SUMMER INTERNSHIP PROJECT REPORT

AT

National Aluminiums Company Limited

A Project Report Submitted In Partial Fulfillment of the Requirements
For The Award of the

Master of Business Administration

University of Mysore
TO

M.S.RAMAIAHA ACADEMY OF MANAGEMENT

BY
Sk Md Parwej Quadry
REG.NO. 15MB4585
BATCH 2015-17
Under the guidance of
Prof Meghna Verma

M.S.RAMAIAHA ACADEMY OF MANAGEMENT

NEW BEL ROAD, BANGALORE-560054
September 2016

pg. 1
 CERTIFICATE

This is to certify that the Project Report undertaken by Sk Md Parwej Quadry

Reg. No. 15MB4585 conducted at National Aluminium Company Limited
Submitted in partial fulfillment of the requirements for the award of the

Master of Business Administration

University of Mysore
TO

M.S.RAMAIAHA ACADEMY OF MANAGEMENT

Is a record of bonafide internship carried out under my supervision and
guidance. He has attended the required guidance sessions held. This report has
not been submitted for the award of any other degree/diploma/fellowship or
similar titles or prizes.

Guides Signature:
Name: Prof.Meghna Verma

Qualification: MBA (Marketing & HR), M.Sc (Applied Mathematics)

pg. 2
 STUDENTS DECLARATION

I hereby declare that the Project Report conducted at National Aluminium

Company Limited Under the guidance of Prof Meghna Verma Submitted in
Partial fulfillment of the requirements for the

Master of Business Administration

University of Mysore
TO

M.S.RAMAIAHA ACADEMY OF MANAGEMENT

is my original work and the same has not been submitted for the award of any
other Degree/Diploma/Fellowship or other similar titles or prizes

Signature of the Student

Place: Bangalore SK MD PARWEJ QUADRY

Date: Reg. No.: 15MB4585

pg. 3
 ACKNOWLEDGEMENT

I extend my special gratitude to our Dean Dr.H.Muralidharan, Academic

Head Prof. V. Narayanan & Programme Head Dr. T.N.Anuradha for
inspiring me to take up this project and also for their able guidance and
support in completing this internship.

I wish to acknowledge my sincere gratitude and indebtedness to my project

guide Prof. Meghna Verma M.S. Ramaiah Academy of Management,
Bangalore for her valuable guidance and constructive suggestions in the
preparation of project report.

STUDENT NAME - Sk Md Parwej Quadry

Register Number-15MB4585

pg. 4
 LIST OF CONTENTS

S. No. Content Page No.

1 CHAPTER 1 8 18
Industry Analysis
Brief history of growth and developments
Future growth prospects
Major players
Michael E. Porters Five Forces Model

2 CHAPTER 2
Company Analysis 19 - 39
About the company
Marketing
Customers
Competitors
Operations
Finance
Organizational Hierarchy
SWOT Analysis of NALCO
Products

3 CHAPTER 3 40-41
Tasks Accomplished During Internship
Roles and Responsibilities
Description of tasks handled
Contribution to the Organization

CHAPTER 4
4 Analysis Of The Research Undertaken 42 72
Introduction
Research Design
Analysis of Data
Findings, Conclusions and Recommendations

5 ANNEXURE 1(Balance Sheet, Profit and Loss A/C , Cash Flow 73 81

ANNEXURE 2 (Weekly report and Attendance sheet)

6 82
BIBLIOGRAPHY

pg. 5
 LIST OF TABLES

S NO. TABLES PG. NO

TABLE 4.1 TABLE SHOWING EARNINGS PER SHARE OF 56

THE FIRM

TABLE 4.2 TABLE SHOWING NET PROFIT RATIO OF THE 57

FIRM

TABLE 4.3 TABLE SHOWING GROSS PROFIT RATIO OF 58

THE FIRM

TABLE 4.4 TABLE SHOWING CASH PROFIT RATIO OF THE 59

FIRM

TABLE 4.5 TABLE SHOWING DEBTORS TURNOVER RATIO 60

OF THE FIRM

TABLE 4. TABLE SHOWING STOCK TURNOVER RATIO OF 61

THE FIRM

TABLE 4.7 TABLE SHOWING CURRENT RATIO OF THE 62

FIRM

TABLE 4.8 TABLE SHOWING LIQUID RATIO OF THE FIRM 64

pg. 6
 LIST OF GRAPHS

S. NO GRAPHS PG. NO

GRAPH 4.1a GRAPHICAL REPRESENTATION OF EARNINGS PER 56

SHARE

GRAPH 4.2b GRAPHICAL REPRESENTATION OF NET PROFIT 57

RATIO

GRAPH 4.3c GRAPHICAL REPRESENTATION OF GROSS PROPIT 58

RATIO

GRAPH 4.4d GRAPHICAL REPRESENTATION OF CASH PROFIT 59

RATIO

GRAPH GRAPHICAL REPRESENTATION OF DEBTORS 60

4.5e TURNOVER RATIO

GRAPH 4.6f GRAPHICAL REPRESENTATION OF STOCK 61

TURNOVER RATIO

GRAPH 4.7g GRAPHICAL REPRESENTATION OF CURRENT 63

RATIO

GRAPH GRAPHICAL REPRESENTATION OF LIQUID RATIO 64

4.8h

pg. 7
 CHAPTER-1

Industry Analysis

pg. 8
INTRODUCTION
.
Aluminium is the youngest metal in use by humans. Unlike copper, gold and iron, aluminium
cannot be extracted from the ground and purified by simple technologies, such as strong fire
or remelting processes. Aluminium production became possible only when the production of
electricity became possible, only when chemistry advanced enough. Here alu NET
International pays tribute to those who worked to create the next age. Humanity moved beyond
the age of stone to the age of copper, then to the age of iron and steel, now is the turn of ages
once again.

The discovery of Aluminium - Birth and initial growth

The ancient Greeks and Romans used aluminium in medicine as an astringent, and in dyeing
processes. It is doubtful whether you entered a museum with ancient Greek, Roman or Chinese
pottery and you did not see aluminium in use. Aluminium-bearing clays to make pottery, and
aluminium salts to make dyes can be found on such ancient pottery of all ancient cultures
contains aluminium. Those cultures of course did not know, or so we suppose, that an element
called aluminium gave those special properties to their creations. In the Middle Ages
aluminium was one of the elements which acquired anal chemical symbol, as alchemist thought
that they can use a metal they had not seen in their ancient pursuit concerned with, for instance,
the transformation of other metals into gold. It was not, however until much later that
aluminium began to be thought as a metal separate and self-contained for use such as other
ferrous and nonferrous metals. In 1761 de Morveau proposed the name "alumine" for the base
in alum. Later yet, in 1807, Davy proposed the name alumiuim for the metal, undiscovered at
that time, and later agreed to change it to aluminum. Shortly thereafter, the name aluminium
was adopted by IUPAC to conform with the "ium" ending of most elements. Aluminum is the
IUPAC spelling and therefore the international standard.

Aluminium was also the accepted spelling in the U.S.A. until 1925, at which time the American
Chemical Society decided to revert back to aluminium, and to this day Americans still refer to
aluminium as"aluminum".But lets revert back to history. Aluminium was first isolated by
Hans Christian Oersted in 1825 who reacted aluminium chloride (AlCl3) with potassium
amalgam, an alloy of potassium and mercury. Heating the resulting alumin pressure caused the
mercury to boil away leaving aluminium metal. The metal was born for uses, which at that time

pg. 9
no one could have thought of. Pressure caused the mercury to boil away leaving aluminium
metal. The metal was born for uses, which at that time no one could have thought of. The
conquest of space, safe packaging and other frontiers, we know consider everyday life
convinces could have not been possible without the use of this metal. But lets take a detailed
look at the history of aluminium, which is celebrating only 190 years since its birth, making it
the most recently discovered metal in common use. Aluminium only exists naturally in
combination with other materials silicates and oxides. These are very stable and it took many
years of painstaking research to "unlock" the metal, from natures protective arms.

The Early History of Aluminum

During ancient times, aluminum oxide clays were used in hide tanning, first aid, fabric dying
and fireproofing. These major milestones occurred during the aluminums discovery period:

1865: Science fiction writer Jules Verne describes an aluminum space rocket in his novel,
Journey to the Moon.

1886: Oberlin College student Charles Hall and French engineer Paul Heroult separately and
simultaneously develop an inexpensive electrolysis process by which aluminum can be
extracted from aluminum oxide. The large amount of electricity required to power the
electrolytic process limited the production of aluminum. Hall received U.S. patent #400,666 in
1889.

1887: Austrian engineer Karl Josef Bayer developed a chemical process by which alumina can
be extracted from bauxite, a widespread and naturally occurring aluminum ore. Both the Bayer
and Hall-Herout processes are still used today to produce nearly all the worlds aluminum.

pg. 10
1900s to Present

In the early 1900s, U.S. business leaders and industrialists quickly recognized aluminums
superior properties. Power transmission lines and elevated train electrical wiring were among
the first

to benefit from the electrical advantages of aluminum. Aluminum found early industrial uses
in engines, such as the one built in 1903 by the Wright brothers to power their first biplane.
Aluminum foil entered the market in 1910. Alloy development, begun in 1911, improved
physical properties and opened new industrial fields. The Great Depression resulted in Works
Progress Administration (WPA) projects that expanded hydroelectric generation capacity,
which in turn increased production capacity of primary aluminum. During this time, the
Aluminum Association was formed. The Associations first meeting was held in New York
City in 1935.

