Close
x
  • SMC open account icon Open an A/C
    • Open an A/C
    • CHOOSE YOUR OPTION(S)
    • Trading A/c
    • Mutual Fund A/c
    • NBFC A/c
    • NPS A/c
  • SENSEX Nov 27 2020 12:00
    44,149.72 -110.02 (-0.25%)
  • NIFTY Nov 27 2020 12:00
    12,968.95 -18.05 (-0.14%)
  • SENSEX Nov 27 2020 12:00
    44,149.72 -110.02 (-0.25%)
  • NIFTY Nov 27 2020 12:00
    12,968.95 -18.05 (-0.14%)
  • Nasdaq Nov 28 2020 04:30
    12,205.85 +111.45 ( +0.92%)
  • DJIA Nov 28 2020 04:30
    29,910.37 +37.90 ( +0.13%)
  • S&P 500 Nov 28 2020 04:30
    3,638.35 +8.70 ( +0.24%)
  • Hang Seng Nov 30 2020 02:10
    26,341.49 -553.19 (-2.06%)
  • Crude Oil Nov 27 2020 11:54
    3,357.00 +33.00 ( +0.99%)
  • Gold Nov 27 2020 11:54
    48,106.00 -411.00 (-0.85%)
  • Silver Nov 27 2020 11:54
    59,100.00 -773.00 (-1.29%)
  • Copper Nov 27 2020 11:54
    577.55 +7.70 ( +1.35%)
  • Pound / Rupee Dec 23 2016 22:30
    98.48 -0.09 (-0.09%)
  • Dollar / Rupee Dec 23 2016 22:30
    73.70 -0.08 (-0.11%)
  • Euro / Rupee Dec 23 2016 22:30
    87.81 -0.02 (-0.03%)
  • Yen / Rupee Dec 23 2016 22:30
    0.71 0.00 ( +0.04%)

Hindalco Industries Ltd

BSE Code : 500440 | NSE Symbol : HINDALCO | ISIN:INE038A01020| SECTOR : Non Ferrous Metals |

NSE BSE
 
SMC down arrow

225.65

-4.15 (-1.81%) Volume 280564

27-Nov-2020 EOD

Prev. Close

229.80

Open Price

230.80

Bid Price (QTY)

-/-()

Offer Price (QTY)

-/-()

 

Today’s High/Low 230.80 - 220.50

52 wk High/Low 231.10 - 85.05

Key Stats

MARKET CAP (RS CR) 50691.78
P/E 76.23
BOOK VALUE (RS) 208.6360951
DIV (%) 100
MARKET LOT 1
EPS (TTM) 2.96
PRICE/BOOK 1.08154823302193
DIV YIELD.(%) 0.44
FACE VALUE (RS) 1
DELIVERABLES (%) 53.97
4

News & Announcements

27-Nov-2020

Hindalco Industries Ltd Slides 1.15%

26-Nov-2020

Hindalco Industries Ltd - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

26-Nov-2020

Hindalco Industries Ltd - Hindalco Industries Limited - Loss of Share Certificates

24-Nov-2020

Hindalco Industries Ltd - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

02-Nov-2020

Hindalco Industries schedules board meeting

13-Oct-2020

Hindalco Industries allots 1.25 lakh equity shares under ESOP

03-Oct-2020

Novelis completes sale of former Aleris plant in Duffel

17-Sep-2020

Hindalco and Hindustan Copper sign MoU for supply of copper concentrate

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
A J Brothers Ltd 511662
Alexcon Extrusions Ltd 522114
Aluminium Industries Ltd 503928
Amco India Ltd 530133
Annapurna Foils Ltd (Merged) 513188
Arfin India Ltd 539151
Bhoruka Aluminium Ltd 506027
Bothra Metals & Alloys Ltd 535279
Century Extrusions Ltd 500083 CENTEXT
Derco Cooling Coils Ltd 504743
Equipment Conductors & Cables Ltd 517435
Ess Dee Aluminium Ltd 532787 ESSDEE
Galada Power & Telecommunication Ltd 504697 GALPOWTEL
Globus Corporation Ltd 531904 KARUNACAB
Golkonda Aluminium Extrusions Ltd 513309
Gujarat Foils Ltd 531410
Gwalior Transmission Systems Ltd 523806
Hamco Mining & Smelting Ltd (Wound Up) 500176 HINDALLOYS
Hind Aluminium Industries Ltd 531979
India Foils Ltd(merged) 509684 IFL
Indian Aluminium Company Ltd 500445 INDAL
Indo Flogates Ltd (Merged) 526648
Light Metal Industries Ltd (Merged) 513115
Lunkad Aluminium Ltd 40378
Maan Aluminium Ltd 532906 MAANALU
Madras Aluminium Co Ltd 504580 MALCO
Mahavir Aluminium Ltd 40387
Maitri Enterprises Ltd 513430
Manaksia Aluminium Company Ltd 539045 MANAKALUCO
MMP Industries Ltd 535071 MMP
National Aluminium Company Ltd 532234 NATIONALUM
Nonmag India Ltd 40282
Nortech India Ltd (Wound-up) 523600
Orissa Extrusions Ltd(under Liquidation) 513256
PALCO Ltd 513405 PENNARALUM
Parekh Aluminex Ltd 532606 PARAL
Patni Engineering Ltd 522140
PG Foils Ltd 526747
Sacheta Metals Ltd 531869
Sangam Aluminium Ltd 513297
Shree Pomani Metals & Alloys Ltd 513733
Sri Lakshmi Engineering Industries Ltd 522221
Sturdy Industries Ltd 530611
Sudal Industries Ltd 506003
Synthiko Foils Ltd 513307
Universal Prime Aluminium Ltd 504673

Share Holding

Category No. of shares Percentage
Total Foreign 576639380 25.67
Total Institutions 563961127 25.11
Total Govt Holding 287480 0.01
Total Non Promoter Corporate Holding 0 0.00
Total Promoters 778339497 34.65
Total Public & others 327125097 14.57
Total 2246352581 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Hindalco Industries Ltd

