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Company Information

Home » Market » Company Information

Hindalco Industries Ltd.

Oct 29, 01:30
166.95 -3.50 ( -2.05 %)
 
VOLUME : 277004
Prev. Close 170.45
Open Price 169.20
TODAY'S LOW / HIGH
166.70
 
 
 
170.45
Bid PRICE (QTY.) 166.70 (770)
Offer PRICE (Qty.) 166.85 (10)
52 WK LOW / HIGH
85.05
 
 
 
221.20
Oct 29, 01:24
167.10 -3.35 ( -1.97 %)
 
VOLUME : 7420327
Prev. Close 170.45
Open Price 168.50
TODAY'S LOW / HIGH
166.65
 
 
 
170.50
Bid PRICE (QTY.) 167.10 (1081)
Offer PRICE (Qty.) 167.15 (641)
52 WK LOW / HIGH
84.90
 
 
 
221.20
Company Information Menu

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Market Cap. ( ₹ ) 37538.65 Cr. P/BV 0.64 Book Value ( ₹ ) 259.59
52 Week High/Low ( ₹ ) 221/85 FV/ML 1/1 P/E(X) 9.97
Bookclosure 10/09/2020 TTM EPS ( ₹ ) 8.88 Div Yield (%) 0.60
NOTES TO ACCOUNTS
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2019-03 

NOTES FORMING PART OF THE STANDALONE FINANCIAL STATEMENTS

(A) The Asset and Liability position of various outstanding derivative financial instruments is given below:

Rs in Crore

Nature of Risk being Hedged

As at 31.03.2019

As at 31.03.2018

Liability

Asset

Net Fair Value

Liability

Asset

Net Fair Value

Current Cash flow hedges

Commodity contracts

Price Risk Component

(4.67)

439.95

435.28

(317.55)

64.86

(252.69)

Foreign currency contracts

Exchange rate movement risk

(410.52)

340.71

(69.81)

(192.79)

812.31

619.52

Fair Value Hedge

Embedded Derivatives*

Risk of change in Fair Value of unpriced inventory

(248.60)

6.11

(242.49)

(4.64)

154.52

149.88

Non-designated hedges

Commodity contracts

(54.91)

40.30

(14.61)

(110.12)

3.09

(107.03)

Foreign currency contracts

(4.13)

0.69

(3.44)

(0.42)

5.09

4.67

Total

(722.83)

827.76

104.93

(625.52)

1,039.87

414.35

Non - current Cash flow hedges

Commodity contracts

Price Risk Component

-

30.23

30.23

(32.62)

65.06

32.44

Foreign currency contracts

Exchange rate movement risk

(62.60)

65.76

3.16

(32.76)

42.31

9.55

Non-designated hedges

Commodity contracts

-

-

-

-

-

-

Foreign currency contracts

(0.44)

-

(0.44)

-

0.04

0.04

Total

(63.04)

95.99

32.95

(65.38)

107.41

42.03

Grand Total

(785.87)

923.75

137.88

(690.90)

1,147.28

456.38

* Fair Value of ? (242.49) Crore (31/03/2018 Rs 149.88 Crore) is classified as part of Trade Payables.

The maturity profile for Commodity and Forex Exchange Forwards and Swaps ranges from April 2019 to March 2021. Hedge Ratio of 1:1 is used by the Company.

Derivative assets are part of other financial assets included in note 9A & 9B. Derivative liabilities are part of other financial liabilities included in note 20A & 20B.