GROWTH OF ALUMINIUM INDUSTRY:

The Aluminium Industry has developed to the point where scores of companies in some 35
countries are smelting aluminium and thousands more are manufacturing the many end
products to which aluminium is so well suited. For its first half century the aluminium industry
pursued the dual role of improving and enlarging production processes to reduce the price of
the metal and, at the same time, proving the worth and feasibility of aluminium in a wide range
of markets. Such was the dynamic approach of the the production of primary aluminium is a
young industry - just over 100 years old. Industry to this problem that the consumption of
aluminium gained the remarkable record of doubling every ten years. The strong demand for
aluminium stimulated the rapid expansion of productive capacity to meet it.

The First World War had a dramatic effect on aluminium production and consumption. In the
six years between 1914 and 1919 world out putsoared from 70,800 tonnes to 132,500 tonnes a
year and it is a striking testimony to the adaptability of the metal that after the very large
expansion occasioned by war the ground was held. Once the changeover to civilian production
had been carried through the increased capacity was occupied before very long in supplying
the normal demands of industry. And this happened again, on a much larger scale, as a result
of the Second World War World production of primary aluminium increased from 704,000
tonnes in1939 to a peak of 1,950,000 tonnes in 1943, after which it declined considerably. At
the end of World War II, the western world industry had completed an unprecedented threefold

pg. 11
expansion in capacity in the space of four to five years. Civilian markets had to be developed
for this new capacity. The demand for aluminium proved to be elastic and the expanded
facilities were working at near capacity in a matter of a few years. Constant research and
product development throughout the 1950's, 60'sand 70's led to an almost endless range of
consumer goods incorporating aluminium. Its basic benefits of lightness, strength, durability,
formability, conductivity and finish ability made it a much sought after product. The necessity
for the industry itself to pioneer the use of aluminium led to an integrated structure in the major
companies from the mining of bauxite to, in some cases, the finished consumer product. As the
total world production soared, countries with raw materials and especially those with cheap
energy resources, began to enter the market with primary metal for others to further the process.
Today a significant proportion of metal is marketed in this way.

MAJOR PLAYERS

Hindalco Industries Ltd

National Aluminium Company Ltd (NALCO)

Vedanta Resources plc

Bharat Aluminium Company Co Ltd (BALCO)

Jindal Aluminium Ltd

Apar Industries Ltd

pg. 12
ALUMINIUM INDUSTRY IN INDIA:

1- Hindalco Industries Ltd

Largest integrated aluminium manufacturers in the country; part of the Aditya Birla Group;
products: alumina chemicals, primary aluminium, extrusions, rolled products, wire rods,
aluminium foil, aluminium wheels, copper cathodes; based in Mumbai (Aluminium Non-
Ferrous Metals)

2 -National Aluminium Company Ltd (NALCO)

Public sector Company which is Asia's largest integrated aluminium manufacturer, with
activities that include bauxite mining, alumina refining, aluminium smelting & casting, power
generation, rail & port operations; based in Bhubaneswar (Orissa)

3- Vedanta Resources plc

Leading integrated metals & mining group located in London, UK, but whose operations are
mainly in India; has interests in aluminium (BALCO,MALCO), copper (Sterlite, Konkola,
CMT) & zinc (Hindustan Zinc Ltd)(Minerals and Mining Non-Ferrous Metals Aluminium)

4- Bharat Aluminium Company Co Ltd (BALCO)

Integrated aluminium producers whose activities include mining, smelting, refining &
fabrication; based in New Delhi; part of Vedanta Resources; has an alumina production
capacity of 200,000 tpa & smelting capacity of 100,000 tpa(Aluminium )

5- Jindal Aluminium Ltd

Largest manufacturer of aluminium extruded profiles in India having 6extrusion presses under
one roof; manufactures bars, rods & tubes, structure, architectural, moulding, transport,
industrial & general products; located in Bangalore(Aluminium)

6- Apar Industries Ltd

Manufacturers of transformer oil & specialty oils, overhead power transmission & distribution
aluminium conductors & specialty polymer; corporate office is in Mumbai; products include
industrial & automotive oils, nitrile rubber, latices etc.(Lubricants Aluminium Miscellaneous
Supplies)

pg. 13
7 -Century Extrusions Ltd (CEL)

Manufacturers of aluminium extrusions based in Kolkata; has an installed capacity of 7,500

MT; product categories: architectural applications, transport, electricals, electronics &
communications, industrial applications(Aluminium )

8 -Alufluoride Ltd

Manufacturers of aluminium fluoride based in Visakhapatnam, Andhra Pradesh; has an

installed capacity of 5,000 tonnes (Aluminium)

9- Bhoruka Aluminium Ltd

ISO certified manufacturer of aluminium extrusions; part of the Bhoruka group; supplies its
products to the industrial, transportation, building & construction, electricals & electronics,
solar, and interiors sectors (Aluminium)

10- Karshni Aluminium Co Pvt Ltd

ISO certified manufacturer of industrial and domestic aluminium ladders, aluminium doors and
windows, curtain walls and structural glazings;based in Ghaziabad, Uttar Pradesh; has in-house
powder coating & anodising facilities(Building Materials Aluminium)

11 -Madras Aluminium Company Ltd (MALCO)

Primary aluminium producers whose activities include mining, refining, smelting & power
generation; based in Salem, Tamil Nadu; part of the Vedanta Group; produces ingots, wire rods
& busbars; has a 40,000 tpa smelter & a 80,000 tpa refinery(Aluminium )

12- Manaksia Ltd

Multi-division and multi-location conglomerate in Kolkata; formerly known as Hindustan

Seals Ltd; specialises in the manufacture of packaging products (crowns, closures and metal
containers), metal products and fast moving consumer goods etc.(Packaging Personal Care
Products Aluminium)

13- SP Fabricators Pvt Ltd

Company belonging to the Shapoorji Pallonji group; provides architectural aluminium products
including curtain wall, structural glazing, cladding, windows & doors system, skylights etc.;
has fabrication & glazing facilities at Navi Mumbai(Aluminium)

pg. 14
14 -Sudal Industries Ltd

Manufacturers of aluminium extrusions based in Nashik, Maharashtra; offers products for

automotive, building & construction, electrical, marine& transport needs, including channels,
bars, round tubes etc.; ISO 9001certified(Aluminium)

CONSUMPTION OF ALUMINIUM IN INDIA:

India the second most populous country in the world, with almost one billion citizens has an
annual aluminium consumption of 0.5kg per year whereas the global average is 20 times that
figure, Indian aluminium industrial analysts forecast 7-8 per cent annual growth .Indias
transport sector is expected to be the driving force behind the move, since it consumed 20 per
cent of 540,000 tons produced in the subcontinent during the 1997-98 fiscal year. According
to industry statistics road transport uses about 95 per cent of the total consumption of
aluminium in the transportation sector with the rest going into rail, shipping and aviation. For
example Indias scooter manufacturing sector, which produces about five million scooters
annually, consuming about 47,250 tons of aluminium over the past fiscal year

Top 10 Aluminum Producing Countries in the World

Rank Country Name Thousand Tonnes

1 China 23,475
2 Russia 3,634
3 Canada 3,145
4 UAE 2,474
5 India 2,135
6 US 1,785
7 Australia 1,763
8 Norway 1,284
9 Brazil 971
10 Bahrain 942
Total World 50,000
China has the first rank in the list of aluminum producing countries in the world. They have
much reserves to take out the bauxites and process them into plants to get necessary things for
human use. Aluminium is one of the highest used metal.

pg. 15
pg. 16
Michael E. Porters Five Forces Model

Competition in the industry

Competition is primarily on quality and price, as being a commodity, differentiation is
difficult. However, the recent spate of consolidation has reduced the competitive pressure in
the industry. Further, increasing value addition to aluminium products has helped some
companies protect themselves from the high volatilities witnessed in the industry.

Example
NAME LAST PRICE MARKET CAP SALES NET PROFIT TOTAL ASSETS
HINDALCO 158.95 32,823.30 34,317.66 607.25 65,604.92
Manaksia Alumin 4.9 32.36 265.52 -5.04 200.6
Century Extr 2.25 18 167.97 0.91 71.44
Maan Aluminium 41.05 13.88 190.33 0.6 82.37

Potential of new entrants into industry-

There are high barriers to entry in his industry as-

Large economies of scale

High capital costs
Extended time to set up
Scarcity of power
Government factors
Land problems
Labour law issues

pg. 17
 Power of suppliers

Most domestic players operate integrated plants. Bargaining power is limited in case of
power purchase, as government is the only supplier. However, increasing usage of
captive power plants will help to rationalise power costs to a certain extent in the long-
term.

Power of customer

Being a commodity, customers enjoy relatively high bargaining power, as prices are
determined on demand and supply.

Threat of substitute products

Rise in the input cost of materials is a major threat for aluminium producers like
NALCO. Power is one of the major inputs for aluminium production, constituting
roughly 40% of the production cost. Substantial increase in the cost of coal in recent
past has put additional cost pressure on the Company. The Company faces a major
challenge of procuring required quantity of coal at reasonable price. The recent de-
allocation of captive coal blocks allocated earlier to aluminium players like NALCO,
HINDALCO and Sesa Sterlite has further increases operational challenges for these
companies.

pg. 18
 CHAPTER 2

Company Analysis

pg. 19
ABOUT THE COMPANY

Is corporate in 1981 as a public sector enterprise of the Govt. of India. National Aluminum
Company Ltd., (NALCO) is one of the biggest and Asias largest integrated Aluminum
Complex. Encompassing Bauxite mining, alumina Refining, Aluminum smelting and casting
power generation Rail and port operations.
Commissioned during 1985 to 1987 under extremely difficult logistics of project management
that too without time or cost over runs, the major source came from external sources i.e. 680
million euro dollar loan which NALCO has signed an agreement with 48 International Banks
in Feb 1987 and further US$ 300 million dollar due to inflation and deflation rate. The growth
part is so high that it becomes the top within a span of time clearing all its Foreign Debts.
NALCO has emerged to be a star performer in production and export of Alumina and
Aluminum and more significantly, in propelling self-sustained growth. M/s Engineers India
Ltd., a wholly owned by the Govt. of India a leading engineering company in the prime India
consultant for Mine, Alumina, Aluminum Complex. M/s Development Consultants Pvt. Ltd.,
Calcutta have been retained by the Co. for detailed engineering procurement service assistance
in supervision of construction & commissioning of power plant M/s Hara India Pvt. Ltd., is the
consultant of Port facilities being developed at Visakhapatnam (A.P) by Rail India Technical
& Economic Services (RITES) and National Industrial Development Corporation (NIDC). The
whole company owned by Department of Mines, Govt. of India having its registered &
Corporate Office at P/1, Nayapalli, Bhubaneswar (Orissa).