Hindalco Industries Ltd is one of the leading producers of aluminium and copper. The company's aluminium units across the globe encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium smelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines. Their copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilisers. It is a company of the Aditya Birla Group The company's units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. Several units have gone a step further with an integrated management system (IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one business excellence model. The company has been accorded the Star Trading House status in India. The company's aluminium metal is accepted for delivery under the High Grade Aluminium Contract on the London Metal Exchange (LME). Their copper quality standards are also internationally recognised and registered on the LME with Grade A accreditation. Hindalco Industries Ltd was incorporated in the year 1958. In the year 1962, the company commenced production with an initial capacity of 20,000 mtpa of aluminium metal and 40,000 mtpa of alumina at Renukoot (Uttar Pradesh). In the year 1965, they commissioned downstream capacities in Rolling and Extrusion Mills at Renukoot. In the year 1968, the company commissioned Renusagar Power Plant. In the year 1994, the company made a huge expansion, modernisation and diversification programme in their working areas. In the year 1998, foil plant of the company came to existence at Silvassa. Also, the company attained ISO 14001 EMS certification during the year. In the year 1999, the company commenced aluminium alloy wheels production at Silvassa. Also, they expanded the metal capacity at Renukoot to 242,000 tpa. In the year 2000, the company acquired the controlling stake in Indian Aluminium Company Ltd (Indal) with 74.6 per cent equity holding. The company entered 'The Asia Top 25' list of the CFO Asia Annual Report Survey, the only Indian company in 2001. In the year 2002, the company commissioned the ninth potline at an outlay of Rs 1, 800 crore. They made a major corporate restructuring to create a non-ferrous metals powerhouse. During the year, Indo Gulf Corporation Ltd's copper business, Birla Copper, was amalgamated with the company with effect from April 1, 2002. In the year 2003, the company through Aditya Birla Minerals Ltd (ABML) acquired Nifty Copper Mine. Also, in November 2003, ABML acquired the Mt Gordon copper mines. The company divested 8.6% holding in Indo Gulf Fertilizers Ltd. Also, they made brownfield expansion of aluminium smelter at Renukoot to 345,000 tpa. In the year 2004, the company expanded the copper smelter to 250,000 tpa. In the year 2005, all business of Indal, expect for the Kollu Foil plant in Andhra Pradesh, merged with the company. They commissioned copper III expansion, taking total capacity to 500,000 tpa. Also, the company signed a MoU with state governments of Orissa and Jharkhand for setting up Greenfield alumina, refining, smelting and power plants. In the year 2006, the company made a joint venture with Almex USA for manufacture of high strength aluminium alloys. The company singed an MoU with government of Madhya Pradesh for a Greenfield aluminium smelter in Siddhi. In March 2006, the company acquired an aluminium rolling mill and wire rods facility situated at Mauda (Nagpur), from Asset Reconstruction Company (India) Ltd (ARCIL), belonging to Pennar Aluminium Company Ltd. In May 2006, the company entered into a joint venture with Essar Power (M.P.) Ltd to develop and operate mines at Mahan, Madhya Pradesh. In 2007, Hindalco created history in the Indian aluminium industry by acquiring Novelis Inc., a global leader in aluminium rolling and can recycling. In May 2007, Novelis became a subsidiary of Hindalco with the completion of acquisition process. The company acquired Alcon's 45% equity stake in Utkal Alumina project, makes the company, the 100% project owner. In the year 2008, the company expanded the alumina at Muri. During the year 2009-10, the company completed the Muri Alumina Refinery from 110,000 tpa to 450,000 tpa. They completed the expansion Hirakud smelter from 143,000 tpa to 155,000 tpa. In October 5, 2009, the company incorporated a wholly-owned subsidiary by the name Mauda Energy Ltd for generation of power to be used captively. During the year 2010-11, the company completed the Smelter expansion at Hirakud from 155 KTPA to 161 KTPA. In March 4, 2011, the company dissolved the Indal Exports Ltd. Also, A V Aluminium in Canada was merged with Novelis Inc. In 2011, Hindalco refinanced US$4 billion debt to finance its acquisition of Novelis to enable strategic flexibility for growth. Hindalco achieved financial closure of two projects through debt financing in 2011 viz. Utkal Alumina for Rs 4906 crore and Mahan aluminium for Rs 7875 crore. On 10 April 2012, Hindalco's US subsidiary Novelis Inc announced that it had signed an agreement with the Changzhou National Hi-Tech district to build the company's first automotive sheet manufacturing facility in China. On 17 September 2012, Hindalco Industries announced that it had achieved financial closure for its Rs 13195 crore greenfield aluminium smelter project at Lapanga in Odisha. Hindalco's Utkal Alumina Refinery became operational in 2013. The company also commissioned Hirakud Flat Rolled Products plant in 2013. On 11 August 2015, Hindalco Industries announced that credit rating agency CRISIL has downgraded Long-Term rating of the company's bank facilities and Non Convertible Debentures from AA/Negative to AA-/Stable. Hindalco's Mahan Aluminium and Aditya Aluminium smelters and Utkal refinery became operational in 2015. The company acquired the Gare Palma Coal mines in Chhattisgarh and the Kathautia and Dumri Coal mines in Jharkhand through auction in 2015. On 14 September 2016, Novelis Inc. announced the completion of the previously announced offering of $1.5 billion aggregate principal amount of 5.875% senior notes due 2026 by Novelis Corporation, an indirect wholly-owned subsidiary of Novelis. Hindalco's greenfield projects - Mahan Aluminium, Aditya Aluminium and Utkal Alumina ramped up to full capacity in 2016. Hindalco successfully raised USD 500 million through Qualified Institutional Placement (QIP) in March 2017. There was a strong participation from FIIs and long- only investors, generating demand in excess of USD 1.5 billion (3x subscription). The QIP was priced at zero discount to the previous day's closing share price. Novelis entered into a joint venture agreement in May 2017 with Kobe Steel, Japan to sell 50 per cent of its ownership interest in its Ulsan, South Korea facility, for USD 315 million. Located in the industrial hub of Korea, Novelis' Ulsan facility focuses on the production of rolled aluminum sheet for a variety of markets in Asia. In FY 2017, Hindalco divested Aditya Birla Minerals Limited, Australia for Rs 367 crore. With the new coal linkage in FY 2017, coal security improved to over 60 per cent of the annual requirement of Hindalco's domestic aluminium business. In FY 2017, Gare Palma IV/4 Coal Mines and Gare Palma IV/5 Coal Mines reached their peak capacity. The operations at Kathautia Mines commenced in February 2017.

Hindalco Industries Ltd Chairman Speech

TO SHAREHOLDERS

GLOBAL ECONOMY

The global economy is on a rebound. The International Monetary Fund (IMF) estimates indicate that the global real GDP grew 3.8% in CY17. This is the highest growth pace over the last six years. It is also the broadest synchronised global growth upsurge since CY10 as underlined by the IMF. This impetus from a supportive monetary policy was further buoyed by a revival of investment spending in advanced economies.

The expansionary fiscal and monetary policies in the US led to improved growth prospects. The US grew at 2.3% in CY17 as against 1.5% in CY16. Growth accelerated in Europe and Asia too.

The global economic recovery is expected to continue. For the current and the next year, a strong growth at 3.9% is projected. This positive outlook is somewhat clouded. Increased trade protectionism, rising international crude oil prices, geo-political risks and the uncertainty about normalisation of monetary policies in advanced economies from the highly accommodative conditions in the past are some of the factors that dim the outlook.

INDIAN ECONOMY

India's economy is emerging strongly from the transitory effects of demonetisation and the implementation of the Goods and Services Tax (GST). Although India's GDP growth slowed from 7.1% in FY17 to 6.7% in FY18, the economy recorded a seven-quarter-high GDP growth of 7.7% in the exit quarter of FY18. This reflects momentum.

India's macroeconomic indicators remain healthy. The fiscal deficit has been cut to 3.5% of GDP. India's foreign exchange reserves as at March end stood at a comfortable level of $424 Billion.

Investors seem to be positive on India's economic prospects. The

Foreign Direct Investment (FDI) flows continue to be encouraging.

