Company Profile:

Hindalco-
Metals flagship company of the Aditya Birla Group.
World's largest aluminium rolling company and one of the biggest
producers of primary aluminium in Asia.
Established in 1958, Hindalco commissioned its aluminium facility at
Renukoot in Eastern U.P. in 1962.
The acquisition of Novelis Inc. in 2007 positioned it among the top five
aluminium majors worldwide and the largest vertically integrated
aluminium company in India.

Group Companies:
-Novelis Inc
-Aditya Birla Minerals Ltd
-Hindalco-Almex Aerospace Ltd.

Product range of the company includes:

Alumina chemicals.
Aluminas and hydrates
Minerals.
Primary aluminium
Ingots.
Wire rods
Billets.
Aluminium extrusions. Aluminium rolled products. Aluminium foil
& packaging. Aluminium alloy wheels.
Copper cathodes
Continuous cast copper rods.

Other:-
Sulphuric acid.
Phosphoric acid.
Phospho gypsum.
Copper slag.


Management Information:

Kumar Birla Non-Executive Chairman of the Board
Praveen Maheshwari Chief Financial Officer
Bharat Jha Senior President - Corporate Projects & Procurement
Anil Malik Compliance Officer, Company Secretary
Debnarayan Bhattacharya Managing Director, Executive Director
Vineet Kaul Chief People Officer
Satish pai CEO of Hindalcos Aluminium Business
Registered Office: Mumbai

Major Plants:
1. Renukoot,UP
2. Renusagar, Sonbhadra,UP
3. Khanvel,Silvassa (Dadra & Nagar Haweli)
4. Bharuch, Gujarat
5. Belurmath, Howrah
6. Alupuram, Ernakulum, Kerela
7. Sambalpur,Orissa
8. Sarguja,Chattisgarh

Novelis with presence in four continents and being world leader in
aluminium rolling and recycling business was stategic acquisition for Aditya
Birla group
Due to bad management decision it suffered huge losses in 2006 and its
debt-equity ratio stood at 7.23:1
Aditya Birla Group acquired Novelis for $3.6 b
The acquisition propelled Aditya Birla Group in fortune 500 group
After merger Hindalco emerged as biggest rolled aluminium products maker
and fifth largest integrated aluminium manufacturer in the world


















Major Promoters of Hindalco:
No. Name of the Shareholder
Total Shares held
Number

As a % of

grand total

1 Igh Holdings Private Limited 228,963,487 11.96
2

Turquoise Investment And Finance

Pvt Limited
99,012,468 5.17
3 Trapti Trading & Investments Pvt Ltd 93,063,124 4.86
4 Grasim Industries Ltd 54,542,475 2.85
5 Aditya Birla Nuvo Limited 33,506,337 1.75
6 Pilani Investment & Ind. Corp. Ltd. 29,185,398 1.52
7 Umang Commercial Company Ltd 26,442,761 1.38
8
Birla Institute Of Technology And

Science
21,583,090 1.13
Highlights of the Notes to Financial Statements:
In case of foreign subsidiaries, being non-integral foreign operations,
revenue items are translated at the average rates prevailing during the
period. Assets, liabilities and equity are translated at the closing rate. Any
exchange difference arising on translation is recognized in the Foreign
Currency Translation Reserve.
Fixed Assets:
(a) Tangible Assets are stated at cost less accumulated depreciation and
impairment loss, if any. Cost comprises of purchase price and any directly
attributable cost of bringing the assets to its working condition for its
intended use.
(b) Intangible Assets are stated at cost less accumulated amortization and
impairment loss, if any. Cost includes any directly attributable expenditure
on making the asset ready for its intended use.
(c) Machinery spares which can be used only in connection with an item of
Tangible Asset and whose use is not of regular nature are written off over
the estimated useful life of the relevant asset.
(d) Certain directly attributable pre-operative expenses during construction
period are included under Capital Work in Progress. These expenses are
allocated to the cost of Fixed Assets when the same are ready for intended
use.

Highlights Continued.

Depreciation and Amortization:
(a) Depreciation on Tangible Fixed Assets are provided using
straight line method based on estimated useful life or on
the basis of depreciation rates prescribed under respective
local laws.
(b) Mining Rights and leasehold land are amortized over the
period of lease on straight line basis.
(c) Intangible assets are amortized over their estimated
useful lives on straight line basis.
(d) Depreciation on assets acquired under finance lease is
spread over the lease term.
Directors Message:
Mahan Coal: The Group of Ministers constituted by the Government of
India to consider environmental and developmental issues related to
coal mining etc, has recommended the granting of forest clearance by
the Ministry of Environment & Forest [MoEF] for the Mahan Coal
block on certain conditions. In this regard, further communication
from MoEF is awaited.
Expansion plans in Brazil and Asia to be completed by 2014.
Environment Protection and Pollution Control
Company is committed to sustainable development. Company is
a signatory to the Global Compact and subscribes to the
principle of triple-bottom line accountability.
A separate chapter in this report deals at length with Company''s
initiatives and commitment to environment conservation.
Recent news about Hindalco:
Hindalco manages to refinance Rs 4,700 crore from
SBI and Axis Bank for its Utkal alumina project.