Leveraging the Technical Collaboration with Aluminum Pechiney of France, ISO 9002
certification of Quality Management, LME registration of Products, Environment care
confirming to ISO 9002 ISO 14001, low cost operations, International Customer base, Nalco
has continued to add value and is poised to grow further. Nalco gives 99.9% purification on its
aluminum material which is best in the world. Transparent & successful operations of NALCO
as well as its contributions, have brought about remarkable socio-economic progress in the two
under developed districts, (Angul & Koraput) of Orissa where the companys plant are located.
Nalco faced a major setback in the year 2000-01 due to ash pond problem. So naturally its
production dressed in the same year & it had to give 22 crore of rupees in aggregate as
compensation amount.

pg. 20
NALCO has earned a number of awards for his excellent performance like:-
1. EEPC Gold Trophy, as Top Exporter 2006-2007.
2. All India Export Award of EEPC as the Star Performer in large
enterprise category, for the year 2007-08.
3. Best ecological Care & Best Workplace Practices at Think Odisha Leadership
Awards function, organized by The Times of India & Teflas.
4. Status of Premier Trading House as per Foreign Trade Policy 2009-10by the Ministry
of Commerce, Govt. of India for the period 09-14.
5. Organization with innovation HR Practices Award at World HRD Congress at
Mumbai.
6. Alumina Refinery bagged the first Runner-up award from CII, Orissa State Center for
the best Safety, Health & Environment practices and also the Pollution Control
Excellence Award 2009 from Orissa state Pollution Control Board.
7. Bauxite Mines bagged 1st prize in Reclamation &Rehabilitation from Indian Bureau of
Mines Conservation Week.
8. Nalco received EEPC (Engineering Export Promotion Council)s Star Performer
Award, for its outstanding export performance during the year 2013-14. Bauxite Mines
bagged the Pollution Control Excellence Award -2015, instituted by the State Pollution
Control Board, Odisha (OSPCB). Our Alumina Refinery received the Kalinga Safety
Award 2014, in the Gold category, at the Odisha State Safety Conclave 2015.
9. The Performance Excellence Award, instituted by the Indian Institution of Industrial
Engineering (IIIE). Again, our Alumina Refinery bagged the prestigious Business
Excellence Star Recognition Award. The Institute of Quality, CII adjudged Nalco the
Leader in Process Industries, for Excellence in Operations Management. Our Captive
Power Plant was awarded for proactive climate change, during a seminar on
Microalgae in developing a Sustainable Society. Nalco has also been selected for
CAPEXILs Highest Export Award for the year 2012-13, to be received this month.

pg. 21
LANDMARK EVENTS OF THE COMPANY
1981- Formulation of the company.
1982 - Start of commissioning.
1987 - Commencement of sale of metal.
1988 - Commencement of Alumina Export.
1988 - Commencement of Metal Export
1989 - London Metal Exchange (LME) Registration

Brief history of growth and developments of NALCO

National Aluminium Company Limited (NALCO) is a Navratna CPSE under Ministry of

Mines, Govt. of India. It was established on 7th January, 1981, with its registered office at
Bhubaneswar. The Company is a group A CPSE having integrated and diversified operations
in mining, metal and power with sales turnover of Rs 7024 crore in financial year 2013-14.
Presently, Government of India holds 80.93% equity of NALCO.

The company has a 68.25 lakh TPA Bauxite Mine & 22.75 lakh TPA Alumina Refinery located
at Damanjodi in Koraput dist. of Odisha, and 4.60 lakh TPA Aluminium Smelter & 1200 MW
Captive Power Plant located at Angul, Odisha. As per diversification plan, NALCO has
ventured into renewable energy sectors. The Company has successfully commissioned two
wind power plants. A 50.4 MW wind power plant at Gandikota, Andhra Pradesh and another
of 47.6 MW wind power plant at Jaisalmer, Rajasthan are operational since December, 2012
and January, 2014 respectively. 260 KWp Rooftop Solar Power System has been made
operational at Office and Township, Bhubaneswar during FY 2014-15.

NALCO has bulk shipment facilities at Vizag port for export of Alumina/Aluminium and
import of caustic soda and also utilises facilities of Kolkata and Paradeep ports. The company
has its regional marketing offices in Delhi, Kolkata, Mumbai & Chennai its branch offices at
Bangalore, Paradeep, Ahmedabad and its 11 stockyards at various locations in the Country.

NALCO is the first Company in Aluminium sector in the Country to venture into International
market in a big way with London Metal Exchange (LME) registration since May, 1989. The
Company is listed at Bombay Stock Exchange (BSE) since 1992. All the manufacturing units
and the port facility of the Company, are certified to ISO 9001, ISO 14001, and OHSAS 18001

pg. 22
Management Systems and Integrated Management System operates at these units. The energy
intensive manufacturing units i.e. Smelter, CPP & Alumina Refinery are also certified to ISO
50001 Standard for energy management system. SA 8000 certification is also obtained for all
the manufacturing units and corporate office

In its efforts for capacity addition and expansion, NALCO has extensive plans for brown field
and green field expansion projects, which include 1 MTPA Alumina Refinery in Gujarat in JV
with Gujarat Mineral Development Corporation (GMDC) (Greenfield), 5th Stream of 1 MTPA
capacity in existing Alumina Refinery at Damanjodi (Brownfield), 0.5 MTPA Aluminium
Smelter and 1050 MW Power Complex in Odisha (Greenfield), 0.5 MTPA Aluminium Smelter
abroad and development of bauxite mines at Gudem and KR Konda in Andhra Pradesh and
Pottangi in Odisha etc.

The Company has plans to set up a 2 lakh TPA caustic soda plant in JV with Gujarat Alkalies
& Chemicals Limited (GACL) and 55,000 TPA Aluminium Conductor plant in JV with Power
Grid Corporation of India Limited (PGCIL). The Company has plans to set up a 14MW wind
power plant at mined out area of Damanjodi and another 100MW wind power plant at any
suitable location in the Country.

The company has formed a JV Company with Nuclear Power Corporation of India Limited
(NPCIL) for establishing 2X700 MW Nuclear Power Plants at an estimated investment of Rs.
11,459 crore at Kakrapara in Gujarat. For development of downstream ancillary industries, a
JV Company has been formed with IDCO, Odisha for Angul Aluminium Park.

The company is involved in playing a significant role in the socio-economic development of

the areas where it operates. Rehabilitation of displaced families, employment, income
generation & health care for local people, development of infrastructure, care for environment
and various humanitarian goodwill missions have earned NALCO a place of pride in the
corporate world. With the setting up of NALCO Foundation and doubling of CSR budget to
2% of the net profit, the company is well-poised to augment its activities on social
responsibilities significantly.

In order to promote education amongst tribal children, NALCO has sponsored more than 655
students in reputed educational institutes in Odisha by way of bearing all their expenses on
studies including lodging and boarding etc.

pg. 23
Future growth prospects of NALCO

Future growth of the Company is likely to come from transport, building and construction
sectors which are the primary consumers of aluminium. Additionally, with Governments
emphasis on infrastructure development and the power sector is likely to grow which in turn
will reduce the cost component for NALCO thereby increasing its profit margins.

SEGMENTS OF NALCO

Segment / Capacity Special technological features

Bauxite and mines, On Panchpatmali hills of Koraput district in Orissa, a fully

panchapatmali, mechanized opencast mine of 4.8 million tpa capacity is in
Koraput operation since November, 1985, serving feedstock to
Alumina Refinery at Damanjodi located on the foothills.

Presently, the capacity is being expanded to 6.3 million tpa.

The salient features:

Area of deposit - 16 sq. km.

Resource - 310 million tones

Ore quality - Alumina 45%, Silica 2%

Mineralogy - Over 90% gibbsitic

Over burden - 3 meters (average)

Ore thickness - 14 meters (average)

Transport - 14.6 km long single flight multicurve cable

belt conveyor of 1800 tph

pg. 24
 Aluminium Plant, The 15, 75,000 tpa Alumina Refinery, having three parallel
Damanjodi Orissa. streams of equal capacity, is located in the picturesque valley
21,00,000 tpa of Damanjodi in Koraput district. In operation since
Chemical Plant September, 1986, the Refinery is designed to:

Provide Alumina to the Company's Smelter at Angul

Export the balance Alumina to overseas markets

through Visakhapatnam Port

The salient features:

Atmospheric pressure digestion process

Pre-desilication and inter-stage cooling for higher

productivity

Energy efficient fluidised bed calciners

Co-generation of 3x18.5 MW power by use of back

pressure turbine in steam generation plant

Advanced red mud disposal system

Captive Power Plant Close to the Aluminium Smelter at Angul, a Captive Power
960 MW (being Plant of 960 MW capacity, comprising 8 x 120 MW clusters,
Expanded to 960 has been established for firm supply of power to the Smelter.
MW) Coal Fired
Presently, the capacity is being expanded to 1200 MW.
Thermal power
plant Turbines. The salient features:

Micro-processor based burner management system for

optimum thermal efficiency

Computer controlled data acquisition system for on-

line monitoring

pg. 25
 Automatic turbine run-up system

Specially designed barrel type high pressure turbine

Electrostatic precipitators with advanced intelligent

controllers

Wet disposal of ash

The water for the Plant is drawn from River Brahmani through
a 7 km long double circuit pipeline. The coal demand is met
from a mine of 3.5 million tpa capacity opened up for Nalco at
Bharatpur in Talcher by Mahanadi Coalfields Limited. The
Power Plant is inter-connected with the State Grid.