India's global ranking on the ease of doing business notched up to 100 from 142 in barely four years, while the country's ranking on global competitiveness index has climbed from 71st in FY15 to 39th in FY17. The prevailing sense of optimism accentuates India's continuing economic growth in the future as well. It is attributable to the country's solid fundamentals, such as deleveraging by corporates, resulting in much stronger balance sheets, better capacity utilisation with consumption demand becoming stronger and insolvency and bankruptcy process weeding out non-performing assets, among others.

The Government's unwavering push for infrastructure projects Bharatmala Pariyojana, airports, metros, affordable housing, urbanisation, smart cities and digitisation-are excellent stimulators for the economy's growth in the medium term. At the same time, we cannot ignore near-term challenges. The bucket of concerns consists of rising oil prices, hardening inflation, firming bond yields and widening current account deficit. The ongoing global trade frictions, particularly between the US and

China, are worrisome and can have a spillover negative effect on countries like India. So, the terrain ahead could be a tad bumpy depending on the economic and geopolitical environment.

THE METALS SECTOR: IN BRIEF

The sector gained substantially from global economic growth, with a surge in demand from the user industries in both aluminium and copper. China controls about 50% of the world production and consumption of both the metals. In CY17, China implemented major reforms, resulting in environment-led closures in winter and a clamp permanently on all illegal capacities in aluminium.

Consequent to the Chinese actions, the average LME price of aluminium touched a five-year high to $1,969/ ton, registering a growth of 23% in CY17 against a decline of 3% in CY16. The global demand barring China, reflected a growth of 3.5% in CY17 compared to 3% in the previous year.

A robust growth by over 8% in CY17 for the second year in a row in China portends well. With the surge in demand and moderation in inventories, premiums increased across geographies. In Asia, the premium coursed by 14% to $100/ton in CY17 from $88.5/ton in CY16.

The average LME price of copper in CY17 augmented by 27% to $6,166/ton from $4,862/ton in CY16. This was driven by the tight supply of copper concentrate in the global market, caused by disruptions in the world's two large copper mines in Indonesia and Chile. The non-availability of concentrate in the global market moderated Tc/Rc.

The demand for refined copper, excluding China, was a modest 1% in CY17 due to the abundance of scrap availability. The demand in China grew marginally at 4.5% in CY16 to around 5% in CY17.

The Indian aluminium industry showed a significant recovery in H2FY18, after a subdued H1FY18. The domestic demand of aluminium extended by 9% in FY18 vis--vis a moderate 1.5% growth in FY17. The domestic demand of primary copper increased by 6% in FY18 as against 2% in FY17.

Going forward, the thrust on building renewable energy, the emphasis on electrical vehicles and light weighting through increased usage of aluminium in railways, metros and mass transportation should generate significant long-term growth opportunities for the aluminium and copper sector in India.

Further, the ongoing government initiatives such as the creation of 100+ smart cities, the push for infrastructure, especially on rural infra development, along with Make in India and Digital India will stoke greater demand.

YOUR COMPANY'S PERFORMANCE

For your Company, this has truly been a record breaking year even as global markets experienced unusual volatility. Your

Company registered its highest ever Consolidated EBITDA of Rs.15,025 Crore on a turnover of Rs.1,15,809 Crore.

Your Company's aluminium and copper business in India and Novelis continued to deliver outstanding operational and financial performance. Stable efficiencies, better realisations and supportive macros were the major enablers.

Your Company (including Utkal) achieved record aluminium and alumina production levels at 1.29 Mt and 2.88 Mt, respectively.

All the plants operated at their designed capacities. The output of Value Added Products (including wire rods) stood at 479 Kt.

In the Copper Business, Cathode production touched 410 Kt, higher by 9% compared to the earlier year. CC Rod production was 156 Kt, up by 4%. The new CCR#3 plant at Dahej was commissioned.

Novelis reported a remarkable performance this year with a record shipment of 3.2 Mt, higher by 4% over the previous year, and an EBITDA of $1.2 Billion, up by 12%. Their per ton EBITDA of $381 is indeed notable. Novelis continues to improve its product mix by raising its share of automotive sector from 18% to 20%. Your Company intends to increase the share of recycling to 57% in FY18, from 55% in FY17.

DELEVERAGING

To further bolster the balance sheet, your Company has prepaid close to Rs.8,000 Crore of long-term project loans in India. This has led to a significant improvement in the Consolidated Net Debt to EBITDA at below 3x at the end of March 2018.

WHAT GIVES US THE EDGE

Undeniably, our people, their dedication to work, their sense of belongingness and pride in the Group, their efforts in putting the organisation first and living our values give us an advantage over our competitors. I acknowledge their contribution and count on their continued commitment to take our business far ahead.

THE ADITYA BIRLA GROUP: IN PERSPECTIVE

The year FY18 has been a momentous year on all counts. We reached a record revenue of $43 Billion with an EBITDA of $6 Billion. Our Group's market cap crossed the $50 Billion mark. These spectacular achievements are a reflection not only of our growing size and scale, the inherent soundness of our strategies and operations, but also, more importantly, reflection of the enormous confidence that investors and other stakeholders have reposed in us.

I am delighted to share with you that Aon Hewitt, a reputed global consulting firm, in the ‘Best Employers 2018' study conducted by them, have named our Aditya Birla Group as the ‘Best Employer' in India.

Moving on to our people processes, what strikes me most is that the development and leadership aspects embedded in them are all futuristic. I believe, we are headed in the right direction. Let me give you a flavour of what we have accomplished and how we are constantly refreshing and reengineering our HR initiatives. Our Group HR has formulated a unique proposition for leadership development through the 2x2x2 formula.

It is structured in a manner that accords opportunities to high talent to work in two businesses across two geographies and in two functions. Such an approach should give a holistic experience and help prepare our future leaders. I had apprised you earlier on the talent councils led by the

Business Heads and Directors at the Group, business and at the functional levels. So far, more than 250 talent council meetings have been held with over 8,000 development conversations and actions initiated for these colleagues. I have attended several of these meetings and am much encouraged by the positivity and enthusiasm they generate among employees down the line.

They rightly believe that talent will always bubble to the top.

More than ever before, in the people domain, two segments that have grabbed the attention of progressive corporates comprise the millennials and the gender diversity issue. In our Group, 52% of our executives are under 35 years of age. They are the leaders of tomorrow whom we need to groom today. Today, women constitute over 14% of our employee force. Game-changing career-enabling policies have been introduced.

These include work-life issues such as maternity, childcare, flexi time, local commute and accompanied travel for the child and the caretaker. Alongside, as part of the family support initiative, paternity leave is also being provided.

For younger employees, through our flagship Aditya Birla Group Leadership Programme (ABGLP), we are building a robust talent pipeline at the entry, junior and middle levels, who will move into senior leadership over the years. From this cadre, over 350 youngsters have been placed across the Group.

Gyanodaya, the Aditya Birla Global Centre for Leadership and Learning, continues its commitment to prepare Profit and Loss (P&L) and manufacturing leaders through its Accelerated Leadership Development programmes. I take great pride in Gyanodaya bagging the Gold Award for the Best Corporate University-Culture and Brand in Global CCU Awards FY17 'for operating at the highest levels of excellence and creating value for people, business and society'.

