you are here:

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

Oct 14, 16:00
124.20 2.45 (2.01%)
Volume
AVERAGE VOLUME
5-Day
4,028,967
10-Day
4,196,192
30-Day
3,163,561
3,511,325
  • Prev. Close

    121.75

  • Open Price

    123.00

  • Bid Price (Qty.)

    124.20 (2621)

  • Offer Price (Qty.)

    124.50 (1740)

NSE Live

Oct 14, 15:59
124.20 2.45 (2.01%)
Volume
AVERAGE VOLUME
5-Day
40,775,965
10-Day
45,880,915
30-Day
42,143,693
60,211,742
  • Prev. Close

    121.75

  • Open Price

    123.00

  • Bid Price (Qty.)

    124.20 (7356)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Auditor's Report

Report on the Financial Statements We have audited the accompanying financial statements of Steel Authority of India (SAIL) Limited (the Company), which comprise the Balance Sheet as at March 31,2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, 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. Management''s Responsibility for the Financial Statements Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 (the Act). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditors'' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Basis for Qualified Opinion The Company has not provided for; a) entry tax amounting to Rs.81.64 crore (current year Rs. 17.62 crore) in the state of Uttar Pradesh, (refer note no.28.2(a)); b) entry tax of Rs.888.46 crore (current year Rs. 163.83 crore) in the state of Chhatisgarh and Rs. 170.32 crore (current year Rs.39.20 crore ) in the state of Odisha (refer note no. 28.2(b)); c) income tax demand of Rs.87.62 crore (refer note no. 28.2(c)); d) claims of Rs.217.40 crore ( current year Rs.88.80 crore) by DVC for supply of Power (refer note no. 28.2(d)); The impact of para (a) to (d) has resulted in overstatement of profit for the current year by Rs.397.07 crore, cumulative Profit by Rs.1445.44 crore and understatement of Liability by Rs.1445.44 crore. Qualified Opinion In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013; (b) in the case of the Statement of Profit & Loss, of the profit for the year ended on that date; and (c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date. Emphasis of Matter We draw attention to: i. Pending finalisation of fresh agreement with non-executives in respect of wage revision due from 1st January, 2012, we are unable to comment on the adequacy of provision of Rs.611.03 crore (including Rs.549.95 crore provided during the year) (refer note no.32.6); ii. In view of the assumptions provided by the Company relating to the salary escalation rates, we are unable to comment on the adequacy of provision for retirement employee benefits based on actuarial valuation as per Accounting Standard -15 : ''Employee Benefits'' issued by the Ministry of Corporate Affairs (refer note no. 33.1.2(f)); iii. Regarding treatment of mining as a separate segment, as per Accounting Standard-17 Segment Reporting, issued by the Ministry of Corporate Affairs (refer note no. 33.2 (iii) ); iv. Charging off consultancy fee in respect of deferred capital schemes, amounting to Rs.107.17 crore (refer note no. 30.4 (a) and non-capitalisation of assets valued at Rs.981.83 crore (refer note no. 30.4 (b)); v. Claims / demands against the Company Rs.85.34 crore where the Company has lost in the first or subsequent appeals and has made further appeals before higher courts / forums (refer note no.28.2 (f)); vi. Water Tax in the State of Odisha amount indeterminable. (refer note no.28.2 (e)); vii. Net realisable value (NRV) of assets retired from active use (refer note no.30.3 ); viii. Sales to Government agencies recognised on provisional contract prices (refer note no.32.1); ix. Change in basis of accounting of Mining Rights, resulting in higher profit of Rs.214.14 crore for the year (refer note no.32.8); x. Balance confirmation, reconciliation and consequential adjustments, if any (refer note no. 31.3); Our opinion is not qualified in respect of these matters. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor''s Report) Order, 2003 (the Order) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 2. As required by Section 227(3) of the Act, we report that: a. 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; b. in our opinion proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the Plants/ Units/ Branches /Other Offices not visited by us. The Branch Auditors'' reports have been forwarded to us and have been appropriately dealt with; c. the Balance Sheet, Statement of Profit & Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account and with the audited returns received from Plants/ Units/Branches/ Other Offices not visited by us; d. except for the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the Balance Sheet, Statement of Profit & Loss, and Cash Flow Statement comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956; e. on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956. 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. However, it is observed that certain land and buildings are in unauthorised occupation. 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, certain weaknesses in internal control system are observed in accounting transactions, interface of transactions amongst the sub systems and SAP-ERP. Further, no system audit is carried out for interface of the data from functional sub systems to SAP-ERP and other critical business processes, to establish checks to complete and proper recording of the transactions. 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 30l of the Companies Act, l956, 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 l956, and aggregating during the year to Rs.5,00,000 or more with 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. The Company has an internal audit system, which is generally commensurate with the size and nature of its business. However it needs improvement in scope and coverage. In view of implementation of SAP-ERP and other functional packages, it requires further strengthening. 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(l)(d) of the Companies Act l956, 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, Customs 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, 2013. c) According to the information and explanations given to us, there are disputed statutory dues, which have not been deposited as on 31st March, 2013, as given herein below: Statute Nature of Dues Amount Forum where disputes (Rs. crore) are pending Sales Tax Demand by Appellate 3.05 Supreme Court & VAT Authorities 158.47 High Courts 548.35 Sales tax tribunals 90.73 Sales tax departments 800.60 Central Excise Excise Duty 19.59 Supreme Court Act, 1944 185.13 High Courts 598.74 CESTAT 351.40 Department of Excise 1154.86 Income Tax Act, TDS on Perks 132.67 High Courts 1961 TDS Refund Claim 8.11 High Courts Income Tax Disputes 155.77 Department of Income Tax 194.52 ITAT 491.07 Other Statutes Other Statutory dues 960.78 Supreme Court (including Cess) 1930.86 High Courts 57.48 Lower Courts 302.16 Concerned department 3251.28 TOTAL 5697.81 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. For S.K. Mittal & Co. For O.P. Totla & Co. For B.N. Misra & Co. Chartered Accountants Chartered Accountants Chartered Accountants Firm Registration No. Firm Registration No. Firm Registration No. 00II35N 000734C 321095E Sd/- Sd/- Sd/- [S. K. Mittal] [S.R. Totla] [S.C. Dash] Partner Partner Partner (M. No. 8506) (M. No. 71774) (M. No. 050020) Place : New Delhi Date :30th May, 2013