Port Facilities The salient features:

Maximum ship size - 35000 DWT

Alumina reception - 48 x 53 tonne pay-load wagons

Alumina storage - 3 x 25000 ton RCC Silos

Ship loading rate - 2200 tph

These facilities are being upgraded to handle higher

volumes of exports, following expansion of production
capacities.

pg. 26
LOCATIONS OF NALCO

Nalco projects mostly located in backward districts of Orissa were expeditiously completed on
schedule on the very difficult logistics of project management. The Mines and Alumina
Refinery Complex has located at Damanjodi in Koraput District. This is a picture sque valley
of this beautiful district at the foot of Panchpatmali Hills. A 16 km long uphill road connects
the plateau of Panchapatmali, where the bauxite Mines of Nalco is located. Damanjodi is 12
Km. from Semiliguda, a small town located on the NH-43 that connects Vizianagarm of
Andhra Pradesh with Jagdalpur of Chatisgarh. The Vizianagaram is a distance of 135
Km..There is of course a passenger rail service from Koraput to Visakhapatnam through the
most enchanting hilly terrains of Aruku Valley and Anantagiri. Damanjodi is also connected
by Rail Transport from Bhubaneswar, Rayagada, Visakhapatnam, and Sambalpur & Kolkata.
It is also connected by bus service from Berhampur, Cuttack, Bhubaneswar, and Angul &
Samabalpur. Its Smelter Plant and CPP are located at Angul, while the corporate head quarter
is located at Bhubaneswar, the capital city of Orissa.

pg. 27
 PLANT LOCATION SITES

pg. 28
ORGANISATIONAL STRUCTURE: -

NALCO is a govt. of INDIA Enterprise under the administration control of the ministry
of mines. The company is managed by Board of Directors appointed by the president of INDIA.
The Board consists of 10 Directors including the Chairman cum Managing Director of the
company. There are 4 functional full-time directors heading production, finance, project and
technical personal and administrative disciplines. There are four senior Govt. officials
nominated to the Board as Directors on ex-officio basis. Besides there are three non-official
directors in the appointed to represent the interests of financial institutions, allied Industries
and R&D objectives of the company. Thus the Board of company is a full of highly experienced
and outstanding potentials drawn from various fields of specialization. The company enjoys
maximum possible operational autonomy consistent with the overall corporate objectives,
basic policies and programmes two with a view to achieve optimum utilization of its resources
subject to the provision of Indian companies act. The memorandum of understanding signed
with the govt and also subject to policies formulated by the Board of Directors from time to
time the Chairman cum MD has full power to sanction expenditures or to deal with other
matters for effective functioning of the company.

The management Control System is based on delegation of authority and individual

accountability for results. The responsibility and authority accountability for result. The
responsibility and authority to take decisions on various matters are delegated by the Chairman-
cum MD to different levels in the management.

pg. 29
VISION

To be a reputed global company in the metals and energy sectors

MISSION

To achieve sustainable growth in business through diversification

Innovation and global competitive edge.

To continuously develop human resources, create safe working

Conditions, improve productivity and quality and reduce cost and waste.

To satisfy the customers and shareholders, employees and all

Other stakeholders.

To be a good corporate citizen, protecting and enhancing the

Environment as well as discharging social responsibility in order to
Ensure sustainable growth.

OBJECTIVES
National aluminium company limited through efficiently operated aluminium complex,
Bauxite mining, alumina refining, aluminium smelting & casting, powder generation, rail &
port operation. Besides fulfilling needs of the customer in terms of quantity, focus on quality,
value addition and beneficiation to the satisfaction of the customers. Marketing of aluminium
as a main product.

pg. 30
 MARKETING

Marketing strategy
A marketing strategy is a procs that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. A marketing strategy should be centered around the key concept that customer
satisfaction is the main goal.

A marketing strategy is most effective when it is an integral components of firm strategy,

defining how the organization will successfully engage customers, prospects and competitors
in the market arena. Corporate missions and corporate goals. As the customer constitutes the
source of a companys revenue. Marketing strategy is closely linked with sales. A key
component of marketing strategy is often to keep marketing in line with a companys
overarching mission statement.

Distribution network
Bauxite mined from
Panchamali hill at Koraput.
Transportation through 14.6 km long cable belt.

Alumina refinery at Damanjodi

Here bauxite ore converts to alumina
Transportation
Through train
Aluminium smelting at angul
Here alumina converts into aluminium &
Alumina converted into ingot, rod and billet
Transport through truck &
Railway.

pg. 31
 Stockyards
Jaipur, Visakhapatnam, Bangalore, Silvasa
Bhiwandi, Kolkata
Transport through train, truck & ship
Sell the products both in domestic & export

Pricing
The pricing strategy of Nalco is based on.
1. LME (London metal exchange) so, the price changes according to the changes in the LME.
2. Demand of the (A1) Market or demand of the customers.
3. Pressure from competitors. As Nalco also has some strong competitors, pricing is done by
keeping a keen view on the competitors.
Overall, the pricing strategy of Nalco generally updated at a monthly basis but it changes
according to the situation.

Promotion
As the companys present market is a buyer market. So its not required to spend money. But
somewhere as global company it need some promotion. Nalco use to do some small
promotional activities which we can see in form of CSR like organizing cricket matches,
funding journal etc.

Competitors

Jindal Aluminium ltd.

National small industries corporation.
Hindustan seals ltd.
Bajaj auto ltd.
Tata motors ltd etc

pg. 32
Operations
NALCO headquartered at Bhubaneswar, Odisha.

NALCO operates from two major Units

Mining and Refinery (M&R) complex

* Bauxite Mines located at Panchpatmali hills, Koraput with capacity of 68.25 lakh TPA
* Alumina Refinery located at Damanjodi, Odisha with capacity of 22.75 lakh TPA

Smelter and Power (S&P) complex

* Aluminium Smelter located at Angul, Odisha with capacity of 4.60 lakh TPA
* Captive Power Plant located at Angul, Odisha with capacity of 1200 MW

Other operations are:

Port Facilities at Visakhapatnam and Paradip.

Solar Power at Bhubaneswar.
Wind Power Plants at Gandikota, Jaisalmer.
Regional offices at Kolkata, Mumbai, Delhi, Chennai

pg. 33
 Organizational Hierarchy

Shri T K Chand (chairman-Cum-Managing Director)

Shri N.R Mohanty Director (P&T)

Shri S.C.Padhy director (HR)

pg. 34
Shri K. C. Samal is the Director (Finance)

Ms. Soma Mondal is the Director (Commercial)

Shri V. Balasubramanyam Director (Production)

pg. 35
Shri R. Sridharan is the Part-time Official Director

Dr. N K Singh was inducted to the Board as a Part-time Official Director

CMD : Chairman cum Managing Director

GM : General Manager
P&T : Project and Technical
M&R : Mining and Refinery
H&A : HRD and Administration
P&A : Personal and Administration
CPP : Captive Power plant

pg. 36
TOP MANAGEMENT

pg. 37
Swot analysis of Nalco
Strengths-
It has a very rich bauxite mine.
Nalco is one of the lowest cost procedure in its segment.
It is one of the pioneer in the field of aluminium.
It has a strong technical man power.
Strong cash reserves with no debt.

Weakness-

Being a public sector company, it has a slow decision making process compare to any
private sector.
Shortage in coal linkages has to higher share of imported coal at relatively much
higher price.

Opportunities-
Automobile, consumer durables and engineering sectors are at very nascent stage
compare to global scale.
Low per capita housing and booming retail industry would drive construction
demand.
Low per capita aluminium consumption compare with other countries offers a higher
growth.

Threats-
Instability in LME aluminium price (currently at five year low) will affect margin
badly.
Significant distribution in demand in developed countries from key consumer
segment.
Competition from scrap imports and very high threat from substitute materials
particular plastics.

pg. 38
 PRODUCTS
Aluminium Metal
Ingots
Alloy Ingots
T-Ingots
Sows
Billets
Wire Rods
Cast strips

Alumina & Hydrate

Calcined Alumina
Alumina Hydrate

Zeolite-A

Special Products
Specialty
Hydrate/Alumina
(Alumina Chemicals)

Rolled Product
Aluminium Rolled
Products
Aluminium
Chequered Sheets

Power
Thermal Power
Co-generation
Power
Wind Power
Solar Power

pg. 39
 CHAPTER -3

TASKS
ACCOMPLISHED
DURING
INTERNSHIP

pg. 40
Roles and Responsibilities

I have undergone an internship in National Aluminium Company Limited limited in finance

department from 4th July 2016 to 03rd August 2016 on THE FINANCIAL PERFORMANCE
IN NATIONAL ALUMINIUM COMPANY LIMITD THROUGHT RATIO ANALYSIS
where I was reporting to Mr. B.C BARIK who is the Deputy Manager of finance department
of Nalco Angul.