The Sales, Marketing and Customer Centricity Academy and the HR academy enabled 1,765 managers to hone their expertise to greater heights. The Gyanodaya virtual campus continues to offer 900+ e-learning modules in multiple languages. During the year nearly 40,000 employees leveraged the e-learning programme.

We are enhancing our HR processes for scale, agility and consistent employee experience. A comprehensive HR assurance and excellence framework, the HR portal to enable the last-mile employee anytime-anywhere connect and SeamEx, the Group HR Shared Services Centre, are milestones in this journey, as they enthuse and energise our people.

IN SUM

Our Group's robust revenue growth, healthy EBITDA margins, efficient capital deployment and cash flow generation support our ambitious growth plans. Innovation and the spirit of entrepreneurship that our employees bring to work is amazing and a major contributor to our Group scaling newer heights year after year.

Yours sincerely,

Kumar Mangalam Birla

CHAIRMAN.

   

Hindalco Industries Ltd Company History

Hindalco Industries Ltd is one of the leading producers of aluminium and copper. The company's aluminium units across the globe encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium smelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines. Their copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilisers. It is a company of the Aditya Birla Group The company's units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. Several units have gone a step further with an integrated management system (IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one business excellence model. The company has been accorded the Star Trading House status in India. The company's aluminium metal is accepted for delivery under the High Grade Aluminium Contract on the London Metal Exchange (LME). Their copper quality standards are also internationally recognised and registered on the LME with Grade A accreditation. Hindalco Industries Ltd was incorporated in the year 1958. In the year 1962, the company commenced production with an initial capacity of 20,000 mtpa of aluminium metal and 40,000 mtpa of alumina at Renukoot (Uttar Pradesh). In the year 1965, they commissioned downstream capacities in Rolling and Extrusion Mills at Renukoot. In the year 1968, the company commissioned Renusagar Power Plant. In the year 1994, the company made a huge expansion, modernisation and diversification programme in their working areas. In the year 1998, foil plant of the company came to existence at Silvassa. Also, the company attained ISO 14001 EMS certification during the year. In the year 1999, the company commenced aluminium alloy wheels production at Silvassa. Also, they expanded the metal capacity at Renukoot to 242,000 tpa. In the year 2000, the company acquired the controlling stake in Indian Aluminium Company Ltd (Indal) with 74.6 per cent equity holding. The company entered 'The Asia Top 25' list of the CFO Asia Annual Report Survey, the only Indian company in 2001. In the year 2002, the company commissioned the ninth potline at an outlay of Rs 1, 800 crore. They made a major corporate restructuring to create a non-ferrous metals powerhouse. During the year, Indo Gulf Corporation Ltd's copper business, Birla Copper, was amalgamated with the company with effect from April 1, 2002. In the year 2003, the company through Aditya Birla Minerals Ltd (ABML) acquired Nifty Copper Mine. Also, in November 2003, ABML acquired the Mt Gordon copper mines. The company divested 8.6% holding in Indo Gulf Fertilizers Ltd. Also, they made brownfield expansion of aluminium smelter at Renukoot to 345,000 tpa. In the year 2004, the company expanded the copper smelter to 250,000 tpa. In the year 2005, all business of Indal, expect for the Kollu Foil plant in Andhra Pradesh, merged with the company. They commissioned copper III expansion, taking total capacity to 500,000 tpa. Also, the company signed a MoU with state governments of Orissa and Jharkhand for setting up Greenfield alumina, refining, smelting and power plants. In the year 2006, the company made a joint venture with Almex USA for manufacture of high strength aluminium alloys. The company singed an MoU with government of Madhya Pradesh for a Greenfield aluminium smelter in Siddhi. In March 2006, the company acquired an aluminium rolling mill and wire rods facility situated at Mauda (Nagpur), from Asset Reconstruction Company (India) Ltd (ARCIL), belonging to Pennar Aluminium Company Ltd. In May 2006, the company entered into a joint venture with Essar Power (M.P.) Ltd to develop and operate mines at Mahan, Madhya Pradesh. In 2007, Hindalco created history in the Indian aluminium industry by acquiring Novelis Inc., a global leader in aluminium rolling and can recycling. In May 2007, Novelis became a subsidiary of Hindalco with the completion of acquisition process. The company acquired Alcon's 45% equity stake in Utkal Alumina project, makes the company, the 100% project owner. In the year 2008, the company expanded the alumina at Muri. During the year 2009-10, the company completed the Muri Alumina Refinery from 110,000 tpa to 450,000 tpa. They completed the expansion Hirakud smelter from 143,000 tpa to 155,000 tpa. In October 5, 2009, the company incorporated a wholly-owned subsidiary by the name Mauda Energy Ltd for generation of power to be used captively. During the year 2010-11, the company completed the Smelter expansion at Hirakud from 155 KTPA to 161 KTPA. In March 4, 2011, the company dissolved the Indal Exports Ltd. Also, A V Aluminium in Canada was merged with Novelis Inc. In 2011, Hindalco refinanced US$4 billion debt to finance its acquisition of Novelis to enable strategic flexibility for growth. Hindalco achieved financial closure of two projects through debt financing in 2011 viz. Utkal Alumina for Rs 4906 crore and Mahan aluminium for Rs 7875 crore. On 10 April 2012, Hindalco's US subsidiary Novelis Inc announced that it had signed an agreement with the Changzhou National Hi-Tech district to build the company's first automotive sheet manufacturing facility in China. On 17 September 2012, Hindalco Industries announced that it had achieved financial closure for its Rs 13195 crore greenfield aluminium smelter project at Lapanga in Odisha. Hindalco's Utkal Alumina Refinery became operational in 2013. The company also commissioned Hirakud Flat Rolled Products plant in 2013. On 11 August 2015, Hindalco Industries announced that credit rating agency CRISIL has downgraded Long-Term rating of the company's bank facilities and Non Convertible Debentures from AA/Negative to AA-/Stable. Hindalco's Mahan Aluminium and Aditya Aluminium smelters and Utkal refinery became operational in 2015. The company acquired the Gare Palma Coal mines in Chhattisgarh and the Kathautia and Dumri Coal mines in Jharkhand through auction in 2015. On 14 September 2016, Novelis Inc. announced the completion of the previously announced offering of $1.5 billion aggregate principal amount of 5.875% senior notes due 2026 by Novelis Corporation, an indirect wholly-owned subsidiary of Novelis. Hindalco's greenfield projects - Mahan Aluminium, Aditya Aluminium and Utkal Alumina ramped up to full capacity in 2016. Hindalco successfully raised USD 500 million through Qualified Institutional Placement (QIP) in March 2017. There was a strong participation from FIIs and long- only investors, generating demand in excess of USD 1.5 billion (3x subscription). The QIP was priced at zero discount to the previous day's closing share price. Novelis entered into a joint venture agreement in May 2017 with Kobe Steel, Japan to sell 50 per cent of its ownership interest in its Ulsan, South Korea facility, for USD 315 million. Located in the industrial hub of Korea, Novelis' Ulsan facility focuses on the production of rolled aluminum sheet for a variety of markets in Asia. In FY 2017, Hindalco divested Aditya Birla Minerals Limited, Australia for Rs 367 crore. With the new coal linkage in FY 2017, coal security improved to over 60 per cent of the annual requirement of Hindalco's domestic aluminium business. In FY 2017, Gare Palma IV/4 Coal Mines and Gare Palma IV/5 Coal Mines reached their peak capacity. The operations at Kathautia Mines commenced in February 2017.