(B) Outstanding position and fair value of various foreign exchange derivative financial instruments:

in Crore

As at 31.03.2019

As at 31.03.2018

Currency Pair

Average exchange rate

Notional Fair Value Value Gain/ (Loss) (in Million) (Rs Crore)

Average exchange rate

Notional Fair Value Value Gain/ (Loss) (in Million) (Rs Crore)

Foreign currency forwards Cash flow hedges

Sell

USD INR

74.18

656.78

88.49

71.30

866.07

360.00

Buy

USD INR

71.65

124.57

(24.36)

-

-

-

Buy

EUR INR

82.72

9.75

(1.15)

-

-

-

Total

62.98

360.00

Non-Designated

Buy

AUD INR

-

-

-

50.40

0.03

-

Buy

EUR INR

84.86

6.13

(1.45)

80.06

10.63

1.48

Buy

GBP INR

95.49

0.01

(0.02)

90.00

0.11

0.05

Buy

USD INR

69.25

30.62

1.07

65.43

122.80

0.86

Sell

USD INR

69.92

129.65

(3.48)

65.98

120.11

2.32

Total

(3.88)

4.71

Foreign currency swaps

Cash flow hedges

Sell

USD INR

63.69

588.81

(129.63)

63.96

938.04

269.07

Total

(129.63)

269.07

(C) Outstanding position and fair value of various foreign exchange non-derivative financial instruments used as hedging instruments:

Rs in Crore

As at 31.03.2019

As at 31.03.2018

Currency Pair

Average exchange rate

Notional Value (in Million)

Fair Value Gain/ (Loss) (Rs Crore)

Average exchange rate

Notional Value (in Million)

Fair Value Gain/ (Loss) (Rs Crore)

Foreign currency monetary items Cash flow hedges

Debt

USD_INR

71.87

433.83

113.99

64.52

468.77

(30.86)

Liability for Copper Concentrate

USD_INR

69.91

350.17

24.58

64.75

413.08

(14.49)

Total

138.57

(45.35)

(D) Outstanding position and fair value of various commodity derivative financial instruments

(i) Outstanding position and fair value of various commodity derivative financial instruments as at 31st March, 2019:

Rs in Crore

Currency

Average Price/ Unit

Quantity

Unit

Notional value (in millions)

Fair Value Gain/(Loss) (Rs Crore)

Commodity Futures/Forwards/Swaps Cash Flow Hedge

Aluminium

Sell USD

2,224.09

208,600

MT

463.95

382.92

Copper

Sell USD

6,493.34

800

MT

5.19

0.03

Gold

Sell INR

3,279,046

6,843

KGS

22,438.51

65.64

Silver

Sell USD

16.06

1,513,065

TOZ

24.30

8.25

Furnace Oil

Buy USD

341.20

50,000

MT

17.06

12.46

Coal

Buy USD

81.00

90,000

MT

7.29

(3.79)

Total

465.51

Non Designated hedges

Aluminium

Buy USD

1,881.27

33,725

MT

63.45

4.42

Aluminium

Sell USD

1,987.75

33,725

MT

67.04

20.39

Copper

Buy USD

6,358.94

7,075

MT

44.99

6.33

Copper

Sell USD

6,510.95

12,625

MT

82.20

1.96

Gold

Buy INR

3,288,031

4,474

KGS

14,710.65

(51.23)

Silver

Buy USD

15.43

217,134

TOZ

3.35

(0.33)

Silver

Sell USD

15.55

69,015

TOZ

1.07

0.13

Furnace Oil

Buy USD

363.67

9,998

MT

3.64

3.66

Furnace Oil

Sell USD

417.39

9,998

MT

4.17

0.06

Total

(14.61)

Embedded derivatives Fair Value Hedge

Copper

Sell USD

6,105.30

121,896

MT

755.00

(245.71)

Gold

Sell USD

1,306.69

33,123

TOZ

43.28

2.32

Silver

Sell USD

15.56

351,099

TOZ

5.46

0.90

Total

(242.49)

Outstanding position and fair value of various commodity derivative financial instruments as at 31st March, 2018:

Rs in Crore

Currency

Average Price/ Unit

Quantity

Unit

Notional value in millions

Fair Value Gain/(Loss) Rs in Crore

Commodity Futures/Forwards/Swaps Cash Flow Hedge

Aluminium

Sell USD

1,966.54

524,000

MT

1,030.47

(212.36)

Copper

Sell USD

7,269.67

2,700

MT

19.63

8.86

Gold

Sell USD

1,303.21

126,148

TOZ

164.40

(24.07)