When I was collect the data of past 3 years.

To Prepare a Ratio for 3 years to know what was the performance of the company.

Calculation and analysis of various ratios.

Comparative study and interpretation of various ratios.

Description of tasks handled

I was prepared report on the financial performance in national aluminium company limited
through ratio analysis when I have to prepared current ratio, stock turnover ratio, debtor
turnover ratio, cash profit ratio, gross profit ratio etc .

An intern worked in the field of finance helps me to understand company work how I have
to prepared ratio by working under Dy manager of finance, I am able to understand and follow
financial trends. I have practically apply his theoretical knowledge of financial laws,
government policies in his day to day work at a finance company.

pg. 41
 CHAPTER - 4

ANALYSIS OF
THE RESEARCH
UNDERTAKEN

pg. 42
INTRODUCTION

About the subject: Finance

Finance is the science of funds management. The general areas of finance are business finance,
personal finance and public finance. Finance includes lending money. The field of finance deals
with the concepts of time, money and how they are interrelated. It also deals with how money
is spent and budgeted. Finance works most basically through individuals and business
organizations depositing money in bank. The bank then lends the money out to other
individuals or corporations for consumption or investment, and charges interest on the loans.

Financial Statements
Financial statements are formal records of the financial activities of a business, person,
or other entity. Financial statements are often referred to as accounts, although the term
financial statements are also used particularly by accounts. Financial statement provides an
overview of a business or persons financial condition in both short and long term. All the
relevant financial information of a business enterprise presented in a structured manner and in
a form easy to understand, is called the financial statements.

Types of financial statements

1. Balance sheet: also referred to as statement of financial position or condition, reports

on a firms assets, liabilities, and Ownership equity at a given point in time.

2. Income statement: also referred to as Profit and Loss statement (or a P&L), reports

on a firms income, expenses and profits over a period of time. Profit & Loss account

provides information on the enterprise. These include sales and the various expenses

during the processing state.

3. Statement of retained earnings: explains the changes in a firms retained earnings

over the reporting period.

4. Statement of cash flow: reports on a firms cash flow activities, particularly its

operating, investing and financing activities.

pg. 43
For large corporations, these statements are often complex and many include an extensive set

of notes to the financial statements and management discussion and analysis. The notes

typically describe each item on the balance sheet, income statement and cash flow statement in

further detail. Notes to financial statements are considered an integral part of the financial

statements.

Importance of financial statements

The objective of financial statements is to provide information about the financial

position, performance and changes in financial position of an enterprise that is useful
to a wide range of users in making economic decisions. Financial statements should be
understandable, relevant, reliable and comparable. Reported assets, liabilities and
equity are directly related to an organizations financial position. Reported income and
expenses are directly related to an organizations financial performance.

Financial statements are intended to be understandable by readers who have a

reasonable knowledge of business and economic activities and accounting and who are
willing to study the information diligently. Financial statements may be used by users
for different purposes.
Owners and managers require financial statements to make important business
decisions that affect its continued operations. Financial analysis is then performed on
these statements to provide management with a more detailed understanding of the
figures. These statements are also used as part of figures. These statements are also used
as a part of managements annual report to the stockholders.
Employees also need these reports in making collective bargaining agreements (CBA)
with the management, in the case of labour unions or for individuals in discussing their
compensation promotion and rankings.
Prospective investors make use of financial statements to assess the viability of
investing in a business. Financial analyses are often used by investors and are prepared
by professionals (financial analysts), thus providing them with the basis for making
investment decisions.

pg. 44
 Financial institutions (banks and other lending companies) use them to decide whether
to grant a firm with fresh working capital or extend debt securities (such as a long-term
bank loan or debentures) to financial expansion and other significant expenditures.
Government entities (tax authorities) need financial statements to ascertain the
propriety and accuracy of taxes and other duties declared and paid by a firm.
Vendors who extend credit to a business require financial statements to assess the
creditworthiness of the business.
Media and the general public are also interested in financial statements for a variety of
reasons.

Nature of financial statements

Allow the manager or analyst to track the financial condition and operating
results of the business.
Assist in understanding the cash flow patterns in more specific terms. Since
financial statements are the source for a good portion of analytical effort, we
must first understand their nature, coverage and limitations before we can use
the data and observations derived from these statements for our analytical
judgments. Financial statements reflect the cumulative effects of all of
managements past decision.
Financial statements are governed by rules that attempt to consistently.
And fairly account for every business transaction using the following
conservative principles:

Transactions are recorded at values prevailing at the time.

Adjustments to recorded values are made only if values decline.
Revenues and costs are recognized when committed to, not when cash
actually changes hands.
Periodic matching of revenues and costs is achieved via accruals, deferrals,
and accounting allocations.
Allowances for negative contingencies are required in the form of estimates
that reduce both profits and recorded value, usually affecting shareholders
equity or special set-asides.

pg. 45
 These rules leave reported financial accounting results open to considerable
interpretation, especially if the analyst seeks to understand a firms economic
performance and to establish the basis for shareholder value results. Its common
practice among professional analysts to adjust the data reflected on financial
statements for known accounting transactions which do not affect cash flows and
to make assumptions about the economic values underlying recorded asset values.

Financial Analysis:

Financial analysis (also referred to as financial statement analysis or accounting analysis) refers
to an assessment of the viability, stability and profitability of a business, sub-business or project.
It is performed by professionals who prepare reports using ratios that make use of information
taken from financial statements and other reports. These reports are usually presented to the
top management as one of their bases in making business decisions. Based on these reports,
management may:
Continue or discontinue its main operation or part of its business.
Make or purchase certain materials in manufacture of its product.
Acquire or rent/lease certain machineries and equipment in the production of its goods.
Issue stocks or negotiate for a bank loan to increase its working capital.
Make decisions regarding investing or lending capital.
Other decisions that allow management to make an informed selection on various alternatives
in the conduct of its business.

Methods of financial statement analysis:

1. Comparative financial statements

2. Common size statements
3. Trend analysis
4. Funds flow analysis
5. Cash flow analysis
6. Cost volume profit analysis
7. Ratio analysis

pg. 46
Comparative Financial Statement
In comparative statement analysis two or more Balance sheets and the Income statement of a
firm are presented simultaneously in columnar form. The financial data for two or more years
are placed in adjacent columns and thereby the financial data is provided a times perspective
in order to facilitate periodic comparison.

Common Size Statement

The common size statement represents the relationship of different items of a financial
statement with some common item by expressing such item as a percentage of the common
items. The common size statements, Balance Sheet and Income statement are shown in
analyzed percentage.

Trend Analysis

The financial statements may be analyzed by computing trend of series of information. This
method evaluate the direction upwards or downwards and involves the computation of the
percentage relationship that each statement item bears to the same item in the base year.

RATIOS

A ratio is a simple arithmetical expression of the relationship of one number to another.

According to Kell and Bedford, a ratio is an expression of the qualitative relationship between
two numbers. Ratios provide clues to the financial position of a concern. These are the pointers
or indicators of financial strength, soundness, position or weakness of an enterprise. One can
draw conclusions about the exact financial positions of a concern with the help of ratios.

NET PROFIT RATIO

Net profit ratio establishes a relationship between net profit after taxes and sales and
indicates the efficiency of the management in manufacturing, selling, administrative
and other activities of the firm. This ratio is the overall measure of the firms
profitability.
Net profit ratio = Gross Profit/Net Sales*100

pg. 47
 GROSS PROFIT RATIO

It measures the relationship of gross profit to net sales and is usually represented as a
percentage.
Gross profit ratio = Gross profit/ Net sales*100
The Gross Profit ratio reflects the efficiency with which a firm produces its products. It
indicates the extent to which selling prices of goods per unit may decline without
resulting in losses on operations of a firm.

CASH PROFIT RATIO

This ratio measures the relationship between cash generated from operations and the net
sales.
Cash profit ratio = cash profit/ net sales*100
The net profits of a firm are affected by depreciation charged. Depreciation being a non
cash expense it is better to calculate cash profit ratio.

OPERATING RATIO

It establishes the relationship between cost of goods sold and other operating expenses
on the one hand and the sales on the other.
Operating ratio = Operating Cost/Net Sales*100
(Operating Cost = Cost of goods sold + operating expenses)
Higher the Operating ratio, less favorable it is because; it would have a small margin
(operating profit) to cover interest, dividend and reserves.

pg. 48
 TURNOVER RATIOS

INVENTORY TURNOVER RATIO:

Inventory turnover ratio = Cost of goods sold / average inventory.

(Cost of goods sold = sales gross profit)

The inventory turnover ratio measures the number of times a firm sells its inventory during

the year. A high inventory turnover ratio indicated that the product is selling well. The

inventory turnover ratio should be done by inventory categories or by

individual product.

DEBTORS TURNOVER RATIO:

Debtors turnover ratio = Net Credit annual sale/ Average trade debtors
Higher the value of Debtors turnover ratio the more efficient is the management of
debtors/sales or more liquid are the debtors.

FINANCIAL RATIOS

CURRENT RATIO:

This ratio is obtained by dividing the Total Current Assets of a firm by its Total Current
Liabilities. The ratio is regarded as a test of liquidity for a firm. It expresses the working
capital relation of current assets available to meet the firms current obligations.
Current ratio = Total Current Assets/ Total Current Liabilities

QUICK RATIO/LIQUID RATIO:

This ratio is obtained by dividing the Total Quick Assets of a firm by its Total Current
Liabilities. Sometimes a firm could be carrying heavy inventory as a part of its current assets,
which might be obsolete or slow moving. Thus eliminating inventory from current assets and
then doing the liquidity test is measured by this ratio. The ratio is regarded as an acid test of
liquidity for a firm.

pg. 49
 It expresses the true working capital relationship of its cash, accounts receivables,
prepaid and notes receivables available to meet the firms current obligations.
Quick Ratio = Total Quick Assets/Total Current Liabilities
(Quick Assets = Total Current Assets - Inventory)

SOLVENCY RATIOS

DEBT EQUITY RATIO:

This ratio is obtained by dividing the Total Liability or Debt of a firm by Shareholders funds.
Debt Equity Ratio = Long-term debts / Shareholders Funds
This ratio indicates relationship between external equities and internal equities.

