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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

Oct 26, 12:53
117.00 1.45 (1.25%)
Volume
AVERAGE VOLUME
5-Day
3,592,906
10-Day
4,124,177
30-Day
3,649,745
2,273,432
  • Prev. Close

    115.55

  • Open Price

    116.55

  • Bid Price (Qty.)

    116.90 (3213)

  • Offer Price (Qty.)

    117.00 (3117)

NSE Live

Oct 26, 12:53
116.95 1.50 (1.30%)
Volume
AVERAGE VOLUME
5-Day
35,511,722
10-Day
47,421,181
30-Day
45,657,479
12,724,597
  • Prev. Close

    115.45

  • Open Price

    116.30

  • Bid Price (Qty.)

    116.90 (8634)

  • Offer Price (Qty.)

    117.00 (10464)

Annual Report

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

Auditor's Report

We have audited the accompanying standalone financial statements of STEEL AUTHORITY OF INDIA LIMITED (''the Company''), which comprise the Balance Sheet as at 31 March 2016, the Statement of Profit and Loss and the Cash Flow Statement and a summary of significant accounting policies and other explanatory information for the year then ended. Management''s Responsibility for the Standalone Financial Statements The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the Act) with respect to the preparation of these standalone 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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 standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. 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 the 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 financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, 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 qualified audit opinion on the standalone financial statements. Basis for Qualified Opinion The Company has not provided for: i. entry tax amounting to Rs.97.22 crore (current year Rs.2.33 crore and last year Rs. 3.34 crore) in the The mentioned cases are sub-judice and pending before the state of Uttar Pradesh, Rs.1091.02 crore (current year Rs. 6.70 crore and last year Rs. 13.04 crore) Hon''ble Supreme Court and other courts for a long time. The in the state of Chhattisgarh and Rs.341.15 crore (current year Rs. 7.20 crore and last year Rs.119.14 disputed demands, contested on valid and bonafide grounds, have crore) in the state of Odisha (refer note no. 29.l(i)(g); been disclosed as contingent liabilities as it is not probable that ii. amount paid to DVC against bills raised for supply of power and retained as advance by Bokaro present obligations exist on the Balance Sheet date. Therefore, Steel Plant amounting to Rs.491.27 crore (current year- Rs. 97.68 crore and last year- Rs.101.83 there is no adverse impact on loss. There is no change in the crore) (refer note no. 29.l(i)(f)); status of these cases till date. The total impact of above para (i) and (ii) has resulted in understatement of Loss after Tax for the year by Rs. 1,321.35 crore (Over statement of profit of Previous Year ended 31 st March, 2015 by Rs. 1906.75 crore), overstatement of Reserves & Surplus by Rs. 1321.35 crore (As at 31 st March, 2015 Rs. 1906.75 crore), understatement of Current Liabilities by Rs. 2020.66 crore (As at 31st March, 2015- Rs. 1906.75 crore) and understatement of Total Assets by Rs. 699.31 crore (Previous Year ended 31st March, 2015 Rs. Nil). 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 above, the aforesaid standalone 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, of the state of affairs of the Company as at 31st March 2016 and its loss and its cash flows for the year ended on that date. Emphasis of Matter We draw attention to the net sales include sales to Government agencies which are recognised on provisional contract prices (refer note no. 32.1); Our opinion is not qualified in respect of this matter. Other Matter We did not audit the financial statements/ information of 8 branches included in the standalone financial statements of the Company whose financial statements/financial information reflect total assets of Rs. 44971.85 crore as at 31st March, 2016 and total revenues of Rs. 15,849.68 crore for the year ended on that date, as considered in the standalone financial statements. The financial statements/ information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors. Our opinion is not qualified in respect of this matter. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor''s Report) Order, 2016 (the Order) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure ''A'' a statement on the matters specified in the paragraph 3 and 4 of the Order. 2. As required by Section 143 (3) of the Act, we report that: a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. b. Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above,in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; c. The reports on the accounts of the branch offices of the Company audited under Section l43 (8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report d. The balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account; e. Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above,in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section l33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014; f. The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, may not have an adverse effect on the functioning of the Company. g. As per notification No. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 164(2) of the Companies Act, 2013 is not applicable to the Company; h. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure ''B'', and i. with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer note Note No. 29.1 to 29.4 to the financial statements; ii. The company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses; and iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund. 3. As required by section 143(5) of the Act, we give in Annexure ''C'', a statement on the matters specified by the Comptroller and Auditor General of India for the Company. Annexure ''A'' referred to in paragraph 1 under the heading Report on other legal and regulatory requirements of our report of even date Re: Steel Authority of India Limited (''the Company'') i. In respect of its fixed assets: a. The Company has maintained proper records showing in most cases, full particulars including quantitative details and Necessary action is being taken to situation of its fixed assets. However, the location and the extent of area in few in respect of land needs to be updated update the location and extent of area in the fixed assets registers and have to be reconciled with the revenue records as to the extent of holding and location in respective plants in the fixed assets of land. The delay is attributable to procedural matters involved in ascertaining and reconciling with revenue records registers.This is a continuous process. maintained by the revenue departments of state governments involved. b. The fixed assets of the Company have been physically verified by the management at reasonable intervals in a phased Necessary action is being taken to manner so as to generally cover all the assets once in three years. However, it is observed that certain land and evict the occupants from land and buildings are under encroachment/ unauthorised occupation. As informed to us, no material discrepancies have been buildings under encroachment/ noticed on such verification. unauthorised occupation. c. According to the information and explanations given to us and on basis of our examination of records of the Company, the title deed of immovable property are held in name of company except in following instances: Particulars Freehold Land Leasehold Land Building Not in name of company 40565.76 acres 17297.73 acres 1312 sq. Mtr and l case Gross block of land not 120.52 146.62 0.69 in name of Company (Rs. in Crore) Net block of land not in 120.52 126.25 0.44 name of Company (Rs. in Crore) ii. In respect of physical verification of Inventory: 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, discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of account. iii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the Register maintained under Section l89 of the Companies Act, 2013. Therefore, clauses (iii) (a) and (iii) (b) of Paragraph 3 of the Order are not applicable to the Company iv. The Company has not granted any loans or made any investments or given any guarantee and security covered under Sections l85 and l86 of the Companies Act, 20l3. v. According to the information and explanations given to us, the Company has not accepted any deposits from public during the year. Accordingly, paragraph 3(v) of the Order is not applicable to the Company. vi. The Company has made and maintained cost records pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148(1) of the Companies Act, 2013. vii. According to the information and explanations given to us in respect of statutory dues: a. The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees'' State Insurance, Income-tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Taxes, Cess and other Statutory Dues to the appropriate authorities. 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, 2016. b. According to the information and explanations given to us, there are disputed statutory dues, which have not been deposited as on 31st March, 2016 as given herein below: Statute Nature of Dues Amount Forum where disputes (Rs. crore) are pending Sales Tax Sales tax and VAT 6.51 Supreme Court & VAT Demands 604.06 High Courts 624.35 Sales Tax Tribunals 121.01 Sales Tax Departments Entry Tax Entry tax 1091.02 Supreme Court 666.29 High Courts 12.14 Tribunal 20.44 Department Central Excise Excise Duty 152.02 Supreme Court Act, 1944 140.14 High Courts 990.00 CESTAT 751.55 Department Service Tax Service Tax 137.96 CESTAT 82.29 Department Customs Duty Customs Duty 5.09 CESTAT Income Tax TDS on Perks 46.74 Supreme Court Act, 1961 105.94 High Courts Other TDS matters 105.79 High Courts 1.67 ITAT 0.89 Department of Income Tax Income Tax Disputes 194.52 High Courts 522.33 ITAT 350.85 Department of Income Tax TOTAL 6733.60 viii. The Company has not defaulted in repayment of loans or borrowings to a financial institutions, banks, government or dues to debenture holders during the year. Accordingly, paragraph 3(viii) of the Order is not applicable to the Company. ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). Term loans from banks and financial institutions have been applied for the purpose for which they were obtained. x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit. xi. As per notification No. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, Government of India, Section 197 of the Companies Act, 2013 is not applicable to the Company. Accordingly, paragraph 3(xi) of the Order is not applicable. xii. According to the information and explanations given to us, the company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable. xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections l77 and l88 of the Companies Act, 2013 where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards. xiv. According to the information and explanations give to us and based on our examination of the records, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable. xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. For B.N. Misra & Co For Sharma Goel & Co., LLP For and on behalf of Board of Directors Chartered Accountants Chartered Accountants Firm Registration no.32l095E Firm Registration no.000643N Sd/- Sd/- [ B.N.Misra ] [ Amar Mittal ] Partner Partner (M. No. 083927) (M. No. 017755 ) Sd/- For Singhi & Co. For Chatterjee & Co. (P.K. Singh) Chartered Accountants Chartered Accountants Chairman Firm Registration no.302049E Firm Registration no.0302114E Sd/- Sd/- [ Shrenik Mehta ] [ S.K Chatterjee] Partner Partner (M. No. 063769) (M. No. 003124) Place : New Delhi Place : New Delhi Dated : 30th May, 2016 Date : 11th August, 2016