HINDALOC financial positon during last 5 year

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Study of HINDALOC financial position during 5 year

Transcript of HINDALOC financial positon during last 5 year

ARUN GULERIA MBA LOVELY INTERNATIONAL UNIVERSITY arun_guleria@in.com

TERM PAPER OF ACCONTING FOR MANAGER On Analyses of Financial Statement

OF

HINDALCO Ltd.SUBMITTED TO:Mr.

VIKAS NAIB

SUBMITTED BY :(Senior Prof.) ARUN KUMAR GULERIA Section R337 Roll No. B36 Program code 194 Reg. No. 10807166

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ARUN GULERIA MBA LOVELY INTERNATIONAL UNIVERSITY arun_guleria@in.com

LOVELY PROFESSIONAL UNIVERSITY LOVELY INSTITUTE OF MANAGEMENT (LIM)

ACKNOWLEDGEMENTI take this opportunity to offer my deep gratitude to all those who have extended their valued support and advice to complete this term paper. I cannot in full measure, reciprocate the kindness showed and contribution made by various persons in this endeavor.

I acknowledge my sincere thanks to Mr. Vikas Naib (Faculty Member) who stood by me as a pillar of strength throughout the course of work and under whose mature guidance the term paper arrives out successfully. I am grateful to his valuable suggestions.

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ARUN GULERIA MBA LOVELY INTERNATIONAL UNIVERSITY arun_guleria@in.com

INDEXS .No . 1. 2. 3. 4. 5. Particular PAGE NO. 2 3 5 6 6 8 9 10 12 15 15 16 20 24 26 27 30 31 32 34 36 37 37 39 40 40 41 REMAR KS Introduction. About the company. Profile of Company Area Profile Objective of study 1.1Profitability Position 1.2Assets Position 1.3 Liability Position

6. 7.

Methodology Of StudyData collection 1.1Balance Sheet 1.2Income Statement 1.3Director Report 1.4Auditor Report 1.5Corporate Governess 1.6Notes to Accounts Interpretation of Financial Tools Data Analysis 1. Profitability Ratio 1.1Gross Profit Ratio 1.2Net Profit Ratio 2. Assets Position 2.1Fixed Ratio 2.2Current Ratio 3. Liability Position 3.1Debt Equity Ratio 3.2Solvency Ratio1

8. 9.

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ARUN GULERIA MBA LOVELY INTERNATIONAL UNIVERSITY arun_guleria@in.com

INTRODUCTION of HINDALCOLargest vertically Integrated Aluminium Company in India Domestic market leader in Aluminium Among the low cost producers globally Sustainable strategic strengths Financial strength to take on emerging global opportunities Sustained delivery of superior shareholder value Fully integrated operations Company Certified under OHSAS 18001 Certification and A unique WCM model

VISION OF HINDALCO To be a premium Metals major, global in size and reach, with a passion for excellence. To relentlessly pursue the creation of superior shareholder value by exceeding customer expectations profitably, unleashing employee potential and being a responsible corporate citizen adhering to our values. To pursue the creation of value for our customers, share holders, employees and society at large. To actively contribute to the social and economic development of the communities in which we operate. In so doing build a better, sustainable way of life for the weaker sections of society and raise the countrys human development index. To strengthen our position as a premium aluminum company, sustaining domestic leadership and global competitiveness through innovation, quality and value added growth.

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ARUN GULERIA MBA LOVELY INTERNATIONAL UNIVERSITY arun_guleria@in.com

ABOUT HINDALCOHINDALCO Industries Ltd., one of the major producers of Primary Aluminium Metal and Semis in the country, is the biggest industrial enterprise of Uttar Pradesh. It is a public limited company in the private sector having about 39000 share holders. It is the largest integrated aluminium plant in India with all its production facilities viz. alumina, aluminium and fabrication located at Renukoot near Rihand Dam in Sonbhadra (U.P.). Hindalco Power Division is situated at Renusagar about 35 Kms. from Renukoot. In September 1959, an Industrial License was granted by the Government for setting up an integrated aluminium plant at Renukoot,

with an initial installed capacity of 20,000 M.T. The construction work was completed within 18 months, a record for a major job of this kind. The dream of the great visionary Syt. G.D. Birla to locate an aluminium plant near Rihand Power House came true. The Late Prime Minister Pt. Jawaharlal Nehru formally inaugurated the plant in January 1963. Going round the extensive works, Panditji saw his dream of aARUN GULERIA | arun_guleria@in.com