Limitations of Financial Statement Analysis

Financial statement is a powerful mechanism of determining financial strength and weakness

of a firm. Therefore the financial statement analysis suffers from some limitations:

Shareholders, Investors etc. are more interested in knowing the likely prospects in
the future. The financial statements are not of much help as information gives in
these statement does not reflect the future.
Financial statements display the position in monetary terms. The statements do not
include a very important asset, namely human resources.
The financial statement can be drawn up on the basis of different accounting policies.
Financial statements are the outcomes of accounting concepts and conventions.
However, some valuations like stock, treatment of deferred revenue expenditure,
provision for depreciation etc. are based on personal judgment and therefore are not
free from bias.
It does not consider changes in price levels
Analysis is only a means and not an end in itself. The analysts have to make
interpretations and draw their own conclusions. Different people may interpret the
same analysis differently.

pg. 50
 RESEARCH DESIGN

Title of Study
A STUDY ON THE NATIONAL ALUMINIUM COMPANY LIMITED (NALCO)
THROUGH RATIO ANALYSIS

Statement of problem:

This study has been undertaken to study the Financial Performance of National
Aluminum Company Limited through Ratio Analysis with the help of financial
statements of the firm to as to know more about the profitability of the concern.

Objectives of Study:

This project has been undertaken to study the financial performance of National
Aluminium Company Limited for the financial years from 2013-14 to 2014-15.

The study was conducted as a part of requirement of the course and Ratio analysis
formed the basis of the study.

The study also helped to analyze the profitability of the firm during the above financial
years.

pg. 51
Scope of Study

The project was undertaken in National Aluminium Company Limited and done
within the firm with the help of financial statements.
The profitability and financial performance of the firm was analyzed with the help of
Ratio Analysis.
The study also helped in taking necessary steps in improving performance of the firm

the future.

Methodology of study:

It includes

Collection of data : Secondary data

Data Analysis

Collection of Data

Data constitute of foundation of the Research Process. To make a decision in any business
situation data is more important. Success of any statistical investigation depends on the
availability of accurate and reliable data. The research processes adopted in this study are based
on sources and methods of collecting data. There are two types of data. They are as under:

Primary Data
Secondary Data
Data collected from primary methods or which is the first hand information is known as
primary data. Data collected from secondary methods or which is already available, second
hand data is known as secondary data.

pg. 52
 SECONDARY DATA

The Sources of secondary data may be divided into two categories, published and unpublished.
The Balance Sheet and Profit & Loss Account can be obtained from the annual reports of the
Company. Unpublished data from the internal records. It includes:

Schedule of Accounts

Balance Sheet Abstract

Cash Flow Statement

Secondary source of data

Annual report
Study of files and other documents.
Web sites of Nalco India Ltd.
Web sites of money control.
Review of previous reports related to the topic.
Study about the topic Ration Analysis from various sources.

Secondary Datas were collected by using company website, Annual report and books. In
this I have used secondary data most of which was obtained from internal records of the
company. Usage of secondary data enjoys some advantages but it suffers some
limitations.

pg. 53
Limitations of study:

The biggest limitation with respect to the topic was that the data was only
the secondary data and no primary data was provided because of the
company rules and regulations.

The ratios cannot be taken as final while deciding the financial condition of the
company is good or bad ratios are simply indicators to the fact.

Due to confidentially aspects some data has to be collected from an identical plant of
another major Aluminum Company, buts depicts the same trends as is persistent to the
Nalco.

The Analyst work with the figures already taken place, so damage, which has been
taken, cannot be stopped but rectified so that it does not occur in future.

The study is limitation to the scope of data provided publically

pg. 54
 INTERPRETATION
AND DATA
ANALYSIS

pg. 55
 TABLE NO 4.1 EARNING PER SHARE OF THE FIRM

year 2014-15 2013-14 2012-13

NET PROFIT(IN CRORE) 1322 642 593
NO OF EQUITY SHARES 600 600 600
EARNING PER 2.2 1.07 0.98
SHARE(RS)

EARNINGS PER SHARE = NET PRROFIT/ NO. OF EQUITY SHARES

Earnings per share gives a view of the comparative earnings or earning power of a firm. EPS
calculated for a number of years indicates whether or not earning power of the firm has
increased. It is seen that in the above table the earnings per share of the firm is increasing every
year.

INFERNCE: Due to share buyback program the total number of outstanding shares decreases.
As a result earning per share increase.
(Buyback program is to buy a company's own shares by its promoters itself)

EARNING PER SHARE

2500

2000

1500

1000

500

0
2014-15 2013-14 2012-13

NET PROFIT(IN CRORE) NO OF EQUITY SHARES EARNING PER SHARE(RS)

FIG 4.1a Earning per share

pg. 56
TABLE N0-4.2 THE NET PROFIT RATIO OF THE FIRM

YEARS 2014-15 2013-14 2012-13

NET PROFIT 1322 642 593
NET SALES 7262 6649 6809
NET PROFIT 18.2 9.65 8.7
RATIO

Net Profit ratio = (Net Profit/ Net Sales)*100

Net Profit ratio indicates the efficiency of the management in manufacturing, selling,
administrative and other activities of the firm.
Higher the ratio the better is the profitability
INFERENCE: The Firms net profit ratio has increased over the years showing that
profitability also has increased.

NET PROFIT
2014-15 2013-14 2012-13

6809
6649
7262

593
8.7
2012-13
642
1322 9.65
2013-14
18.2
2014-15

NET PROFIT NET SALES NET PROFIT

RATIO

FIG 4.2B NET PROFIT RATIO

pg. 57
TABLE NO 4.3 THE GROSS PROFIT RATIO OF THE FIRM

years 2014-15 2013-14 2012-

13

GROSS PROFIT 3171.07 2454.69 2162.45

NET SALES 7262 6649 6809

GROSS PROFIT RATIO 43.66 36.91 31.75

gross profit ratio = gross profit/ net sales*100

The Gross Profit ratio reflects the efficiency with which a firm produces its product. It indicates
that a company is a good financial health. As seen from the above table the gross profit ratio
has increased over the years.
INFERENCE: A high gross profit margin indicates your company is efficient in the
manufacturing and distribution processes.

GROSS PROFIT RATIO

8000
7000
6000
5000
4000
3000
2000
1000
0
GROSS PROFIT NET SALES GROSS PROFIT RATIO

2014-15 2013-14 2012-13

Fig 4.3c Gross profit ratio

pg. 58
TABLE NO- THE CASH PROFIT RATIO OF THE FIRM

YEARS 2014-15 2013-14 2012-13

NET PROFIT 1322 642 593
DEPRECIATION 414 525 505
CASH PROFIT 1736 1167 1098

YEARS 2014-15 2013-14 2012-13

CASH PROFIT 1736 1167 1098
NET SALES 7262 6649 6809
CASH PROFIT 0.23 0.17 0.16
RATIO

CASH PROFIT RATIO= CASH PROFIT/ NET SALES

Cash profit ratio= cash profit/ net sales
(Cash profit= Net Profit +Depreciation) Cash profit ratio measures the relationship between
cash generated from operation and net sales. The cash profit ratio has increased over the year.

INFERENCE: In this table we saw in 2012-13 to 2014-15 the cash profit ratio of the firm has
increased over the year indicating lower rate of depreciation.

cash profit ratio

10000
9000 0.23
8000 0.17 0.16
7000
6000
5000 7262
6649 6809
4000
3000
2000
1000 1736 1167 1098
0
2014-15 2013-14 2012-13

CASH PROFIT NET SALES CASH PROFIT RATIO

Fig number-4.4d

pg. 59
TABLE NO-4.5 DEBTORS TURNOVER RATIO OF THE FIRM

YEARS 2015 2014 2013

DEBTOR TURNOVER RATIO 40.52 35.08 49.21

Debtors Turnover ratio= Net Credit annual sale / Average trade debtors
[Average trade debtors= (opening debtors=closing debtors)/2]

Higher the value of Debtors turnover ratio the more efficient is the management of
debtors/sales or more liquid are the debtors. Here the Debtors turnover ratio has decreased
from the year 2013 to 2015.
INFERENCE: Here debtor turnover ratio is decreasing, this means that your average
collections are taking longer. The reverse is true if you turnover in days is decreasing; this
means that your average collection period is decreasing also.

DEBTOR TURNOVER RATIO

60

50
49.21
40
40.52
30 35.08

20

10

0
2015 2014 2013

FIG 4.5E DEBTOR TURNOVER RATIO

pg. 60
TABLE NO-4.6 THE STOCK TURNOVER RATIO OF THE
FIRM

YEARS 2015 2014 2013

STOCK TURNOVER 0 0 5.33
RATIO

STOCK TURNOVER RATIO= COST OF GOODS SOLD/ AVERAGE STOCK

Inventory turnover is a measure of how quickly a company can convert its inventory into cash
and profits. The goal of a company is to hold enough inventory to meet its clients orders
continuously, but not so much that the cost of holding it outweighs the profits.

