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Steel Authority of India Ltd.

BSE: 500113 | NSE: SAIL |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE114A01011 | SECTOR: Steel - Large

BSE Live

Nov 29, 16:00
102.65 -1.00 (-0.96%)
Volume
AVERAGE VOLUME
5-Day
3,062,150
10-Day
2,780,954
30-Day
3,480,787
2,875,022
  • Prev. Close

    103.65

  • Open Price

    103.95

  • Bid Price (Qty.)

    102.50 (100)

  • Offer Price (Qty.)

    102.65 (5574)

NSE Live

Nov 29, 15:59
102.65 -1.00 (-0.96%)
Volume
AVERAGE VOLUME
5-Day
42,930,111
10-Day
33,031,653
30-Day
45,767,372
44,874,279
  • Prev. Close

    103.65

  • Open Price

    103.70

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    102.65 (1803)

Annual Report

For Year :
2021 2019 2018 2017 2016 2015 2014 2013 2012

Auditor's Report

We have audited the attached Balance Sheet of STEEL AUTHORITY OF INDIA LIMITED, as on 31st March 2012, the Statement of Profit & Loss Account and the Cash Flow Statement of the company for the year ended on that date annexed thereto, in which are incorporated the accounts of Plants, Units, Branches and other Offices audited by the Branch Auditors in accordance with the letter of appointment of Comptroller & Auditor General of India. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors' Report) Order, 2003 as amended by the Companies (Auditors' Report) (Amendment) Order, 2004 (hereinafter referred to as the Order) issued by the Government of India in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said Order.

4. Since the matter regarding provision of pension under superannuation benefits for non executives remains undecided and the amount also not ascertained, we are therefore unable to express our opinion on the same and the effect on the accounts, if any (Refer Note No.32.7).

5. Without qualifying our opinion, we draw attention to Note Numbers 32.1 & 32.11 of notes to financial statements.

6. Further to our comments in the Annexure referred to above, we report that:

i). We have obtained all the information and explanations, which to the best of our knowledge and belief, were necessary for the purpose of our audit.

ii). In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of the books, and proper returns adequate for the purpose of our audit have been received from the plants/ units/ branches/other units not visited by us. The branch auditors' reports have been forwarded to us and have been appropriately dealt with.

iii). The Balance Sheet, the Statement of Profit & Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account and with the audited returns from the branches.

iv). In our opinion, the Balance Sheet, the Statement of Profit & Loss Account and the Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

v). In terms of Government of India, Department of Company Affairs Notification No. GSR 829(E) dated 21st October, 2003, Government companies are exempt from the applicability of provisions of Section 274(1)(g) of the Companies Act, 1956.

In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to our observation given in point no.4 above and read with significant accounting policies and notes on accounts appearing in Note 28-41, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in case of Balance Sheet, of the state of affairs of the Company as on 31st March 2012;

ii) in case of Statement of Profit & Loss Account, of the Profit of the Company for the year ended on that date; and

iii) in case of the Cash Flow Statement, of the cash flows for the year ended on that date.

1. a) The Company has maintained proper records showing in most cases, full particulars including quantitative details and situation of its fixed assets.

b) The fixed assets of the Company have been physically verified by the management at reasonable intervals in a phased manner so as to generally cover all the assets once in three years. As informed to us, no material discrepancies have been noticed on such verification wherever reconciliation has been carried out.

c) In our opinion and according to the information and explanations given to us, there is no substantial disposal of fixed assets during the year.

2. a) The inventories have been physically verified by the management with reasonable frequency during the year. In certain cases, the stocks have been verified on the basis of visual survey/estimates.

b) In our opinion and according to the information and explanations given to us, the procedures for physical verification of inventories followed by the management are generally reasonable and adequate in relation to the size of the company and the nature of its business.

c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventory. The discrepancies between physical stocks and book records arising out of physical verification, which were not material, have been dealt with in the books of account.

3. According to information and explanations given to us, the Company has not granted or taken any secured or unsecured loans, to or from companies, firms, or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Consequently, clauses (iii) (a) to (iii)(g) of paragraph 4 are not applicable.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any major failures in the internal control system.

5. a) According to the information and explanations given to us, we are of the opinion that there are no contract or arrangement of the Company, referred to in section 301 of the Companies Act, 1956, which requires to be entered in the register required to be maintained under that section. b) According to the information and explanations given to us, there are no transactions of purchase of goods and materials and sale of goods, materials and services made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act 1956, exceeding the value of Rs.5,00,000 in respect of any party.

6. The Company has not accepted any public deposits during the year. In respect of public deposits accepted in earlier years, there are no unmatured outstanding deposits.

7. In our opinion, the Company's internal audit system is generally commensurate with the size and nature of its business.

8. We have broadly reviewed the records maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained in respect of the applicable products. We have not, however, made a detailed examination of the records with a view to determine whether these are accurate and complete.

9. According to the information and explanations given to us in respect of statutory and other dues:

a) The Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investors Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other statutory dues, with appropriate authorities.

b) According to the information and explanations given to us, there are no undisputed statutory dues outstanding for a period of more than six months from the date they became payable, as per books of accounts as at 31st March, 2012.

c) According to the information and explanations given to us, there are disputed statutory dues, which have not been deposited as on 31st March, 2012, as given herein below:

Statutes Nature of Dues Amount Forum where disputes are (Rs.in crore) pending.

Sales Tax Demand by Appellate 149.00 High Courts Authorities 509.40 Sales tax tribunals

138.64 Sales tax departments

797.04

Central Excise Excise duty 1055.09 Supreme Court Act, 1944 69.44 High Courts

607.52 CESTAT

224.00 Department of Excise

0.32 Settlement Commission

1956.37

Income Tax Act, TDS on perks Income 175.37 High Courts 1961 Tax 200.13 Department of Income Tax 375.50

Other Statutes Other statutory dues 646.63 Supreme Court (including cess) 464.24 High Courts

48.98 Lower Courts

177.59 Concerned Department

1337.44

TOTAL 4466.35

10. There are no accumulated losses of the company as at the end of the year. The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution or bank or bond holder.

12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a Nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4 (xiii) of the Order, are not applicable to the Company.

14. The Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order, are not applicable to the Company.

15. According to the information and explanations given to us, the terms and conditions of the guarantees given by the Company for loans taken by others from banks or financial institutions are not prima-facie prejudicial to the interest of the Company.

16. To the best of our knowledge and belief, and according to the information and explanations given to us, in our opinion, the term loans availed by the Company were, prima facie, applied by the Company during the year for the purpose for which the loans were obtained other than temporary deployment pending application.

17. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment of the company.

18. According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956.

19. According to the information and explanations given to us and records examined by us, charges have been created in respect of secured bonds issued.

20. The Company has not raised any money by public issue during the year.

21. To the best of our knowledge and belief and according to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year except for frauds on the Company for an amount of Rs.0.77 crore by employees of the Company, out of which Rs.0.52 crore have been recovered and for the balance amount of Rs.0.25 crore, as informed, necessary action has been taken for recovery.

For Tej Raj & Pal For S.K. Mittal & Co. For O.P. Totla & Co.

Chartered Accountants Chartered Accountants Chartered Accountants

Firm Registration Firm Registration Firm Registration

No.304124E No.001 135N No.000734C

Sd/- Sd/- Sd/-

[Dinakar Mohanty] [S. K. Mittal] [S.R. Totla]

Partner Partner Partner

(M. No. 059390) (M. No. 8506) (M. No. 071774)

Place : New Delhi

Dated : 29th May, 2012