Silver

Sell USD

17.03

2,713,922

TOZ

46.21

7.32

Total

(220.25)

Non Designated hedges

Aluminium

Buy USD

2,074.44

60,550

MT

125.61

(32.81)

Aluminium

Sell USD

1,853.83

60,450

MT

112.06

(54.01)

Copper

Buy USD

6,776.31

22,150

MT

150.10

(12.37)

Copper

Sell USD

6,575.51

4,175

MT

27.45

(3.05)

Gold

Buy USD

1,328.29

101,194

TOZ

134.42

(1.84)

Gold

Sell USD

1,314.30

81,373

TOZ

106.95

(5.71)

Silver

Buy USD

16.40

553,630

TOZ

9.08

(0.14)

Silver

Sell USD

16.72

553,630

TOZ

9.25

1.25

Furnace Oil

Buy USD

277.33

3,000

MT

0.83

1.83

Furnace Oil

Sell USD

361.51

3,000

MT

1.08

(0.18)

Total

(107.03)

Embedded derivatives

Fair Value Hedge

Copper

Sell USD

6,916.84

110,063

MT

761.29

150.14

Gold

Sell USD

1,326.24

57,285

TOZ

75.97

(0.74)

Silver

Sell USD

16.56

466,348

TOZ

7.72

0.48

Total

149.88

(E) Details of amount held in OCI and the period during which these are going to be released and affecting Statement of Profit & Loss:

Rs in Crore

As at 31.0

3.2019

As at 31.03.2018

Cash Flow Hedges

Closing Value in Hedging Reserve

Release In less than 12 Months

After 12 Months

Closing Value in Hedging Reserve

Relea In less than 12 Months

After 12 Months

Gain/ (Loss)

Gain/ (Loss)

Gain/ (Loss)

Gain/ (Loss)

Gain/ (Loss)

Gain/ (Loss)

Commodity Forwards/Futures/Swaps

Aluminium

382.76

357.06

25.70

(210.83)

(270.25)

59.42

Copper

0.03

0.03

-

8.85

8.85

-

Gold

0.18

0.18

-

(23.88)

(23.88)

Silver

8.23

8.23

-

7.33

7.47

(0.14)

Furnace Oil

12.26

12.26

-

Coal

(3.78)

(3.78)

-

-

399.68

373.98

25.70

(218.53)

(277.81)

59.28

Rs in Crore

As at 31.03.2019

As at 31.03.2018

Cash Flow Hedges

Release

Release

Closing Value in Hedging Reserve

In less than 12 Months

After 12 Months

Closing Value in Hedging Reserve

In less than 12 Months

After 12 Months

Gain/ (Loss)

Gain/ (Loss)

Gain/ (Loss)

Gain/ (Loss)

Gain/ (Loss)

Gain/ (Loss)

Non-Derivative Financial Instruments

Debt

113.99

113.99

-

(30.86)

(30.86)

Liability for Copper Concentrate

19.54

19.54

(9.58)

(9.58)

-

Foreign currency Forwards

USD_INR

89.01

23.26

65.75

360.53

317.69

42.84

EUR_INR

(1.15)

(0.24)

(0.91)

-

Foreign currency Swaps

USD_INR

(317.46)

(252.44)

(65.02)

(103.94)

(23.59)

(80.35)

(96.07)

(95.89)

(0.18)

216.15

253.66

(37.51)

303.61

278.09

25.52

(2.38)

(24.15)

21.77

Deferred Tax on above

(106.09)

(97.18)

(8.91)

0.84

8.44

(7.60)

Total

197.52

180.91

16.61

(1.54)

(15.71)

14.17

Rs in Crore

As at 31.03.2019

As at 31.03.2018

Release

Release

Closing Value in Hedging Reserve

In less than 12 Months

After 12 Months

Closing Value in Hedging Reserve

In less than 12 Months

After 12 Months

Gain/(Loss)

Gain/ (Loss)

Gain/ (Loss)

Gain/ (Loss)

Gain/ (Loss)

Gain/ (Loss)