A decreasing inventory indicates that the company is not converting its inventory into
cash as quickly as before. When this occurs, the company ends up having increased storage,
insurance and maintenance costs.

INFERENCE; When a companys inventory turnover is decreasing, it means that it is holding

its inventory longer than previously measured time periods. The measure of how long a
company holds its inventory before selling it is referred to as the inventory turnover ratio.

STOCK TURNOVER RATIO

6

0
2015 2014 2013

FIG 4.6F- STOCK TURNOVER RATIO

pg. 61
Table no-4.7 SHOWING CURRENT RATIO OF THE FIRM

It measures the ability of the firm to meet its current obligations. It also reflects the firms short-
term solvency. Current Ratio of 2:1 is considered to be satisfactory for a manufacturing
company.
Current Assets
Current Ratio = -----------------------
Current Liabilities
The higher the Current Ratio the greater is the Margin of Safety and the larger amount of
current asset and more is the firms ability to meet its obligation

YEARS 2015 2014 2013

CURRENT ASSETS 7712.18 7425.54 7030.59
CURRENT 1967.04 3242.75 3217.59
LIABILITIES
CURRENT RATIO 3.92 2.28 2.18

During the review of Current Ratio of Nalco for the last three years i.e. from 2013 to 2015, it
appears that the current ratio has increased from 2.18:1 to 3.92:1.
INFERENCE:
According to thumb rule the ideal current ratio is 2:1. With comparison to this NALCOs last
3yrs Current Ratio signifies firm have current assets which are averagely 2.79times the current
liabilities. This signifies the healthy conditions of the Firm.

pg. 62
 current ratio
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2015 2014 2013

CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO

Fig no-4.7G current ratio

pg. 63
TABLE NO-4.8 SHOWING LIQUID RATIO OF THE FIRM

YEARS 2015 2014 2013

CURRENT ASSETS 7712.18 7425.54 7030.23
STOCK 1165.56 1173.66 1380.64
LIQUID ASSETS(CA-STOCK) 6546.62 6251.88 5649.59

YEARS 2015 2014 2013

LIQUID ASSETS 6546.62 6251.88 5649.59
CURRENT LIABILITIES 1967.04 3242.75 3217.59
LIQUID RATIO 3.32 1.92 1.75

Liquid ratio measures the liquidity of the firm. An ideal quick ratio of 1:1 is considered
satisfactory. As seen from above table the liquid ratio of the firm has crossed up the satisfactory
ratio.

INFERENCE: The liquid ratio of the firm has increased as compared to 2013 and 2014
showing that the companys liquidity position of the firm is very good.

Liquid ratio
7000

6000

5000

4000

3000

2000

1000

0
2015 2014 2013

LIQUID ASSETS CURRENT LIABILITIES LIQUID RATIO

Fig no-4.8H Liquid ratio

pg. 64
 Findings,
Conclusions and
Recommendations

pg. 65
SUMMARY OF FINDINGS
Financial ratios quantify many aspects of a business and are an integral part of financial
statement analysis. Financial ratios are categorized according to the financial aspect of the
business which the ratio measures. Liquidity ratios measure the availability of cash to pay debt.
Activity ratios measure how quickly a firm converts non- cash assets to cash assets. Debt ratio
measures the firms ability to repay long term debt. Profitability ratios measure the firms use
of its assets and control of its expenses to generate an acceptable rate of return. Market ratios
measure investor response to owning a firms stock and also the cost of issuing stock. Financial
ratios allow for comparisons between companies between industries between different time
periods for one firm between a single firm and its industry average. Ratios generally hold no
meaning unless they are benchmarked against something else, like past performance or another
firm. Thus the ratios of firms in different industries, which face different risks, capital
requirements, and competition, are usually hard to compare.

pg. 66
FINDINGS

Earnings per share gives a view of the comparative earnings or earnings power of a
firm. EPS calculated for a number of years indicates whether or not earnings power of
the firm has increased. The earning power of the firm has increased over the years.

Net profit ratio indicates the efficiency of the management in manufacturing, selling,
administrative and other activities of the firm. The firms net profit has increased over
the years showing that profitability also has increased.

The gross profit ratio reflects the efficiency with which a firm Produces its products.
It indicates that a company is a good financial health. As seen from the above table the
gross profit ratio has increased over the years.

Cash profit ratio measures the relationship between cash generated from operations
and the net sales. The cash profit ratio has increased over the years. The cash profit ratio
of the firm has increased over the years indicating lower rate of depreciation.

Higher the value of Debtors turnover ratio the more efficient is the management of
debtors/sales or more liquid are the debtors. Here the Debtors turnover ratio has
decreased from the year 2013 to 2015.The debtor turnover ratio is decreasing, this
means that your average collections are taking longer. The reverse is true if you
turnover in days is decreasing; this means that your average collection period is
decreasing also.

A decreasing inventory indicates that the company is not converting its inventory into
cash as quickly as before. When this occurs, the company ends up having increased
storage, insurance and maintenance costs. When a companys stock turnover ratio is
decreasing, it means that it is holding its inventory longer than previously measured
time periods. The measure of how long a company holds its inventory before selling it
is referred to as the stock turnover ratio.

pg. 67
 Current Ratio of Nalco for the last three years i.e. from 2013 to 2015, it appears that
the current ratio has increased from 2.18:1 to 3.92:1.According to thumb rule the ideal
current ratio is 2:1. With comparison to this NALCOs last 3yrs Current Ratio signifies
firm have current assets which are averagely 2.79 times the current liabilities. This
signifies the healthy conditions of the Firm.

The liquid ratio of the firm has increased as compared to 2013 and 2014 showing that
the companys liquidity position of the firm is very good.

pg. 68
RECOMMENEDATIONS, SUGGESTIONS & CONCLUSION

Financial ratios quantify many aspects of a business and are an integral part of financial
statement analysis. Financial ratios are categorized according to the financial aspect of the
business which the ratio measures. Liquidity ratio measure the availability of cash to pay debt.
Debt ratios measure the firms ability to repay long- term debt. Market ratios measure investor
response to owning a firms stock and the cost of issuing stock.
Profitability ratios measure the firms use of its assets and control of its expenses to generate
an acceptable rate of return.

Earnings per share = Net profit (after tax) Preference Dividend/ Number of
equity shares. Earnings per share gives a view of the comparative earnings or earnings
power of a firm. EPS calculated for a number of years indicates whether or not earnings
power of the firm has increased. The earning power of the firm has increased over the
years.

Net Profit ratio = Net Profit/ Net Sales*100

Net Profit ratio indicates the efficiency of the management in manufacturing, selling,
administrative and other activities of the firm.
Higher the ratio the better is the profitability. The Firms net profit ratio has increased over the
years showing that profitability also has increased.

The Gross Profit ratio reflects the efficiency with which a firm produces its product. It
indicates that a company is a good financial health. A high gross profit margin is one
of the best indicators that a company is in good financial health. It is the ratio of gross
profit in a given period to revenue, and it is used as a measure of profitability. A high
gross profit margin indicates your company is efficient in the manufacturing and
distribution processes.

pg. 69
 Cash profit ratio measures the relationship between cash generated from operation and
net sales. The cash profit ratio has increased over the year indicating lower rate of
depreciation.

Debtor turnover ratio is decreasing, this means that your average collections are taking
longer. The reverse is true if you turnover in days is decreasing; this means that your
average collection period is decreasing also.

STOCK TURNOVER RATIO= COST OF GOODS SOLD/ AVERAGE STOCK

Inventory turnover is a measure of how quickly a company can convert its inventory
into cash and profits. Low inventory turnover ratio is a signal of inefficiency, since
inventory usually has a rate of return of zero. It also implies either poor sales or excess
inventory. A low turnover rate can indicate poor liquidity, possible overstocking, and
obsolescence, but it may also reflect a planned inventory build-up in the case of material
shortages or in anticipation of rapidly rising prices.

Current Ratio = Current Assets / Current Liabilities

A relatively high current ratio is an indication that the firm is liquid and has the ability to pay
its current obligations in time as and when they become due. The increase in current ratio
represents increase in liquidity position of the firm.

Liquid ratio measures the liquidity of the firm. An ideal quick ratio of 1:1 is considered
satisfactory. As seen from above table the liquid ratio of the firm has crossed up the
satisfactory ratio. The liquid ratio of the firm has increased the companys liquidity
position of the firm is very good.

pg. 70
RECOMMENDATIONS AND SUGGESTIONS

The financial analysis done on National Aluminum Company Limited showed that the
firm is doing well due to expansion.

The firm deals with aluminum whose price fluctuates according to LME. Necessary
precautions should be taken to handle this situation.

Customers satisfaction is the key to success of every business enterprise. Delivery

schedules should be on time and every step must be taken into account to see that the
customers are satisfied with the service provided.

pg. 71
 CONCLUSION
The financial statement Analysis plays a vital role in helping the financial manager and top
management of company to plan and control their financial structural operations. An efficient
analysis would therefore highlight the pitfalls in management in terms of financial matters such
as income, expenditure, export and domestic sales ,profitability, fund availability, liquidity etc.
This gives an idea about controllable and uncontrollable variables. These can be re-examined
and integrated to evolve idea, which can give efficient financial decision. A sound financial
decision gives the way for higher profitability and performance. It is nothing but a fine-tuning
of control system in financial structure. The suggestions should be emphasize the control
system that should be adopted by NALCO. This may prove to be corrective measures for
improving the financial structure of NALCO. But the fact remains that the suggestions, which
will be accepted an d fully implemented in NALCO, will only be decided by relevant financial
system that followed by Nalco and its adaptability in the aluminum complex of NALCO.