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ARUN GULERIA MBA LOVELY INTERNATIONAL UNIVERSITY arun_guleria@in.com

brighter future of India take shape before his eyes. From the modest beginning in 1962, Hindalco has now become an industrial giant with a capacity to produce 2, 42,000 tones of aluminium per annum. Renukoot, a fast growing and thriving industrial township, which is one humming with activities, and providing all the basics amenities of modern life to the inhabitants, was once a wild and desolate jungle infested by animals. From being one of the most backward areas of U.P. It has carved a place for itself on the industrial map of India and the world. Lying in the foothills of the Vindhya range, Renukoot is about 160 Kms. from Varanasi and 154 Kms. from Mirzapur. There is a direct train between Amritsar to Tatanagar and Ranchi via Renukoot. This part Renukoot is also connected with Calcutta by train, directly. Facing the giant man-made biggest artificial lake Govind Ballabh Pant Sagar, Renukoot is a picturesque township unscarred by the ravages of industrialization.

EXPANSION AND MODERNISATIONHindalco is India's largest Aluminium producer with a Primary Aluminium Smelting capacity of 242,000 MTPA. The company's integrated operations include Power Generation Capacity of 612 M.W and 450,000 MTPA Alumina Refinery. Hindalco's semi fabrication facilities comprise of Rolled products 80,000 MTPA, Redraw Rods 40,000 MTPA and Extrusions 13,700 MTPA. The company has opted for induction of the most modern technology and has undertaken comprehensive modernization over the past years. It includes commissioning of two Gas Suspension Claciners, three high efficiency PF/Fluidised Bed Boilers with co-generation facility and Micro Processors based Pot Control System. The Rodding Room facilities have also been modernised. In the semi-fabrication, a state-of-the-art Vertical Billet Casting and Slab Casting facility have been installed. A new Rolling Mill has been commissioned and the existing Mills have undergone a comprehensive modernisation. Hindalco has also installed a Roll Former, a Cut to Length Line, a Rewind Line and Tension Leveler in Rolling Mills Hindalco's products are well accepted in the domestic as well as international markets. The company's metal is accepted for delivery under the High Grade Primary Aluminium Contract on the London Metal Exchange. The Company's export efforts have led to recognition as a 'Star Trading House'. Hindalco is an ISO 9002 Company and has also received ISO 14001 Certification for its entire operations including Power Plant and Mines. As a part of its diversification programmers, a 5,000 MTPA Aluminium Foil Plant and an Aluminium Alloy Wheel Plant of 300,000 w.p.a. capacity has been set up at Silvassa.

BROWNFIELD EXPANSIONTo further augment its presence in the aluminum sector, Hindalco has initiated work on a brown field expansion at Renukoot. The expansion will increase Smelting capacity by 100,000 MTPA to 342,000 MTPA. Aluminium refining capacity will be raised by 210,000 MTPA to 660,000 MTPA. Power Generation capacity will augment by 150 MW to 769 MW.

ACQUISITION OF INDALHindalco has also acquired aluminium major - INDAL. Hindalco's holding in INDAL now stands at 74.62%. India strength in Aluminium and downstream aluminium products admirably dovetails Hindalco's unmatched presence in metal and collectively commands the highest meal capacity in the entire South East region.

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ARUN GULERIA MBA LOVELY INTERNATIONAL UNIVERSITY arun_guleria@in.com

MISCELLANEOUS INFORMATIONIn 1962 when production started, the Company had on its roll about 900 staff and workmen and the present strength of Renukoot and there are Zonal Sales Offices at Bangalore, Mumbai, Delhi, and Calcutta. The Company is managed by a Board of Directors and other senior executives. Employees is about 14000. The Principal Office and Works is located at

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PROFILE OF COMPANY PRODUCT STABILITY: Hindalco Industries Limited is one of the countys largestaluminum and copper producers. Being a part of the Aditya Birla Group, this company has made its mark in the world. It has been positioned as the sixth largest aluminum producer in Asia and the eleventh largest in the world, based on volumes of calendar year 2007. On May 15, 2007, Hindalco acquired Novelis Inc, which is the worlds largest aluminum rolled products producer. With this acquisition, Hindalco has achieved economies of scale, an increased global reach and also gotten access to advanced technology. The company also owns and operates one of the largest single location copper smelters in the world at Dahej. They receive a portion of their copper from Australia where they own mines and also purchase copper concentrate at the London Metal Exchange (LME). In 2007, Hindalco was also among the top 10 copper producers in the world by capacity. While Hindalco itself has a very good stand and has proven its stability, post Novelis acquisition, the companys share price has seen some fluctuations. However, if one is to look at the basics of Novelis, the value addition this purchase has given the company should hold them in good stead. Novelis is the largest aluminum product producer in the Europe, South America and Asia and are also the wo