Hindalco Industries Ltd Directors Reports

Dear Shareholder,

Your Directors have pleasure in presenting the 59th Annual Report and the audited standalone and consolidated financial statements of your company for the year ended 31st March, 2018.

FINANCIAL HIGHLIGHTS

(Rs. Crore)
Standalone Consolidated
2017-18 2016-17 2017-18 2016-17
Revenue from Operations 43,435 39,383 1,15,809 1,02,631
Other Income 948 1,005 1,105 1,111
Earnings before Interest, Tax and Depreciation (EBITDA) 6,072 5,819 15,025 13,558
Depreciation including impairment 1,617 1,428 4,606 4,469
Finance Costs 1,901 2,323 3,911 5,742
Profit before Exceptional Items and Tax 2,554 2,068 6,508 3,348
Share of Equity Accounted Investments - - (125) (25)
Profit before Exceptional Items and Tax 2,554 2,068 6,383 3,323
Exceptional Items (325) 85 1,774 (8)
Profit before Tax 2,229 2,153 8,157 3,315
Tax Expenses 792 596 2,074 1,433
Profit/ (Loss) for the period 1,437 1,557 6,083 1,882
Other Comprehensive Income (Loss) 957 536 2,991 (18)
Total Comprehensive Income 2,394 2,093 9,074 1,864
Basic EPS 6.45 7.56 27.3 9.22

 

Appropriations to Reserves
(Rs. Crore)
Appropriations 2017-18 2016-17
Opening Balance in Retained 8,847 7,143
Earnings and Other Comprehensive Income
Total Comprehensive Income for the Current Year 2,394 2,093
Dividends paid (291) (239)
Transferred to Debenture (150) (150)
Redemption Fund
Closing Balance in Retained 10,800 8,847
Earnings and Other Comprehensive Income

Dividend:

For the year ended 31st March, 2018, the Board of Directors of your Company has recommended dividend of Rs. 1.20 per equity share (Previous year Rs.1.10 per equity share) to equity shareholders.

Equity shares that may be allotted upon exercise of Options granted under the Employee Stock Option Scheme and out of the Share Capital Suspense, and before the Book Closure for payment of dividend will rank pari passu with the existing shares and shall also be entitled to receive the aforesaid dividend.

In terms of provisions of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015, herein after referred to as "Listing Regulations" your Company has formulated a Dividend Distribution Policy. The Policy is given in Annexure-I to the Full Annual Report and is also accessible from your Company's Website www.hindalco.com.

OVERVIEW AND STATE OF THE COMPANY'S AFFAIRS:

Standalone Full year highlights

Hindalco registered a revenue of Rs. 43,435 crore for the fiscal year 2018 vs Rs. 39,383 crore in the previous year. EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) stood at Rs. 6,072 crore, up 4 percent compared to the previous year, on the back of stable operations with supporting macros despite increasing input costs. Depreciation was higher by 13 percent due to progressive capitalization and certain reclassification in FY18. The Finance Cost was down by 18 percent at Rs. 1,901 crore on account of prepayment and reduction in pricing of the project loans. Profit before Tax (and Before Exceptional Items) stood at Rs. 2,554 crore, up by 24 percent compared to the previous year. Net Profit for FY18 stood at Rs.1,437 crore in FY18 as compared to Rs. 1,557 crore in the previous year.

Consolidated Full Year Highlights

Hindalco's consolidated Revenue stood at Rs. 1,15,809 crore for FY18 compared to Rs. 102,631 crore in the previous year, on the back of excellent operating performance of all the businesses and better realisations. The Company recorded highest ever consolidated PBITDA (Profit before Interest, Tax, Depreciation and Amortisation) of Rs. 15,025 crore, up by 11 percent supported by stable operations and improving efficiencies across all businesses. Consolidated Profit before Tax (and Before Exceptional Items) almost doubled and stood at Rs. 6,508 crore, up by 94 percent compared to the previous year on account of strong overall business performance and savings in interest outgo. Net Profit in FY18, trebled at Rs. 6,083 crore up by 223% compared to the previous year. For detailed analysis, refer to the Management Discussion and Analysis section of the Full and Abridged Annual Report.

Highlights of the Company's Subsidiaries:

(a) Utkal Alumina International Ltd.

Utkal Alumina revenues has grown to Rs. 2,863 Crore in FY 18 compared to Rs. 2,375 Crore in FY 17 up 21% as a result of excellent operating performance. The EBITDA for FY 18 stood at Rs.1187 Crore up 77% compared to Rs. 672 Crore in FY 17. The Profit after tax in FY 18 was Rs. 561 Crore v/s Rs. (114) Crore in FY17.

(Rs. Crore)
Particulars FY18 FY17 % Growth
Revenue 2863.37 2374.81 21%
EBITDA 1186.55 672.02 77%
PAT 561.29 (114.18)

(b) Novelis Inc.

Performance highlights of Novelis Inc. are provided in the Management Discussion and Analysis section of the Full and Abridged Annual Report.

Key Initiatives

The Company successfully commissioned the new Continuous Cast Rod Plant (CCR-3) in Copper in Dahej during the year. This will further enhance the copper rod capacity of its Dahej Plant. The Work on Utkal's brown field capacity expansion by 500 Kt commenced during the year and is expected to be completed in 30 months with a total capital outlay of around Rs.1,300 crore, which will provide further strength to its integration and availability of best in class alumina to its smelters.

During the fiscal year 2018, Novelis completed JV to establish Ulsan Aluminium in South Korea, by selling approximately 50% its ownership to Kobe Steel for US$ 314 million which have helped to unlock the value. Novelis with its objective to invest in world class assets and technical capabilities to position itself to meet the increasing global demand for aluminium from the Automotive market, announced its plans to setup a 200 Kt automotive finishing facility in Guthrie, Kentucky, US which is expected to be commissioned in CY 2020. Novelis has agreed to acquire the operating facilities and manufacturing assets at its plant in Sierre, Switzerland, that has been historically leased.

HUMAN RESOURCES:

Several innovative people-focused initiatives have been instituted at the Group level, and these are translated into action at all of the Group Companies. Our basic objective is to ensure that a robust talent pipeline and a high-performance culture, centred around accountability is in place. We feel this is critical to enable us retain our competitive edge.

RESEARCH AND DEVELOPMENT

Your Company's Research & Development (R&D) activities are focused on providing innovative, cost-effective and sustainable solutions to support consistent growth of business. The R&D activities of your Company include process, product and application development, to develop short term as well as long term solutions to the issues faced by nonferrous sector, such as, raw material quality, cost effective management of waste generated during processing, recovery of value from by product as well as any waste products, developing better understanding of the science of processes, reducing the specific energy consumption and carbon footprint etc.