I would like to conclude that NALCO has travelled long distance in pursuit of excellence in all
the areas of its performance, for which it has become a world-class company.

pg. 72
 APPENDICES
&
ANNEXURE

pg. 73
FUND FLOW ANALYSIS & CASH FLOW ANALYSIS

It shows the sources and uses if funds of a company. This helps to analyze changes in Working
Capital components between two dates, which helps to accomplish the goals of the organization
effectively and efficiently.

Increase in Working Capital - Application of Funds

Decrease in Working Capital - Source of Funds

CASH FLOW ANALYSIS

Opening Balance + Receipts Payments = Closing Cash Balance

Increase in Current Asset reduces cash from operations
Decrease in Current Asset increases cash from operations
Increase in Current Liabilities increases cash from operations
Decrease in Current Liabilities decreases cash from operations

The Cash flow statement of NALCO for the last three years from 2012-13 to 2014-15 has been
prepared to find out the net effect of changes in the cash balance. Changes in the net cash flows
(inflows and outflows) from different activities like operating, investing and financing with the
operating cash balance. The Cash Flow Statement shows:

The cause of changes in the companys Working Capital or Cash Flow position.
The liquidity position of the firm.
How much the firms Working Capital needs were met by the funds generated from
current operations.
Estimation of Working Capital requirement for long period.
In this study only cash flow statement is projected for analysis as extracted Plants
report. This forms a part of the Companys Cash Flow.

pg. 74
Cash flow statement
PARTICULARS Year ended march 31st 2015 Year ended march 31st 2014 Year ended march 31st 2013
A. Cash flow from operating activity
Net profit 2113.42 917.81 905.04
Adjustment for :
Depreciation 413.66 524.73 505.43
Interest &financing charges & dividend 7.45
Provision net 61.01 32.34 24.99
Stores & spares written off 13.17 19.45 13.85
Dividend income -119.39 -122.48 -73.1
Intrest income -477.2 -368.88 -395.03
Loss/(profit)on sales of assets -0.24 0.06 0.17
-108.99 85.22 83.76
Operating profit before working capital changes 2004.43 1003.03 988.8
Adjustment for :
Inventories -1.26 191.3 -205.25
Trade & other receivables 199.33 -122.37 -120.66
Trade payables -1190.54 268.97 213.68
-992.47 337.9 -112
Cash generated from operations 1011.96 1340.93 876.57
Direct taxes paid -491.49 -359.59 -435.11

Net cash from operating activities 520.47 981.34 441.46

B. Cash Flow from Investing Activities:

Purchase of Fixed Assets -303.14 -618.68 -648.93
(purchase)/sale of invetment 294 245.02 -735.8
Dividend income from mutual funds 119.39 122.48 73.1
intrest income from deposits,loan and advances 455.47 329.23 434.71
Net cash used in investing activities 565.67 78.05 -876.92
C. Cash Flow from Financing Activities:
intrest financing charges -7.45
Dividends including dividend tax paid -506.5 -515.48 -221.06
Net cash used in financing activities -506.5 -515.48 -228.51
D. Net changes in cash & cash equivalents (A+B+C) 579.69 543.91 -663.97
E.Cash & cash equivilant-opening balance 4048.29 3504.38 4168.35
F.Cash & cash equivalents-closing balance(D+E) 4627.98 4048.29 3504.38

NOTE:

*Figures in brackets are cash out flow/income, as the case may be.

pg. 75
MANUFACTURING, TRADING & PROFIT N LOSS ACCOUNT FOR
THE YEAR ENDED 31ST MARCH 2015

PARTICULARS FIGURES FOR THE 2015

Revenue from operations 7382.81
Other income 672.64
Total revenue 8055.45
Expenses:
cost of material consumed 1031.59
Power and Fuel 1802.24
Changes in inventories of finished goods
Intermediaries and W I P 2.9
Employee benefits expenses 1377.91
Finance costs
Depreciation and amortization expenses 413.66
other expenses 1462.15
Total expenses 6090.45
Profit before exceptional items and tax 1965
Exceptional items -148.42
profit before tax 2113.42
Tax expenses:
(1)Current tax 520.63
(2)Deferred tax 249.68
(3)Earlier years 21.26
profit/(loss) for the period 1321.85
Earning per share
(a)profit after tax 1321.85
(b)Average number of equity shares(face value 5/- each) 2,57,72,38,512
Earning per share-Basic(a/b) 5.13
Earning per share-Diluted(a/b) 5.13

pg. 76
 Balance Sheet As at March 31, 2015

Particulars Figures as at the 2015

EQUITY AND LIABILITIES
Shareholders funds
Share capital 1288.62
Reserves and surplus 11508.68
Non-current liabilities
Deferred tax liabilities (Net) 1105.27
Other Long term liabilities 65.3
Long-term provisions 242.76
Current liabilities
Trade payables 455.46
Other current liabilities 1325.37
Short-term provisions 186.21
Total 16,177.67
ASSETS
Non-current assets
Fixed assets
Tangible assets 6509.21
Intangible assets 136.21
Capital work-in-progress 549.73
Non-current investments 1.04
Long-term loans and advances 1221.85
Other non-current assets 47.45
Current assets
Current investments 950
Inventories 1165.56
Trade receivables 120.82
Cash and Bank Balances 4627.98
Short-term loans and advances 607.54
Other current assets 240.28
Total 16,177.67

pg. 77
MANUFACTURING, TRADING & PROFIT N LOSS ACCOUNT FOR
THE YEAR ENDED 31ST MARCH 2014
PARTICULARS FIGURES FOR THE 2014
Revenue from operations 6780.85
Other income 557.71
Total revenue 7338.56
Expenses:
cost of material consumed 1063.16
Power and Fuel 2017.67
Changes in inventories of finished goods
Intermediaries and W I P 58.55
Employee benefits expenses 1245.33
Finance costs
Depreciation and amortization expenses 524.73
other expenses 1461.94
Total expenses 6371.38
Profit before exceptional items and tax 967.18
Exceptional items 49.37
profit before tax 917.81
Tax expenses:
(1)Current tax 264.65
(2)Deferred tax 7.15
(3)Earlier years 3.66
profit/(loss) for the period 642.35
Earning per share
(a)profit after tax 642.35
(b)Average number of equity shares(face value 5/- each) 2,57,72,38,512
Earning per share-Basic(a/b) 2.49
Earning per share-Diluted(a/b) 2.49

pg. 78
 Balance Sheet As at March 31, 2014

Particulars Figures as at the 2014

EQUITY AND LIABILITIES
Shareholders funds
Share capital 1288.62
Reserves and surplus 10833.38
Non-current liabilities
Deferred tax liabilities (Net) 910.13
Other Long term liabilities 54.96
Long-term provisions 218.22
Current liabilities
Trade payables 531.12
Other current liabilities 2564.38
Short-term provisions 147.25
Total 16,548.51
ASSETS
Non-current assets
Fixed assets
Tangible assets 6688.8
Intangible assets 103.14
Capital work-in-progress 768.74
Non-current investments 1.04
Long-term loans and advances 1517.27
Other non-current assets 43.32
Current assets
Current investments 1244
Inventories 1173.66
Trade receivables 243.57
Cash and Bank Balances 4048.29
Short-term loans and advances 481.38
Other current assets 235.3
Total 16,548.51

pg. 79
MANUFACTURING, TRADING & PROFIT N LOSS ACCOUNT FOR
THE YEAR ENDED 31ST MARCH 2013
PARTICULARS FIGURES FOR THE 2013
Revenue from operations 6916.48
Other income 511.05
Total revenue 7427.53
Expenses:
cost of material consumed 1167.83
Power and Fuel 2432.27
Changes in inventories of finished goods
Intermediaries and W I P -64.25
Employee benefits expenses 1153.93
Finance costs 7.45
Depreciation and amortization expenses 505.43
other expenses 1319.83
Total expenses 6522.49
Profit before exceptional items and tax 905.04
Exceptional items
profit before tax 905.04
Tax expenses:
(1)Current tax 263.3
(2)Deferred tax 54.02
(3)Earlier years -5.11
profit/(loss) for the period 592.83
Earning per share
(a)profit after tax 592.83
(b)Average number of equity shares(face value 5/- each) 2,57,72,38,512
Earning per share-Basic(a/b) 2.3
Earning per share-Diluted(a/b) 2.3

pg. 80
Balance Sheet As at March 31, 2013
Particulars Figures as at the 2013
EQUITY AND LIABILITIES
Shareholders funds
Share capital 1288.62
Reserves and surplus 10,643.83
Non-current liabilities
Deferred tax liabilities (Net) 903.13
Other Long term liabilities 70.82
Long-term provisions 208.62
Current liabilities
Trade payables 509.17
Other current liabilities 2545.75
Short-term provisions 162.67
Total 16,332.61
ASSETS
Non-current assets
Fixed assets
Tangible assets 6523.8
Intangible assets 105.09
Capital work-in-progress 1001.92
Non-current investments 161.04
Long-term loans and advances 1474.04
Other non-current assets 36.39
Current assets
Current investments 1329.02
Inventories 1380.64
Trade receivables 148.65
Cash and Bank Balances 3504.38
Short-term loans and advances 473.76
Other current assets 193.78
Total 16,332.61

pg. 81
 BIBLIOGRAPHY

The Success which I have been used for the completion of this project on RATIO
ANALYSIS

BOOKS

1. Management Accounting - By Shashi K Gupta & R K Sharma

2. Cost & Financial Analysis - by Neethi Gupta

3. Fundamentals of Accounting by Appanaiah Reddy

4. 34 Annual Reports of NALCO.

WEBSITES

1. WWW. NALCO INDIA.COM

2. WWW. GOOGLE.COM

pg. 82