Cost of Hedging Reserve

Foreign currency Swaps

USD_INR

771.61

615.19

156.42

994.99

360.97

634.02

Deferred Tax on above

(269.63)

(214.97)

(54.66)

(347.68)

(126.14)

(221.54)

Total

501.98

400.22

101.76

647.31

234.83

412.48

(F) Gain/(loss) recognized in OCI and recycled:

i. Amount of gain/(loss) recognized in Hedging Reserve and recycled during the year 2018-19:

Rs in Crore

Recycled

Opening Balance

Amount recognised

Net Amount to P & L

Net Amount added to Non-Financial Assets

Total Amount recycled

Closing Balance before tax

Cash Flow Hedges

Commodity

(218.53)

781.13

161.71

1.21

162.92

399.68

Forex

216.15

(983.70)

(671.48)

-

(671.48)

(96.07)

Total

(2.38)

(202.57)

(509.77)

1.21

(508.56)

303.61

Deferred Tax on above

0.84

70.78

178.12

(0.41)

177.71

(106.09)

Rs in Crore

Recycled

Opening Balance

Amount recognised

Net Amount to P & L

Net Amount added to Non-Financial Assets

Total Amount recycled

Closing Balance before tax

Cost of Hedging Reserve

Commodity

-

(41.15)

(41.15)

-

(41.15)

-

Forex

994.99

200.42

423.80

423.80

771.61

Total

994.99

159.27

382.65

-

382.65

771.61

Deferred Tax on above

(347.68)

(55.67)

(133.72)

-

(133.72)

(269.63)

ii. Amount of gain/(loss) recognized in Hedging Reserve and recycled during the year 2017-18:

Rs in Crore

Recycled

Opening Balance

Amount recognised

Net Amount to P & L

Net Amount added to Non-Financial Assets

Total Amount recycled

Closing Balance before tax

Cash Flow Hedges

Commodity

(1,190.74)

(312.30)

(1,284.51)

(1,284.51)

(218.53)

Forex

722.95

294.34

801.14

-

801.14

216.15

Total

(467.79)

(17.96)

(483.37)

-

(483.37)

(2.38)

Deferred Tax on above

161.90

6.23

167.29

-

167.29

0.84

Rs in Crore

Recycled

Opening Balance

Amount recognised

Net Amount to P & L

Net Amount added to Non-Financial Assets

Total Amount recycled

Closing Balance before tax

Cost of Hedging

Forex

633.97

361.02

-

-

-

994.99

Deferred Tax on above

(219.40)

(128.28)

-

-

-

(347.68)

(G) Amount of gain/ (loss) recycled from Hedging Reserve and reference of the line item in Statement of Profit and Loss where those amounts are included:

Rs in Crore

Note No.

Note Description

Nature of Products

Year Ended 31.03.2019

Year Ended 31.03.2018

26

Revenue From Operations

Aluminium Products

231.85

(617.49)

26

Revenue From Operations

Copper and Copper Products

(399.56)

200.44

26

Revenue From Operations

Precious Metals

40.59

(66.32)

(127.12)

(483.37)

(H) The adjustment as part of the carrying value of inventories arising on account of fair value hedges is as follows:

Rs in Crore

Inventory Type

Year Ended 31.03.2019

Year Ended 31.03.2018

Copper

251.79

(148.61)

Gold

(2.41)

0.89

Silver

(0.92)

(0.49)

248.46

(148.21)

(I) The Company's hedging policy only allows for effective hedge relationships to be established. The effectiveness portion of hedge is recognised in OCI, while ineffective portion of hedge is recognised immediately in the Statement of Profit and Loss. The Company uses hypothetical derivative method to assess effectiveness. In effectiveness may arise on account of differences in critical terms and credit risk of the hedging instrument and the hedged item.

The amount of gain/ (loss) recognised in the Statement of Profit and Loss on account of hedge ineffectiveness for cash flow hedges for the period ended March 31, 2019 and March 31, 2018 is Rs (35.82) Crore and Rs (20.78) Crore, respectively which forms part of Gain/Loss on fair value of derivatives under note 35.