Specific programs have also been initiated to foster better understanding of the requirement of existing and prospective customers, and to provide a better service through application development, so as to increase your company's market share in the chosen market space.

Technical competencies developed by your company will go a long way in terms of quick absorption of technologies, enabling pushing boundaries of our processes, so as to increase the economic performance and improve our new product/ new application pipeline to address the impending market opportunities.

Your Company already operates two Hindalco Innovation Centres (HIC), one HIC-Alumina at Belagavi working on R&D of bauxite ore, alumina refining and specialty alumina, hydrate products; as well as waste management; and one HIC-SemiFab located at

Taloja, near Mumbai, working in the area of tribology, energy and environment management and aluminium fabricated products and new applications. R&D Team at Birla Copper, Dahej, is focusing on maximisation of copper recovery as well recovery of various metal values, such as, Selenium, Tellurium, Nickel, Bismuth, etc., from the effl uent generated in the plant. In addition, your company engages the Aditya Birla Group's corporate research and development centre, Aditya Birla Science and Technology Company Private Limited ("ABSTCPL"), for conducting R&D in select areas of work through chartered R&D projects.

These are based on the domain expertise and R&D facilities available in ABSTCPL. The engagement has resulted into patent applications, which have been and will be assigned to your company on the grant of the patent. ABSTCPL's forte of having multidisciplinary teams of technical experts, scientists and engineers, enables your company to develop building competencies in select areas, as a long term value to business. Both the HICs at Belagavi and Taloja as well as ABSTCPL are DSIR, GOI, recognised R&D Centres.

CONSOLIDATED FINANCIAL STATEMENTS:

The Consolidated Financial Statements for the year ended 31st March, 2018 have been prepared by your Company in accordance with the provisions of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014, applicable Accounting Standards and the provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 "Listing Regulations" and forms part of the Full Annual Report.

EMPLOYEE STOCK OPTION SCHEMES:

ESOS-2006

During the year ended 31st March, 2018, the Company has allotted 1,33,438 fully paid-up equity share of Rs.1/- each of the Company (Previous year 4,43,476) on exercise of options under ESOS 2006.

ESOS-2013:

During the year ended 31st March, 2018, the Company has allotted 15,75,374 fully paid-up equity share of Rs.1/- each of the Company (Previous year 9, 97,195) on exercise of options under ESOS 2013. The details of Stock Options and Restricted Stock Units granted under the above mentioned Schemes are available on your Company's website viz. www.hindalco.com.

A certificate from the statutory auditor on the implementation of your Company's Employees Stock Option Schemes will be placed at the ensuing Annual General Meeting for inspection by the members.

There is no material change in the Schemes and the aforementioned schemes are in compliance with SEBI (Share Based Employee Benefits) Regulations, 2014.

CORPORATE GOVERNANCE

Your Directors reaffirm their continued commitment to good corporate governance practices. Your Company fully adheres to the standards set out by the Securities and Exchange Board of India for Corporate Governance practices.

The entire report on Corporate Governance forms part of Full Annual Report.

ABRIDGED ANNUAL REPORT

In terms of the provision of Section 136(1) of the Companies Act, 2013, Rule 10 of Companies (Accounts of Companies) Rules, 2014 and Regulation 36 of the Listing Regulations, the Board of Directors has decided to circulate the Abridged Annual Report containing salient features of the Financial Statements and Directors' Report and other documents to the shareholders for the Financial Year 2017-18, under the relevant laws.

The Abridged Annual Report is being circulated to the members excluding the ‘Annual Report on CSR Activities', ‘Remuneration Philosophy/ Policy', ‘Secretarial Audit Report', ‘Extract of Annual Return', ‘Dividend Policy', ‘Full Report on Corporate Governance and Shareholders' Information'. Members who desire to obtain the full version of the Annual Report may write to the Company Secretary at the registered office. Full version of the Annual Report is also available on the Company's website www.hindalco.com.

DIRECTORS' RESPONSIBILITY STATEMENT

As stipulated in Section 134(3)(c) of the Companies Act, 2013 "the Act", your Directors subscribe to the "Directors' Responsibility Statement" and confirm that:

a) in the preparation of the annual accounts, applicable accounting standards have been followed along with proper explanations relating to material departures;

b) the accounting policies selected have been applied consistently and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at 31st March, 2018 and of the Profit of your company for that period;

c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of your company and for preventing and detecting fraud and other irregularities;

d) the annual accounts of your Company have been prepared on a going concern basis;

e) your Company had laid down internal financial controls and that such internal financial controls are adequate and were operating effectively;

f) your Company has devised proper system to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE:

The information on conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo stipulated under Section 134(3)(m) of the Companies Act, 2013, read with Companies (Accounts) Rules, 2014 is set out in Annexure-II to the Full and Abridged Annual Report.

PARTICULARS OF EMPLOYEES:

In accordance with the provisions of Section 197(12) of the Companies Act, 2013 "the Act", read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the names and other particulars of employees are to be set out in the Directors' Report, as an addendum thereto.

However, in line with the provisions of Section 136(1) of the Act, the Report and Accounts as set out therein, are being sent to all Members of your Company excluding the aforesaid information about the employees. Any Member, who is interested in obtaining these particulars about employees, may write to the Company Secretary at the Registered Office of your Company.

Disclosures pertaining to remuneration and other details as required under section 197(12) read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are attached as Annexure-III to the Full and Abridged Annual Report.

DIRECTORS:

Board constitution and changes:

Mr. Kumar Mangalam Birla (DIN: 00012813) will retire from office by rotation at the ensuing Annual General Meeting, and being eligible, offers himself for reappointment.

Mr. Kumar Mangalam Birla has given required declaration under Companies Act, 2013.

Brief resume of the director being reappointed form part of the notice of the ensuing Annual General Meeting.

Mr. Jagdish Khattar (DIN: 00013496) has resigned as an Independent Director w.e.f 4th May 2018 due to his personal commitment.

Ms. Alka Bharucha (DIN:00114067) is appointed as an Independent Director on the Board of the Company w.e.f 11th July, 2018. Ms. Bharucha has given the required declarations under the Companies Act, 2013 and Listing Regulations.

The Board recommends the reappointment of Mr. Kumar Mangalam Birla and appointment of Ms. Alka Bharucha. Items seeking your approval is included in the Notice convening the Annual General Meeting.

Independent Directors Statement:

Independent Directors on your Company's Board have submitted declarations of independence to the effect that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the Listing Regulations.

Policy on appointment and remuneration of Directors and Key Managerial Personnel:

The Nomination and Remuneration Committee has formulated the remuneration policy of your company which is attached as Annexure-IV to the Full Annual Report.

Meetings of the Board:

The Board of Directors of your Company met five times during the year, details of which are given in the Corporate Governance Report forming part of the Full Annual Report.

Annual Evaluation:

Pursuant to the provisions of the Companies Act, 2013 and Listing Regulations, the Directors has carried annual performance evaluation of Board, Independent Directors, Non Executive Directors, Executive Directors, Committee and Chairman of the Board. The evaluation framework focused on various aspects of the Board and Committees such as review, timely information from management etc.