FINANCIAL REPORT
ANALYSIS
Investment
Valuation
Ratio
March 2013 March 2012 Change Definition Implications

Face Value

1

1
The nominal
value or dollar
value of a
security stated by
the issuer. For
stocks, it is the
original cost of
the stock shown
on the certificate

Dividend per
share

140

155

-15
Dividend per
share (DPS) is
the total
dividends paid
out over an entire
year (including
interim
dividends but
not including
special
dividends)
divided by the
number of
outstanding
ordinary shares
issued.



















Return on
Investment
Ratio
March 2013 March 2012 Change Definition Implication
Return on
net worth

0.0483

0.0672
The ratio
measures the net
profit earned on
equity
shareholders
funds. It is the
measure of
overall
profitability of a
company

Earnings per
share

8.88

11.69
The ratio
measures the
overall
profitability in
terms of per
equity share of
capital
contributed.This
is the most
widely used ratio
across industries
Solvency
Ratios
March 2013 March 2012 Change Definition Implication
Debt to
Equity Ratio

0.619

0.338

The ratio
measures the
proportion of
debt and capital
both equity and
preference in the
capital structure
of a company. It
helps in knowing
whether a
company is
relying more on
debt or capital
for financing its
assets
Interest
Coverage
Ratio
7.26 12.67
The ratio
measures the
ability of a
company to
service the
interest
obligations out
of its cash
profits. Higher
the ratio, greater
is the ability
Liquidity
Ratio
March 2013 March
2012
Change Definition Implicatio
n
Current Ratio 2.396747 1.668245
The ratio measures the
ability of a company to
discharge its day to day
obligations. A company
should possess adequate
level of current assets
over current liabilities to
be able to do so. A current
ratio of more than 1
indicates that value of
short-term assets is more
than short-term
liabilities. A current ratio
of less than 1 indicates
poor liquidity
Inventory
Holding
Period

162.84

160.19
The ratio measures the
average period for which
cash is blocked in
inventory. In other words
the ratio explains how fast
the company is able to
convert its inventory into
cash.

Liquidity
Ratio

March 2013 March 2012 Change Definition Implication
Quick Ratio

.617737

.53015

The ratio measures as
to how fast the
company is able to
meet its current
obligations as and
when they fall due.
This is also known as
acid-test ratio.
Inventory and
working capital limits
are taken out of
current assets and
current liabilities
respectively. A quick
ratio of 1: 1 is
indicates highly
solvent position

Turnover
Ratios
March 2013 March 2012 Change(%) Definition Implication
Debtors
Turnover
Ratio

21.22

19.58

0.083
It represents the
number of times
average dues
from customers
are realised.
Higher the ratio,
the better is the
position.

Overall
Efficiency
Ratio
0.46 0.58 (0.206)
It shows how
effectively the
capital employed
has helped in
revenue
generation.
Higher the ratio
greater is the
efficiency
Inventory
Turnover
Ratio

2.24

2.28

(0.01754)
The ratio
measures the
amount of
capital tied up in
raw material,
W.I.P. and
finished goods

Profitability
Ratio
March 2013 March 2012 Change Definition Implication
Gross profit
margin

0.361

0.351
This reflects the
efficiency with
which
management
produces each
unit of output. It
also indicates the
spread between
the cost of goods
sold and the
sales revenue

Operating
Profit

.975

.931

This ratio
indicates
profitability from
operating
activities. A
higher margin
implies better
sales realisation
and effective cost
control.

Profitability
Ratio

March 2013

March 2012

Change Definition Implication
Net Profit
Margin

.065

.084

The ratio is the
overall measure of
the firms ability to
earn profit per
rupee of sales. It
also establishes
relationship
between
manufacturing,
administering and
selling the
products.

Individual
cost expenses
to sale ratio

0.657

0.670

These ratios
measure the
proportion of
individual items of
cost and expense in
relation to sales.
They also assist the
analyst in cost
minimisation and
cost reduction.

Profitability
Ratio
March 2013 March 2012 Change Definition Implicatio
n
Effective Tax
Rate

18.636

20.558
The ratio measures
the actual effective
rate at which a
company pays
income tax as
against the
statutory rate
DUPONT
Analysis

4.72

6.68

RONW is a
function of Net
Profit Margin and
Net worth
Turnover. DU
PONT analysis
seeks to measure
and establish this
relationship
between the two
determinants.
Through these
ratios a firm can
devise suitable
remedies to
overcome the weak
area of overall
performance.


COMPARISION WITH A
COMPETITOR


RATIO

HINDALCO

VEDANTA

Current Ratio

2.069

1.28


Debt to equity ratio

0.61

0.99

Earnings per share

8.88

51.3

Quick ratio

0.617

0.127

RATIO

HINDALCO

VEDANTA

Operating Profit Margin

.975

.1177

Net profit margin

.0652

.1111

Effective tax rate

18.63

23.50

Dupont Analysis

4.72

28.90