53. Additional Information

A. As per Section 135 of Companies Act 2015, a Corporate Social Responsibility Committee has been formed. As per the provisions of Companies Act 2013, amount not less than Rs 29.97 Crore (Year ended 31/03/2018 Rs 26.7 Crore) should have been incurred during the year under CSR. The Company has incurred expenses amounting to Rs 34.14 Crore (Year ended 31/03/2018 Rs 31.09 Crore), in line with the CSR policy which is in conformity with the activities specified in Schedule VII of the Companies Act 2013.

B. Details of loans given, investment made and guarantee given covered under section 186(4) of the Companies Act. 2013:

i. Details of investments made have been given as part of Note '5' Investments in Subsidiary, Note '6' Investments in Associates and Note 7A and 7B' Other Investments.

ii. Loans and Financial Guarantees given below:

Rs in Crore

Name of the Company

Relationship

Nature of Transaction

As at 31.03.2019

As at 31.03.2018

Details of Loans

Aditya Birla Science and Technology Company Private Limited

Associate

Loan

50.59

50.59

Suvas Holding Limited

Subsidiary

Loan

10.51

-

Details of Guarantee

Suvas Holdings Limited

Subsidiary

Financial Guarantee

-

12.62

Utkal Alumina International Limited

Subsidiary

Financial Guarantee

-

4,852.50

Dahej Harbour and Infrastructure Limited

Subsidiary

Performance Guarantee

4.50

4.50

iii. Disclosure relating to amount outstanding at year end and maximum outstanding during the year of loans and advances, in nature of loan, required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are given below:

Rs in Crore

Name of the Company

As at 31.03.2019

Maximum outstanding during 2018-19

As at 31.03.2018

Maximum outstanding during 2017-18

Associate:

Aditya Birla Science and Technology Company Private Limited

50.59

50.59

50.59

55.49

Suvas Holding Limited

10.51

10.51

-

-

C. Note on acquisition of Aleris Corporation (Aleris).

On 26th July, 2018, Novelis Inc.(Novelis), a wholly owned subsidiary of the Company, has signed a definitive agreement to acquire Aleris Corporation (Aleris), a global supplier of rolled aluminum products, for approximately US$ 2.58 billion including assumption of debt. As part of the acquisition, the Company, through its subsidiary Novelis, will acquire 13 manufacturing facilities of Aleris across North America, Asia and Europe. The acquisition is subject to customary closing conditions and regulatory approvals.

D. There was an incident in Red Mud (Bauxite Residue) storage area connected to the Alumina plant situated at Muri, Jharkhand, on April 9, 2019. The incident involved a spillage in the red mud cake storage area. The operations of the plant remain suspended following the incident. The unit is in the business of producing and supplying Aluminium Hydrate primarily to Aluminium smelters of the Company for captive consumption. The incident is not expected to have any material impact on the company's financial performance.

54. During the financial year ended March 31, 2019, the Company has reclassified/ regrouped certain comparatives in order to conform with current year's presentation. The following reclassification/ regrouping do not have material impact in the Financial Statements.

The key reclassification / regrouping included the following :

(i) Consumption of Furnanceoil amounting to Rs 29.18 Crore has been reclassified from Raw Material Consumption to Power and Fuel.

(ii) Certain gains / losses on account of foreign exchange fluctuations are reclassified from various heads to Other expense in Gain/(loss) on Exchange Fluctuation amounting to Rs 22.25 Crore.

As per our report annexed.

For Price Waterhouse & Co Chartered Accountants LLP For and on behalf of the Board of Hindalco Industries Limited

Firm Registration Number: 304026E/E-300009

Sumit Seth

Praveen Kumar Maheshwari

Satish Pai

Partner

Whole-time Director &

Managing Director

Membership Number: 105869

Chief Financial Officer

DIN-06646758

DIN-00174361

Anil Malik

M M Bhagat

Company Secretary

Director

DIN-00006245

Place : Mumbai

Dated : May 16, 2019