Also, the performance of individual directors was divided into Executive, Non Executive and Independent Directors and based on the parameters such as contribution, attendance, decision making, action oriented, external knowledge etc.

The evaluation exercise has been carried out by the Board members on the basis of evaluation templates for Board, Independent Directors, Non Executive Directors, Executive Directors, Committees and Chairman of the Board. The template had various questions to be replied by the directors on aforesaid parameters.

The Nomination and Remuneration Committee evaluated the performance on the basis of the response received from the Directors.

Similarly, the Independent Directors evaluated the performance of non independent directors, Chairman and assessed the quality, quantity and flow of information between company management and Board. Outcome of the evaluation exercise:

1. The Board as a whole performed satisfactorily.

2. Independent Directors are rated high in understanding the Company's business and expressing their view during the Board meetings.

3. The Non Executive Directors scored well in all aspects.

4. Directors rated Executive Directors as action oriented and good in implementing Board decisions.

5. Board members rated high to the Chairman in leading the Board effectively.

6. Board members had shown satisfaction in functioning of the Committees.

AUDIT COMMITTEE:

The Audit Committee comprises of Mr. M.M. Bhagat, Mr. K.N. Bhandari, Mr. Y.P. Dandiwala, Independent Directors of your Company. Mr. Satish Pai: Managing Director and Mr. Praveen Kumar Maheshwari: Chief Financial Officer and Whole-Time Director are the permanent invitees.

Further details relating to the Audit Committee are provided in the Corporate Governance Report forming part of the Full Annual Report.

KEY MANAGERIAL PERSONNEL:

In terms of provisions of Section 203 of the Companies Act, 2013, Mr. Satish Pai: Managing Director, Mr. Praveen Kumar Maheshwari: Chief Financial Officer and Mr. Anil Malik: Company Secretary are the Key Managerial Personnel of your Company.

VIGIL MECHANISM:

Your Company has in place a vigil mechanism for directors and employees to report concerns about unethical behaviour, actual or suspected fraud or violation of your Company's Code of Conduct.

Adequate safeguards are provided against victimisation to those who avail of the mechanism and direct access to the Chairman of the Audit Committee in exceptional cases is provided to them The vigil mechanism is available on your Company's website viz. www.hindalco.com.

AUDITORS

Statutory Auditors

M/s. Price Waterhouse & Co Chartered Accountants LLP (Registration No. 304026E/E-300009), are the Statutory Auditors of the Company who are appointed for a period of five years i.e., to hold office from the conclusion of the Fifty Eighth Annual General Meeting held in 2017 till the conclusion of the Sixty third Annual General Meeting of the Company, to be held in the Calendar year 2022, subject to ratification, if required, of their appointment by the Members at every Annual General Meeting till the Sixty-second Annual General Meeting.

The requirement to place the matter relating to appointment of the Auditors for ratification by the members at every Annual General Meeting is done away with vide notification dated 7th May, 2018 issued by the Ministry of Corporate Affairs. Accordingly, no resolution is proposed for ratification of appointment of the Auditors, who were appointed in the Annual General Meeting held on 13th September, 2017.

The observation made in the Auditor's Report are self explanatory and therefore, do not call for any further comments under Section 134(3)(f) of the Act.

Cost Auditors

In terms of the provisions of Section 148 of the Act read with the Companies (Cost Records and Audit) Amendment Rules, 2014, the Board of Directors of your Company have on the recommendation of the Audit Committee, appointed M/s. Nanabhoy & Co., Cost Accountants, Mumbai as Cost Auditors, to conduct the cost audit of your Company for the financial year ending 31st March, 2019, at a remuneration as mentioned in the Notice convening the Annual General Meeting.

As required under the Act, the remuneration payable to the cost auditor is required to be placed before the Members in a general meeting for their ratification. Accordingly, a resolution seeking Member's ratification for the remuneration payable to Cost Auditors forms part of the Notice of the ensuing Annual General Meeting.

Secretarial Auditors

Pursuant to provisions of Section 204 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed BNP & Associates, Company Secretaries, Mumbai as Secretarial Auditor for conducting the Secretarial Audit of your Company for the financial year ended 31st March, 2018.

The Report of the Secretarial Auditors is annexed herewith as Annexure-V to the Full Annual Report.

The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

ENVIRONMENT PROTECTION AND POLLUTION CONTROL

Your Company is committed to sustainable development. A detailed report of the Company's initiatives and commitment to environment conservation is part of Sustainability & Business Responsibility Report forming part of the Full and Abridged Annual Report.

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 notes to Financial Statements of the Full Annual Report.

CORPORATE SOCIAL RESPONSIBILITY:

In terms of the provisions of Section 135 of the Companies Act, 2013 ("the Act") read with Companies (Corporate Social Responsibility Policy) Rules, 2014, the Board of Directors of your Company has constituted a Corporate Social Responsibility ("CSR") Committee which is chaired by Mrs. Rajashree Birla. The other Members of the Committee for the Financial year ending 31st March 2018 were Mr. Jagdish Khattar, Independent Director, Mr. A.K. Agarwala, Non Executive Director, Mr. Satish Pai: Managing Director and Mr. D. Bhattacharya: Non Executive Director. Dr. Pragnya Ram, Group Executive President, Corporate Communication & CSR is a permanent invitee to the Committee. Mr. Jagdish Khattar: Independent Director and Member of CSR Committee has resigned from the Board w.e.f 4th May 2018. Mr. Y.P. Dandiwala: Independent Director was inducted as a member of the CSR Committee in the meeting of the Board held on 16th May, 2018.

Your Company also has in place a CSR Policy and the same is available on your Company's website viz. www.hindalco.com. The Committee recommends to the Board activities to be undertaken during the year.

Your Company is a caring corporate citizen and lays significant emphasis on development of the communities around which it operates. Your Company has identified several projects relating to Social Empowerment & Welfare, Infrastructure Development, Sustainable Livelihood, Health Care and Education during the year and initiated various activities in neighbouring villages around plant locations.

During the financial Year 2017-18 the Company has spent Rs. 31.09 Crore under Section 135 of the Companies Act, 2013 on CSR activities, which represent 2.33% of average net Profits of the Company for last three financial years. The Annual Report on CSR activities is attached as Annexure-VI to the Full Annual Report.

RISK MANAGEMENT

Pursuant to the requirement of Listing Regulations, the Company has constituted Risk Management Committee, which is mandated to review the risk management plan/process of your company.

Risk evaluation and management is an ongoing process within the Organization. Your Company has comprehensive risk management policy which is periodically reviewed by the Risk Management Committee.

CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES

During the financial year, your Company entered into related party transactions which were on arm's length basis and in the ordinary course of business. There are no material transactions with any related party as defined under Section 188 of the Act read with Companies (Meetings of Board and its Powers) Rules, 2014 and Listing Regulations.

All related party transactions have been approved by the Audit Committee of your Company. The policy on Related Party Transactions as approved by the Audit Committee and the Board is available on your Company's website viz. www.hindalco.com.

