disabled individuals with the society for improved
living conditions in the villages.
He is a champion for the rights of the disabled persons and believes
that disability is not a constraint but only a condition which can
be managed with the right combination of rehabilitation and
enablement. He has been instrumental in developing Amar Seva
Sangam from scratch to its current position of leadership in the
field of disability management with state-of-the-art infrastructure
and deliver high quality rehabilitation programs across all age
groups and across all disabilities. He is a pioneer in developing
innovative models for rehabilitation of persons with disabilities
with the involvement of community and has spearheaded a Village
Based Rehabilitation Initiative which is acknowledged to be one
of the best models in the country. He believes in professionalizing
the NGO sector and has computerized all the activities of Amar
Seva Sangam with systems and processes. He organized national
level seminar on law on handicapped resulting in the enactment
of Persons with Disabilities Act by the Indian Parliament in 1996
and many other. He participates in various marathons particularly
the Standard Chartered Mumbai Marathon from its inception
and has paved way for the inclusion of disabled persons in such
sporting events. He has presented papers on the rights of disabled
in various forums across the country. He is a trustee and board
member of several nonprofits including the Gandhigram Trust
(Treasurer), Gandhigram, Dindigul, the Collective action for
Basic Rights Foundation (Hon. Vice President), Bangalore, Tamil
Nadu Udavikkaram Association for Differently Abled, (Founder
Member), Chennai, National Institute for Empowerment of
Persons with Multiple Disabilities (Member) and from 5th
May 2017 he has been appointed as a Member, Tamil Nadu
State Commissionerate for the Differently Able, Chennai, to
represent persons with loco-motor disabilities. He was conferred
with the Ashoka Fellowship for innovation and received
several awards at the State, National and International levels in
recognition of his services, which include a State Award from
the Chief Minister of Tamil Nadu and National Awards from the
President of India twice. 4 | NATIONAL ALUMINIUM COMPANY LIMITED Shri Pravat Keshari Nayak Part-time Non-Official (Independent) Director
Shri Pravat Keshari Nayak was inducted to the Board as a Part-time Non-Official
(Independent) Director from 21.11.2015.
Shri Pravat Keshari Nayak, Chartered Accountant by profession is senior partner of
leading CA Firm M/s. P. K. Nayak & Co., rendering comprehensive professional services
to Government and private sectors. With a career spanning over three decades, his vast
repertoire of financial expertise and experience spans across the public and private sectors
and several corporates, banks and other financial institutions. He has consulted for Adam
Smith International, UK on public sector reforms for restructuring of PSUs in Odisha. He
also holds degrees in Laws and diploma in Information System Audit (ICAI).
Besides undertaking audits for government and as Independent auditor in large social sector
projects, he has proactively offered guidance to young entrepreneurs and start-ups. He has
also been a part of many national seminars and conferences related to Finance, taxation
and audits. Prof. D. Acharya Part-time Non-Official (Independent) Director
Prof. Damodar Acharya was inducted to the Board as an Independent Director on
Born on 2nd April, 1949, Prof. Damodar Acharya holds degree in Mechanical Engineering
from NIT, Rourkela, Masters and PhD degrees from IIT, Kharagpur. He joined the Industrial
Engineering faculty in the same institute in 1976. He has left his indelible mark in all the
responsibility that he has taken in the institute, be it as head of the Department, Chairman
JEE, DEAN (Sponsored Research and Industrial Consultancy), Executive Director STEP,
Chairman of Vinod Gupta School of Management or as the Director of this first and the
largest IIT in the Country.
As Founding Vice Chancellor of Biju Patnaik University of Technology, he laid a foundation
of a robust Technical University Education system that is being emulated by others. He was
the Chairman of All India Council of Technical Education.
He played important role in the establishment of IIT Bhubaneswar and was its first Mentor
Director. He remained non official Director in the Central Board of RBI for four years and as
an Independent Director in RCF for three years.
Prof. Acharya is a Member of Chhatisgarh State Planning Commission. He is also in
the Boards of IDCO and State Pollution Control and Chairman of the Advisory Board of
SOA University. BOARD OF DIRECTORS Ms. Kiran Ghai Sinha Shri Maheswar Sahu Part-time Non-Official (Independent) Director Part-time Non-Official (Independent) Director Shri Maheswar Sahu was inducted to the Board as a Part-time Non-official
(Independent) Director w.e.f. 21.11.2015.
Shri Maheswar Sahu has done B.Sc. (Engg.) in Electrical in 1977 from NIT,
Rourkela and M.Sc. from University of Birmingham in 1994. He joined Indian
Administrative Service (IAS) in 1980. He has served the Government of India
and Govt of Gujarat in various capacities for more than three decades before
retiring as Additional chief secretary, Govt. of Gujarat in 2014. His career span
includes more than 20 years of service in industry and more than 10 year of
active involvement in PSU management. He had worked more than 3 years in
United Nations Industrial Development Organization. He was instrumental in
organization of four Vibrant Gujarat events.
He served as director in many CPSEs. He was also Chairman/ Director in many
State PSUs. He is now associated with a number of companies as Independent
Director/Chairman. His area of specialization includes strategic management,
public administration, corporate governance etc. Ms. Kiran Ghai Sinha was inducted to the Board as a Part-time non-official
(Independent) director w.e.f. 03.02.2017.
She was senate Member, Patna University for three terms in succession. She is
also Chairperson, Scouts and Guides Fellowship, Bihar. She is member (Non
Govt.), Hindi Salahkar Samiti, Ministry of Civil Aviation, Govt of India.
Ms. Sinha did her M.A. in Hindi from Patna University. She retired as an
Associate Professor, Dept. of Hindi, Patna Women’s college, Patna University.
Ms. Sinha was also member, Bihar Legislative Council (BLC) for consecutive
two terms from 2004-10 and again 2010-16. During her tenure as MLC, she
was privileged to chair 3 Committees of the house viz. Urban development
Committee, Rajbhasha Committee & Child protection Women empowerment
Committee. She was member, Local Board (Eastern Zone), Reserve Bank
of India (2001-2004) and was also member, Managing Board, Rajendra
Agriculture University, Pusa, Bihar for two terms. She was also a jury member
for non feature films category & feature film category in the 48th and 50th
National Film awards. She was a member of a state delegation to the World
Hindi Conference held at United Nations, USA (2007). Shri N N Sharma Smt. Achla Sinha Part-time Non-Official (Independent) Director Part-time Non-Official (Independent) Director Shri N N Sharma was inducted to...
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