EXTRACT OF ANNUAL RETURN:

In terms of the provisions of Section 92 (3) of the Companies Act, 2013 ("the Act") read with the Companies (Management and Administration) Rules, 2014, an extract of the Annual Return of your Company for the financial year ended 31st March, 2018 is given in Annexure-VII to the Full Annual Report.

BUSINESS RESPONSIBILITY REPORT:

As per the Listing Regulations, a separate section of Business Responsibility Report forms part of the Full and Abridged Annual Report.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has Internal Financial Control (IFC) framework commensurate with its size, scale and complexity of businesses. The framework has been designed to provide reasonable assurance with respect to reliable operational and financial information, complying with applicable laws, safeguarding of assets, prevention and detection of frauds & errors, executing transactions with proper authorization and ensuring compliance with company policies & procedures.

The controls based on the prevailing business conditions and processes have been tested for operating effectiveness and no reportable material deficiencies in the design were observed. The Internal Audit team develops an annual audit plan based on the risk profile of the businesses.

The Internal Audit plan is approved by the Audit Committee, who also reviews compliance to the audit plan.

The Audit Committee has appointed Internal Auditors who periodically audit the adequacy and effectiveness of the internal controls laid down by the management and suggest improvements to strengthen the controls. Significant audit observations and corrective action(s) thereon are presented to the Audit Committee. The Audit Committee reviews the reports submitted by the Internal Auditors in each of its meeting, quarterly.

INTERNAL FINANCIAL CONTROL

Your directors confirm having laid down internal financial controls and that such internal financial controls are adequate and were operating effectively.

SUBSIDIARY, JOINT VENTURES OR ASSOCIATE COMPANIES:

The financial statements of your Company's subsidiaries and related information have been placed on the website of your Company viz. www.hindalco. com and also available for inspection during business hours at the registered office of your Company.

Any Member, who is interested in obtaining a copy of financial statements of your Company's subsidiaries, may write to the Company Secretary at the Registered Office of your Company. In accordance with the provisions of the 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 subsidiaries, associates and Joint Venture is attached as Annexure-VIII to the Full and Abridged Annual Report.

ThenamesofCompanieswhichhavebecomeorceased to be subsidiaries, Joint Ventures and associates are also provided in the aforesaid statement.

OTHER DISCLOSURES:

• There were no material changes and commitments affecting the financial position of your Company between end of financial year and the date of report.

• Your Company has not issued any shares with differential voting.

• There was no revision in the financial statements.

• Your Company has not issued any sweat equity shares.

• Mr. Satish Pai is a director on the Board of Novelis Inc, wholly owned subsidiary. He is in receipt of annual fee of US$ 1,50,000 in the calendar year 2017. Mr. Praveen Kumar Maheshwari: Whole Time Director and Chief Financial Officer has not received any commission/remuneration from your Company's subsidiaries.

• There is no change in the nature of business.

• During the year under review, your Company has not accepted any fixed deposits from the public falling under Section 73 of the Act read with the Companies (Acceptance of Deposits) Rules, 2014. Thus, as on March 31, 2018, there were no deposits which were unpaid or unclaimed and due for repayment.

• There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company's operations in future.

• There were no frauds reported by the Auditors u/s 143(12) of the Companies Act, 2013.

APPRECIATION

Your Directors place on record their sincere appreciation for the assistance and guidance provided by the Honorable Ministers, Secretaries and other officials of the Ministry of Mines, Ministry of Coal, the Ministry of Chemicals and Fertilizers and various State Governments. Your Directors thank the Financial Institutions and Banks associated with your Company for their support as well.

Your Company's employees are instrumental in your Company scaling new heights, year after year.

Their commitment and contribution is deeply acknowledged. Your involvement as Shareholders is greatly valued. Your Directors look forward to your continuing support.

For and on behalf of the Board
Satish Pai M.M. Bhagat
Managing Director Independent Director
DIN:06646758 DIN:00006245
Mumbai
Dated : July 11, 2018

   

Hindalco Industries Ltd Company Background

Kumar Mangalam BirlaSatish Pai
Incorporation Year1958
Registered OfficeAhura Centre 1st Floor B Wing,Mahakali Caves Road Andheri(E)
Mumbai,Maharashtra-400093
Telephone91-22-66917000,Managing Director
Fax91-22-24227586
Company SecretaryAnil Malik
AuditorPrice Waterhouse & Co Chartered Accountants LLP
Face Value1
Market Lot1
ListingBSE,Luxembourg,MSEI ,NSE,
RegistrarHindalco Industries Ltd
Ahura Centre 1st Flr,Mahakali Caves Road,Andheri (East),Mumbai - 400 093

Hindalco Industries Ltd Company Management

Director NameDirector DesignationYear
Kumar Mangalam Birla Chairman 2020
D Bhattacharya Vice Chairman 2020
Rajashree Birla Director 2020
K N Bhandari Independent Director 2020
A K Agarwala Director 2020
Anil Malik Company Secretary 2020
Satish Pai Managing Director 2020
Yazdi P Dandiwala Independent Director 2020
Praveen Kumar Mahehswari Whole Time Director & CFO 2020
Alka Marezban Bharucha Independent Director 2020
VIKAS BALIA Independent Director 2020
Sudhir Mital Independent Director 2020
Anant Maheshwari Independent Director 2020

Hindalco Industries Ltd Listing Information

Listing Information
NIFTY
BSE_500
BSE_100
BSE_200
BSEDOLLEX
CNX500
BSEMETAL
CNX100
CNXMETAL
CNX200
CNXCOMMODI
BSEGREENEX
BSECARBONE
NIFTY50V20
NFT100EQWT
BSEALLCAP
BSELARGECA
BSEMETERIA
BSEMANUFAC
SENSEX50
ESG100
LMI250
BSEDSI
BSEEVI
NFT50EQWT

Hindalco Industries Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Sale of Products NA 00039708
Other Operating Revenues NA 000412
Sale of Services NA 000122
Excise Duty NA 0000
Conversion Charges NA 0000
Miscellaneous Receipts &ClaimsNA 0000
Others NA 0000
Export Incentive Rs.0000
Cash Discount Rs.0000
Adjustments NA 0000
Rock Phosphate-Traded MT 0000
Electrical Energy MU 0000
Electrical Energy MW 0000
Electricity (Co-Generation) MU 0000
Electricity (Co-Generation) MW 0000
Sulphuric Acid MT 0000
Phosphoric Acid MT 0000
Ammonia-Traded MT 0000
Alumina & Hydrate NA 0000
DAP Ton0000
Precious Metals NA 0000
Silver MT 0000
Gold MT 0000
Copper & Copper based ProductsNA 0000
Copper Business - Others NA 0000
Copper-Traded NA 0000
Copper Cathodes NA 0000
Continuous Cast Copper Rod MT 0000
Aluminium Business - Others NA 0000
Aluminium Metals MT 0000
Aluminium NA 0000
Aluminium-Traded Ton0000
Aluminium Ingots MT 0000
Conductor Redraw Rods MT 0000
Aluminium Wheels Pcs0000
Rolled Products MT 0000
Aluminium Foil MT 0000
Aluminium Redraw Rods MT 0000
Extruded Products MT 0000
Vanadium Sludge MT 0000
Sale of Transformers NA 0000

Contact us Contact us